Questions without notice and ministers statements
Economic policy
Bev McARTHUR (Western Victoria) (12:05): My question is to the Treasurer. Treasurer, your government has spent $81 million on consultants to help repackage and sell your debt to overseas investors. How much more will you need to spend on consultants and spin before the Labor government debt comes down?
Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:05): I thank Mrs McArthur for her question. Unfortunately, there is no basis for the claim that she has made, so I do not accept the premise of her question. But when we do talk about consultants and professional services, you know that I am on the record constantly as saying that these should be limited to supplementary advice, specialist skills and the like, and we have been tracking down in many areas in relation to that. But you have talked about debt and you have talked about the state’s finances, and that is why we are a government that have a plan, and we have been sticking to that plan. Our fiscal strategy is working. We are delivering the services and infrastructure that Victorians rely on whilst ensuring that our debt as a share of the state’s economy is shrinking.
I have an opportunity, Mrs McArthur, to take you again through that fiscal strategy. Step 1, creating jobs – this is coming out of the pandemic, and we achieved that. Step 2, returning to an operating cash surplus – we are on track to deliver the third one in a row. We are achieving step 3 this year of returning to a surplus. We will be the only state on the eastern seaboard with a surplus, and that includes the Commonwealth government. We remain on track to meet steps 4 and 5, which are net debt as a share of the economy stabilising and falling in the years after. These results show that we are getting on with the job of growing the economy and delivering on our fiscal strategy.
Instead of those that continually talk down the state of Victoria, we will continue to support businesses. It is why we have the strongest business growth in all of the states. It is why people want to employ people in this state. It is why people want to set up businesses in this state. There is always more to do, Mrs McArthur. That is why there are five steps, and we are on track to deliver that.
Bev McARTHUR (Western Victoria) (12:07): Treasurer, you could not answer the question. You are still spending $81 million, and what we need to know is how much more you are going to spend, because the debt is growing, so the consultant expenditure is obviously growing. But do you plan to return to New York to find new buyers for the Labor government debt to avoid another credit rating downgrade?
Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:08): Mrs McArthur, for I think every Treasurer that has preceded me, speaking to credit agencies annually is part of the job. I was in New York in June this year, and I expect I will probably return next year, but those conversations and the result of those conversations are evident in what the credit rating agencies have had to say. In their September statement, they reaffirmed Victoria’s credit rating. Moody’s noted:
[QUOTE AWAITING VERIFICATION]
… the state’s clear and demonstrated commitment to fiscal consolidation and prudent financial management in recent years, as well as the resilience of its large, diverse and wealthy economy, underpins the state’s capacity to service its debt.
These are not my words, Mrs McArthur. You asked about the credit rating, so I thought you would be quite interested in what they have got to say. S&P’s response to the budget that I delivered:
We view Victoria’s commitment to controlling operating costs, delivering promised savings, and slowing growth in debt as important for maintaining …
our credit rating.