Media Release

Wednesday 25 March 2009

NSW’s chief business group, NSW Business Chamber today warned of the risks the NSW Government would face if the state lost its AAA credit rating.

“NSW Business Chamber backs keeping our AAA credit rating one hundred per cent,” said Kevin MacDonald, CEO of NSW Business Chamber.

“A credit downgrade would not only increase the State’s cost of borrowing, it would send a signal to investors that the NSW Government is not managing its recurrent expenditure or running a sustainable infrastructure program.

“Now is not the time to look for excuses to avoid tough reforms.

 “Premier Rees handed down a painful mini-budget in November that slugged business and residents with more taxes to hold on to our AAA credit rating, it would be a blow to the Government’s credibility and taxpayers to now lose it.

“Retaining our AAA credit rating is key to boosting business confidence in NSW. 

 “Greater transparency and accountability are essential to reigning in government spending and ensuring that infrastructure projects are delivered on time and within budget.  This is what a AAA rating indicates.”

 Mr MacDonald said that business confidence in NSW was low well before the global economic crisis.  The NSW Government’s failure over the last 10 years to align expenditure growth with revenue growth has led to significant overspending and constrained the State’s ability to invest in essential infrastructure.

 NSW Business Chamber calls on the Treasurer to ease business concerns and promote investment in NSW by detailing the specific projects to be funded under the Government’s ‘$56 billion over four years’ infrastructure plan.

 The quarterly publication of spending by each agency is essential to enforcing a culture of accountability and delivering maximum value to NSW taxpayers.