Page 1446 - Week 05 - Wednesday, 10 May 2006
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
Mr Stanhope: We had an understanding with you. If you’re going to welsh on that, we will close the debate.
Opposition members interjecting—
Mr Stanhope: Well, we will close it after you speak, so you are closing anyway, Richard.
MR MULCAHY: It is a reflection of the extraordinary sensitivity of this Chief Minister to criticism. It is a characteristic that he does not—
Mr Stanhope: No, it’s not. We did a deal with you and you welched on it.
MR MULCAHY: He talks of some deal being made. I do not know of any deal being made. I have zoomed in on one particular aspect of this amendment, and particularly the line “the continued confidence shown in the ACT’s balance sheet by ratings agencies”. Boy, was that music to my ears when he read that, because, despite the fact that you think things can go down phone lines, I have got a fascinating report, which I have been trying to get hold of for some time, from Standard and Poor’s, and let me tell you what they say.
Mr Stanhope: Did you get that in New York?
MR MULCAHY: Yes, that is it—very worth while too. This is their report on the government of the Australian Capital Territory:
A key weakness, however, is that much of the projected deterioration in finances is not due to one-off capital spending. Rather, it is due to a weakening operating position, to the extent that the territory is expected to record an operating deficit under its preferred measure in fiscal 2006 and significant operating deficits under the measure ...
It goes on to say to say:
The biggest risk to the ACT’s rating relates to the unsustainability of operating deficits ...
Dr Foskey has gone, but she wanted to talk about sustainability. The report compares us to the other states in Australia. The Chief Minister loves to say that all of the states have got these issues and problems, but it says here, comparing the ACT with what they call the peer group, which is the other states:
The important distinguishing factor for the ACT, however, is that it is the only member of the group forecasting significant operating deficits rather than a deterioration due only to increased capital spending.
The Chief Minister wanted to rely on this document to say what great confidence Standard and Poor’s have in the way he runs things. But they go on to say this about management capacity and institutional legitimacy:
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .