Tuesday, 19 November 2013
labor's unfunded $17 billion promise will jeopardise Victoria's finances
Treasurer Michael O’Brien today slammed Labor’s unfunded transport promises aying it would put Victoria’s budget and AAA stable credit rating at risk.
“Labor has promised an unfunded transport wishlist that would cost Victorian taxpayers far in excess of the claimed $17 billion,” Mr O’Brien said.
“Labor’s costings are so wrong they are an embarrassment. They show, yet again, that Labor cannot manage money.
“Labor has not provided one single dollar of secure funding commitments to pay for any of its promises and has refused to nominate any dollar figure to be obtained by leasing the Port of Melbourne.
“Labor claims they cannot disclose the amount they expect to receive from selling the Port of Melbourne as it would be considered irresponsible.
“How can the Victorian people trust Labor to deliver on its promises when it cannot tell anyone how those promises will be paid for?
“What is clear is that Labor’s rubbery figures ignore the $814 million in liabilities carried by the Port of Melbourne. Labor wants to spend the sale proceeds without repaying the debt. It is the equivalent of trying to
sell your house without repaying your mortgage.
“It’s a funny money scheme. Daniel Andrews and Tim Pallas are the Cain and Kirner of today’s Labor Party,” Mr O’Brien said.
Just this month, rating agency Standard and Poor’s warned that, while the Coalition Government’s fiscal discipline had preserved Victoria’s AAA stable rating:
“Downward pressure on the rating would occur if…debt levels increased significantly due to a new and large capital program.” (Standard and Poor’s research update, 7 November 2013, p4).
“Labor’s unfunded promises would trash Victoria’s finances and threaten our economic future,” Mr O’Brien said.
“Today’s promises show that the architects of the desal plant and myki have learned nothing from their costly errors.”