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Ratings cut another blow for Tasmania

International ratings agency Moody’s has down rated Tasmania’s AA1 economic rating from stable to negative.

In 2012 Moody’s cut our rating from AAA to Aa1 and has now sent a signal to the markets that the quality of Tasmania’s credit is deteriorating.

The report noted:

“The negative outlook reflects an ongoing deterioration in Tasmania's financial performance, including persistent deficits, which are expected to continue widening as expenditures outpace revenues in the context of weaker economic conditions in the state.”

This is an indictment on the economic management of the state by Lara Giddings and Labor and puts the lie to Ms Giddings claim that the state has turned an economic corner.

It is confirmation that under Labor the state is headed in the wrong direction and that the budget deficit must be reined in.

The state cannot afford Labor’s reckless spending any longer.

Since the election commenced Labor has not made one offset to pay for its promises which will only deepen the deficit.

In contrast the Liberal Party has accounted for nearly $500 million in savings to pay for our election commitments.

It is a stark contrast and demonstrates which party has the better economic management plan.

If an election were to be held tomorrow the Budget would be better off by around $110 million under the Liberals.