Victorian Treasurer Jaclyn Symes spent $70,000 on New York trip to meet with credit ratings agencies
Victorian Treasurer Jaclyn Symes spent more than $70,000 on her first trip overseas — a post-budget dash to New York to convince ratings agencies not to impose a damaging credit downgrade on the state.
Taxpayers have been billed more than $70,000 for Victorian Treasurer Jaclyn Symes’ first overseas trip — a rescue mission to convince ratings agencies not to impose a damaging credit downgrade.
Global ratings agencies have for more than a year been warning Victoria was facing a historic downgrade which would increase borrowing costs at a time when the state’s debt is ballooning.
In June Ms Symes flew to New York to meet with agencies Moody’s, Fitch Ratings and Standard and Poor’s to talk up her first budget and stave off growing concerns about the economy.
A diary of the visit, published on Friday, showed taxpayers were billed $70,124 including $41,410 for airfares and $25,410 for accommodation during the 10-day visit.
It also showed a further $3,304 in additional expenses for Ms Symes, her chief of staff Ken Macpherson and the Premier’s chief of staff Damian Karmelich.
The inclusion of Mr Karmelich as part of the travelling party has sparked concern inside government about the threat level that Victoria could be hit with a damaging downgrade.
An analysis of the extensive travel diaries of former Treasurer Tim Pallas shows he was never accompanied by a staffer from the Premier’s office.
The diary also revealed Ms Symes met with the agencies again in June, shortly after landing back in Melbourne, sparkling further concern about how closely Victoria is being watched.
In her first budget, handed down in May, Ms Symes unveiled projections that net debt would balloon to an estimated $194bn by 2028-29 — or $71,000 per Victorian household.
It will carry an attached interest bill of $10.6bn — or $28.9m dollars a day.
She also spruiked a return to an operating surplus of $600m despite that figure being down $1bn on earlier forecasts, and said Victoria was on track to begin reducing debt.
Ratings agencies demanded evidence of fiscal discipline in the budget, which was handed down just two weeks before Ms Symes flew to New York.
Ms Symes said meeting with agencies “provided an opportunity to affirm Victoria’s progress against its fiscal strategy.”
“The meetings also provided insights into Moody’s and Standard and Poor’s US inflation expectations, corporate balance sheets of US companies, and how US financial regulation may impact systemic financial risk. Moody’s and Standard and Poor’s also shared their perspectives on the global macroeconomic outlook and trends.”
She said the US visit focused on strengthening engagement with major credit rating agencies and key global financial investors and stakeholders as well as reinforcing investor confidence.
She also met with the United Nations to discuss opportunities to sell off Treasury Corporation of Victoria bonds.
Ms Symes said she would continue to engage with the credit ratings agencies to reinforce Victoria’s progress towards its fiscal strategy she said would include future Commonwealth funding contributions and savings from the thousands of expected job cuts inside the Victorian Public Service.
Shadow treasurer, James Newbury, questioned the expense of the trip.
“Instead of reigning in spending, the Treasurer has spent $7,000 a day of your money on travelling to New York to meet with companies, she later met in the same month in Melbourne,” he said.
“She could have saved us all the $70,000 and simply met them in Melbourne for the cost of a cup of coffee.
“What’s also staggering is that the Premier sent her senior minder to babysit the Treasurer.
“Tim Pallas never had the Premier’s babysitter travel with him. It goes to show how little standing the Treasurer has in the Labor government.”
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