Miles plays down credit rating fears amid election borrowing spree

Premier Steven Miles has sought to allay fears that his election commitments will jeopardise Queensland’s credit rating, saying his pledges were “within range” to keep the rating stable.

Speaking in Rockhampton on Tuesday, Miles rejected the suggestion that Labor had given up on debt control, after warnings from credit agency S&P that Queensland’s AA+ rating would be at risk if commitments were funded through borrowing.

The premier’s signature $1.4 billion commitment to give state primary school students free lunches, for example, would be funded through borrowing. All up, Labor has made $8.9 billion in election commitments, but it claims the LNP’s come in at $17 billion.

Premier Steven Miles campaigns in Rockhampton on Tuesday.Credit: Cameron Atfield

The LNP has disputed that figure but has not provided an estimate of its own.

“We have a clear plan to return to surplus, but what we know is that Queenslanders’ priority right now is their cost of living,” Miles said.

“So at this exact point in time, what Queenslanders want to see is us support them with their cost of living – that’s why we’ve gone into deficit over these two years.

“But we know we’re turning a corner. We know our measures have driven down inflation. We know that gives room for the RBA to move on interest rates, and we know, therefore, that we can return to surplus in that third and fourth year.”

Miles said his government engaged closely with credit rating agencies “because their opinion on our budget position and our economy is important”, but he anticipated Labor’s budget measures were “within the range” to keep Queensland’s rating stable.

“You have to remember that, compared to other comparable states like New South Wales and Victoria, we are in a much, much better position,” he said.

“On general government debt, for example, Queensland is currently at $27.4 billion. That’s compared to Victoria on $156 billion, and New South Wales on $103 billion.

“Now, the New South Wales economy is nowhere near four times bigger than Queensland’s, and that means our level of debt is much more manageable than those other states – and that’s what the ratings agencies will take into account.”

Opposition Leader David Crisafulli, meanwhile, would not promise a return to a AAA rating in his first term as premier, should he be successful on October 26.

“What could happen is another downgrade if this government was re-elected,” he said.

Campaigning in Ipswich, Crisafulli said the extent of LNP borrowing would be made public once the party’s election commitments had all been announced.

“Households are willing to borrow for capital, but they have to meet those expenses as part of their operating,” he said.

“They don’t then go and borrow to make those repayments. That’s what’s happening in Queensland.”

Queensland LNP leader David Crisafulli (centre) was keen to campaign on law and order in Ipswich.Credit: Catherine Strohfeldt

Crisafulli said the LNP would pay for its election commitments by changing the way government worked.

“By ending the reliance on consultants, by stopping the massive blowouts, by re-establishing a productivity commission to make sure that government works the way it should, by having cabinet subcommittees that hold people accountable, and ending the days of waste,” he said.

Miles said Crisafulli would not be able to pay for his commitments without making significant cuts.

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