Tim Pallas used travel junket to explore ways to drive down Victoria’s record debt

Tim Pallas has used a 15-day travel junket to explore new strategies and potential investors to tackle Victoria’s record debt, slugging taxpayers $66,000 for the tour of the US and Canada.

Treasurer Tim Pallas has used a 15-day travel junket to explore new strategies and potential investors to tackle Victoria’s record debt.

Mr Pallas slugged taxpayers $66,000 for the tour of the US and Canada - his 12th since becoming treasurer in 2014 - including $41,146 in flights for himself and his deputy chief of staff.

Another $13,800 was spent on accommodation and $11,182 on other expenses.

In a trip report made public this week, Mr Pallas said he met with various prospective investors in bonds issued by the Treasury Corporation of Victoria.

With government forecasts warning Victoria’s will hit $188bn by 2027-28, Mr Pallas also used the trip to discuss debt issuance strategies.

He met with firms including Brookfield Asset Management, Canadian Pension Plan Investment Board (CPPIB), Healthcare of Ontario Pension Plan (HOCPP), Ontario Municipal Employees Retirement System (OMERS), Ontario Teachers Pension Plan (OTPP) and Royal Bank of Canada (RBC) “to understand developing trends in asset management and debt capital markets, and to hear of Canadian pension funds’ ongoing interest in investing in Victorian infrastructure and bonds issued by TCV.”

Mr Pallas charged taxpayers $66,000 for his latest trip. Picture: Asanka Ratnayake

Mr Pallas also met with ratings agencies Moody’s, Standard and Poor’s and Fitch Ratings to “reinforce Victoria’s progress against its fiscal strategy, in support of current credit ratings.”

Victoria has had firm warnings from both Moody’s and Standard and Poor’s that it is facing potential damaging credit downgrades if it can’t reverse the state’s current debt trajectory or if it proceeds with its controversial Suburban Rail Loop project without further federal government funding.

Government sources said Mr Pallas had been in recent weeks reiterating to colleagues the importance of curbing current spending after efforts to introduce more than $1bn in health cuts were defeated in the face of an angry public backlash.

“My 15-day travel program provided the opportunity to promote Victoria’s economic credentials, strengthen trade and investment relationships, and engage with government counterparts to advance Victoria’s international engagement priorities,” Mr Pallas said in a letter to Jacinta Allan which accompanied the report.

Mr Pallas used the trip to explore new ways to drive down Victoria’s record debt. Picture: Nadir Kinani

“I’m pleased to inform you that the trip, as detailed in the report, was highly successful and has resulted in significant opportunities which are beneficial for my portfolio areas of

responsibility.”

But opposition finance spokeswoman, Jess Wilson, said the trip smacked of desperation.

“This trip wasn’t about growing Victoria’s economy but a desperate effort to find new buyers for Labor’s record debt,” she said.

“Taxpayers will now be footing a $66,000 bill so Labor can rattle the tin for their $187.8 billion debt and million dollar an hour interest repayments to overseas investors.

“The Allan Labor government must explain why it is actively seeking new financial debt markets, and how much more debt and interest will grow due to their own mismanagement. “

Originally published as Tim Pallas used travel junket to explore ways to drive down Victoria’s record debt