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Roozendaal should take his new minder to Melbourne

Wednesday 24 September 2008

NSW Premier Nathan Rees and his Treasurer should not meet with the credit ratings agency Standard and Poors tomorrow without their new 'capital market expert adviser' Ian Macfarlane, according to Greens NSW MP John Kaye.

Dr Kaye said: "Unlike his new bosses, the former Reserve Bank Governor at least understands the importance of maintaining investment in infrastructure.
 
"Without an independent voice, Friday's meeting will inevitably talk up the state's cash crisis and box NSW into a slash-and-burn mini-budget in November.
 
"Mr Macfarlane's public statements over the past four years show that he appreciates the economic consequences of underspending on public transport and workforce skills which will be prime targets for budget cuts.
 
"The Rees government is obsessed with its credit ratings, regardless of the long term economic and social costs of failing to upgrade infrastructure and maintain quality public services.
 
"They cannot see beyond the AAA to understand that they risk crippling the economy in five years time.
 
"In February 2005 Mr Macfarlane told the House of Representatives Standing Committee on Economics, Finance and Public Administration that capacity constraints would lead to higher interest rates and lower growth. He was right.
 
"In February and August 2006 he repeated that warning, pointing to the damage that the skills shortage was wreaking on production, and calling for the problem to be addressed without delay.
 
"Ian Macfarlane's commitment to investing in infrastructure is this state's best hope of avoiding a repeat of past mistakes.
 
"Premier Rees and Treasurer Roozendaal are inexperienced and will be at the mercy of senior Treasury bureaucrats and Standard and Poors.
 
"If Mr Macfarlane remains true to form, he would be a voice for investing in the future of the state during the current economic downturn," Dr Kaye said.
 
For more information: John Kaye 0407 195 455

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