00:00Tasmania's debt crisis has deepened.
00:05The state's credit rating downgraded by ratings agency Moody's from AA2 to AA3.
00:11It is driven by a sharp rise in the state's debt burden and growing interest costs,
00:18which in our view will be challenging to contain.
00:22Credit ratings aren't the only factor in determining interest rates,
00:26but it sends a signal to lenders that Tasmania is a riskier borrower,
00:30now with the worst rating of any state.
00:33The decision by Moody's to put us onto AA3 is not a welcome decision,
00:41but an understandable decision.
00:43Treasurer Eric Abett says he's not alarmed. Others are.
00:47It's embarrassing, you could say.
00:50It's a vote of no confidence in the government's financial management.
00:54The huge debt that the Liberals have racked up will now cost more.
00:57Interest rates will be higher on that debt.
01:00More and more is being put aside to pay off the credit card.
01:03This year the budget allocated $350 million.
01:07In 2029 it soars past $700 million.
01:11The Liberals need to get on with the job of fixing the budget
01:14and start that by dropping the stadium.
01:16The Treasurer said next May's budget will include corrective action
01:19to get the finances back in line, including ramping up his efficiency
01:23and productivity units and right-sizing the public service.
01:28Thus far he's resisting too much tax talk.
01:32Increasing taxation doesn't increase the pie.
01:36What it does tend to do is to stifle the economy,
01:39but as I have been known to say from time to time, never say never.
01:43The other major agency, S&P, is expected to announce its decision in coming weeks.
01:50The Treasurer said that the
01:52The Treasurer said that the
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