[Greens-Media] Slash and burn credit rating agencies’ flaws exposed

[John Kaye]

Slash and burn credit rating agencies’ flaws exposed
 
Media release: 13 November 2008
 
Greens NSW MP John Kaye has welcomed moves by the Federal government to
regulate the credit ratings agencies behind NSW Treasurer Eric
Roozendaal's slash and burn mini-budget.
 
Dr Kaye said: "Treasurer Eric Roozendaal is captive to these
discredited and unaccountable agencies.
 
"The state's AAA credit rating has been in the hands of an
uncompetitive duopoly that got it wrong on collateralised debt
obligations, electricity privatisation and the need for a slash and burn
mini-budget.
 
"Kevin Rudd's Treasury is quite rightly questioning the quality and
integrity of the credit rating agencies' processes.
 
"The last thing the households of NSW need is their future being held
to ransom by corporations that have lost their credibility.
 
"The agencies are obviously on a good wicket. By charging a fee for
service and keeping NSW on a negative outlook they can call the shots on
a weak state treasurer.
 
"Treasurer Roozendaal's economic strategy has been humiliated. The
Federal government is not only cracking down on the dodgy credit ratings
agencies, but they are also taking their solution to the G20.
 
"Treasurer Roozendaal should abandon the discredited credit ratings
agencies and seize the opportunity for the NSW economy to make the
transformation to a high-employment, low-carbon future," Dr Kaye said.
 
For more information: John Kaye 0407 195 455