PM Transcripts

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JOINT STATEMENT BY THE PRIME MINISrERs THE IION P J KEATING MP
AND THE PREMIER OF VICTORIA, THE HON J G KENNETT MLA
The Prime Minter and the Treasurer met tonight with the Premier and thc Treasurer of'
Victoria to discusg Victoria's budgetary and debt position.
Following a constructive discussion, both Governments agreed upon the need to satisfy
the Loan Council that a sustainable long-term strategy is in place to address Victoria's
budgetary and debt difficulties. With that in mind, the Commonwealth Government is
willing to support, in principle, a Victorian approach to Loan Council seeking $ 1.6 billion
of special addition to this year's Global Limit in order to finance the 1992-93 budget.
Victoria prescntod a medium term financial strategy to the mecting. The Commonwealth
and Victorian Governments will work together to further refine that strategy prior to a
special Loan Council mceting in December.
it is expected that this examination will be succssfully concluded during the course of the
next four weeks. The consultations to date provide cause for confidence that Victoria's
problems can bc satisfactorily rcsolved.
Arising from thc meeting's discussion of the steps already taken and those in prospect, the
Conmmoniwealth Government has agrecd to recommend to Loan Council a special addition
to Victoria's Global Limits of $ 1,267 million to regularise Victoria's relationship with
Loan Council. That special addition would be in respect of the borrowings. undertaken in
May or this year to refinance previous short-term borrowingq used to finance budget
deficits in that year and in the preceding two years. Victoria accepts that these borrowings
undertaken by the previous Victorian Government require Loan Council approval.
Both Governments were of the view that it was important that stability be restored to
financial markets by focussing on the task of restoring Victoria's budgetary position and
avoiding a continuation of the potentially damaging public debate of recent days.
2 November 1992 L L. k_ 1 L j L