Footnotes

Chapter 1 - Introduction

[1]        Treasurer's Press Release, 25 March 2009.

[2]        Explanatory Memorandum, p 6.

[3]        Treasurer Press Release, 25 March 2009.

[4]        Reserve Bank of Australia, Statement on Monetary Policy, May 2009, p 46.

Chapter 2 - A Brief History and Implicit Guarantees

[1]        This paragraph is based on Select Committee on State Government Financial Management, Report, pp 38-42.

[2]        Mr Derek Bazen, Analyst, State Finances Unit, Department of the Treasury, cited in Select Committee on State Government Financial Management, Report, p 43.

[3]        This account draws on CB Schedvin, Australia and the Great Depression, 1970; F Cain, Jack Lang and the Great Depression, 2005; and R Gilbert, The Australian Loan Council, 1973.

[4]        Ratings agencies generally do not allow subordinate governments or companies a credit rating above that of the sovereign, so a downgrading of the national government will likely raise costs for all Australian borrowers.

[5]        Mr Peter Jolly, Proof Committee Hansard, 10 June 2009, p 9.

[6]        Ms Sue Vroombout, Proof Committee Hansard, 10 June 2009, p 2.

[7]        Mr Peter Jolly, Proof Committee Hansard, 10 June 2009, p 9.

Chapter 3 - Key Issues and Recommendation

[1]        For example, in Australia, under the Financial Claims Scheme total deposit balances up to $1 million per customer held in eligible authorised deposit-taking institutions are automatically guaranteed by the Australian Government without charge. For customers with total deposit balances over $1 million, the bank can access a government guarantee through the Australian Government Guarantee Scheme for Large Deposits and Wholesale Funding by applying to the Reserve Bank of Australia; RBA, Financial Stability Review, March 2009, p 43.

[2]        Infrastructure Partnership Australia, Submission 1, p 1.

[3]        Ms Sue Vroombout, Treasury, Proof Committee Hansard, 10 June 2009, p 2.

[4]        Dr Bruce Flegg, then Queensland shadow treasurer, cited in Select Committee on State Government Financial Management, Report, p 36.

[5]        Australian Industry Group, cited in Select Committee on State Government Financial Management, Report, p 37.

[6]        D Crowe, 'Swan throws debt lifeline to the states', Australian Financial Review, 26 March 2009, p 1.

[7]        Ms Sue Vroombout, Proof Committee Hansard, 10 June 2009, p 3.

[8]        Ms Sue Vroombout, Proof Committee Hansard, 10 June 2009, p 5.

[9]        Mr Peter Jolly, Proof Committee Hansard, 10 June 2009, p 3.

[10]      Ms Vroombout, Treasury, Proof Committee Hansard, 10 June 2009, p 3.

[11]      Treasurer Press Release, 25 March 2009.

[12]      Ms Marisa Purvis-Smith, Department of the Treasury, Proof Committee Hansard, 10 June 2009, p 4.

[13]      Ms Sue Vroombout, Proof Committee Hansard, 10 June 2009, p 5.

[14]      Treasurer Press Release 25 March 2009.

[15]      Ms Sue Vroombout, Proof Committee Hansard, 10 June 2009, p 2.

[16]      Reserve Bank of Australia, Statement on Monetary Policy, May 2009, p 46.

[17]      Mr Peter Jolly, quoted in The Sydney Morning Herald 'Canberra to Guarantee State Debt' 25 March 2009.

[18]      Infrastructure Partnerships Australia, Submission 1, p 2.

[19]      Tasmanian Department of Treasury and Finance, Submission 2, p 2.

[20]      Tasmanian Department of Treasury and Finance, Submission 2, p 2.

[21]      D Crowe, 'Swan throws debt lifeline to the states', Australian Financial Review, 26 March 2009, p 1.