Statement from the Queensland Treasurer

Tonight’s Federal Budget serves as a reminder that Governments need to act responsibly with scarce taxpayers funds, and that short term ill-disciplined decisions have long term consequences.

Treasurer Tim Nicholls said while there were some positives in the Budget for Queensland, there are clearly many difficult decisions the Federal Treasurer has had to make which will impact on Queenslanders.

“Two years ago the Queensland Government started the process that Joe Hockey has begun tonight,” Mr Nicholls said.

“The 2014-15 Queensland State Budget will not require the same sorts of measures announced in tonight’s Federal Budget because the Government made strong choices in our first budget with fiscal repair measures totalling $7.5 billion.

“We’ve lived up to our promise to cut waste and reduce our expenses and at the same time we’ve been able to deliver more funds for frontline services with record budgets for health and education.”

Mr Nicholls welcomed the commitment of increased funding for infrastructure projects, and said he was particularly pleased to see funds allocated for:

• Commonwealth Games $156 million;
• Toowoomba Second Range Crossing up to $1.285 billion;
• Gateway Upgrade North up to $1 billion;
• Bruce Highway Upgrade up to $6.7 billion to 2022-23;
• Great Barrier Reef 2050 plan with a $40 million trust fund and
• Addressing insurance costs in North Queensland - $12.5 million.

“These projects are essential projects for Queensland and will help us to grow our four pillar economy,” he said.

Mr Nicholls said it was deeply disappointing to see that the Commonwealth has revised the funding methods for health and education.

“The revisions are nothing more than an unjustified attack on the State’s delivery of health and education services.

“We will use the time between now and the implementation of these measures to take the fight to Canberra.

“These changes will significantly increase the pressure on the State’s budget, as we believe the shifting of expenditure to the State’s Budget is unsustainable.

“Of particular concern is the freezing of indexation payments to local governments. The state is not in a position to assist, given our own budget repair task, so this reduction in funding is going to increase the strain on local governments.

“Our methodical and disciplined plan has us on track to deliver the first fiscal surplus in a decade by 2015-16, as a result of the action we took two years ago.

“But we are still constrained by the $80 billion of accumulated debt which means we can’t deliver the roads, rail and dams that would help to grow the economy and create more jobs.

“That’s why we have been talking to Queenslanders about our debt challenges. Queenslanders know that if you can’t pay for today, there is no way you can build for tomorrow.

“On 3 June I’ll be releasing the Government’s plan to pay down debt.

“Not everyone will agree with the choices we will make but all Queenslanders will know that we can securely fund Queensland’s future.”

[Ends] 13 May 2014

Media contact: Maree Lacey 0409 947 957 or Anna Hilton 0408 191 192