Economic plan on track through Mid Year Review

The Palaszczuk Government has maintained it commitment to debt reduction through a further $1 billion identified as part of the Debt Action Plan.

Treasurer Curtis Pitt unveiled the details in the Mid-Year Economic and Fiscal Review today.

“By regearing Gladstone Ports Corporation, North Queensland Bulk Ports and SunWater, as well as seeking a special dividend from Stanwell, we will receive a further $1 billion towards debt reduction,” Mr Pitt said.

“These regearings are supported by independent advice from KPMG and will enable our GOCs to manage their capital in a more commercial way going forward.

“As a result, General Government Sector debt will now be $10.6 billion lower in 2017-18 than it would have been in the absence of these measures.

“Also $10.6 billion less than what we’d have seen under the LNP, who don’t have a plan without asset sales.

Labor’s pre-election promise was to reduce General Government Debt by at least $5.4 billion over six years with a target of $12 billion in reductions over 10 years.

Mr Pitt said today’s Mid Year Review vindicated the Palaszczuk Government’s Budget strategy, showing ongoing surpluses and stable debt.

“Queensland is used to being ahead of the pack and, despite tough global economic conditions, I can today confirm that Queensland will lead all Australian states this year with four per cent economic growth,” Mr Pitt said.

“This is in-line with forecasts of key analysts like Deloitte Access Economics and reflects a revised growth outlook for Queensland’s major trading partners.”

This has been achieved without needing to sell income-generating assets, cutting services or sacking thousands of people.

Mr Pitt today confirmed that Queensland’s surplus for this year would be $1.2 billion, which is in-line with the July Budget forecasts.

“We will see surpluses totaling over $1 billion each and every year out to June 2019,” Mr Pitt said.

“We have achieved this while meeting our commitment to no new fees, taxes and charges, and no change to royalties, this term of Government.

“But there’s no denying world economic conditions have become tougher since the Budget, as they have for all Governments, which is why our revenue write-downs now total $1.5 billion over the forward estimates compared to Budget time.

“This is predominately due to declines in payroll tax collections from the mining and construction sectors, as well asdownwards revisions to royalties as a result of world resources prices, particularly for coal and oil.

“But through responsible economic management we’ll continue to deliver strong surpluses each and every year over the next four years.”

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