Greater North Queensland Report flawed: Fraser

Treasurer Andrew Fraser has slammed a report released by Townsville City Council as inaccurate and a waste of rate-payers’ money.

“Clearly some councils have money to waste as this report is fundamentally flawed.

“The report authors acknowledge that they do not have data on Queensland government revenue or expenditure activity and therefore use proxy assumptions.

Mr Fraser said the major state revenue generated in regional Queensland was from royalties.

“But total royalties across the state in the five years the report focuses on equalled $6.5 billion while the capital expenditure alone in this period in Greater North Queensland totalled $8.7 billion.

“Capital expenditure is only the money spent on building infrastructure like roads, hospitals, schools and ports.

“We spend money every day, year in, year out, on doctors, nurses, teachers, allied health professionals, suppliers and medicines to run our schools and hospitals in the region.’’

Mr Fraser said that together stamp duty and payroll tax was forecast to generate $2.2 billion more than royalties this year.

“Approximately 20 per cent of payroll tax is raised outside Queensland and similarly about 20 per cent of stamp duty comes from outside south east Queensland.

“I do not believe that all that money should stay in south east Queensland.

Mr Fraser said the government strongly believed that the Queensland coal and minerals belong to all Queenslanders as much as the stamp duty and payroll tax raised in the south east corner belong to all Queenslanders.

“If decisions were made on a per capita basis as the report recommends then greater north Queensland would receive $800 million less in spending in this year’s capital works program,’’ he said.

“This fact demonstrates our commitment to supporting regional Queensland as it supports the resources boom.

Mr Fraser said that the government had recently committed, in partnership with local government and the Queensland Resources Council, a Sustainable Resource Communities fund of $100 million as a further commitment to those towns which are supporting the resources boom.

“Some councils have recently put in a claims for costs for amalgamation. Clearly they have more than enough money if they believe commissioning consultants to produce rubbery conclusions is a priority for their ratepayers money.’’

Media Contact: Renee Mickelburgh 0458 357 539