Labor attempts to soften debt blowout

Treasurer Curtis Pitt has given the strongest indication yet the Palaszczuk Government will break a key election promise to pay down debt.

Mr Pitt today hinted next month’s Budget would include a write-down in royalties of $3 billion over four years.

Shadow Treasurer John-Paul Langbroek said Mr Pitt was preparing Queenslanders for an inevitable Labor debt blowout.

“Treasurer Curtis Pitt is clearly looking for any excuse possible to justify breaking his debt reduction promise,” Mr Langbroek said.

“When the LNP was in government we experienced revenue write-downs totalling $5.9 billion.

“Through careful financial management, we were able to absorb those write-downs, and the multi-billion dollar cost of rebuilding from natural disasters, while also reducing Labor’s forecast $85 billion debt.

“We also left office forecasting Queensland’s first real surplus in a decade.”

Mr Langbroek said more and more holes were showing in Labor’s flawed budget strategy.

“Yesterday’s New South Wales State Budget showed the impact of reduced revenues at state-owned electricity businesses as a result of recent decisions by the Australian Energy Regulator,” he said.

“Returns from the electricity businesses are forecast to decrease by almost 64 per cent in 2015-16 in New South Wales.

“This is going to be a major issue here in Queensland, considering the Government is relying on the revenue from these businesses to pay for their election promises.

“With less than three weeks to go, the cracks in Mr Pitt’s budget strategy are widening.

“Queenslanders deserve to know how Labor is going to fix these budget problems that are emerging almost daily.

“This is a simple return to form for Labor and again illustrates the government’s lack of experience and economic incompetence.

“The Premier and Treasurer both sat around the Cabinet table as the previous Labor Government racked up a decade of debt and deficit.

“We don’t have to wait until July to know what Labor has planned for their first budget – it’s in their DNA.”

 

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