With the state election fast approaching, the Sunshine Coast Business Council has called on the major political parties to address Queensland’s $80 billion debt.
Sunshine Coast Business Council Chair Sandy Zubrinich said it was critical that Labor and the LNP provided tangible insight into how they intend to feasibly reduce the debt and stop it being a drag on the state economy.
“Australian and Queensland voters made it clear 2014 and again in 2015 that they were not prepared to engage in tough discussions surrounding debt, deficit and the actions required to address both,” Ms Zubrinich said.
“In 2017 nothing has changed; there is still minimal appetite for a discussion in the Queensland election about the state’s debt and the quantum of the annual interest payment.”
“As a consequence, the major parties are seemingly focusing their attention on other issues considered more palatable to voters, but the harsh reality is that sweeping it under the carpet does little to fix the problem.”
Treasury figures released in June indicate that while the state’s debt growth has slowed, it is on track to reach $81 billion by the 2020-21 financial year.
Ms Zubrinich said Labor’s efforts to reduce debt had been sub-par at best, as evidenced by Treasurer Curtis Pitt’s admission that the government was not expecting to regain its AAA credit rating in the near future.
“In 2015, the Palaszczuk government saddled state-owned corporations with more debt, and more recently, drew on public service superannuation and long-service leave holdings in a meagre attempt to slow debt growth,” she said.
“When questioned about this last month, Premier Palaszczuk did not know how much Labor had paid down in debt throughout its term in government, which is reflective of just how low of a priority this issue is considered.”
“Our state debt is a tremendous drain on the economy and will continue to be for a long time to come unless it is addressed head on.”
Ms Zubrinich said that while it was inevitable that compromises would need to be made to reduce state debt, cutting funding for critical infrastructure was not the answer.
“Many parts of Queensland are overdue for much-needed infrastructure and delaying or disregarding these needs could present a number of negative ramifications for the Queensland economy.”
“The Sunshine Coast Business Council acknowledges Tim Nicholls’ efforts to start a conversation in late 2014 seeking a solution to pay down debt, but given the broader community’s largely unfavourable response to tax increases, service cuts and asset sales, I’m doubtful the LNP will be quick to place these on the agenda again.”
“The major parties no doubt recognise the political risk associated with reopening this discussion, but for the future prosperity of the state, it is a discussion our political leaders should not back away from.”
The Sunshine Coast Business Council is the leading regional business advocacy group on the Sunshine Coast. It represents approximately 4,000 businesses through its membership, which includes key national and regional industry groups and their members as well as national and regional businesses.