Treasurer Jackie Trad begins hard sell on second budget

Queensland Treasurer Jackie Trad has begun the hard sell on her second budget, defending rising levels of debt.

TREASURER Jackie Trad has begun the hard sell on her second Budget, outlining her plans at a Queensland Labor lunch in Brisbane today and defending Queensland’s rising debt levels.

She said the majority of the debt ­- set to hit more than $90.7 billion in four years — was being held by government-owned corporations.

It came amid a warning from an economist who presented at the lunch that Governments needed to ensure any borrowings were spent on economically stimulating infrastructure or else it was just leaving a burden for future generations.

“As many people would know, most of the debt that we accumulate is outside the general government sector, government-owned corporations,” Ms Trad told the lunch.

“They act commercially. They provide a dividend back to the state coffers and they also pay down their own debt so a lot of the debt is actually working debt for our government-owned corporations, for energy generators, for our ports … so these are all economic infrastructure and corporations that are paying their own way.

Premier Annastacia Palaszczuk and Treasurer Jackie Trad at the CEDA lunch at the Brisbane Convention and Exhibition Centre. Picture: Annette Dew

“In terms of general sector government debt, we made a commitment that we would decrease debt and we have done so, unlike the Federal Government that has doubled debt in the past six years.

“Our debt levels as the ratings agencies said overnight, are manageable.

“They recognise the economic conditions that we are in and that jobs growth and economic growth do need to be stimulated by Government.”

EY chief economist Jo Masters told the lunch that it was critical governments were able to provide cyclic support for the economy.

“Debt has a role to play. It is critical that debt is used for projects that build productive capacity in the future.

“That seems obvious but the reason that is important is my second point and that is it is really important not to forget that when we increase debt levels or when we use debt we are borrowing economic activity from the future.

“If we don’t repay that debt and we don’t build productive capacity then we are actually leaving a burden for young Australians.”