Sir Leo Hielscher says Queensland should open coal-fired power stations

THE man credited with being one of the architects of the modern Queensland economy has blasted the State Government’s economic plan and insisted the state should open new coal-fired power stations.

Sir Leo Hielscher says Queensland should open new coal-fired power stations.

THE man credited with being one of the architects of the modern Queensland economy has insisted the state should be opening new coal-fired power stations.

Sir Leo Hielscher has also criticised the Palaszczuk Government for having no plan to pay down the state’s mammoth debt bill, warning the administration was passing the burden of its borrowings onto future generations.

The venerated former under treasurer and Queensland Treasury Corporation chair was the guest speaker at last night’s annual Sir Thomas McIlwraith lecture held by conservative think tank, the Australian Institute of Progress.

It was a rare foray into the public debate from the spritely 92-year-old public service doyen who had the twin Gateway Bridges named after him by the Bligh government when he retired in 2010.

“What we need right now is a clean coal-fired power station to maximise our natural strength,” he said.

“We have plenty of coal and coal-fired power stations produce some of the cheapest electricity.”

Sir Leo Hielscher & Lady Mary Ellen Hielscher. MacCarthur Dinner, Tattersal's Club. Pic Isaac Lawrence.

Sir Leo, who oversaw Queensland’s emergence as a resource powerhouse, also said “we need Adani or another project of similar size”.

He told the crowd, which included three former treasurers, Keith DeLacy, Joan Sheldon and Andrew Fraser, as well as former premier Campbell Newman, that Queensland’s current debt was much higher than the past.

“The recent State Budget papers confirm we now have an $80 billion debt,” he said.

“This compares with a $20 odd billion dollar debt throughout the 80s and the 90s.

“As I’ve mentioned, this earlier debt was for infrastructure such as ports, rail extensions, electricity and local authority capital works that service the debt.”

Sir Leo said “we must really worry about this $80 billion debt”.

“For eighty thousand million dollars debt the interest cost even at today’s relatively low interest rate would be fairly close to 2500 million dollar per annum,” he said

“We should be trying desperately to cap and then reduce the size of this milestone.

“If we attack and then try to eliminate the debt over say 20 years, and that’s a long time, the cost to the Budget will be in the vicinity of $5.5 billion per annum.

“That is 5500 million dollars out of the Budget each year before we start to consider funding for schools, hospitals, police etc.

“$5500 million is a lot of money, it would pay for a Cross River Rail project in year one with 19 years to spare.

“Unfortunately also there seems to be no plan or program to pay off the debt, it is still growing.

“Sorry kids, sorry grandkids.”