Queensland Election 2017: Palaszczuk obfuscates on debt

ANNASTACIA Palaszczuk couldn’t say how much debt her Government had repaid using dividends or what amount Labor would repay next term. We know the answers, writes Steven Wardill.

ANNASTACIA Palaszczuk yesterday couldn’t say how much debt her Government had repaid using dividends.

And the Queensland Premier wouldn’t say what amount Labor would repay next term.

The real answers are zero and zilch. However, what Palaszczuk’s obfuscating demonstrates is the costly political roadblock that Queensland has reached over the issue of our multi-billion dollar borrowing bill.

Over two populist election campaigns, both sides have demonised each other over efforts to reduce debt.

First, the LNP lambasted Labor at the 2012 election for privatising a suite of state assets by claiming it was a “firesale”. Then in 2015 Labor opposed the LNP plans to do the same and promised to use the profits of State-owned assets to pay down debt.

However, despite pocketing a record $10 billion from the businesses over the last three years, Labor hasn’t used any of it to pay down debt.

Queensland’s overall debt was $72.7 billion at the end of 2013-14. It will be $72 billion (possibly more after this election) at the end of 2017-18.

And it’s forecast to break through the $80 billion barrier in three years.

From a distance, Government sector debt, which is minus what the assets owe, looks healthier. It’s fallen $7.7 billion over the last three years. However, more than $9 billion has been reaped through debt switches, raiding long service leave funds and taking a holiday from superannuation contributions rather than using dividends.

This isn’t debt reduction.

It’s just swapping one cost for another. And every taxpayer covers that cost, one way or another.

The annual price of just paying the interest bill on Government borrowings is around $1.7 billion.

That’s the equivalent of scrapping vehicle registration, for everybody every year.

Just imagine the savings if politicians, of all persuasions, had the answer to debt.