Qld election: LNP drops costings, unveils $7bn public service shake-up

David Janetzki has vowed an LNP government would take a “calm and methodical” approach to the Queensland budget, a plan Labor has blasted as a “total fantasy”.

Leader of the LNP David Crisafulli has finally began to outline some of his election costings. Liam Kidston

An LNP government would save nearly $7bn by slashing the state’s swelling spend on contractors and consultancies – but the party can’t say how much it will spend to deliver key promises.

Shadow Treasurer David Janetzki released the opposition’s long-awaited costings on Thursday afternoon, promising to keep taxes and debt lower than Labor could.

Queensland’s spiralling debt burden would be reduced to $171.33bn by 2027/28 – a wafer-thin $660m lower than Labor has promised.

Mr Janetzki also revealed the opposition would not borrow any money for its election commitments.

But the LNP cannot yet say how much it will have to spend, and when, to build a series of small pumped hydro projects integral to Queensland’s renewable energy transition.

Mr Janetzki vowed an LNP government would take a “calm and methodical” approach to the Queensland budget, with plans to deliver an operating surplus of $1.1bn by 2026/27.

The savings cornerstone of the LNP’s election costings is to cut back on contractors and consultancies over four years to save $6.8bn.

David Janetzki Shadow Treasurer, Parliament House. Picture: Liam Kidston

In its place Mr Janetzki announced the LNP would set up a taxpayer-funded firm known as Queensland Government Consulting – in a move plucked straight from Federal Treasurer Jim Chalmers’ playbook.

The QGC would cost $87m to set up and run over four years, including paying for the public servants to staff it.

Mr Janetzki said setting up the in-house consultancy firm would “give effect” to the recommendations of the Coaldrake review into public accountability by stemming the loss of capacity in the public service.

“We want to send a clear message to the public service that we want to see them empowered,” he said.

A Queensland Auditor-General report released in March revealed the state had spent $3bn on contractors and consultants in 2022/23, up from $1.9bn in 2018/19.

Under the LNP’s plan the amount spent on consultancies and contractors would be frozen at 2022/23 levels of $3bn before being reduced thereafter.

The LNP’s costings reveal it will save $925.24m by cancelling the 5GW Pioneer-Burdekin Pumped Hydro project – the centrepiece of the state government’s renewable energy transition plan.

Instead of the mega pumped hydro project – which early estimates pegged at $12bn – the LNP will instead build an undefined number of smaller schemes by partnering with the private sector.

But it has not allocated any funding to any smaller pumped hydro projects in its election costings.

Mr Janetzki was adamant the LNP could not outline how much money would be spent over the four years, if any, as they would first need to speak to Queensland Hydro and private proponents.

Leader of the Opposition David Crisafulli with David Janetzki on the campaign trail. Picture: John Gass

“You’re talking about smaller pumped hydro projects over which there … is no certainty over any of it. It could take up to four years to pull together those pumped hydro projects,” he said.

Both the LNP and Labor are committed to building the 2.4GW Borumba Pumped Hydro Project west of the Sunshine Coast.

Mr Janetzki said the funding needed could be known by the time of his first budget, should the LNP win on the weekend.

“We’ve always been clear in that the smaller pumped hydro projects are all about de-risking this … If I just think about it as a potential treasurer, I want to de-risk these large-scale projects,” he said.

But the LNP will forge ahead with another large-scale project – building Sunshine Coast Rail all the way to Maroochydore by 2032 – despite the tight timelines and known risks.

The LNP has set aside $40m in the final two years of its first term to “accelerate” planning in preparation for building the full 37km rail line from Beerwah to Maroochydore by 2032. It would effectively mean the LNP would build 18km worth of rail in four years or less.

A business case prepared for the state government warned building the project in stages would be better for costs. Labor’s plan is to go as far as Caloundra by 2032 and build the remainder in a further two stages.

The LNP’s election promises were worth a total of $7.12bn, but coupled with savings from stemming consultancy costs and dumping Pioneer-Burdekin Pumped Hydro the overall impact on the budget would be a net gain of $660m.

Queensland Deputy Premier Cameron Dick slammed the LNP’s announcement as ‘a total fantasy’ Picture: Darren England

Mr Janetzki also confirmed the LNP would retain Labor’s coal royalty regime “across the forwards as repeatedly promised”.

“We will abolish payroll tax on general practitioners operating under a contractor model.”

Treasurer Cameron Dick trashed the LNP’s projected savings as “a total fantasy”.

“You just have to look at the fantasy set out in the LNP costs, the savings that the LNP propose to make don’t exist,” he said.

“There isn’t that forward projections of consultancies.”

Mr Dick also criticised the opposition’s lack of energy costings after spruiking a “maintenance guarantee” as the centrepiece of its cost of living plan.

He said Mr Crisafulli’s intention to continue running coal-fired power stations beyond 2028 would inevitably cost more money.

“They (maintenance costs) have to go up as those power stations continue to run,” he said.

Mr Dick hit out at Mr Janetzki after he claimed he could not cost the LNP’s plan to invest in smaller pumped hydro stations due to a lack of available analysis.

“He cannot name a single project, that means they are missing five gigawatt hours of storage,” he said.

“They have no plan to deliver it. That means electric electricity prices will be higher for Queensland.

“Queensland hydro did an analysis for three years from 2017 to 2020, on all of the available options to build pumped hydro.

“We know that doing smaller pump hydro will cost the same (as the Pioneer-Burdekin project) or more. That’s what that analysis says.”

Voting in Queensland state elections is mandatory, and pre-polling booths are open from October 14 till October 25 in most electorates.

You can find out more information about how to vote in our guide to early voting and find where to vote near you with our full list of polling booths.