Job cuts, hiring freeze not ruled out as first LNP budget looms

Treasurer David Janetzki won’t reveal what cuts will be made in Tuesday’s state budget to cover the black hole left by a massive cut in GST revenue, but promised “budget improvement”.

Queensland Treasurer David Janetzki. Picture: Lachie Millard.

Treasurer David Janetzki won’t say whether his first budget will include cuts to programs, jobs or implement a public service hiring freeze, but promised decisions to deliver “budget improvement” would be measured.

Mr Janetzki’s Tuesday budget, the first from an LNP government since 2014, is expected to focus on paying down the $217bn debt facing Queensland by 2028 – despite coal royalty revenue significantly slowing and a $2.3bn reduction of GST revenue next financial year.

The treasurer said the federal government “kicked us in the pants” by signing off on the GST reduction – which was recommended by an independent commission due to the soaring coal royalty windfall received by the state.

“I’m not going to shut up about that because I think Queensland does deserve a fairer go than what is reflected with that,” Mr Janetzki said.

Asked whether the revenue black hole would force him to cut programs, jobs or implement a public service hiring freeze, the treasurer said he would have “more to say about that on Tuesday in terms of the measures we’ll take”.

“We’re enhancing services, we’re going to be investing into those projects that need to be delivered,” he said.

“There is an element of we have to achieve … we have to target budget improvement year-to-year but it’s important that we in doing that in a measured way.

Treasurer David Janetzki won’t reveal what cuts will be made in Tuesday’s budget. Picture: Lachie Millard.

“You enhance the services, you deliver the projects and you need to deliver targeted cost of living relief to those who need it most.”

The treasurer has also taken aim at the former Labor state government for raising coal royalty tiers and leaving Queensland facing an economic rating downgrade.

“My rhetorical question remains – $70bn that the former treasurer got over three-and-a-half years in additional revenue to what had been originally forecast – where did that end up?”

Economists argue it is not possible for the state government to cover cost escalations and pay down debt without cutting services or raising revenue.

Asked whether he’d found a magic formula, Mr Janetzki said: “I look forward to sharing that path on Tuesday”.

He noted the government had axed Labor’s Pioneer-Burdekin pumped hydro project and paused the CFMEU-friendly Best Practice Industry Conditions policy.

The era of widespread cost of living sweeteners are over, the treasurer said, but Tuesday’s budget will include precision relief and cash to deliver “structural” measures to lower costs over time.

“I take it very seriously to make sure that it is targeted and responsible,” he said.

“I think households continue to do it tough no matter where I go … households and small businesses in particular, they’re continuing to do it tough.”

He has promised no repeat of the “advertising hoarding” – political party slogans and policy promotion – that featured prominently in the former Labor government’s budget.

The treasurer has declined to reveal whether he would deliver a budget surplus this term, or whether his flagship Queensland Government Consulting would save the promised $7bn over the forward estimates.

Mr Janetzki said he would detail on Tuesday how the government was “flattening of the trajectory” of rising spending on consultants and contractors under the former government.

The government also faces a public sector wage bill explosion as unions push for an increase of more than the budgeted 2 per cent.

The treasurer declined to say whether Tuesday’s budget would reflect the likelihood the government would need to find billions more dollars to cover a wage rise likely to be 3 per cent or higher.

“Those negotiations you refer to, we’ll continue to conduct them in good faith,” he said.

“We’ve made it very clear our commitment to empowering the Queensland public service.”

Mr Janetzki said Queenslanders could expect a no frills budget focused on setting the state on a path to prosperity.

“It’s Queensland’s moment and we get it right, we get this first budget, invest into those services and those projects and start the journey in what I think is an extraordinarily bright decade ahead,” he said.

Originally published as Job cuts, hiring freeze not ruled out as first LNP budget looms