Federal Budget 2016: Queensland ripped off for refusing asset sales, says Treasurer

QUEENSLAND Treasurer Curtis Pitt has accused his Canberra counterpart of attempting to “blackmail” the State Government into selling assets.

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QUEENSLAND Treasurer Curtis Pitt has accused his Canberra counterpart of attempting to “blackmail” the State Government into selling assets.

Mr Pitt yesterday insisted Federal Treasurer Scott Morrison’s decision to spend $854 million left over from the Asset Recycling Initiative (ARI) on other priorities was an affront to Queensland voters.

The Federal Budget on Tuesday confirmed billions of dollars in extra infrastructure funding would flow to rail and road projects in New South Wales and Victoria where state assets were sold through long-term leases.

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The $5 billion ARI, established by former treasurer Joe Hockey in 2014, was closed and the remaining cash funnelled into unnamed priorities.

Queensland Treasurer Curtis Pitt. Picture: Jono Searle

Queensland could have expected about $1 billion from the scheme, however the State Government is determined to keep its promise to oppose privatisation.

Mr Pitt denied the State Government’s promise had cost Queensland jobs and infrastructure. “There has been a very clear message in Queensland for two elections in a row that people don’t support (asset sales). We should not be punished for that,” he said.

Mr Pitt said he believed the Federal Government might have shuffled the money aside as an “election goodie basket” to spend during the campaign.

Priority Queensland projects that missed out on federal funding in Tuesday’s budget included Cross River Rail, the Townsville Stadium and the Gateway-Pacific motorway merge.

Stacey Rawlings from Consult Australia, the industry association for consulting companies in the built environment sector, said Labor’s stance was pushing Queensland into “economic oblivion”. “The Government’s refusal to budge from its pre-election commitment is stifling infrastructure growth in our state,” she said.

Infrastructure Partnerships Australia chief executive Brendan Lyon said the ARI had been a “stand-out success” and states that refused to reform should not be rewarded.

Originally published as Federal Budget 2016: Queensland ripped off for refusing asset sales, says Treasurer