Qld election 2020: Labor government’s $3 billion election war chest strategy

Embattled Queensland Premier Annastacia Palaszczuk has armed herself with a $3 billion war chest in her effort to be re-elected.

The Queensland Labor government will fight this year’s state election armed with a $3 billion war chest, set to be used to announce major projects in the lead-up to October 31.

The state’s Treasurer, Cameron Dick, confirmed the news on Monday, announcing a further $1 billion will also be borrowed to invest directly into businesses to create jobs off the back of the COVID-19 pandemic.

Of that $1 billion, $500 million will be spent on a new renewable energy fund, while another $500 million will be spent to establish a Backing Queensland Business Investment Fund, to be managed by the Queensland Investment Corporation.

Mr Dick said the $3 billion would be “allocated” between now and the state election, not to fund election sweeteners but to “invest in Queensland, particularly infrastructure and to create jobs”.

“At a time when we can increase the borrowings without increasing the tax burden, it’s appropriate we do so to support the economy and Queensland jobs,” he said during the fiscal update.

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Queensland Treasurer Cameron Dick during a press conference for the COVID-19 Fiscal and Economic Review. Picture: Tertius Pickard/NCA NewsWire

The Queensland Labor government will fight the election armed with a $3 billion war chest, set to be used on major projects in the lead-up to October 31. Picture: Attila Csaszar/NCA NewsWire

The Queensland government’s total debt will hit nearly $102 billion by the middle of next year, $18 billion more than forecast in December.

But Mr Dick said the state’s economy had fared better than other states, thanks to Premier Annastacia Palaszczuk’s hard stance on keeping the border closed, with a Treasury analysis predicting a “Victoria-style” stage 4 lockdown in Queensland would cost the economy a further $3.1 billion a month.

“Keeping the borders strong has had a good impact on our economy – yes there’s a long way to go … unemployment will still be 8 per cent in the June quarter of next year,” he said, with unemployment pegged to peak at 9 per cent in the December quarter.

Mr Dick said there was “no sugar-coating” the impact of COVID-19 on Queensland families.

“More than 138,200 Queenslanders have lost their jobs since the pandemic started,” he said.

“The outlook is undeniably difficult and challenging.”

Opposition leader Deb Frecklington took aim at the government, calling them “debt deniers” and slamming them for announcing an “election slush fund” paid for by taxpayers.