Trad ‘incredibly worried’ she’d preside over dive into the red

Queensland Treasurer Jackie Trad moves to justify going further into debt, saying her hand was forced.

Queensland Deputy Premier and Treasurer Jackie Trad in Brisbane yesterday. Picture: AAP.

Queensland Treasurer Jackie Trad says concern about a $2.8 billion drop in GST and stamp duty revenue left her “incredibly worried” about the Palaszczuk government’s ability to deliver a fifth surplus in last week’s budget.

Justifying the government going further into debt amid payroll tax hikes for high-end business and a 25 per cent rise in royalties for the liquefied natural gas industry, Ms Trad yesterday blamed a national economic slowdown.

Delivering a keynote speech at a Committee for Economic Development of Australia lunch in Brisbane, Ms Trad said the national economic climate forced her hand in delivering a budget that will see Queensland’s debt hit $90bn in 2022-23.

The Treasurer, who is also Deputy Premier, said now was not the time for the government to “take the foot off the pedal” when it came to public services and ­infrastructure spending, saying it was time for the government to do the heavy lifting as business confidence waned.

She added that there had been a “number of pretty challenging” factors that influenced her decisions when drafting the budget, ­including a $1.5bn writedown of Queensland’s GST share.

“I was very worried, and on top of that we had our stamp duty ­decline in the forecast by $1.3bn,” she said. “Of course I was incredibly worried about what that would mean in terms of our operating position.”

The budget delivered a net ­operating surplus of $841 million for the 2018-19 financial year thanks to mining royalties being almost $700m higher than projected.

But the resources industry is in the firing line as the government looks to continue its high-spending agenda. Ms Trad justified her government’s heavily criticised 25 per cent royalty hike on the ­liquefied natural gas sector, saying the industry had been created by the government and it needed to give back to the community after a year of record exports.

“Queensland is now an energy powerhouse,” Ms Trad said.

“Ten years ago we were exporting zero energy and today we are one of the top three exporters in the world.

“This decision was made at a time of record petroleum exports and growth of 46 per cent in the year to April this year.

“We believe now is the right time to ensure the industry is ­giving a little bit more back to the Queensland community.”

On the day the budget was ­released, Ms Trad was embarrassingly forced to correct the record after incorrectly saying the royalty increase would only hit the export sector.

Ms Trad yesterday said she was more satisfied with this year’s budget than her debut ­attempt.

None of the 800 business leaders at the lunch volunteered to ask a question of the Deputy Premier after microphones were offered around the packed room at the Southbank convention centre in Brisbane.

Ms Trad will make a follow-up appearance at a similar event in Townsville tomorrow.