QR float 'will cut state debt'

ANNA Bligh has vowed that the proceeds of Queensland's part-privatisation of rail operator QR National will pay down state debt.

ANNA Bligh has vowed that the proceeds of Queensland's part-privatisation of rail operator QR National will pay down state debt.

She says it will also avert the need for further borrowing to upgrade the coal-hauling network.

Buoyed by the early success of the $4.6 billion float, she turned her guns on the state opposition yesterday, accusing it of "talking down" the share offer at the expense of mum and dad investors.

But Liberal National Party Treasury spokesman Tim Nicholls said the QR National sale would barely cover a year's interest on the debt racked up by Ms Bligh's Labor government.

Rejecting this, the Premier said: "We will use the proceeds to pay down debt."

The fireworks in state parliament came as a second day of spirited trading pushed the QR National share price to $2.72, before it settled back to close at $2.66. The stock had listed on Monday at an issue price of $2.55.

Strong interest from offshore investment funds has driven the promising debut. Had the float tanked, the fallout for her struggling government would have been devastating.

While the state's move to retain 40 per cent of the newly listed company knocked up to $600 million off the immediate return, it is on track to reap upward of $12bn from the deeply unpopular asset sales Ms Bligh persevered with, headed by that of QR National.