Queensland election: Debt a priority, but strategy elusive for Labor

Queensland Premier Annastacia Palaszczuk insists slashing debt is a priority for her.

Tourism chief Craig Turner, left, Annastacia Palaszczuk and Whitsundays Mayor Andrew Willcox in Proserpine.

Queensland Premier Annastacia Palaszczuk insists slashing debt is a priority for her, as LNP leader Tim Nicholls declares lowering power prices and creating jobs are more important than cutting the state’s nation-leading borrowings.

Former Labor treasurer and ­retired businessman Keith De Lacy yesterday condemned the major parties for failing to present voters with a plan to reduce Queensland’s debt, which will hit $81 billion by 2020-21.

While Ms Palaszczuk yesterday acknowledged cutting debt was a priority, she could not say if or how she would do so if re-elected. “Of course it is a priority and will continue to be a priority,” she said, but she refused to say if she would reduce or stabilise debt.

“We will announce our costings, all our election commitments that have been fully costed. They will be announced in time for the people of Queensland to know where that money is going to.”

During her term, the government has shifted debt on to the books of government-owned corporations. Labor also raided $4bn from the surplus of the public service defined benefit superannuation fund, with half taken to pay off debt.

As treasurer in the Newman government, Mr Nicholls described the state’s debt as “unsustainable” and pushed a failed $42bn privatisation plan to pay for infrastructure and reduce debt.

But as Opposition Leader, Mr Nicholls will commit to only ­stabilising debt over the next term of government. Yesterday, he said while he respected Mr De Lacy as a successful company director, he would not take his advice.

“I simply say that we will, as I’ve said in our economic policy, seek to stabilise the debt over the economic cycle, but the most important thing we can do for Queenslanders is ensure that they have the opportunity for a job, the most important thing we can do for them is make sure their power bills are affordable, and the most important thing we can do is to make sure the infrastructure that will see the state ­develop is in place,” he said.

Mr Nicholls would not be drawn on whether he would cut government expenses growth — which hit 7.2 per cent last financial year — if elected, and said voters would find out next week if the LNP would impose an efficiency dividend on government to slash spending.

“We’ll be releasing the details of all of our expenditure, including what we expect to happen over the forward three years, and that’ll be done after we’ve released all our announcements and it’ll be independently verified,’’ he said.

Economist Joe Branigan this week told The Australian the level of debt gave the government ­reduced options to deal with the impacts of natural disasters such as Cyclone Debbie, which tore through the Whitsundays in March.

Speaking from Proserpine in the Whitsundays yesterday, Ms Palaszczuk said the region had bounced back thanks to government assistance.

Asked whether she was concerned that government debt could mean the government was less able to help in the future and whether debt was a priority, Ms Palaszczuk said it was.

“What I know is that we have made it (debt) a priority,” she said.

“Let’s also remember that ­(credit rating agency) Moody’s has taken us off that negative watch.

“Moody’s has given a vote of confidence in Queensland as we are progressing the Queensland economy.”