Queensland budget 2016: Pitt ignores super advice

Queensland’s Treasurer will ignore a warning from the state’s actuary to stash cash to top up a superannuation fund.

Premier Annastacia Palaszczuk and Treasurer Curtis Pitt promote their budget today.

Queensland Treasurer Curtis Pitt will ignore advice from the state’s actuary to stash cash to top up a public servants’ superannuation fund, now at greater risk of falling into deficit after his $4bn raid.

In yesterday’s Queensland budget, Mr Pitt said he would take $4bn from the $10bn surplus of Queensland’s fully-funded defined benefits scheme — $2bn to pay down debt and $2bn to pay for infrastructure.

While the state actuary originally said it would be prudent to remove only $2bn from the fund, after pressing by the government, he later revised his advice to say a maximum of $5bn could be repatriated. But actuary Wayne Cannon warned there was a risk of between 19 per cent and 50 per cent that the fund would fall into deficit if $4bn was snatched.

“In order to ensure the ongoing funding of the Scheme, it is critical that the government recognises this issue, and stands ready to contribute additional funds should adverse experience occur in future,” Mr Cannon wrote.

But today, in a fiery press conference beginning the hard-sell of promoting the budget, Mr Pitt refused to say if the government would top up the fund if it fell into deficit, and would not

“If it did fall below the line … we’d get updated advice from the actuary and taking the advice at that time,” Mr Pitt said.

“We are putting surplus money to work to help benefit our economy, to ensure we’re saving interest so we can benefit more Queenslanders. This money would otherwise be sitting there as a surplus.”

“You’re talking about hypotheticals.”

He said Queensland Investment Corporation had provided advice that they were comfortable with the repatriation amount.

Premier Annastacia Palaszczuk and Mr Pitt then hit another hurdle in the promotion of their budget at what should have been a good-news event for the government: the traditional post-budget Labor-hosted lunch.

The event was sponsored by major firm EY, but Brisbane managing director Paul Laxon did not mince words when asked his opinion on stage of the budget centrepiece: the $4bn “repatriation” from the surplus of the defined benefits fund.

Mr Laxon said it was government money, so they were entitled to take it. However, he said he did not understand the logic of taking $2bn to pay down general government sector debt. Mr Laxon said it would be better for the budget bottom line if it remained where it was, being managed by Queensland Investment Corporation and generating a return.

“So we’re actually going backwards.”