Pitt says Budget’s cost of living relief measures a ‘sugar hit’ that risk driving inflation

Hinkler MP Keith Pitt believes the region has been short-changed in Tuesday’s “big taxing, big spending” budget which he says risks driving up inflation further.

Hinkler MP Keith Pitt is concerned about the potential loss of key infrastructure projects following Tuesday's "stinker" budget.

Cancellation of key infrastructure projects are among Hinkler MP Keith Pitt’s concerns about Tuesday’s budget which he described as a “stinker”.

Upgrades to Bundaberg’s Quay St and Bargara Rd are two Hinkler Regional Deal projects included in the federal government’s audit of the Infrastructure Investment Program announced by Minister for Infrastructure Catherine King on Monday, May 1.

No funds have been allocated to the Hinkler Regional Deal in the 2023-24 Budget.

Mr Pitt says that a failure to deliver the two projects would amount to a broken promise by the government.

Keith Pitt claims to have received correspondence from Catherine King guaranteeing the delivery of Hinkler Regional Deal projects.

“I have correspondence from Catherine King (last year) guaranteeing that Hinkler Regional Deal will not be touched and those projects will be delivered,” Mr Pitt said.

“This budget is a traditional Labor budget. It’s big taxing, big spending … it’s a stinker.”

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A spokeswoman for Mrs King said that the federal government is committed to delivering existing funded Regional Deals.

“We have committed to honour existing funded projects under City and Regional Deals,” she said.

“Given the age of a number of these city and regional deal commitments, a review is timely to consider any changes in cost or circumstances since they were first proposed, however our starting basis is that we remain committed to honouring the funded City and Regional Deals.”

The Morrison government committed $172.9m towards funding the Hinkler Regional Deal in 2019.

The 2023-24 budget includes $7.5m for the Port of Bundaberg’s multi-use conveyor project, on top of the $7.7m allocation in last year’s budget.

Survey data released by Mr Pitt’s office prior to the budget identified cost of living as one of the biggest issues for Hinkler residents, with electricity prices a primary concern.

Mr Pitt said the $14bn cost of living relief package did not go far enough to address this crisis.

He said the $500 electricity bill relief for eligible households was a short-term “sugar hit” that will drive up inflation.

Cost of living pressures were one of the biggest issues for Hinkler constituents, Mr Pitt said.

“People will be very grateful for any help that they can get at all at a time where they simply can’t pay their bills,” Mr Pitt said.

“But this is a one-off sugar hit and a $500 subsidy that will go to some people but not others.

“In any other circumstances, what Labor has put out in their budget would be considered to be a stimulus package, and we have inflation running at seven per cent.”

Mr Pitt also criticised the government for ending support for the low income tax offset, which he said would have provided up to $1500 in tax relief to 51,000 people in Hinkler.

Hinkler MP Keith Pitt said the $500 in electricity bill relief for eligible households announced in the budget was a short-term “sugar hit”.

When pressed on which of the measures announced in Tuesday’s budget he would drop in order to retain the low income tax offset without contributing to inflation, Mr Pitt said such questions of prioritisation were a matter for the government of the day.

“These are decisions of the government; they have now had two budgets, and they will live and die by their own decisions,” he said.

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Pensioners, veterans, concession card holders and recipients of carer’s allowance or the family tax benefit are eligible to receive the $500 energy bill relief payments.

In a statement announcing the review of the Infrastructure Investment Program on May 1, Mrs King said the review would assess projects approved by the Coalition government that were “fiscal timebombs … without real benefits to the public”.

Originally published as Pitt says Budget’s cost of living relief measures a ‘sugar hit’ that risk driving inflation