Qld election: LNP drops costings, unveils $7bn public service shake-up

David Janetzki has vowed an LNP government would take a “calm and methodical” approach to the Queensland budget, pledging to deliver an operating surplus of $1.1bn by 2026/27.

Leader of the LNP David Crisafulli has finally began to outline some of his election costings. Liam Kidston

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An LNP government would save nearly $7bn by slashing the state’s swelling spend on contractors and consultancies.

Queensland’s spiralling total debt burden by 2027/28 would be reduced to $171.33bn—representing a wafer-thin decrease of $660m, with the Opposition not borrowing any money for its election commitments.

But the LNP cannot yet say how much it will have to spend, and when, to build a series of small pumped hydro projects integral to Queensland’s renewable energy transition—with the government warning this left the Opposition with a significant budget blackhole.

Shadow Treasurer David Janetzki vowed an LNP government would take a “calm and methodical” approach to the Queensland budget, with plans to deliver an operating surplus of $1.1bn by 2026/27.

The savings cornerstone of the LNP’s election costings, released on Thursday, is to cut back on contractors and consultancies over four years to save $6.8bn.

In its place Mr Janetzki announced the LNP would set up a taxpayer-funded firm known as Queensland Government Consulting---in a move plucked from Federal Treasurer Jim Chalmers’ playbook.

The QGC would cost $87m to set up and run over four years.

David Janetzki Shadow Treasurer, Parliament House. Picture: Liam Kidston

Mr Janetzki said setting up the in-house consultancy firm would “give effect” to the recommendations of the Coaldrake review into public accountability by stemming the loss of capacity in the public service.

“We want to send a clear message to the public service that we want to see them empowered,” he said.

A Queensland Auditor-General report released in March revealed the state had spent $3bn on contractors and consultants in 2022/23, up from $1.9bn in 2018/19.

Under the LNP’s plan the amount spent on consultancies and contractors would be frozen at 22/23 levels of $3bn before being reduced thereafter.

The LNP’s costings reveal it will save $925.24m by cancelling the 5GW Pioneer-Burdekin Pumped Hydro project—the cornerstone of the state government’s renewable energy transition plan.

Instead of the mega pumped hydro project—which early estimates pegged at $12bn - the LNP will instead build an undefined number of smaller schemes.

But it has not allocated any funding to any smaller pumped hydro projects in its election costings.

Mr Janetzki was adamant the LNP could not outline how much money would be spent over the four years, if any, as they would first need to speak to Queensland Hydro and private proponents.

“You’re talking about smaller pumped hydro projects over which there… is no certainty over any of it. It could take up to four years to pull together those pumped hydro projects,” he said.

Mr Janetzki said the funding needed could be known by the time of his first budget should the LNP win on the weekend.

“We’ve always been clear in that the smaller pumped hydro projects are all about de-risking this… If I just think about it as a potential treasurer, I want to de-risk these large-scale projects,” he said.

Leader of the Opposition David Crisafulli with David Janetzki on the campaign trail. Picture: John Gass

But the LNP will forge ahead with another large-scale project—building Sunshine Coast Rail all the way to Maroochydore by 2032—despite the tight timelines and known risks.

The LNP has set aside $40 in the final two years of its first term to “accelerate” planning in preparation for building the full 37km rail line from Beerwah to Maroochydore by 2032.

A business case prepared for the state government warned building the project in stages would be better for costs. Labor’s plan is to go as far as Caloundra by 2032 and build the remainder in a further two stages.

Originally published as Qld election: LNP drops costings, unveils $7bn public service shake-up