WHAT BOOM? $92 BILLION BLOWOUT OF STATE’S DEBT

Written on the 21 June 2012

WHAT BOOM? $92 BILLION BLOWOUT OF STATE’S DEBT

QUEENSLAND’S management of the mining boom is under fire after an audit by former Federal Treasurer Peter Costello revealed the state’s debt would total $92 billion by 2016.

The Review of Queensland’s Finances Report shows ongoing interest repayments on the debt will amount to nearly 10 per cent ($5.3 billion) of annual state revenue in FY16, raising speculation the state’s credit rating could be downgraded.

However, ratings agency Moody’s Investors Service denied having plans to review the state’s credit rating of AA1.

“Normally, if it was something serious we would announce a review, but we have not done that. At the moment the rating is stable,” says a spokesperson.

Despite Premier Campbell Newman’s promise to “protect” permanent roles in the public service, Treasurer Tim Nicholls says public sector job cuts cannot be ruled out if the state’s debt is not reined in.

He also warns of new taxes and charges to cover the ballooning interest payments.

The Chamber of Commerce and Industry Queensland says business competitiveness will suffer unless immediate action is taken to reduce the debt.

“Increases in taxes, fees and charges will be put forward and further redundancies across the public sector will be mooted as solutions to address a brewing debt storm,” says CEO Stephen Tait.

Australia Industry Group Queensland suggests selling more state-owned assets could help reduce debt.

“The government should look at a second round of asset sales involving CS Energy, Powerlink Queensland and Stanwell Corporation,” says state director Matthew Martyn-Jones.

“Previous asset sales of QR National, Queensland Ports and Forestry Plantations Queensland were very well received by the market and secured healthy returns.”


Latest News

BRISBANE VFX PRODUCTION COMPANY CLEANS UP AT MAJOR INTERNATIONAL ADVERTISING AWARDS

AUSTRALIAN production company Alt.vfx has broken records in global advertising, becoming the first business to win...

CYCLONE DEBBIE FORCES MINE, RAIL AND PORT CLOSURES AS IT WREAKS HAVOC IN QUEENSLAND

COAL and gold mines in north and central Queensland are being seriously impacted as Cyclone Debbie makes landfall ...

FLYING START TO 2017 PASSENGER NUMBERS FOR GOLD COAST AIRPORT

RECORD numbers of travellers used the Gold Coast Airport (GCA) in January this year, continuing a five-year trend ...

SUNCORP SAYS IT'S 'COVERED' AGAINST FINANCIAL COST OF CYCLONE DEBBIE

INSURER Suncorp (ASX: SUN) says it is "well protected" against the financial impact of Cyclone Debbie th...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter