Community to miss out from Gladstone Ports' new debt

Gladstone Ports Corporation will be dumped a share of $1 billion of Queensland Government debt.
Gladstone Ports Corporation will be dumped a share of $1 billion of Queensland Government debt. Jen Tybell

UPDATE 10.15am:

THE Gladstone Community will be the losers out of the debt shift from Queensland Government to Gladstone Ports Corporation according to mayor Gail Seller.

Yesterday, Queensland treasurer Curtis Pitt announced GPC would share a $1 billion debt with North Queensland Bulk Ports, SunWater and a $150 million dividend from Stanwell a decision Cr Sellers said would result in GPC not investing in the community.

"There won't be money available to do extra things for the community," she said.

"(GPC) will be looking at the $1 billion worth of debt.

"The port will need to look at costs and every cent they spend and it may result in extra things for the community not happening."

Member for Flynn Ken O'Dowd said the state had to control cost or raise revenue without increasing taxes in order to lower debt.

"(But) killing the hen that lays the golden egg is not always the smartest move," he said.

"In the past, we have seen this government hit Ergon and Energex by approximately $1.8 billion, to simply have these costs and charges passed onto consumers."

Since July 1 GPC has contributed to more than 15 community initiatives.

These include:

  • Capricorn Film Festival
  • Rockhampton Art Gallery exhibition
  • Burnett Heads Lighthouse Festival 2015
  • St Jospeh's Catholic Primary School Environment Calendar
  • CQUniversity Gladstone Ports Corporation Academic Prizes
  • Gladstone Men's Shed Early Childhood Services Project
  • GPC Bursary Program - 26 schools in Bundaberg, Gladstone and Rockhampton
  • Industries of Gladstone Challenge 2015
  • Gladstone and District Wildlife Carers donation to purchase equipment
  • Martin Hanson Memorial Art awards
  • Movember Foundation fundraiser
  • Annual Christmas donation
  • Port of Bundaberg Shorebird Monitoring Program
  • Reef Check Foundation community program
  • Talent Today, Talent Tomorrow Indigenous Bursary and Scholarship Program



GLADSTONE will once again shoulder the rest of Queensland with Treasurer Curtis Pitt announcing yesterday the region's ports would be handed a share of $1 billion of state debt.

Gladstone Ports Corporation chairman Leo Zussino experienced a similar arrangement when he was chief executive of the GPC and said it didn't impede the corporation's development.

The debt shift to Gladstone Ports Corporation, which returned a dividend of $54.4 million to the State Government last financial year, will share that burden with North Queensland Bulk Ports, SunWater and a $150 million dividend from Stanwell.

Mr Pitt's Mid Year Fiscal and Economic Review released yesterday explained the general government sector debt would be $10.6 billion lower in 2017-18 because of the debt transfer but did not explain how that $1 billion would be divided.

But it did state international auditor KPMG's independent advice was that the debt transfers would enable the corporations to use their money in a more commercial way.

At the start of Mr Zussino's 13 years as CEO in 2000, the state and the GPC had a $90 million debt for equity trade.

At that time it was a "significant impost" when the port was handling 42 million tonnes per annum of trade compared to 115mtpa this year.

"The number of wharves has doubled since then and the $40 billion resource development and all the infrastructure has been provided by that government," Mr Zussino said

"When money is required to develop, money is provided. When RG Tanna Coal Terminal was expanded in 2004-2007 there was a significant equity injection into the port."

After speaking to the Treasury Department, Gladstone member Glenn Butcher was confident that would continue.

"Where appropriate... new capital will be made available for expansions," he said.

The review did show the construction of the Gladstone Hospital's Emergency Department would start in 2016.

Debt Action Plan

  • $1 billion debt to GPC NQBP and SunWater
  • Expected to reduce general government debt by $10.6 billion by 2012-17

Topics:  budget debt gladstone gladstone ports corporation government queensland government

Curtis Island flaring brings plume of black smoke

A previous incident of increased flaring on Curtis Island in November.

UNPLANNED shutdown brings black smoke to Curtis Island.

'Big relief': Emergency service boost with $150K fire station

START YOUR ENGINES: First officers Danny Devers, Errol Noye, Jason Polzin, Judy Ferrari, Colleen Yarrow, David Kretschmer, Jeremey Banks and Ron Barker from around the region hold up their keys to eight new Yellow Rural Fire Trucks.

"We've got it now and we won't give it up”

Car crashes into power pole in Gladstone

A driver has crashed their small Kia into a pole outside Hungry Jacks.

A CAR has crashed into a pole outside Hungry Jacks at Gladstone.

Local Partners

Check out some fashions from the Coast festival

FASHION: Ocean Zen range.

Images from the Sunshine Coast Fashion Festival show what's hot

Australian Survivor's magician Matt out of tricks

Australian Survivor contestant Matt Tarrant.

SHOW'S power couple looks unstoppable in race to the finish.

Top floor teams take out The Block's terrace week

Kim and Chris pictured on their winning outdoor terrace in a scene from The Block.

RIVALS Kim and Chris and Julia and Sasha tie in final week of work.

Bob Dylan slammed as 'arrogant' for Nobel silence

Nobel Prize winner Bob Dylan.

Singer the controversial winner of literature Nobel

Shannen Doherty reveals fear of dying in post on chemo

Actor Shannen Doherty shared this image of her lying in a hospital bed after a chemotherapy session.

Actor has been fighting cancer since 2015

Eddie Redmayne's stage fright on latest Harry Potter film

Actor Eddie Redmayne stars in Fantastic Beasts and Where to Find Them.

Actor felt like kid again when he got to film with a wand

Hinterland horse stud passed in for $8.25 million

UNREAL: This Maleny estate is incredible.

12-bedroom hinterland horse stud still available

Hit songwriter's Noosa mansion on market

SPECIAL PLACE: The Cintamani estate is going to tender, marketed by Tom Offermann Real Estate.

Is this Queensland's best property?

Kiwi siblings snap up Dotcom mansion for $32.5m

The new toy company owners of the Coatesville mansion want replace any controversy with positivity and fun. Photo / Barfoot and Thompson

The trio paid $32.5 million for the property in June

Push to sell homes that flooded Gladstone's market

Suburban housing in Glenvale, Toowoomba, Friday, October 17, 2014. Photo Kevin Farmer / The Chronicle

URGENT push to cash-up first home buyers investing in Gladstone.

New $200 million development will create 580 jobs

Cassie And Josh with baby Alfie and daughter Andee. They have bought at new Lennox Head development Epiq.

Majority of new positions will be given to Northern Rivers locals

Cherrabah's mega resort plans axed

PLANS for a massive development at Cherrabah have been scrapped.