Economist: Queensland 'Strong Choices' plan to cost $9b
THE LNP's Strong Choices plan will have an "adverse impact" on the state's fiscal position and cost Queensland $9 billion by 2020, gifting only a temporary sugar hit, economist John Quiggin said, labelling it "misleading".
A professor of economics at the University of Queensland and ARC Laureate Fellow, Professor Quiggin reviewed the government's "final plan" regarding Strong Choices and said it did nothing to convince him that privatisation of the state's assets would be good for Queensland.
He said his review concluded $18 billion of the $25 billion set aside for debt repayments from the expected $37 billion raised through the plan would go towards paying off debt from the government-owned corporations, which was currently being serviced by the earnings of those enterprises.
"So only $7 billion comes off general government debt," he said.
"This has been a problem of the government's whole approach. Rather than looking at general government debt, which has to be serviced out of tax revenue, they have been lumping that in with the debt held by the government-owned corporations, which is serviced out of their earnings.