By One Nation Member For Mirani Stephen Andrew
Well, centuries of “expert opinion” on sound economic management, were tossed overboard this week, as Queensland’s Treasurer, Cameron Dick announced that - contrary to previously accepted wisdom on the subject - Debt is no longer a dirty word.
Which is lucky really, because Queensland is absolutely drowning in the stuff!
Budget figures show Qld’s total debt will jump from an estimated $95.8 bn this year to $106.3bn in 2021-22, before hitting $127.3bn in 2024-25.
The interest bill on all this debt will reach $3.4 billion a year by 2024 – provided RBA doesn’t lift its interest rate a smidgeon from its current low of 0.1%.
A risky assumption you might have thought, but there it is.
Of course, you really have to hunt around in the budget documents to find these figures, but they are all there – buried away at the back.
Nowadays, the Treasurer prefers to talk in terms of NET debt and then, only for the General Government Sector.
$25 billion, sounds so much more manageable – affordable even – as long as you don’t look too closely.
All this debt is being matched by a ‘perfect storm' of rapidly sinking Government revenues, from GST takings to State Royalties, especially from the steep decline in the State’s coal exports.
Oil revenues also fell and there was a sharp drop in LNG royalties as well.
Overall, QLD exports fell 28.4% between April 2020 and April 2021, with the largest falls seen being for ‘mineral fuels’ and ‘coal’ - both of which fell a whopping 38.1% from April 2020.
Pretty much the only thing that seems to be driving “growth” in Queensland right now, are massive injections of public debt and a flood of migration from other states – that’s it!
None of it has anything to do with real growth or productivity happening in the real economy.
Which brings me to the big losers in this year’s Budget - Mining, Agriculture, Small Business and Tourism.
You know, the industries that Queensland relies on – the ones that hold the key to lifting the State out of its debt quagmire and putting it back on the real road to recovery.
It seems so obvious, but I will say it again, the Government should have used all that debt to support and safeguard these industries - the backbone of our economy, and the ones who have always stood up for Queensland in its hour of need and would again, given half a chance.