The asset sales roadshow and an $80b question

The government, with Treasurer Tim Nicholls at the forefront, has presented the state with its “unpalatable” choice menu to solve the state's debt issues; raise taxes, cut services, sell assets, which in the way of the political lexicon has become “recycle capital”, or a combination of all three.

Speaking at invitation-only meetings across the state, Mr Nicholls is presenting the government's position on what it calls the “$80 billion black cloud of Labor debt”, reiterating the Peter Costello led commission of audit recommendation to pay it down by $25 billion as soon as possible.

Earmarked for potential sale/long-term lease is the Mt Isa rail line, the Townsville port, the Gladstone Port Corporation, which could include the Bundaberg port, the industrial assets of Sunwater and the electricity generating companies, Stanwell and CS Energy. “Opportunities” for private investment in Powerlink, Ergon and Energex is also being investigated, but the government would retain control.

At the fifth and sixth Treasurer's road show – the short version of the “asset sales conversation listening tour”, Mr Nicholls visited Gladstone and Bundaberg, two Queensland towns which would be directly impacted by a decision to privatise.

Gladstone, described by Mr Nicholls as a “muscle town” considers its port to be the “heart” of its city.

Its representatives, there at Mr Nicholl's behest, did not smile and nod or wrap the port in a bow and hand it to him. Instead, as respectfully as they could, the business, community and industry representatives and local leaders, pleaded with him to find another way.

Gladstone, they said, had already sacrificed enough. It pumped money into the economy for little investment return – just look at the hospital, they pleaded. “And now you want to take our port?” they questioned.

Mr Nicholls, ever careful to preface each mention of sales with “if we go down this route”, listened.

And then hit them with the trump card.

“What's your solution?”

In Gladstone, they tried. Putting a toll on the border, said only in half jest, was put forward. More tolls on the highways to pay for future roads, was also thrown on the table.

But having the government just “hold steady” seemed to them, the most viable solution. “Explain to the public that you just can't do anything for the next few years – short term pain for long term gain,” one representative said.

The Treasurer described the holding pattern approach as “just holding our heads above water”. He said it is what the government is doing, “but it won't get us over the line”. The population is growing and aging, Mr Nicholls said. Just doing nothing more than it is doing now, won't be enough.

Still, those in the room remained hopeful it would be considered as an option.

In Bundaberg, the concerns were reversed. Electricity prices were the main issue brought up, in terms of addressing asset sales.

But the town's representatives wanted to talk about what Bundaberg needed. More support from the federal government. Roads to support it as a tourist destination. Better infrastructure. Changes to export duties. Bundaberg is on the cusp of greatness, they said. It just needed a chance.

But those in the room weren't overly comfortable with selling assets to create that chance.

To which the treasurer again replied, “what's your solution?”.

Each response boiled down to “I don't know”.

The government has put a time frame on paying down the debt. Its critics question the government's immediacy, but they are not in charge.

With the commission of audit in one hand and the state's books in the other, the government is posing the questions, to which it has presented the solutions. It says no one has been adequately presented something different. Come mid-year, everyone will know what answer the government has chosen. Come election day, the public will give theirs.