QUEENSLAND Labor’s proposal to use asset revenue to pay for new infrastructure and reduce debt is ‘‘economically irresponsible’’ because it is unsustainable, the state Treasurer says.
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Opposition treasury spokesman Curtis Pitt argues the party’s economic plan will help pay off $5.4 billion in debt across six years, if Labor wins government at the January 31 Queensland election.
The LNP’s plan to sell or lease government-owned assets was short-sighted, while a 15 per cent loading promised by the federal government on every asset sale wasn’t enough, he said.
‘‘We think that any incentive payments from the Commonwealth, or any short-term sugar hits we will see in the Queensland coffers as a result of asset sales, will be far drowned out by the $120 billion we will [gain] in revenue over the next 50 years,’’ Mr Pitt said.
But Treasurer Tim Nicholls said revenue projections had fallen due to sagging commodity prices and environmental factors such as drought.
Under Labor, there wouldn’t be enough money to pay for everything it proposed, he said.
‘‘There is no magic pudding: you can either sell or lease assets, you can either increase taxes massively or you can drastically reduce services,’’ Mr Nicholls told ABC Radio.
He also argued Labor was effectively double-dipping by promising to reduce debt or pay for big ticket items - such as sports stadiums - with money already factored into the government’s most recent budget.
‘‘There is a $1.3 billion black hole because they’re attempting to spend the dividends twice,’’ Mr Nicholls said.
Mr Nicholls said the proposal was ‘‘economically irresponsible’’.
