Balancing act key to Queensland’s infrastructure investment Swift action has characterised the Newman Government’s first six months in power, but with a constrained balance sheet, the challenges remain immense, writes Domini Stuart.
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Five days before his victory in this year’s Queensland election, Liberal National Party (LNP) Leader Campbell Newman released a blueprint for all that his government hoped to achieve in its first 100 days in office. ‘If elected this Saturday, we’ll immediately start our plan to grow a four-pillar economy, lower the cost of living by cutting waste, deliver better infrastructure and better planning, revitalise front-line services for families and restore accountability in government,’ he said. Months later, the plans for the state’s infrastructure sector appear to be on track. Scott Emerson, Minister for Transport and Main Roads, said it’s important that the state delivers on its promised reform agenda. ‘It’s essential for the state’s future that we remain focused on delivering our agenda for Queenslanders who voted for change,’ he says. ‘My priority is to ensure we deliver on our election promises.’
The state of Queensland’s finances Queensland’s government faces a unique and twofold demand for infrastructure. On one hand, it needs to provide for a decentralised and rapidly growing population. On the other, it must service and support a flourishing natural resources sector. As a result, Queensland has typically needed to allocate a more substantial share of state resources to capital investment than other states. Total government capital expenditure has increased from around $4.4 billion in 2000–01 to an estimated $12.3 billion in 2011–12. This includes investments of $3.5 billion in upgrading and maintaining electricity infrastructure, and $1.9 billion in the construction and redevelopment of hospitals. An additional $5.4 billion was spent on transport infrastructure, including work on reconstructing over 9000 kilometres of road damaged by the recent spate of natural disasters, including flooding and cyclones. With the state’s debt expected to reach $64 billion before the end of the 2011–12 financial year, a review of the state’s finances was high on the agenda for Newman and his government. A Commission of Audit was set up to report on the current and forecast financial position, and to make recommendations for strengthening Queensland’s economy, with the goal of restoring its financial position and ensuring value for money in the delivery of frontline services. Headed by former Federal Treasurer Peter Costello, the Commission released its interim report in June, with
Volume 3 Number 1
11/9/12 11:16 AM
