Mid-year fiscal and economic review
The Chamber of Commerce and Industry Queensland has today welcomed the Mid-Year Fiscal and Economic Review.
CCIQ and our members are strongly committed to the State Government’s efforts to stabilise debt levels, return the budget to a fiscal balance by 2014-15 and regain Queensland’s AAA credit rating.
Good economic and fiscal management has the ability to significantly influence business and consumer confidence, spending and investment decisions, all of which have direct beneficial impacts upon the Queensland economy.
In addition, a balanced budget and manageable debt levels will enable the State Government to invest in infrastructure and further develop the state’s 4 pillar economy providing a long-term footing for growth.
In order to realize the goals the State Government has set, CCIQ recommends:
- Exploration of initiatives such as public private partnerships, outsourcing, and privatisation to reach and retain the AAA credit rating
- The use of asset sales but only when the embedded structural budget deficit is addressed post 2014-15
- Improving Commonwealth financial relations with the State
Australia’s Commonwealth State financial relations must also inevitably be addressed. Queensland’s share of Australia’s GST funding is increasingly out of kilter with what we as a State are reasonably entitled to.
Additionally we are also seeing specific purpose payments inequitably reduced.
This is of significant concern and appears borne more out of politics than investing in growth components of the National economy.
CCIQ General Manager of Advocacy, Nick Behrens said, "As a state we are finally starting to see the principle of living within our means actioned by a State Government. It is important that the numbers in today’s Mid-Year Fiscal and Economic Review are taken in the context of a long term plan to address the state of Queensland’s finances.
"Addressing Queensland’s budget deficit and debt levels is not a quick fix, but we are confident that the steps taken in the short term will address the key issues of an embedded structural deficit and restoration of fiscal integrity to the State’s balance sheet.
"Unless Queensland’s budget is meaningfully addressed now, spending on infrastructure, delivery of services and growth in our economy will be irreparably damaged.
"Failure to address the state of Queensland’s finances now will, in the long term, have a much greater negative impact on Queensland businesses and the state’s workforce."
For these reasons the transparency of the challenge and actioning of a fix as outlined in the Mid-year Fiscal and Economic Review is widely supported by the Queensland business community.