No plan means more pain for Queenslanders

Annastacia Palaszczuk’s failure to deliver an economic plan or State Budget has left Queensland facing years of mass unemployment and higher taxes, the LNP said today.

LNP Leader Deb Frecklington said the economic update released today would alarm employers and workers across Queensland.

“Labor had no economic plan before coronavirus and they have no economic plan now,” Ms Frecklington said.

“Instead of a 1000-page Budget, all Labor could deliver was a 41-page glossy brochure.

“A record 234,000 Queenslanders are out of work because Labor can’t manage the economy.

“Labor failed to rule out new taxes, failed to create new jobs and failed to outline an economic plan.

“Labor’s own projections show another 73,000 Queenslanders are set to lose their job.

“It is clear Labor isn’t working.

“Only an LNP Government will provide the economic leadership that Queensland is desperate for.”

Ms Frecklington said it was concerning that the Palaszczuk Labor Government had not ruled out more tax increases after the state election.

“Labor has slugged Queenslanders with nine new taxes in this term of government and they won’t rule out more,” Ms Frecklington said.

“No wonder Labor wanted to cancel the State Budget.

“An LNP Government will produce a full Budget in 100 days and we guarantee there will no new taxes.”

LNP Shadow Treasurer Tim Mander said Labor’s failure to deliver an economic plan would worsen the pain for Queensland workers and employers.

“Our economy is hurting like never before, but Labor has no plan to drag Queensland’s economy out of recession,” Mr Mander said

“Only the LNP has a plan to stimulate the economy, create a decade of secure jobs and drag Queensland out of this recession.

“The LNP will build new infrastructure to create jobs, build the drought-busting New Bradfield Scheme and build dams to improve food and water security.

“An LNP Government will also give Queenslanders a no-new-tax guarantee to give businesses the confidence to invest and create jobs.

“We will fully fund our promises and deliver on our fiscal principles.

“An LNP Government will get Queensland working again.”

BACKGROUND INFORMATION:

• Debt – Debt has blown out by over $18 billion in a single year to reach nearly $102 billion at the end of this financial year.
• Taxes – Since the last election, Labor have introduced nine new or increased taxes ripping $4 billion from the state’s economy. Today they refused to rule out more taxes if re-elected.
• Public Servants – Labor is spending an extra $7.7 billion a year on the government’s wage bill as key frontline services across education, health and police go backwards. The LNP has ruled out any forced redundancies.
• Economic growth – Economic growth was negative last year at -0.25%, forecast economic growth has been revised down by 2.5% to be an anaemic 0.25% in this financial year.
• Unemployment – Labor is forecasting a further 72,000 Queenslanders will lose their jobs by the end of this financial year, on top of the record 234,00 current unemployed Queenslanders.
• Population – Queensland’s population growth rate is forecast to be just 0.75% this financial year, which is barely more than half of what it was forecast to be at the end of last year (1.75%)
• Royalties – Labor have made a $1.4 billion royalty blunder with royalties falling to $3.1 billion – even with Labor’s new 25% gas tax.

Labor’s Broken Fiscal Principles

1. Reduce general government debt to revenue – the debt to revenue ratio has exploded from 63% in MYFER to be 108% this financial year.
2. Target net operating surpluses – Labor’s $8.1 billion budget deficit will be the largest deficit in over a decade and potentially the largest in Queensland’s history.
3. Consistent capital program – Labor cut over half a billion ($513 million) from the budgeted 2019-20 capital program, cutting infrastructure projects at the expense of Queensland jobs.
4. Maintain competitive taxation – Labor have introduced 9 new or increased taxes, ripping $4 billion from Queensland’s economy.
5. Fully funded superannuation and WorkCover – Labor have raided over $5 billion from the public servant superannuation scheme and $3.4 billion from long service leave.
6. Public servant growth – While population growth is forecast to increase at 1.25%, public sector growth is 2.2%.