Newspaper article The Morning Bulletin (Rockhampton, Australia)

Millions Spend on Selling a Flying Pig

Newspaper article The Morning Bulletin (Rockhampton, Australia)

Millions Spend on Selling a Flying Pig

Article excerpt

THE Queensland Premier, Mr Newman, is betting all of his political future in a high stakes game of smoke and mirrors as well as an expectation that he will only have to sell asset leasing to the least informed sectors of the community.

What Mr Newman can expect however is a rising tide of voices asking for the business case for asset sales/leasing to be publicly released?

The public are slowly becoming aware that if you give away $2 billion a year of income to reduce $2 billion worth of interest on state debt that you end up in a zero point gain except for the negative aspect of losing our communal equity in state-owned assets.

The money that we are supposed to be saving will no longer exist to be saved.

The clouding of the business case by using $20-odd million worth of our money to advertise for support to the leasing plan is again focusing on Grade 2 math that points out if you reduce debt you will reduce interest and then that money can be spent on schools, roads and hospitals as well as be thrown to the regions which lost the assets, this is on the same page as flying pigs.

If you want to see a whole herd of flying pigs then listen to the advertising for the lease option today where the lie is blatant when they say we will get the asset back at the end of the lease.

The business case and plan for selling assets must be released now, it must point out not only how much debt can be repaid and how much interest will be saved but also lost revenues, lease maintenance costs, liability for maintaining assets such as ports and power stations and at the end clean up costs of abandoned assets at the end of leases.

It is also critical for the Newman Brisbane government to detail why an investor will purchase these leases when our leaders are adamant that they are not viable for us to retain, just like QR (Aurizon) apparently.

The other business case is that we keep our assets and use the revenues from them to service debt and that we also seek efficiency in government to reduce costs. According to Mr Newman a minimum of $4 billion a year of wasted money for duplication of state and federal systems is up for grabs (that would pay all of the interest on our state debt).

Mr Newman, even I will vote for you if you pursue that instead of selling the family jewels just because Costello said you should.

When we lose the income from state assets we will most likely be worse off in a couple of years then we are now because this or the next government will borrow more anyway.

This is already the case in South Australia and Victoria.

The $20 to $25 million spent by the LNP to promote asset sales/leasing could have been used to support 500 small businesses given $50,000 grants to boost growth, retire debt, hire more staff and lift earnings which could lift taxable incomes and be flowing back to the government over time via higher returns on taxes and fees. …

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