Queensland Shadow Treasurer Tim Nicholls
QTC Is Biggest Loser
Victor P Taffa
Queensland Shadow Treasurer Tim Nicholls has today highlighted the fact that Queensland Treasury Corporation (QTC) now heads BRW’s biggest corporate loser list with $4.5953 Billion in the red which underlines the full impact of the Bligh Government’s shift of assets set-aside to meet future superannuation liabilities over to QTC.
Shadow Treasurer Tim Nicholls said the politically expedient move was aimed at removing the volatility from the Queensland Budget bottom-line.
“However, while making the Government look better by artificially reducing the budget deficit, this move casts a negative light over Queensland’s central borrower, the Queensland Treasury Corporation.” Mr. Nicholls said.
QTC borrows centrally for Queensland Government departments, statutory authorities like SunWater and all Queensland local councils. By concentrating the borrowings of more than one hundred bodies it should be able to access funds at a cheaper rate which saves taxpayers.”
“The shift of assets was described by the Government as a simple accounting entry, but the reality is that the losses see the balance sheet of QTC in negative-equity with their liabilities outweighing their assets and that’s not a good look when you have to fund Labor’s massive $85 Billion debt.” Mr. Nicholls said.
“This may well mean higher borrowing costs for Queensland and more interest which will have to be funded by higher taxes or by cutting services.”
“The reality is that the $85 Billion debt Anna Bligh and her Labor Government have accrued puts at risk the future prosperity of Queensland.”
It would seem that many Government’s throughout Australia are blaming the worldwide economic meltdown for their poor financial situations however if the financial collapses of the State Banks of Victoria and South Australia in the 1990’s are worth recalling then the $85 Billion debt that has accumulated in Queensland has as much to do with the worldwide economic meltdown as outright political and administrative incompetence.