Queensland budget leaves builders looking
The Queensland Parliament has passed the Palaszczuk Government's $49.9 billion "real Labor budget", but business groups want more big projects.
The budget has been met with mild agreement from the state's Chamber of Commerce and Minerals Council, which say it is an agreeable set of measures in business terms but are concerned that it does not do enough to match Federal measures that would unlock further economic growth.
"This is a budget that seeks to avoid conflict with the business community... however, this is not a budget that will pay down debt," said Chamber of Commerce and Industry Queensland advocacy director Nick Behrens.
"Ultimately it will be the credit rating agencies that will look to public sector debt to determine whether or not we receive a positive adjustment," Behrens told the ABC.
Queensland Treasurer Curtis Pitt said the ratings agencies were on side, with Standard and Poor's and Moody's recognising the steps taken to reduce debt and reaffirming Queensland would retain its AA+ credit rating.
"S and P commented and I quote: 'that the budget announcement reveals an improving fiscal position with surpluses over the forward estimates'," Pitt told the House.
"Moody's is supportive of the state's fiscal principles noting that they - and I quote: 'should help minimise fiscal deficits and which would lead to an easing of above average debt burden'."
One of the more immediate effects of the plan will be a a five-year suspension of investment in defined benefit employer contributions for public servants.
Queensland's long service leave arrangements will be changed as well.
Leave will now be paid when it arises, to save the Government from setting money aside for future claims.
But Michael Roache from the Queensland Resources Council said the Government needed more large infrastructure works to keep employment in construction and mining ticking over.
"We know the Government has an infrastructure plan that it wants to deliver early in 2016," he said.
"We do want to hear more though about their plans for infrastructure ... in areas like the Galilee Basin.
"So we're hoping there are further announcements on infrastructure over the course of 2015."
The Australian Industry Group welcomed the $180 million Advance Queensland policy would help diversify the economy and build a knowledge-based economy in Queensland.
But the group lamented the lack of major infrastructure funding.
"We do appreciate it is a challenging time for government but we believe there needs to be some sort of medium-term infrastructure investment around major projects in Queensland," AIG Queensland director Jemina Dunn told reporters.
"We're seeing a strong lack of demand and businesses have been challenged for quite a long period now."
Master Builders Australia deputy executive director Paul Bidwell said the Government appeared not to have broken any promises.
"We're very keen to see investment in infrastructure for the commercial builders," he said.
"And there's half a billion dollars worth of maintenance across schools and hospitals in regional Queensland.
"Half a billion dollars spread across the state is not an enormous amount of money, but it's better than what we expected."