Statement by Chris Rodwell
Ai Group Queensland Director

"The Queensland Budget delivered today shows the State's economy and finances have improved solidly, giving Queensland a platform for stronger growth over the next few years," Ai Group Queensland Director Chris Rodwell said today.

"The growth forecast for 2010-11 of 3.75% is encouraging. It is above the national forecast of 3.25% growth, with longer-term state growth likely to be bolstered by significant decisions in the areas of skills, infrastructure and innovation. This, together with the Queensland Government’s program of asset sales and recovering revenues, should put the State’s finances and the economy on a more even footing.

"A remaining black spot in the Government’s response is its limited approach to containing recurrent spending, such as public sector wages which will grow at 5.4% over the next financial year. A more concerted effort would allow more scope to give cost relief to Queensland businesses. Increases in energy costs and workers compensation premiums, as well as the introduction of the waste levy, deserve a more focused policy response.

"A number of the policy decisions announced today directly respond to Ai Group recommendations, especially in the area of skills and innovation.

"The skills reform, involving the creation of the Skills Commission, is a watershed for the Queensland economy. It will allow industry to steer a significant portion of funding for skills to ensure investment better aligns with economic needs now, and into the future. It is a critical step forward in the reform agenda and Ai Group looks forward to playing a major role in this initiative.
"Importantly, the Bligh Government has also extended the 125% tax rebate for apprentice-employing businesses for another year. This will make an important contribution to the State's effort to manage skills shortages.

"The Queensland Government has also responded to Ai Group’s proposal for a more experimental approach to stimulating innovation across industry. The $2.5 million pilot innovation vouchers program, although modest in size, should substantially improve collaboration between the research sector and the business community.

"The continued strong infrastructure spend of $17.1 billion is unexpected, but encouraging. It will help industry deal with the patchy recovery in private investment in this sector. This has been the centrepiece of the Bligh Government’s response to the immediate economic issues the State has been confronting. It will underpin future economic growth and alleviate the pressures of population growth," Mr Rodwell said.


Further comment:
Chris Rodwell, Ai Group: 07 3244 1777