Infrastructure projects to remain
STATE infrastructure projects in Ipswich won't be cut to help pay Queensland's $5 billion flood bill.
Premier Anna Bligh and Treasurer Andrew Fraser yesterday handed down the Mid- Year Fiscal and Economic Review, which included the flood bill and the Government's recovery plan.
The State Government will contribute $1.25 billion and the Federal Government picking up the remaining $3.75 billion.
Queensland will have $3.5 billion in its recovery fund straight away thanks to the $1.5 billion raised from the sale of the Abbot Point Coal Terminal and $2 billion up front committed by Prime Minister Julia Gillard.
Earnings from the coal terminal sale were originally earmarked to pay government debt, but Ms Bligh said the funds had to be redirected to the state's top priority of disaster recovery.
Also announced yesterday was a delay to a major Brisbane rail project and voluntary public sector redundancy packages.
The state's damage bill includes $2.5 billion for destroyed roads, $2 billion for councils and $500 million for schools and buildings.
LNP Shadow Treasurer Tim Nicholls said the Mid Year Fiscal and Economic Review (MYFER) demonstrated how badly Premier Bligh and Labor had mismanaged the state's finances.
“While Andrew Fraser is keen to blame everything, including the delayed release of the MYFER, on the floods, the figures released today show Queensland's budget was on the rocks well before the floods hit in the past few weeks,” Mr Nicholls said.
Other new measures announced yesterday include a $10 million, joint federal tourism marketing campaign, a $3 million boost for businesses, and $24.5 million from the sports budget to help sporting groups rebuild