Bligh hands over billions without a fight

The Bligh Labor Government is throwing in the towel and giving up control of Queensland’s multi-billion dollar mining royalties before the Henry Tax Review has even been released, the State Opposition said today.

Opposition and LNP Leader John-Paul Langbroek said Premier Anna Bligh and Treasurer Andrew Fraser had previously voiced opposition to a Federal takeover of royalties, but had now changed their tune.

“This is another policy u-turn from Bligh and Labor, who also claimed they weren’t going to introduce a fuel tax and they weren’t going to privatise state assets,” he said.

LNP Shadow Treasurer Tim Nicholls said it was unbelievable that Anna Bligh and Andrew Fraser were now prepared to give up mining royalties – one of the state’s biggest revenue streams – without a fight.

“Andrew Fraser and Anna Bligh seem to be happy to be a branch office of Federal Labor with everything being run from Canberra,” he said.

“They are giving up control of billions of Queensland dollars without so much as a whimper.

“It’s a damning admission from Bligh and Labor that they’ve sent the state broke and need their mates in Canberra to bail them out.”

 Mr Langbroek said Federal intervention to fix up State failures was becoming all too common.

 “The State Labor Government has failed to manage the economy and its Budget properly so the Federal Labor Government is stepping in,” Mr Langbroek said.

“Similarly, the State Labor Government has failed to manage hospitals properly so the Federal Labor Government is looking to step in.

“But shifting responsibility from one Labor Government to another is not the answer to fixing problems with the Budget and hospitals. The answer lies with changing the Government.

“Electing an LNP Government is the only way to get Queensland heading in the right direction again.”

 FAST FACTS:

 The shifting stance of the Bligh Labor Government on a royalty takeover

•  Queensland Treasurer Andrew Fraser said he was resigned to losing control. “I think there is every chance that the royalty regime will transfer over to a resource rent tax and I think there are actually good economic arguments for doing that,” he said.  Australian Financial Review, 2 March 2010.
• Queensland and Western Australian governments remain opposed to the idea. “No one can mount a case that state based royalties don’t already benefit the nation as a whole,” (Treasurer Andrew) Fraser said.  The Australian, 3 February 2010.
• “We would be very sceptical about any move to move royalties out of the state.” – Anna Bligh, Australian Financial Review, 5 November 2009.