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Hansard 27 Nov 1997 27 Nov 1997 Ministerial Statement 4895 THURSDAY, 27 NOVEMBER 1997 properties; and (c) not permit the project to proceed without full community support. Petitions received. Mr SPEAKER (Hon. N. J. Turner, Nicklin) read prayers and took the chair at 9.30 a.m. SALARIES AND ALLOWANCES TRIBUNAL REPORT Hon. D. E. BEANLAND (Indooroopilly— PETITIONS Attorney-General and Minister for Justice) The Clerk announced the receipt of the (9.33 a.m.): On 19 August 1997 I tabled the following petitions— 17th report of the Salaries and Allowances Tribunal along with a copy of advice from the Solicitor-General relating to a dissenting report Political Advertising from Sir James Killen. In response to a From Mr Beattie (23 petitioners) request from Sir James, I now table a copy of requesting the House to immediately cease his letter to me on 10 September 1997 in politically motivated, taxpayer-funded which he responds to the Solicitor-General's advertising being used solely to promote the advice. I table also further advice dated 24 National and Liberal Parties and request November 1997 from the Solicitor-General on instead that the money go toward (a) this matter. improving funding for TAFE to give young people an opportunity to gain important skills training; (b) increasing resources to improve PAPER the police presence in Queensland towns and The following paper was laid on the communities; and (c) improving health services table— to reduce accident and emergency waiting Minister for Emergency Services and Minister times and ballooning waiting lists in our public for Sport (Mr Veivers)— hospitals. Response to Public Accounts Committee Report No. 41—Fire Levies. Inner City Rail Loop Service From Mr Beattie (4 petitioners) requesting MINISTERIAL STATEMENT the House to agree in principle to fund the Asian Financial Crisis inner city rail loop service connecting the central business district of the city to the Hon. J. M. SHELDON (Caloundra— Valley, Bowen Hills, RNA Showgrounds and Deputy Premier, Treasurer and Minister for RBH and via Normanby Terrace to the CBD by The Arts) (9.35 a.m.), by leave: An analysis of the year 2000 and instruct Queensland Rail the potential impact of the recent Asian accordingly. financial crisis on the Queensland economy suggests that it will have only a small impact on Queensland during 1997-98. The financial New Prison, Warwick Shire market turmoil currently sweeping Asia is From Mr Springborg (81 petitioners) largely a response to underlying structural requesting the House to recognise the problems in some Asian economies. The opposition of the residents of Warwick Shire to Thailand, Indonesian and Malaysian financial the proposed SEQ 2 medium to high security markets have been the hardest hit by the prison and remove Warwick Shire from the list crisis, with contagion effects on other Asian of possible shires for the new prison. markets, most notably Hong Kong, Singapore, Korea and the Philippines. Growth in the Thailand economy is Community Hall, Albany Hills State School expected to be the hardest hit by the financial From Mr Welford (219 petitioners) crisis. Economic growth in Malaysia, requesting the House to (a) recognise the Indonesia, the Philippines and Korea is also rights of local residents in the decision-making expected to slow during 1998, but to a much process of the intended construction of a large lesser extent than in Thailand. The effect on community hall on Education Queensland other Asian economies is expected to be property at the Albany Hills State School; (b) significantly less than in any of the specific ensure that proper community consultation is economies affected. For the Asian region as a undertaken with regard to the environmental whole, growth during 1998 is expected to be impact on adjoining and local residential around 1.5 percentage points lower than 4896 Ministerial Statement 27 Nov 1997 average in previous years, before would be unchanged from the first four reaccelerating back towards average growth months of 1997, or around US78c. Since the rates through 1999 and beyond. Budget the exchange rate has depreciated The recent turmoil in Japan is largely and now stands at around US70c. This 10% unrelated to the financial crisis in South East depreciation of the Australian dollar against Asia and highlights the structural problems the US dollar will provide a significant boost to that have plagued this sector in Japan since the competitiveness of Queensland exports in the collapse of assets values in Japan in the other markets. early 1990s. However, I am confident that the In summary, the majority of Queensland measures announced by the Bank of Japan overseas merchandise export destinations are will maintain the liquidity of the banking sector not affected by the current crisis and, in Japan and lessen the risk to Queensland therefore, in aggregate the crisis is unlikely to exporters. produce any substantial decline in The recent events in South Korea relate Queensland's total merchandise exports this more to the recent Asian financial crisis and year or in coming years. Secondly, foreign have increased the risks to Queensland's investment data shows that foreign investment export performance. However, the impending in Australia by those countries affected by the IMF package is likely to be received favourably current financial crisis is minimal. Those by the financial markets and restore countries principally affected constituted only confidence in the South Korean economy in 1% of foreign investment in Australia in 1995- the medium term. The effects of the crisis are 96—and this is the latest data—and those expected to be short term for all Asian possibly affected constituted a further 5.1%. It economies with perhaps the exception of is unlikely, therefore, that the events in Asia Thailand, where the impact may continue into will impact significantly on Asian foreign the next century. investment in Queensland. There are three major possible impacts of Finally, there are likely to be few adverse the Asian financial market crisis on the effects of the current Asian financial crisis on Queensland economy. The first is an impact Queensland tourist arrivals. Those countries on Queensland merchandise exports. Since principally affected by the current financial the mid 1980s the focus of Queensland's crisis constituted only 5.8% of short-term export orientation has shifted away from overseas visitor arrivals to Queensland in the reliance on the United States and Europe year ended June 1997. Those countries toward the Asian economies. A similar shift in possibly affected constituted around 16.8% of export orientation has occurred nationally. The total overseas visitor arrivals during the same major country affected by the current financial period. Latest figures for October show a market crisis, Thailand, constituted only 0.9% sharp downturn in visitor numbers from of total Queensland overseas merchandise Indonesia and Thailand and some downturn in exports in 1996-97, while those countries Asian visitation generally. However, total principally affected constitute, in total, 10.6%. inbound tourists to Australia still rose 5.3% in If consensus forecasts for 1998 economic the month, with strong rises in visitors from the growth in these countries are realised, the UK, Malaysia and Singapore. implied effect on Queensland overseas While Asian exchange rates have merchandise exports to these countries would declined recently, there are two offsetting be only in the vicinity of a 1.5% to 2% factors which will support Queensland tourism reduction. exports. Firstly, while not weakening as much When I prepared the May Budget as Asian exchange rates, the Australian dollar forecast, it was assumed that economic has fallen by 10% since May this year, making growth of Queensland's major trading partners Australia a more competitive tourism would be around 4.0%. If we incorporate the destination. Secondly, Asian tourist latest consensus forecast, the growth of our destinations and Queensland tourist trading partners has been revised down only attractions are not directly substitutable. There 0.3 percentage points to 3.7%. This in part are aspects of Queensland tourist destinations reflects stronger than expected results for our that are unique—the Great Barrier Reef for North American trading partners. one. It should also be noted that the relatively Queensland has a relatively minimal weaker Australian dollar is likely to largely exposure to those countries most adversely offset any reduction in demand from these affected by the crisis. As a result, there is likely Asian markets. When the Budget was framed to be very little impact on the Queensland in May it was assumed that the exchange rate economy both in terms of exports to these 27 Nov 1997 Ministerial Statement 4897 countries and direct investment by those stay in residential care and receive respite countries into Queensland. Therefore, it would care. appear that economic growth for the The State Government is continuing to Queensland economy in 1997-98 will not be respond to the issue of unmet need. Improved affected significantly by the recent funding and positive, well-planned initiatives developments in Asian financial markets. are helping to ensure quality lifestyles for all Queenslanders, particularly those with MINISTERIAL STATEMENT disabilities. Unmet Needs Hon. K. R. LINGARD (Beaudesert— MINISTERIAL STATEMENT Minister for Families, Youth and Community Community Policing and Crime Prevention Care) (9.40 a.m.), by leave: I wish to remind members of this House that next Wednesday, Hon. T. R. COOPER (Crows Nest— 3 December, is International Day of the Minister for Police and Corrective Services and Disabled. The issue of unmet need for people Minister for Racing) (9.43 a.m.), by leave: The with disabilities affects every State and finishing touches of the State Government's Territory in Australia. In Queensland it is radical new blueprint for community policing estimated that there are more than half a and crime prevention, Community Policing million people with disabilities.
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