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Hansard 30 May 1991 Legislative Assembly 8144 30 May 1991 NOTE: There could be differences between this document and the official printed Hansard, Vol. 318 THURSDAY, 30 MAY 1991 Mr SPEAKER (Hon. J. Fouras, Ashgrove) read prayers and took the chair at 10 a.m. PAPERS The following papers were laid on the table— Orders in Council under— Employment, Vocational Education and Training Act 1988-1990 Rural Training Schools Act 1965-1990 and the Statutory Bodies Financial Arrangements Act 1982-1989 Supreme Court Act of 1921 Industrial Development Act 1963-1987 Regulations under the Workplace Health and Safety Act 1989-1990 By-laws under the Chiropractors and Osteopaths Act 1979-1990 Proclamation under the Queensland Small Business Corporation Act 1990. MINISTERIAL STATEMENT Business Investment in Queensland Hon. K. E. De LACY (Cairns—Treasurer) (10.03 a.m.), by leave: The purpose of my statement is to set the record straight on the state of business investment in Queensland. The latest Queensland Economic Review clearly demonstrates that Queensland's share of business investment in Australia has grown steadily over the past year or so and the investment outlook is likely to be less recessed in Queensland than in other States. Treasury figures show that Queensland's share of business investment next year should rise to over 14 per cent, up from 13 per cent at the beginning of 1990. Private sector analysts confirm this more optimistic picture for Queensland. For example, Rider Hunt, construction industry consultants, last month described Queensland as the "investment State of the 1990s", saying we "will lead Australia out of this recession". Rider Hunt quotes this State's excellent financial management as one of the reasons for that. I acknowledge that business confidence remains fragile, but the deliberate disinformation being spread by members of the Opposition can serve no good. The people of Queensland should examine their motives. It seems they are endeavouring to talk the economy down because they see some short-term political benefits to themselves in so doing. In a statement issued last week, the Opposition Leader listed examples of the Goss Government's supposed inaction. Mr Borbidge interjected. Mr SPEAKER: Order! A ministerial statement is being made and I ask the member for Surfers Paradise to cease interjecting. Mr De LACY: These examples are the Yabulu nickel refinery, the Collinsville coalmine, the Comalco smelter, and the Mount Isa gas pipeline. Mr Stoneman: What have you done about it? Mr De LACY: If the honourable member just waits, I will address that. Of course, the Opposition Leader enjoys a luxury that is not available to the Government—he does Legislative Assembly 8145 30 May 1991 not have to be concerned about the state of negotiations or the confidentiality and sensitivity that obviously attaches to a good deal of the work involved in securing a major project. Within those sorts of constraints, I will address some of the issues raised by the Opposition. Yabulu Given the Opposition Leader's comments, it may come as a surprise to honourable members to learn that the Yabulu nickel refinery at Townsville is still operating. More than that, it is operating at full capacity, making a profit, and, together with the mine at Greenvale, is providing over 900 people with full employment. The transition to imported ore is already well under way. Even so, the Government acknowledges that better port facilities are required to enable increased imports in the future. The Townsville Port Authority has commissioned consultants to report on the best way to achieve that objective. Mr Borbidge interjected. Mr SPEAKER: Order! I warn the member for Surfers Paradise under Standing Order 123A. Mr De LACY: Detailed technical and commercial negotiations between the company, the port authority, and the Commonwealth and State Governments are continuing. Collinsville If we had taken advice from the National and Liberal Parties, we would have relinquished our rail freight contract with MIM, set up a queue a mile long of other companies seeking similar special concessions, seriously eroded the State's revenue base, and still not have solved MIM's problem at Collinsville. Recent announcements have made it quite clear that the main issue is between MIM and its bankers. In that context, the commercial sensitivities should be obvious—even to the Opposition—and the Government is not about to blunder into a public three-way negotiation. However, as with Yabulu, the mine at Collinsville is operating, the work force is still employed, and the Queensland Government stands ready to play its part, within the bounds of economic responsibility, to keep it that way. Export coal freight rates We are getting plenty of advice from the Opposition about the need to reduce export coal rail freight rates, replacing them, I presume, with higher taxes or reduced services for ordinary Queenslanders. What short memories the Opposition has. Given its history, the rail freight policy should be a bipartisan one. However, let me say this: despite all the cries of anguish about rail freight rates, no Queensland export mine closed throughout the coal depression of the mid 1980s. Indeed, the flexibility of the system is shown by the fact that, since 1984, rail freight concessions provided to the Queensland industry have cost over $600m. Despite the unfavourable market and economy, two new mines—Gordonstone and Jellinbah East—were committed in Queensland last year, and last week's Queensland Economic Review shows that Queensland's coal output in the latest half-year grew at an annual rate of 7.9 per cent. This compares with a decrease of 1.3 per cent for the rest of Australia. With more new mines in close prospect, Queensland's lead in coal production is expected to continue to increase--without us having to forfeit our right to a fair return. Gladstone Power Station The Opposition claims that the Goss Government has "blown" Comalco's expansion plans for aluminium smelting by not consummating the sale of the Gladstone Power Station. To be frank, I must say that the bottom line for Comalco is the cost and security of supply of power. For the Government, the mirror image is the case—the sale price of the power, or the asset itself. It is not an ideological matter for either side, but a hard commercial deal. Comalco understands this, and our relations with it are strong. Legislative Assembly 8146 30 May 1991 Let me provide the Leader of the Opposition with a quick economics lesson. If we sell the power station for less than it is worth and build replacement generation capacity at today's higher costs, that will mean higher electricity prices for both ordinary Queensland consumers and for Queensland industry. Those higher electricity costs will, in turn, erode our competitive position in this State. In the long term, that will cost us jobs, not create them. Mount Isa gas pipeline The State Government has made a renewed offer—and, in my view, a very good offer—to fund the construction of the pipeline from the south-west gas fields to Mount Isa. This offer has been on the table with MIM for some time. Perhaps unfortunately, the gas exercise is not a stand-alone project, which means that our offer will be considered in the context of MIM's wider corporate agenda and timetable. Meanwhile, the south-west Queensland gas fields are proceeding towards a commitment on the basis of other markets. The Goss Government is diligently working behind the scenes to secure and promote major projects in Queensland. Unlike the previous Government, it does not announce projects until they are ready for commitment. As I have said previously, phantom projects create phantom jobs. While I have the opportunity, let me make a comment on the crane mentality that so transfixes the Opposition. It is the economics of symbolism. Major projects are important, but at any time a particular market can only assimilate a small number of them. In times of soft demand, existing producers have a hard-enough time selling output, without the market being saturated by a large chunk of new production. It is easy, but naive, for Governments to think they can wave a magic wand and make it all happen. However, the Government remains confident that a number of major projects will come on stream in the near future; but as I have said a thousand times before, the single most important thing that we as a Government can do, especially in a recession, is get the financial management right—keep taxes down, balance the Budget, keep debt levels down, create an efficient public sector, educate and train our work force, advance spending on public works, and so on. Mr Stoneman interjected. Mr SPEAKER: Order! The member for Burdekin! Mr De LACY: That is what we are doing. While Opposition members are talking down the economy and calling for the world's tallest building, the rest of Queensland will have passed them by. MINISTERIAL STATEMENT Visit to Japan by Minister for Tourism, Sport and Racing Hon. R. J. GIBBS (Wolston—Minister for Tourism, Sport and Racing) (10.11 a.m.), by leave: Recently, I returned from a seven-day trip to Japan. The purpose of my visit was to rekindle interest in Queensland—— Mr Cooper interjected. Mr GIBBS: In Japan, they remember the Leader of the Opposition very well. In fact, I am told that there is a Japanese bathhouse dedicated to his memory— Mr FitzGerald interjected. Mr SPEAKER: Order! The member for Lockyer will cease interjecting. Mr GIBBS: —for feats unparalleled. As I was saying, the purpose of my visit was to rekindle interest in Queensland as a tourist destination following the slump that occurred during the Gulf war.
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