I quote in full the Audit Commission’s response to my critique, as reported by the Oz
The statement only responds to the findings of the QCU study, and not those of Professor Quiggin.
“There are no other points of substance in his (Quiggin’s) report which warrant a response,” the statement said.
I’ve just finished a critique of the audit commission. Here’s the Courier-Mail report. There’s another report also due out today from Bob and Betty Walker, who were commissioned by the QCU. I did mine independently, but, like them, with the aim of being out in time for next week’s Budget. From the CM report, it looks as if we are in fairly close agreement, which isn’t that surprising – much of the analysis is the same as that we both used in critiques of the previous Labor government’s asset sales policy.
… unless you expect to be in for one term at most. Having announced that Queensland is on the verge of defaulting on its public debt, as in Greece and Spain, and sacked thousands of public servants, Campbell Newman is now proposing to build a brand-new office tower in the Brisbane CBD, to be financed by the sale of up to 20 other buildings including heritage assets. Apart from the economics, this is a direct breach of the LNP promise, crucial to its election victory, not to undertake asset sales before the next election. The project is being sold as “self-financing”, but this claim appears to rely almost entirely on rosy scenarios and magical ponies.
Proposals like this make sense of one of the more puzzling features of the Costello Commission of Audit, namely its insistence that the capital expenditure projections of the previous government were unsustainably low. The projections appeared reasonable on the assumption that, in straitened times, there wouldn’t be any major new initiatives, as opposed to maintaining and modestly extending existing infrastructure. But, obviously Costello understood that Campbell Newman (like Anna Bligh) was not the kind of Premier who could forgo lots of TV appearances in a hard hat. In this context, it’s worth re-examining his record as Lord Mayor which involved buying short-term popularity at the expense of long term debt – exactly the opposite of what he now says Queensland needs
I seem to be back on air for the moment, so I’m taking the chance to appeal for doantions to the HeartKids appeal. My team partner Flavio and I have committed to raise $2000, but we are still $130 short. Please help to push us over the line, and we will push to get ourselves over the line in Noosa. Just click on the link and give money!
Another Monday Message Board. Post comments on any topic. As usual, civilised discussion and no coarse language. Lengthy side discussions to the sandpits, please.
John Quiggin 