Federal Budget - 2017/18

[ozbob]

ABC News --> Budget 2017: Turnbull Government to fast-track road, rail infrastructure

Spending on roads, rail and other major infrastructure will be fast-tracked under a new funding approach to be unveiled by the Turnbull Government in May's budget.

Key points:

    Government expected to fast-track infrastructure spending in budget
    It's also planning to take equity stakes in big infrastructure projects
    The Government is moving its focus away from housing affordability

The ABC's 7.30 program understands much of the $50 billion infrastructure plan from last year's budget is going to be brought forward.

7.30 can also reveal the Government is now intent on taking equity stakes in big infrastructure projects, including taking a share in tolls raised on roads part-funded by the Commonwealth.

It is understood the focus on infrastructure in the budget is in part due to the Government wanting to play down expectations it could fix the housing affordability crisis.

The Prime Minister has also grown weary of states taking credit for infrastructure projects part-funded by the Federal Government.

According to Cabinet sources, Malcolm Turnbull has regularly cited the Toowoomba Second-Range Crossing in south-east Queensland as a case in point.

The Federal Government put more than $1 billion into the project, which is 80 per cent of the total cost.

Yet when the road is finished in late 2018 the Queensland Government will likely claim much of the kudos.

The State Government will also be the beneficiary of a toll, with drivers paying up to $30 a vehicle to use the 41km link.

A rethink inside the Federal Government, led by Mr Turnbull, will see the Commonwealth adopting an approach that resists handing over money on major infrastructure projects without strings attached.

This will mean more loans instead of grants and it could see the Government assuming an interest in the second Sydney airport at Badgerys Creek.

The Federal Government will also demand a cut of any proposed tolls on roads it helps fund, as the Prime Minister has proposed to do with Melbourne's Western Distributor.

Treasurer Scott Morrison's speech about "good debt" and "bad debt" has helped lay the groundwork for a big infrastructure spend in the May 9 budget.

"It can be very wise for governments to borrow, especially while rates are low, to lock in longer term financing and invest in major growth producing infrastructure assets, such as transport or energy infrastructure," Mr Morrison said.

"But to rack up government debt to pay for welfare payments and other everyday expenses, is not a good idea."

Peter Newman, one of the Prime Minister's advisers on cities policy, said infrastructure projects did not always offer good debt, nor were they always popular.

"There's some very bad examples where Tony Abbott dropped big road projects on us that we didn't need. They were just designed to create jobs out of digging up places," Mr Newman said.

"I'd like to think that every bit of infrastructure needed to pay for itself, so why not make infrastructure funding from the Federal Government but based on a loan and therefore you get private development around it that helps to pay it back.

"That's a good way to do it because you're getting better cities at the same time as better infrastructure."

Financial analyst Martin North said that after focusing on housing, the Government was looking to catch a more promising wave for growth.

"When the mining boom came off, essentially they were looking for the next wave of growth engines and effectively the one selected was households and household debt," Mr North said.

"You want to be investing in the future, you want to be investing in growth, because if you can get enough growth than you've got the ability to repay the debt.

"If you haven't got growth, what happens is the debt just goes down the generations and never gets paid off."

[ozbob]

Budget 2017-18 >  http://www.budget.gov.au/

Budget 2017-18 will be released at approximately 7.30pm (AEST) on Tuesday 9 May 2017,
as the Treasurer commences his second reading speech.

[#Metro]

Creating jobs isn't automatically a good or bad thing - it depends.

The government can create lots of jobs - for example, we could pay people to dig holes, for another lot of people to fill them in again. Maybe we could build 10x Townsville Stadiums.

The important part is whether value is created. For projects that have a poor or negative BCR, it isn't creating value or worse, is destroying it.

A lot of value can be created from something that creates little or no direct employment. Instead of covering the city in concrete, we could re-organise the Brisbane bus network to be quick, frequent and effective. For example.

Compared to engineers concrete extravaganza, it would create zero new direct jobs, and be cost neutral (Don't see how they will sell the line "The Government is spending $0.00 to improve public transport in Brisbane" will go down) but a huge amount of value in terms of time saved and convenience.

[ozbob]

What is the difference between good debt and bad debt? My thoughts here: https://t.co/3vCSJAYHuk #auspol #qldpol pic.twitter.com/9vAC6rY82l

— Nick Behrens (@NickBehrens1) April 27, 2017

[Stillwater]

The federal budget is all but locked down.  State and federal government usually squabble over which projects jump to the front of the queue, while they generally agree on the pool of projects that needs to be funded.  Feds want a new hospital (which may be needed) in a seat where the ruling party needs a boost, state government of different political persuasion wants a bypass built around a town in a seat where they are shaky.  That sort of thing.

Clearly the Premier has not got all she wants in the Budget:

http://www.couriermail.com.au/news/queensland/queensland-government/malcolm-turnbull-worse-than-tony-abbott-says-queensland-premier/news-story/01a90b8af37ba938c8fbe5dacfc8c5c7

[ozbob]

http://www.couriermail.com.au/news/queensland/queensland-government/malcolm-turnbull-worse-than-tony-abbott-says-queensland-premier/news-story/01a90b8af37ba938c8fbe5dacfc8c5c7

Federal Budget wish list

■ Full restoration of health and education funding;

■ Housing affordability reform by removing capital gains tax and negative gearing;

■ Fund Cross River Rail;

■ A gas pipeline to facilitate new gas field developments in the Galilee and Bowen basins;

■ Expedited payments for the National Disability Insurance Scheme;

■ More defence spending through patrol boat and LAND 400 contracts;

■ Release of Northern Australia Infrastructure Facility funds;

■ Clarity on expiring agreements on early childhood education, skills reform and remote indigenous housing;

■ Biosecurity funding to respond to prawn white spot disease, red imported fire ants and yellow crazy ants;

■ Funding for water storage or pipeline for Maryborough cane farmers, a Queensland Mining Centre of Excellence in Mackay, and Mackay community centre and sporting precinct.

[#Metro]

■ Annex Queensland to NSW. Abolish Queensland Government.

[Stillwater]

A Mackay Community Centre?  On top of the Townsville Stadium?  Not Sunshine Coast Line duplication, which would benefit North Queensland freight functions?   

[Mr X]

I'm gonna guess the funding for CRR is something paltry which sends the message of "yeah we know you want CRR but we're not funding it so here have a lolly. See you in Budget 2018..." so probably $250-500mil.

[ozbob]

Oh dear ... trouble in paradise ... must be looking a bit sad for banana-land come Federal Fudget time hey?   

.@AnnastaciaMP unleashes attack on @TurnbullMalcolm "It takes me a lot to get angry. I am sick to death." @7NewsQueensland pic.twitter.com/CCSq0fUSfi

— Simon Love (@SimoLove) April 30, 2017

[Arnz]

I'm no fan of Uncle Mal, but Anna's response also seemed a bit "self-centered" with the "I need this, and I need that" type response rather than speaking on behalf of "All Queenslanders" like her Labor premier predecessor.  It sounded like a baby had a tantrum to be honest.

[ozbob]

Prime Minister Malcolm Turnbull worse than Tony Abbott, Queensland Premier Annastacia Palaszczuk says (PIC: AAP)https://t.co/cqyq7GtF3y pic.twitter.com/94WX2F44R5

— ABC Radio Brisbane (@abcbrisbane) April 30, 2017

[Stillwater]

Yeah, it seems that in the gamesmanship around CRR (and hasn't there been a lot), there will be something in the federal Budget for CRR, but not the cascading waterfall of coin Qld Labor would like to see, hence the Premier is singing 'Gonna Wash That Man Right Outta My Hair'.  The PM's comments seems to suggest that Queensland will be tested on some of the bold assertions made in the CRR business case around economic benefits and private sector equity sources.  In other words, sufficient money will be there to kick-start the project, with the Qld Govt wearing much of the financial risk should its assertions and calculations prove wrong.  Queensland Government get it wrong?  Surely not!  Maybe instead of holding a media conference on top of the Kangaroo Point cliffs, the Premier might feel tempted to jump off.

[Stillwater]

Look what's crept into the Infrastructure Australia list:

'Preserve corridor for Salisbury to Beaudesert rail connection (Qld Govt proponent)'

The project is at the 'options assessment' stage.

[ozbob]

^ has been a little bit of media interest of late  in the Salisbury to Beaudesert rail corridor.   

It does need to be preserved.

Sunday Mail --> Editorial: Malcolm Turnbull on a hiding to nothing

PREMIER Annastacia Palaszczuk has today launched a scathing attack on Prime Minister Malcolm Turnbull, saying he is "worse than Tony Abbott''.

She says with Mr Abbott she could at least get straight answers, and while she didn't always like what he said, Mr Abbott was a man of his word.

Not so, Mr Turnbull. The Premier says he's a fly-in, fly-out PM for Queensland.

He is lecturing the state about its gas and threatening to redirect supply. He's had to be brought "kicking and screaming'' to the table on the upgrade of the M1, the Townsville stadium and Cross River Rail. He's arrogant. He's disrespectful and he's gutless. Wow. Strong words from the Premier.

Now, she's worried Queensland will miss out again when the Federal Budget is handed down next week. At a time when Mr Turnbull's popularity is at an all-time low – and to many of his supporters he's been a gross disappointment – losing his way in Queensland is not the way to electoral salvation.

The problem for Mr Turnbull is that he's in real danger of being a one-term wonder.

And the problem with that is that he is about to gift the prime ministership to Bill Shorten, whose union links and delusional commitment to renewable energy targets will send the country into a downward spiral.

When is the Prime Minister going to wake from his slumber and actually govern? When is Mr Turnbull going to govern for all of Australia, not just the southern states? Is it any wonder that One Nation's Pauline Hanson, with her plain-speaking – albeit, in many cases misguided – policies, is getting so much traction in regional Queensland?

The good folk of the bush and regional cities see Ms Hanson as a symbol of hope because mainstream politicians have given them none.

Today's criticism from Ms Palaszczuk should resonate throughout the corridors of power in Canberra. Unfortunately, it won't.

Mr Turnbull seems to be incapable of listening and accepting advice or criticism. It will be his downfall.

  I have seen wow used in an editorial piece!  ...

[ozbob]

This sums it up well too Mr Stillwater!

#qldpol #auspol
Trouble in paradise ...

> https://t.co/AmL2cBlB1b

— Robert Dow (@Robert_Dow) April 30, 2017

[ozbob]

WAR OF WORDS: Tension between the Queensland Premier and the Prime Minister escalates. #TenNews pic.twitter.com/uIJ3E7bnBr

— TEN Eyewitness News (@channeltennews) April 30, 2017

Mr Dutton " Premier Palaszczuk cannot get the trains to run on time .. " < low blow!   

[ozbob]

Seriously, one could not make this stuff up hey? 

[ozbob]

Turnbull worse than Abbot according to our own premier, who today unleashed on the Prime Minister. @PhilWillmington #9News pic.twitter.com/3PlRupBc7Z

— Nine News Queensland (@9NewsQueensland) April 30, 2017

[Stillwater]

Once again Queensland is resorting to the bluff and rhetoric to cover for the fact that it has not done its homework and worked up its submissions to a standard where Infrastructure Australia can make valid assessments of the project that Queensland Labor wants the feds to fund.  Seriously .... a community Centre for Mackay?  Bottom of the list, for sure.

Queensland has too few projects on the Infrastructure Australia priority list.  Look at the quality of projects other states are putting up ....  And they do it well first time - none of this four or five goes at rejigging a project, as with CRR.

http://infrastructureaustralia.gov.au/policy-publications/publications/files/Australian-Infrastructure-Plan-2017.pdf

[Stillwater]

The Premier should give up.  The federal Budget will be brought down on Tuesday 9 May.  All the papers required for the night are delivered the day before, the 8th (ready for the journos lock-up on Tuesday, during the day).  Materials must be got to printers offering secure presses (presses with cages around them, or in bunker-like buildings, with everyone vetted).  Guards.  Printers get the files from graphics people within Departments or hired by them (for sensitive stuff like this, usually within Departments) on the previous Wednesday or Thursday (4 May).  Graphics people /web masters would have to have a couple of days prep, so that brings us back to 2 May.  Ministerial offices would have had to approve everything beforehand, so that means today or tomorrow.  Threatening to huff and puff and blow Canberra down is more theatrics.  While the details may not be known, the Premier would have a rough idea of what is in or out of the federal budget already, given all the coordination that would have gone on beforehand between state and fed bureaucrats over infrastructure usually involving questions such as "If you had an extra $300m for hospitals, how would you spend it?  What about $400m?  How much will this project cost and how much will you need next financial year to kick it off?"

[ozbob]

The murky waters become a little clearer ..

Couriermail --> Galaxy poll finds Labor leading in Queensland

QUEENSLANDERS would purge at least seven Federal Coalition MPs from office – including senior Cabinet ­minister Peter Dutton – to deliver Bill Shorten a decisive and devastating election win, a shock new poll reveals.

For the first time since the 2016 election, the Opposition has lifted its primary vote in Queensland by winning back disaffected voters who turned to Pauline Hanson's One ­Nation and the Greens.

A Galaxy poll taken exclusively for The Courier-Mail on April 26 and 27 – just days after Prime Minister Malcolm Turnbull announced a crackdown on overseas workers – reveals the Coalition's primary vote has failed to shift from 35 per cent, the same level as February, and remains significantly down from 43 per cent after last year's election.

Mr Turnbull, who will be in Townsville today for a Battle of the Coral Sea memorial, will be hoping Queenslanders need more time to digest his tough immigration reforms and have not stopped listening to his Government.

Labor's primary vote has increased to 33 per cent, the highest it has been since the election, when it won just 31 per cent of the vote. Since the election, Mr Shorten has embedded himself in Queensland when Parliament has risen, spending time in marginal, regional seats.

One Nation's primary vote has slipped to 15 per cent, from its February highs of 18 per cent, but its vote is still significantly higher than the 5.5 per cent it received at the last election.

If an election were held today, 2016 preferences pit the Coalition and Labor neck-and-neck at 50 per cent on a two-party preferred basis.

The unsettling news for the Coalition places greater pressure on Treasurer Scott Morrison to ensure his Budget next week resonates with Queenslanders who have ­declared infrastructure investment, immigration restrictions and housing affordability as key priorities.

[ozbob]

Budget 2017-18 >  http://www.budget.gov.au/

Budget 2017-18 will be released at approximately 7.30pm (AEST) on Tuesday 9 May 2017,
as the Treasurer commences his second reading speech.

[#Metro]

I have a very good feeling that we will see CRR. Blue team have been in power for far too long, and there is an its time factor.

Annastacia Palaszczuk has been making a lot of noise, she is just setting the stage to get in front of the parade and say "See, if I didn't huff an puff, Malcolm would not have done it".

Though I have to agree with Alan Jones, just like any organisation/group that does not perform - BOOT THEM.

NB: Other side doesn't look that great either.

[ozbob]

Nine News --> Feuding PM, Qld premier to cross paths

Relations between the prime minister and the Queensland premier are at rock bottom as the pair prepare to cross paths in Townsville after a bitter and very public slanging match.

The war of words was sparked when Ms Palaszczuk branded Mr Turnbull an arrogant and disrespectful leader in an interview with The Sunday Mail before claiming she was at "breaking point" and fed up with his lack of leadership.

"All we've seen lately is a fly-in, fly-out prime minister who is espousing thought bubbles without any deep policy conversation," she said on Sunday in Brisbane.

But the prime minister said it was hard to know what prompted the outburst, issuing a statement claiming Ms Palaszczuk's remarks were "bitter, personal and wildly inaccurate".

Immigration Minister Peter Dutton said Ms Palaszczuk's attack was intended to deflect attention from her own inability to run the state.

"Premier Beattie had the smart state, Campbell Newman was can do, but it's clear to me and clear to all Queenslanders that Annastacia Palaszczuk is do nothing," he told ABC radio.

Mr Turnbull said he was focused on Monday's commemorations in Townsville, marking the anniversary of the battle that halted Japan's advance on Australia during World War II.

"It comes the day before we will both be in Townsville commemorating the Battle of the Coral Sea, where 75 years ago Australian and American naval forces turned back a Japanese invasion force headed for Port Moresby," he said.

The battle comprised a series of naval engagements off Australia's northeast coast between May 4 and 8, 1942.

Read more at http://www.9news.com.au/national/2017/05/01/03/32/feuding-pm-qld-premier-to-cross-paths

[Mr X]

Turnbull and his cronies are rotten apple.  kick them out!

[ozbob]

Brisbanetimes --> Annastacia Palaszczuk's attack was 'uncalled for': Malcolm Turnbull

Prime Minister Malcolm Turnbull says he can't understand why the Queensland premier launched such a savage, public attack against him.

"I am at a loss to understand why she chose to, you know, use such personal and bitter language about me. It was uncalled for, it was unnecessary, it had no basis in fact," Mr Turnbull told reporters in Townsville on Monday.

Premier Annastacia Palaszczuk is "at breaking point" in dealing with Prime Minister Malcolm Turnbull, saying she is "sick to death" of him.

He said he won't get into a slanging match with Annastacia Palaszczuk, who on Sunday called him arrogant, disrespectful, and a worse prime minister than Tony Abbott.

The premier said her frustration started to mount after Cyclone Debbie and reached a tipping point during a recent slanging match with Deputy Prime Minister Barnaby Joyce over Category C disaster relief funding.

She also pointed to the lack of respect she says Mr Turnbull showed, when he flew to Queensland recently for a major gas announcement, without bothering to tell her.

Mr Turnbull told reporters her comments left him confused, especially after the joint effort to help people after the cyclone.

"The remarks she made are so incongruous or hard to understand or explain," he said.

"They come barely a month after she thanked the federal government ... for the unprecedented co-operation between the federal government and the state government agencies for tropical cyclone Debbie."

Mr Turnbull also pointed out that his government was shouldering 75 per cent of the costs associated with the natural disaster.

"I am not going to let personal attacks like that get in the way of my or my government's commitment to the people of Queensland," he said.

The federal government was investing billions in infrastructure across the state, including $100 million towards a new sports stadium for the North Queensland Cowboys in Townsville, he said.

Construction and mining company Watpac will build the new stadium, with the Queensland government contributing $140 million.

[ozbob]

Couriermail --> Editorial: Malcolm Turnbull needs to look north to find his way

TO SAY that Malcolm Turnbull's Government is struggling is probably an understatement. Poll after opinion poll has shown the Coalition trailing Labor badly at a federal level, and the Prime Minister's own personal standing with voters is at a low ebb.

For Mr Turnbull, the situation in Queensland – which played a vital part in delivering him a wafer-thin one-seat majority at last year's election – is bad and getting worse. As The Courier-Mail reveals today, the latest Galaxy polling indicates that the LNP in Queensland is bleeding votes, with the Labor Party and One Nation the main beneficiaries.

Queensland Premier Annastacia Palaszczuk says Malcolm Turnbull is arrogant and disrespectful.

Since July last year, the LNP's primary vote has collapsed by more than 8 percentage points to just 35, only a statistical blip ahead of Labor at 33 per cent. This leaves the two major parties level pegging on a two-party-preferred basis, which, based on preference flows at the last election, would translate to the loss of up to seven federal seats for the LNP if an election were held today.

What is at play here is not necessarily the Pauline Hanson factor, as One Nation has also lost some ground since the last Galaxy poll in February, but a growing perception among Queensland voters that the state is largely being ignored by the Federal Government, especially when it comes to delivering funding for vital infrastructure projects.

Premier Annastacia Palaszczuk is acutely aware of this Queensland-Canberra schism and can be expected to exploit it ruthlessly – and at considerable political cost to the Federal Government – ahead of the state election expected this year.

While her description of Mr Turnbull over the weekend as a fly-in fly-out prime minister who is "worse than Tony Abbott" will undoubtedly sting, she makes a point that will resonate with many Queenslanders, particularly in the wake of yet another natural disaster that has left well in excess of $1 billion of damage in its wake.

The aftermath of Cyclone Debbie, for example, was overshadowed by an unedifying squabble over paperwork for disaster relief funds between the two levels of government, which for those at the epicentre of the damage must have typified everything that is petty and partisan about politics.

More recently, the Federal Government decided to announce intervention in Australia's gas market, which would see an "Australia first" policy for domestic gas supplies ahead of LNG exports, a policy shift unveiled by Mr Turnbull in Queensland that could undermine Queensland royalties, and made without talking to the Queensland Government first.

Add to this the continuing reluctance of the Federal Government to back long-stalled pieces of vital infrastructure, such as Brisbane's Cross River Rail project, and it is understandable that Queensland voters are feeling unloved.

This is underscored by the fact that this latest poor poll result comes even after Mr Turnbull has placed considerable emphasis on tougher immigration and citizenship laws, an issue voters ranked as being of equal importance to infrastructure investment, and just ahead of housing affordability.

The continuing slide, despite his best efforts to engage with voters on hot-button issues and neutralise One Nation's populist sentiments, would appear to indicate the Prime Minister is failing to gain any real traction with Queenslanders, who are more interested in seeing solutions to real problems than hearing rhetorical flourishes mixed with federal/state point scoring.

The Prime Minister and Treasurer Scott Morrison do have an opportunity to stem the tide with the Federal Budget next week. It would appear at this stage that, in addition to some possibly contentious moves to address housing affordability, we will see a renewed focus on nation-building, in part underpinned by a decision to detail what is "good" and "bad" debt in the accounts – good debt being the borrowings we use to invest in economic growth.

Such a shift in attention would be welcome, especially if Mr Turnbull begins to understand that this vast, decentralised state to his north faces challenges that most other states do not when it comes to delivering assets that will underwrite future growth and prosperity. We urge him to look north.

" ... Add to this the continuing reluctance of the Federal Government to back long-stalled pieces of vital infrastructure, such as Brisbane's Cross River Rail project, and it is understandable that Queensland voters are feeling unloved. ... "

[Stillwater]

Des Houghton's view of the world: Premier's hissy fit

http://www.couriermail.com.au/news/opinion/des-houghton-why-may-day-should-be-called-labors-day-of-shame/news-story/189b8b97bbeee582b0c1659ec85063d6

Federal Budget – last year

http://minister.infrastructure.gov.au/nash/releases/2016/May/budget-infra_02-2016.aspx

http://minister.infrastructure.gov.au/nash/releases/2016/May/budget-infra_03-2016.aspx

[ozbob]

Echo Net Daily --> Thus Spake Mungo: Turnbull and Trump speaking the same bullsh%t

... It is obviously a time for a large spot of pork barrelling in the name of infrastructure – as Bert Kelly, an earlier sceptic on such matters used to say, I can feel a dam coming on. ...

[Stillwater]

If Victoria is bringing down its state Budget this week, it must know what finances and projects it will get from the feds ... which means the Qld Labor Govt must know its financial windfalls (and lack thereof) from the federal government also:

http://www.news.com.au/national/victoria/politics/victorian-government-makes-more-budget-announcements-before-its-handed-down/news-story/42728af88d4a556a04d38cd1eede6e74

http://www.abc.net.au/news/2017-05-01/what-we-already-know-about-the-victorian-budget/8485244

[ozbob]

Victoria is doing very significant things in the public transport space.  We have the GC LR, duplication of the remaining section on the GC Line, some DDA upgrades (basically botched) and not much else.

LX removal ?

Network expansion ?

New trains ?

CRR ?

Network reform ?

The only hope on the horizon is the bi-artics on the busways.

TransLink and the despot DTMR are abject failures. 

[ozbob]

Couriermail --> Opinion: State and federal governments must work together

THE problem with solid economic data is that for the average person just trying to get by, the numbers often mean little in terms of day-to-day life.

This is especially the case in Queensland, where in the wake of the mining investment boom there has emerged a clear economic divide between the fortunes of the southeast corner of the state and many rural and regional centres.

In this regard, any government has two great challenges. First, there is the task of getting the broad economy moving. Then they need to keep it moving through policy settings that invest in drivers such as economic infrastructure and education, and minimising the hurdles for private sector investment.

Just as important though is ensuring that the benefits of growth flow through across the state rather than being concentrated in often narrow and discreet sectors of the economy.

This latter imperative is one of the key tasks facing Treasurer Curtis Pitt as he puts together the Queensland Budget scheduled for early June.

The most recent Queensland State Accounts were revealed in The Courier-Mail yesterday. They indicate the state is beginning to get its economic mojo back, due largely to the boom in export volumes – coupled with improved prices – for key Queensland commodities such as coal and LNG.

Unlike the investment phase of the mining boom, which saw billions of dollars pumped directly into the economy through peak demand for manufactured goods, labour and services, the export phase spreads the bounty much more thinly.

This is the time when workforces have been pared back, but governments and shareholders expect their dividends.

There are broad grounds for optimism, given the second successive quarterly lift in business investment after 11 consecutive falls, and continuing growth in the measure of state final demand, which does not include trade results.

Still, with the resources export sector not the huge driver of employment that it was, this growth needs to flow through to the wider economy rather than be left to trickle down by chance.

As it stands (pre the impact of Cyclone Debbie), Mr Pitt's June Budget should get a boost of about $2 billion from coal royalties alone, while rising gas royalties are under something of a cloud following recent threats of market intervention by the Federal Government.

After a couple of years of scraping every last fibre out of every hollow log on the balance sheet, this year's State Budget looks to be in far better shape than it has been for some time.

The dollar is working in our favour in other sectors such as tourism, education and professional service exports, and there are signs the Palaszczuk Government is attempting to rein in an early and dramatic expansion in public service expenditure.

This is, of course, all remarkably good fortune if you are eyeing an early election, but there are other real positives too.

Ratings agency Moody's, for example, has recently acknowledged the turnaround with a decision to remove the "negative" watch on Queensland's credit rating, which was bestowed on the state after the former Treasurer's first austerity Budget in 2012.

The biggest problem Mr Pitt now faces is filling the gaps in investment.

If a major nickel refinery in a centre such as Townsville closes suddenly, for example, you can't replace that economic demand overnight.

Investment in projects such as new stadium precincts or water infrastructure takes time, which has seen the Government instead focus more recently on direct incentives to regional employers.

To develop a sustained growth trajectory that shares the benefits of the export bounty as widely as possible though investment in economic infrastructure is key.

While direct employment on critical projects such as Brisbane's Cross River Rail may not replace all the jobs lost in the coal and LNG sector or manufacturing, the investment boosts lasting confidence and secondary economic activity across a broader and more sustainable base.

As this newspaper has said repeatedly, all the public investment that is needed in what is a Commonwealth of States cannot be delivered without federal assistance.

And in this context, no Queenslander would begrudge Premier Annastacia Palaszczuk for standing up so vocally for this state a week out from the Federal Budget.

While her attack on Prime Minister Malcolm Turnbull as "gutless, arrogant and disrespectful" strayed a little too far into the personal realm, there's never been a Queensland premier who lost a single vote due to hysterical Canberra bashing. Dig a little deeper, though, and she has a point.

This Turnbull Government has not yet delivered properly for Queensland. The Townsville City Plan and stadium was a good starting point, but there remains much to be done.

Right now, broadly speaking, Queensland is returning to a reasonable footing, but it will require the co-operation of both main tiers of government to build on this base so we all benefit.

" ... While direct employment on critical projects such as Brisbane's Cross River Rail may not replace all the jobs lost in the coal and LNG sector or manufacturing, the investment boosts lasting confidence and secondary economic activity across a broader and more sustainable base. ... "

[ozbob]

Couriermail --> Federal Budget 2017: Australian states to face tests for infrastructure funds

AUSTRALIAN states will face new tests for infrastructure funding as part of a $50 billion plan in next week's federal budget.

The Australian reports state leaders will have to prove their motorways and rail networks can raise cash from the private sector and generate a dividend after they are built in return for financial help.

Infrastructure Minister Darren Chester said a user-pays approach was the "fairest way" to help fund new motorways, while increases in property values could help pay for new passenger rail networks.

Mr Chester said: "The list of projects being presented by the states exceeds the commonwealth's capacity to pay for them and we are keen for more innovative approaches.

"We want to work with the state governments to make sure they are looking at the private sector opportunities and not simply relying on the federal government as a source of grant funding."

Under the plan, states will have to present stronger business cases for the Cross River Rail commuter network in Queensland, the Perth Metronet in Western Australia, the Adelink tram extension in South Australia and a rail upgrade across Victoria, The Australian reports.

Treasurer Scott Morrison is trying to reshape the debt-and-deficit debate by arguing that "good debt" — spending money on things like roads and bridges instead of humans — can generate economic gain.

This pea-and-thimble accounting trick would be a consequence of the revision of debt definitions proposed by Mr Morrison, Malcolm Farr reports.

The objective is to allow Prime Minister Malcolm Turnbull to present himself as nation-builder with his name on plaques throughout the continent, but not a contributor to overwhelming Budget shortfalls.

Labor infrastructure spokesman Anthony Albanese yesterday warned that that public infrastructure funding was falling below the levels of the past.

"They need to start delivering, not just talking," Mr Albanese said.

" ... Under the plan, states will have to present stronger business cases for the Cross River Rail commuter network in Queensland, the Perth Metronet in Western Australia, the Adelink tram extension in South Australia and a rail upgrade across Victoria, The Australian reports. ...  "

Uh ... oh.  looks like back to the drawing board for CRR ( just a coincidence all Labor State projects hey? )

[ozbob]

^ And perhaps this is one of the reasons the Premier has turned on the Prime Minister too!

All over red rover!   

[ozbob]

 

[ozbob]

A budget dictated by the free market has consequences for everyone | Peter Lewis https://t.co/3e2mnKSCIl

— Guardian Australia (@GuardianAus) May 2, 2017

[#Metro]

Lower Taxes, Higher Revenue

[ozbob]

The bitter war between our Premier and the Prime Minister is getting worse. @ShaneDoherty9 #QldPol #9News pic.twitter.com/BUaD5HYCWP

— Nine News Queensland (@9NewsQueensland) May 2, 2017

[#Metro]

State Red Team need an enemy to define themselves against.

Without an enemy, they are undefined and directionless.