SNAP POLL: Queensland Government $1250 one-off bonus

[#Metro]

The Queensland Government proposes $1250 bonus for selected categories of public servants.

The total cost for this proposal is ~ $250 million.

Two day snap poll. Results available immediately after voting.

Please indicate alternative spending priorities if you indicate no support.

[Fares_Fair]

$250m would pay the shortfall for #2tracks #SunshineCoast.
i.e. critical transport infrastructure.

[ozbob]

Sent to all outlets:

23rd September 2019

Money for nothing ...

Good Morning,

RAIL Back On Track Members are aghast and frustrated that the Government has seen fit to hand out more ' cash bonuses ' to people who are just doing their jobs, and in many cases rather poorly at that. It was bad enough the ' cash bonuses ' to rail crew for the Commonwealth Games, now even more largess.  CPI linked wage and salary increases are fair enough, but that is where it should end.

The money wasted on these cash bonuses for public servants would have been better directed at getting some of these stalled projects below moving and some funding to the cash and resource starved TransLink for bus service improvements throughout Queensland.

Upgrade of Sunshine Coast railway line -  stalled since 2009.

Gold Coast light rail stage 3A - stalled.

Brisbane ' Metro ' - stalled.

Bus network reform - stalled.

Level crossing removal - stalled.

Station accessibility upgrades progressed properly - a number still only being given partial platform raising.

Inland rail to the Port of Brisbane - stalled.

As they say, " you've made your bed, now lie in it ".

These cash bonuses are bad policy and an insult to Queenslanders. This will no doubt hurt the Government in the coming elections.

Robert Dow
Administration
admin@backontrack.org
RAIL Back On Track https://backontrack.org

[ozbob]

$250m would pay the shortfall for #2tracks #SunshineCoast.
i.e. critical transport infrastructure.

Certainly would!

They are really going off the rails now.   The sooner October 2020 arrives the better ...

[ozbob]

https://twitter.com/railbotforum/status/1175855722870890496

[Stillwater]

Wasn't it just the other day that the Premier was musing about Queensland buying its own 'super plane' to use in fire suppression efforts?.  We had to rely on the goodwill of NSW (probably at 'mates rates') to use the services of their special jet aircraft to help contain the fires on the Sunshine Coast around Peregian Beach. 

Ms Palaszczuk said she has asked the Treasurer to see if the state could afford the expense and then suggested that the Federal Government might like to buy a fleet of the fire-fighting planes. It won't go down well in Canberra to shout for more money for infrastructure such as the Sunshine Coast Line while handing out fistfuls of cash to public servants in line for a 2.5 per cent wage rise.

If Queensland's answer to everything is that the federal government should provide more money to the state for this and that, it might as well hand in its statehood licence and become the North-East Territory of the Commonwealth of Australia.

Not that this would happen, but I seek to make a point. People look to the state government to show leadership and we are not getting it. Is handing out $1250 to each state public servant Jackie Trad's way of ingratiating herself to the unions, some of whom want her sacked? On top of her Woolloongabba house debacle, the impression on the ground is that she is sitting high in the Tower of Power telling people who struggle to put a loaf of bread on the table that 'they should eat cake' instead. Unless they are a Queensland public servant, that is.

[Derwan]

RAIL Back On Track Members are aghast and frustrated that the Government has seen fit to hand out more ' cash bonuses ' to people who are just doing their jobs, and in many cases rather poorly at that.

While I disagree with the handout, this statement is uninformed and offensive to people like me... public servants who are "just doing their jobs".  And I can tell you now, we're not doing it "poorly".  We do the best we can considering the environment we work in.

Public Servants have been fighting for a fair pay increase for over a year now.  After years of stalled wage negotiations under the LNP, our salaries fell behind inflation and award increases.  Last year, the State Wage Case increased the award rates for some public servants above the enterprise agreement rate.  During negotiations last year, the State Government offered an increase that would put the rate of most public servants below the award rate - which is simply unacceptable.

Fast forward a year and the negotiations haven't gone anywhere.  They're due to be heard in arbitration in February 2020.

With the next state wage case looming and the potential for the government's offer to fall even further below the award, the $1250 and 2.5% increase is a desperate attempt to keep public servants on side.  The state wage case could potentially push rates up by around 2.5% anyway - so this is an attempt (just like Newman did) to look like the good guys offering a wage increase - instead of being forced to increase wages by the industry watchdog.

[#Metro]

While I disagree with the handout, this statement is uninformed and offensive to people like me... public servants who are "just doing their jobs".  And I can tell you now, we're not doing it "poorly".  We do the best we can considering the environment we work in.

Perhaps this was TMR? I think QR executives also got bonuses, and this was during rail fail?

[ozbob]

Considering the multiple failures in education, IT and health, let alone transport, there are clearly many non performers.

Didn't say all.

Cash bonuses are not the way forward.  Proper fair wages and salaries are.

[ozbob]

While I disagree with the handout, this statement is uninformed and offensive to people like me... public servants who are "just doing their jobs".  And I can tell you now, we're not doing it "poorly".  We do the best we can considering the environment we work in.

Perhaps this was TMR? I think QR executives also got bonuses, and this was during rail fail?

2017 bonuses were not paid.  October 8, 2017 Rail bosses say goodbye to bonus pay thanks to Jackie Trad. https://www.couriermail.com.au/news/queensland/queensland-government/rail-bosses-say-goodbye-to-bonus-pay-thanks-to-jackie-trad/news-story/075bf4e12f34d86cba83cafbbe010aef

" TRANSPORT Minister Jackie Trad has stepped in to end the gravy train at problem-plagued Queensland Rail – ordering the axing of tens of thousands of dollars in executive bonuses. "

I think it was in 2018 that bonuses were approved by the QR Board and the Minister directed they not be paid.

3 Oct 2018 Queensland Rail senior staff stopped from claiming $3.6 million in bonuses https://www.abc.net.au/news/2018-10-03/qld-rail-bonuses-stopped-furious-transport-minister-mark-bailey/10331692

I expect they probably will be paid this year ... 

[techblitz]

is a desperate attempt to keep public servants on side.

yep.....pure damage control because there is massive backlash against the premier on staffing levels as each sector slowly heads backwards.....prisons/hospitals/schools/police/ambulance/child services/domestic violence/mental health services....all are making the mainstream media due to incompetence and the reason given is lack of staffing/front line staff failing to cope.

[#Metro]

It is very hard to justify bonuses in the public sector IMHO.

In the private sector, bonuses (also called variable pay) is a way of dealing with revenue risk.

If a business makes a large profit, they share that with their employees through awarding bonuses. The criteria there vary.

HOWEVER, if the business makes a large loss, they also share that loss with their employees, by cancelling or reducing the bonus.

Mathematically, this is the same as awarding a temporary pay cut across your business.

This allows the business to survive tough times... thus bonuses are not just about individual or group performance, but also the external

business environment and factors that are outside an ordinary employee's control.

In the public sector, generally, revenue streams are stable because they are based on taxation.

If the government wants more, they can adjust taxes, fees and charges accordingly.

It seems that whoever is advocating for bonuses to be added to the mix in an attempt to 'copy the private sector' doesn't seem to understand their purpose??

[ozbob]

is a desperate attempt to keep public servants on side.

yep.....pure damage control because there is massive backlash against the premier on staffing levels as each sector slowly heads backwards.....prisons/hospitals/schools/police/ambulance/child services/domestic violence/mental health services....all are making the mainstream media due to incompetence and the reason given is lack of staffing/front line staff failing to cope.

So the Government wants to fix it with bonuses?  They are hopeless ...

[techblitz]

If the government wants more, they can adjust taxes, fees and charges accordingly.

From the budget report....
                              NSW    Vic.    Qld     WA     SA     Tas    ACT      NT    Avg
Taxation effort (%) 103.9  101.7  89.1   101.7 103.9  89.4  95.9    89.7 100.0

Qld loves to kick all the wrong goals.....

Trad has no idea on what she actually needs to do to get more people to pay decent amounts of tax.....we are in an era of flatlining wage growth and dwindling per capita tax revenue from small business......she somehow thinks the best way to fix the problem is to just tax the big players more and more.....all that will do is increase the cost of living as the big players pass on the costs..

The better way to fix the situation is to have workers pay more tax courtesy of....wait for it....higher wages 
But as more and more people are forced into the gig economy and eventually under the tax free threshold as the gig worker pool dilutes...there is stuffall chance of this taxation problem improving..

Unless of course they get rid of the TFT and implement a flat tax rate...

[Derwan]

I've just found out more about this so-called "bonus".

This is a "sign-on bonus" that will only be paid if public servants agree to end arbitration action and accept the government wage offer.  It's a bribe - plain and simple.

It's not guaranteed.  It's not going to just happen.  It has absolutely nothing to do with stimulating the economy.  It's a desperate attempt by a desperate government that doesn't want to pay fair wages to the people who serve the public of Queensland.

Considering the multiple failures in education, IT and health, let alone transport, there are clearly many non performers.

Blame the decision-makers, not the workers.  We're sick of being used as political pawns - when all we're doing is our jobs.

Cash bonuses are not the way forward.  Proper fair wages and salaries are.

Definitely agree on that one! 

[ozbob]

Thanks for the information Derwan.  Very interesting.  I perhaps used a not right choice of words in what I said initially.  I was really aiming for the failing political process and compromised senior management.  Having been on the front line myself at one time I do understand the frustration.

[Gazza]

I don't really have a problem with it. Wages are flatlining and they need a kickstart.
If it's just a bribe though.....

[Derwan]

I don't really have a problem with it. Wages are flatlining and they need a kickstart.
If it's just a bribe though.....

I wouldn't normally say no to $1250, but in this situation I don't want it!  It's far less than the extra we would've been paid during the whole year if our salaries had been increased to a fair amount... and the government's updated offer is still below the award for the majority of employees.  The State Wage Case decision will come through soon and the Government will be forced to increase wages due to them falling even further below the award.

The $1250 would amount to nothing if we were to accept it.  Public Service wages continue to "decline" and one-off payments won't change that!

[verbatim9]

Brisbanetimes.com.au-----> Unions claim $1250 public sector bonus will help Queensland economy

Unions claim $1250 public sector bonus will help Queensland economy

LUCY STONE SEPTEMBER 23, 2019

Queensland's $1250 bonus to public servants has been welcomed by the council of unions despite heavy critcism from economists and the LNP.

More than 200,000 workers – the bulk of the Queensland public service – will receive the payments on top of annual CPI increases for pay agreements finalised for the three-year period from March 2018.


Queensland's $1250 boost to public sector workers will benefit the economy, unions say.Credit:Paul Jeffers

The payments are part of a bid to boost the economy while public servant wage growth is capped, with deputy premier Jackie Trad saying it was in response to the Reserve Bank of Australia warning that economic stimulation was needed.

"The offer of a one-off payment will provide this additional economic support while maintaining the budget balance," Ms Trad said on Saturday.

Queensland council of unions acting general secretary Michael Clifford said the bonus was a much-needed injection into the state's economy ahead of Christmas.

"Missing in the discussion so far is that this comes at a time where we do have record low wage growth, I think it's broadly recognised that we have to act to lift wages," he said.

"Whilst we would prefer to see higher wage increases, this is a move in the right direction to be putting more money into workers' pockets."

Mr Clifford said the unions had been calling for a much-needed boost to the economy for years, with no real wage growth since 2013.

"The federal government is saying that something needs to be done to increase wages, what's happening here is a state government taking some action," he said.

Economists warned the money would go to credit card repayments and into savings, and the Chamber of Commerce and Industry decried it as "offensive" to farmers and non-public service workers.

"There are people in regional Queensland who are going without a shower on a daily basis, eating stale food and wrestling with financial distress that is causing genuine mental anguish," CCIQ spokesman Daniel Petrie said on Sunday.

Mr Clifford said the boost would help families throughout the state who were on low wages such as school cleaners, teachers aides and other low-wage workers in the sector.

He said those workers would not be paying off debt but would put their money toward Christmas presents and other much-needed items.

"I'm not saying that this is the one thing that is going to turn the economy around, it is part of a whole series of solutions that are needed to lift wages and to generate economic growth," Mr Clifford said.

"But I do think that it will be an injection that will be beneficial to the retail sector in the lead up to Christmas."

[verbatim9]

Brisbanetimes.com.au-----> Unions claim $1250 public sector bonus will help Queensland economy

Unions claim $1250 public sector bonus will help Queensland economy

LUCY STONE SEPTEMBER 23, 2019

Queensland's $1250 bonus to public servants has been welcomed by the council of unions despite heavy critcism from economists and the LNP.

More than 200,000 workers – the bulk of the Queensland public service – will receive the payments on top of annual CPI increases for pay agreements finalised for the three-year period from March 2018.


Queensland's $1250 boost to public sector workers will benefit the economy, unions say.Credit:Paul Jeffers

The payments are part of a bid to boost the economy while public servant wage growth is capped, with deputy premier Jackie Trad saying it was in response to the Reserve Bank of Australia warning that economic stimulation was needed.

"The offer of a one-off payment will provide this additional economic support while maintaining the budget balance," Ms Trad said on Saturday.

Queensland council of unions acting general secretary Michael Clifford said the bonus was a much-needed injection into the state's economy ahead of Christmas.

"Missing in the discussion so far is that this comes at a time where we do have record low wage growth, I think it's broadly recognised that we have to act to lift wages," he said.

"Whilst we would prefer to see higher wage increases, this is a move in the right direction to be putting more money into workers' pockets."

Mr Clifford said the unions had been calling for a much-needed boost to the economy for years, with no real wage growth since 2013.

"The federal government is saying that something needs to be done to increase wages, what's happening here is a state government taking some action," he said.

Economists warned the money would go to credit card repayments and into savings, and the Chamber of Commerce and Industry decried it as "offensive" to farmers and non-public service workers.

"There are people in regional Queensland who are going without a shower on a daily basis, eating stale food and wrestling with financial distress that is causing genuine mental anguish," CCIQ spokesman Daniel Petrie said on Sunday.

Mr Clifford said the boost would help families throughout the state who were on low wages such as school cleaners, teachers aides and other low-wage workers in the sector.

He said those workers would not be paying off debt but would put their money toward Christmas presents and other much-needed items.

"I'm not saying that this is the one thing that is going to turn the economy around, it is part of a whole series of solutions that are needed to lift wages and to generate economic growth," Mr Clifford said.

"But I do think that it will be an injection that will be beneficial to the retail sector in the lead up to Christmas."

^^The unions have too much influence in the current and ongoing decision making in this State. It's appalling.

[Gazza]

To be honest, I think this is one we should stay out of, too partisan.

If its $250m of money for road projects that directly compete with public transport, fair enough.

But it's a bit of a slippery slope if we start coming out against anything where we feel we deserve the money more.

Furthermore, you can't really lay claim to that $250m for a given project. Conceivably there are health/education/water/public housing projects etc that would use that $250m too.

Just my opinion.

[ozbob]

Yo, it's borderline.  But the fact is there is so much in terms of infrastructure stalled it was worth pointing that out.

Getting a lot of attention on Facebook.  Majority of folk are quite annoyed with this.

[verbatim9]

https://youtu.be/jbR-NFjYJvs

[ozbob]

Couriermail --> Cash for bureaucrats could fund 2.5 million truckloads of water for towns running dry, farmers say

Drought-stricken farmers have labelled a taxpayer-funder bonus that will be gifted to public servants as "irresponsible", after it's revealed just how much water that money would buy.

PUBLIC servants earning as much as $122,000 a year will be gifted a $1250 taxpayer-funded bonus, with the State Government admitting it had done no economic modelling on the cash splash.

As criticism grows over the $250 million gift to public servants, drought-stricken farmers slammed it as "irresponsible" and revealed it could instead fund 2.5 million truckloads of water.

It comes as the latest Working for Queensland Survey of the state's bureaucrats reveals their biggest gripes include incompetent and lazy colleagues whose poor performance is never addressed.

AgForce CEO Michael Guerin last night slammed the move as a "cynical cash splash" to buy votes and keep public sector unions sweet in the lead-up to the federal election.

"$250 million would deliver around 2.5 million semi-trailer loads of water to farms and rural communities, many of whom have nearly, or actually, nothing left to drink," Mr Guerin said.

"This decision is at best thoughtless, at worst, completely irresponsible, and shows just how out of touch the State Government has become with regional Queensland."

The CEO of the state's peak voice for regional Queensland said while AgForce recognised the vital role of public servants, it questioned whether the cash bonus came the right time.

"Is this really the right time to be handing out cash to a largely urban workforce when two thirds of the State suffers through the longest drought on record and tens of thousands of producers have their backs to the wall?" he said.

The Courier-Mail can reveal bureaucrats earning up to and including $122,000 will be eligible for the bonus — far in excess of the average Australian full-time wage of $88,000.

A spokesman for Industrial Relations Minister Grace Grace confirmed no economic modelling had been done for the $250 million in bonus payments for 200,000 workers to be delivered alongside a 2.5 per cent pay increase.

That's despite Treasurer Jackie Trad heralding the bonuses would "drive economic growth".

Instead, the spokesman said the one-off payment was "in line with the recommendations of the Reserve Bank of Australia".

He quoted RBA Governor Philip Lowe, saying: "Caps on wages growth in public sectors right across the country are another factor contributing to the subdued wage outcomes. At the aggregate level, my view is that a further pick-up in wages growth is both affordable and desirable."

The LNP has been critical that the bonus has not been tied to better performance outcomes.

The latest public service survey of more than 78,000 workers from across 65 government departments, agencies and health and hospital services found nearly two in five believed poor performance wasn't appropriately addressed in their workplace.

More than one third felt "overloaded with work", with a similar number also feeling "burned out".

Workers who said they were the busiest included child safety workers, police officers, paramedics, and workers at The Public Trustee, Department of Justice and Attorney-General and Public Safety Business Agency, which provides corporate support to the emergency services.

Worryingly, health and hospital workers were among those who most believed poor performance wouldn't be addressed at their workplace.

[ozbob]

Couriermail --> Comment: Grace says wages offer 'sound fiscal management'

The State Government has been slammed over a bonus to public servants it says will kickstart the economy. This is Industrial Relations Minister Grace Grace's response to the criticism.

The state government this year delivered its fifth budget surplus thanks to sound fiscal management. This has only been possible through strong and restrained management of government spending.

More than 90 per cent of public servants are frontline or frontline support workers. These are the nurses and doctors who take care of you when you're sick, the teachers and teacher-aides who ensure you children receive an education and the firefighters, police and ambos who look after when you're sick or in trouble.

They're the people who fight bushfires, respond to natural disasters like cyclones and floods and put their lives on the line to help fellow Queenslanders.

The announcement at the weekend that keeps wages growth limited to 2.5 per cent with productivity gains and a one-off payment is both affordable and provides immediate support to the economy. Only public sector employees up to and including Administrative Officer level 8 (AO8) or equivalent will be eligible for the one-off payment. It will not be available for senior executives or senior officers.

It is also consistent with advice from the Governor of the Reserve Bank of Australia who has called for growth in public sector wages above existing wages caps across all levels of government to stimulate a lacklustre national economy.

The RBA Governor said: "Caps on wages growth in public sectors right across the country are another factor contributing to the subdued wage outcomes. At the aggregate level, my view is that a further pick-up in wages growth is both affordable and desirable."

It is not just the public sector that the Palaszczuk Government is supporting.

We have supported small business with payroll tax incentives worth $885 million. It means 1500 more small business owners will no longer pay payroll tax.

We're investing $32 million to make training apprentices under 21 years of age free.

And we're investing in regional infrastructure.

Around 60 per cent of the $12.9 billion infrastructure program for this year is committed outside of south east Queensland supporting 25,500 jobs in the regions over the next year.

Over the next four years we are investing $14.5 billion on regional roads supporting 13,500 jobs.

We are delivering targeted programs to create jobs in the regions totalling $1.6 billion supporting more than 35,000 jobs including:

• $515 million through Building our Regions - 2,419 jobs supported to date

• $600 million under Works for Queensland – 16,400 jobs supported to date with 21,000 to be supported in total.

• $175 million Jobs and Regional Growth Fund – over 900 jobs supported

• $305 million under Back to Work – more than 15,900 jobs in the regions supported

The Queensland Government has provided $670 million to drought affected communities over the last six years and the Premier recently pledged funds to support Stanthorpe's water supply and a new dam for the South West. All of these programs and projects will be delivered by government workers.

Queensland learned from the Newman years that the LNP don't like public servants. And unlike the LNP, we have delivered a budget surplus each and every year. The LNP may not value public servants and may not be able to see any alternatives to cutting, sacking and selling. But Queenslanders know our government workers deliver vital services across Queensland.

[#Metro]

If it is going to do everything they say, they should have no problem running it past the Auditor-General and having it monitored by university economists for effectiveness.

The media release wants to argue both sides - that restricting expenditure for a surplus is good, and that large spending is good. They are opposing measures!

If I have $1250 in my left pocket, which I tax into my right pocket, and then gift it back in my left pocket, is there a net gain?? If the money had not been taken by the QLD Government in the first place, it would have been spent in the economy by the people it was taxed away from.

The release then attempts to anethetise by talking about the "front line". But they are not addressing the simple fact that after this bonus is issued, the service level offered will be exactly the same, and not a single new position will be created this way because it is simply paying more for the same.

[City Designer]

Once again state governments are starved of funds by the federal government and they kicked when projects go wrong.

The blame lies solely with the Australian Government and their idiotic obsession with a surplus.

Government projects fail by design due to either trying to run them for a profit motive, starving them of funds, or not appropriately resourcing them.

The Australian Government is starving the state governments of direct funding, which means they are reliant on borrowing or revenue to make up the shortfall.

Kicking state governments when actual cause of the failure is the Australian Government is a classic deflection of responsibility.

If you do not understand macroeconomics, nothing will get done, nothing will change.

Direct your anger at the Australian Government.

[Derwan]

https://youtu.be/jbR-NFjYJvs

That was laughable!  Bolt couldn't be more wrong if he tried!

[#Metro]

Government projects fail by design due to either trying to run them for a profit motive, starving them of funds, or not appropriately resourcing them.

Private sector businesses have to do all these things and raise their own investment, and do it within strict spending constraints as they don't have the certainty of taxation.

In contrast, a lot of projects govt does tend to be botched for political reasons - not financial - as we have seen with CRR delays and design and Brisbane metro, also delay and design.

[City Designer]

You are precisely making my point.

The political failure you described is a government trying to run a project for profit and not appropriately resourcing it.

When the Australian Government starves state governments of direct funding state government projects fail.

"Expenditure and payments by the (Australian) Government adds ES (exchange settlement) funds to the account of the recipient (or their financial institution), while receipts have the opposite effect."
https://www.rba.gov.au/mkt-operations/dom-mkt-oper.html

"The Reserve Bank of Australia is Australia's central bank. Its role is set out in the Reserve Bank Act 1959. The Bank conducts the nation's monetary policy and issues its currency. It seeks to foster financial system stability and promotes the safety and efficiency of the payments system. It also offers banking services to government. The Bank is a body corporate wholly owned by the Commonwealth of Australia."
https://www.rba.gov.au/qa/

The limit to spending by the Australian Government is the real resources for sale in Australian Dollars.

Why do we have state and local governments if funding comes from the Australian Government? To reduce the concentration of power. Absolute power corrupts absolutely.

Government is not a business. Business is not a government.

When you privatise something you are saying I want this activity to be held to a profit motive. How is taking care of people and keeping them well profitable?

Why should healthcare, education, or infrastructure to be held to a profit motive?

You get sick you get help. You get an education so that you can participate in society. You get infrastructure so that you have a functioning society.

None of this is complicated. In fact is is deceptively simple.

As for the Queensland Government cash bonus

The Queensland Government bonus is a direct injection into the retail sector. One person's spending is another persons income.

The alternative argument proposed (spending it on healthcare, education, and infrastructure) does not directly stimulate the retail sector.

The responsibility for appropriately funding healthcare, education, and infrastructure lies with the Australian Government.

Hence we return to my point that your anger should be directed at the Australian Government.

I neither agree nor disagree with the Queensland Government bonus. I see what they are trying to do. Retail is an important sector in Queensland and it is in heavy decline.

Regardless of what the Queensland Government does they do they will be kicked for a failure that is not their making. The failure is with the Australian Government.

[#Metro]

You are precisely making my point.

The political failure you described is a government trying to run a project for profit and not appropriately resourcing it.

I don't think I am. CRR was botched because of 3 year political cycles and tit-for-tat project cancellation between rival political parties. A similar dynamic is playing out between BCC and the State Government over the metro.

Government can't spend money it didn't already take from someone; Generally money taken from you is thus money you cannot then go on to yourself spend...

As for profit, neither CRR nor Brisbane metro make a profit, so I think you're just entirely off-topic with that. As for stimulating the retail sector, are more TV sets and home appliances what is needed, or a decent bus network?

What could possibly be the justification for the QLD Govt to prioritise the production of TVs and toasters over decent PT etc.??

[City Designer]

The political failure with Cross River Rail starts with the Australian Government not appropriately funding infrastructure.

This is one of three reasons for government failure I provided.

To recap government project fail when they run them for a profit motive, don't appropriate fund them, or don't appropriately resource them.

The Australian Government is the sole issuer of Australian Dollars.

Spending is authorised by parliament and accounts are credited every single time.

Taxes do not and cannot pay for a spending at a federal level.

The Australian Government has to spend the money into existence before they can tax it back.

If you want more funding for healthcare, education, and infrastructure lobby the Australian Government.

[techblitz]

if was asked to put a vote to what delayed CRR the most i would have to say the state v fed tit for tats....lack of funding from the feds for fair and equal 50/50 splits.

[City Designer]

Spot on techblitz. It was an argument between the Queensland Government and Australian Government over project funding. One of the three reasons for government failure I provided.

We assume the private sector does not fail and that governments do.

Private sector projects routinely fail. Private sector projects have a profit motive.

When you remove the profit motive the reason for government project failure is funding or resources.

Funding comes from the Australian Government and resources come from either making or buying them. Every project has make or buy decisions.

When a government employs people to work on a project they are making something.

When a government contracts another entity to work on a project they are buying something.

Side note

I have a master of project management. Project managers are expected to understand and communicate with subject matter experts.

I have communicated with various subject matter experts and can understand and explain macroeconomics.

Combine that with training in project management and you can understand government projects.

Govenrment projects are very different to private sector projects. They have a different purpose and different variables.

The critical things to understand about macroeconomics are:

• Taxes do not and cannot pay for spending at a federal level. Spending is authorised by parliament and accounts are credited.
• The Reserve Bank of Australia is a body corporate wholly owned by the Commonwealth of Australia. It is a government entity.
• Spending by the Australian Government creates bank deposits and taxation does the opposite.
• The Australian Government does not control the money supply. Banks are not intermediaries. They create deposits when they make loans.
• Bank loans create liabilities of equal value to the deposits they create when making loans. Banks do not create net financial assets.
• The private sector does not create net financial assets. They redistribute existing net financial assets.
• Bank deposits up to $250,000 are guaranteed by the Australian Government. The money sitting in your account is not used to make loans.

[#Metro]

^ cash bonus is just a money burn off exercise ; plenty of things to better spend on.

We assume the private sector does not fail and that governments do.

Private sector projects routinely fail. Private sector projects have a profit motive.

We? Who is we?

The fact that you have to get the numbers right or face bankruptcy provides a powerful inventive to get it right first time.

[City Designer]

I stated previous when the Australian Government does not appropriately fund things the states are left to pick up the burden.

If the elected representatives of the Australian Government were doing their job properly the Queensland Government would not be doing this.

The cash bonus is an attempt at stimulating the retail sector. One person's spending is another person's income. Dollar for dollar.

Who is we? Society as a collective.

Businesses fail all the time. The likelihood of a business surviving the first 5 years is incredibly low.

Bankruptcy is not a particularly good incentive to get things right.

Businesses do not exist in a vacuum, they are part of a system.

Businesses can fail due to conditions outside of their control.

I am giving you a lesson in macroeconomic and the implications for government decision making.

How governments pay for something should be the least important part of the conversation. The limit to spending is the real resources.

You do not necessarily want to hear it, but it needs to be said.

[#Metro]

The cash bonus is an attempt at stimulating the retail sector. One person's spending is another person's income. Dollar for dollar.

The Queensland Government would have spent that money elsewhere if not via bonuses.

Thus, it's not a stimulus. As others have alluded to, the govt needs votes.

[verbatim9]

Couriermail.com.au------> Two important infrastructure projects could have gotten the go-ahead.

$250m Qld public servant bonuses could have funded major rail projects

It's not only farmers who could have benefited from the $250 million doled out as bonuses to public servants — two important infrastructure projects could have gotten the go-ahead.

Farmers slam Qld govt's cash bonus scheme

A NEW congestion-busting and job-creating rail line could have been built for southeast Queensland with $250 million instead being splashed on public servant bonuses.

As anger builds over the $1250 payments to public servants earning up to $122,000, The Courier-Mail can reveal two rail lines labelled as "priority projects" by Infrastructure Australia could have been funded with the money.

The next stage of Gold Coast light rail and the Sunshine Coast rail duplication are both stalled due to a funding fight between the state and federal governments.

But either shovel-ready project could have broken ground for the same amount being doled out to public servants.

Despite state and federal funding commitments, light rail stage 3A from Broadbeach to Burleigh Heads is short by $270 million and the Beerburrum to Nambour line needs $230 million to go ahead.

The State Government is arguing the Commonwealth has short-changed the state and needs to tip in the shortfall.

It comes as Premier Annastacia Palaszczuk defended the taxpayer-funded handouts — which come on top of a "responsible" 2.5 per cent pay boost — after Treasurer Jackie Trad insisting the move was about driving economic growth.

She said the pay rise was in line with other states and the bonuses were factored into the Budget.

"Let's be very clear here, we're talking about our nurses, our fireys, our teachers," she said.

"Are people saying that the fireys don't deserve this?"

The Government maintains 91.4 per cent of its workforce are in "frontline and frontline support roles", but there is no list of jobs defined as "frontline support".

The Courier-Mail revealed this year that of 4391 public servants expected to join the ranks in 2019-20, only 61 per cent are in what the Government lists as key frontline positions - teachers, teacher aids, nurses, health practitioners, doctors, paramedics and police officers.

Infrastructure Association of Queensland chief executive Priscilla Radice said building infrastructure was a real economic stimulus.

"As a principle, I would like to see money going into infrastructure more broadly," she said.

"We believe investment in economic-enabling infrastructure stimulates the economy.

"It provides jobs ... (and) ensures that we can deliver on population growth and it's population growth that drives economic growth."

"It keeps companies working in Queensland and people in jobs and we have to support private sector jobs."

She said both rail lines were key projects that must go ahead as southeast Queensland was "rail light" and poorly connected, but road networks also needed upgrading.

Public servants earning up to $122,000 will be paid a $1250 bonus.
Meanwhile, pensioners joined the chorus of farmers, builders and economists who suggested the money could have been better spent.

Australian Pensioners and Superannuants League state secretary Cherith Weis said her members would have preferred to see rego rises capped or utility subsidies increased.

"I mean the first I knew about it was when I grabbed the paper on Sunday on the way home from church," she said.

"I think it's outlandish, I really do."

She said she didn't see how the money would boost the economy, as claimed.

"I can't see how and I've been around for a while and I just can't see the reasoning," she said.

[ozbob]

https://twitter.com/railbotforum/status/1176514066799423488

[#Metro]

^ Looks like CM picked up on our release. Good.

It's not a stimulus - the money would have been spent anyway.

And on something that has a positive BCR and benefits for everyone, not just members of the Retail Association / Lobby.

I hear David Jones and Myer are not doing well... but I also think that is not the Queensland Government's role to guarantee their profitability.

PS: I will be very surprised if Jackie Trad survives the next election. She is potentially a future premier, but also was part of the govt that got Adani coal approved, and then her undeclared house purchase via a trust near CRR. Green team will probably take her seat.