Newman And Nicholls Must Detail Deal

Media Release.

Deputy Opposition Leader Tim Mulherin says the LNP government must explain the secrecy surrounding a deal to have the Queensland Investment Corporation and Queensland Motorways relieve the Brisbane City Council of the massive debt burden Campbell Newman left behind as Lord Mayor.

“The Premier must explain the circumstances that have led to this bailout and what if any discussions or communications he or Treasurer Tim Nicholls have had with the QIC and Queensland Motorways,” Mr Mulherin said.

“The debt of the Brisbane City Council rose by 454% in Mr Newman’s last and incomplete term as Lord Mayor when he and the LNP had control of the council.

“Mr Nicholls cannot escape blame for that because he was the Lord Mayor’s financial spokesperson and served on the BCC’s finance committee for much of that term.

“Queensland Treasury Corporation figures show BCC debt rose from around $398.2 million in 2008-09 to hit a projected $2.155 billion in 2012-13.

“Having the QIC and Queensland Motorways take over tolling for the Legacy Way Tunnel and the Go Between Bridge in Brisbane is a way to bail out the BCC from the debt Mr Newman and Mr Nicholls left behind at City Hall.

“These two projects were promised by then Lord Mayor Newman along with the Clem 7 tunnel, the Kingsford Smith Drive duplication and an east-west distributor.

“He said they could all be afforded and would be paid for by $2 tolls.

“Now we find he misled Brisbane ratepayers and is now relying on taxpayers not just in Brisbane but in regional and rural areas as well to bail out his mistakes.

“We need to know exactly what the details of the deal with QIC are. There is also the question of secrecy.

“When the QIC entered negotiations to purchase the Queensland Motorways Ltd business from the former government in November 2010 the proposed transaction was well publicised as it should be when it comes to dealing in public assets.

“At that time both the QIC and the former government made public statements advising of the negotiations and the intended purchase. That does not appear to have happened in this case.

“This is another example of regional Queenslanders and Brisbane ratepayers carrying the can for disastrous financial decisions made by Mr Newman as Lord Mayor of Brisbane,” Mr Mulherin said.