Friday 6 June 2014

Queensland to absorb pensioner cuts after Newman backflips on concessions

Extract from The Guardian

Premier says government is ‘listening to Queenslanders’ but Labor says Newman ‘scrambled to save his own political skin’
  • Australian Associated Press
Queensland's pensioners and seniors will be better off, after the Newman government backflipped on concessions.
The federal government cut $223m for water, electricity and rate concessions over four years, and the Tuesday state budget only picked up 10% of the shortfall.
Seniors took the Newman government to task on talkback radio and on Thursday premier Campbell Newman announced he would now fund the full gap.
"We're not only listening to Queenslanders, but we're acting within the space of two days to reinstate the full level of pensioner and senior concessions," he told parliament.
Government backbenchers Sean Choate and Neil Symes tweeted that Newman had "directed" the treasurer Tim Nicholls to come to the table, but Choate has since said it was a poor choice of words. Nicholls said he was "absolutely not" overruled.
While the treasurer did not say when he changed his mind, he had listened to the Queensland Council of Social Services at a breakfast on Thursday morning.
"It is better for us to relieve pensioners and concession card holders of the worry," Nicholls said.
To pay for the shortfall, Queensland would consider withholding or recouping funding from commonwealth programs they ask states to contribute to.
The opposition leader, Annastacia Palaszczuk, said the misstep would not be quickly forgotten.
"The ink isn't even dry on this budget and the premier has scrambled to save his own political skin," she said. "He made a choice in his budget where he could help Queensland pensioners or hurt them. He chose to hurt them."
The opposition delivered its budget reply speech on Thursday.
Labor’s plans to tackle Queensland's $80bn debt will not be revealed until closer to next year's election.
The Newman government has told voters $33bn worth of assets must be sold to fund new infrastructure and pay down debt.
Palaszczuk says it is a political strategy tailored to create a slush fund to buy votes.
It would lead to higher charges and an "Americanised economy" of low wages and no job security, Palaszczuk said.
Labor would hold on to assets and use their revenue to lower debt and invest in new infrastructure.
But a detailed strategy was not released in Palaszczuk's budget reply speech.
"We will be releasing a comprehensive plan ahead of the next state election to pay down the increase in general government debt under the Newman government," she told parliament.

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