 |
Questions Without Notice Questions without notice are asked of Ministers and answered during Question Time.
Mr LAWLOR:
Question My question without notice is to the Treasurer. With the inflation figures released last week raising expectations of a rate rise, what impact would this have on the Queensland economy?
Mr FRASER:
Answer I thank the member for Southport for his question. It is a timely one, as he said, with the release of last week's inflation figures which were in fact higher than the market expected. One week from today the folk of the Reserve Bank will be sitting around the table to decide on interest rate policy
for the next month. We believe that there is a strong case to be made for the Reserve Bank to sit out raising rates, to sit on the sidelines and see the effect of past rate hikes wash through the Queensland economy and the national economy. We believe that there s a strong case to be made for this, despite the fact that the
headline rate remains above the two to three per cent target band for the Reserve Bank, because there is a wealth of data which proves it.
Retail trade has slowed and contracted over the last three months. We have seen dwelling approvals fall in February. We have seen housing finance approvals fall in February also. Consumer
confidence is at an all-time low. This is the evidence out there, the economic data, that backs up the story that Queensland families, Queensland businesses and Queensland shopkeepers are telling us-
that is, that the Reserve Bank's interest rate hikes have had a big effect on the Queensland economy.
In that regard, we believe that the case is made out not just on the economic data but on what people are telling us. This is a problem that exists in this country at the moment and needs to be addressed but it is not a problem just at the cabinet table, it is not a problem just at the boardroom table; it is a problem at the kitchen table. We believe that Queensland families are bearing the brunt of the Reserve Bank's actions and we need to make sure, as we frame this budget, that we respond to those
circumstances. We need to make sure that we can keep the conditions for continued investment. Access Economics last week released its latest business outlook and it concluded that the sun is still shining in the state of Queensland. It concluded that our outlook remains fundamentally strong. There is $123 billion of committed investment in this state-investment that will actually see us build the future
platform for the growth of this economy.
In the meantime, what the Reserve Bank has done is really put the weights on the family budget
and we believe that it should sit it out; we believe that it should wait otherwise it puts at risk the future
long-term growth of the Queensland economy but, more to the point, the ability of Queensland families
to absorb these pressures. It is fair to say that the only other risk that exists to the long-term growth of
the Queensland economy is if the mob from the other side ever drag their knuckles across to this side of
the chamber with their abacus, their Gestetner, their Dark Ages economic policy, their no plan, no tax,
no building, no raising of finance, no capital works, do nothing but do everything policies. If they ever
wander over here with the magic pineapple to pay for everything lord help the Queensland economy. Last changed: [PUBLISHED_DATE] at 11:28 AM
Back
|
|
