Privatisation proceeds should be spent wisely

I have an opinion piece in today’s Courier-Mail on asset sales/privatisation:

Corporatisation has brought efficiency gains but there is still room for more gains through privatisation

It’s based largely on my speech from a few weeks ago: Productivity and privatisation.

Next month, the Government is due to announce where it intends to spend the $9 billion of privatisation proceeds it isn’t using to pay down debt. While the Government has already provided an indicative, high-level carve up (see below), it still needs to identify specific projects. There is obviously a risk that proceeds could be used to fund popular projects with dubious economic merit in marginal seats. Hence there is a need for Queensland Treasury and the Premier’s Department to ensure a rigorous cost-benefit analysis has been done of all projects.

The proposed Townsville super-stadium certainly warrants close attention from bean counters on George St. It’s unclear why the Government should contribute millions of dollars to provide a venue for the NRL to improve its profitability (see NRL plan for 25,000 seat super-stadium). There doesn’t appear to be a strong public good case for public investment in the stadium, given Townsville already has 1300SMILES Stadium and the Sports Reserve, which can hold important public events as required.


This entry was posted in Budget, Queensland Government and tagged , , , , . Bookmark the permalink.

4 Responses to Privatisation proceeds should be spent wisely

  1. KT says:

    Agree Gene. I love sport but Stadiums are very expensive for marginal return. May be an upgrade for the existing stadium. I like the current breakdown in the provided pie chart.
    However, I think the government needs to provide better / clearer direction on private investment on projects such as Surat Basin Rail – may be offer a top up if the private consortium doesn’t make any cash in the first few years

  2. NSSfT says:

    I think the Townsville SS might be heading to lame duck status. The public can see through the facade and see its a seriously stupid way to spend any one off community investment from the lease/sale of the Port of Townsville. Many/All of us could sit down and assemble a list of lower cost projects that actually might grow the regional economy in the medium/long term, not enrich the NRL at the communities expense …

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s