EGC Report No. 30, 57th Parliament - 2022-23 Budget Estimates - Appropriation Bill 2022

2022-23 Budget Estimates - Appropriation Bill 2022

Report No. 30, 57th Parliament Economics and Governance Committee August 2022

Economics and Governance Committee

Chair Mr Linus Power MP, Member for Logan

Deputy Chair Mr Ray Stevens MP, Member for Mermaid Beach

Members Mr Michael Crandon MP, Member for Coomera*

Mrs Melissa McMahon MP, Member for Macalister

Mr Daniel Purdie MP, Member for Ninderry

Mr Adrian Tantari MP, Member for Hervey Bay

*Mr Andrew Powell MP, Member for Glass House, participated as a substitute member for Mr Michael Crandon MP, Member for Coomera, for the committee’s public hearing for the consideration of the 2022-23 portfolio budget estimates

Committee Secretariat

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Acknowledgements

The committee thanks the: • Premier and Minister for the Olympics • Treasurer and Minister for Trade and Investment, and • Minister for Tourism, Innovation and Sport and Minister Assisting the Premier on

Olympics and Paralympics Sport and Engagement.

The committee also acknowledges the assistance provided by the departmental officers who contributed to the work of the committee during the estimates process.

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Economics and Governance Committee i

Contents Chair’s foreword ii

1 Introduction 1

1.1 Role of the committee 1 1.2 Aim of this report 2 1.3 Participation by other Members 2

2 Recommendation 1

3 Premier and Minister for the Olympics 2

3.1 Department of Premier and Cabinet 2 3.1.1 Budget overview 3 3.1.2 Budget highlights 4 3.1.3 Capital program 4

3.2 Office of the Governor 4 3.2.1 Budget overview 5

3.3 Public Service Commission 6 3.3.1 Budget overview 6

3.4 Queensland Audit Office 7 3.4.1 Budget overview 7

3.5 Key issues raised during consideration of the budget estimates 8

4 Treasurer and Minister for Trade and Investment 11

4.1 Queensland Treasury 12 4.1.1 Budget overview 12 4.1.2 Budget highlights 14 4.1.3 Capital program 14

4.2 Motor Accident Insurance Commission/Nominal Defendant 14 4.2.1 Budget overview 14

4.3 Trade and Investment Queensland 15 4.3.1 Budget overview 15

4.4 Key issues raised during consideration of the budget estimates 16

5 Minister for Tourism, Innovation and Sport and Minister Assisting the Premier on Olympics and Paralympics Sport and Engagement 20

5.1 Department of Tourism, Innovation and Sport 20 5.1.1 Budget highlights 21 5.1.2 Capital program 22

5.2 Tourism and Events Queensland 22 5.2.1 Key issues raised during consideration of the budget estimates 23

6 Statement of Reservation 27

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Chair’s foreword

This report presents a summary of the committee’s examination of the budget estimates for the 2022-23- financial year.

Consideration of the budget estimates allows for the public examination of the responsible Ministers and the chief executive officers of agencies within the committee’s portfolio areas. This was undertaken through the questions on notice and public hearing process.

The committee has recommended that the proposed expenditure, as detailed in the Appropriation (2022-2023) Bill 2022 for the committee’s areas of responsibility, be agreed to by the Legislative Assembly without amendment.

On behalf of the committee, I thank the Premier and Minister for the Olympics, Treasurer and Minister for Trade and Investment, and the Minister for Tourism, Innovation and Sport and Minister Assisting the Premier on Olympics and Paralympics Sport and Engagement, and their departmental officers for their co-operation in providing information to the committee throughout this process.

I would also like to thank the members of the committee for their hard work and valuable contribution to the estimates process, and other members whose participation in the hearing provided additional scrutiny of the estimates.

Finally, I thank the committee’s secretariat and other Parliamentary Service staff for their assistance throughout the estimates process.

Linus Power MP

Chair

August 2022

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1 Introduction 1.1 Role of the committee The Economics and Governance Committee (committee) is a portfolio committee of the Legislative Assembly which commenced on 26 November 2020 under the Parliament of Queensland Act 2001 and the Standing Rules and Orders of the Legislative Assembly.1

The committee’s primary areas of responsibility are:

• Premier and Cabinet and Olympic and Paralympic Games

• Treasury, Trade and Investment

• Tourism, Innovation and Sport.

The committee also has a monitor and review role in relation to the performance of the functions of the Queensland Integrity Commissioner and Auditor-General, which are set out in the statute and in the Standing Rules and Orders of the Legislative Assembly (Standing Orders). 2

On 24 June 2022, the Appropriation Bill 2022 and the estimates for the committee’s area of responsibility were referred to the committee for investigation and report.3

In making this referral, the Legislative Assembly agreed to a resolution setting out dates and specified timeframes for each portfolio committee to hold its estimates hearing, and requiring the committees to report back to the Assembly on the referred estimates by 12 August 2022.4

In keeping with the Assembly’s direction, on 26 July 2022, the committee conducted a public hearing and took evidence about the proposed expenditure from the Premier and Minister for the Olympics (Premier), Treasurer and Minister for Trade and Investment (Treasurer), and the Minister for Tourism, Innovation and Sport and Minister Assisting the Premier on Olympics and Paralympics Sport and Engagement (Minister) and other witnesses. A copy of the transcript of the hearing is available on the committee’s webpage.

Prior to the public hearing, the committee provided the Premier, Treasurer and Minister with questions on notice in relation to the estimates. Responses to all the questions were received.

These answers to the committee’s pre-hearing questions on notice are available on the committee’s estimates webpage and are included in a volume of additional information tabled with this report. The transcript and broadcast of the committee’s hearing are also available on the committee’s estimates webpage5.

1 Parliament of Queensland Act 2001, s 88 and Standing Order 194. 2 See Integrity Act 2009; Auditor-General Act 2009; Standing Orders, schedule 6 and s 194A. Standing Orders,

Schedule 6; Auditor-General Act 2009, ss 9, 11, 12, 12A, 18, 21, 38A, 68, 70; Integrity Act 2009, ss 68, 74, 78, 80, 81, 82, 85, 86, 88, 89.

3 Standing Order 177 provides for the automatic referral of the Annual Appropriation Bills to portfolio committees once the Bills have been read a second time.

4 Queensland Parliament, Record of Proceedings, 22 June 2022, pp 1629-1632. 5 Economics and Governance Committee, Consideration of 2022-2023 Portfolio Budget Estimates,

https://www.parliament.qld.gov.au/Work-of-Committees/Committees/Committee- Details?cid=167&id=4182

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1.2 Aim of this report This report summarises the estimates referred to the committee and highlights some of the issues the committee examined.

The committee considered the estimates referred to it by using information contained in:

• budget papers

• answers to pre-hearing questions on notice

• evidence taken at the hearing

• additional information given in relation to answers.

1.3 Participation by other Members The committee gave leave for other Members to participate in the hearing. The following Members participated:

• Mr David Crisafulli MP, Leader of the Opposition and Member for Broadwater

• Mr Michael Berkman, Member for Maiwar

• Mr David Janetzki MP, Member for Toowoomba South

• Mr Robbie Katter MP, Member for Traeger

• Dr Amy MacMahon MP, Member for South Brisbane

• Mr Tim Mander MP, Member for Everton

• Mr Sam O’Connor MP, Member for Bonney

• Ms Fiona Simpson MP, Member for Maroochydore

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2 Recommendation Pursuant to Standing Order 187(1), the committee must state whether the proposed expenditures referred to it are agreed to.

The committee agrees to the portfolio area expenditures as proposed and recommends they be approved by the Legislative Assembly.

Recommendation 1

The committee recommends that the proposed expenditure, as detailed in the Appropriation Bill 2022 for the committee’s areas of responsibility, be agreed to by the Legislative Assembly without amendment.

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3 Premier and Minister for the Olympics The Premier has responsibility for the following agencies, services and statutory entities:

• the Department of the Premier and Cabinet (DPC)

• Office of the Governor

• Public Service Commission (PSC)

• Queensland Audit Office.6

The Premier’s responsibilities also include:

• Screen Industry Development, through which DPC administers funding for Screen Queensland

• the administration of the Integrity Act 2009, under which the Integrity Commissioner operates

• Veteran’s Affairs.7

To assist the committee with its consideration of portfolio estimates, and in keeping with the requirements of Schedule 7 of the Standing Orders, the Auditor-General, Acting/Integrity Commissioner, and chief executives of the Office of the Governor, the PSC and Screen Queensland were present at the hearing on 26 July 2022.8

3.1 Department of Premier and Cabinet The Honourable Annastacia Palaszczuk MP, Premier and Minister for the Olympics, is the Minister responsible for the Department of the Premier and Cabinet. DPC is the lead, central agency of the Queensland Public Service, with 5 service areas as follows:

• Policy Advice and Coordination, and Cabinet Support

• Governance Support and Advisory Services

• Engagement and Events Support

• Brisbane 2032 Taskforce

• Legislative drafting and e-Publishing.9

The objectives of these services areas are to:

• lead collaborative policy development across government, to achieve effective outcomes for Queensland

• ensure a strong and accountable system of government

• lead collaborative communication and engagement across government, and internationally, to achieve effective outcomes for Queensland

• lead Brisbane 2032 Olympic and Paralympic Games (Brisbane 2032) planning and integration

• draft and provide access to Queensland legislation of the highest standard.10

6 Queensland Budget 2022-23, Service Delivery Statements (SDS), DPC, p (i). 7 Administrative Arrangements Order (No. 2) 2021, p 2. 8 Schedule 7 of the Standing Orders sets out a list of statutory entities to which direct questioning of chief

executives at estimates applies. 9 Queensland Budget, 2022-23, SDS, DPC, p 1. 10 Queensland Budget 2022-23, SDS, DPC, p 1.

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3.1.1 Budget overview

The proposed budget comprises $144.9 million in departmental expenditure and almost $126.4 million in funding to be administered by DPC on behalf of the state.8

The proposed $144.9 million in departmental expenses represents an increase of $29.3 million on estimated actual departmental spending in 2021-22, which the DPC Service Delivery Statements state is to ‘support the Brisbane 2032 Taskforce to lead Brisbane 2032 Olympic and Paralympic Games related activities across the Queensland Government’ and ‘establish a Commission of Inquiry to examine Queensland Police Service responses relating to domestic and family violence’.11

The planned $126.4 million in administered expenses marks a $4 million decrease on DPC’s estimated actual expenditure (from $130.4 million) and an almost $14.5 million decrease on the 2021-22 budgeted amount. This is due to Trade and Investment Queensland (TIQ) transferring from the Premier’s portfolio from 1 November 2021.12 Administered expenses in the 2022-23 budget include:

• $59.9 million for Ministerial Offices and the Office of the Leader of the Opposition, an increase of $3.7 million from the 2021–22 estimated actual departmental spending, primarily due to deferrals to fund priority information and communications technology (ICT) projects and employee cost increases including the impact of enterprise bargaining arrangements

• $66.1 million in grant funding to be provided to Screen Queensland, an increase of $19 million from the 2021–22 estimated actual departmental spending, primarily due to additional funding provided in the 2022–23 Budget for the development and operation of the Far North Queensland (FNQ) studio facility in Cairns, and the deferral of existing funding for the FNQ studio and the Gold Coast production hub.13

To fund this budgeted expenditure, the Appropriation Bill 2022 proposes that DPC receive a departmental appropriation of $131.6 million in 2022-23, with the remainder of the $13.3 million in planned departmental spending to be financed through a combination of user charges and fees, grants and other contributions, interest and distributions from managed funds, and other revenue.14

The following table taken from the Appropriation Bill 2022 illustrates the combined total of the cash appropriations for the department for 2022-23, compared with the budgeted and actual cash appropriations for DPC in 2021-22.

Appropriations Budget

2021-22 $’000

Est. Actual 2021-22

$’000

Vote 2022-23

$’000

Controlled Items

departmental services 99,816 100,354 131,627

equity adjustment .. .. 1,500

Administered Items 167,549 126,379 127,314

Vote 267,365 226, 733 260,441

Source: Appropriation Bill 2022, Schedule 2, p. 11.

11 Queensland Budget 2022-23, SDS, DPC, p 11. 12 Queensland Budget 2022-23, SDS, DPC, pp 11, 15. 13 Queensland Budget 2022-23, SDS, DPC, p 11. 14 Queensland Budget 2022-23, SDS, DPC, p 12.

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As highlighted in the table, the total combined 2022-23 appropriation of $260.4 million represents a slight decrease of approximately $6.9 million on last year’s budgeted appropriations, but an increase of $33.7 million on the estimated actual total appropriations for the department in 2021-22.

The difference between the 2021–22 budgeted amount and the 2021–22 Estimated Actual amount is due to ‘restrictions in place during the COVID-19 pandemic and severe weather events in early 2022 which impacted the form of delivery and the average cost of supporting Regional and Community Cabinet meetings, with a reduction in travel and hospitality related expenses’.15

3.1.2 Budget highlights The 2022-23 budget highlights for DPC include:

• $59.3 million over 4 years and $4.7 million per annum ongoing from 2026–27 to support the Brisbane 2032 Taskforce to lead Brisbane 2032 Olympic and Paralympic Games related activities across the Queensland Government

• $100 million over 4 years to establish the Go for Gold Fund (School Sports Infrastructure) which will see the Department of Education deliver new and upgraded sports infrastructure for schools across the state, with a focus on promoting health and wellbeing, facilitating increased community use of school sports facilities and encouraging sports participation

• increased funding of $13.8 million over 6 years from 2021–22 for the development and operation of the Far North Queensland studio facility, bringing the total funding for the studio to $20.6 million

• $3.5 million allocated over the 2021–22 and 2022–23 financial years, to establish a Commission of Inquiry to examine Queensland Police Service responses relating to domestic and family violence.16

3.1.3 Capital program

Capital purchases of $883,000 have been planned by DPC in 2022-23 for ongoing upgrades and maintenance of existing Ministerial Services ICT systems, departmental ICT systems and other minor works. DPC’s 2022-23 budget also provides for capital grants of $16.1 million, which includes $12.1 million for the Far North Queensland film studio in Cairns and $2.5 million for the Gold Coast production hub. In addition, $1.5 million (of a total $4 million) has been set aside for the Queensland Remembers Grants Program, to support ex-service organisations and not-for-profit organisations that provide services to veterans to upgrade their buildings, facilities and equipment.17

3.2 Office of the Governor The Premier also has ministerial responsibility for the budget of the Office of the Governor which has a separate appropriation.

The Office of the Governor (the Office) is an independent entity that provides executive, administrative, logistical and personal support that enables the Governor to effectively exercise the constitutional powers and responsibilities, and to undertake constitutional and ceremonial duties and community activities. The Office is also responsible for maintaining the Government House Estate in partnership with the Department of Energy and Public Works.18

15 Queensland Budget 2022-23, SDS, DPC, p 4. 16 Queensland Budget 2022-23, SDS, DPC, p 3. 17 Queensland Budget 2022-23, Capital Statement – Budget Paper No. 3, p 69. 18 Queensland Budget 2022-23, SDS, DPC, p 3.

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In 2022-23, the objectives of the Office are to:

• support the Governor in safeguarding Queensland’s Constitution and democratic system of government

• support the Governor in fulfilling ceremonial responsibilities

• facilitate the Governor’s civic and community engagement with all Queenslanders

• promote Queensland by supporting Queensland’s trade, investment and cultural endeavours locally and internationally

• provide strong corporate governance and management and continuously improve performance, capability, accountability and value for money service delivery through the implementation of emerging information and communication technology

• provide efficient and effective stewardship of the Government House Estate.

3.2.1 Budget overview The budgeted expenditure for 2022-23 totals almost $11.2 million, which is funded solely by appropriation revenue. This reflects an increase of almost $2.8 million on the Office’s 2021-22 estimated actual appropriation funding. The SDS states the increase is primarily due to additional funding of $2.5 million to support the expanded work program of the new Governor of Queensland and to enhance security measures at the Government House Estate.19

The following table taken from the Appropriation Bill 2022 compares the appropriations for the office for 2021-22 and 2022-23.

Appropriations Budget

2021-22 $’000

Est. Actual 2021-22

$’000

Vote 2022-23

$’000

Controlled Items

departmental services 8,328 8,404 11,179

equity adjustment .. .. ..

Administered Items .. .. ..

Vote 8,328 8,404 11,179

Source: Appropriation Bill 2022, Schedule 2, p. 13.

In the 2022-23 appropriations, the government is providing:

• increased funding of $2.6 million over 4 years and $680,000 per annum ongoing to support the expanded work program of the new Governor of Queensland

• additional funding of $1.8 million in 2022–23 for the provision of enhanced security measures at the Government House Estate. Funding of $420,000 is being met internally by the Office to complete the upgrade program, bringing total funding to $2.3 million in 2022–23.20

19 Queensland Budget 2022-23, SDS, DPC, p 24. 20 Queensland Budget 2022-23, SDS, DPC, p 20.

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3.3 Public Service Commission The Public Service Commission (PSC) is an independent central agency of government whose role is to ‘advise, connect, support and partner with the public sector to deliver the best outcomes for Queenslanders’.21 The PSC’s vision is for ‘a high performing, future-focused public sector for Queensland’22 and its objectives are to:

• support public sector agencies to effectively manage their workforces

• build a highly capable and responsive public sector workforce

• support the public sector to prepare for and respond to strategic workforce challenges.23

The Integrity Commissioner—an independent officer of the Queensland Parliament who reports to the committee—is administratively included in the PSC and responsible for providing advice to designated persons, raising awareness on ethics and integrity issues, and maintaining the Register of Lobbyists.24

3.3.1 Budget overview The PSC’s operating expenditure for 2022-23 is $16 million, an increase of $1 million over the 2021-22 2021-22 estimated actual budget.25 The SDS states the increase is primarily due to the impact of enterprise bargaining arrangements and the deferral of funding for:

• the delivery of leadership and learning programs delayed due to the COVID-19 disruptions

• the implementation of improved gender equity and diversity outcomes across the public sector

• the renewal and procurement of digital platforms contracts to support workforce management functions undertaken by the PSC.26

It is proposed that the PSC will receive $14.8 million in appropriation revenue, with the remainder of the PSC’s $16 million in operating expenses to be funded by other revenue.27 The following table shows the proposed appropriations for the PSC for 2021-22, compared with the budgeted and actual cash appropriations for the PSC in 2021-22.

Appropriations Budget

2021-22 $’000

Est. Actual 2021-22

$’000

Vote 2022-23

$’000

Controlled Items

departmental services 13,979 13,460 14,828

equity adjustment .. .. ..

Administered Items .. .. ..

Vote 13,979 13,460 14,828

Source: Appropriation Bill 2022, Schedule 2, p. 15.

21 Queensland Budget 2022-23, SDS, DPC, p 29. 22 Queensland Budget 2022-23, SDS, DPC, p 29. 23 Queensland Budget 2022-23, SDS, DPC, p 29. 24 Queensland Budget 2022-23, SDS, DPC, p 29. 25 Queensland Budget 2022-23, SDS, DPC, p 34. 26 Queensland Budget 2022-23, SDS, DPC, p 34. 27 Queensland Budget 2022-23, SDS, DPC, p 34.

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3.4 Queensland Audit Office The Queensland Audit Office (QAO) is Parliament’s independent auditor of the Queensland Public Sector whose objective is to provide independent, timely, and valued assurance and insights to achieve better public services.28 The QAO conducts financial and performance audits to provide public confidence in the reliability of public sector entity financial statements and operating performance, and provides recommendations on how delivery of public services can be improved.29

The QAO’s objectives are to:

• support and inspire its people (including its audit service providers) to best serve Parliament and its clients

• have those served by the QAO trust and value its services and insights

• use contemporary auditing practices to deliver services that are used to improve accountability and performance.30

3.4.1 Budget overview The proposed appropriation revenue for the QAO for 2022-23 at $7.3 million is $300,000 higher than the estimated actual appropriation for 2021-22. However, appropriation funding comprises only approximately 16% of the QAO’s overall income, with the majority of the QAO’s revenue coming from user charges and fees. For 2022-23, it is anticipated that the QAO’s income from other revenue will be $39.3 million, a $1.8 million decrease on the estimated actual amount for this income source in 2021-22.

As a result, the QAO’s total income will reduce by $1.5 million from $48.1 million in 2021-22 (estimated actual income), to $46.6 million in 2022-23. The SDS states this reduction ‘reflects timing differences between when work is performed and when it is planned to be performed’, which is impacted by the audit readiness of clients and progression of machinery-of-government changes.31

The following table shows the proposed appropriations for the QAO for 2021-22, compared with the budgeted and actual cash appropriations for the QAO in 2021-22.

Appropriations Budget

2021-22 $’000

Est. Actual 2021-22

$’000

Vote 2022-23

$’000

Controlled Items

departmental services 7,014 6,993 7,301

equity adjustment .. .. ..

Administered Items .. .. ..

Vote 7,014 6,993 7,301

Source: Appropriation Bill 2022, Schedule 2, p. 15.

28 Queensland Budget 2022-23, SDS, DPC, pp 39-40. 29 Queensland Budget 2022-23, SDS, DPC, p 40. 30 Queensland Budget 2022-23, SDS, DPC, p 39. 31 Queensland Budget 2022-23, SDS, DPC, p 43.

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The SDS also notes total expenses are estimated to be $47.1 million in 2022-23, reflecting a slight increase of $204,000 on 2021-22.32

3.5 Key issues raised during consideration of the budget estimates Matters considered by the committee in relation to the estimates for the portfolio areas of Premier and Cabinet, and Olympics and Paralympic Games included:

• cost-of-living support for Queenslanders33

• health and hospital infrastructure funding and capacity expansion programs to address demand pressures on emergency departments and ambulance ramping34

• funding for mental health35

• investment in, and measures to address, land supply for housing and social housing, particularly those in the high or very high need categories36

• policies identified to ensure that the 2032 Olympic Games do not drive increased housing stress and homelessness37

• integrity and electoral laws, regulation of lobbying, and transparency of non-lobbying engagement38

• number of meeting requests received from businesses for meetings with the Premier, and number held with the Premier or her office39

• Queensland’s preparedness and funding to support preparations for the Brisbane 2032 Olympic and Paralympic Games, short-term deliverables for the Brisbane 2032 Taskforce, impact of the Olympic Games on Queensland infrastructure, benefits for regional Queensland and legacy of the Olympic Games40

• prioritising commitment of funds to Olympic infrastructure over rural health infrastructure41

32 Queensland Budget 2022-23, SDS, DPC, p 43. 33 Public hearing transcript, Brisbane, 26 July 2022, p 28; Premier and Minister for the Olympics (Premier),

response to pre-hearing question on notice no. 1. 34 Public hearing transcript, Brisbane, 26 July 2022, pp 18-19, 43, 44, 46; Premier, response to pre-hearing

question on notice no. 2. 35 Public hearing transcript, Brisbane, 26 July 2022, p 27. 36 Public hearing transcript, Brisbane, 26 July 2022, pp 29, 30, 43, 44; Premier, response to pre-hearing

question on notice no. 3, 15. 37 Public hearing transcript, Brisbane, 26 July 2022, p 44. 38 Public hearing transcript, Brisbane, 26 July 2022, p 31; Premier, response to pre-hearing question on notice

no. 4. 39 Public hearing transcript, Brisbane, 26 July 2022, p 47; Premier, response to pre-hearing question on notice

no. 17. 40 Public hearing transcript, Brisbane, 26 July 2022, pp 33-34; Premier, response to pre-hearing question on

notice no. 5, 11. 41 Public hearing transcript, Brisbane, 26 July 2022, pp 26-27.

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• support for job creation across Queensland, including in small business, the manufacturing industry, traditional industries, including managing biosecurity risks, and diversified industries following the pandemic42

• development of the screen industry, including additional funding for the Far North Queensland multipurpose film studio43

• level of staffing to support the Premier and the Department of Premier and Cabinet, including in regional Queensland44

• amount of funding provided for Jackie Trad's legal costs45

• resignation of the former Integrity Commissioner and recruitment for the role of Integrity Commissioner, and appointment of an Acting Integrity Commissioner46

• independence of the Integrity Commissioner and role of the Public Service Commission in the financial operation and administrative performance of the office supporting the Integrity Commissioner47

• CCC investigation into the laptop taken from the office of the Integrity Commissioner, access to the laptop and implementation of the CCC’s recommendations48

• contents of the interim report issued by Professor Peter Coaldrake49

• implementation of the Coaldrake Review’s recommendations, including timing of release of cabinet documents50

• support for whistleblowers51

• management and review of complaints regarding sexual harassment, sexual assault or bullying of ministerial, electorate office and opposition staff, and update on the Special Commissioner for Equity and Diversity’s investigations into the reestablishment of the Sexual Harassment Referral Office and the development of a Sexual Harassment Code of Practice52

• engagement of uComms by the Queensland Government to undertake research during the 2022/23 financial year, including the nature of the research to be undertaken and the cost53

42 Public hearing transcript, Brisbane, 26 July 2022, pp 28, 32, 41-42, 47; Premier, response to pre-hearing

question on notice no. 6. 43 Public hearing transcript, Brisbane, 26 July 2022, p 34; Premier, response to pre-hearing question on notice

no. 10. 44 Public hearing transcript, Brisbane, 26 July 2022, p 45, 47; Premier, response to pre-hearing question on

notice no. 13. 45 Premier, response to pre-hearing question on notice no. 16. 46 Public hearing transcript, Brisbane, 26 July 2022, pp 13-15; Premier, response to pre-hearing question on

notice no. 18. 47 Public hearing transcript, Brisbane, 26 July 2022, pp 15-16, 37. 48 Public hearing transcript, Brisbane, 26 July 2022, pp 38-39. 49 Public hearing transcript, Brisbane, 26 July 2022, pp 16-17. 50 Public hearing transcript, Brisbane, 26 July 2022, pp 21-22, 23, 45. 51 Public hearing transcript, Brisbane, 26 July 2022, p 21. 52 Public hearing transcript, Brisbane, 26 July 2022, p 36; Premier, response to pre-hearing question on notice

no. 19. 53 Premier, response to pre-hearing question on notice no. 20.

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• impact of COVID-19 on Queenslanders and modelling or advice for Queenslanders regarding the current wave of COVID-1954

• state government support for Queenslanders during natural disasters, such as the recent South-East Queensland floods55

• trade and investment strategy support for exports and attracting investment over the next 10 years, and opportunities to strengthen partnerships with Pacific nations56

• funding for industries, including aquaculture57

• update on the investigation being undertaken by the Auditor-General into the Wellcamp quarantine facility (as requested by the Deputy Leader of the Opposition), and lines of inquiry58

• the CopperString project as part of the 10-year Queensland energy plan59

• impact of historical leasing arrangements on 1 William Street on the cost of office accommodation60

• discontinuation of: measure of proportion of young offenders who have another charged offence;61 targets for the percentage of category 2 and 3 elective surgery patients treated within the clinically recommended times;62 measurement of Patient Off Stretcher Time;63 targets for the percentage of vulnerable children visited by community visitors in accordance with the designated visiting schedules; 64 target for the number of people with a disability receiving departmental accommodation support services65

• discrepancy in the budget versus actuals in the 2021/22 financial year for capital grants66

• benefits to Queensland from the ongoing investment in the Events Sponsorship Fund67

• strengthening partnerships with regional communities68

• support for veterans and the veterans’ community including planned future initiatives69

• progressing reconciliation in Queensland70

54 Public hearing transcript, Brisbane, 26 July 2022, p 18. 55 Public hearing transcript, Brisbane, 26 July 2022, p 19. 56 Public hearing transcript, Brisbane, 26 July 2022, pp 20-21. 57 Public hearing transcript, Brisbane, 26 July 2022, p 48. 58 Public hearing transcript, Brisbane, 26 July 2022, pp 24-25. 59 Public hearing transcript, Brisbane, 26 July 2022, p 25. 60 Public hearing transcript, Brisbane, 26 July 2022, p 26. 61 Public hearing transcript, Brisbane, 26 July 2022, pp 30, 43. 62 Public hearing transcript, Brisbane, 26 July 2022, pp 30, 43. 63 Premier, response to pre-hearing question on notice no. 14. 64 Public hearing transcript, Brisbane, 26 July 2022, pp 31, 43. 65 Public hearing transcript, Brisbane, 26 July 2022, pp 31, 43. 66 Premier, response to pre-hearing question on notice no. 12. 67 Premier, response to pre-hearing question on notice no. 7. 68 Premier, response to pre-hearing question on notice no. 8. 69 Public hearing transcript, Brisbane, 26 July 2022, pp 40-41; Premier, response to pre-hearing question on

notice no. 9. 70 Public hearing transcript, Brisbane, 26 July 2022, p 34.

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• environmental protection and climate change71

• funding for tourism industry development72

• strategies to prevent domestic and family violence in Queensland73

• equipping the Queensland Police Service74

• equipping TAFE75

• water infrastructure76

• representation and economic participation of women in Queensland77

• support for the arts sector78

• cost of the mail-out by the Leader of the Opposition.79

4 Treasurer and Minister for Trade and Investment The Treasurer and Minister for Trade and Investment, the Honourable Cameron Dick MP, has responsibility for:

• Queensland Treasury (Treasury)

• Motor Accident Insurance Commission/Nominal Defendant

• Trade and Investment Queensland.80

In addition, the Treasurer is responsible for the administration of the Government Owned Corporations Act 1993, National Injury Insurance Scheme (Queensland) Act 2016, Queensland Competition Authority Act 1997, Queensland Investment Corporation Act 1991, Queensland Treasury Corporation Act 1988, and the South East Queensland Water (Restructuring) Act 2007. This legislation governs the operations of:

• the National Injury Insurance Agency, Queensland

• the Queensland Competition Authority

71 Public hearing transcript, Brisbane, 26 July 2022, p 35. 72 Public hearing transcript, Brisbane, 26 July 2022, p 39. 73 Public hearing transcript, Brisbane, 26 July 2022, p 40. 74 Public hearing transcript, Brisbane, 26 July 2022, p 41. 75 Public hearing transcript, Brisbane, 26 July 2022, p 41. 76 Public hearing transcript, Brisbane, 26 July 2022, p 42. 77 Public hearing transcript, Brisbane, 26 July 2022, p 47. 78 Public hearing transcript, Brisbane, 26 July 2022, p 48. 79 Public hearing transcript, Brisbane, 26 July 2022, p 27, 49. 80 Queensland Budget 2022-23, Service Delivery Statements (SDS), Queensland Treasury (Treasury), p (i). The Treasurer administers the Trade and Investment Queensland Act 2013 except to the extent

administered by the Minister for Tourism, Innovation and Sport and Minister Assisting the Premier on Olympics and Paralympics Sport and Engagement for international education and training.

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12 Economics and Governance Committee

• Queensland Investment Corporation (QIC) Limited, Queensland Treasury Corporation (QTC), and all government owned corporations (GOCs) for which the Treasurer is a shareholding Minister81

• two statutory entities with commercial operations—Queensland Rail, and the Queensland Bulk Water Supply Authority (Seqwater).

In keeping with the requirements of Schedule 7 of the Standing Orders, the chief executives of each of these entities were present at the hearing on 26 July 2022 to assist the committee with its consideration of the portfolio estimates.

4.1 Queensland Treasury Treasury’s vision is for a strong economy for all Queenslanders, guided by its purpose of driving government priorities through expert advice and services.82 Activities to support this vision are coordinated via Treasury’s five service areas:

• economics and productivity

• fiscal

• agency performance

• commercial and investment

• revenue management.83

These service areas align with Treasury’s objectives, which are to:

• grow the Queensland economy and create jobs

• deliver fiscal sustainability

• empower our workforce for the future

• drive public sector improvement.84

4.1.1 Budget overview Treasury’s budgeted expenditure for 2022-23 is $578.8 million, an increase of $108.4 million on the estimated actual spending in 2021-22. The SDS states this is mainly due to ‘an increase in grant payments associated with the Invested in Queensland program, and provisional expenses associated with the emerging whole-of-government priorities and the Financial Provisioning (FP) Scheme’.85

81 Queensland Treasury (QT) monitors the performance of all government-owned corporations (GOCs) on

behalf of the Treasurer. These GOCs include energy generators CS Energy Ltd and Stanwell Corporation Ltd; renewable energy

generator CleanCo Queensland; energy transmission entity the Queensland Electricity Transmission Corporation Limited (Powerlink Queensland); energy distributor Energy Queensland Limited; ports operators Far North Queensland Ports Corporation Limited (Ports North), Gladstone Ports Corporation Limited, North Queensland Bulk Ports Corporation Limited, and Port of Townsville Limited; water body SunWater Limited; and QIC Limited. See: QT, ‘Government Owned Corporations’, https://www.treasury.qld.gov.au/queenslands-economy/government-owned-corporations/

See also Standing Rules and Orders of the Legislative Assembly, Schedule 7. 82 Queensland Budget 2022-23, SDS, Treasury, p 1. 83 Queensland Budget 2022-23, SDS, Treasury, p 1. 84 Queensland Budget 2022-23, SDS, Treasury, p 1. 85 Queensland Budget 2022-23, SDS, Treasury, p 12.

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According to the SDS, these increases are ‘partially offset by lower grant payments for Advance Queensland Industry Attraction Fund and the Industry Support Package’.86

Total expenses are estimated to decrease from 2023-24 due to ‘cost reduction over time for a number of initiatives, including the Jobs and Regional Growth Fund and the Advance Queensland Industry Attraction Fund’. 87 However, these decreases are ‘partially offset by increased grant payments under the Invested in Queensland program and additional costs associated with the annual wage increases’.88

In addition to this departmental expenditure, Treasury is responsible for overseeing significant administered revenue and expenses. The department receives a large proportion of the state’s taxation, royalties and Australian Government revenue, which is used to fund government priorities. Treasury administers major grant programs and provides funding to the Queensland Competition Authority and Trade and Investment Queensland.89

Treasury also administers the state's Queensland Future Fund - Debt Retirement Fund, which holds investments for future growth to be used to offset state debt when assessing Queensland's credit rating.90

In 2022-23, administered items expenditure by Treasury is expected to total $55.1 billion, up from an estimated actual $54.6 billion in 2021-22.91

The following table taken from the Appropriation Bill 2022 shows the proposed cash appropriations for Treasury for 2022-23, compared with the budgeted and actual cash appropriations for the department in 2021-22.

Appropriations Budget

2021-22 $’000

Est. Actual 2021-22

$’000

Vote 2022-23

$’000

Controlled Items

departmental services 477,879 412,205 520,311

equity adjustment 7,596 142,530 10,486

Administered Items 6,370,998 6,878,361 7,107,300

Vote 6,856,473 7,433,096 7,638,097

Source: Appropriation Bill 2022, Schedule 2, p. 17.

As illustrated in the table, the departmental appropriation for Treasury for 2022-23 is higher than in 2021-22.131

The proposed appropriation for administered items is also higher than the budgeted and estimated actual appropriations for administered funding in 2021-22. However, appropriation revenue will account for only around 12.7% of all income for administered items in 2022-23, with increases in other

86 Queensland Budget 2022-23, SDS, Treasury, p 12. 87 Queensland Budget 2022-23, SDS, Treasury, p 12. 88 Queensland Budget 2022-23, SDS, Treasury, p 12. 89 Queensland Budget 2022-23, SDS, Treasury, p 12. 90 Queensland Budget 2022-23, SDS, Treasury, p 12. 91 Queensland Budget 2022-23, SDS, Treasury, p 17.

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14 Economics and Governance Committee

revenue sources expected to finance the budgeted rise in administered expenditure for Treasury for the year.92

4.1.2 Budget highlights Budget highlights for Treasury include the government providing:

• $210 million over 4 years from 1 January 2023 to provide tax relief to small and medium businesses

• $32.2 million in 2022–23 to extend the 50 per cent payroll tax rebate on the exempt wages of apprentices and trainees until 30 June 2023

• $5 million over 2 years for measures to build capability and capacity in the Community Housing Provider (CHP) sector and to incentivise CHP participation in the Housing Investment Fund.93

4.1.3 Capital program For 2022-23, Treasury’s capital outlay of $219 million comprises capital grants including:

• $123.2 million through the Commonwealth Homebuilder Grant provided by the Australian Government, and delivered by the Queensland Government, to eligible applicants towards buying a new home or substantially renovating an existing home that will be owned and occupied

• $95.8 million through the Queensland First Home Owners' Grant to assist eligible first home buyers to enter the housing market.94

4.2 Motor Accident Insurance Commission/Nominal Defendant The Motor Accident Insurance Commission (MAIC) and the Nominal Defendant are statutory bodies established under the Motor Accident Insurance Act 1994. MAIC is the regulatory authority responsible for the ongoing management of the Compulsory Third Party (CTP) scheme in Queensland.95

The Nominal Defendant compensates people who are injured by the negligent driving of unidentified motor vehicles and/or motor vehicles without CTP insurance.96 Both entities are funded by a statutory levy within the CTP insurance program.97

MAIC’s objective is to manage the Motor Accident Insurance Scheme and the Nominal Defendant’s is for the benefit of the Queensland community.98

4.2.1 Budget overview MAIC’s total income is estimated to be $25.8 million in 2022–23, an increase of $0.2 million from the 2021–22 estimated actual income. This is due to an increase in the Statutory Insurance Scheme levy per vehicle from $1.50 in 2021–22 to $2.00 in 2022–23, combined with a reduction in the projected interest earnings in 2022–23.99

92 Queensland Budget 2022-23, SDS, Treasury, pp 14, 17. 93 Queensland Budget 2022-23, SDS, Treasury, p 3. 94 Queensland Budget 2022-23, SDS, Treasury, p 11. 95 Motor Accident Insurance Commission (MAIC), https://maic.qld.gov.au/about/maic/ 96 MAIC, Nominal Defendant, https://maic.qld.gov.au/about/nominal-defendant/ 97 MAIC, https://maic.qld.gov.au/about/maic/ MAIC Nominal Defendant, https://maic.qld.gov.au/about/nominal-defendant/ 98 Queensland Budget 2022-23, SDS, Treasury, p 21. 99 Queensland Budget 2022-23, SDS, Treasury, p 23.

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Total expenses for MAIC are estimated to be $36.7 million in 2022–23, a decrease of $1.3 million from the 2021–22 estimated actual expenditure. The SDS states that the 2022–23 Budget reflects ‘a reduction in proposed investment in targeted research and service delivery initiatives which benefit motorists through reducing the incidence and cost of road trauma’.100

While MAIC is projected to have an operating deficit of $10.9 million for 2022–23, the projected net asset position is $126.0 million. The major assets at the end of 2022–23 are $10 million in cash and $118.1 million in other financial assets, with no significant liabilities.101

The Nominal Defendant’s total income is estimated to be $48.1 million in 2022–23, representing a decrease of $22.3 million from the 2021–22 estimated actual income. This is primarily due to a reduction in the Nominal Defendant levy per policy Class 1 from $8.00 in 2021–22 to $5.00 in 2022–23. Also contributing is the decrease in the projected interest earnings in 2022–23.102

Total budgeted expenditure for the Nominal Defendant in 2022–23 is $43.2 million, representing a $2.2 million increase from 2021–22 estimated actual spending. The SDS states the increase ‘reflects the increase in estimated outstanding claims liability based on actuarial assessment’. The SDS indicates the Nominated Defendant is expecting a $4.9 million projected operating surplus for 2022–23.103

Key deliverables for MAIC/the Nominal Defendant in 2022-23 include:

• keeping the CTP scheme under review

• continuing to identify opportunities for alignment with the National Injury Insurance Agency Queensland to achieve efficiencies across the Queensland motor injury insurance schemes

• enhancing digital services for CTP scheme participants.104

4.3 Trade and Investment Queensland Trade and Investment Queensland (TIQ) is a statutory body established under the Trade and Investment Queensland Act 2013. TIQ’s purpose is to ‘foster trade and investment to deliver prosperity and employment now and for future generations’. TIQ delivers on its purpose via trade and investment missions and trade and investment services, with the following objectives:

• take Queensland to the world

• get Queensland goods into global value chains

• attract investment to support growth

• leverage people, skills and ideas.105

4.3.1 Budget overview In 2022-23, TIQ’s total income (and expenditure) is projected to be $69.3 million in 2022–23, an increase of $14.9 million from the 2021–22 estimated actual income (and expenditure). According to the SDS, the increase is ‘mainly driven by an increase in recurrent grants from Queensland Treasury to support the delivery of the Queensland Trade and Investment Strategy 2022–2032’.106 Revenue from

100 Queensland Budget 2022-23, SDS, Treasury, p 23. 101 Queensland Budget 2022-23, SDS, Treasury, p 23. 102 Queensland Budget 2022-23, SDS, Treasury, p 27. 103 Queensland Budget 2022-23, SDS, Treasury, p 27. 104 Queensland Budget 2022-23, SDS, Treasury, p 20. 105 Queensland Budget 2022-23, SDS, Treasury, p 31. 106 Queensland Budget 2022-23, SDS, Treasury, p 35.

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16 Economics and Governance Committee

Migration Queensland is also projected to increase by $0.3 million after the reopening of the international border post COVID-19.107

TIQ’s total expenses are estimated to increase from 2022–23 onwards ‘due to the implementation of Queensland Trade and Investment Strategy 2022–2032 with priorities to leverage global opportunities, drive diversity and value, create future growth and jobs, and champion global success in collaboration with all levels of Queensland government and businesses’.108

Key deliverables for TIQ in 2022-23 include:

• helping to mitigate impacts from geopolitical tensions by assisting exporters to explore and diversify into new markets by equipping exporters with quality and timely market intelligence/insights, valuable connections, e-commerce channel empowerment, and financial assistance

• identifying and addressing skill and knowledge gaps (including digital trading) within businesses, in addition to optimising talent attraction through Queensland’s visa nomination program

• championing Queensland’s innovative goods and services abroad, promoting the state’s ‘know- how’ to attract export and investment opportunities, and in particular communicate high-value opportunities related to the Brisbane 2032 Olympic and Paralympic Games.109

4.4 Key issues raised during consideration of the budget estimates Matters considered by the committee in relation to the portfolios of Treasury and Trade and Investment included:

• projected returns for the Housing Investment Fund, Carbon Reduction Investment Fund and Path to Treaty Fund110

• current asset holdings under the Debt Retirement Fund and the Queensland Future Fund111

• Queensland Treasury’s definition of funds ‘held centrally’112

• ratings given to Queensland by the major credit rating agencies for institutional framework, economy, financial management, budgetary performance, liquidity and debt burden113

• savings achieved, and savings expected to be achieved, via the Savings and Debt Plan114

• employee expenses for departments, including number of full-time equivalents and forecast wage increases115

107 Queensland Budget 2022-23, SDS, Treasury, p 35. 108 Queensland Budget 2022-23, SDS, Treasury, p 35. 109 Queensland Budget 2022-23, SDS, Treasury, p 35. 110 Treasurer and Minister for Trade and Investment (Treasurer), response to pre-hearing question on notice

no. 1. 111 Treasurer, response to pre-hearing question on notice no. 2. 112 Treasurer, response to pre-hearing question on notice no. 3. 113 Treasurer, response to pre-hearing question on notice no. 4. 114 Treasurer, response to pre-hearing question on notice no. 5. 115 Treasurer, response to pre-hearing question on notice no. 6.

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• drivers and assumptions that support the Queensland economic forecasts for 2022-23 and 2023- 24 for household consumption, dwelling investment, overseas good and services exports and overseas good and services imports116

• value and number of outstanding debtors for SPER117

• overview of the reasons for the 2021-22 estimated actual result of 0.05%, compared to the 2021- 22 targeted result of 0.08% for the measurement of ‘cost to manage the State’s resource sector estimated rehabilitation cost risk as a proportion of that risk’118

• backing data supporting the 83% overall customer satisfaction with policy and performance advice provided score119

• Queensland’s budget operating position, including when the government will be targeting a surplus and how this compares with other jurisdictions120

• to the return to Queensland from the value of coal 121

• how Queensland's economy compares with other jurisdictions on some of the main economic indicators collected by the ABS122

• performance of Queensland’s exports during the COVID-19 pandemic123

• the comparative size of the Government's concession Budget, and the kinds of concessions available to Queenslanders in the current financial year124

• returns on the Queensland Future Fund since its inception125

• progress of the government’s Financial Provisioning Scheme126

• steps the government is taking to adhere to its fiscal principles127

• update on the government’s commitment to Queensland’s flood recovery especially in Logan but also throughout the state128

• budget measures to support jobs in Hervey Bay129

• new or increased taxes130

116 Treasurer, response to pre-hearing question on notice no. 7. 117 Treasurer, response to pre-hearing question on notice no. 8. 118 Treasurer, response to pre-hearing question on notice no. 9. 119 Treasurer, response to pre-hearing question on notice no. 10. 120 Treasurer, response to pre-hearing question on notice no. 11. 121 Treasurer, response to pre-hearing question on notice no. 12; Public hearing transcript, Brisbane, 26 July

2022, pp 52-53, 57 and 58. 122 Treasurer, response to pre-hearing question on notice no. 13. 123 Treasurer, response to pre-hearing question on notice no. 14. 124 Treasurer, response to pre-hearing question on notice no. 15. 125 Treasurer, response to pre-hearing question on notice no. 16. 126 Treasurer, response to pre-hearing question on notice no. 17. 127 Treasurer, response to pre-hearing question on notice no. 18. 128 Treasurer, response to pre-hearing question on notice no. 19. 129 Treasurer, response to pre-hearing question on notice no. 20. 130 Public hearing transcript, Brisbane, 26 July 2022, pp 53-54.

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• government media releases131

• cost of trade visit to Dubai132

• meetings with Tabcorp133

• revenue forecast for land tax including interstate holdings134

• Queensland Government’s defined benefit superannuation scheme135

• progressive royalty tiers, including consultation136

• QTC loan to Ipswich City Properties137

• ANZ acquisition of Suncorp138

• valuation of the Titles Office139

• changes to royalties140

• payroll tax141

• governments and taxes142

• Residential Tenancies Authority funding model143

• TIQ and foot-and-mouth disease144

• key performance indicators for TIQ145

• update on CopperString 2.0 project146

• state government and local government taxes, fees and charges147

• State Penalties Enforcement Registry148

131 Public hearing transcript, Brisbane, 26 July 2022, p 54. 132 Public hearing transcript, Brisbane, 26 July 2022, pp 54-55 and 88. 133 Public hearing transcript, Brisbane, 26 July 2022, pp 55 and 60. 134 Public hearing transcript, Brisbane, 26 July 2022, pp 55-56, 60-61 and 88. 135 Public hearing transcript, Brisbane, 26 July 2022, p 56. 136 Public hearing transcript, Brisbane, 26 July 2022, pp 58-59 and 60. 137 Public hearing transcript, Brisbane, 26 July 2022, p 62. 138 Public hearing transcript, Brisbane, 26 July 2022, pp 62-63 and 88. 139 Public hearing transcript, Brisbane, 26 July 2022, pp 63-64, 67 and 88. 140 Public hearing transcript, Brisbane, 26 July 2022, pp 64-65 and 75. 141 Public hearing transcript, Brisbane, 26 July 2022, pp 65-66, 73-74, 80-83 and 88. 142 Public hearing transcript, Brisbane, 26 July 2022, pp 66-67. 143 Public hearing transcript, Brisbane, 26 July 2022, pp 67-68 and 88. 144 Public hearing transcript, Brisbane, 26 July 2022, pp 68-69. 145 Public hearing transcript, Brisbane, 26 July 2022, p 69. 146 Public hearing transcript, Brisbane, 26 July 2022, pp 69-70. 147 Public hearing transcript, Brisbane, 26 July 2022, pp 9, and 70-72. 148 Public hearing transcript, Brisbane, 26 July 2022, p 74.

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• Privacy Commissioner149

• Treasury’s advertising spend150

• the Housing Investment Fund151

• funding for Queensland’s racing industry152

• GST and Queensland’s revenue position153

• an update on Queensland’s borrowing position including government owned corporations154

• increase in net debt and impact on credit rating155

• interest rate expenses156

• funds in government’s long-term assets157

• human rights complaints158

• private business investment forecasts159

• government’s investment in Virgin Australia160

• Queensland’s credit rating and the rating agencies’ perspective on Queensland’s economic outlook161

• performance of Queensland Future Fund162

• Auditor-General inquiry into the Wellcamp Quarantine facility163

• savings measures,164productivity measures and red tape reduction165

• government’s commitment to funding for mental health166

• impacts of COVID-19 on population growth and implications for the budget.167

149 Public hearing transcript, Brisbane, 26 July 2022, p 74. 150 Public hearing transcript, Brisbane, 26 July 2022, pp 74 and 88. 151 Public hearing transcript, Brisbane, 26 July 2022, p 75. 152 Public hearing transcript, Brisbane, 26 July 2022, pp 75-76. 153 Public hearing transcript, Brisbane, 26 July 2022, pp 76-77. 154 Public hearing transcript, Brisbane, 26 July 2022, pp 77-79, and 83. 155 Public hearing transcript, Brisbane, 26 July 2022, pp 79-80. 156 Public hearing transcript, Brisbane, 26 July 2022, p 80. 157 Public hearing transcript, Brisbane, 26 July 2022, p 81. 158 Public hearing transcript, Brisbane, 26 July 2022, p 81 and 88. 159 Public hearing transcript, Brisbane, 26 July 2022, pp 82 and 88. 160 Public hearing transcript, Brisbane, 26 July 2022, p 82. 161 Public hearing transcript, Brisbane, 26 July 2022, pp 83-84. 162 Public hearing transcript, Brisbane, 26 July 2022, p 84. 163 Public hearing transcript, Brisbane, 26 July 2022, pp 84-85. 164 Public hearing transcript, Brisbane, 26 July 2022, p 85. 165 Public hearing transcript, Brisbane, 26 July 2022, pp 85-86. 166 Public hearing transcript, Brisbane, 26 July 2022, pp 87-88. 167 Public hearing transcript, Brisbane, 26 July 2022, p 89.

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5 Minister for Tourism, Innovation and Sport and Minister Assisting the Premier on Olympics and Paralympics Sport and Engagement

The Honourable Stirling Hinchliffe MP, Minister for Tourism, Innovation and Sport and Minister Assisting the Premier on Olympics and Paralympics Sport and Engagement, is the Minister responsible for the Department of Tourism, Innovation and Sport (DTIS). The department administers funds on behalf of the state which include provision of funding for Tourism and Events Queensland (TEQ) and Stadiums Queensland. TEQ is the Queensland Government’s lead marketing, experience development and major events agency and SQ supports and maintains the operation of sporting and entertainment facilities.168

The Minister has responsibility for the Act under which Trade and Investment Queensland (TIQ) is established (the Trade and Investment Queensland Act 2013 to the extent that it is relevant to international education and training).169

In keeping with the requirements of Schedule 7 of the Standing Orders,170 the chief executives of TEQ, Stadiums Queensland and TIQ were all present during the Minister’s examination at the hearing on 26 July 2021 to assist the committee with its consideration of the portfolio estimates.

5.1 Department of Tourism, Innovation and Sport The vision of DTIS is for the lives of Queenslanders to be enriched by visitor and innovation economies and places, healthy and active lifestyles, and inspirational extraordinary sporting success.171

DTIS’s purpose is to provide and attract investment to build more competitive visitor and innovation economies, inspire extraordinary sporting success through Queensland’s elite athletes and support healthier, active communities.172

DTIS’s objectives are to:

• drive economic recovery and growth by delivering and attracting tourism and innovation investment to sustain and create Queensland jobs

• maximise benefits of tourism, major sport and cultural events to realise Queensland’s economic and high-performance sporting potential

• support the creation of a diverse, productive and sustainable economy with increased opportunities for women, Indigenous peoples and business – especially in the regions.173

DTIS contains 3 service areas:

• Tourism Industry Development

• Advancing Queensland through Innovation, and

• Sport and Recreation.

168 Queensland Budget 2022-23, Service Delivery Statements, DTIS, p 9. 169 Administrative Arrangements Order (No.2) 2021, p 21. 170 Schedule 7 of the Standing Orders sets out a list of statutory entities to which direct questioning of chief

executives at estimates applies. 171 Queensland Budget 2022-23, Service Delivery Statements, DTIS, p 1. 172 Queensland Budget 2022-23, Service Delivery Statements, DTIS, p 1. 173 Queensland Budget 2022-23, Service Delivery Statements, DTIS, p 1.

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The Tourism Industry Development service area promotes the return and growth of a sustainable and competitive tourism industry, attracting capital investment and maximising the benefit of tourism and major events to boost Queensland’s economy.174

Advancing Queensland through Innovation seeks to drive economic growth and job creation through innovation in traditional and emerging strengths, harnessing Queensland’s research strengths and entrepreneurship to encourage new industries and using new technology, new skills capital and ideas to support business and industry creation, global connections and growth.175

Sport and Recreation aims to lead the sport and active recreation industry to support Queenslanders to participate through quality infrastructure and local environments, and by supporting pathways to assist Queenslanders to reach their full sporting potential.176

The following table taken from the Appropriation Bill 2022 shows the proposed cash appropriations for the department for 2022-23, compared with the budgeted and actual cash appropriations for DTIS in 2021-22.

Appropriations Budget

2021-22 $’000

Est. Actual 2021-22

$’000

Vote 2022-23

$’000

Controlled Items

departmental services 377,073 442,164 408,453

equity adjustment 23,497 11,259 14,463

Administered Items 126,559 158,928 195,524

Vote 527,129 612,351 618,440

Source: Appropriation Bill 2022, Schedule 2, p.12.

5.1.1 Budget highlights 2022-23 budget highlights for the department include:

• $254.2 million over 4 years to support Stadiums Queensland’s operations and capital activities to continue to operate and maintain the state’s portfolio of major sporting stadiums and high performance / community venues to a contemporary standard in the lead up to the Brisbane 2032 Olympic and Paralympic Games (Brisbane 2032)

• $80.2 million of additional funding over 3 years to support socio-economic recovery from COVID-19, maximise opportunities to increase physical activity participation including the delivery of infrastructure projects in line with Activate! Queensland 2019-2029 priorities

• $66.4 million of additional funding over 4 years to implement targeted initiatives for tourism recovery to help grow Queensland’s tourism industry and leverage benefits of the Brisbane 2032 and beyond through the delivery of initiatives focused on experience development, tourism infrastructure, ecotourism, events and First Nations tourism.177

174 Queensland State Budget 2022-23, Service Delivery Statements, DTIS, p 1. 175 Queensland State Budget 2022-23, Service Delivery Statements, DTIS, p 1. 176 Queensland State Budget 2022-23, Service Delivery Statements, DTIS, p 1. 177 Queensland State Budget 2022-23, Service Delivery Statements, DTIS, p 2.

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5.1.2 Capital program DTIS’s total capital outlays are estimated to be $123.5 million in 2022-23 consisting of a spend on capital purchases and capital grants which support tourism, innovation and sport and active recreation industries recovering from the impacts of COVID-19.178

Total capital purchases in 2022-23 are $18.4 million including:

• $11.1 million is allocated to Queensland Active Precincts to enhance existing state-owned sport and active recreation facilities at the Gold Coast, Sunshine Coast and Townsville to deliver quality experiences that inspire physical activity

• $7.3 million is allocated to the Wangetti Trail for a 94 kilometre walking and mountain bike trail from Palm Cove to Port Douglas, with public and eco-accommodation facilities.179

Total capital grants in 2022-23 are $105.1 million including:

• $24.2 million is allocated to local community sporting infrastructure projects currently underway, to encourage Queenslanders to be more active, more often as well as working to increase health and wellbeing outcomes across the state in line with key government priorities

• $14.7 million is allocated to support sport and recreation projects for minor facility improvements that support increased opportunities for Queenslanders to participate in sport and active recreation

• $10 million is allocated for Stage One redevelopment of the Sunshine Coast Stadium at Bokarina

• $9 million is allocated to the Minjerribah Futures program to progress the construction of the Quandamooka Art Museum and Performance Institute (QUAMPI) and auxiliary infrastructure for the recreational trail

• $8.9 million is allocated to projects approved under the Active Game Day program to support field of play participation enhancing works that meet local community requirements

• $6.2 million is allocated to grants to assist sport and active recreation organisations with the clean-up, repair or replacement of equipment or facilities damaged by the recent flooding event.180

5.2 Tourism and Events Queensland TEQ is a statutory body established under the Tourism and Events Queensland Act 2012. TEQ is the Queensland Government’s lead marketing, destination experience development and major events agency.181 The agency’s purpose is to achieve economic and social benefits for Queensland by growing the tourism and events industry in partnership with industry and government.182

TEQ’s objectives are to:

• contribute to the Queensland economy

• attract visitors to Queensland, generating overnight visitor expenditure

178 Queensland State Budget 2022-23, Service Delivery Statements, DTIS, p 8. 179 Queensland State Budget 2022-23, Service Delivery Statements, DTIS, p 8. 180 Queensland State Budget 2022-23, Service Delivery Statements, DTIS, p 8. 181 Tourism and Events Queensland (TEQ), https:// https://teq.queensland.com/au/en/industry/who-we-

are?redirect=about-teq-new 182 Queensland State Budget 2022-23, Service Delivery Statements, DTIS, p 16.

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• enhance the profile of Queensland

• foster community pride in Queensland.183

5.2.1 Key issues raised during consideration of the budget estimates Issues raised by the committee in relation to the portfolios of Tourism, Innovation and Sport included:

• an update on the Queensland Destination Events Program184

• development of the Wangetti Trail, including expenditure, funding, challenges, change in scope of the design and forecast completion date185

• restoration of the mountain bike access to Twin Bridges Track186

• an update on the funding for Advance Queensland, including an update on the Ignite Ideas Fund187

• an update on the FairPlay program188

• an update on $30 million Great Keppel Island Rejuvenation Project189

• an update on Cooloola Great Walk project190

• an update on the Emerging Athlete Pathways initiative191

• an update on enhancement of existing state-owned sport and active recreation facilities192

• an update on the Brisbane River Commercial Tourism Boat Operators assistance package193

• initiatives to address labour shortages in the tourism industry194

• funding allocated for events and marketing investment195

• DTIS employment forecasts196

• spend on the Advanced Technology and Innovation Centre in Rockhampton197

183 Queensland State Budget 2022-23, Service Delivery Statements, DTIS, p 16. 184 Minister, response to pre-hearing question on notice no.1. 185 Public hearing transcript, Brisbane, 26 July 2022, pp 93-95; Minister, response to pre-hearing question on

notice no. 2. 186 Public hearing transcript, Brisbane, 26 July 2022, p 95; Minister, response to pre-hearing question on notice

no. 2. 187 Minister, response to pre-hearing question on notice no. 3. 188 Minister, response to pre-hearing question on notice no. 4. 189 Minister, response to pre-hearing question on notice no. 6. 190 Minister, response to pre-hearing question on notice no. 7. 191 Minister, response to pre-hearing question on notice no. 8. 192 Minister, response to pre-hearing question on notice no. 9. 193 Minister, response to pre-hearing question on notice no. 10. 194 Minister, response to pre-hearing question on notice no. 13. 195 Minister, response to pre-hearing question on notice no. 14. 196 Minister, response to pre-hearing question on notice no. 15. 197 Minister, response to pre-hearing question on notice no. 16.

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• recipients of the Female Founders Program in 2021-22198

• sports grants and funding199

• updated status on the status of the Paluma to Wallaman Falls Trail200

• eligibility of funding under the Tourism Experience Development Fund for Springbrook Cableway201

• Tourism and Events Queensland and the Department of Tourism remaining as separate entities202

• the number of regional tourism organisations in Queensland203

• an update on the Activate! Queensland 2019-2029 strategy204

• an update on the action plan and targeted initiatives for tourism recovery, including an update on the current Hervey Bay whale-watching season205

• an update on legacy planning with reference to the Brisbane 2032 Olympic and Paralympic Games206

• Queensland Tourism Industry Reference Panel fund to develop significant new and visionary products and experiences207

• Tourism Experience Development Fund208

• Growing Tourism Infrastructure Fund209

• communication between senior departmental officers, ministerial staff and the Minister210

• estimated cost of damages incurred by community sporting organisations and clubs due to rainfall and flooding211

198 Minister, response to pre-hearing question on notice no. 17. 199 Minister, response to pre-hearing question on notice no. 19. 200 Public hearing transcript, Brisbane, 26 July 2022, p 95; Minister, response to pre-hearing question on notice

no. 12. 201 Public hearing transcript, Brisbane, 26 July 2022, p 96. 202 Public hearing transcript, Brisbane, 26 July 2022, p 96. 203 Public hearing transcript, Brisbane, 26 July 2022, p 96. 204 Public hearing transcript, Brisbane, 26 July 2022, p 98. 205 Public hearing transcript, Brisbane, 26 July 2022, pp 98, 117. 206 Public hearing transcript, Brisbane, 26 July 2022, p 100. 207 Public hearing transcript, Brisbane, 26 July 2022, p 100. 208 Public hearing transcript, Brisbane, 26 July 2022, p 100; Minister, response to pre-hearing question on notice

no. 14. 209 Public hearing transcript, Brisbane, 26 July 2022, p 100; Minister, response to pre-hearing question on notice

no. 14. 210 Public hearing transcript, Brisbane, 26 July 2022, p 101. 211 Public hearing transcript, Brisbane, 26 July 2022, p 101; Minister, response to pre-hearing question on notice

no. 5.

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• community recovery plan applications212

• allocation of funding administered by the Queensland Reconstruction Authority to the Sport and Recreation Recovery Grant program and the Community and Recreational Assets Recovery and Resilience Program213

• capital underspend and allocation of new funding for 2022-23214

• funding allocated for the Sunshine Coast stadium215

• the role of the independent director of the Olympics and Paralympics organising committee.216

• an update on Attracting Aviation Investment Fund217

• Queensland Music Trails initiative218

• an update on SportX strategy219

• an update on Stadiums Queensland and its activities220

• the importance of irrigation, drainage and specialised turf for playing fields221

• funding for facilities and infrastructure legacy planning for the Women’s World Cup222

• costing of RNA redevelopment for cricket and AFL while the Gabba is redeveloped for the Olympics223

• underspends for local community sporting infrastructure and the Community Sport Infrastructure Program224

• Advance Queensland and innovation funding225

• economic growth and job creation through innovation funding and the role of chief entrepreneur with the Innovation Advisory Council 226

212 Public hearing transcript, Brisbane, 26 July 2022, p 101; Minister, response to pre-hearing question on notice

no. 5. 213 Public hearing transcript, Brisbane, 26 July 2022, p 102; Minister, response to pre-hearing question on notice

no. 5. 214 Public hearing transcript, Brisbane, 26 July 2022, p 102. 215 Public hearing transcript, Brisbane, 26 July 2022, p 102. 216 Public hearing transcript, Brisbane, 26 July 2022, p 103. 217 Public hearing transcript, Brisbane, 26 July 2022, p 103; Minister, response to pre-hearing questions on

notice no. 11 and no. 14. 218 Public hearing transcript, Brisbane, 26 July 2022, p 103. 219 Public hearing transcript, Brisbane, 26 July 2022, p 104. 220 Public hearing transcript, Brisbane, 26 July 2022, pp 105, 110. 221 Public hearing transcript, Brisbane, 26 July 2022, pp 105-106. 222 Public hearing transcript, Brisbane, 26 July 2022, p 106. 223 Public hearing transcript, Brisbane, 26 July 2022, pp 107-108. 224 Public hearing transcript, Brisbane, 26 July 2022, p 108; Minister, response to pre-hearing question on notice

no. 20. 225 Public hearing transcript, Brisbane, 26 July 2022, pp 109-110. 226 Public hearing transcript, Brisbane, 26 July 2022, p 110.

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• an update on the Best of Queensland Experiences Program227

• priority sport infrastructure projects228

• an update on the Inspiring Extraordinary Sporting Success strategy229

• the status of the progress of the Future Lab at Dreamworld230

• funding expenditure and cost of the review of Advance Queensland231

• ownership of the precinct in Fortitude Valley232

• an update on Pajinka.233

227 Public hearing transcript, Brisbane, 26 July 2022, p 111. 228 Public hearing transcript, Brisbane, 26 July 2022, p 112. 229 Public hearing transcript, Brisbane, 26 July 2022, p 113. 230 Public hearing transcript, Brisbane, 26 July 2022, p 114. 231 Public hearing transcript, Brisbane, 26 July 2022, pp 114-115. 232 Public hearing transcript, Brisbane, 26 July 2022, p 116. 233 Public hearing transcript, Brisbane, 26 July 2022, p 116.

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6 Statement of Reservation

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Economics and Governance Committee - Non-Government Statement of Reservation Introduction Opposition members of the Committee agree with the passing of the 2022/23 Budget. However, the Budget is characterised by numerous shortcomings which have failed to meet the expectations of Queenslanders. Many of these shortcomings became increasingly evident during the Estimates process. The Budget was an opportunity for the government to show Queenslanders they have listened to them. It was a chance to open the books and show Queenslanders they have been heard. It was a chance to reveal the true state of affairs and what will be done to make their lives just a little easier. The Estimates process failed to provide reassurance that the great challenges facing Queenslanders were being addressed – the health crisis, the housing crisis, the youth crime crisis, the cost of living crisis and the integrity crisis. Estimates revealed a host of band aid solutions that will do little to improve conditions throughout Queensland. Coupled with a litany of cost overruns and government financial waste – no better demonstrated than by the loss of over $220 million of taxpayers’ funds on the Wellcamp vanity project – no long term solutions were presented by the government. Despite its inherent imperfections, the Estimates process drew attention to government neglect and waste and a cavalier disregard for the highest standards of probity and integrity in government. Legislative Assembly The LNP welcome the extensive measures that the Parliament are taking to ensure the safety of Parliamentary Service staff during the renovations to the Annexe, as outlined by Mr Speaker. However, the LNP are concerned with the financial burden placed on the Parliament by its involvement in Supreme Court cases against Mr Peter Carne and Ms Jackie Trad. As the Clerk confirmed during the hearing, these matters combined have already cost Queensland Parliament over $28,000 with thousands more anticipated. The LNP are concerned that these matters are costing time and money which should be spent on running the People’s House. The LNP also believe that great weight should be placed behind the Clerk’s comments regarding the Portfolio Committee system. The LNP agree that when it comes to the role of Committees in promoting the accountability of government, we have a long way to go. Committees have not necessarily been discharging some of the duties and responsibilities envisaged in the 2011 review, especially regarding matters of public works and accounts. It is also the strong view of the LNP that key integrity bodies, such as the Auditor-General and Integrity Commissioner, should be tied more closely to the Parliament and its Committees rather than the Department of Premier and Cabinet. Matters such as staffing and budget allocations should not be the decision of the same bodies being held to account by the integrity agencies. Premier and Cabinet This budget fails to address the integrity crisis that is engulfing the government. Unfortunately, the government did not take up an offer from the former Integrity Commissioner to stay on in the position so she could attend the estimates hearing. It was also revealed that, despite the former Integrity Commissioner advising the government of her resignation over 6 months ago, a suitable replacement has not been identified. The appropriateness of the appointment of the Acting Integrity Commissioner must also be questioned.

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Secrecy continues to be a key priority for this government. The Premier refused to release details about the appointment of the former Under Treasurer. The Premier refused to disclose details about the Wellcamp Quarantine Facility. The circumstances around the indemnity provided to former Deputy Premier, Jackie Trad, also remain a mystery. The Acting Auditor-General confirmed an investigation was underway into Wellcamp but revelations that requested documents are yet to be provided by the government are concerning. Problems with the Right to Information process are still ignored by the government. While the government is preoccupied with these integrity issues, services provided to Queenslanders continue to suffer. Examples were highlighted where service levels have been reduced, measures discontinued, and no targets set when the government has failed to meet previous targets. It was also demonstrated at the hearing that the government has no plan to deal with the housing crisis that they’ve allowed to develop over the last seven years. While the government announces record health funding, Queenslanders will need to wait for 7 years for a new hospital to be built with less than 1% of the government’s hospital fund to be spent in the 2022/23 financial year. Queenslanders need these serious issues addressed now. Treasury The 2022-23 Budget is a budget of broken promises from a government that Queenslanders can no longer trust. The Treasurer promised on at least 26 occasions that there would be no new or increased taxes this term. He has broken that promise. Furthermore, his attempts to qualify his promise, saying he didn’t use particular words, reflect a government that no longer prioritises integrity. The Government is projecting a net operating surplus of approximately $2 billion for 2021-22, yet the fiscal balance was still -$2.4 billion and the Government is still engaged in new borrowing of approximately $4 billion. The $10 billion revenue windfall was met with a $7 billion increase in expenses. As a result, debt continues to grow relentlessly. It is now $110 billion, and will be $129 billion by the end of the forwards. This is up from $72 billion in 2015- an increase of 80%. Additionally, after a simulated privatisation of the titles registry last year specifically to lower net debt, net debt is set to triple over the forwards, which will set alarm bells off at all of the ratings agencies.

The billions of dollars in waste exposed over the last two weeks’ Estimates hearings have brought to bear the LNP’s concern that the Treasurer is unable to restrain the wasteful spending of his Cabinet colleagues. In two weeks alone, the LNP uncovered over $3bn of new waste between mothballed projects, cost overruns and mismanagement of public funds. The Treasurer’s own spending caused concern as well. More than $1 million taxpayer dollars has been spent advertising the government’s increased coal royalties. The LNP have grave concerns that the taxpayers of Queensland are funding advertising the sole purpose of which is to promote a political decision of the Cabinet. Additionally, the CEO of Trade and Investment Queensland confirmed that his office did not know the details of the proposed new royalty tiers prior to the Budget announcement. The TIQ Tokyo office was also given no instruction regarding the increase. The LNP are therefore concerned that the Treasurer, as Minister for Trade, is not treating our largest trading partner with the due respect they deserve. The Treasurer’s dismissive attitude around matters of integrity also concerns the LNP greatly. When asked about interactions between Anacta Strategies on behalf of Tabcorp and his Chief of Staff prior to the introduction of betting tax changes favourable to Tabcorp, the Treasurer claimed that they weren’t meetings, they were phone calls. The Treasurer’s assertion that phone calls cannot count as meetings in 2022 is considered difficult to believe by the LNP.

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A definitive forecast for revenue raised from the land tax changes can still not be provided. It is common practice for tax increases to be listed in the “Revenue Measures” section of the Budget papers. This year, that is within Budget Paper 4. Forecasts over the forward Estimates were provided for the three other tax increases in this year’s Budget, but not the land tax. The best that could be provided is the Under Treasurer providing a very preliminary estimate of $20 million for 2023-24. The LNP still holds reservations that the immense administration required to acquire a relatively small amount of revenue is not a cost-effective exercise and not a worthwhile use of the resources of the Queensland Revenue Office. Finally, it was disappointing to observe the lack of vision and planning from the Treasurer to tackle cost of living. We know since the hearing that Queensland’s inflation rate is now 7.3% year-on-year. Aside from the electricity rebate, which was later revealed to be far different in practice than the government advertised, the Treasurer provided no comfort to Queensland families struggling with the skyrocketing cost of living. Tourism Eco-tourism projects championed by this government languish. Plagued by cost blowouts, reductions in scope and stakeholders’ concerns, projects such as the Wangetti Trail will not be completed on time. There are also concerns about the delivery of other projects such as Paluma to Wallaman and the Cooloola Great Walk. Questions remain as to whether all government departments are committed to eco-tourism projects. There are increasing concerns amongst Regional Tourism Organisations that amalgamations are being considered. The government has refused to rule that out. The government has also failed to listen to its own Tourism Industry Reference Panel with requests for additional funding for programs such as the Growing Tourism Infrastructure Fund and Experience Development Fund ignored. Innovation Budget trickery was on show when it came to innovation, with the Department confirming the long-touted $755 million Advance Queensland fund was actually only $331.5 million from the Innovation Department, with the rest made up of basically whatever the Government wanted to call ‘innovation’ from within the allocations of every other department. Further to that, no specific guidelines could be given about what constitutes Advance Queensland or innovation funding, so there is very little transparency over what is specifically being spent on innovation in Queensland. With this newly revealed figure of $331.5 million over seven years, it is clear the State Government’s next phase of Advance Queensland funding of $100 million over the next three years represents a sizeable cut to Advance Queensland spending from an average of $47 million a year over the last seven years to around $33 million a year over the next three. In the run up to the 2032 Olympics, this is the last thing we need. We should be investing more than ever in supporting these future industries to make the most of when we will have the eyes of the world on our state. The Minister also confirmed the State Government approved the reallocation of nearly $3 million in funding announced in 2019 for a world-class koala research facility at Dreamworld to instead be repurposed into building a new rollercoaster. There is no guarantee the facility will ever be built and no evidence any minister followed up with Dreamworld in the three years since this substantial funding was provided to see whether they would proceed with what would have been Queensland’s first native animal genomics lab. Using the excuse of COVID doesn’t stack up either; the State Government’s own press release at the time said this facility was expected to begin construction in mid-2019, at least six months before any of us knew what COVID was.

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This situation is disappointing given the potential of this facility to have not only provided a tourism attraction but to also have made a genuine effort to conservation by helping manage the threats our native species face. It is a clear demonstration that for the State Government, all they care about is announcements over outcomes. Sport Local sporting clubs are doing it tough due to recent flooding with $132 million in damages reported to government. It is vital that disaster recovery funding is delivered as soon as possible. This is of particular concern give the large number of programs that remain underspent from the 2021/22 financial year.

The government’s planning for major sporting events is also of concern. Although committing to the redevelopment of the Gabba, questions remain about an alternative location for AFL and cricket during construction works. Although the RNA grounds are an option under consideration, more work needs to be done to validate the expected $80m cost.

Conclusion Having interrogated ministers and officials throughout the Estimates process the Opposition does not believe the Budget presented a sustainable solution to the significant problems facing the Queensland economy and Queenslanders. Just as ambulance ramping and hospital waiting times were at critical levels last year, housing shortages continue to exist throughout the entire state, crime rates continue to increase, and critical infrastructure remains underfunded. The 2022/23 Budget was a lost opportunity that will make the lives of Queenslanders even more difficult in the coming years. The squandering of millions of dollars demonstrates the government has turned its back on the needs of Queenslanders and has lost control of the levers of public administration.

Ray Stevens MP Deputy Chair Member for Mermaid Beach

Michael Crandon MP Member for Coomera

Daniel Purdie MP Member for Ninderry