Ai Group Comment On Qld Budget

MEDIA RELEASE


16 June 2009
Budget of `give and take' for industry
Ai Group Statement on Queensland Budget

Statement by Chris Rodwell
Ai Group Queensland Director

"Today's Queensland State Budget is a budget of `give and take' for industry. While there
is an appropriate focus on building the infrastructure and skills base that Queensland
requires in the future, further work is required in providing cost relief to industry," Ai Group
Queensland Director Chris Rodwell said today.

"The biggest win for industry in today's State Budget is the Government's continued
commitment to the infrastructure program. This program provides a significant buffer for
the state's industry from the global economic downturn. Our own research reveals that
more than 1 in 2 businesses in industry have been positively impacted by this investment.

"However, in the area of business costs, this budget does little to resolve the cash flow
issues which pervade much of industry. Industry will face about an extra $500 million in
costs as a result of measures in this Budget, including the removal of the fuel subsidy, the
introduction of the land tax surcharge, and the increases in motor vehicle registration fees.

"This is especially concerning as almost 60% of Queensland businesses are currently
struggling with cash flow issues.

"We urge the Government not to close the door on further consultation with industry to
discuss how industry might be relieved of some of this cost burden throughout the period
of the economic downturn without significantly jeopardising the journey to reinstate
Queensland's AAA credit rating.

"While we recognise the additional investments in terms of the 25% rebate for employers
who take on apprentices and the additional funding for the Industry Capability Network,
more can be done to help relieve industry and ease business costs so that Queensland
can emerge stronger.

"On the Government's overall financial position, whilst a considerable deficit position is
forecast for the coming years, we note the Government's commitment to return to surplus
by 2015/16. This is important in improving the Government's overall financial position, and
in regaining Queensland's AAA credit rating.

"It is also important to note these figures do not include proceeds from the announced sale
of state assets, which further underlines the importance of such sales to improve the
state's long term financial position," Mr Rodwell said.

Further comment:
Chris Rodwell, Ai Group: 07 3244 1777 or 0422 388 399
Media enquiries:
Aaron Johnstone, Ai Group: 0418 119 836