Shadow Treasurer Curtis Pitt said new data today showed the Queensland economy had contracted by 0.4% over the year to June 2014, seasonally adjusted, as the Newman Government’s policies continue to bite.
Mr Pitt said Queensland had only narrowly avoided a third quarterly contraction and growth for the June Quarter was less than half of one per cent.
“This is far from a glowing endorsement of the LNP’s economic plan to sack workers, sell assets and slash funding,” Mr Pitt said.
“The Newman Government is relying on growth in net exports in the context of a weak national outlook to keep Queensland out of recession in the 2013-2014 financial year.
“When it comes to GDP, Queensland contributed just 0.1% to the national figure.
“We’re 2.9 percentage points behind New South Wales in growth in state final demand since Newman was elected and we’re contributing almost nothing to GDP.
“We’ve got half the growth of New South Wales. Queensland is lagging.
“The domestic economy has slumped for a year and unemployment is now higher than it’s been for a decade at 6.8% seasonally adjusted.
“Our higher jobless rate is a key reason why people have been spending less in local economies which has contributed to this poor result in domestic activity.
“The fact that the Newman Government is spending less on capital works than projected under Labor, including a new office tower in the Brisbane CBD for the Premier and his Ministers, is also a factor.
“Campbell Newman’s only economic plan is asset sales which will only lead to higher electricity prices and more job losses, despite Queenslanders making it clear that they don’t want their income producing assets sold.”
Mr Pitt said the government’s own budget papers indicated the domestic economy was set for further contraction.
“As Queenslanders are looking for work so they can pay higher power bills, the LNP is arrogantly ploughing ahead with its plans to sell Queensland assets,” he said.
“Over the next financial year, budget papers predict the Newman Government’s strategy will see the Queensland domestic economy contract by 1.25%.”