Before some rail against the ABC, note that this economist does believe that the asset leasing plan is a good idea.
Queensland election 2015: Questions still to be answered on LNP costings, economist says
A Queensland economist believes more answers are needed from the LNP in regards to election costings and budget impacts.
Yesterday the LNP released its costings for the $37 billion asset leasing plan, which would fund many of the party's election promises.
The party said asset leases would pay down debt and help Queensland regain its triple-A credit rating.
Economist and former federal Commonwealth treasury official Gene Tunny told 612 ABC Brisbane's Steve Austin that there needed to be more information on the ongoing budget impacts.
"One of the issues I have is that by leasing the assets and losing the dividends you are losing that income, but because you are spending money on super stadiums and cost of living, you are not reducing the state's interest bill as much as you can," he said.
"That could have an adverse affect on the budget balance, it is not clear if they have incorporated that, it does not seem like they have."
Mr Tunny said estimated budget impacts prepared by the LNP have not explained specific budget elements (line items) or provided a full analysis.
"We need to know their estimates of the foregone income from asset leases. What are the estimates of that? How does that impact the budget bottom line?" he said.
"It is not a full analysis, they are showing they can pay for their election commitments with money from asset leases.
"They can clearly pay for what they are promising, but what is the impact on the budget of losing that income?"
What will be the full impact?
Mr Tunny hopes that more detail will be given so voters have a clearer idea about how the asset lease project will reduce overall state debt.
"What the Government is proposing in terms of leasing out the assets is an excellent idea and it will be good for productivity, but at the same time it would be good to know what the budget impact will be," he said.
It is more than likely that that income forgone will exceed the interest saving, that is what needs to be answered. Economist, Gene Tunny "I am not confident based on what I have seen that this document tells us what that full impact is.
"The Government keeps saying it is uncertain and unclear, but there are numbers out there and forecasts on what the businesses that will be leased out will be earning."
He hoped a full analysis would be released.
"It is more than likely that that income forgone will exceed the interest saving, that is what needs to be answered," he said.
"We need to get the maximum interest reduction in interest payments as you need that to offset that loss of income from government-owned corporations.
"They could easily give that figure, it should be released as part of the election debate so we can be full informed about what the budget impact is."
State debt remains priority
Treasurer Tim Nicholls told 612 ABC Brisbane that the Government had taken the mid-year forecasts and applied commitments to the forecasts for the released costings.
"The Government's priority is still to pay down part of that $80 billion Labor debt, we remain committed to paying down that debt," he said.
"It is important that as a government when we do these transactions and if we are re-elected on Saturday, we do it with full advice from Treasury officials in relation to the Government's requirements."
Mr Nicholls said the Government had planned for future commitments and policies.
"We have provided in the budget for policy and commitments being made, we understood that policies that are under discussion could come at a cost," he said.
"We have taken that all into account.
"Out of the proceeds of the asset leasing program we will put $25 billion to reducing the state debt, $8.6 billion to fund roads and infrastructure and $3.4 billion to strong choices cost of living fund."
