22/01/2012 Economic reports highlight blockbuster growth in Qld, importance of Building Boost

Two economic reports released today say Queensland's economic growth is powering up and powering on, Deputy Premier and Treasurer Andrew Fraser said today.

"Deloitte Access Economics' Business Outlook has said Queensland has the strongest expected growth for both 2011-12 and 2012-13, ahead of every state and territory," Mr Fraser said.

"Another report, from CommSec, has ranked Queensland as having the second strongest economic growth and marked Queensland's sharp improvement and positive outlook while pointing to weakness in the housing industry.

"That's why the Bligh Government has extended the Building Boost and that's why we have called on Campbell Newman to support it.

"As the housing sector, still hung over from the GFC and tough leading conditions, catches up with the rest of the economy the $10,000 Building Boost is playing an integral role in stimulating activity.

"Industry has thrown its weight behind our 3-month extension out to 30 April. The Property Council, Master Builders and Housing Industry Association have all backed the Bligh Government's move.

"Only Campbell Newman and the LNP refuse to provide support and in doing so are refusing to support construction workers, builders and potential new home buyers.

"I wrote to Campbell Newman on Tuesday last week seeking bi-partisan support for the initiative, but a response hasn't been forthcoming.

"We know Tim Nicholls opposes the extension which can only mean Mr Newman is backing his politically focused Treasury spokesperson over the good of the housing industry.

"Campbell Newman should put politics aside and announce today that he will support the Bligh Labor Government's effort to stimulate activity and create jobs in Queensland's housing industry

Mr Fraser said he remained concerned about the methodology of the CommSec report despite its conclusion that "Queensland has been the big improver over the last three months".

Copy of the text of Mr Fraser's letter to Mr Newman:

Dear Mr Newman

I am writing to you today to seek clarity from the LNP about their position on the decision by the government to extend the Queensland Building Boost Grant of $10,000 through to 30 April 2012 in response to industry calls for an extension.

This is a move which has been formally welcomed by industry - they see the critical role the boost has been playing in assisting to restore activity and to promote confidence in this vital sector of the Queensland economy.

The only reported comments of your Shadow Treasurer of which I am aware are to the effect that the LNP believes the money should be spent elsewhere. This reported position has also raised concern in the industry in their reported comments.

Clearly the property industry deserves certainty. Prospective purchasers and investors require certainty and the jobs of people in the industry also deserve certainty.

Today you have indicated you believe the property industry to be important and jobs growth to be a priority. You could demonstrate that your sincerity by today overruling your Shadow Treasurer and committing the LNP to the extension of the Building Boost through to 30 April 2012.

To risk jobs and the recovery in the property industry on the basis of politicking would be potentially disastrous for the broader property sector.

I look forward to your early reply, as I am sure the industry does also.

Yours sincerely
ANDREW FRASER

Deputy Premier, Treasurer and Minister for State Development and Trade
The Honourable Andrew Fraser
22/01/2012
Economic reports highlight blockbuster growth in Qld, importance of Building Boost

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Publish Date: 24 Jan 12

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