SunshineCoastRegionalReport2ndQtr2004

                                                                                      Author
FEATURE ARTICLE                                                                       Luke Spear
                                                                                      Research Economist
KEY OUTCOMES OF THE 2004/2005                                                         AECeconomics
QUEENSLAND BUDGET
The Beattie Government has recently published its 2004/05 State budget, the first budget of the Labour Party’s current term in office.
This feature article will provide a summary of some of the key budget outcomes for the State, with a particular emphasis on regional
Queensland.

In terms of encouraging Queensland’s small business sectors, funding of $3.2 million over four years has been provided for a range
of programs including the establishment of a technology incubator in Cairns. The State Government’s Manufacturing Strategy will
also be expanded with an additional $11 million over four years to develop manufacturing excellence, improve manufacturing
training and education programs and to provide a more highly skilled workforce for the manufacturing sector.

Through the continuation of the “Smart State’ strategy, the budget outlines plans to invest $9.8 million over four years to support the
Queensland Biotechnology Strategy, which will include measures to promote the Clinical Trials Network to assess new drugs,
vaccines and therapies as well as a $20 million Brain Institute to be built at the University of Queensland to research diseases such as
Alzheimer’s, stroke and mental illness. In addition, other facilities expected to benefit under the smart state program include:

•   $9.5 million for a Centre for Advanced Animal Science;

•   $8.1 million for a Queensland Pre-clinical Drug Development Facility; and

•   $5 million for a Medical Engineering Research Facility.

In the education sector, the State Government announced the introduction of a universally available Prep Year in 2007. The Prep
Year will be phased-in at a further 40 State schools and 10 non-state schools over the next two years. This strategy will mean a total
of $329 million invested in additional education capital including upgrades of classrooms, libraries and administration blocks, Prep
Year requirements and to complete the air conditioning of up to 560 classrooms. In terms of vocational training, the Budget
announced funding of $118 million over three years for the SmartVET strategy, which is an approach to vocational education and
training targeting skill shortages and the skilling and workforce to the needs of industry.

An Office of Urban Management has been established with funding of $6.7 million in 2004-05. The Office will coordinate regional
planning in southeast Queensland and work with councils and the community to expedite the review of the existing framework for
growth management and implement a South East Queensland 2021 Regional Plan.

Regional planning outside south east Queensland will be maintained and further enhanced with additional funding of $3.6 million
over four years. The capital program for Queensland is $6 billion, with around 60% of this investment outside the Greater Brisbane
region.

The State’s roads program has been expanded through an extra $186 million for road projects over three years from 2004-05. The
Budget provided a new four-year $571 million Arterial Roads Infrastructure Package, including $19.8 million in 2004-05. The
Beattie Government has also committed an extra $1.9 billion on road and rail infrastructure over the next four years. Queensland Rail
is expected to spend over $300 million on track infrastructure and rolling stock, largely to support the State’s coal industry. The RG
Tanna Coal Terminal at Gladstone will be expanded at a cost of $167 million over three years, and a further $34 million will be spent
in 2004-05 on the Port of Brisbane expansion.

In terms of public transport in the Brisbane Region, by 2007-08 over $900 million will be spent on increasing the capacity of
Citytrain to deal with the forecast strong increase in passenger numbers. The Government will also continue its investment in the
Busway network, with $27 million allocated as part of a $200 million, four-year program of bus infrastructure initiatives.

It is interesting to note that in light of the recent problems in electricity generation in South East Queensland, it was announced in the
budget that Government owned corporations will spend approximately $1.7 billion on energy infrastructure throughout Queensland,
including $1.2 billion on expanding and upgrading Queensland’s transmission and distribution network. Another major energy
highlight of the budget is the commencement of the $1.1 billion Kogan Creek power project near Chinchilla.

In terms of health expenditure, over the next four years the Budget provides for the additional funding of:

•   $20 million for cardiac services;

•   $44 million for cancer care;

•   $13.2 million for oral health care;


©0, Sunshine Coast Regional Economy, Second Quarter 2004                                                                           -3-