RAJ REPORT

Voodoo Budgeting—-Instead off returning money to Electricity Consumers , who have been ripped off for FIVE YEARS ,the Treasurer plays games -Queensland budget 2015: $4b dividend from state companies | afr.com———–Treasurer Curtis Pitt said the three electricity network businesses – Energex, Ergon and Powerlink – were geared at a net debt to regulated asset base of about 55 per cent. He said the industry average gearing ratio was about 80 per cent. The three state-owned companies will be given new target gearing ratios, of 70 per cent for Ergon and Energex and 75 per cent for Powerlink. “With the assets firmly staying in public hands we need to get them operating more efficiently and making the state’s investments work harder for Queenslanders,” Mr Pitt said

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Treasurer Curtis Pitt said the three electricity network businesses – Energex, Ergon and Powerlink – were geared at a net debt to regulated asset base of about 55 per cent. He said the industry average gearing ratio was about 80 per cent.

The three state-owned companies will be given new target gearing ratios, of 70 per cent for Ergon and Energex and 75 per cent for Powerlink.

“With the assets firmly staying in public hands we need to get them operating more efficiently and making the state’s investments work harder for Queenslanders,” Mr Pitt said.

The Queensland government will allow its state-owned energy companies to increase their borrowings and then plough the money back into state coffers to improve its budget bottom line.

The new debt restructuring measure, to be announced in next week’s budget, will allow the Palaszczuk government to receive more money from its government-owned corporations to make inroads in the general government debt – paying off $600 million in interest payments over the next four years. But the state’s total debt is expected to peak at more than $80 billion.

Critics will see the move as an accounting sleight of hand to improve the budget balance, but which will do little to make any in-roads into the state’s spiralling debt or to reclaim the AAA credit rating.

 

Queensland budget 2015: $4b dividend from state companies | afr.com.

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