Message from the Under Treasurer
Leading
and managing change in response to a difficult external environment was Treasury’s
key focus in 2002–03.
Volatile investment markets and global events such as the war in Iraq and Severe Acute Respiratory Syndrome combined with the impact of drought, provided unprecedented challenges to the State’s economy and finances during the year.
The resilient Queensland economy, underpinned by strong business investment and domestic consumption, nevertheless achieved solid growth and employment outcomes.
The second successive year of negative investment returns presented significant problems for the State’s finances. This was offset by improved State revenue collections, particularly from the strong property market, and tight control of State expenditure. The final outcome was a small Budget surplus, in Government Finance Statistics terms, for 2002–03.
Treasury was greatly assisted during the year by the support of Queensland Government departments and agencies in meeting their fiscal targets. Excellent cooperation was also received in implementing the Government’s Shared Service Initiative.
Treasury established the Shared Service Implementation Office to work with agencies to create four new shared service providers and CorpTech from 1 July 2003. This initiative will generate benefits from high-quality, cost-effective service delivery.
Treasury completed important research to identify the factors that will drive Queensland’s future economic growth with a collaborative project examining the drivers of productivity and economic performance.
Queensland continues to experience high levels of population growth due to strong interstate and overseas migration. Treasury commenced research into intergenerational trends to examine the long-term effects of changing demographic and other cost drivers on Queensland’s fiscal and economic position.
These factors are already challenging our fiscal policy settings. In developing the $21 billion State Budget 2003–04, Treasury worked with agencies to align Budget allocations to Government priorities, resulting in additional funding to health, disability services and Smart State initiatives. The State’s strong balance sheet, reflected in maintenance of the State’s AAA credit rating, provides a capacity for sustaining Queensland’s long-term service delivery capacity.
Treasury played a significant role in formulating responses to the public liability crisis. The department contributed to the establishment of a Group Insurance Scheme for not-for-profit organisations and insurance-related law reforms. These activities aim to ensure increased availability and affordability of public liability insurance.
Treasury also worked with the Government to develop and implement Community Ambulance Cover to provide all Queensland residents with ambulance services anywhere in Australia. A dedicated team developed funding options and worked with agencies, energy retailers and industry representative groups of electricity on-suppliers to introduce the Cover on 1 July 2003.
A scheme for re-allocating gaming machines that become available under a statewide cap was finalised to commence on 1 July 2003. Treasury developed the scheme in consultation with industry to enable hotels to trade gaming machines while incorporating responsible gambling practices.
In the year ahead, Treasury will continue to influence positive change in Government service delivery through the development of sector-wide and agency-specific solutions to meet an ever changing social, fiscal and economic environment.
This will be achieved by working collaboratively across Government and community to ensure all Queenslanders have the opportunity to share in the State’s continued prosperity. This commitment is shared by Treasury’s dedicated staff and will be guided by the Government’s priorities.
G. Bradley
Under Treasurer