Qld Govt criticised for political appointment over Costello - ABC Online

MARK COLVIN: Peter Costello has denied that his assignment to audit Queensland's books is a case of jobs for the boys.

Labor's calling the former treasurer's appointment the latest in a string of political appointments by the new LNP Government.

The former treasurer - and two other commissioners - will examine Queensland's $62 billion debt and the loss of its Triple A rating. He'll also consider Queensland's share of the GST, which he set up as treasurer.

Annie Guest reports from Brisbane.

ANNIE GUEST: Peter Costello wants to contribute to the recovery of what he calls a "great state". And his favourite thing about Queensland is??

PETER COSTELLO: The journalists.

(Laughter)

ANNIE GUEST: Mr Costello will help lead an audit of Queensland's books, along with Dr Doug McTaggart, who heads QIC, the Government's investment arm and Professor Sandra Harding who is the vice chancellor of James Cook University.

The new Treasurer, Tim Nicholls, says they'll also make policy recommendations.

TIM NICHOLLS: The reason we need to do that is at the end of this year, this financial year, Queensland will be $62 billion in debt. The deficit is projected to continue to increase.

Spending has continued to grow and services are suffering as a result.

ANNIE GUEST: Since being elected last Saturday, the LNP Government has appointed former Liberal MP and factional player, Michael Caltabiano, along with the son of a former deputy premier to head departments, and a former Brisbane City Council colleague is the coordinator general.

In Opposition, the LNP accused Labor of making political appointments. Now the Labor Opposition leader, Annastacia Palaszczuk, is making similar accusations.

ANNASTACIA PALASZCZUK: Essentially what we have seen is another day, another appointment of an LNP mate.

This commission of inquiry must be independent. It must be transparent. But this is simply not happening.

ANNIE GUEST: Queensland has lost its Triple-A credit rating and has one of the country's highest unemployment rates. But earlier this week, one of Australia's big four banks told AM things are already picking up.

Senior ANZ economist, Cherelle Murphy said the LNP's plan to balance the books is sensible, however...

CHERELLE MURPHY: I think the new Government's actually inherited an economy in pretty good shape and that's largely of course due to the resources boom. That said the economic performance as I say is going to be very patchy.

ANNIE GUEST: Is there then an element of fortunate timing here for the Liberal National Party? Could the state's economic recovery happen regardless of who's in power?

CHERELLE MURPHY: I think to some extent that's right. The momentum in the economy is certainly there. We've seen very strong growth in the fourth quarter and we saw growth, state product rise by almost 10 per cent.

ANNIE GUEST: But Mr Nicholls points to debt rising to $85 billion by 2015.

TIM NICHOLLS: I would put to you that that doesn't sound to me like a government with finances on a trajectory to be repaired.

ANNIE GUEST: One of the auditors' tasks will be to advise the Government on its GST carve up. Mr Costello was asked whether the GST formula is fair to the resource states.

PETER COSTELLO: That formula is currently under review and I'd want to see the formula being fair to all of the states. I may be one of the few people that even understands the formula. I'm not sure I do but if I don't I don't think there's anybody else. It's so complicated.

JOURNALIST: So what responsibility do you take for that formula that is the subject of much complaint?

PETER COSTELLO: Well I put the agreement in place on the GST. I set the formula up. I take a great responsibility for setting the formula up. But that doesn't mean that the formula can't be reviewed.

ANNIE GUEST: Mr Costello will work on the audit two days a week. And then will he offer Tony Abbott similar services if he wins government?

PETER COSTELLO: Look I don't go around offering myself. You know as Mr Nicholls will tell you, I didn't offer myself.

TIM NICHOLLS: I had to go ask him.

PETER COSTELLO: I responded to a strong arm.

ANNIE GUEST: The auditors will submit an interim report in June, before a final report next February.

MARK COLVIN: Annie Guest.

Wright By:kevin,Tags:ed hardyed hardy clothingChristian Audigier