Queensland election result and fiscal policy

The global financial crisis came along shortly thereafter and spending was still growing at about 12 per cent per annum, but revenues just kept ebbing away and a healthy budget surplus turned into the worst budget deficit outcome of all states and territories.

The Bligh government quadrupled the level of public debt over a few short years in order to keep up the expenditure effort, leaving future generations to pick up the tab in an atrophied economy outside of the resources sector.

The greatest challenge for the Newman Liberal National government will be to reverse the fiscal damage wrought by its predecessor.

The announcement of a comprehensive audit of the state's public finances is an eminently sensible one, as it will provide a fresh opportunity to apply a fine toothcomb across the field of expenditure commitments and identify opportunities for real fiscal savings.

The audit committee would do well to revisit the numerous issues left untouched from the 1996 FitzGerald audit, such as the comprehensive application of purchaser-provider arrangements within government.

This would entail the private sector playing a much greater role in providing logistic support to government operations and delivering frontline services to the public, something that could help lift the fiscal burden off taxpayers already struggling with their own everyday bills.

Another report on the state of the Queensland economy and its finances, undertaken by Commerce Queensland in 2006 and which I was fortunate to organise, could also serve as a guide for the new government in its quest to get the budget back on track.

The Commerce Queensland report, among other things, canvassed the widespread privatisation of state assets.

While privatisation would deliver private sector efficiencies and revenues from asset sales could be used to repay public debt, this option is regrettably off the table for now given the former Bligh government's cynical mishandling of this issue during the GFC.

The energy with which the Premier Newman is already applying to his role is admirable, and he will need to muster all of his famed 'Can Do' spirit to reverse nearly twenty years of fiscal profligacy in Queensland.