For this reason it is particularly critical that the proceeds of any asset sales or leases are put towards paying down debt or investing in a pipeline of rigorously assessed productivity boosting infrastructure projects, Ai Group Queensland director Jemina Dunn said following the release of the Queensland government’s Strong Choices Plan.

“Government needs to be careful any revenue from privatisation is not frittered away on projects that do not contribute to long-term productivity gains,” she said.

“Projects that not only result in jobs during construction, but also deliver sustained benefit to the economy through for example, easing congestion or reducing the cost of doing business in Queensland in the long run, will give us the best bang for buck.

“Infrastructure is a key priority for industry with a recent Ai Group survey reporting that 73% of Queensland businesses identified it as one of their top three priorities.”

Dunn said the Strong Choices Plan is a “further step in the important dialogue with Queenslanders around privatisation”

“The alternative of raising taxes, including payroll tax, to pay down debt is not supported by Ai Group. This would have counterproductive impacts on business competitiveness and the broader Queensland economy and community,” she said.

“Queensland business and industry will however be keen for clarity on how asset lease proceeds will be spent. In this regard we will be examining revenue expenditure proposals contained in the plan closely in coming days.”