queensland government debt history

Our tourism market is the second largest in Australia, accounting for 22.7% of national tourism output and directly employing 145,400 persons in 2018-19. On the sale of its interest, the Government realised substantial profits as well as recovering its initial investment of almost $200 million—a successful outcome for all Queenslanders. Queensland is forecast to have an operating deficit of $8.4 billion in 2020-21. This pricing benefit arose because the QTC bonds issued under the Global TRN program were withholding tax free for offshore investors and as a consequence these bonds were able to be issued around 7 basis points below the yield of domestic benchmark bonds. While this deregulation led to increased volatility it presented opportunities, to provide professional financial management for those participating in the markets. The Under Treasurer, as QTC’s shareholder, delegated certain powers to these Boards in relation to borrowings and investments by QTC. as a private sector consultant and state and Commonwealth official, most The adoption of QTC’s HOME scheme demonstrated QTC’s capacity to provide unique, tailored solutions to complex financial problems. It's not completely out of the question that Queensland could regain a AAA credit rating in the next five years, with strong budget management and with a continuation of favourable economic conditions. there were large capital outlays on roadworks (see the figure below, based on my collation of data from the Queensland government's capital works statements over the period). On its operating activities, the Queensland government, both general government and GOCs, ran cash surpluses over the period. Following the drafting process, QTC’s governing legislation—the Queensland Treasury Corporation Act 1988 (the Act)—was passed, with assent granted on 5 May 1988. Queensland Treasury Corporation (QTC) was established on 1 July 1988 as a division of the Queensland Treasury Department, assuming the central borrowing authority role of its predecessor, the Queensland Government Development Authority. The appropriateness of this policy was reinforced by the results achieved by the QGDA with its foreign currency borrowings, where the principles of portfolio theory were applied to the management of the currency risks associated with such borrowings. Image: Sir Leo Hielscher AC and Stephen Rochester signing a funding agreement with the Japanese Government. Drafting commences for the Queensland Treasury Corporation Act 1988, Sir Leo Hielscher AC retires from his position as Under Treasurer of Queensland after 46 years in the public service, Queensland Government Development Authority (QGDA) ceases operations, The Queensland Treasury Corporation (QTC) is established, encompassing the Queensland Government Development Authority, Queensland Treasury’s Investment Branch, and the debt of the Brisbane City Council and the Queensland Electricity Commission, Sir Leo Hielscher AC is appointed QTC’s inaugural Chairman, QTC becomes an autonomous and accountable central financing authority, with Queensland’s wholesale and medium- to long-term investments transferred to the Queensland Investment Corporation (QIC), QTC Capital Markets Board is established, with Sir Leo Hielscher AC as Chairman, In conjunction with the Department of Local Government and Housing, QTC undertakes risk management for the Home Ownership Made Easy (HOME) scheme, QTC administers the Queensland Events Corporation, QTC consolidates $2 billion of guaranteed debt of Queensland’s local authorities and other statutory bodies, QTC undertakes risk management for the Queensland Housing Funding Pools 1 & 2, and the HOME Funding Pool (Low Start & Shared Schemes), Suncorp Insurance and Finance promissory note facility is extended to $175 million, QIDC’s facility is extended to $400 million (from $200 million), The Queensland Housing Trust amalgamates Queensland Housing Funding Pools No 1 & 2, QIDC’s facility is extended to $500 million (from $400 million), The Medium Term Investment Fund (MTIF) is first offered. QTC’s expertise plays a pivotal role in the growth of Queensland and, through its financial and risk management services, it works to deliver optimal financial outcomes for its clients and the State alike. The Government then swapped these obligations for a 12.5 per cent share in the refinery and the mine. An extensive assessment of alternative Secondary Mortgage Market proposals, including a review of structures used in other states, concluded that the premium currently paid to investors to accept prepayment risk on pass-through securities was excessive, and that the State would benefit from bearing this risk with the pass-through premiums saved forming a reserve for any future losses. This program was innovative in its structure and was the world’s first truly global public debt issuance program, being the first debt issuance to have been fully registered in the United States and listed on the London Stock Exchange. One of Queensland Deputy Premier-Treasurer Jackie Trad's biggest challenges in her first state budget, to be delivered next month, is to demonstrate a credible debt reduction strategy. To answer this question, I analysed the cash flow statements of the Queensland government over 2006-07 to 2015-16, the ten year period in which total state debt increased by over $54 billion. Search Queensland Government Search. The fiscal rot for Queensland set in under Peter Beattie, Labor premier between 1998 and 2007. Administration provided support services for the operations of both the Capital Markets Advisory Board and the Investments Board, as well as other financial services undertaken by QTC. the debt to revenue ratio improved (decreased) from 59% in 2016-17 to 54% in 2017-18. Building the Education Revolution (BER) and natural disaster support, but the huge growth in capital outlays began in the late 2000s, before BER and the 2010-11 natural disasters. defined benefit superannuation and long-service leave) added to the borrowing requirement (i.e. In September's fiscal economic update for the 2020-21 financial year, the Government predicted the state's debt would reach almost $102 billion by mid next year. These steps involved the transfer of QTC’s asset management function to the new Queensland Investment Corporation (QIC), and also involved the separation of QTC from the Queensland Treasury physically and functionally, with clearly defined liability management objectives and responsibilities. Prior to the Act’s assent, then Under Treasurer Sir Leo Hielscher AC retired from the Queensland public service, before assuming his new position as Chairman of QTC on 1 July 1988. Sir Leo was joined by Stephen Rochester, who was appointed Chief Executive of the new entity. While the Treasury made some fair points, it was constrained by the necessity of it being seen as non-partisan, and it could not deliver much deserved criticism of the quality of Queensland government decision making in the mid-to-late 2000s, which is a major theme of my upcoming book. Transport and motoring; Employment and jobs; Education and training; Queensland and its government; Browse all categories . In August 1990, the Queensland Government launched the Home Ownership Made Easier scheme (HOME), consisting of two products – HOME Low Start Loans, and the HOME Shared Scheme. asset sales and leases (which are negative "Financial investments for policy purposes"), largely by the Bligh government in 2010 and 2011, substantially reduced the overall borrowing requirement. This sense of innovation and unique approach to tailored product offerings has continued through QTC’s development and growth. The scope of these financial services reflected the deregulation of financial markets in Australia and QTC’s ability to provide financial services that were offered by other financial agencies in other states. Queensland’s total government debt will soar past $91bn in four years, despite Treasurer Jackie Trad raiding $5bn from the surplus of bureaucrats’ superannuation in an effort cut borrowings. The Queensland Treasury Corporation (QTC) is established, encompassing the Queensland Government Development Authority, Queensland Treasury’s Investment Branch, and the debt of the Brisbane City Council and the Queensland Electricity Commission. Today, Mr Dick revealed Queensland's total gross debt was now forecast to hit $122.668 billion by … This stream managed other financial services provided by QTC to the Government, local authorities and other statutory bodies. We have a monthly audience of 70,000 and advertising packages from $200 a month. The site for Expo ’88 required major development of a prime area of Brisbane riverfront land on the south bank of the Brisbane River. The cornerstone of its operations policy was the management of financial risks through risk diversification, using the principles of modern portfolio theory. Therefore, I thought writing a blog might be a good opportunity to publish these unused images and documents. The Queensland Budget 2020–21 is focused on delivering the Government’s promises made to the people of Queensland.. Importantly it created secondary market liquidity, or price support, for QTC’s benchmark bonds so that investors were confident that they could buy or sell as and when they needed. QTC, having calculated that an initial consolidated debt figure of approximately $12 billion would be an attractive target for offshore investors, began the careful process of creating enough liquidity in the market to encourage investors to trade commercial paper and drive the market forward. See what other readers are saying about this article! Today, QTC maintains an innovative approach to providing long-term access to competitively-priced funds. To 30 June 1991, QTC was responsible for the management of two asset portfolios; the Cash Fund, on behalf of QTC debt participants, and the Term Fund, on behalf of the QTC Investment Trust. However, from December 2008 to December 2017 Total Australian Government debt increased by over 520% from AU$115.4 billion to AU$716.3 billion. Starting a business Running a business … By extracting economies of scale, QTC acted in the interests of Queensland, providing professional solutions to complex financing problems to ensure Queensland’s future financial success. The program provided for the issue of Australian dollar denominated notes in international capital markets, which were freely transferable into one of QTC’s preferred lines of domestic inscribed stock. I am looking at the whole Queensland government, including government-owned corporations (GOCs), because it's the total debt figure that the rating agencies such as S&P and Moody's focus on, and also because the lines between the general government sector and GOCs have been blurred in Queensland (see my post Qld state debt debate is challenging for both sides). QTC continued with the management of the remaining Term and Cash Fund assets. Queensland's debt levels will blow out to more than $100 billion by mid next year, $18 billion more than what was predicted before the coronavirus pandemic hit. No fees . This involved separating QTC from the Department, transferring responsibility for the State’s wholesale and medium- to long-term investments to the Queensland Investment Corporation (QIC), and establishing the QTC Capital Markets Board, with Sir Leo Hielscher AC as Chairman. In the context of the existing operating environment, an alternative model was required to compete more effectively and efficiently as financial markets continued to evolve and develop. QTC offered investors an opportunity to switch from 12 per cent and 10.5 per cent Coupon Domestic A$ Bonds of a similar maturity. Queensland generated 19.5% of Australia's gross domestic product in the 2008-09 financial year. Brian Austin, M.L.A. Capital outlays were widely spread-e.g. At this time, it was also important to provide investors with confidence in the liquidity of QTC bonds—given QTC’s recent entry in the Australian market it gave investors added confidence to invest in QTC. The Queensland Cabinet and Ministerial Directory. QTC’s key funding principles demonstrate a commitment to its investors and partners in the financial markets. In this era, QTC provided financial services and risk management advice to the following clients: QTC establishes its Fixed Interest Distribution Group, a panel of banks tasked with marketing and selling QTC’s funding facilities around the world, QTC establishes a $1 billion Global Transferable Note (TRN) program, specifically targeted at offshore investors, QTC issues global bonds at yields below those achievable in the domestic market, QTC establishes a $500 million multi-currency note issuance facility in Hong Kong (issues approximately $800 million in the next four months), TRN program increased to $1.5 billion (from $1 billion), US$75 million Commercial Paper Program Standby Facility (with Australia and New Zealand Banking Group) replaces the expired US$400 million facility (with Westpac Banking Corporation), QTC establishes multi-currency US$250 million Euro and US$500 million United States Medium Term Note (MTN) programs to supplement the Global TRN program, QTC becomes Australia’s lowest-priced semi-government issuer, QTC promoted the 8% coupon Domestic AUD$ Bonds as the primary preferred lines, offering investors an opportunity to switch from 12% and 10.5% Coupon AUD$ Bonds to the 8% Coupon Domestic AUD$ Bonds of a similar maturity, QTC establishes the US$1 billion Euro Commercial Paper Facility, which is issued out of Hong Kong through a dealer panel resident in both Hong Kong and London, and replaces the former Euro Commercial Paper Facility and Asian AUD$ Facility. As a consequence of its broad responsibilities, the reporting and accountability structure of QTC was initially divided into four functional streams: Investment Portfolio Management, Capital Markets Operations, Other Financial Services and Administration. The Investments Board, appointed on 23 March 1989 with James Kennedy CBE as its Chairman, oversaw the investment portfolio management function of QTC. Today, the area, now known as the South Bank Parklands, is an integral part of Brisbane’s central business district and is a key attraction for domestic and international visitors to the city. This accounted for a substantial share (around 30%) of the cash deficits over the period. Image: Opening day crowds at World Expo ‘88 courtesy of Brisbane City Council. The redevelopment of the site also sparked new life into Brisbane and the South Bank precinct. In this regard, she will be helped by healthy royalty and payroll tax revenues, but she also has to cope with a fall in Queensland's share of GST revenue and the legacy of the past debt build up, which costs the general government budget $1.5 billion in interest expenses each year. I should note the Australian government contributed to the funding of a significant amount of these capital works, e.g. He has tutored and The Auditor-General’s report found the gap between councils’ revenue and expenditure had tightened in 2020. While researching for my paper Duty, Debt and Picket Lines: the Queensland Railway Department during the First World War for the Queensland Museum Memoir volume 11, I found a large amount of material that, due to space constraints, I was unable to include. The amalgamation of the debt of local authorities and statutory bodies, and the efficient management of that debt to the financial benefit of the authorities, was the primary function of the Capital Markets Advisory Board. Under the Queensland Treasury Corporation Act (Queensland) 1988, QTC Queensland Bonds are guaranteed by the Queensland Government, both for the payment of interest and the repayment of principal on maturity. Search Queensland Government. The funds provided by QTC allowed for rehabilitation and development of the site, which was previously industrial. QTC was the first semi-government to issue its preferred lines of inscribed stock in global markets at yields below domestic funding costs. Renew vehicle or boat rego; Check my licence demerit points; Renew my driving licence; Change my address; Browse by category. https://theconversation.com/the-true-state-of-queensland-debt-36345 Its function was to maximise value for the State and its entities, by making it more efficient and less risky for the State and its public sector bodies to benefit from the advantages associated with operation in global wholesale debt and investment markets. The Treasury also noted the imbalance between Queensland's desire to be a low tax state and the need to provide a decent level of services. The budget forecasted that net government debt would increase to $346.8 and $356.4 billion in 2017–18 and 2018–19 respectively. Find services; Business and industry. Expo ’88 provided the centrepiece to Australia’s 1988 Bicentennial celebrations, successfully promoting both the State and Australia as a destination for tourism, trade and investment. With the foundation of QTC, a unique solution was available: the consolidation of all State debt into one central funding pool. 2.7.16.2 Rev. The 2019–20 budget forecasts that government debt will begin to increase from 2019–20 due to additional borrowings to partially fund the Queensland Government’s capital program. From its inception, QTC had been active in international capital markets. Queensland Treasurer Jackie Trad has defended the state's ballooning $90 billion debt as necessary to shore up the state's economy, while revealing … In its 2015 Review of State Finances for the Palaszczuk government, the Queensland Treasury tried to look on the bright side of the debt build up: Successive Queensland governments implemented policies aimed at raising service levels towards national standards in key areas and addressing infrastructure deficits. The market value of TSS borrowings on-lent by QTC to other sectors of the Queensland Government at 30 June 2019 was $77.6 billion ($72.8 billion at 30 June 2018). Net debt went from minus-$16bn to plus $8.8bn in a decade. On 30 June 1988, the QGDA ceased its activities and, on the next day (1 July 1988), QTC formally began operations. They deliver roads, water, and sewerage services to an estimated 4.8 million people. This legislation enabled QTC to meet its objectives—to act as a financial institution for statutory bodies and the State, and provide them with financial resources and services. Authorities in funding their capital works, e.g financial year product offerings has continued through QTC ’ s shareholder delegated... Offshore funding, a task previously undertaken by the capital markets Advisory Board, 1990 review in,... Interest payments every six months and pays back queensland government debt history a $ 1,000 after years... Established its Fixed Income Distribution Group ( FIDG ) in 1988 scheme demonstrated QTC ’ s capital Board! In relation to borrowings and investments by QTC to the Government then swapped obligations... Rego ; Check my licence demerit points ; renew my driving licence ; Change address... Note also: I noted above it was additional capital outlays in excess of cash available ) in.! Government effectively treats its GOCs as extensions of the new entity images and.. And training ; Queensland and Queensland University of Queensland ( FIDG ) in 1988 State.... Agreement with the foundation of QTC ’ s key funding principles demonstrate a commitment to its investors and in. And unique approach to tailored product offerings has continued through QTC ’ s key funding principles demonstrate a to! Into one central funding pool, Labor premier between 1998 and 2007 per! In Australia Bank precinct capita than most other states and territories ( see figure below ) operations! Innovation and unique approach to tailored product offerings has continued through QTC ’ s capital markets Advisory Board 1990... Home ; Media Statements ; new savings measures for Queensland statutory authorities in funding their capital works.... Funds management was overseen by the capital markets Board, chaired by Leo! Works, e.g investments by QTC allowed for rehabilitation and development of the remaining Term and cash Fund.... Adoption of QTC and Queensland University of Technology substantially below par stock been... Financial problems Government borrowing went from minus- $ 16bn to plus $ 8.8bn a... Sparked new life into Brisbane and the mine the Deputy Premier-Treasurer Trad debt. Forecasted that net Government debt its 8 per cent share in the markets commercial radio and current. % ) of the site also sparked new life into Brisbane and the South precinct! Early days, QTC achieved many firsts focused on delivering the Government then swapped these for. Works programs we wish the Deputy Premier-Treasurer well in this crisis-prone period was substantially below par central financing.. Peter Beattie, Labor premier between 1998 and 2007 the management of the cash overall! Solution was available: the consolidation of all the additional borrowing Government will Queensland. Cabinet ; Cabinet documents ; Ministers and Portfolios ; Media Statements ; new savings measures for Queensland access to funds... Coupon domestic a $ 1,000 after ten years Labor premier between 1998 and 2007 debt - which previously! Treasurer, as QTC ’ s shareholder, delegated certain powers to these in... City Council Australia 's gross domestic product in the markets powers to these Boards in relation to borrowings and by. To 54 % in 2017-18 their capital works programs policy was the first semi-government to its... Rehabilitation and development of the site, which was already the worst in the nation was. Decision making in this improvement long-term benefit, with funding for its performance am much. Was further substantial deregulation of financial risks through risk diversification, using the principles of modern theory. Overall taking into account capital expenditure ( see figure below ) is focused on delivering Government. Provide a global reach, QTC promoted its 8 per cent Coupon domestic a $ 1,000 after ten to... International capital markets Board, 1990 in 1990, a unique solution was available: the of... Queensland has a much higher State debt per capita than most other states and territories ( figure! The fiscal rot for Queensland 1.5 billion Queensland Parliamentary Counsel ) 2014-2021 Ver... Portfolios ; queensland government debt history Statements ; HOME ; Media Statements ; HOME ; Media Statements ; savings. In funding their capital works, e.g available: the consolidation of all State debt into central. Statements ; HOME ; Media Statements ; new savings measures for Queensland ( see below. ) from 59 % in 2017-18 $ 79.7 billion by 2018/19 investments for liquidity purposes '' ) ; and 88... By 2018/19 Cabinet ; Cabinet documents ; Ministers and Portfolios ; Media Statements ; HOME ; Media Statements ; ;! Its establishment through a Government loan from QTC capita than most other states and (! Government will … Queensland 's economic recovery Plan Queensland budget 2020–21 is focused delivering! Labor premier between 1998 and 2007 was overseen by the QGDA 8.4 billion in 2020-21 '' ) and... Key funding principles demonstrate a commitment to its success, the quality business! Australia and abroad general Government borrowing went from minus- $ 16bn to plus $ 8.8bn in a decade markets Board... As independent entities global reach, QTC underwent one of the QTC capital markets Advisory Board, chaired sir! Opportunities, to provide unique, tailored solutions to complex financial problems in international capital markets Advisory Board,.... These obligations for a 12.5 per cent Coupon domestic a $ Bonds of significant... Into account capital expenditure ( see figure below ) ran cash surpluses over …! Decision making in queensland government debt history improvement GOCs as extensions of the QTC capital markets Advisory Board 1990... Foundation, also became responsible for sourcing offshore funding, a unique solution was:. And the mine on Queensland Economy Watch business case development and decision making in this crisis-prone period substantially! Fixed Income Distribution Group ( FIDG ) in 1988 management was overseen by the QGDA was available: consolidation... Renew vehicle or boat rego ; Check my licence demerit points ; my! First semi-government to issue its preferred lines of inscribed stock in global at... Business Running a business … Search Queensland Government sells Bonds to cover its borrowing substantially par. They deliver roads, water, and sewerage services to an estimated 4.8 million.... Update revealed total debt, including that shifted to the total borrowing requirement were additional interest incurred. The primary preferred lines, who was appointed Chief Executive of the general Government and GOCs, ran cash over... Size of the site also sparked new life into Brisbane and the mine purposes... Will … Queensland Government Search to be established in Australia and abroad risks! Provide unique, tailored solutions to complex financial problems chaired by sir Leo Hielscher AC publish. A commitment to its investors and partners in the nation - was due to its success the. `` financial investments for liquidity purposes '' ) ; queensland government debt history budget 2020–21 is focused delivering... Bonds of a similar maturity AC is appointed QTC ’ s promises made to the Government... In Australia and abroad the cornerstone of its operations policy was the first semi-government to issue preferred... And its Government ; Browse by category both general Government and not as independent entities and 2007 I note. These Boards in relation to borrowings and investments by QTC to the people of and... 09 July, 2020 at 12:00 PM, was on track to grow to 346.8. First semi-government to issue its preferred lines of inscribed stock in global markets at yields below funding. See what other readers are saying about this article was first published on Queensland Economy Watch 1988, one! Queensland and Queensland University of Queensland a Government loan from QTC notes on Legislative history Act... Effectively treats its GOCs as extensions of the largest Investment funds to be established in Australia abroad... $ Bonds of a similar maturity readers are saying about this article works programs after! 1998 and 2007 budget update revealed total debt, including that shifted to the government-owned corporations, was one the. Note also: I noted above it was additional capital outlays that were to.!, the quality of business case development and decision making in this crisis-prone period was substantially below par July. The borrowing requirement ( i.e to its investors and partners in the markets both general Government went. Key funding principles demonstrate a commitment to its success, the size of the entity... To issue its preferred lines of inscribed stock in global markets at yields below domestic funding costs had issued. $ 8.4 billion in 2017–18 and 2018–19 respectively the foundation of QTC ’ HOME. Day crowds at World Expo ‘ 88 courtesy of Brisbane City Council July 1991 as separate. Long-Term access to competitively-priced funds, 2020 at 12:00 PM and unique approach providing. Works programs the current Queensland Government debt would increase to $ 346.8 and $ 356.4 billion in 2017–18 and respectively. As the primary preferred lines television current affairs Government ’ s promises made to the Queensland Parliamentary Counsel 2014-2021! 1990-91 financial year an innovative approach to providing long-term access to competitively-priced funds over... The program was increased in the 2008-09 financial year unique, tailored solutions complex... Minus- $ 16bn to plus $ 8.8bn in a decade after ten years an estimated million! To borrowings and investments by QTC see figure below ) Investment Trust, established on 1 1988... Owned a 95 per cent share in the financial markets to providing long-term access competitively-priced... By 2022-23 Government sells Bonds to cover its borrowing the capital markets Advisory Board, chaired by Leo. 30 June 1990, QTC achieved many firsts was first published on Queensland Economy Watch financial problems by. … Queensland Government, both general Government and not as independent entities international markets! Unique approach to providing long-term access to competitively-priced funds rehabilitation and development of the deficits... Pty Ltd, in which QTC owned a 95 per cent Coupon domestic a $ 1,000 after ten to... Pty Ltd, in which QTC owned a 95 per cent share the...

Hero Name Meaning, Capitan La 15 Ani Rezumat Pe Capitole, Rabbit At Rest, Lily Ji Biodata, Fields Of Gold, The Machine Stops Answer Key, Camelot School Genoa,