The Lord Mayor’s Budget Speech
The Lord Mayor’s Budget Speech
2012-13
Address to the Councilon Wednesday, 20 June 2012
by theRight Honourable, the Lord Mayor of Brisbane, Councillor Graham Quirk
The Lord Mayor’s Budget Speech
Madam Chairman, I rise today to present the 2012-13 Brisbane City Council Budget.
I am proud to do so less than two months after voters resoundingly endorsed my team and our vision for Brisbane.
It is a vision, Madam Chairman, that sees Brisbane asAustralia’s cleanest and greenest city.
Where all residents – regardless of background and circumstance – can participate fully in city life.
Where economic opportunities are seized, and where responsible financial management ensures the delivery of value-for-money services and infrastructure across our suburbs.
Today’s budget, Madam Chairman, is about delivering this vision for our city and making BrisbaneAustralia’s New WorldCity.
RISING TO THE ECONOMIC CHALLENGES
Madam Chairman, there is no denying it has been a challenging few years for Brisbane.
The January 2011 floods drew a magnificent response from residents that has defined our city in the eyes of the world.
But the flood recovery process is a long, tough slog. For Council– just as for many residents – repairs and restoration works continue, and their impact on our city’s finances remains significant.
To date, Council has spent more than $164 million on flood recovery works, including reinstatement of ferry terminals, restoration of parks and the repair of roads, drains and pontoons.
This financial year we will spend a further $88 million, including $48 million on flood-affected road repairs.
We expect a significant portion of this spending will be reimbursed to Council under the National Disaster Relief and Recovery Arrangements.
But there will be considerable shortfalls that Council will have to meet.
Our forecasts indicate that when Council’s full $400 million-plus recovery bill is met, more than $100 million will have come directly from Council’s bottom line.
Madam Chairman, the ongoing cost of flood recovery is not the only challenge we face.
With an internationally integrated economy, Brisbane has not been immune to the global financial pressures of recent years.
Council revenues continue to be affected by a slowdown in some sectors of the local economy.
And adding to this challenge, our city soon faces a new economic impost.
Madam Chairman, the carbon tax – the tax the Prime Minister told us would not happen under her government – takes effect on 1 July this year.
Over the next financial year, it will add $15.8 million to Council’s costs – through green tape, inflation and landfill charges.
In the following year, as further landfill costs take effect, the impact on Council’s finances will be even greater.
Madam Chairman, while my Labor opponents may consider the carbon tax money well spent, I want to place on the record my disappointment that ratepayer dollars must be used this way.
The Brisbane City Council already has a very strong record of greenhouse gas abatement.
We remain the nation’s largest purchaser of renewable energy, using 100% green power since 2010.
We offset the carbon emissions of our entire vehicle fleet.
And we have planted 2 million trees across our city over the last four years.
Through these and other actions, Council’s carbon footprint has halved since 2000.
Madam Chairman, as far as the Federal Government and their carbon tax are concerned, these actions count for nothing.
But in the year ahead, I think we’ll find it is these direct and practical initiatives – rather than the payment of an arbitrary tax – that will have the greater impact on Council’s carbon footprint.
DELIVERING VALUE FOR MONEY
Madam Chairman, my Administration – and this budget – does not shrink from the financial challenges I have just outlined.
They simply make us more determined than ever to put every ratepayer dollar to maximum use and deliver for the people of Brisbane.
While the days of Labor’s ratepayer-funded backrubs, fruit bowls and Grange parties are long gone, our commitment to finding savings and efficiencies has not diminished.
Over the next 12 months, we aim todeliver$41 million in savings to ensure Council is a more efficient and cost-effective organisation.
Madam Chairman, by tightening our belt and cutting our internal costs, we reduce the burden on Brisbane ratepayers.
Last year, I was pleased to deliver one of the lowest rate rises in 35 years – one that was less than half the inflation rate of the time.
This year, the carbon tax alone will add 1.9 percent to the average rates bill. Although, Madam Chairman, this was a fact forgotten by my Labor opponents during the recent election campaign.
Indeed, during the election campaign Labor delivered one of the most shamefully inept rates policies ever seen – one that collapsed within seconds of announcement amid confusion over basic economic detail.
While Labor exposed their economic illiteracy that day, I told Brisbane residents that – if re-elected – my Administration would keep this year’s average rate increase to no more than five percent.
Madam Chairman, I can confirm today that this commitment will be kept.
In 2012-13 the average increase in rates and charges for owner occupier residential properties, as well as business and investment properties, will be contained to 4.5 percent.
If we were not faced with the impact of the carbon tax, the increase would have been just 2.6 percent.
Madam Chairman, for owner-occupiers, this average rate increase equates to $13.63 per quarter or $1.05 per week.
At the same time, full and part pensioner rebates will rise to $836 and $388 respectively. Pensioners will also continue to benefit from a special remission on their water bills of up to $472.
RESPONSIBLE FINANCIAL MANAGEMENT
Madam Chairman, the budget I am announcing today will protect Council’s strong financial position into the future.
Last year, we were one of the few governments in Australia to improve its credit rating outlook.
We achieved this through disciplined financial management, which was independently reviewed and endorsed by the Queensland Treasury Corporation.
In the coming year, Madam Chairman, we will continue to stick to our financial plan.
This means that the budget I present today is balanced. Unlike other governments in Australia – and indeed the world – we will not borrow to keep the lights on or fund our day-to-day operations.
As we have always said, Madam Chairman, Council’s borrowing program is focused squarely on the future.
We know our growing city requires major new infrastructure for the decades ahead.
While we could bury our heads in the sand and leave these problems to a future generation, my Administration is getting on with the job and delivering a long overdue investment in Brisbane’s essential infrastructure.
Our borrowing strategy, Madam Chairman, supports the delivery of this long-term infrastructure program.
It has been assessed and approved by the Queensland Treasury Corporation and ensures major infrastructure is paid for responsibly and equitably across the generations it will serve.
And while we are well advanced in our building program, I am pleased to confirm that our borrowing strategy remains on track.
In fact, Madam Chairman, even with major projects such as CLEM7 and the Go Between Bridge now delivered, and with Legacy Way and the City Hall restoration well advanced, our debt levels, in real terms, are lower than when Labor was in Administration.
To put it simply: net debt per person in 1992-93 was $2383 per person. In 2012-13 it will be $1790.
Madam Chairman, my Administration’s commitment to disciplined financial management, our willingness to plan for the future and our determination to use every ratepayer dollar responsibly means this Council is in a strong position to deliver for the residents of Brisbane.
CAPTURING ECONOMIC OPPORTUNITIES
One of my Administration’s top priorities this term will be to promote the economic development of our city.
It has, without doubt, been a difficult period for many Brisbane businesses following the floods and the global economic downturn.
But I firmly believe we have a choice: we can sit back and wait for prosperity to arrive on our doorstep, or we can go out after it.
Cities are the economic powerhouses of nations but we are in a competitive marketplace and those who hesitate will lose.
Well, Madam Chairman, I will not hesitate.
I will unashamedly chase every opportunity and support every competitive advantage to ensure that Brisbane captures its share of economic growth.
Last year, I established the Lord Mayor’s Economic Development Steering Committee.
I asked the committee to consult with Brisbane’s business community and recommend ways Council could support employment, innovation and business growth.
They advised, Madam Chairman, that Brisbane is facing a unique and unprecedented window of opportunity.
That our city is at the hub of a global resources boom, already worth $25 billion each year to our economy.
That a further $165 billion in new resource projects is expected in Queensland over the next 10 years.
And that the challenge for us is to maximise the economic return to our city, across all sectors, over the long term.
Madam Chairman, my Economic Development Steering Committee provided a range of recommendations to help our city leverage the full benefits of this ‘unique window of opportunity’.
And in this year’s budget I have allocated more than $15 million to begin their implementation.
Many focus on bringing new investment to our city.
This includes $729,000 to attract business meetings and conventions to Brisbane. Already conventions contribute more than $200 million each year to our economy, and – as we become a leading business hub in the Asia Pacific – we want to see more of them.
Madam Chairman, we will spend $2 million this year to host major cultural and sporting events in our city. Signature events – like the Bledisloe Cup and the Brisbane International Tennis Tournament – provide important flow-on benefits to local businesses and tourism operators, and our priority is to get visitors to these events to spend even more time in our city.
We will also establish the Brisbane Ambassadors Program, which will use the global reach of our expatriate business community to spread the word about investment opportunities in Brisbane.
And we will allocate $1.5 million towards the promotion of our city as a Global Resources Hub and towards other investment attraction activities.
Madam Chairman, the Economic Development Steering Committee identified the lack of four and five-star hotels in Brisbane as a constraint on our city’s economy. This year’s budget therefore continues incentives for new hotel development through a moratorium on infrastructure charges as well as a hotel development strategy.
The committee also identified a need to help Brisbane businesses capture the benefits of the digital economy and keep abreast of rapidly advancing information and communication technologies.
Today’s budget addresses this need by funding the city’s first ever Chief Digital Officer, tasked with promoting city-wide uptake of digital business solutions and increasing the value of connectivity for residents, visitors and businesses.
Our city’s biggest export industry is international education, with around 55,000 international students in our city at any given time – each spending on average $140,000 during their stay.
Next month, I will commence a program called Friends International Brisbane to establish lifelong relationships with these political, business and trade leaders of the future.
It all adds to our increasing efforts to attract investment and tourism, particularly from the Asia Pacific Region.
Madam Chairman, these are just some of the initiatives we will be delivering this year to support the economic development of our city.
Under my Administration, Brisbane is open for business and we will be pulling every lever available to strengthen our local economy.
We have so much to offer, so much untapped opportunity and I make no apology for this aggressive approach to growing our economy.
PLANNING FOR THE FUTURE
Madam Chairman, the economic opportunities awaiting our city, if realised, are forecast to generate 343,000 new jobs in Brisbane over the next 10 years.
Over the next 20 years, our city’s population is expected to grow to 1.27 million people.
Quite clearly, we will need to plan for this growth responsibly, in a way that protects the liveability and character of our suburbs.
With this in mind, today’s budget sets aside more than $3.6 million to review and update our City Plan over the next two years.
The City Plan sets out how land can be used and built upon in our city, and how we manage and respond to growth.
The review of City Plan is a major Council undertaking and, as always, community consultation will be an integral part of this process.
At a local level, Madam Chair, we will also continue our award-winning Neighbourhood Planning program.
Since 2005, 20Neighbourhood Plans have been adopted, giving residents across these areas a direct say in the future of their suburbs.
This year’s budget provides funding to continue this work, including in Chermside Centre, Richlands/Wacol and Moggill/Bellbowrie.
KEEPING BRISBANE MOVING
Madam Chairman, this year’s budget also ensures Brisbane’s roads and public transport keep pace with our growing population.
My team has never shied away from the need to tackle traffic congestion and build much needed infrastructure for our future.
We see this work as critical if Brisbane is to remain a place where people want to live, work and invest.
Over the last four years, we have forged ahead with an unprecedented investment in our transport network, led by the delivery of 500 new buses, $100 million worth of cycling infrastructure and 15 years worth of suburban road upgrades.
Today’s budget continues this multi-pronged approach with an investment of $1.4 billion in transport initiatives.
This includes, Madam Chairman, $465 million for the construction of Legacy Way, our next major infrastructure project.
When complete, Legacy Way will provide a direct, high-speed route between the Western Freeway and the Inner City Bypass, reducing traffic on Milton Road and Coronation Drive.
It is without doubt a project for the long term.
But it is also worth noting that – even in the short term – Legacy Way is delivering benefits, including more than 5000 direct and indirect jobs during the construction phase.
Madam Chairman, I’m particularly pleased to announce funding for the removal of open level crossings at Robinson Road, Geebung, and Telegraph Road, Bracken Ridge in this year’s budget.
In many respects, this funding is nothing new.
Each year, for the last four years, we have allocated money in the Council budget for the removal of these dangerous open level crossings.
Historically, such projects have been a State Government responsibility with Council providing only 15 per cent of the cost where required.
However, in an effort to progress these vital projects, Council offered to lift our funding contribution to 50 percent.
For years, Madam Chairman, this offer was refused by the Labor State Government.
But it’s amazing what a difference a change makes and I’m pleased to confirm that these projects will now finally get off the ground.
It is a tangible example, Madam Chairman, of what can be achieved through state and local government working in partnership – and long may it continue.
Madam Chairman, in addition to the open level crossing projects, Council will this year spend $1.2 million to complete the Hamilton Road/Maundrell Terrace intersection upgrade in West Chermside; $11 million on the Inala Avenue/King Avenue intersection upgrade in Durack; and $8.5 million to progress the upgrade ofKingsford Smith Drive.
I’m also pleased to confirm the delivery of a number of key election promises for our road network – including $250,000 for the introduction of pedestrian countdown timers and $130,000 for portable speed warning signs to deter motorists from speeding in key traffic blackspots.
Madam Chairman, my Administration’s approach to tackling traffic congestion has always been balanced.
The more residents we can encourage on to bikes, buses and ferries, the better our traffic will flow.
This year Brisbane City Council will increase its subsidy of public transport to more than $165 million.
Over the next 12 months, this subsidy will support the record number of buses, CityCats and ferries now operating across our public transport network.
It will also fund the delivery of key election commitments I made to improve public transport in this city.
This includes $1 million to begin work on a new CityCat stop at Milton and another $1 million to start the construction of two new CityCats.
We will also allocate money to kick off the free inner-city ferry loop – the City Hopper – as well as the new Stones Corner to Paddington ‘Maroon’ CityGlider bus service.