Queensland Treasurer Andrew Fraser has expressed his confidence that his state will return to 5% GDP within the 2011-12 financial year, despite the state experiencing no growth over the 2010-11 year.

 

Mr Fraser delivered his upbeat assessment of the state’s economic health during a budget estimates hearing in which he dismissed speculation that the Federal Government’s carbon tax would negatively impact the state.

 

The state’s economy was severely damaged during early 2011 when Cyclone Yasi struck the state in early February, followed by massive flooding which ground coal mining to a halt.

 

Despite fears from the mining sector that thousands of jobs were at risk from the tax and that competitiveness would be seriously damaged, the State Budget projected that business investment would surge 27% in the 2011-12 year thanks to a number of projects coming on-line.

 

“I don’t accept predictions that thousands of jobs are going to. In fact, I accept the evidence that the number of jobs in the resources sector will continue to grow,” Mr Fraser said.

 

Mr Fraser revealed that he had commissioned Treasury to undertake a full investigation into the effects on the carbon tax on the state’s economy.

 

Mr Fraser’s confidence of the revitalization of the state economy is based on the 2006-7 resources boom, which drove the economy to a record 6.8 per cent growth rate.

 

Recent figures show that Queensland will need up to 140,000 skilled labour positions in order to facilitate the projected growth.