Minutes of proceedings

REPLY BY THE CHAIRMAN OF FINANCE, ECONOMIC DEVELOPMENT AND ADMINISTRATION COMMITTEE:

Chairman: I will now call on Councillor Julian SIMMONDS, the Chairman of the Finance, Economic Development and Administration Committee, to respond. Councillor SIMMONDS.

Councillor SIMMONDS: Thank you very much, Madam Chairman. It obviously gives me great pleasure to speak in support of LORD MAYOR Graham QUIRK's 2015-16 Brisbane City Council Budget, a budget that reconfirms our commitment to tackling traffic congestion, provides an overall 12.3 per cent boost in funding for frontline services in the suburbs, commits over $105 million in new ideas and initiatives for a better Brisbane, and retains a focus on creating investment and job opportunities for Brisbane Small and Medium Enterprises (SMEs) and our residents.

It is a budget that is balanced, designed to retain our strong credit rating and one that keeps rates as low as possible. It is a budget that drives the ratepayers' dollar further than ever before, thanks to strong commitment to sound financial management by this Administration. It is sound financial management that includes savings from major capital projects delivered under budget, savings in interest costs from debt repayments, capital recycling from a toll leasing concession, a revenue-generating future fund, and reduced back-of-house expenditure. Every one of these initiatives Labor Councillors opposite have spoken and voted against since the last election.

Madam Chairman, more effective than the hollow words of the Leader of the Opposition's speech, the 2015-16 Budget actually demonstrates to Brisbane residents this Administration's vision, responsible financial management and commitment to our suburbs. What a commitment it is, Madam Chairman. The 2015-16 Budget continues the fight against traffic congestion with a significant rolling program of major upgrades, including Kingsford Smith Drive, Wynnum Road and the new four laning of the Inner City Bypass (ICB).

It contains $125 million for suburban congestion busting improvements, such as intersection upgrades and new bikeways. It increases ratepayers' subsidies for bus and ferry operations to a record $114 million. It enhances frontline services in the suburbs through initiatives like the Smoother Suburban Streets program which will provide $100 million in road resurfacing across more than 380 suburban locations, as well as an 11 per cent increase on associated works like kerb and channelling.

It delivers new initiatives like the City of Lights program, bringing back the fountains, the new Mount Coot-tha Visitor Information Centre, and the Edward Street upgrade. It keeps our foot to the floor when it comes to attracting investment in jobs for SMEs and residents.

Yet, despite all of this, what is disappointing is that Labor has spent less time in the last few days and this morning debating the merits of the budget than they have spent discussing the length of tenure of the LORD MAYOR and this Administration. Given the Leader of the Opposition's impending leap to Federal politics, perhaps it is natural that he views time as the enemy. The reality is that experience in leadership is vital for this role.

Let us look at the last 12 months. You need to be experienced in order to repair $16 million in storm damage, the equivalent of a 2 per cent rise in rates without impacting frontline services. You need experience in order to manage the logistical challenge of your city hosting the most successful G20 Leaders meeting ever held. You need to be experienced to complete the largest infrastructure program to tackle congestion that this Council has ever seen in the TransApex program, and to do it in a way that also delivers lower debt, lower rates and more frontline services than the previous Labor Administration ever did.

` We know how effective the TransApex network is, because literally the Councillors on the other side of the Chamber use it hundreds of times a year—hundreds of times a year. The experience that LORD MAYOR QUIRK brings to the city's leadership, rather than being a reason for Labor to scoff, is an important reason why, along with the dedicated work of Council officers, the Council has overcome these and other challenges in a successful, financially sustainable way. Ultimately, Brisbane residents will judge this Administration on our record of delivery, one that we are very happy to stand by.

While we are discussing the financial position of this Council, I acknowledge that the 2015-16 Budget curtails the average rates increase to 2.5 per cent, or the equivalent of 62 cents per week for owner-occupiers. This keeps the average rates bill for Brisbane residents as the second lowest in the South East Queensland region, and the third lowest of any Australian capital city. At 2.5 per cent, the rates increase is lower than 10 of the 12 budgets delivered by the previous Labor Administration, well below the four times Labor raised rates by above 6 per cent, and of course is below the recent 3.5 per cent hike that the Labor State Treasurer has instituted on rego.

Of course, this Administration is acutely aware of the cost of living pressures that come with running a household budget. But also, we cannot retreat from funding the infrastructure that this city needs to continue to grow. The 2015 16 Budget strikes an appropriate balance between those two.

Labor warns of higher rate increases if this Administration is re-elected. But we have heard these dire predictions before. On 11 March 2014, Councillor DICK predicted rates would increase by 5.9 per cent. This was his quote in the Council Chamber, “You have budgeted a 5.9 per cent rates increase next year, which is more than twice the inflation rate”, he said. Did rates rise by 5.9 per cent? Of course not. Of course not. Not even close. But the previous year, he was just as bad. He went on Channel 10 before the budget and stated that rates would be increased by twice the CPI or 5 per cent. Did they increase by 5 per cent? No, not even close.

The hysterical warnings of Labor held no credibility then, and they hold no credibility now. Not only that, but the claims he makes about future rate rises are based on totally debunked assumptions. This is Flessernomics at its absolute best. Personally, it is good to see him not slipping into retirement without a fight.

To simply work out the percentage increases in revenue from the forwards, as Labor have done, and claim that that is a rates increase is to assume that there will be no growth in property numbers between now and 2017-18, a total fiction from start to finish. It is not the first time that Councillor FLESSER has tried to get this up. It reminds me of that insurance ad with the charter boat. He is wandering around going, “Growth, what growth? I don't see any property growth”.

The bottom line is that if those opposite are ever given the financial reins of this Council, rates will be higher. I know this not just based on their record of raising rates above 6 per cent, but also because their current policy positions have left them with no other choice. Since the last election, all of the Labor Councillors have opposed new borrowings; they have opposed savings from debt reduction; they have opposed back-of-house efficiencies; they have opposed capital recycling from infrastructure; and they have opposed savings from completed projects.

Even their long held desire to cash in CBIC the city's future fund, and use it as their own private piggybank, must surely now be off the table, given the Labor Party's firm stance against selling revenue-earning assets. In fact, to sell off CBIC would also deny ratepayers a $20 million annual dividend, equivalent of them raising rates by a further 2 per cent. So if they are true to their word, Madam Chairman, the only remaining choice that they have in their arsenal to fund commitments is to raise rates or cut frontline services.

While on rates, Labor's announcement that they would make an allocation in the budget for unknown and unforeseeable disasters on the off chance that they might occur would again only exacerbate their need to raise rates. Furthermore, it would leave vital infrastructure projects on the waiting list, while $30 million sits idle in a reserve, essentially in a tin on the shelf, Madam Chairman.

Councillor DICK mentioned category 20. Well, I can make this assurance to the Chamber today, that no one who is on a rates remission, none of these religious properties or not-for-profits that are currently receiving a remission will lose it. There has been no change to that remissions policy. If you were grandfathered under the 1992 remissions policy, you will continue to be grandfathered. If you can comply with the remissions policy, you will get a remission. The point is that some of these properties are no longer being used for religious reasons anymore; they have sold them off. They have sold them off for residential property developments. More than that, rather than simply re-rate them—

Councillor interjecting.

Chairman: Councillor SUTTON!

Order!

Councillor SIMMONDS: Well, I will tell you, Councillor SUTTON. Rather than simply re-rating these properties to residential developments, this Administration is understanding enough to say, we will put them in a category where we can make special considerations for them.

Chairman: Order!

Councillor SIMMONDS: So, special considerations for them, so that these properties are not—

Chairman: Order!

Councillor SIMMONDS: —unduly burdened. Madam Chairman, in addition, this budget also contains two other important financial measures. Firstly, this budget completes a 47.8—

Councillors interjecting.

Chairman: Order!

Just a moment, Councillor SIMMONDS.

Councillor DICK was heard in silence; surely you can extend the same courtesy. Thank you.

Councillor SIMMONDS.

Councillor SIMMONDS: Madam Chairman, in addition, this budget also contains two other important financial measures. Firstly, the budget completes a 47.8 per cent reduction in net debt per capita since the 2013-14 Budget. This will save ratepayers $330 million in interest costs. The net debt per capita in this budget is now $1088, below any figure the Labor Councillors opposite ever achieved in 13 years of Labor Administration. We used to say that Brisbane residents can be assured of one thing—that rates will be lower under this Administration than under Labor. But now they can be sure of another—that debt is lower under this Administration than under the Labor Councillors opposite.

Secondly, this budget continues our commitment to Australia's most generous pensioner remission scheme, the only Council scheme that assists pensioners with the water and sewerage costs. The 2.5 per cent increase in the rates remission ceiling in this budget will assist every rate-paying pensioner across our suburbs, a total of 17 per cent of the residential owner-occupier population. This compares to Labor's record when they held the reins over this particular scheme, when they callously cut the scheme's cap from $700 to $600, and then kept it flat for seven years, while at the same time, those same seven years, they raised rates on pensioners by a whopping 29.6 per cent.

This budget makes a mammoth commitment to continuing the fight against traffic congestion. It contains a 2015-16 spend on reducing congestion of $125 million; $49 million to undertake suburban road upgrades; $41.4 million to commence construction on Kingsford Smith Drive, progress Wynnum Road and the new ICB four-laning project; $10.4 million on major traffic improvements at intersections and $5.9 million for the Congestion Reduction Unit.

That is only one side of the coin, isn't it? The other side is public transport. This budget contains a record $114 million in 2015-16 to subsidise bus and ferry operations; $45 million over four years for upgraded CityCat terminals; $31 million to complete the $120 million promise on Better Bikeways for Brisbane; $7.6 million this financial year to upgrade suburban bus stops; and $5.2 million over three years to re-life the first generation CityCats. This record $114 million to subsidise public transport is a 75 per cent increase on Labor's paltry $65 million subsidy when they left office.

Labor may claim that they support public transport, but their record reads very differently. When I do a side-by-side comparison of our last four years funding public transport versus their last four years in Administration funding public transport, it is shocking to discover the difference. Our spend on capital improvements over the last four years has totalled $71.7 million, a 387 per cent increase over the equivalent Labor spend of $14.7 million. Our subsidy for public transport operations over the period has totalled $416 million, a 63 per cent increase on Labor's subsidy of $254 million. Of course, we have purchased 300 new buses, almost double Labor's 157.

They try to re-write history. It was this Administration who fought to take over the bus review which previously contained far more cuts, far more route cuts, than what this Administration eventually looked at. We looked at routes which were carrying less than five people. What was the result? An increase in patronage. That is why only this Administration can lay claim to being the best friend that public transport users have ever had.

Labor Councillors will object to this comparison. They will say it is unfair; they should be judged on their future policies, not their previous poor record of delivery.

Councillor SIMMONDS: Okay, well, regardless of that, I know we haven’t seen any alternative policies for three-and-a-half years; the really scary thing, DEPUTY MAYOR, is how they plan to fund it. It was Councillor ABRAHAMS, their very own Deputy Leader, who let the cat out of the bag, because their solution to funding public transport is a cordon toll, a congestion tax. It was a big secret.

Councillor SIMMONDS: They were trying really hard to suppress this.

Chairman: Order!

Councillor SIMMONDS: The Leader of the Opposition even denied in this very Chamber early in the year, saying point blank, “Labor Councillors sitting in this Chamber do not support a congestion tax”. That is what he said. But the person sitting next to him, just like the carbon tax the Labor Party wasn’t going to introduce before the 2012 election which they then did, we then had the Deputy Leader contribute to a book published just very recently titled Decongestion. Here it is, to make sure I am getting it right.

Under a section titled, “Opinions from Mayors, industry leaders, academics, residents and others”, on page 34, Councillor ABRAHAMS says this—and I am going to read it to you, “To introduce a”—well, she has a spelling mistake here, so it wouldn’t be a Councillor ABRAHAMS quote without a spelling mistake, “To introduce a cordon toll is the way to go”. Those are her words. It gets better, “With real incentives to use public transport introduced at the same time, the two must be seen as a single package”. There is the key, Madam Chairman, a single package. It gets even better, because she offers another opinion, and I will quote here, “The love affair”—because I couldn’t make this up—“The love affair with our cars must be broken. The community is being given the message that self-independence is desirable”. Oh, shock, horror, Madam Chairman.

She goes on, ‘The community is being given the message that self-independence is desirable. The sexual prowess message persists as well. Both these messages are perpetuating the dominance of the car-based transport’. Madam Chairman that would make Sigmund Freud's head spin. That is truly bizarre, but that is the Deputy Leader of the Opposition. So, Madam Chairman—

Councillor SIMMONDS: —future leader—perhaps the future leader. So, Madam Chairman, the residents of Brisbane now know, that if you need to use your car to travel, whether it be due to work, family or accessibility reasons, any future Labor Administration made up with these Councillors plan to toll you when you are driving. The residents now know that any promises Labor make to fund public transport come, and I quote, “as a single package”, with a new cordon tax, whether you have a choice to use your car or not.

We heard the same tired lines coming from Labor regarding revenue from parking. Just to be clear, we would much rather see people obey the parking rules and turn over finite spaces to support local residents and businesses than we would collect fines. In fact, revenue from parking fines is currently trending under the anticipated 2014-15 Budget as people benefit from the recommendations already reduced as part of the Parking Taskforce, including the 15-minute free period and better signage.

The commitment in the 2015-16 Budget to roll out a further $3.4 million in taskforce recommendations is a further win for motorists. Labor's response to this initiative showed that again they are not across the detail. Their inexperienced spokesman criticised the proposed app as a distraction to drivers when in fact the app is to allow motorists to book a space before they leave or top up their meter away from their car. But if Labor are really concerned that if this app was a distraction to motorists, don't worry, there's an app for that. They can get an app to disable all the other apps on their phones, and I commend it to them.

Labor has tried incorrectly to categorise this budget as one of re-announcements. This is yet another example of the hypocrisy which is now rampant in their ranks. Consider their three major policy contributions to the debate so far have been these: a policy to fly economy class on overseas travel; a re-announcement of a 23-year-old policy they took to the 1992 election before they promptly broke it the next year; a policy to redesign King George Square—a re-announcement of a promise they took to the last Council election despite Labor Cabinet members at the time, Councillor FLESSER and Councillor ABRAHAMS voting in support of the current design; and a policy on the Kangaroo Point bridge—a re-announcement of a Labor State Government policy from 2007. That has been their contribution so far.

You can always tell when Labor have written their lines before they have actually read the details in the budget, because this budget contains millions of new money and new projects, including the four-laning of the Inner City Bypass, Edward Street, the Mt Coot-tha Visitor Information Centre, bringing back fountains artwork on public infrastructure, and a rollout of CBD lighting.

It also includes $188,000 in new money for extra suburban festivals. At least one Labor Councillor, Councillor ABRAHAMS, noticed the funding, and was very quick to tweet her support of the new festival that is funded in her ward. On the other hand, Labor's inexperienced spokesman was quick to tweet that there was no investment for safety lighting for our suburban parks, obviously before he had read through to the schedules where it contains 12 individually itemised safety lighting projects in suburban parks.

Brisbane residents can trust that, under the watchful eye and hands-on management of this Administration, our new and existing commitments will be delivered as they always have been. Don't take my word for it, Madam Chairman. You can see the progress for yourself in this financial year. Open up page 8 of the 2015-16 Budget documents and have a look at the financial statements. In the 2014-15 year, our spend on materials and services is tracking at $1.68 billion. That is $30 million up on the planned spend that we published at the start of the year.

Look at this year's spend in the budget book again for 2014-15, our capital spend is tracking at $ 1.000395 billion—that is $2.4 million above the planned spend we published at the start of the year. So while this Administration is getting on with the job and over-delivering, it compares starkly with the Labor Councillors opposite, when they were last in Administration, who carried over 16.25 per cent of their capital budget.

When we do reconsider our priorities, Madam Chairman, we are upfront with the people of Brisbane about it. Much has been made by Labor about the decision not to include immediate funding for the Kangaroo Point pedestrian bridge in the 2015 16 budget. This is despite the fact that only 12 months ago, Councillor DICK was in this very Chamber opposing this inner-city pedestrian bridge, and he said, “Brisbane City Council can't afford these projects without accruing more debt or increasing rates and charges”, which I can only assume is what they will be doing to fund their promise.

As the LORD MAYOR said on Wednesday, this is a project that we continue to believe has merit, and that remains in our City Centre Master Plan. In fact, of the other five City Centre Master Plan priority projects, one is completed this financial year, two others are being fully funded by Council in this budget, the Queens Wharf precinct is being progressed by the State Government, and the fifth is, of course, the Buses and Trains (BaT) tunnel, scrapped completely by the Labor State Government.

So it is clear that an iconic structure of this nature would cost ratepayers around $120 million potentially more. Instead, in this budget, we have made the responsible decision to bring that money forward and spend it on enhanced frontline services in the suburbs. Now that Labor has renewed its promise to fast-track the pedestrian bridge, no doubt at Councillor ABRAHAMS’ behest again, they need to reveal which suburban projects—which frontline services they intend to cut in order to pay for this inner-city commitment.

I would just like to make mention of some of those frontline services that benefit from the LORD MAYOR's 2015-16 Budget. We pride ourselves on being Australia's most sustainable city, as recognised by Keep Australia Beautiful Foundation. In this budget, we are maintaining our emphasis on rehabilitating bushland and green space. With $13.8 million for new bushland acquisitions, $4.3 million on conservation reserves management, $2.9 million on Wipe Out Weeds, and continuing the Lord Mayor's Sustainability Grants and the Native Animal Ambulance program.

We will increase expenditure for local drainage construction by 11 per cent, and by 2.5 per cent for major drainage construction works. No one can accuse this Administration of being more committed to informing residents about flooding than we are. Rather than hiding behind closed door reports, locked up in secret as the previous Labor Councillors did, we have a very open and transparent system to show residents their flooding risk. We have spent millions of dollars over the last couple of years on both this system and the recommendations of the flood commission.

$20 million has been allocated for suburban cleansing initiatives such as street cleaning, road sweeping and gum removal vehicles. A total of $168.2 million this financial year will be spent on maintenance and enhancement of suburban parks, gardens and recreation, including increasing the annual grass cuts in parks from 17 to 19.

The 2015-16 Budget provides over $72 million to manage Brisbane's growth. Managing growth is a responsibility that I know the LORD MAYOR and this Administration takes incredibly seriously. It was only an LNP Administration who provided residents the opportunity to have their say through the CityShape and the neighbourhood planning process, with a further $2.1 million in funding in this budget.

As part of a suite of measures, this budget also provides $371,000 to assist residents to maintain heritage listed homes, and a new annual allocation of $400,000 for a team of dedicated Council officers who will form the new Suburban Construction Management team. Their brief will be to respond quickly and effectively to complaints from residents where construction work is occurring in breach of the rules such as out of hours.

Councillors interjecting.

Chairman: Order!

Councillor SIMMONDS: In addition, we will spend every cent of the infrastructure charges we receive on new capital improvements for our suburbs, and then a lot more. This year, Council will spend $168.4 million on parks with infrastructure charges accounting for just approximately 15 per cent. Council will spend $100.8 million on drainage infrastructure, with infrastructure charges accounting for just approximately 15 per cent. Council will spend a whopping $354.9 million on capital transport improvements with infrastructure charges accounting for just approximately 12 per cent.

Madam Chairman, the LORD MAYOR's 2015-16 Budget includes a total spend of $18 million to enhance Access and Inclusion across the city, something we remain incredibly dedicated to. A further $59.2 million on a modern, well-resourced library network, including $3.9 million for library refurbishments and enhancements.

There is $3.8 million in funding to support Brisbane's festivals; $4.2 million in direct grants that were election commitments of this Administration to community groups, not-for-profits and schools. In addition, we continue the infrastructure charges reduction program to strongly support our community organisations. In 2014 15, this financial year, so far there have been 19 subsidies provided totalling over $396,000 to enable sporting clubs and other community organisations to get on with upgrading their facilities.

There is also $1.3 million allocated to increase engagement with young people through initiatives such as the Valley's Visible Ink and Wynnum Youth Hub, and an extra $1 million annually for traineeships and work experience opportunities in Council to give young people's career the kick-start that it needs. Of course, the Karawatha Environment Centre is under construction and will be completed.

Councillor SIMMONDS: In order to continue to attract investment and create jobs in the city, the 2015 16 Budget increases funding for supporting Brisbane businesses and implementing the Brisbane Vision 2022 Report. Labor has dismissed the Vision 2022 Report out of hand. But in doing so, they have forgotten that the recommendations and the funding that goes to seeing those recommendations through were decided by over 1,000 local business leaders brought together by the LORD MAYOR's Economic Development Steering Committee. The challenges, like CBD vacancy rates, is exactly what the action plan is there to help address.

As per the recommendations of Brisbane businesses, we will continue to highlight Brisbane within the Asia Pacific region, fund the very successful Business Hotline, deliver a $1.6 million support package for SMEs, spend $3.2 million fostering key growth sectors of our economy, and provide more open data opportunities to encourage innovation and enhance our existing status as the most transparent Administration this Council has ever seen.

So, Madam Chairman, in conclusion, I commend the LORD MAYOR's 2015 16 Budget for providing a vision that reconfirms this Administration's commitment to tackling traffic congestion, boost funding for frontline services in the suburbs, commits to new ideas and initiatives for a better Brisbane, and retains a focus on creating investment and job opportunities. I commend the budget for achieving all of these things while relying on sound financial management to strengthen the overall financial position of ratepayers.

Can I just thank again all the officers who assisted in the creation of this document, especially the hard-working team under Greg Evans. Our Chief Financial Officer (CFO)—Paul Oberle, Mark Russell and Tanya Neish have worked incredibly hard on it. Madam Chairman, I commend the budget to the Chamber.

Councillors interjecting.

Chairman: LORD MAYOR.

LORD MAYOR: Yes, thanks, Madam Chair—

Councillor JOHNSTON: Point of order, Madam Chairman.

Chairman: Yes, point of order, Councillor JOHNSTON.

Councillor JOHNSTON: Sorry, my apologies, your Honour. I did make it to the session this morning, and I understand an apology was moved for me.

Chairman: Yes.

Councillor JOHNSTON: But, either a motion or would you allow a correction to the Minutes to reflect my attendance?

Chairman: No, Councillor JOHNSTON, you advised me late last night that you would not be attending this session and accordingly, so that the records are correct, I arranged for an apology to be put in for you. Thank you.

Councillor JOHNSTON: Okay, so I can't move that that apology is withdrawn as I am now present?

Chairman: No, Councillor JOHNSTON, you weren't here for about 95 per cent of the session. Thank you.

Councillor JOHNSTON: Well, Madam Chairman, neither is the LORD MAYOR at most meetings—

Chairman: Councillor JOHNSTON!

LORD MAYOR.

Chairman: This meeting now stands adjourned until 9am, Wednesday 24 June 2015. The first program information sessions will commence at 11am today for Your Brisbane in the Council Chamber and City Governance in the Balmoral Room.