LNP SLASH-AND-BURN HITS PROPERTY SECTOR

Media Release

Shadow Treasurer Curtis Pitt says the Property Council of Australia’s latest Office Market Report has blamed the Newman Government’s mass sackings and frontline service cuts for depressing the Brisbane CBD office market, leading to historically high vacancy rates for office space.

“The LNP promised before the 2012 election to get the property sector ‘back on track’, so I wonder if the Newman Government will own up to the fact its own slash-and-burn policies are directly to blame for depressing a vital sector of the state’s economy?” Mr Pitt said.

“The latest Office Market Report reveals a Brisbane CBD vacancy rate of 14.2% — the highest level on record."

“The Property Council has directly attributed this unprecedented result to the Newman Government’s own actions."

“Its latest report clearly states that the current market conditions reflect ‘the impact of the Queensland Government’s continued withdrawal from leased space’.

“Before the 2012 state election the Premier Campbell Newman and Treasurer Tim Nicholls promised to revitalise the property sector, but then once in office they have done everything to drive it down."

“They sacked close to 20,000 government workers; cut frontline services; and reduced the government’s commitment to Brisbane CBD office accommodation which has now been directly identified as having depressed the office market.”

Mr Pitt said the Property Council also said there had been cutbacks in Brisbane CBD accommodation needs by mining companies.

“As we know these companies have been hit hard by the LNP’s higher mining royalties which has caused them to make adjustments in their running costs including office needs.”

Mr Pitt said Mr Nicholls continued to point to the LNP’s unnecessary new Executive Building as a “good deal” for taxpayers and a stimulus for the property industry.

“But as the Auditor-General has pointed out, this ‘good deal’ will waste $2.6 billion over the next 10 to 15 years to rent back the seven buildings Mr Nicholls sold at $237 million less than their value, and rent the new Executive Building,” he said.

“The Treasurer has bungled this project which will see taxpayers pay $2.6 billion in dead money and in the end own nothing and now we see that same bungling approach has seen the property sector hit by historically high vacancy rates,” he said.