Queensland premier highlights benefits of QR National sale
Queensland Premier Anna Bligh is convinced that the opportunities carried by the November 22 public float of Queensland Rail National's coal freight operations offer sufficient incentives that effectively eclipse the initiative's alleged risks.
The Premier told ABC over the weekend that floating QR National points to opportunities that far outweigh the attending risks of the sale.
The state government is poised to amass some $5 billion through the float initiative and the company's sale would not entirely leave out the government since it would retain ownership by up to 40 percent following the public offering that would see up to 1.6 million shares being issued with price ranges of between $2.50 and $3.00 per share.
Analysts observed that QR National prospectus warns of potential risks and chief of them were federal-backed taxes such as the minerals resource rent tax and the carbon tax.
Ms Bligh, however, said that the alleged risks would not really impact on QR National though he conceded that in order to properly assess the risks and to comply with the law, the Queensland government is oblige to "contemplate what risks there might be so that investors make fully informed decisions."
She added that the asset sale would lead to considerable benefits for taxpayers if even the move proved to be unpopular for most of the state's residents as she gave assurance that Queenslanders would definitely "see a benefit to their budget that'll be delivered back to them in better services and better infrastructure."
On the other hand, state opposition leader John-Paul Langbroek maintained that Queensland residents believe that the QR National sale was not the answer to the state's budget problems as he added that most Queenslanders see the initiative as merely purchasing assets that the state already own.
Mr Langbroek further stressed that selling QR National would not earn back for Queensland its AAA credit rating as he pointed out that "even the Premier can't give us any other than a number of different dates about when we might get that cherished AAA credit rating back."
Also, the state's Rail, Tram and Bus Union (RTBU) added its voice to the growing opposition on the QR National sale though union spokesman Owen Doogan said that his group is planning to acquire shares that would enable RTBU to "campaign inside their annual general meetings."