NSW infrastructure sales could benefit from the QLD election as funds reassess their strategy, says Harvey Kalman, Equity Trustees’ head of EQT corporate fiduciary and financial services.
All asset sales of Queensland’s $37 billion privatisation program are on hold as businesses reel from the huge swing against the one-term Newman government.
“It is a shame the new government wants to stop the selling of assets. It would have really benefitted the voters,” said Kalman. “Funds will no longer commit to Queensland. They will look abroad or to New South Wales.”
A flurry of emails landed in lawyer’s inboxes on Monday, according to Kalman, as businesses scramble to change strategy, with the reverberations from the election’s shock result continuing to resound.
Kalman added that the future is uncertain because the new MPs lack experience. This is true even of premier Palaszczuk who has not before held a major economic portfolio.
“We will have to wait to see if they follow the stupidity in Victoria, where they are ripping up deals and not getting value for money,” Kalman said.
The Baird government in NSW is committed to a model of selling existing assets to fund the construction of much needed infrastructure projects, such as a new transport tunnel under Sydney harbour.