Newman warns of 'horror' Queensland budget

17 Aug 2012, 4:23 pm   -   Source: AAP

The Queensland government says it has tough financial decisions to make, especially over public servants, less than a month before its first budget.

The Newman government has labelled its own upcoming budget a "horror", and that's the way it looks for public servants, the resources industry and regional Queensland.

The September 11 budget will be D-day for public servants to find out if they will lose their jobs as part of the state government's cost-cutting measures.

Treasurer Tim Nicholls says public servants won't know until then whether they are among the 20,000 workers the government says it can't afford.

"So for my own department we're in the process of making sure we're able to let people know what their position is as soon as the budget's released," he told reporters on Friday.

Big business and resource companies are also looking towards the budget with bated breath after Mr Nicholls indicated increases in mining royalties and business and gambling taxes could be needed to help claw back state debt.

"We are looking at a range of taxes... one of those recommended by the commission of audit, obviously out there, is royalties," he said.

"Let's see what the decision is before speculating on what the impact will be on the mining companies' employment prospects."

The Queensland Resources Council has warned the move could kill off more mines, as companies struggle with operating costs due to falling commodity prices.

The group's CEO Michael Roche says any increase in royalties could cost jobs.

"For some mines I fear it could be the tipping point for them," he told reporters in Brisbane.

Regional areas will also have to fight for their share of $60 million announced in the first year of the government's Royalties to the Regions election promise.

While the program will amount to $495 million over four years, Deputy Premier Jeff Seeney said the government couldn't afford to offer any more in its first budget.

Mr Seeney conceded the money wouldn't even pay to fix the troublesome Peak Downs Highway in central Queensland, let alone the hundreds of other projects it's needed for.

But it was a start, he said.

"As my colleagues Tim Nicholls and the Premier Campbell Newman are all too often reminding the people of Queensland, this is going to be a horror budget," Mr Seeney told a local government conference on Friday.

"There's not a lot of money involved, but I think it's important that we get this program in place."

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