PERTH (miningweekly.com) – The Queensland resources sector has welcomed the newly elected state government’s first Budget, saying Treasurer Curtis Pitt had delivered on election promises while maintaining a grip on royalties.

Pitt on Tuesday revealed that the Budget provided for a A$962-million operating surplus in 2014/15, rising to A$1.2-billion in 2015/16.

Queensland has not achieved a surplus of this size since 2006/07. Surpluses are forecast to be above A$2-billion for both 2016/17 and 2017/18, with combined surpluses over the next four years predicted to hit A$6.9-billion.

This was despite a forecast write-down of royalty revenue of A$3.2-billion since the Mid-Year Financial and Economic Review and a A$396-million write-down in payroll tax.

“We said there was a better way to manage Queensland and the economy – one that did not involve selling the state's income-generating assets. This Budget keeps that promise,” Pitt said.

“These surpluses will be achieved through a measured, responsible approach to balancing the books. The [Annastacia] Palaszczuk government’s first Budget delivers on all the commitments we made at the election and, as promised, we have more than offset these costs.”

Queensland Resources Council (QRC) CEO Michael Roche said that the Budget was particularly notable for the state’s resources sector, as it maintained royalty stability.

“In calculating likely royalty revenues, the Treasury has sensibly adopted some realistic and achievable assumptions about coal prices for the year ahead, while adopting a conservative exchange rate assumption.

“Royalty revenues also reflect the beginning of the long-term budget dividend from development of an export gas industry, growing to over A$500-million a year by 2018/19.”

Roche pointed out that Queensland’s minerals and metals sector kept delivering to the state, with a budgeted royalty contribution of A$463-million in 2015/16.

He also noted that the Budget delivered A$200-million to the government’s Building our Regions Programme one year earlier than promised.

As part of that programme, the Budget sets aside A$55-million over the period 2015/16 to 2016/17 for the Royalties for Resource Producing Communities Fund.

“There is sure to be substantial interest from resource communities in this fund as there remains a heavy backlog of critical community infrastructure in those communities. Given the strong interest across the political divide on the fly-in, fly-out issue, it is incumbent on the government of the day to ensure that these communities are attractive places for people in which to work and raise a family,” Roche said.