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Source: www.cabinet.qld.gov.au/mms/statementsearch.aspx.

Treasurer Andrew Fraser said Queensland’s economic recovery was underway but warned challenges remained.

The first Cabinet meeting of 2010 was briefed by the Treasurer on Queensland’s economic prospects for the year.

“When you get smacked to the canvas, it takes a while to find your feet and box on,” Mr Fraser said.

“As a Government, we’ve always been determined to fight on, and the results are clear - we have had five continuous months of job creation.

“Last month we created 3700 jobs.”

Unemployment is still expected to peak next financial year according to the Mid-Year Review published last month.

“The enduring challenge for Queensland is to generate enough jobs to cater for a growing population.

“Housing and construction finance in Queensland is weighing down activity – as Access Economics said today in their report.”

The Treasurer said the December Business Outlook had upgraded Queensland’s economic outlook for 2010.

“The upgrade and their analysis supports the view that the challenges are still significant but our longer term prospects remain a sure bet.

“The Aussie dollar’s rapid rise was bad news for tourism operators, farmers and other exporters, but its good for some major industries that are making long-term investments in this state, like LNG project proponents.”

Mr Fraser said the delivery of the Government’s $18.2 billion building program was vital to supporting the economy.

“Our population keeps growing, and that brings opportunities and challenges.

“Right now our building program is holding up the construction sector – delivering jobs and economic support today, and the infrastructure for tomorrow.”

Mr Fraser said the tough decisions to prioritise the building program were underpinning the recovery.

“We took the tough choices to support the economy, and we need to maintain our commitment to our economic strategy as the rebuild continues.”

Media contacts: Treasurer’s Office – 3224 4551 or 3224 5982