Newman boasts $186.5m in savings

The Queensland government has outlined $186.5 million in savings found through its mission to cut costs since winning office two months ago.

Premier Campbell Newman has been warning there may be a rude shock in an interim audit of the state’s books, to be released by former federal treasurer Peter Costello on Friday.

He says he hasn’t yet seen the document, but believes the state’s financial position is “very, very, very serious”.

Mr Newman on Thursday told reporters cost cutting had already saved almost $187 million since the March election – or about $2.8 million a day.

Savings measures included axing Labor-designed climate change initiatives, travel, advertising and consultancies.

The government intends to cut public servants on temporary contracts in “non-frontline” roles, but Mr Newman this week left room to move on permanent staff too, saying there were no guarantees.

On Thursday he said he would do everything possible to protect permanent staff, but couldn’t do the same for those on temporary contracts.

“Temporary contracts are temporary contracts and as people’s contracts expire sadly it’s probably not going to be possible to keep them on,” he said.

“My heart goes out to those people.”

Mr Newman has warned Queensland’s debt may be even worse than the forecast $85 billion by 2014/15 and ratings agency Fitch could downgrade the state’s credit rating from AA+ to AA.

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