THE Palaszczuk Government's refusal to sell state owned assets appears set to stall the development of Northern Australia.
Energy Minister Mark Bailey accused the Abbott Government of being a bully by insisting that Queensland sold state owned assets to fund projects in Queensland identified in the federal government's white paper on Developing of Northern Australia which was released on Thursday.
Speaking at the Rural Press Club in Brisbane, Mr Bailey said the federal government should fund the projects.
He said the Palaszczuk Government had a mandate following the January 31 Queensland election not to sell state owned assets and should not be required to repay loans made by the federal government.
His comments come despite the cash-strapped Palaszczuk Government's announcement in early March that it would sell "non-essential" state owned assets.
However, Mr Bailey told the Rural Press Club his government was committed to rural and regional Queensland.
He said the proposed 2 per cent ethanol content in petrol sold in Queensland from July 2016 and the development of a biofuels industry were examples of the Palaszczuk Government's commitment to both job and industry creation.
The announcement of a 2pc ethanol mandate has been welcomed by both the cane and grains industry but has received opposition from grain reliant industries including feedlots which say it will unfairly increase grain prices.
Opposition Leader Lawrence Springborg said the federal Government's white paper on Developing of Northern Australia was a once in a lifetime opportunity.
"We fully support this strategic and targeted plan that puts $5 billion on the table for the north," Mr Springborg said.
"One would hope the state Labor Government has enough sense to motivate itself and get the best for Queensland out of this plan.
"When you are completely clueless and have no plan like Labor, the best thing you can do is associate yourself with a government that has got one."
Mr Bailey is the member for the Brisbane seat of Yerongpilly and is the Minister for Main Roads, Road Safety and Ports and Minister for Energy and Water Supply.
