After inheriting zero net debt from Labor in 2014, the Liberals have blown the budget so badly Tasmania is set to have the worst finances in the nation within three years.
Saul Eslake’s Independent Review of Tasmania’s State Finances has found this mess is “entirely attributable” to state government policy. He couldn’t be clearer that the Liberals have put Tasmania in this terrible position.
The Liberals’ budget disaster is also terrible news for Tasmania’s economy.
Mr Eslake’s report shows the state government’s decisions have a larger impact on jobs and the economy than in mainland states, due to the larger role the public sector plays in Tasmania.
That means the Liberals’ plans to cut $300 million from essential services won’t just hurt Tasmanians who need healthcare, housing, or help from the police, but will damage the broader economy as well.
Another economic hit is the last thing Tasmanians need right now.
Five thousand jobs have already been lost since Jeremy Rockliff started governing in minority. Tasmania has crashed from top of the CommSec economic rankings, to sixth. Working-age Tasmanians are leaving for the mainland in record numbers – a planeload every four days. And due to Tasmania’s lagging performance on workforce participation and productivity, the economic gap between Tasmania and the mainland is now bigger than it has ever been.
After already proving they can’t be trusted to manage the state’s finances, the Liberals’ budget disaster and job cuts look set to erode any trust that was left in their ability to manage the economy, too.
Josh Willie MP
Shadow Treasurer
