Release Date: 5/06/2013
PEAK business organisation the Tasmanian Chamber of Commerce and Industry (TCCI) says
the latest national account figures show that the Tasmanian economy remains in an extremely
fragile state.
The figures show Tasmania lagging all states and territories.
TCCI Chief Executive Michael Bailey says State final demand continues to be weak, falling by a
further 1.0 per cent in the March quarter.
“This is not surprising, although the rate of decline has eased compared to previous quarters,”
Mr Bailey said.
“The small positive signs we are seeing, for example a lift in business confidence from an
historical low base and an improvement in retail conditions, are yet to impact on broader
economic measures.
“One positive is the strong growth in the value of export goods, which were 12 per cent
stronger than the March quarter 2012.
“Capital investment by businesses continues to be weak, with another fall this quarter.
“While it is imperative that private sector investment drives the economic recovery, sustained
improvement in conditions and confidence will be required to turn this trend around.”
Mr Bailey said the lower dollar would help, particularly exporters and tourism, but this would be
offset by higher import prices especially for consumer good and capital inputs.
“We also require good policy that supports business, including investment in resources and
primary productions sectors, and sustainable long-term solutions to Tasmania’s other
challenges such as freight links and human capital development in the form of education,
skills and health outcomes.
“Throwing money at these issues will not deliver the results without the required policy work
and focus on genuine reforms,” Mr Bailey said.
Ends….
Contact TCCI Chief Executive Michael Bailey, mobile 0437 322 338