Release Date: 14/05/2013
PEAK employer body the Tasmanian Chamber of Commerce and Industry (TCCI) says there is little joy in the federal budget for Tasmanian small business, the economy and employment.
TCCI Chief economist Phil Bayley said the positives were few in the budget – some spending for road infrastructure, the forest agreement and little else.
“There is $500 million over 10 years for the Midland Highway, appropriate funding fora key transport and freight link.
“However,there is still more spending than savings in the budget and the savings announced are not that big. The Treasurer could have cut much harder and the economy and the nation would have been better off for it,” Mr Bayley said.
“The Treasurer has delivered a record deficit and promised another huge one next year with even more spending than savings. We are locked into years of deficits and the promise of a future surplus is questionable given the current budget approach and strategy.
“The NBN roll-out is making a significant contribution to the nation’s debt. As well, the Gonski education reforms and the National Disability Insurance Scheme funding present major challenges for Tasmania and will lock the State Government into a funding trap.”
Mr Bayley said the changes in welfare funding would also hit Tasmania hard, given the State’s demographic profile.
“The changes to carbon tax compensation because of the Government’s failure to accurately predict the world price for carbon will also impact on Tasmania.
“The Government has failed to make the hard changes on spending and has done nothing to encourage business to grow the economy. In fact by running excessive deficits and adding to business taxes and costs it will promote a further decline in business confidence and has done nothing to assist growth.
“Small business is too big to ignore, but it appears the Government has done that in this budget."