PEAK business organisation, the Tasmanian Chamber of Commerce and Industry (TCCI) has welcomed the Liberal Opposition’s commitment to kick-start the economy should it become Government at the next State Election.
Addressing a TCCI Alternative Budget Briefing in Hobart this morning, Opposition Leader Will Hodgman promised to spend an extra $280 million on initiatives to boost the Tasmanian economy.
Mr Hodgman said the extra spending would come from $507 million in total savings the Liberals had identified in the current Labor – Green Government’s Budget. Much of this would be achieved by a further reduction of 500 full-time equivalent public sector jobs.
TCCI Chief Economist Phil Bayley said in contrast to the Government’s ‘no more cuts’ approach, the Liberal Opposition’s Alternative Budget committed the party, if it forms Government after the State election in March 2014, to a program of deeper spending cuts, partly offset by several initiatives that are largely pitched at promoting business.
Repeating a call made to the Government, Mr Bailey said the Opposition should commit to reinstating the regular reports on fulltime equivalent employment and headcounts in the public sector
“This is the clearest and simplest way for the Government to demonstrate to the community that it is serious about budget savings,” he said.
“With several Opposition initiatives that will assist business in Tasmania, it will be essential to ensure that the new spending maximises outcomes and value for money.
“For instance, while forcing the council-owned TasWater to waive headwork charges for property developers is welcome, it risks spreading the costs across all water infrastructure ratepayers or through higher council rates. The Liberals need to explain if this will be paid by State Treasury, or if all consumers will have to meet the cost.
“Similarly, the $11 million per annum commitment to an international shipping run will support a number of exporters that are desperate for such access to compete in Asian markets, but ensuring that as many exporters (and importers) as possible can benefit is critical.”
The Opposition is also committed to more resources in the public education system, but is yet to explain how it will drive systemic reform to improve learning outcomes and student engagement throughout the system when Tasmania already spends more money and get worse results than other states.
“As always, these examples demonstrate that the devil will be in the implementation and the policy detail,” Mr Bayley said.
“Nevertheless, the Opposition should be commended for putting considerable detail on the table so that it presents a genuine alternative at the election and also for matching the Government’s raising of the payroll tax threshold to $1.25 million.
“Finally, it is important to remember that despite all the talk and action on spending restraint and pro-business policies, there will be many more areas that are ripe for reform.
“We can always hope for deeper reforms to improve the environment for business and the wealth of private citizens,” Mr Bayley said.