Release Date: 28/04/2014
The Tasmanian Chamber of Commerce and Industry supports the need for more drastic savings measures by the State Government following the revelation of the State facing a $1billion plus budget black hole.
TCCI CEO Michael Bailey said it is time for a major structural change within the public sector which may mean forced redundancies.
“This is not just a political ploy by a new Government inflating a budget deficit and crying wolf,” Mr Bailey said.
“Unless something is done our fiscal problems will worsen making it harder and harder to pull back from the precipice.
“We’re at the stage where private enterprise would be faced with a round of forced redundancies to keep their businesses afloat. I don’t expect government to go down that track but it really highlights the dire situation of the State’s finances.”
Mr Bailey’s comments were voiced minutes after a lengthy and frank briefing with Treasurer Peter Gutwein this afternoon.
“There’s no hiding it’s a mess. The vault is empty but worse is yet to come with the four and five year forecasts revealing the impact of the back ended costs of projects such as education health and the need for significant contributions to the diluted State superannuation fund.
“The bright light is that in difficult times, tough but creative decisions need to be made for long term solutions, as a near bankrupt Victoria initiated 20 odd years ago.”
Mr Bailey said many of the decisions will create enormous pressure on the new Government but the economic and social outcomes should override political impacts.
“Unfortunately it’s our debt and we all have to help pay it off.”
Contact: TCCI Chief Executive, Michael Bailey, mobile 0437 322 338