David Killick, Mercury:
TASMANIA’S economy is weathering the global downturn well, says Access Economics.
But it warns the State faces significant long-term challenges if it is to remain ahead of the pack.
Its September Business Outlook says government stimulus packages are driving global economic recovery worldwide.
The consultancy says Australia’s economy has outperformed the rest of the world because of bumper commodity prices, a healthy banking system, flexible employment markets and a floating exchange rate — but rising interest rates will slow recovery next year.
The report says Tasmania has been insulated from the highs and lows but faces significant challenges to maintain a good economic performance.
“Tasmania was never a full participant in the boom and it isn’t a full participant in the bust either,” the report says.
“Tasmania faces fewer demand negatives than other states in the short term but it has more supply negatives than other states over the longer term — particularly slower growth in its working-aged population and slower growth in the capital stock for those workers to work with.
“So the short term looks sweet but the longer term … may see a reversion to trend.” Read more here
There seems to be a disconnect here … weren’t we going to go down the tubes without the Jobs, Jobs, Jobs pulp mill; wouldn’t investors be dissuaded from Tasmania if the Ralphs Bay canal estate did not go ahead; isn’t the $25 million Tarkine Road vital to save the North-West Coast from sinking into oblivion … etc, etc, etc.
It seems Tasmania has miraculously survived, in fact prospered, in spite of, not because of, State Labor’s guidance; it’s been a paradoxical trend against State Labor’s insistence on adherence to the old corporatist paradigm of Cargo-Cult, Golden Calf of corporate, extractive and consumer dominance.
Please explain?
Lindsay Tuffin
