Bartlett’s `tiger economy’ hit by jobless figures

A SHARP rise in unemployment in Tasmania threatens to damage Labor’s economic credentials and undermine Premier David Bartlett’s election pledge to create 15,000 jobs in four years.

The island state once again has the country’s worst unemployment rate, after it jumped from 5.3 per cent in January to 6.4 per cent last month in seasonally adjusted terms. Its timing could not be worse for the government, which goes to the polls on March 20 with economic management and a jobs pledge at the centre of its pitch to voters.

The Liberal opposition was quick to seize on the bad news. “The number of unemployed people in Tasmania has jumped from 9400 in September
2008 to 16,100 in February 2010,” said Treasury spokesman Peter Gutwein.

“So on David Bartlett’s watch as Premier, Tasmania has lost nearly 7000 jobs,” he said. “This exposes the hollowness of (his) promise to create 15,000 jobs if re-elected.”

Tasmania, praised this week by Kevin Rudd for its so-called “tiger economy”, survived the global economic crisis relatively well. But as is often the case, it appears to be taking longer to recover, with key traditional industries – such as pulp and paper, forestry and vegetable processing – culling jobs.

The state’s northwest has been hardest hit, with 190 jobs shed from McCain’s vegetable processing plant in Smithton and 250 gone or going from PaperlinX mill at Wesley Vale, as well as part of its Burnie plant.

And a further 150 jobs at PaperlinX’s Burnie mill will go unless a buyer is soon found for the plant, while hundreds of forest contractors and related workers have lost work because of a slump in demand for export woodchips.

Gunns Ltd’s share price has slumped following a profit dive, while Forest Enterprises Australia is struggling with debt and discussing a possible bailout with government.

Wesley Vale paper mill cutter operator Dean Smith, 42, will lose his job on polling day, March 20.