Better trading conditions have done little to quell nervousness amongst Tasmanian small and medium businesses, according to the latest Sensis® Business Index.
Report author Ms Christena Singh said despite profitability and sales improving in Tasmania during the quarter, business confidence was low.
“Business confidence remains low in Tasmania because of concerns about a decrease in business, economic instability and negative conditions in the local area,” Ms Singh explained.
Overall, three in 10 Tasmanian businesses are worried about their business prospects for the year ahead, with five in 10 confident and the remainder neutral.
The Sensis® Business Index shows profitability and sales improved strongly in Tasmania during the quarter, but remain in negative territory, although employment continued to deteriorate.
Tasmanian small businesses are expecting the nation’s weakest trading conditions during the coming quarter.
Support for the policies of the Tasmanian Government continued to fall during the quarter, with the government remaining the least popular state or territory government.
The key reasons Tasmanian small businesses said they disapproved of the state government’s policies were perceptions about:
Government being manipulated by The Greens
Issues with forest policies
Need to get the economy going.
Check the Sensis Key Tasmanian Indicators for March 2012 Sensis® Business Index: here
• Andrew Darby, The Age: Tasmania’s Bell Bay out in the cold
March 6, 2012
AMBITIONS for Bell Bay to grow into one of the nation’s regional industrial heartlands are receding as heavy manufacturing braces for another hit there.
The northern Tasmanian port’s longest-standing plant, the Rio Tinto Alcan smelter, is the latest to face operational pressure with Rio Tinto ripening its aluminium assets for divestment.
The 550 workers at the 1955-founded aluminium smelter, regarded as the first in the southern hemisphere, have been told of tough market conditions, potential potline suspensions and possible future plant closure.
”We are leaving no stone unturned as we try to make Bell Bay resilient in any market conditions,” the Bell Bay Aluminium general manager, Ray Mostogl, said yesterday.
The warning is the latest to jangle nerves in the Tamar estuary, where infrastructure support for manufacturing is diminishing and Gunns’ $2.3 billion pulp mill is unrealised.
Alongside Alcan, the BHP-Anglo American Temco manganese- smelter joint venture is about to suspend operations, keeping permanent staff on while its future is reviewed in the next three months.
Across the estuary at the Beaconsfield gold mine, 150 jobs will go by the end of June when, BCD Resources NL says, the remaining viable ore will have been extracted.
At the same time, direct sea freight and bulk shipping services that underpinned industrial competitiveness are disappearing, as are hopes for a port expansion.
Nearly a year ago, Bell Bay’s weekly international service to Asia ended and, late last year, Agility Shipping withdrew the port’s sole container freight service to Melbourne. ”We can confirm Agility will not be pursuing any form of Bass Strait shipping service in the foreseeable future,” Agility Logistic’s general manager (domestic), Frank Guerra, said.
The loss of services effectively added $1000 for each international container passing through Melbourne, plus hundreds of dollars for road services to north-west coastal ports, the Tasmanian Freight Logistics Council’s chief executive, Rob McGuire, said.
”On top of the high dollar and other pressures on competition, the loss of something like a direct container service is the kind of thing that could push a company over the edge,” Mr McGuire said
Read more: http://www.smh.com.au/business/tasmanias-bell-bay-out-in-the-cold-20120305-1ue84.html#ixzz1oHsMrCnx
• Yesterday on Tasmanian Times: Manufacturing fears highlight need for new economic direction
• RESTART TAX REFORM
Tim Morris MP
Greens Treasury Spokesperson
The Tasmanian Greens today called for the resumption of the review of the State’s taxation system, which was prematurely and inexplicably dumped by Labor and Liberal last year.
Greens Treasury spokesperson Tim Morris MP also warned that failing to reform the State’s taxes could risk further penalisation through the GST redistribution process, as threatened by the Federal Treasurer, Wayne Swan.
“It’s not too late to reinstate the State Taxation Review, even if it has to be in a slightly different form,” Mr Morris said.
“For example, it could be Treasury that is charged with concluding the review.”
“Rather than letting the former Panel’s work all go to waste, there’s an opportunity here to at least produce a white paper, or options paper, to get value out of the work already done.”
“When the Labor and Liberal parties colluded to dump the State Taxation Review last year, they passed up an opportunity to streamline and modernise our tax system.”
“They have also placed the state in a position where the failure to reform on taxes could jeopardise some future GST income.”
“The Greens believe that the only responsible course of action is to resume this process, to improve the long-standing inefficiencies in Tasmania’s taxation system,” Mr Morris said.
Text of Motion tabled today by Tim Morris MP:
That this House notes the ongoing need for reform of the state based taxation system, for the following reasons:
1. To improve the efficiency of the taxation system which will reduce the cost of collection taxation
2. To improve the fairness of the taxation system so that those who can least afford to pay tax are not put at a disadvantage to those who can afford to contribute
3. To simplify taxation system so that it is easier for the community to understand and therefore comply with
4. To make sure the taxation system has minimises distortion of investment decisions unless there is a deliberate policy position to do so, and
Further, this House calls upon the Treasurer to recommence the Taxation Review, without the former Panel, in some manner, to build upon the work already undertaken by the Panel, so as to produce a White paper, or options paper, on the need for reform of the state’s taxation base.
• FUNDING BOOST TO COST OF LIVING STRATEGY WELCOME
Nick McKim MP
Greens Leader
The Tasmanian Greens welcomed the Premier’s announcement today of a $5 million investment to implement key aspects of Tasmania’s Cost of Living Strategy, which was developed by Professor David Adams with resources obtained for him by the Greens in the 2010 State Budget.
Greens Leader Nick McKim MP said the investment announcements made by the Premier were consistent with Greens’ policy to strengthen communities while building a more diversified and robust economy.
Mr McKim also said that the Premier’s announced delegation to Asia could prove useful to assist in diversifying Tasmania’s economic base, so long as it did not involve old-style locking in of woodchip export markets.
“The Greens welcome this dedicated funding boost of $5 million to implement key planks of the Cost of Living Strategy, as this was our initiative and is close to our hearts,” Mr McKim said.
“The Cost of Living Strategy was described by Professor Adams as a first for the nation, and this would not have happened without the Greens.”
“It is very significant that addressing the cost of food and other basic essentials, especially during tough economic times, is a focus of this government and will be underpinned by this new dedicated funding.”
“Similarly we took to the 2010 State election a policy initiative to invest into our hospitality and training sector, so the announced dedicated funding of $200, 000 is welcome.”
“The Greens also have long advocated strengthening the fabric of our regional and rural communities, and we welcome the investment of $950, 000 over two years, to assist in managing the change that is inevitable when our economy is undertaking the transition currently underway.”
“The proposed economic delegation to Asia, which the Premier states is in recognition of the fact that we are in what is described as the Asian Century, could prove useful for the State should it be about tapping into these growing new middle classes for tourism and other high value-added quality products such as food, wine and art.”
“The commitment to produce a White Paper from this delegation should provide useful basis for an informed debate,” Mr McKim said.
