Peter Gutwein, Treasurer: Labor’s Budget cuts

Opposition Leader Bryan Green must own up to cuts the former Government left behind in the state budget.

In the 2011-12 Budget the Labor-Green Government promised to reduce the public service by the equivalent of 1700 FTEs.

This was Labor’s savings target but in typical fashion they fell off course and failed to deliver. They must now own up to leaving behind cuts equivalent to 1000 FTEs in the budget.
Will Bryan Green own up or is he now trying to disown Labor’s own budget?

The legacy of the Labor-Green Government is that Tasmania has been left with a $1.1 billion budget black hole, rising debt and rising interest payments that if not addressed will rob Tasmanians of the basic services they need.

The Liberal Government will rebuild the budget day by day, dollar by dollar with an aim of returning the budget to surplus within six years. This is what we were elected to do.

We will start by implementing the sensible savings we outlined during the election campaign. This includes savings of an additional 500 FTES over two years.

The August budget will be disciplined and responsible, it will be tough but it won’t be a slash and burn budget.

We are very mindful of the importance of government spending to Tasmania’s economy, to essential services, and to jobs.

Recognising the need for budget discipline until the budget is delivered, the Government has commenced the implementation of our election savings strategies, such as commencing the merger of DEDTA and DIER, reviewing boards and committees, reducing the cost of ministerial transport, and we have implemented strict vacancy control across government ensuring that only essential positions are filled.

In addition to reviewing revenue and expenditure requirements during the 2014/15 budget development process, agencies are also being instructed for the remainder of 2013/14 to immediately:

• review all discretionary funding including consultancies, transport and travel policies

• suspend all expenditure on non-essential advertising; and,

• review spending on discretionary grant programs.

The task will not be easy but with a disciplined and responsible approach we will fix the mess that Labor and the Greens have left us.
Peter Gutwein, Treasurer