Labor’s Budget Reply

Rebecca White MP, Tasmanian Labor Leader, 31 August 2021

Budget leaves too many Tasmanians behind

Ordinary Tasmanians continue to be left behind as the Liberal government refuses to address cost of living issues or Tasmania’s record debt.

Labor Leader Rebecca White has delivered her budget reply speech to State Parliament today, saying last week’s state budget has done nothing for Tasmanian families and individuals struggling to pay the rent and other everyday expenses.

“Over the past eight years, Peter Gutwein and the Liberals have spent a lot of time talking up their economic management,” Ms White said.

“But as Peter Gutwein’s eighth budget as Treasurer demonstrated last week, the government is taking us deeper into debt with very little to show for it, and far too many Tasmanian families and individuals are struggling to keep their heads above water.

“This government is racking up debts of $2 million a day – debt we are leaving for our children to pay off.

“But health and housing waiting lists continue to grow and we have the worst education outcomes in the country.

“Wages are not keeping pace with the rising cost of living and the housing crisis is pushing families to breaking point.

“Over the past 20 years, rental affordability has declined in Tasmania at ten times the national average and rents are now the least affordable in the country, while wages growth has stalled.

“Meanwhile, essential items such as groceries, petrol prices, power bills, water bills, council rates, childcare, parking, phone bills and internet bills have skyrocketed.

“Liberal economic management is not working for Tasmanian families and under their watch, the Australian dream of home ownership is just that – a dream.

“Every parent, grandparent, aunt and uncle I talk to wants their kids to have the same opportunities and a better life than they had.

“Labor is determined to make sure that all Tasmanians get a fair go and that our economy is working for them and their future.”

Shane Broad MP, Shadow Minister for Resources, 31 August 2021

Taxpayers foot $2 million-a-day debt bill for Gutwein’s broken budget

Tasmanian taxpayers have been lumbered with a bill of $2 million a day – or $86,000 each hour – as the Treasurer and Premier’s broken budget plunges the state into unprecedented debt.

Shadow Treasurer Shane Broad said as Tasmania barrels toward $3.5 billion in debt – three times the amount of debt experienced under the Liberals 25 years ago – there’s no end in sight to the Gutwein Government’s financial mismanagement.

‘When the Liberals came into government in 2014, the state had been debt free for a decade after Labor Premier Jim Bacon paid off the Rundle Government debt in 2004,” Dr Broad said.

“Now Treasury has already warned the government in June that with the unsustainability of the state’s finances Tasmania’s debt could grow to as much as $30 billion by 2035.

“But the government is blissfully ignoring this dire warning, deceitfully telling Tasmanians we are on the way to be back in the black.

“The truth is we are on a highway to hell.

“It’s not even remotely reasonable for the Liberal Government to be trying to spin Tasmanians when they are in fact being duped.

“How can Peter Gutwein and his Finance Minister Michael Ferguson keep a straight face in telling Tasmanians we are back in the black when they’re borrowing more than $2 million a day every day for the next four years?

“This is a Premier who did not even mention the word ‘debt’ when he delivered his budget.

“That’s because he is determined to hide the true picture which is extraordinary debt, the equivalent of each and every Tasmanian having a $50,000 credit card limit which has been maxed out.”

---

Media release – Michael Ferguson, Minister for Finance, 31 August 2021

Shadow Treasurer’s cringe-worthy Budget blunders

The only thing more awkward than the Shadow Treasurer’s reckless interpretation of the Budget during question time, was the cringe-worthy fist pump he appeared to give himself.

Despite Dr Broad’s desperate efforts to deflect from the fact Labor has no alternative plan, the Tasmanian Government’s Budget Papers show clearly that the Budget returns to a cash operating surplus of $368.8 million in 2022-23, and in 2023-24 the Budget returns to a Net Operating Surplus of $39.4 million, increasing to $126.8 million in 2024-25.

This may be an inconvenient truth for Dr Broad because we know that had Labor got into government, the State’s finances would be a mess.

If Labor is going to use its irresponsible election cash-splash as an alternative budget base, it would cost the Budget an extra $2 billion.

The facts are clear – under Labor, Tasmania would be plunged deeper into deficit and another $2 billion of debt with no path out.

In contrast, we are using our strong balance sheet to invest and support 28,000 jobs over the next four years.

And our borrowings are manageable, the lowest per capita of all the states.

Is Dr Broad questioning Treasury’s integrity?

Or the credibility of S&P Global, who stated on 26 August 2021:

“Tasmania’s 2021-22 Budget shows an improving economic outlook that is supporting a return to operating surpluses . . Debt will rise as Tasmania (AA+.Stable-1+) funds more health services and infrastructure investment. However, the state’s debt will remain low compared with its similarly rated peers.”

While Labor is busy navel gazing and solo fist-pumping, the majority Liberal Tasmanian Government is delivering a plan to keep people safe, support business, grow the economy, create jobs and secure Tasmania’s future.