On State Debt, Infrastructure …

Media release – Michael Ferguson, Treasurer, 14 August 2023

Moody’s confirms Tasmania’s sound economic management

The Rockliff Liberal Government welcomes Moody’s latest credit opinion, which confirms our long-term plan is working for the Tasmanian people.

Global ratings agency Moody’s has confirmed the State’s Aa2 credit rating, with a stable outlook forecast.

Moody’s notes:

* Tasmania will continue to “implement policies aimed at maintaining its solid and diverse, albeit small economy, in line with the State’s sound management of its finances in the past”;

*             The State’s new fiscal strategy “provides more financial transparency and a more holistic view on the Government’s finances”; and

*             The “State’s debt burden is moderate compared to its peers.”

Treasurer Michael Ferguson said it was fantastic news that the Liberal Government’s strong financial management has yet again been recognised by Moody’s.

“Having a strong Budget has allowed us to stick to our long-term plan and do what matters for all Tasmanians, such as tackling cost of living, supporting people into their own homes and ensuring Tasmanians get the healthcare system they deserve,” he said.

“The updated opinion recognises the challenges of persistent inflation, expenditure pressures and the Government’s ambitious investment in infrastructure. In particular, we feel pleased to receive a strong endorsement of our new fiscal strategy, which was predictably criticised by the Labor opposition.

“Overall, the rating outlook reflects Moody’s expectation that state revenues and Commonwealth funding (including GST) will remain solid despite a projected slowing in the Australian economy.

“This Government’s sound financial management stands in contrast to Labor’s multi-billion-dollar budget black hole and Rebecca White’s ‘this policy will pay for itself Magic Money Tree.’”

Media release – Shane Broad MP, Shadow Treasurer, 16 August 2023

Even massive infrastructure underspend can’t stave off record debt

Despite an extraordinary infrastructure underspend of nearly $400 million, the minority Liberal government still has Tasmania on a path to more than $5 billion of debt.

This massive failure to deliver the infrastructure Tasmanians have been promised includes nearly $150 million of road upgrades that weren’t delivered, delays in health infrastructure including the Glenorchy Ambulance Station and upgrades at the Royal Hobart Hospital, and delays to long-overdue TAFE facilities.

Over the last ten years the Liberals have consistently failed to deliver the infrastructure they have promised – and these latest delays join a long list of broken promises including an upgraded Launceston General Hospital, a new Tamar Bridge, light rail in Hobart by 2023 and the underground bus mall.

If they haven’t got their act together with infrastructure by now, they never will.

The budget position also benefitted from a $500 million GST uplift, due to the ongoing resilience of the national economy.

State taxes, on the other hand, have remained entirely flat, dispelling any claims from the Treasurer that increased revenues are due to the state of the Tasmanian economy.

The fact is, after ten years in office, the Liberals have driven Tasmania into record debt, continue to post record budget deficits, and consistently fail to deliver the health, educational and transport infrastructure Tasmanians were promised.