Media release – Michael Ferguson, Deputy Premier, Treasurer, Minister for Infrastructure and Transport, Minister for Planning, Member for Bass, 28 February 2024
PEFO Report Confirms Tasmania Cannot Afford Another Coalition Of Chaos
Today’s Pre-election Financial Outlook from independent Treasury officials confirms no change from the Revised Estimates Report released earlier this month.
Importantly, it highlights how important it is that parties have sensible, costed and fully funded election commitments – as we do, and unlike Labor.
Labor needs to provide each and every one of its policies for immediate independent costing, not at three minutes to midnight on election eve.
The small variation in the employment outlook underlines just how vital it is to re-elect a strong majority Liberal Government to provide the stability and certainty our business sector needs.
The report also confirms the importance of the Rockliff Liberal Government’s cap on public spending allocated to the Mac Point stadium. As the Premier has said, we will not be paying a cent more than the $375 million currently allocated to the project.
It also highlights the damage done to the budget during the last Labor-Green government by Labor’s $1.5 billion dollar raid on the state’s superannuation fund.
Tasmania simply cannot afford a Labor-led Coalition of Chaos which would once again drive our public finances into the ground and smash the state’s economy.
Media release – Shane Broad MP, Shadow Treasurer, 28 February 2024
Pre-Election Financial Outlook lays bare 10 years of Liberal damage
The Pre-Election Financial Outlook released today highlights the extraordinary damage the Liberals have done to the budget after 10 years in office.
After inheriting a state completely free of net debt, the Treasury report outlines that on a per capita basis Tasmania’s total government debt is now “the second highest level of all states, with only Victoria higher.”
The report is also forecasting job losses for Tasmanians across the state, with employment forecasts revised down since December.
Worst of all, there is nothing to show for the Liberals’ mismanagement. The state budget might be bad, but household budgets are under even more pressure.
The last thing Tasmania can afford is another four years of the Liberals.
Read the full PEFO report here: Pre-Election Financial Outlook Report – February 2024 (treasury.tas.gov.au).
John Lawrence
March 1, 2024 at 14:17
Fergo is telling porkies. The fund was never raided. There was never any cash there in the first place.
The Labor government tried for a while to window dress but there was never any available cash, just a heap of worthless IOUs which were thrown into the bin in 2012. The Liberals continue with the same approach as Labor, paying defined benefits on an emerging cost basis and not setting aside any amounts or pretending to do so as Labor did until 2012.
Unfortunately, that now means borrowing every year to pay benefits. This year the extra borrowings needed are estimated to be $352 million. Extra borrowings will peak at $500 million pa in 10 years. These amounts pay pensions and lump sums to retirees.
The amounts the Liberals should have set aside for defined benefit members who are still employed since 2014 is $1.2 billion, according to the State actuary. They have set aside none of this, not even the Super Guarantee Levy portion. It’s no different to what Fergo claims Labor did.
A bit more honesty and a little less sanctimony wouldn’t go astray.
For more info on how the defined benefit scheme works see Tasfintalk: Election 2024: Debt servicing