The Tasmanian Greens today released their budget savings of $265 million, including withdrawing $55 million from the Forestry Tasmania contingency fund.
Greens Leader Nick McKim MP said that the Greens agreed with the Tasmanian Liberals that subsidies should be withdrawn from the native forest sector and reinvested into essential public services.
“Will Hodgman and Peter Gutwein have basically got this one right,” Mr McKim said.
“However, unlike the Liberals, the Greens remain supporters of the Tasmanian Forests Agreement legislation, and would give the native forest industry the chance to show it can stand on its own two feet by continuing transition funding for up to two years.”
“Unlike the Liberals, our savings have been achieved without having to sack a single public servant.”
“The TFA did not require any public funding of the native forest sector.”
“Recent reports that industry signatories are supporting Tony Abbott’s plan to rip up the recent World Heritage Area extension show that if the TFA falls over it will be because of Mr Abbott, Mr Hodgman and the timber industry.”
• The Greens have identified a total of $265.65 million in savings over the forward estimates, detailed below.
Forestry Tasmania Contingency Fund: The intent of this contingency allocation was to allow the GBE time to transition into financial viability. The Greens will continue to provide for that transition, but will reduce the amount from the current $70 million to $15 million – providing a saving of $55million. This is consistent with the principle of weaning GBEs off reliance on public subsidies, and encouraging Forestry Tasmania to move to full cost recovery for its timber operations. It also reflects the fact that under its recent restructure, including the transfer of reserves to Parks and Wildlife, Forestry Tasmania will have a reduced amount of Community Service Obligations (CSOs) to meet.
Burnie Ports Upgrade: The Greens stated at the time of this $8 million announcement that it was another example of corporate welfare.
$110 million Road Funding Package: The Greens will defer by 20% the proposed $110 million Community Road package, but we would proceed with all of those roadworks identified as having a road safety benefit. This initiative provides for $22 million savings over the forward estimates. The Greens have been long on the record that roads have been funded at the expense of investment into public transport and active transport.
Consultants: the current 2013-14 budget has $25 million allocated for consultancies. A 15% reduction provides a savings of $11.25 million over the forward estimates.
Travel and communications: the current budget has $100 million allocated for 2013-14. A 20% reduction provides a savings of $60 million over the forward estimates.
Supplies and consumables: The Greens identify through the departmental forward estimates a scope to reduce supplies and consumables by $3 million per year. This also reflects a higher take up of internet and ICT operations for communications, research and publications.
Future Infrastructure Investment: We will adopt $35 million in savings from this unallocated budget provision.
Treasurer’s Reserve: $10 million is reserved by law.
Project planning contingency: we will reduce this to $200, 000 per annum, creating a saving of $5.4 million over the forward estimates.
MAIB Dividends: The MAIB dividend rate was reduced from 70% to 50% in the 2011-12 State Budget. However the Mid-year report indicates that MAIB’s dividends will increase over the forward estimates, therefore the rate can be returned to 70%.
Greens Leader Nick McKim
