Henry Melville
Tasmania with a population comparable to a number of metropolitan councils in Sydney or Melbourne has well over two-thirds of its ‘public purse’ revenue coming direct from the Commonwealth and a declining proportion of overall State budget derived from State taxes, royalties and revenue streams from State GBEs. Most Tasmanians would be ignorant (and perhaps also uninterested) about how the State budget is financed and then allocated across State government departments and public service authorities. In recent years the Tasmanian Government has cried poor and played hard to get on issues like the public hospital system, rabbit eradication on Macquarie Island or the deterioration in Tasmania’s built heritage and yet throws State money at Elwick racecourse redevelopment and sponsorship of the Hawthorn AFL club.
‘Whosoever desires constant success must change his conduct with the times’ – Niccolo Machiavelli
TREASURER Michael Aird reports that Tasmania receives nearly 65% of its State Government from GST receipts from the Commonwealth Government [$2.07 of the $3.2 billion state budget].
This percentage doesn’t include the non-GST revenue streams obtained directly from the Commonwealth government negotiated one-off payments or medium term programs (like Natural Resource Management funding over 5 years) to support Tasmania’s public infrastructure or public service. It also doesn’t include the Commonwealth payments going direct to Tasmanians in the form of regular pensions, drought relief to farmers and family allowances. It also does not include the monies the Commonwealth also provides direct to local government.
Little wonder then that Prime Minster John Howard on one of his recent visits to Tasmania highlighted this very fact in radio interviews. Howard seemed in no mood to be lectured to by our gold-digging Premier. Behind this public money both these politicians are realistic and know that’s what’s at stake.
Tasmania with a population comparable to a number of metropolitan councils in Sydney or Melbourne has well over two-thirds of its ‘public purse’ revenue coming direct from the Commonwealth and a declining proportion of overall State budget derived from State taxes, royalties and revenue streams from State GBEs. Most Tasmanians would be ignorant (and perhaps also uninterested) of how the State budget is financed and then allocated across State government departments and public service authorities.
In recent years the Tasmanian Government has cried poor and played hard to get on issues like the public hospital system, rabbit eradication on Macquarie Island or the deterioration in Tasmania’s built heritage and yet throws State money at Elwick racecourse redevelopment and sponsorship of the Hawthorn AFL club.
There should be little surprise about the recent $45 million injection of Commonwealth funding for the Mersey hospital in a marginal Liberal held electorate. The reality is the golddiggers in the State politics & the bureaucracy are desperate to receive such top ups, as long as they don’t come with too many strings attached! If short-falls in the Consolidated Revenue allocation can be made up by Commonwealth spending is always good news. Mind you you’ll find that such short term Commonwealth allocations to support public service salaries in State Agencies are mainly directed to operational staff who then go onto short-term contracts. As the State Consolidated Revenue budget shrinks so do the number of truly State-funded permanent positions. In addition you’ll find those permanent positions are now more likely to be in senior management and SES positions. Little wonder operational public servants feel insecure about their positions; if they’re on soft money and short-term contracts they remain desperate, compliant and self-censored.
And when big private companies begin doing deals with this State government, ordinary Tasmanians are left to wonder. A politicised public service is generally very reluctant to tell its employer the things it knows that employer doesn’t want to hear. The higher echelons of the PS are secure, relaxed & comfortable and don’t rock the political boat. The lower grades of staff are simply too insecure and desperately maintaining their jobs to tell it how it is. And their gatekeeper managers ensure they never do!
Little wonder Tasmania is the way it is.
