• Cuts to Tasmania’s GST revenue looming larger by the day
• Clear Gutwein has no communication or sway with federal colleagues
• Carve up the biggest risk to Gutwein’s house of cards budget
Tasmanian Treasurer Peter Gutwein is clearly being kept in the dark about Canberra’s growing threat to the state’s share of GST revenue.
Labor Leader Rebecca White said Treasurer Gutwein was unaware of veiled threats made today by his federal counterpart as the Turnbull Government prepared to release its response to the Productivity Commission’s review into the GST carve up this week.
Federal Treasurer Scott Morrison today said the Commission has identified “a real problem” and would not confirm whether it would be no-losers response – which means Tasmanian revenue is almost certain to be slashed in favour of Western Australia.
“Treasurer Gutwein doesn’t have his finger on the pulse and was unaware of these developments when he was before Estimates today,” Ms White said.
“That’s a demonstration of his lack of a relationship, let alone an effective negotiating position, with his mates in Canberra.
“The fact is Mr Gutwein has been prepared to take the Prime Minister at his word on GST when Malcolm Turnbull is being deliberately sneaky.
“Mr Gutwein says he is happy with a verbal assurance he received from Mr Morrison over the phone but in Estimates today could not say what the dollar and cents amount was that he claims has been guaranteed.
“According to economist Saul Eslake Tasmania stands to lose $367 million in one year alone by 2021 and the Hodgman Liberal Government has done nothing to prevent that from happening.
“That kind of cut would cripple Tasmania’s public services.
“Reduction in GST is the biggest threat to Tasmania in Treasurer Gutwein’s house of cards budget – a fact that he knows but refuses to acknowledge just as he refuses to put up even an adequate fight on behalf of Tasmanians.”
Rebecca White MP Labor Leader
