Tasmania's business lobby backing Labor's budget savings measures, as Liberals launch state election campaign

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a day ago

Tasmania's peak business body has formally backed Labor's strategy to fix the state's budget, calling it a "courageous" plan just weeks out from a state election.
"For an opposition to put this sort of paper out three weeks before an election is fantastically courageous," Tasmanian Chamber of Commerce and Industry (TCCI) chief executive Michael Bailey said.
"What we're seeing from Dean Winter and Josh Willie is a plan to fix the Tasmanian budget problem that we face ourselves with at the moment."
"It's clear that the government need to react to this, we need to see from the Liberal Party their plan for budget repair."
Tasmanian Labor announced on Saturday its fiscal strategy which the party said would result in $1 billion in savings over the next four years and ensure all new revenue goes towards paying down debt.
It also included selling the state's share in the yet-to-be-built Marinus Link undersea power cable, and taking $100 million of revenue from the Motor Accidents Insurance Board.
Treasury has found the state is headed for $13 billion worth of debt by 2028.
"There are some tough decisions to be made and we understand that in business, we understand we need to be part of the discussion.
"We need to do better, especially in an economy like ours which is so small and so reliant on outside income the more we can really help developers move on their projects the better it'll be for all Tasmanians."
Labor Leader Dean Winter said, if elected, he would establish a budget repair round table made up of business, unions and the community sector.
"We know the size and scale of this problem is massive and it relies on people taking things seriously and accepting there's a problem," Mr Winter said.
Treasurer Guy Barnett has described Labor's budget plan as "one giant con".
"It includes sacking associate secretaries who don't exist, claiming savings from the Southern Outlet that will cease to exist after scrapping the jointly funded project, $171.5 million cuts in capital works, without saying where from, and a 10-point plan that is just a recycling of a number of policies already in existence," Mr Barnett said.
"Now, he's revealed his real plan is to sell government assets, with his reckless plan to give mainlanders control of our vital Marinus power connector."
The TCCI's endorsement of Labor's budget plans came as the Liberal Party officially launched its election campaign.
In a speech to the party faithful in Launceston on Sunday, Liberal Leader Jeremy Rockliff said Tasmania's economy was strong and the state wanted stability.
"We can deliver the services Tasmania needs because we have a strong economy; under a Liberal government our economy has grown 26 per cent over the course of the last ten years," he said.
"We now have an economy that's valued at over $40 billion."
"For our workers we've achieved the highest wage growth in the entire nation … we have a strong plan and it's working."
Mr Rockliff used the campaign launch to make the Liberals' most significant health announcement of the campaign so far — 250 new beds at the Launceston General Hospital (LGH).
He said construction would start on the northern health complex, a seven-storey, 25-bed tower in 2028.
He said the new building would "future-proof" hospital services in Tasmania's north.
"This means more single rooms, along with an expansion of cancer services.
"This will future-proof hospital services in the north and help to attract and retain those valued health professionals."
Labor's Health spokesperson Ella Haddad said the Liberals had promised the project before.
"Jeremy Rockliff's big election announcement is a project the Liberals promised five years and two early elections ago," Ms Haddad said.
"Tasmanians are sick of Liberal promises that never get delivered. It's time for change."
The tower is part of the Liberals' 10-year, $647.5 million redevelopment of the LGH.
Australian Nursing and Midwifery Federation acting Tasmanian branch secretary Phoebe Mansell said more beds were needed now.
"We welcome additional beds, but we've been saying for some time that the access and flow and hospital grid lock problems in the Launceston General Hospital emergency department need addressing … so what happens between now and then," she said.
Australian Medical Association Tasmanian president, Dr Michael Lumsden-Steel, said the project must be fit for purpose and allow for future growth.
"We know the Launceston General Hospital needs significant infrastructure builds … so 250 beds will be critical," he said.
"The key point here is when they go and build this new tower, it must be fit for purpose and it must also allow for projected demand … so we must get this right."
Tasmanians will head to the polls on Saturday July 19.