Treasurer Guy Barnett revealed how government will tackle GBE reform process
The Spirits saga prompted a rethink about government business enterprises and was the catalyst for a reform process. Now, the government has revealed how it intends to undertake them.
Tasmania
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How the state government plans to tackle its government business enterprise (GBE) reform process has been outlined.
The state government is reviewing GBEs following the Spirits saga and has even considered merging TasPorts, TT-Line, and TasRail.
The Spirit of Tasmania IV is currently docked in Leith as it cannot provide services between Geelong and Victoria because the necessary infrastructure in Devonport has not been completed yet.
During the debacle, the relationship between TT-Line and TasPorts deteriorated.
Premier Jeremy Rockliff also announced it would look at selling off certain government businesses to reduce debt.
He said Hydro was the only GBE that would not be for sale.
The idea was slammed by economist Saul Eslake, who said on Wednesday that it does not make financial sense.
Mr Eslake said the state budget is in trouble because of reckless government spending and cutting services was also the wrong way to address the state’s budget black hole.
Ironically, Saul Eslake is helping the government with its GBE reform process.
Deputy Premier and Treasurer Guy Barnett said GBEs “should deliver services to Tasmanians at the lowest sustainable cost while also growing our economy and engaging with business and community in a constructive manner.”
“With assistance from Saul Eslake, the Tasmanian government will evaluate the economic impacts and potential merit or otherwise of divestment of government businesses,” Mr Barnett said.
“It will also seek advice on whether a business should be restructured or realigned.”
Mr Barnett said that GBE reform would take a staged approach.
“The first stage will include an initial assessment over the coming weeks to determine if the business should progress to a more thorough analysis.
“The assessment of government businesses will take a ‘Team Tasmania’ approach, to ensure that any divestment or restructure decisions align with the State’s long-term interests, prioritising local businesses, communities, and sustainable growth.
“We have developed a principles-based framework – in consultation with Mr Eslake – that ensures any divestment or restructure benefits Tasmania’s economy, workforce, and public services which will be refined in coming weeks.”
Economic growth, job creation, community access, public benefit, market fairness, and fiscal responsibility have been cited as criteria against which the GBEs will be assessed.
“Government will continue to engage with government businesses and the Industry Reference Group regarding this work,” Mr Barnett said.
The Treasurer also said he would provide regular updates on the progress of GBE reforms.
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Originally published as Treasurer Guy Barnett revealed how government will tackle GBE reform process
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