Dean Winter has released a fiscal strategy to address Tasmania’s ‘perilous’ budget position

As Tasmanians prepare to head to the polls, Labor has released a fiscal strategy it says will put the budget back on track. Find out the details >>>>

Labor leader Dean Winter and Labor member for Clark Josh Willie. Labor announcement of a new policy for a Fresh Start for Tasmania. Picture: Nikki Davis-Jones

Labor has released a fiscal strategy to repair the “budget crisis” which includes more than $1bn in savings and measures to reduce debt which it says is forecast to triple to $13bn by 2028.

Labor leader Dean Winter said Treasury had last week “effectively declared Tasmania in a budget crisis” and Tasmania’s finances were on track to become “the worst in the nation”.

“The Liberals literally have a plan at the moment to triple Tasmania’s debt and then start sacking two and a half thousand workers,” he said.

Labor Leader Dean Winter. Picture: Nikki Davis-Jones

“We cannot allow that to happen.

“When the Liberals were elected in 2014 Tasmania had no net debt and after 11 years Tasmania is on track for $13bn of debt.

“Our billion dollars’ worth of saving have been identified carefully and methodically.

“They will create a situation where every year Tasmanians will have to pay $700m just to service the debt.

“That’s more than we pay for all of our emergency departments in our hospitals and our ambulance service combined. It’s extraordinary.”

Mr Winter said Labor would “ensure the culture of accepting budget blowouts is brought to an end.

“Many Tasmanian households are facing unprecedented cost of living pressures, and just like these households are required to do, a Labor government will not spend beyond its means,” he said.

Labor also plans to hold a budget repair roundtable with key stakeholders “to include them in the budget repair process”.

It also plans to establish a debt reduction fund.

Labor says the strategy aims to stabilise net debt, stop budget blowouts, restore budget surpluses and strengthen budget oversight and accountability.

The capital savings within current forward estimates include transferring Tasmania’s share of Marinus Link and equity injection saving nearly $200m and $171m by ensuring capital works are profiled accurately.

Operational savings of $550m over four years include caps on travel budget saving $50m and reducing unbudgeted spending from the treasurer’s reserve.

Labor treasury spokesman Josh Willie said the budget was headed for an “absolute perilous state”.

Josh Willie Labor member for Clark. Picture: Nikki Davis-Jones

“We have a billion dollar savings plan that will take pressure off in the short term,” he said.

“There’s a debt reduction fund where we will put windfall gains into to start to pay down the Liberal legacy debt.”

Mr Willie rejected cuts to the public service.

“These are strategic decisions made without the resources of government and I’m sure there are many more savings to be had,” he said.

“This government has been spending more than it has been earning for many years now and it has put Tasmania in a budget emergency situation.

“This is a billion dollar savings plan that will take pressure off the budget in the short term. This is a serious document for fiscal discipline and fiscal restraint that will put the structure in place to fix the Liberal budget mess.

“This is a government that has pretended that everything’s okay when it’s not.”

Mr Willie said the strategy would be submitted to Treasury and also ruled out seeking a federal financial bail out to ease the state’s financial woes.

“I think if we ended up in a federal bailout situation because of the Liberal government’s mismanagement of our finances, it would be a terrible thing for our state,” he said.

“It would be us as a sub-sovereign state defaulting on our debt liability and it would come with a lot of pain and loss of confidence.”

Treasurer Guy Barnett branded the plan as “one giant con” and said the 10-point plan was “just a recycling of a number of policies already in existence”.

“His plan to ‘maximise government business profits’ means higher charges, including increased car rego and power prices.”

Originally published as Dean Winter has released a fiscal strategy to address Tasmania’s ‘perilous’ budget position