Tascorp and MAIB have paid over $90 million in special dividends to the Tasmanian government

Two government business enterprises have provided the state government with almost $90 million in special dividends, annual reports reveal.

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TWO government business enterprises have provided the state government with almost $90 million in special dividends, annual reports show.

The Tasmanian Public Finance Corporation (Tascorp) paid $54.7 million in dividends to the state government in 2019-20 including a special dividend of $39.5 million.

The business made a $32.6 million net profit before tax.

MAIB paid $91.9 million in dividends including a $50 million special dividend.

MAIB’s before-tax profit was $9.8 million.

The dividends exceeded the predictions of the 2019-20 state budget, which initially factored in a $9.4 million dividend from Tascorp and a $43.8 million dividend from MAIB.

A forward by Tascorp chair Tony Ferrall and CEO Anton Voss in the government finance arm’s annual report outlined the hit to the state’s finances caused by the COVID-19 pandemic.

“Like all governments, the state’s fiscal position has been materially impacted through a combination of falling revenues and higher expenditure,” the report said.

“The most recent estimate of the state government’s fiscal balance is a deficit of $391 million for 2019-20 and $1491 million in 2020-21.

“General government sector net debt (excluding the impact of lease liabilities) is estimated to reach $1240 million by the end of 2020-21.”

The report said Tascorp’s 2020-21 borrowing program may be as high at $2500 million – the business’s highest ever annual issuance.

In terms of the state’s economy, the report said the impacts of COVID-19 were “very large”, given the state’s high reliance on tourism and exports.

Gross state product (GSP) was predicted decline by around 1.25 per cent in 2019-20, compared with the original budget forecast of positive 2.75 per cent growth.

“This would be the first fall in GSP for Tasmania since 2012-13 and the largest decline in history of the data series,” the report said.

MAIB’s annual report showed investment income and claims costs varied significantly from budget.

Claims expenses were $16.3 million less than expected while investment income was $75.5 million less than expected.

The report said the reduced claims were attributed to significant reductions in traffic volumes during COVID-19 restrictions.

Investment performance was reduced due to the impact of COVID-19 on global markets.