Jobs key to the state’s future prosperity, Saul Eslake tells economic forum

THE next state government must find ways of improving Tasmania’s employment issues otherwise we will be condemned to remain the poorest state in the nation, an economic forum has been told.

Tasmanian economist Saul Eslake says the most important element to boosting the state’s long-term economic prospects is to improve the educational participation and attainment of our population. Picture: LUKE BOWDEN

THE next state government must find ways of improving Tasmania’s employment issues or we will be condemned to remain the poorest state in the nation, leading economist Saul Eslake says.

Mr Eslake spoke at the Tasmanian Economic Forum in Hobart on Thursday and said while Tasmania’s economic performance had improved considerably over the past four years, there was much more work to be done.

“Despite this improved economic performance, Tasmania remains the poorest state in the nation by a margin which hasn’t changed much over the past four years and isn’t forecast to change over the next four,” he said.

“The underlying reality is that Tasmania’s economy has to improve significantly to counter the effect of powerful ... demographic forces that have been detracting from the key drivers of per capita economic growth.

“These forces will intensify over the next three decades.”

Mr Eslake said there were a number of ways the next state government could boost the state’s economy.

This included growing labour productivity rates and increasing the proportion of full-time jobs as well as boosting the employment rates of people aged 20-64.

“Unless Tasmania can find ways of [improving in these areas] ... then Tasmanians’ material living standards will continue to decline relative to those of the rest of Australia,” he said.

“The single most important thing that the next Tasmanian government can do to improve long-term economic prospects is to improve the educational participation and attainment of Tasmania’s population. [However], other bold and wideranging, reforms will also be required.”

The Liberals’ economic policy involves extending payroll tax rebates for apprentices and trainees until 2021 to create 3000 jobs as well as $2.5 million towards boosting apprenticeship numbers. There would also be payroll tax cuts for small and medium businesses aimed at creating 650 more jobs. The Liberals would also extend every high school to Year 12 by 2022.

Labor would offer 3000 TasTAFE scholarships at a cost of $3 million and also implement eight industry advisory councils to oversee economic performance.

They would also abolish public school fees and build a new high school in Hobart to cater for growing suburbs in the vicinity.

Also speaking at the forum were Treasurer Peter Gutwein, Shadow Treasurer Scott Bacon, political scientist Professor Richard Eccleston and Tassal chief executive Mark Ryan.