Prime Minister Scott Morrison, State Treasurer Peter Gutwein headed towards GST face-off

PRIME Minister Scott Morrison has flown into a GST storm, with state Opposition Leader Rebecca White calling the proposed carve up “un-Australian”

Treasurer Peter Gutwein Picture: LUKE BOWDEN

UPDATED: Emily Baker reports,

SCOTT Morrison has assured Tasmanians he does not think our state is a mendicant one.

Mr Morrison said his relationship with the Tasmanian Liberals remained strong, despite state Treasurer Peter Gutwein having been among those state treasurers who this week rejected a federal offer for a new GST deal.

Modelling by the states suggests Tasmania could lose up to $248 million should Western Australia experience another mining boom.

But Mr Morrison — who the Mercury revealed last month had referred to Tasmanian Treasurer Peter Gutwein as a “f...ing mendicant” during GST negotiations earlier this year — said Tasmania would receive $112 million over the next decade under the deal.

Both the PM and Gutwein have since denied the outburst occurred.

“The whole package is a better off deal and it’s a glass half-full deal,” Mr Morrison said.

The state and federal opposition yesterday were critical of the proposal, with state Opposition Leader Rebecca White labelling it “un-Australian”.

“I am left in no doubt whatsoever that Scott Morrison is trying to push through a deal that is not in Tasmania’s best interest,” she said.

“It does not provide a guarantee that we will be no worse off and he refuses to provide that guarantee.”

Mr Morrison, who yesterday referred to Mr Gutwein as “Pete”, will today address the Tasmanian Liberals’ State Council and plans to commend the Hodgman Government on the “Tassie turnaround”.

He will note interstate migration figures, employment rates, retail growth and the building and construction boom as evidence of the state Liberals’ strength.

Mr Morrison will address the Liberals at Bellerive Oval this morning.

EARLIER: PRIME Minister Scott Morrison flies into Tasmania on Friday and into a storm over the state’s rightful share of the GST.

Mr Morrison will visit the West Coast in the morning before heading to Hobart for the Liberal Party’s State Council.

It will bring him face-to-face with Peter Gutwein, one of the treasurers who has revolted over a GST plan designed to appease Western Australia, which could leave other states losing up to $14.7 billion in revenue.

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Mr Gutwein has repeatedly insisted Tasmania would be no worse off but the Federal Government won’t guarantee that, and is pushing ahead with changes to the GST formula despite objections from most states.

“We will continue to put our position to the Federal Government,” he told ABC Radio.

“The states and territories have worked together to come up with a range of different possible and plausible scenarios and a result of those, while the Commonwealth’s model indicates we’d be $112 million better off, we’d like a no-worse-off guarantee. I urged the federal treasurer yesterday to reconsider his position.”

Mr Gutwein said he was hoping the state’s senators would be able to amend any government legislation so it would include such a guarantee.

Prime Minister Scott Morrison will face a storm over the GST when he flies in for the Liberal Party’s State Council. Picture: AAP

Opposition Treasury spokesman Scott Bacon said Tasmania was on track to be dudded.

“We’ve had Peter Gutwein saying for three months now that this is a good deal for Tasmania and then we’d be $112 million dollars better off — he has refused to release any modelling to back up those claims,” he said.

“Now it appears that the Treasurer doesn’t think this is such a good deal for Tasmania and that there are no guarantees it will we will be better off in the long run.”

The state’s federal Labor MPs issued a statement urging their Liberal counterparts to fight for the state’s bottom line.

“Every Liberal senator in our state must finally break their silence and reveal whether they are on the side of Tasmanians or on the side of Scott Morrison, who has characterised us as ‘beggars’.

“If they are on the side of Tasmanians they would ensure any GST deal includes protections for our state.

“Modelling has revealed Tasmania could lose up to $248 million without a ‘no worse off’ guarantee.”

Liberal Senators Eric Abetz, David Bushby, Richard Colbeck and Jonathon Duniam said they would seek a briefing from Mr Gutwein.

“We will work constructively with the Tasmanian Government to ensure we get the best deal possible for Tasmania with regard to the future of the GST carve-up,” they said in a statement. “The Tasmanian Liberal Senate Team remain committed to ensuring that Tasmania will be no worse off as a result of any revision to the GST distribution model.”