Tasmania politics: Labor says economy tanking and housing boom over

Tasmania’s economy is slowing and the number of new homes has slumped to the lowest level in a decade, Labor says — but our Premier says we’re actually going “gangbusters”.

THE state’s economy is slowing and the number of new homes being built has slumped to the lowest level in a decade, Labor says.

But Premier Jeremy Rockliff has rejected the claims, saying Tasmania is going “gangbusters”.

Opposition treasury spokesman Shane Broad said the latest state final demand figures from the Australian Bureau of Statistics placed Tasmania at the bottom on the national league table.

“ABS state final demand figures show Tasmania has by far the weakest annual growth in the nation, at 1.1 per cent, one third of the 3.3 per cent national average,” he said.

“After nearly a decade in office, this tired Liberal government has lost its way and dropped the ball on the economy.”

Dr Broad said residential construction was also contracting.

“This flies in the face of the Premier’s claim in his State of the State address that building approvals remain at elevated levels,” he said.

“Dwelling investment in Tasmania is down 11 per cent in the past 12 months.”

Labor party MP Shane Broad speaks to the media on Parliament Lawns in Hobart on Monday, 21 March 2022.

He said the government has been reliant on stamp duty revenue, but the housing boom now appeared to be over.

Mr Rockliff talked up the economic record of the Liberals.

“We have some enormous investments coming along online when it comes to building approvals, when it comes to our housing initiative of some one-and-a-half-billion dollars over the next 10 years in terms of housing (and) affordable housing construction.

“There is a lot happening in Tasmania, we recognise the challenges around what the interest rates perhaps are doing in the economy at this present time.

“But look, still, the Tasmanian economy is still going gangbusters.”

Mr Rockliff has also repeated his defence of MPs Madeleine Ogilvie and Mark Shelton, insisting neither had done anything wrong.

Madeleine Ogilvie MP. Picture: Chris Kidd

Speaker Mark Shelton. Picture: Nikki Davis-Jones

Racing Minister Ms Ogilvie has been accused of misleading parliament over the departure of former TasRacing CEO Paul Eriksson.

Mr Shelton has been accused of having a conflict of interest in securing grant funds for a community hall in his home town.