Tasmanian state budget takes big hit as Gutwein rules out giving a bigger PS payrise

State revenue will take a huge hit, ruling out any possibility of a bigger public servant payrise, Treasurer Peter Gutwein says.

STATE revenue will be more than half a billion dollars less than originally forecast over the next four years, Treasurer Peter Gutwein said today.

In state parliament this morning, Mr Gutwein revealed that the combination of a downturn in GST receipts and lower than expected stamp duty income would leave the budget considerably worse off.

As a result, the government could definitely not afford to increase its pay offer for public servants, he said.

“Confirmation that Tasmania’s revenue will decline by around $560 million due to GST receipts reducing by around $280 million as a result of a lower than expected national GST pool and stamp duty receipts likewise reducing by $280 million over the forward estimates is a challenge to our budget that will require us to continue our financial discipline and maintain a sustainable wages policy,” Mr Gutwein said,

Treasurer Peter Gutwein explains the budget blow in State Parliament today. Picture: DAVID KILLICK

“Now is not the time for a lapse in fiscal discipline, and the Liberal Government will continue to manage the state’s finances responsibly and sensibly, while continuing to invest in infrastructure and the provision of essential services.

“In contrast, Labor wants to add $280 million to our wages bill through an unaffordable and unsustainable 3 per cent public sector wages policy.

“The Government remains of the belief that our hard working public servants deserve a pay rise but it must be fair and affordable — and that’s exactly what the offer on the table of 7 per cent over three years delivers.”

Labor leader Rebecca White accused the government of squandering the benefits of the so-called “golden age” which Tasmania was supposedly enjoying.

She warned the state was heading for a horror budget.

“In parliament today, the Treasurer repeatedly talked about “cutting our cloth to suit our circumstances” which can only mean cuts to jobs and services,” Ms White said.

“Tasmanians would be shocked and appalled to learn the Government has squandered the good times and is still failing to invest in essential services and infrastructure.”