Labor leader Dean Winter to introduce laws capping future Tasmanian budget deficits

Opposition leader Dean Winter will use the return of parliament to propose a cap on state budget deficits and force governments into the real-time disclosure of fiscal blowouts.

Tasmanian Labor Leader, Dean Winter. Picture: Linda Higginson

Tasmanian opposition leader, Dean Winter, will use the return of parliament on Tuesday to propose a legislative cap on state budget deficits, and force governments into the real-time disclosure of fiscal blowouts.

In a speech delivered to business leaders in Hobart on Monday night ahead of Treasurer Guy Barnett’s first budget on Thursday, Mr Winter said Labor’s “fiscal deficit Bill” would require any budget with a cash deficit exceeding 10 per cent of revenue to gain the two-thirds support of parliament.

Mr Winter said Tasmanians could not afford to wait until the next election – due in 2028 - for the Liberal government’s “mismanagement” of the state’s finances to be reined in.

“Tomorrow we will be tabling legislation to effectively cap budget deficits,” the Labor leader said at Monday night’s function at Franklin Wharf.

“We will seek to amend the Financial Management Act, and the Constitution Act, to restore sound budget management as a central responsibility of government.

“The Bill will require real-time disclosure of budget blowouts, rather than the current situation where we only find out months later that the government has approved hundreds of millions of dollars of unbudgeted spending.

“But more importantly, the Bill will require a two-thirds majority to pass any budget where the cash deficit exceeds 10 per cent of revenue.

“It does not mean governments can’t run big deficits when they need to–in a pandemic, for example–but extraordinary scrutiny will be applied to extraordinary deficits.

“And in normal times, the practical effect of this will be to force governments to live within their means.”

Labor leader Dean Winter. Picture: Nikki Davis-Jones

Mr Winter told the gathering that fiscal responsibility would be the hallmark of any future Labor government he led, saying his experiences leading Kingborough Council had proven the benefits of controlling costs and managing debt levels.

While a future Winter government would rein in unnecessary spending – and “aggressively grow” the state’s economy – the Labor leader said he did not want to wait another three years before taking action on Tasmania’s finances.

“Responsible with the budget, ambitious for the economy - that will be our mantra,” Mr Winter said.

“What the Liberals are doing — delivering record, billion-dollar deficits — is reckless.

“The longer this goes on, the harder and more painful it will be to turn around.

“I have no intention of leading a government that hamstrings our state’s future because it

won’t take the tough choices required to live within our means.

“Tasmania cannot continue on pretending there’s nothing wrong with this government’s

deficits, which for this year and last have been more than 15 per cent of revenue.

“I want to lead a government that’s responsible with the budget, and aggressive with the

economy.

“Ultimately, we’re all in this together, and I need your help in building a future government that can deliver the change Tasmania needs.”