Proposed sale of GBEs now canned as Premier lashes ‘scare campaign’

The state government has abandoned plans to privatise state-owned assets, blaming a Labor “scare campaign” against the idea. Where the government plans to recoup funds for the state deficit.

Privatisation of GBEs canned by Premier.

The state government has abandoned plans to privatise state-owned assets.

As the minority Liberals reeled from the loss of a no-confidence motion, Premier Jeremy Rockliff on Friday revealed the that all consideration of asset sales was now off the table.

“There will be no privatisation of any government-owned business under our Liberal Government,” he said.

“None.”

In March, the premier flagged the possibility of selling off government-owned businesses as a way of addressing the state’s burgeoning debt levels during his the State of the State address.

Premier Jeremy Rockliff. Question time in the Tasmanian House of Assembly. Picture: Nikki Davis-Jones

Initially Metro, the MAIB and Entura – as well as the Land titles office were flagged for possible sale.

Electricity generator Hydro Tasmania was explicitly ruled out from the beginning.

The government sought advice from eminent economist Saul Eslake and recently announced it had accepted his advice that to rule out selling the Port Arthur Historic Site Management Authority, the Tasmanian Public Finance Corporation; Tasracing, TasRail, the Public Trustee and Entura.

The plan was opposed by Labor and public sector unions.

Mr Rockliff said the government has abandoned the idea altogether.

“There will be no asset sales under the Tasmanian Liberal Government,” he said.

“Well-respected economist Saul Eslake has been undertaking work to identify strategic and reasonable divestment of some government-owned businesses to return to surplus sooner.

“This followed the business community’s call for the Parliament to have a mature, sensible conversation about it.

Hydro Tasmania was one of the GBEs immediately eliminated for sale. Picture: Hydro Tasmania

“It’s clear Mr Winter is incapable of having a mature conversation.

“Labor has forced this early election on the deceitful campaign that our Government intends to divest government-owned businesses – before Mr Eslake’s work is even completed.

“Given this, we are ceasing that process now. It is over.”

Mr Rockliff said the state had enough on its plate without having to deal with a scare campaign against even considering asset sales.

“Tasmanians now know that Labor, and its leadership, cannot be trusted to act in the best interests of Tasmanians,” he said.

TasRail CEO Steven Dietrich at a level crossing in Devonport. Picture: Simon McGuire.

“Mr Winter is so desperate for power, he wanted to run a desperate scare campaign before Mr Eslake’s final report was handed down on 30 June – and he probably still will.

“The government will also be implementing all of Mr Eslake’s recommendations from the independent Review into the State’s Finances, except those that relate to introducing new or increased taxes and reducing infrastructure spending.

“Mr Winter’s reckless week showed he is not ready to govern.”

The Opposition Leader said the change in privatisation policy was hard to believe.

“How pathetic has Jeremy Rockliff become? How could you ever believe him? He was talking up his privatisation plan on Thursday then pretending he didn’t believe in it on Friday,” Mr Winter said.

“This is an act of a desperate man who will do anything to cling to power. Tasmanians will never trust him not to sell our assets.

“This is the same man that said ‘not a red cent more’ over a hundred times.

“He’s broken the budget, he’ll privatise our assets and our Spirits of Tasmania are still on the wrong side of the world. This is yet another example why Tasmania needs change.”