The Tasmanian Chamber of Commerce and Industry business survey notes concern about costs

‘If the Reserve Bank coughs, Tasmania catches a cold,’ TCCI CEO Michael Bailey says. Here’s what the TCCI’s latest survey of business expectations found. Spoiler alert: it’s grim.

A general view of the Reserve bank in Sydney. Photo by:NCA Newswire

Tasmania’s business lobby says the state is in for an ongoing economic slow down as businesses are hammered by rising costs.

The Tasmanian Chamber of Commerce and Industry’s latest Tasmanian Survey of Business Expectations shows inflationary pressures, a tight labour market and interest rates were key concerns.

The 2023 Quarter 3 survey showed the cost of doing business was the biggest issue, affecting 67 percent respondents, up from 57 percent last quarter.

Cost of living overtook labour/skills shortages as the second biggest issue affecting business right now with 48 percent, up from 41 percent last quarter.

Labour and skills shortages dropped to 43 percent this quarter, down from 45 percent last quarter.

A general view of the digital boards at the ASX in Sydney. Photo by: NCA Newswire /Gaye Gerard

“Just like every household in Tasmania, businesses are also feeling the pinch of rising costs,” said TCCI CEO Michael Bailey.

“As a result, we are seeing the Tasmanian economy begin to slow down. We expect that to continue until inflation is brought under control, but unfortunately as is often the case, when it comes to interest rates if the Reserve Bank coughs, Tasmania’s economy ends up catching a cold.”

Despite the business community’s mounting worries, Mr Bailey said there was hope on the horizon.

“More than half of all businesses surveyed expect to grow their business over the next six months,” he said.

“We would like to see our political leaders put forward ideas about how to harness this positive outlook and tackle some of the key challenges. Businesses want to see a clear plan for tackling the top five issues: labour/skills shortages, a balanced budget, health, housing, and climate change.”

TCCI CEO Michael Bailey speaks to the media on Parliament Lawns in Hobart on Tuesday, November 7, 2023.

Mr Bailey said an emerging issue was pending Federal Government decisions which could impact mining and salmon farming on the West Coast.

“One way the Tasmanian and Australian Governments could immediately boost business confidence and support economic growth is by working together to protect industries on the West Coast and protecting the thousands of jobs that mining and salmon support,” he said.

Shadow Treasurer Shane Broad said the economic outlook was “dismal”.

“Business confidence is collapsing, unemployment is the highest in the nation and the economy is tanking – going backwards for the last three quarters in a row under (Premier Jeremy) Rockliff,” he said.

Parliamentary Secretary for Small Business and Industry Dean Young said it was encouraging that the majority to businesses surveyed planned to grow.

However he encouraged businesses to take up government support programs if needed.

“As far as small businesses go there’s new business supports, Tasmanian business advisory supports, a new grant for specialist financial advice,” ge said.