Media Release

Peter Gutwein MP
Shadow Treasurer

Sunday 6th December 2009

Desperate, irresponsible Labor spending more than $1 million a day to cling to power

The desperate and irresponsible Labor Government has already made new spending promises of around $160 million since the 2009-10 budget was handed down.

It has been 159 days since the 2009-10 financial year began, which means that on average Labor has been committing new taxpayer funding at a rate of more than $1 million per day for every day of the financial year so far.

The massive spend up comes during a time when the economy is still coming to terms with the global financial crisis and follows on from a $339 million blow out in expenses last financial year.

This five month spending spree is unprecedented and makes a mockery of any claim Labor may have to being financially responsible.

The simple fact is Labor is pouring money out of the Treasury in a desperate bid to regain power by buying back the favour of the electorate.

Much of this money is shamelessly aimed at fixing problems that were created by this hopeless Government in the first place.

The water and sewerage debacle, the Australian Technical College fiasco and the collapse of rail services are key examples of where this Government has either made disastrous mistakes, or simply failed to understand the community’s needs.

We accept that these problems must be addressed. However, as this funding was not included in the budget the Government now needs to explain how they will pay for the promises they have made to fix up their mistakes.

The full list of extra spending by the Labor Government is as follows:

In contrast, the Tasmanian Liberals have been fiscally responsible. Our alternative budget commitments announced in June included:

Tourism marketing, land tax relief, export assistance, planning for the Midland highway, free school bus transport, pathway planners, assistance for the disabled, an anti corruption and ethics commission and a review of Government businesses.

All of these initiatives were funded in our alternative budget from savings initiatives and from achieving better returns from government businesses.

Since then, we have committed an extra $30 million for initiatives that include building a new primary school for Port Sorell, investing in the Mersey Hospital, providing assistance to business to invest in renewable energy , cutting waiting lists for elective surgery, an independent body to oversee Tasmania’s infrastructure needs and tackling road safety and driver education.

Our total commitments since the budget are responsible and are only 19% of Labor’s spending.

Unlike Labor, we won’t try and buy our way into power, but will spend prudently and wisely where required.

The Treasurer must now release the Mid Year Financial Report so that all Tasmanians can see the effect that this spending spree is having on Tasmania’s finances.