Media Release

Will Hodgman MP
Leader of the State Opposition
Peter Gutwein MP
Shadow Treasurer

Monday 21st December 2009

Mid Year Report confirms worst fears

Will Hodgman said:

The Preliminary Mid Year Report confirms that this Government has a poor record at managing money.

It confirms that the Premier couldn’t make the savings he promised.

It confirms that expenses are already blowing out this year. At the moment they have blown out by 5%, or $215 million, but there is every chance it will get much worse this year.

Tasmanians are now paying for a Government that is only focused on the next election and not on the long-term interests of Tasmanians and where decisions have become ad hoc and incoherent.

Peter Gutwein said:

The most concerning aspect of the Preliminary Mid Year Report is that the Government is unlikely to meet one of its key fiscal targets relating to keeping the budget in the black.

What this highlights is that this Government is living beyond its means. It is spending more than it is earning and it is acting unsustainably and not with the long term interests of Tasmania in mind.

This Report makes a mockery of the Government’s so called budget management strategies. Instead of saving over $100 million this year, the Government is actually going to overspend by well over $200 million. The budget that the Premier and the Treasurer brought down in June is now effectively dead in the water and with it their credibility as responsible fiscal managers.