Media Release

Peter Gutwein MP
Shadow Treasurer

Thursday 31st December 2009

Sobering analysis of Tasmania’s economy to finish the year

Respected economist Saul Eslake has delivered a sobering analysis of Tasmania’s economy, and State Labor’s management of it.

As the same time as David Bartlett declares the downturn over and spends $500 million in a desperate attempt to buy his way back into office, Mr Eslake has warned that things are not as rosy as they look.

Writing yesterday, Mr Eslake warned that Tasmania will not rebound out of the current downturn to the same extent as the rest of Australia.

Most concerningly, he said that our close trading relationship with Japan, which is still struggling under the weight of a severe economic downturn, and the strong Australia dollar, could take its toll on Tasmania’s economy.

These figures are mirrored by the Government’s own figures released in the Mid Year Financial Report which show the Tasmanian economy growing at just at .25 percent, compared to a national growth rate of 1.5 percent.

Mr Eslake also again confirmed that the reason that Tasmania weathered the economic crisis relatively well was not due to State Labor’s management; rather it was due to Kevin Rudd’s “cash splash” with disproportionately benefitted Tasmania due to the higher number of people on social security.

Tasmanians were also less affected by the share market crash because less Tasmanians hold shares.

Having more people on social security and less with shares is hardly something to crow about; as is having a economic growth rate which is barely above zero and well below the national forecast.