Media Release

Peter Gutwein MP
Shadow Treasurer

Thursday 11th February 2010

Mid-Year Financial Report

Today’s Mid Year Financial Report shows that the Government is living beyond its means and spending far more than it earns.

The fact is that in June last year, the Government prepared a worst-case scenario Budget for 2009-10. However, this Report shows that our budget situation over the forward estimates is even worse than what was predicted.

The reason why it is worse is because the Labor Party is promising massive amounts of money in a desperate bid to cling onto power.

Whist revenues are forecast to increase by almost $690 million to the end of the forward estimates, the Government’s expenses are forecast to increase by $775 million.

Worse than that, this Report doesn’t even include the purchase of the Burnie Hospital, which is expected to be up to $50 million. It doesn’t include the $90 million commitment for roads made by the Premier only last weekend.

What the Government have failed to explain is that when this $140 million is taken into account our deficits will increase and the return to surplus in 2012-13 will not occur. Furthermore, I expect that we will also return to a net debt situation, which is something the Government has continually promised not to do.

I challenge the Premier to reveal what the true state of the budget is once these projects are taken into account and whether the budget will be plunged back into net debt.

True to form, the Premier is all spin and no substance when it comes to finances and if Tasmanians give him another four years in charge, who knows how long it will take to pay off the mounting Labor debts?