Media Release

Peter Gutwein MP
Shadow Treasurer

Wednesday 12th May 2010

Rudd Budget Provides the Worst Possible Outcome for Tasmania

No new infrastructure spending for our roads, ports or our deteriorating rail network in this year's federal budget means that last year's missed opportunity will haunt this State for decades to come.

When the $22 billion infrastructure fund was available last year, Tasmania failed to achieve any major new infrastructure projects meaning that transport efficiencies from network upgrades are now underway in rival states which will hurt or competitiveness for years to come.

Furthermore, it appears that the Government may have adopted a Graeme Sturges mark 2 approach with this budget and not even requested funding for major initiatives such as the Bell Bay port, Launceston's flood levies or our crumbling rail infrastructure even though the Government's own rail company has said it requires a $400 million upgrade.

We also know from the budget papers that the State stands little chance of achieving significant levels of funding from the new $700 million Resource Infrastructure Fund. This Fund will be targetted at resource rich states and we appear to have missed out on any investment at all from the $1 billion Rail Freight Infrastructure Fund as this is to be spent primarily on the Eastern seaboard.

While there will be an increase in GST for Tasmania, this will not be enough to offset the lack of any new infrastructure funds. Nor will it return the budget to surplus earlier than expected as the Government has more than $500 million in election promises to fund over the next four years.

The Labor-Green Government's coming State budget will be the most important budget that has been handed down in decades in this state. With job losses occurring at an alarming rate, forestry contractors in desperate trouble and private capital investment down by 40% in the last 12 months the State Governments response will be critical to ensuring that investment continues and jobs are created.

Unfortunately the failure by The Premier and his Treasurer to convince the Rudd Government to accept that Tasmania is facing serious challenges will cost this state investment and jobs.