Infrastructure isn’t just concrete, bricks and mortar. It’s about providing the services communities need to flourish.
Tasmanians are experiencing the Liberal’s poor infrastructure planning everyday. Sub-standard health and school facilities, traffic congestion, and thousands without safe and secure housing is not good for individuals nor for the state.
In perhaps the worst infrastructure bungle in our state’s history, Minister Ferguson has overseen huge delays and cost blowouts on the Spirit of Tasmania ferries and Devonport wharf. The new Spirit vessels, will cost taxpayers millions more than budgeted.
As a result, Minister Ferguson has resigned from his infrastructure portfolio – but he’s still in charge of the State Budget. All the evidence shows it’s set to be a shocker.
Eminent Australian economist Saul Eslake’s analysis of the state’s financial status is a devastating read. He doesn’t pull any punches.
“Tasmania’s financial position will become worse than that of any other state or territory (including Victoria and the Northern Territory) over the next three years,” he wrote.
If things go on as they have been, the budget will be in deficit to the tune of almost $1.3 billion a year. That will amount to $12.7 billion over the next decade.
Mr Eslake sheets the blame home to the Rockliff Government’s chaotic, wasteful approach to infrastructure. It’s costing too much, delivering too little and has the wrong priorities.
Leaked health department emails have revealed the long-promised Royal Hobart Hospital upgrades have been dumped, replaced with a dramatically scaled-back alternative. We’ve waited so long to fix the pressure on this hospital, but the Liberals want to build something that doesn’t meet current demand, let alone for the future.
Meanwhile, the Government is pushing ahead with their flawed agenda – building a billion-dollar stadium we don’t need, can’t afford and most Tasmanians don’t want.
It’s not news the Liberals prioritise funding the interests of their corporate mates first over the basic needs of everyday Tasmanians – from property developers and mining companies to the gambling industry and forestry. But the current, distorted infrastructure priorities are misguided and ill-considered.
Saul Eslake’s report shows Tasmania is spending more on infrastructure, relative to the size of our economy, than any other state or territory. He finds no evidence the government is spending our money in a systematic, organised way.
Only rarely, as Mr Eslake finds, is Treasury asked to undertake a cost-benefit analysis of proposed government infrastructure. Whenever they have, the result has been crudely political.
The financial analysis of a Macquarie Point stadium was outsourced to a commercial consultancy firm. They did their best to dress it up, but even their unrealistic assumptions couldn’t make the stadium stack up financially, but especially not as a publicly-funded project.
For every dollar taxpayers put into the stadium, the people of Tasmania would get fifty cents back.
Compare this to the independent financial assessment of much-needed hospital infrastructure. For every dollar into this area, the community would reap more than two dollars of benefits.
If Tasmania can’t afford everything – and we clearly can’t – the Liberals need to reset their priorities, based on the needs of the Tasmanian community. Why do we prioritise a mega-project over local needs, like housing for all, or rebuilding the Glenorchy Pool and sports facilities that keep our community active and healthy?
Why are our public schools and hospitals in dire need of new buildings and facilities, but the government prioritises a stadium over our state’s real needs? Why do we build developments that degrade our environment?
Instead, the Rockliff Government is going hell-for-leather to build a $1 billion Macquarie Point stadium. Nothing about the Liberals’ infrastructure priorities says they are putting Tasmanians first.
It’s time to re-think our focus on big public building spends. The Greens think the interests of Tasmanians and our environment should be at the front of the queue, instead of political and corporate self-interest.
This opinion piece was originally published in the Mercury on 3 August 2024.
