Ms BURNET (Clark) – Honourable Speaker, I thank Labor for drawing our attention to this important matter. The government appears to have little interest in managing the purse strings of the state properly.
Economic analysis after economic analysis – and there were more added to my list, which is really quite a short list considering how many analyses are just not even considered. They raise concerns about the state’s deficit in forward Estimates rising to an estimated almost $10 billion by 2027‑28, and with current financial deficit rising to $1.3 billion, according to the government’s own estimates.
Saul Eslake, whose independent review of state finances in August was part of the JLN deal, was summarily dismissed. Graeme Wells’ and John Lawrence’s reports were summarily dismissed. Health economics analyst Martyn Goddard, who points to the abject failure to address health shortfalls and not show restraint, was summarily dismissed. Most recently, the release on 1 January of the Gruen report on the cost-benefit analysis of the Macquarie Point Stadium stated that, in spite of what the Premier is saying, the stadium will be likely to cost $1.2 billion. This was also summarily dismissed. Breathtaking, I would say.
I quote from the Gruen report:
Tasmania is a proud state that for too long has given far more to the AFL than it has received. Tasmania deserves an AFL team and must have it at the right cost, but not at any cost. Tasmania is not a wealthy state and it must meet substantial social and economic challenges. The central conclusion of this review is that the projected costs associated with the stadium at the Macquarie Point multiple-purpose precinct have been significantly understated. At the same time, the benefits have been overstated.
This is classic mismanagement.
Accordingly, the projected benefit-cost ratio has been significantly overstated. I find that the costs of the stadium development can reasonably be estimated to exceed $1 billion, with a benefit-cost ratio of 44 cents in every dollar invested by Tasmania.
I might point out the blind spot Labor has with this major project and the negative financial implications for this state.
We also have the issue of the Spirits and managing costs of the delayed Devonport Berth 3 infrastructure, of berthing cost blowouts in Scotland, the impacts this has on the tourism sector, especially of the north-west and the Premier’s seat of Braddon.
It is at the expense of keeping people healthy, putting roofs over Tasmanians’ heads, educating our children, addressing cost of living, undertaking strategic planning. We see this government inertia. Moreover, this government wants to reduce spending on the public sector with efficiency dividends that do not make sense at all. Reducing essential services is this next folly announced this week.
In personal communications with Graeme Wells last year, I quote:
As Saul Eslake recommends, there should be more careful prioritisation of infrastructure projects, and specifically on the Macquarie Point Stadium, why has Treasury not played a more prominent role in project evaluation? They were not initially consulted on the stadium and they offered different opinions as to what the TPC guidelines for the stadium should be.
We see ineptitude from this government in financial management. We see them not taking advice, not even taking advice from their own Treasury nor from leading economists. This is a sure sign of arrogance. This is reckless fiscal management, made worse because of efficiency dividends and likely job cuts at a time that Tasmanians require strong public services. Finally, we should not be saddling intergenerational debt because of poor economic management by the Rockliff government. That is the shame.
