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It
appears certain Tasmania won’t meet its revised
economic growth rate for this financial year.
Failure to meet the 2.75% growth rate would blow the
State Budget for the second time in one year, and
raise the prospects of significant cost-cutting in
key service delivery areas.
ANZ
Chief Economist, Saul Eslake, says in order to
achieve 2.75% growth, Tasmania needs to average
growth in State final demand of 3% in the December,
March and June quarters.
But
the December quarter saw a fall of 0.4%. Alarmingly,
it was the fourth successive quarter of decline, at
the same time that all other States recorded growth.
The
last time Tasmania recorded four successive falls in
state final demand was 1991.
State final demand would need to average about 4.5%
over the next two months just to meet the downgraded
forecast.
Leader of the State Opposition, Will Hodgman, asked
the Premier about the likelihood of this occurring
in State Parliament today, and how the government
was preparing to cut costs if it did not occur.
Mr.
Lennon seemed oblivious to the situation.
“Blaming the Federal government for four successive
quarters of negative state final demand in Tasmania,
when all other states have recorded growth, is an
unacceptable response to serious concerns about the
state of the Budget and the economy generally,” Mr.
Hodgman said.
“He
may well have been distracted from the economy over
the summer, but Mr. Lennon needs to get across this
issue at once, as there will be very serious budget
consequences if Tasmania cannot attain its revised
growth rate for this financial year,” Mr. Hodgman
said.
“Concern over the future of the pulp mill project
also highlights the need for Mr. Lennon to develop
strategies for long term economic growth in
Tasmania.”
Further information:
Georgia Warner 0418 564 073
Ref…economymar1401gw
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