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The Premier, Paul Lennon, is being irresponsible and
putting politics before principle, by ruling out
considering debt as a form of funding for a new
Royal Hobart Hospital.
His refusal to even countenance this form of
financing – while all funding options are supposed
to be on the table – is clearly all about wanting to
grandstand about past State debt, rather than
looking at the best way of funding such an
inter-generational asset.
This was apparent in State Parliament today, when Mr
Lennon was asked about the option of debt-funding.
The State Government is expected to decide soon on
where to build a new hospital, but has delayed
making a decision on how to fund it until next year
at the earliest.
Leader of the State Opposition, Will Hodgman, said
there needed to be rational debate about funding an
infrastructure project of this size, and the base
no-debt politics of the Premier did no one any
favours.
A
major study conducted by Strategic Economics in 2005
into financing Australia’s infrastructure needs,
Financing our Future, found: “all studies…into
funding public infrastructure have indicated that
public debt raising is the most efficient means of
raising funds.”
ANZ Chief Economist, Saul Eslake, Economics
Professor Bruce Felmingham and Labor’s own
“debt-hero”, former Premier, Michael Field, have
also criticised Labor’s ruling out of debt as an
option to fund the hospital.
Mr
Hodgman said Premier Lennon was treating Tasmanians
like fools.
“Tasmanians understand that being debt-free is not
the be all and end all when a major
intergenerational infrastructure project such as
this is on the agenda,” Mr Hodgman said.
Further information: Georgia
Warner 0418 564 073
Ref…
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