Tasmania’s economic recovery from COVID-19 must be guided by a strategic approach to diversify the economy and provide security in the supply chain.
Shadow Treasurer David O’Byrne said a ‘project by project’ approach would not deliver a sustainable recovery.
“As a small economy, we are particularly vulnerable to economic shock when one sector experiences a downturn, or a major employer shuts down.
“That’s why a strategic approach is needed, not just to rebuild industries and sectors, but to deliver diversity and sustainable recovery.
“Peter Gutwein is talking about paintbrush ready and screwdriver ready projects. We need to be thinking about cultivating the industries to make the paint and manufacture the screwdrivers. That’s how we will protect industries that rely on imports to run their business.
“Investing in individual projects will no doubt provide a welcome stimulus, but it will be short term – the economic equivalent of a sugar rush. That’s not how to deliver sustainable economic recovery.”
Mr O’Byrne said the response to COVID-19 and the recovery required comes with an enormous price tag, and one the state is not well positioned to fund.
“Make no mistake, we support action the state government has taken, and will take, to protect public health and to rebuild our economy.
“But it can’t be overlooked that the state’s finances were not in good shape going into this crisis.
“It is not just COVID-19 that will put a strain on the public purse; Tasmania was already heading into net debt and budget deficits before the pandemic hit.
“As the government embarks on its plan to deliver economic recovery through infrastructure investment, we call on Peter Gutwein to rule out redundancies in the public sector, and to be open and transparent with the Tasmanian people on any plans for privatisation or new taxes.”
David O’Byrne
Shadow Treasurer
