Labor’s reckless wage policy would blow Budget by $2.4 billion

Michael Ferguson, Treasurer

Dr Broad is completely in denial after yesterday supporting a position that ties wages outcomes to inflation, but today he won’t face up to the massive wrecking ball this would put through the State Budget.

Labor’s reckless and unsustainable $2.4 billion wages policy would wreck the budget and saddle Tasmanians with a massive level of debt.

Either that, or Labor has a secret plan to massively jack up taxes.

$2.4 billion would equate to more than $4,200 for every man, woman and child in Tasmania.

If Labor thinks that this is prudent financial management, then Dr Broad should explain to Tasmanians how they would pay for it if they were in Government.

Would they raise taxes by increasing land tax, driving up rents and forcing the sale of the family shack?

Would they increase payroll tax, adding to the cost of doing business in Tasmania and threatening employment?

Or would they cut services – Labor has form on this. Under the last Labor-Green Government they sacked a nurse a day for 9 months, and decimated our Tasmania Police Service.

That’s Labor’s approach to managing the budget.

That’s the record, they’re the facts.

*Amendment (Ms O’Connor)

Mr Speaker I move – That the motion be amended by omitting “treat them with the respect they deserve in wage negotiations” from clause (4) and substitute “pay them wages that, at a minimum, keep up with increases to the cost of living”.

/Public Release. View in full here.