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From the Minister's Desk
A Strong Tasmania: Budget 2010-11 PDF Print E-mail

The 2010-11 Budget was delivered on 17 June 2010 and focuses on maintaining Tasmania's record of strong financial management.

The budget delivers a return to an operating surplus of $31.9 million by 2012-13. At that time, Tasmania will be the only jurisdiction in Australia with an operating surplus and no net government debt.

This places Tasmania in the enviable position of having one of the strongest balance sheets in Australia. This is also reflected in Tasmania's Aaa credit rating from Moody's Investor Service, which is better than or equal to any Australian State.

Tasmania fared better than expected during the global recession. Tasmania's 2009-10 operating budget outcome is expected to be $141 million better than originally expected, with a $23.9 million surplus.

Tasmania is returning to pre-global recession levels of economic activity. State Final Demand data from March 2010 shows that Tasmania has now reached a new record level of $6.2 billion in trend terms.

In the 2010-11 Budget, the Government continues its record of delivering on election commitments. A full three quarters of Labor's election commitments are delivered as proposed. All of the remaining commitments are being progressed in this budget and will be implemented during this four year term.

 For a comprehensive budget analysis, go to the State Budget Website.

 
3,100 More Jobs in Tasmania in 2010 PDF Print E-mail
 

Tasmania’s strong jobs growth is continuing.

The Treasurer, Michael Aird, said he was encouraged by the latest ABS labour force data released today showing an additional 500 Tasmanians were employed in May.
“There have now been 3,100 new jobs created in Tasmania in the first five months of 2010,” Mr Aird said.
“These figures highlight the ongoing recovery in the Tasmanian economy.”
Mr Aird said that the unemployment rate was steady at 6.0 per cent in trend terms, which was largely because of an increase of 0.2 per cent in the participation rate.
“Having both employment numbers and the participation rate increase during May is a good sign for the Tasmanian economy.
“In fact, Tasmania’s participation rate has improved by 1.3 percentage points since October 2009, showing Tasmanians’ renewed confidence in their ability to find employment,” he said.
However, Mr Aird said that despite the positive employment indicators, the Tasmanian economy continued to face challenges.
“The recent shut-down of major business operations in the manufacturing and forestry industries and subsequent job losses show that we must continue to be vigilant and work hard to ensure growth in the Tasmanian economy.
“We need to work to provide the stability and certainty that business needs to invest in Tasmania and drive our economy forward.
“Working to provide business with the confidence it needs to invest in Tasmania will be a key priority of mine, and of this Government over the coming months.”
 
Tasmania’s continuing steady recovery PDF Print E-mail
 

The latest Australian National Accounts data released today is further evidence of the ongoing, steady recovery being experienced in the Tasmanian economy, the Treasurer, Michael Aird says.

“The ABS figures show a healthy 2.0 per cent increase in State Final Demand over the past year in trend terms,” Mr Aird said.
“Tasmanian State Final Demand is now at a record high, $6.22 billion in trend terms, eclipsing levels experienced before the global recession.
“In recent times we have seen figures showing Tasmania has the highest level of jobs growth in the nation, strong retail trade and construction figures, as well as the release of optimistic business surveys.
“While this data shows a healthy improvement in State Final Demand, it does highlight the contraction in the private investment component of the data.
“The 13.3 per cent decrease in private investment since March 2009 is an area we will be looking to see improvement in over the coming months.
“However, this data is countered by a 12.3 per cent increase in government expenditure, which has been important for the Tasmania’s ongoing economic recovery.
“I am confident that improving business confidence cited in recent TCCI and MyState surveys are a sign that private investment will improve in the future.
“The Tasmanian economy, like the rest of Australia and much of the world, is in recovery mode.”
 
Access Economics Business Outlook PDF Print E-mail
The Treasurer, Michael Aird, said today the Access Economics Business Outlook showed that Tasmania is in a period of continued, steady recovery from the global recession.
“The Access Economics Business Outlook is positive about Tasmania’s future,” Mr Aird said.
“The Business Outlook shows that consumer confidence is rising, the outlook for employment is positive, population growth solid and building and construction activity remains strong.
“Access Economics singles out Tasmania’s tourism sector as a real strength of Tasmania’s economy, particularly given the obvious challenges faced by the sector through the high Australian dollar and poor international economic conditions.”
Mr Aird said that the Tasmanian Chamber of Commerce and Industry’s survey of Business Expectations had last week showed that business confidence was rising.
He said that despite the positive indicators, the Tasmanian economy continued to face challenges.
“The recent shut-down of major business operations in the manufacturing and forestry industries and subsequent job losses show that we must continue to be vigilant and work hard to ensure growth in the Tasmanian economy,” Mr Aird said.
“We need to work to provide the stability and certainty that business needs to invest in Tasmania and drive our economy forward.”
 
Major Changes To Water And Sewerage Billing PDF Print E-mail
The Premier has announced a seven-point action plan for water and sewerage billing in recognition of the widespread community upset over the new system.
 
“Today, I announce a package of changes to water and sewerage billing that will put $8.9 million back into the pockets of Tasmanians this year,” Mr Bartlett said.
 
“We will halve the increases of water and sewerage bills to Tasmanians.
 
“This is not an election promise – these changes will start right now.”
 
The action plan will see:
 
·        Water and sewerage bills capped at five per cent this financial year – down from 10 per cent - and for the next two years until an independent review in 2012-13;
 
·        Households and businesses that have already paid this year’s bill and who have been charged an increase in excess of five per cent over last year will receive a rebate for the difference;
 
·        The Government will work with the regional water and sewerage bodies to ensure Tasmanians have until June 30 to pay this year’s water and sewerage bills;
 
·        A plan for the statewide roll-out of water meters by 2012-13, seeing people charged for the water they actually use and allowing households to control the size of their bills;
 
·        Water and sewerage concessions will be permanently indexed to future price rises, meaning the support available to the most vulnerable Tasmanians will not be eroded over time;
 
·        Housing Tasmania tenants will be exempt from paying water and sewerage bills; and
 
·        Private tenants will not receive water and sewerage bills until the introduction of water meters in 2012-13. This extends the Government’s previous commitment by two years. Up until 2012-13, landlords will continue to receive the entire bill. Once meters are introduced, landlords will attract the fixed costs and tenants will only pay for the water they use.
 
Mr Bartlett said he heard the message loud and clear right across Tasmania that people were upset by the new water and sewerage billing arrangements.
 
“I understand why people are angry – and I accept that,” he said.
 
The Premier said the action plan recognised the widespread concerns about the impact of the bills on top of other cost of living increases and provided a way forward for the Tasmanian community.
 
He said that capping water and sewerage bills and extending rebates to those who had already paid too much would put $8.9 million back into the pockets of Tasmanians this financial year.
 
“I want to make it absolutely clear that these water and sewerage reforms are critical to our public health, our environment and to building a strong economy into the future,” Mr Bartlett said.
 
“We cannot go on with 23 towns on permanent boil water alerts and a situation where we saw almost 100 raw sewerage spills reported in Tasmania in July and August this year alone.
 
“This is a case of sharing the benefits of a strong economy that all Tasmanians have helped build and of relieving some of the cost-of-living pressures many Tasmanian households are feeling.”
 
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