Selasa, 12 Agustus 2014

Dire report into Tasmania*s finances strengthens case for public sector wage freeze: Peter Gutwein (ABC)

Tasmania's Treasurer Peter Gutwein has released a dire report into the state's finances a fortnight out from the state budget.

The Preliminary Outcomes report shows the state finished the financial year with an underlying net deficit of $398.7 million, $44 million worse than earlier forecasts.

Mr Gutwein said it showed a significant deterioration on what was forecast in the original budget for the last financial year.

"The simple fact is in this report that the underlying operating balance is nearly $400 million in deficit," he said.

"There are no positives in this report... none that I can see."

Mr Gutwein said it was proof public sector wages needed to be reined in.

"This makes the case for the wages pause," he said.

"This measure will save around $50 million a year and save more than 500 of the 1,000 job cuts Labor left embedded in their budget."

Mr Gutwein said despite the report, he would not be handing down a "slash and burn" budget at the end of the month.

The State Opposition said the report proves the government can't ignore that there's a problem with revenue coming into the state.

Labor Leader, Bryan Green, said the Treasurer knew the budget was in a difficult situation.

"It was in the mid-year financial report but he chose, I think deliberately, not to understand it," he said.

"Now he's confronted with it, he's trying to blame everyone else."

Mr Gutwein said the problem was created by the previous government.

"[It] shows that under Labor and the Greens, Tasmania's finances continued to worsen right until the end," he said.

The budget will be handed down on August 28.

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