Peter Gutwein MP
Shadow Treasurer
Wednesday 3 February, 2010

I am disturbed that Tasmania’s investment slump appears to be worse than expected.

New data from Access Economics released today shows that overall investment in Tasmania has dropped 40% in the 12 months to December 2009, the worst drop in the nation.

Furthermore the amount of construction underway during the last 12 months has dropped a staggering 18% over the 12 months to December 2009 as well.

While some might say this is a result of the global financial crisis, the fact is that we have suffered a much worse collapse in investment than other states.

At the same time, 8,100 jobs have disappeared in Tasmania, investment has collapsed and the Treasurer and Premier are trying to con Tasmanians into thinking that we are somehow in the midst of an economic renaissance.

What is concerning is that the Government themselves have contributed to the fall in investment by pulling $240M this year and another $170M next year out of the States capital expenditure program.  This beggars belief and can only be because the government is unable to manage key projects and cannot get the money, which is sitting there ready to be spent, out the door.

It shows that this Labor Government is all spin and no substance.  The fact is, the Tasmanian economy is in danger of stalling.  Over the past 12 years the Government has put up all sorts of road blocks to economic progress and this is the end result – a collapse in investment.

A Hodgman Government will deliver real change.  As soon as we are elected we will set about removing the road blocks to investment, like Land Tax.  We will help boost exports and we will improve infrastructure in Tasmania that will attract more investment.