Tasmania’s peak business body has backed the state government’s public sector savings program as Labor calls for forced redundancies to be ruled out.
The Tasmanian Chamber of Commerce and Industry (TCCI) says the government should continue implementing budget repair measures announced in the May state budget.
TCCI Acting CEO Colleen Reardon said Treasurer Eric Abetz and Premier Jeremy Rockliff should be commended for progressing the measures.
“Treasurer Eric Abetz and Premier Jeremy Rockliff are to be commended for progressing the implementation of vital budget repair measures announced in the May 2026 State Budget,” Reardon said.
“We said at the time of the budget that the hard part would be actually implementing the savings measures identified and we are very encouraged to see the government moving ahead with the announced reduction in the number of state servants.”
The comments follow proposed restructures at the Department of Premier and Cabinet and Building Tasmania expected to affect about 150 public servants.
The largest estimated reduction is 51 positions across Building Tasmania’s remaining functions, while economic development roles could be reduced by 36 positions.
Creative industries, sport and events face an estimated 24 cuts, including seven positions at the Tasmanian Museum and Art Gallery.
Shared services between the agencies are expected to lose 29 positions.
Labor MP Ella Haddad says Treasurer Eric Abetz should rule out forced redundancies, claiming workers have been left uncertain about their future.
“What we found yesterday is that there are still more questions than answers,” Haddad said.
“There are now more people worried about whether they’re going to get a tap on the shoulder and find out that they’re next.”
Haddad said the potential reductions extended beyond workers taking voluntary redundancies.
“So what was revealed yesterday is that there are even more jobs to be cut now,” she said.
“That’s on top of the voluntary redundancies, on top of cutting the fixed-term contracts, on top of not filling vacant positions.”
“These are more jobs, more Tasmanian workers being sacked by Eric Abetz and Jeremy Rockliff.”
Reardon said it was disappointing to see Labor and unions oppose savings at DPAC and Building Tasmania.
“These positions are hardly front-line nurses and doctors,” she said.
Reardon said whether forced redundancies were needed was a matter for the government as the employer.
“What we’re interested in is the government getting the budget back onto a sustainable footing, as soon as possible,” she said.
Abetz says the government will reduce the state service through voluntary redundancies and natural attrition.
“Nominated roles will be given the option to redeploy within the state service or take a voluntary redundancy,” Abetz said.
He said that over the past decade, the state service has grown at twice the rate of Tasmania’s population.
“It needs to be brought back into line so we can live within our means without raising taxes.”
