Tasmania’s treasurer has confirmed the state can’t afford union wage demands of 21%, saying the cost would exceed that of the proposed Macquarie Point stadium.
Eric Abetz told parliament on Tuesday that meeting the public sector unions’ full claim would go beyond the entire cost of the stadium project.
“If all the claims were to be accepted, the Tasmanian taxpayer would, over the forward estimates, have to pay more than the total cost of the new stadium,” he said.
The unions are seeking a 21.5% pay rise over three years for the state’s 35,747 public sector workers.
Treasury estimates the claim would add about $1.66 billion to the budget over that period.
The estimated construction cost for the proposed stadium is $1.13 billion.
Abetz accused the unions of negotiating in bad faith by pre-briefing the media and making unrealistic demands.
“It stands to reason, I would have thought, for any Tasmanian taxpayer to say let’s have a negotiation about that what is being asked for is clearly unaffordable,” he said.
“The unions and the government have to come to the negotiating table and continue to undertake the discussions.”
Independent MP David O’Byrne urged the government to work harder to reach an agreement.
“The reality is you cannot afford to not provide an offer that deals with the workload issues and meets the fair conditions and pay our dedicated public sector workers deserve,” he said.
“I appreciate that given the state of the budget you cannot write a blank check, however you will need to deal with the real and pressing concerns raised through these negotiations.”
The public sector wage bill makes up roughly $4 billion a year, almost half of the state’s $10 billion budget.
Government spending has increased by $2.1 billion over the last four budgets, while revenue growth has slowed and state debt continues to climb.
Abetz said negotiations would continue despite the stalemate.
“Our task as a government is to get that balance right,” he said.
