Treasurer Eric Abetz has used his first multi-partisan budget panel to test “various approaches” to budget repair with crossbench MPs.
Only four days into the job, Abetz is hoping to help his minority Liberal government win over crossbench support and keep control of parliament.
The meeting, held while the government remains in caretaker mode, explored potential ways forward and included a Treasury briefing ahead of parliament’s return next week.
“There is a recognition that budget repair needs to be undertaken and then the way forward will need to be undertaken by a collaborative parliament,” Abetz said.
“And so there was agreement that we would meet again after Tuesday and seek the way forward to ensure that we can get the best possible outcome for the people of Tasmania.”
Abetz also noted the budget was among the reasons Labor leader Dean Winter gave in his no-confidence motion that triggered the July state election.
“We will learn from that and seek to do whatever we can to ensure that there’s a better budget outcome,” he said.
With the Liberals holding just 14 of 35 seats, Abetz stressed budget repair would require cooperation across party lines.
The Tasmanian Chamber of Commerce and Industry (TCCI) called the panel a “positive step forward” towards getting the state’s finances under control.
“Everyone in business knows that the key to a successful business is to control your costs and that is what this government has to do,” chair Wayne Davy said.
“Of particular concern is the massive growth in the state’s health budget, where money is being pumped in at an alarming rate with little to no accountability as to how it is spent other than to try and avoid bad headlines for the government of the day.”
“We are also concerned by the state’s annual $400 million unfunded superannuation liability, which we believe needs to be looked at closely as part of budget repair.”
Abetz said a new state budget, similar to the one before the election, will be delivered in November with some input from the panel – assuming the Liberals remain in power.
“There was sufficient goodwill that this can be explored further, once we’re out of caretaker, that we can collaborate and bring to the table the various diverse views … and see where we can work together to achieve beneficial outcomes for Tasmanians,” he said.
