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Tasmania recorded the strongest state final demand growth in the nation in the June quarter, but the lift was driven by the delivery of the new Spirit vessel according to TCCI analysis of yesterday’s State Final Demand figures from the ABS.
“The Spirits kept the economy afloat in the June quarter, and the priority now should be unlocking private investment so growth is broadly based and sustainable,” TCCI CEO, Michael Bailey, said.
“This is absolutely not the time for Governments to be contemplating increases in charges, taxes or levies either.”
State final demand rose 4.7 percent in the June quarter. Public investment rose 63.5 percent in the quarter as TT-Line took ownership of Spirit V, with Spirit IV recognised in the September 2024 quarter. Private investment rose 2.0 percent in the quarter but fell 3.0 percent through the year, and household consumption was flat.
“By our estimates, if you take out the impact of the Spirit V boost, quarterly growth would have been closer to 0.5 percent rather than 4.7 percent.
“The Spirits have given Tasmania a lift at the right time. Now we need to make it easier for business to invest, hire and expand. The answer is to manage the Government’s infrastructure investment pipeline so it does not crowd out private projects.
“We need faster planning approvals, timely grid connections, clear timeframes for enabling infrastructure and procurement that keeps local firms in the game. Skills, housing for workers and practical migration settings matter too. These are the levers that lower risk and bring private capital forward. Equally, government should rule out new or higher imposts on employers while conditions remain fragile.”
“Recent decisions, such as the Robbins Island wind farm and Marinus Link, will support the state over the long term. They will help anchor new generation, improve transmission and open export opportunities. But we cannot take our eyes off the settings that determine whether private proponents press go in the next 12 to 24 months.
“TCCI will continue to work with the Government and Parliament to ensure public investment complements and catalyses private sector growth. Our message is simple. Keep the economy afloat today and build the conditions that let private investment power tomorrow.”
“The Spirits kept the economy afloat in the June quarter, and the priority now should be unlocking private investment so growth is broadly based and sustainable,” TCCI CEO, Michael Bailey, said.
“This is absolutely not the time for Governments to be contemplating increases in charges, taxes or levies either.”
State final demand rose 4.7 percent in the June quarter. Public investment rose 63.5 percent in the quarter as TT-Line took ownership of Spirit V, with Spirit IV recognised in the September 2024 quarter. Private investment rose 2.0 percent in the quarter but fell 3.0 percent through the year, and household consumption was flat.
“By our estimates, if you take out the impact of the Spirit V boost, quarterly growth would have been closer to 0.5 percent rather than 4.7 percent.
“The Spirits have given Tasmania a lift at the right time. Now we need to make it easier for business to invest, hire and expand. The answer is to manage the Government’s infrastructure investment pipeline so it does not crowd out private projects.
“We need faster planning approvals, timely grid connections, clear timeframes for enabling infrastructure and procurement that keeps local firms in the game. Skills, housing for workers and practical migration settings matter too. These are the levers that lower risk and bring private capital forward. Equally, government should rule out new or higher imposts on employers while conditions remain fragile.”
“Recent decisions, such as the Robbins Island wind farm and Marinus Link, will support the state over the long term. They will help anchor new generation, improve transmission and open export opportunities. But we cannot take our eyes off the settings that determine whether private proponents press go in the next 12 to 24 months.
“TCCI will continue to work with the Government and Parliament to ensure public investment complements and catalyses private sector growth. Our message is simple. Keep the economy afloat today and build the conditions that let private investment power tomorrow.”