TCCI: keep expense growth in check, deliver infrastructure, and restore accountability
The Tasmanian Chamber of Commerce and Industry (TCCI) warned that rapid growth in
costs and slipping infrastructure programs were undermining fiscal sustainability and
confidence.
TCCI said that today’s budget (and State financial outcomes over recent years) showed
revenue growth has been outpaced by expenses, driving significant deficits, higher debt
and sharply rising interest costs.
“Tasmania needs discipline and delivery. Revenue has held up, but expenses have
grown almost twice as fast. That’s why we’ve seen persistent deficits and rapidly rising
debt. We need a credible plan to rein in costs and deliver what’s promised”, said TCCI
CEO Michael Bailey OAM
“Employee expenses are the biggest pressure point. Services matter, but they must be
delivered within the agreed budget. We also need a realistic capital program that
agencies can deliver — not bigger headline numbers that slip quarter after quarter”,
added Mr Bailey.
Key points for business
• Expense control: Set and stick to departmental budgets; publish quarterly
outturns; escalate corrective action early.
• Employee expenses: Ensure wages and FTE decisions fit the fiscal envelope
and are linked to productivity.
• Infrastructure delivery: Focus on deliverability and prioritise the billions of
dollars of private investment waiting for approval.
• Debt and interest: Establish a medium-term debt anchor and guardrail for
interest costs to protect frontline services.
• Growth agenda: No new taxes on productive activity; support business to grow
and prosper.
TCCI said it stands ready to work with the Government, Opposition and crossbench on practical measures that restore confidence, protect essential services and support jobs and investment across Tasmania.
Media Contact:
Michael Bailey OAM – Chief Executive Officer, TCCI
The Tasmanian Chamber of Commerce and Industry (TCCI) warned that rapid growth in
costs and slipping infrastructure programs were undermining fiscal sustainability and
confidence.
TCCI said that today’s budget (and State financial outcomes over recent years) showed
revenue growth has been outpaced by expenses, driving significant deficits, higher debt
and sharply rising interest costs.
“Tasmania needs discipline and delivery. Revenue has held up, but expenses have
grown almost twice as fast. That’s why we’ve seen persistent deficits and rapidly rising
debt. We need a credible plan to rein in costs and deliver what’s promised”, said TCCI
CEO Michael Bailey OAM
“Employee expenses are the biggest pressure point. Services matter, but they must be
delivered within the agreed budget. We also need a realistic capital program that
agencies can deliver — not bigger headline numbers that slip quarter after quarter”,
added Mr Bailey.
Key points for business
• Expense control: Set and stick to departmental budgets; publish quarterly
outturns; escalate corrective action early.
• Employee expenses: Ensure wages and FTE decisions fit the fiscal envelope
and are linked to productivity.
• Infrastructure delivery: Focus on deliverability and prioritise the billions of
dollars of private investment waiting for approval.
• Debt and interest: Establish a medium-term debt anchor and guardrail for
interest costs to protect frontline services.
• Growth agenda: No new taxes on productive activity; support business to grow
and prosper.
TCCI said it stands ready to work with the Government, Opposition and crossbench on practical measures that restore confidence, protect essential services and support jobs and investment across Tasmania.
Media Contact:
Michael Bailey OAM – Chief Executive Officer, TCCI