Tasmanian Opposition Party Outline Their Budget

A LIBERAL government would create a Department of State Growth, cut 650 public sector jobs and make more money available for more elective surgery and tourism marketing, Opposition leader Will Hodgman vowed today.

Delivering his budget-in-reply in State Parliament, Mr Hodgman said his party would cut nearly $500 million in waste and non-essential spending and boost growth by amalgamating the Department of Infrastructure, Energy and Resources and the Department of Economic Development.

He also announced plans for a super bureaucrat, to be known as the Co-ordinator General, to aggressively chase investment and jobs growth in the state.

The Liberals would axe the Tasmania Together process, the State Service Commission, the state's Climate Council, the Social Inclusion Unit, the Enterprise Development initiative and cut funding to the Ten Days on the Island arts festival.

They would also slash spending on senior public servants, consultants, ministerial cars and government boards and committees, Mr Hodgman said.

Unveiling what he described as his "Road map to Recovery and Growth", Mr Hodgman said the priorities of a Liberal government would be basic services, cutting waste, building essential infrastructure and boosting economic growth.

If elected, the Liberals would abolish the government's motor vehicle registration increases, restore TAFE and extend high schools to Year 12, Mr Hodgman said.

First home builders would benefit from a $7000 grant and home duty concessions to boost the construction industry and hand back the proceeds of the carbon tax.

Fines would go up 10 per cent and criminals would have to pay an increased levy upon conviction.

Liberal Treasury spokesman Peter Gutwein projected a deficit of $268 million in the 2012-13 financial year, returning to surplus in 2014-15.

He said that even under the Liberal's plan, the state would slide into net debt, although it would not be as deep as under the Labor-Green Government.

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No Cash Boost Ailing For Tasmanian Health System

1. 

Australian Nursing Federation (Photo credit: Wikipedia)Hopes for a major injection of funds into Tasmania's ailing health system have not been forthcoming, with Federal Treasurer Wayne Swan delivering only a modest boost mirroring the rest of the country.


Health professionals have been calling for a federal takeover of the state's health system or an immediate injection of funds to counter the effects of sweeping State Government budget cuts to the health system.


However, last night's Federal Budget offered no extra favours for Tasmania.


The state will get a 6.7 per cent boost in the next 12 months compared with a national average increase of about 6.4 per cent.


Mr Swan has increased the state's health funding by $18.8 million from $279.6 million for the 2011-12 financial year to $298.4 million for the 2012-13 financial year.


Redevelopment funds for the Royal Hobart Hospital remain in the Budget.

However, no further major health infrastructure projects were announced for Tasmania last night.


Australian Nursing Federation branch secretary Neroli Ellis said the limited federal boost in funding placed further pressure on the State Government when it delivers its Budget on May 17.


"We have around a 5 per cent decrease in State Budget," Ms Ellis said.


"So it [the Federal Budget] is not keeping up with demand."


Ms Ellis said the next "State Budget is crucial now".


"We will be hoping the State Government will address the immediate short-term concerns we have been discussing in the past few months," she said.


Australian Medical Association state president John Davis said health had been generally sheltered from budget cuts however more funds were needed for Tasmania.

Dr Davis and Ms Ellis both welcomed additional national funding which would flow to Tasmanians in the areas of aged care, bowel cancer screening, dental services and electronic health initiatives.


One new initiative, to be rolled out across Australia, will be funding to help patients aged 15 to 24 with emerging psychotic disorders.


During the next financial year $3.5 million will be provided to Tasmania to help establish centres that will provide services to help these patients.


Health Minister Tanya Plibersek said there would be funding to increase the numbers of doctors, nurses and health professionals in Ulverstone on the North-West Coast but did not reveal any further detail.


Australian families will benefit from a $233.7 million investment to continue the rollout of the national, secure eHealth system which will deliver safer and better health services.


Dr Davis welcomed the eHealth funding but said the Budget revealed there would be some costs placed on doctors to use the eHealth infrastructure.


Areas of savings in the Budget include Medicare rebates for cosmetic surgery and private health insurance rebates for some natural therapies.


One of the biggest areas to be hit is Medicare rebates for cosmetic surgery, which have been capped.


The Government will save $96.5 million over four years by capping a range of procedures covered by the extended Medicare safety net.


Under the safety net, the Commonwealth pays 80 per cent of out-of-pocket costs for procedures once a yearly threshold of $1160 has been reached.


Ms Plibersek says some items are being capped "to discourage excessive fees and to prevent people from misusing Medicare to pay for cosmetic surgery".


Items on the hit list include vulvoplasty or labioplasty, minor plastic surgery, varicose vein procedures, reversal of male sterilisation, eye injections, nipple reconstruction and nose work.


At the same time the private health insurance rebate will no longer be paid for natural therapies unless the chief medical officer decides they are "clinically effective".



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Call To Double First Home Owners Grants

Flag of Tasmania (Photo credit: Wikipedia)

TASMANIA'S first home owner grant should be doubled to $14,000 to boost the state's sluggish economy, real-estate advocates say.

Real Estate Institute of Tasmania president Adrian Kelly says upping the grant even if only for 60 days would have a huge impact on boosting the ailing real-estate industry and the wider economy.

The incentive would help first-home buyers enter the real-estate market, create work within the building industry, and have a flow-on effect for small businesses right across the state.

It would also offer much-needed relief within the overcrowded rental market, as people moved out of rental accommodation and into their own homes.

Mr Kelly said there were plenty of prospective young buyers and an extra $7000 would be just the incentive they needed.

He said the extra funds would help buyers secure an existing house at the state's median price of $350,000 or build with a house and land package.

Meanwhile, buyers looking at properties under $200,000 perhaps in Hobart's northern suburbs could use $14,000 to make a sizeable dent in their new mortgage.

Mr Kelly said an influx of first-home buyers would have a ripple effect, prompting existing homeowners to upgrade to newer and more expensive homes.

"We need first-home buyers because they push the second and third-home buyers up," Mr Kelly said.

There were 18,000 house sales in Tasmania in 2003 but this has fallen dramatically, with annual figures now down to about 11,500.

The number of new-home starts has also fallen and properties are staying on the market for longer, with many people choosing to renovate existing homes rather than buy a new home.

Mr Kelly said the Government might be strapped for cash but boosting the first home owner's grant, even for a short period, would produce big results for a relatively small financial outlay.

Housing Industry Association of Tasmania executive director Stuart Clues said when the grant for building in Tasmania was tripled to $21,000 almost four years ago, it provided an immediate boost to the economy.

He said doubling the grant for 60 days would be a great start but six months would be better.

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