Libs want money back guarantee

PREMIER Will Hodgman will demand the Abbott Government gives back the $2.1 billion taken from the state in the last federal budget at a special COAG leaders’ retreat in Sydney starting tomorrow, Tasmanian Treasurer Peter Gutwein says.

And despite Tasmanian Opposition Leader Bryan Green calling on the Premier to engage in the debate on tax reform — citing NSW Premier Mike Baird’s suggestion that the GST rate be lifted from 10 to 15 per cent to fund health commitments — Mr Gutwein said the Government backed a GST status quo.

“The Premier will be putting our position very clearly … that we want to see a return of the $2.1 billion over the next 10 years that was taken from Tasmania,” Mr Gutwein said.

“But importantly, in regards to the GST, we support the current arrangements.

“We fought very hard for the current arrangements in regard to distribution to remain the same. We won that battle and don’t believe it needs to change.”

Mr Green wanted all possible funding options explored, including the suggestion by Victoria’s Labor Premier, Daniel Andrews, that the Medicare levy of 2 per cent be lifted to pay for rising health costs.

“Tony Abbott’s cuts to our schools and hospitals are completely unsustainable. The Government needs to make its position clear but Peter Gutwein’s weak comments today only confuse the Government’s position further,” Mr Green said.

“Unless Abbott’s funding gap is filled, Tasmania will not be in a position to offer quality health and education services in the future.

“Labor wants to see all sensible options explored on this, including possible changes to the Medicare levy.”

Mr Gutwein also addressed a pair of recently released economic reports that were modestly optimistic about the state’s future outlook.

The Deliotte Access Economics Business Outlook report and the CommSec State of the States report both found modest improvement in Tasmania’s economy despite lagging most other states on key criteria.

“As a government, we will continue to do what we said we would do … and importantly these two reports indicate that we are heading in the right direction,” Mr Gutwein said.

We want to see a return of the $2.1 billion over the next 10 years that was taken from Tasmania

Treasurer PETER GUTWEIN