Fair wage rise ensures more cash for health and education

ONE

of the defining achievements of the Hodgman Government’s first term was bringing our budget back into balance.

Labor and the Greens left us with $1.1 billion in cumulative deficits, an economy that was in recession and a budget that was a complete mess.

We have turned things around and balanced the budget through careful and disciplined management, and this has allowed us to spend more on nurses, doctors, teachers and frontline workers as we implement our longterm plan for Tasmania’s future.

The benefits are there for all to see. Since 2017, the Government has employed more than 1000 additional staff in health, education, law and order and our parks and wildlife service.

It demonstrates why our wages policy of 2 per cent increases a year is so important, and the Government has this week advised the public sector unions that we are committed to this policy.

A 2 per cent increase is fair, affordable and reasonable, and for the past five years, public sector wage increases have been above average CPI growth of 1.8 per cent a year.

It is also consistent with the wages policy that applies in the Australian Government and the Northern Territory and ACT governments, and is higher than the 1.5 per cent that applies in South Australia.

Tasmania has an excellent, dedicated and professional public sector. They deserve to be, and are, paid well, especially in comparison to the private sector.

We have committed for public servants to get a 2 per cent pay rise every year under the Hodgman Liberal Government and a significant number of public servants receive additional pay rises after every 12 months of continuous service.

The public sector wages bill is the Government’s biggest expense, and if it increases by just 1 per cent, to a 3 per cent pay rise, it would cost an additional $28 million, including super, each and every year.

That’s money that would reduce the investment in

health, education and other frontline services for Tasmanians.

The 2 per cent wages policy has helped Tasmania return to a balanced budget, with surpluses forecast into the future.

However, we will not spend these surpluses before we’ve earned them. They are the Tasmanian people’s insurance against adversity.

The Government is willing to negotiate within the confines of our wages policy and in good faith, but we make no apologies for investing more into frontline services. That’s the hallmark of a good government.

The contrast with Labor couldn’t be greater. Before the election earlier this year, Labor Leader Rebecca White promised to scrap the 2 per cent wages policy and instead hand the unions a blank cheque on wages.

This would have completely trashed the budget and driven Tasmania back into deficit, meaning Labor would have had no option but to cut services — just like they did when last in government.

The Liberal Government’s priority in negotiating industrial agreements is to ensure better services and value to the community, which are affordable and part of the Government’s commitment to strong financial management.

We believe 2 per cent is very fair and reasonable.

Should this be rejected by the unions, the Government will continue to engage in negotiations in good faith and within the bounds of the Government’s wages policy.