Politics drags on healthy Tassie business confidence

POLITICAL uncertainty at the federal level has affected business confidence, especially on the North West Coast, the Tasmanian Chamber of Commerce and Industry says.

TCCI CEO Michael Bailey said the results of its survey of business expectations for the third quarter 2018 showed that overall confidence remained steady.

“Recent events politically and economically have had an impact on chamber members,” Mr Bailey said.

“In general terms the expectation for the Australian economy is neutral, but with some positivity — and for the Tasmanian economy it is strongly positive.”

“However, survey results from the NW Coast showed a slightly less positive view.”

He said there was no doubt confidence had been affected by recent internal machinations of the Liberal Party.

Former Prime Minister Malcolm Turnbull was eventually replaced by present Prime Minister Scott Morrison in August.

“There is now doubt, anecdotally and via the survey results, that business people across Tasmania were concerned by the leadership struggle,” he said.

“And while new Prime Minister Scott Morrison is obviously working hard to set his agenda prior to the upcoming federal election, the recent announcement with regard to the GST has also been unsettling.”

Labor’s Justine Keay won a by-election in Braddon in July.

Mr Bailey said business confidence for the future remained strong in Tasmania.

“All regions are showing a positive expectation of a stronger state economy in 2019,” he said.

The survey shows that for Tasmania as a whole 63 per cent were positive and 32 per cent were neutral.

On the North West Coast 57 per cent were positive compared with 43 per cent neutral.

In the North 71 per cent were positive, 19 per cent neutral and 10 per cent negative.

The southern region recorded 59 per cent positive, 38 per cent neutral and 3 per cent negative.