Labor plea to stop raid on Hydro coffers

HYDRO Tasmania is being saddled with unsustainable levels of debt by the Government’s continual demands for dividends, Labor says.

Premier and Treasurer Peter Gutwein last week announced a big increase in health spending on the back of $90 million in special dividends from governmentowned businesses Hydro Tasmania and Sustainable Timbers Tasmania.

Labor’s Treasury spokesman David O’Byrne quoted from Hydro’s own Statement of Corporate Intent which said it could not afford more dividends.

“Dividends have been included based on the Government’s 90 per cent dividend Policy,” the document said.

“However this results in forecast debt that in the view of the Hydro Tasmania Board may be unsustainable.”

Hydro’s debt levels are projected to increase to $780 million by 2022-23.

Mr O’Byrne said Hydro could not afford to prop up the State Budget.

“Peter Gutwein is raiding Hydro Tasmania to cover up the true state of his broken budget,” he said.

“What he’s done is like using a new credit card to pay off an existing credit card.

“Peter Gutwein still thinks he can pull the wool over people’s eyes using this dodgy accounting trick.

“Without the latest ‘special dividend’, Peter Gutwein’s budget would be $60 million in the red. This isn’t good management, it’s a con job.”

Finance Minister Michael Ferguson told Mr O’Byrne to stop complaining.

“Following a two-week festival of whingeing, where David O’Byrne has been out talking down the economy, damaging businesses and trashing our investment in health, it is high time he voiced his own policies and some sort of alternative plan,” he said.

“It is sound government business practice to effectively utilise special dividends from well-performing Government Business Enterprises to make investments in priority areas, when the circumstances allow.”