OBLIGATIONS OF A STRONG ECONOMY

IN the latest State of the States report released by CommSec today, Tasmania’s economy has continued to top the class. For the eighth quarter in a row the state has outperformed other states, leading in four of eight key economic indicators and is ranking second in another two.

On the jobs front, Tasmania is ranked first on relative unemployment with the jobless rate at a record low of 3.9 per cent, which is 39.7 per cent below the decade average. In the 12 months to December jobs growth increased by 2.8 per cent. Wages have lifted too, up 2.7 per cent over the year – the fastest wage growth in the country.

With more people in work, limited overseas travel and more money in their pockets, retail spending has remained strong also – driven in part by strong construction and renovation activity.

Retail spending in Tasmania was 19.1 per cent above its decade-average levels in the September quarter, ahead of both Queensland and Western Australia.

The business sector is doing well, according to the CommSec report, with Tasmania leading the nation in equipment investment in the September quarter up by a massive 94.6 per cent on the decade average. The state is leading the way in dwelling starts too. In the September quarter, starts in Tasmania were 61.3 per cent above the decade average. This is welcome news as the state struggles to cope with long public housing waiting lists and a historically tight rental market.

The state’s economy has also ranked second across the country in the areas of relative economic growth and construction work done.

Obviously the government is pretty pleased with itself and rightly so. Premier Peter Gutwein describes the results as “fantastic news” saying it “confirms our plan to secure Tasmania’s future”.

But many of the indicators are outside the role of governments. It can help, but doesn’t control business investment or what they pay their workers or how much consumers spend on retail. Global commodity prices, the cost of finance and soaring house prices also have a significant impact on our economy.

However, the government has managed the economy well and, by keeping Covid out for so long, most Tasmanians have been able to lead relatively normal lives.

And that is the kicker. While these figures reflect our performance without major Covid disruptions, the next quarter results will reveal how the economy is coping with Covid in the community. Anecdotally businesses haven’t fared so well with a drop-off in trade as many Tasmanians have opted to stay at home in a “shadow lockdown”.

Yes, the economy is doing well but that’s not to say the government is doing a perfect job. Our health system is still plagued by unacceptably long surgery waiting lists, homelessness continues to be a challenge and our numeracy and literacy rates are still among the poorest in the country.

The government must use the state’s strong economic base and continue to invest time and resources to solve these longstanding problems.

Responsibility for all editorial comment is taken by Acting Editor Brad Petersen, Level 1, 2 Salamanca Square, Hobart, TAS, 7000