Build spend falls short

Only 29pc of infrastructure promise delivered

THE state government has delivered just 29 per cent of the infrastructure it promised to build in the 2020-21 financial year, Treasury has revealed.

In the nine months to March, the Tasmanian government failed to spend $197m promised for roads, $104m for health upgrades, $54m for housing, $46m for parks upgrades, $26m for prison infrastructure and $18.5m on school improvements.

In a media release issued at 3pm on Friday, re-elected Premier Peter Gutwein said the March Quarterly Report showed the state’s finances were improving as the economy recovered from the pandemic.

But having spent just $381m on infrastructure in the first nine months of the financial year, the government has three months to deliver the remaining $767m it pledged.

Previous Treasury reports have highlighted a delivery rate of about 75 per cent under the Liberals and Labor treasury spokesman David O’Byrne said the news was not surprising.

“Even by their pathetic and appalling delivery standards this is another nail in the coffin for any credibility they have with delivering infrastructure,” he said.

“It is an absolute disgrace. “You know, this is again yet another example of them trying to fudge, trying to hide the facts — this is Olympic standard.”

Greens leader Cassy O’Connor said even core government priorities were being overlooked. “The Liberals are only really interested in building more roads, and even that they struggle to deliver on schedule,” she said.

“Their ongoing failure to deliver key infrastructure in health and housing in particular, is negatively affecting the lives of Tasmanians. It’s contributing to homelessness and poverty.”

Premier Peter Gutwein talked up the overall result.

“The report demonstrates that our strong budget management is working, with ownsource revenue growing with improvements in property and vehicles sales and increased mineral royalties,” he said.

“Importantly, these higher revenues are working to reduce the budgeted operating deficit, and as a consequence the year-to-date Net Operating Balance is significantly lower than the forecast for the year.”

He said the infrastructure result was better than last year.

“With regard to infrastructure spending, it is pleasing to see that despite the significant impact of the pandemic, expenditure is almost 5 per cent higher than at the same time the previous financial year.”