The Treasurer Michael Ferguson has admitted the government's proposed $750 million stadium will go on Tasmania's credit card, pushing our debt even higher again.
Tasmania's debt is already set to hit even higher levels under the Liberals, with Government Business Enterprise scrutiny hearings being told today of concerns about the level of borrowing and interest rate volatility.
And, Mr Ferguson admitted that the government will approach TasCorp to fund Tasmania's share of the stadium, meaning millions of dollars will be added to the state's debt even before interest rates are factored in.
GBE hearings this morning heard that the blanket COVID debt guarantee - in the form of "letters of comfort" are still in place for all entities borrowing from TasCorp including GBEs and local councils.
Not only that but the Auditor General's annual report shows that out of seven Public Non-Financial Corporations that hold borrowings, five have a current liability balance that exceeds their current assets, and across the PNFC, there appears to be a working capital deficit.
The TasCorp Chair Tony Ferrall told today's hearing that there have been discussions with the Treasurer about the risk associated with new borrowings by unnamed state entities, saying a sustained period of higher interest rates will have an impact on debt levels.
Net debt is already at $1.3 billion with almost nothing to show for it - our hospitals are in crisis, our education outcomes are going backwards and a record number of Tasmanians are waiting a record amount of time for housing.
This is no time for more reckless spending from the Liberals - and spending $750 million on a new stadium with no business case, is completely reckless.
Shane Broad MP
Shadow Treasurer
