TasCorp GBE hearing raises debt concerns

Tasmanian Labor

Serious concerns regarding debt have been raised in today’s Government Business scrutiny hearing of the Tasmanian Public Finance Corporation.

Shadow Treasurer Shane Broad said the hearings had revealed a number of debt related concerns.

“Today it was revealed that the Premier has no problem with Hydro Tasmania borrowing money to pay dividends back to the government,” Dr Broad said.

“The Committee also heard that TasCorp was concerned about Devonport City Council’s debt position, which was said to be “well in excess” of TasCorp’s level of comfort. A loan was subsequently approved by ANZ.

“And we now know that TasCorp is unwilling to lend money to TT Line and TasPorts without a letter of comfort debt guarantee from the government.

“Each of these revelations carries serious weight and it is a deeply concerning amount of debt being racked up by each of these different entities.

“This comes on top of the State Government budgeting to borrow $2m a day, every day, for the next four years.

“The government needs to get on top of this debt. If the State’s own bank is unwilling to lend money to other government entities, then alarm bells should be ringing in the Treasurer’s office.”

Shane Broad MP

Shadow Treasurer

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