A weak budget and softening economic conditions before COVID-19 have left Tasmania ill-equipped to weather the impacts the pandemic.
Shadow Treasurer, David O'Byrne, said Premier, Peter Gutwein, should not gloss over the truth when releasing his budget update on Friday.
"Tasmania was not in a strong position to weather the impact of COVID-19. Peter Gutwein has been ignoring the warning signs of a weakening budget and economic position," Mr O'Byrne said.
"The revised estimate report released in February predicted Tasmania would slide into net debt for the first time since 2003 this coming financial year - hitting $600 million in 2020-21 and increasing to $1.4 billion in 2022-23.
"State Final Demand was negative in the December quarter. In other words, Tasmania was halfway towards a recession even before the impact of the pandemic.
"Before COVID-19 Tasmania's underemployment was the worst it had ever been in any state or territory, with almost 50,000 Tasmanians already needing more work.
"If Peter Guwein is aspiring to return the budget and economy to the position it was in before COVID-19 then he is selling Tasmanians short because neither were on a sustainable trajectory.
"Far from being in a 'Golden Age' and position of strength, Tasmania was more susceptible to an external shock than at any point in our history.
"Peter Gutwein can't make excuses for the state of the budget and the economy; he must finally front up to the structural weaknesses in our economy that existed well before the pandemic.
"Labor will work constructively to get the state through this tough period, but let's not be sucked in by the political spin."
David O'Byrne MP
Shadow Treasurer
