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Hodgman’s sellout of future generations will be his legacy

  • Tasmanian political parties have had a unity ticket on GST for decades
  • If the Premier walks away now he is selling out future generations
  • That will be his legacy

Prime Minister Malcolm Turnbull has today confirmed he will announce the biggest shakeup in Federal-State financial relations in decades.

Labor Leader Rebecca White said unless there is a guarantee to retain the current GST formula then Will Hogman has failed to stand up for Tasmania.

“Maintaining the current GST formula locks in Tasmania’s future prosperity – anything less than that is second best,” Ms White said.

“Tasmanian political parties have had a unity ticket on GST for decades. If the Premier walks away now he is selling out future generations. That will be his legacy.

“Every single Tasmanian Premier and Opposition Leader have historically argued against any changes to the method of distributing the GST.

“Like all other Tasmanian political leaders, Mr Hodgman had always opposed changes to the GST distribution methodology.”

 

“We will continue to vigorously oppose any changes to horizontal fiscal equalisation.  It is a vital attribute and characteristic of our federal financial relations.  It provides fairness and ensures that all Australians, no matter where they live, can access reasonable standards of essential public services.” 

  • Will Hodgman, 20 October 2014

Ms White said any move away from the current model of GST distribution is an assault on the fundamental principles of fairness that have underpinned Australia since Federation.

“As Mr Hodman said in 2014, the current model provides fairness and ensures that all Australians, no matter where they live, can expect the same level of service.

“I again implore Mr Hodgman not to accept any change to the way the GST is distributed.

“It is expected that Mr Turnbull will also announce a short term transition package to transition the smaller states to a lesser share of the GST.  Tasmania will almost certainly be the biggest loser in this.

“The Prime Minister will claim Tasmania will not be worse off but we know that every change modelled in the draft Productivity Commission review means less revenue for Tasmania.

“Therefore a decision to change the formula will do long term damage to the way Tasmanians are educated, protected and cared for.

“The current GST distribution method means that Tasmanians can expect the same level of public services in our state as they would in any other.  That will change.

“It will cost Tasmanians billions of dollars in the long term and mean that when the top up payments run out, every future Tasmanian Premier will need to go to Canberra with a begging bowl.”