Andrew Nikolic (Bass, Liberal Party) Share this | Link to this | Hansard source

I move:

That this House notes:

(1) with concern that Tasmania has the lowest gross state product per capita in Australia, the nation's highest unemployment rate, the lowest proportion of adults in the nation who have attained a year 12 qualification, one of the lowest retention rates to year 12, the lowest population growth, and the highest proportion of Australians without superannuation coverage;

(2) that Tasmania has enormous potential with productive land, a skilled and willing work force and people with a strong commitment to improve the state's economy by endeavour and hard work; and

(3) that the Federal Coalition's Economic Growth Plan for Tasmania, promised in the election campaign and reiterated in Her Excellency the Governor-General's speech opening the 44th Parliament, will provide the architecture to help tum Tasmania's economy around and encourage long term, sustainable employment.

As I reflected on the Governor-General's speech to open the 44th Parliament, I did so with mixed feelings when Tasmania was mentioned—mixed feelings because, although it was important to highlight Tasmania's dire situation, I was sad at the fact that we are in such a predicament that urgent action is needed. As the motion makes clear, Tasmania lags behind the nation on almost every objective indicator that measures growth in the federation. Our unemployment rate is the highest. Our participation rate is the lowest. The figures are even worse when fly-in fly-out workers are considered.

Since 2010 11,000 full-time jobs have been lost in Tasmania—coincidentally, the year of the last state election and the year Labor and the Greens began their political alliance. We have the lowest proportion of private-sector employment compared with public-sector employment, and that balance must change with the creation of more private-sector jobs. We also have the lowest life expectancy, the longest elective surgery waiting times and the highest proportion of people without superannuation accounts.

Tasmania is desperate for policy coherence between the state and federal governments to respond to these challenges, but that has rarely occurred during the last six years. I recall, for example, my predecessor in this parliament standing up to talk about a new $1 million building at the Ringarooma primary school that he had opened—at precisely the same time that the state Labor government and the Greens education minister within the Labor cabinet were planning to close the Ringarooma primary school. I recall former health minister Nicola Roxon in Launceston announcing new beds for northern Tasmanian hospitals—at precisely the same time that the Launceston General Hospital was closing two wards because the state government had ripped $39 million out of the health budget. These are clear cases of the left hand not knowing what the right hand is doing. Despite Labor promises over 15 years at state level and six years at the federal level, major policy problems continue.

It is no surprise, therefore, that Tasmanians resoundingly voted for change on 7 September. The Labor Party now only hold one House of Representatives seat, whereas just three years ago they held all five. As King John said, 'We cannot paint the lily.' Economically and on social measures, Tasmania is in decline. The Greens party tell us that niche industries are the answer—woodcraft, movie making and electric cars. Even the state MHA for Bass talked about a blueberry led recovery for Tasmania's economy. There is nothing wrong with any of those activities, but none of them will provide significant long-term sustainable jobs for Tasmanians. I am yet to meet one young person in Tasmania who aspires to a career as a solar polisher or a wind farm attendant.

There used to be agreement across this chamber that Greens policies are disconnected from economic reality. But with Greens ministers in the Labor cabinet in Hobart we can no longer say that. Labor in Tasmania are captive to the Greens, divided amongst themselves and fixated on trendy social issues rather than on the economy. The Labor-Greens government has strangled industries such as forestry, with approximately half the state locked up, yet every year Australia imports $2 billion in forestry products. And, if you add paper to that equation, we import $4 billion from countries where the environmental practices are nowhere near as sustainable as ours. Yet the Greens clamour for even more preservation. Their definition of 'preservation' is 'no use at all'.

There is of course a world of difference between preservation and conservation, the latter allowing natural resources to be used in a sustainable way. As Bill Gammage wrote, 'Unmanaged forests are dirty forests.' He points out that Aboriginals regenerated the land through fire. The Greens' dogmatic policies to lock up forests vastly increase the fire hazard and, ironically, the potential damage to flora and fauna. Tasmania needs less Greens dogma; it needs a strong, stable majority government with a long-term plan for jobs and growth.

The state Liberals under Will Hodgman have a plan to build a modern economy based on our competitive strengths, to create jobs, fix the budget mess, encourage investment, rebuild essential services and cut the red and green tape. It also means no more deals with the Greens, much less with Greens party members in cabinet. Liberal leader Will Hodgman is the only leader who has made that pledge.

By comparison, Labor Premier Lara Giddings was asked if she would welcome Greens MPs back into the cabinet if she won the election next year. Her reply was unambiguous: 'Absolutely.' Even Labor politicians in Tasmania deplore her approach, with Premier Lara Giddings's own parliamentary secretary calling for her to resign and for Labor never again to enter into a deal with the Greens.

Many good, hardworking Tasmanians who grew up as Labor supporters have shaken their head at Labor's betrayal. Well, the electorate did not forget on 7 September and they will not forget in March, when Lara Giddings finally faces the verdict of the Tasmanian electorate.

I have painted a bleak but accurate picture of the current Tasmanian political and economic scene. The next Tasmanian state election will confront voters with a stark choice: do they want four more years at the bottom of the national economic and social tables—four more years of young Tasmanians literally crying as they pack their belongings onto the ferry at Devonport, simply because they cannot get a local job?

Tasmania needs a business-friendly government committed to reducing red and green tape in both Canberra and Tasmania; the regeneration of value-adding industries, such as forestry, mining and agriculture; and the extraction of greater value from the things that we produce, particularly timber and agricultural commodities. We only retain approximately 25 per cent of the value of primary industry production. Wouldn't it be wonderful to have local markets in Tasmania for our agricultural products where we can value-add and export?

One particular opportunity, about which I have written in the past, is enhancing the DSTO facility at Scottsdale. It is a small but innovative centre, looking at rations and nutrition for our Defence Force, but I believe there are great opportunities to expand its potential. Australia has always been a first responder in terms of providing emergency aid in our region. We are good at this because of the ready cooperation between the ADF and civilian organisations, including aid groups. But one area where we could do more is in providing non-perishable food aid as one of Australia's response options. That is an often immediate need, as we have seen recently in the Philippines. The DSTO facility has the expertise and is located in an area that is renowned for food production, and I believe there is great capacity for a well-targeted expansion of DSTO Scottsdale to respond to this humanitarian need.

The coalition's economic growth plan for Tasmania was announced by the now Prime Minister on 15 August 2013. Elements of that plan include the establishment of a Tasmanian major projects approval agency in Launceston as a one-stop shop; incentives for employers to take on the long-term unemployed; and a joint Commonwealth and Tasmanian economic council. The plan includes a joint Productivity Commission and ACCC review into Tasmania's shipping costs, the competitiveness of our freight industry structure, and improving the equity of the Tasmanian freight and passenger vehicle equalisation schemes. I am prompted to ask rhetorically, why is it that it takes a coalition federal government to recognise the economic barrier of Bass Strait? It is simple: it was the Fraser government that introduced the Tasmanian freight equalisation scheme. The member for Franklin shakes her head, but that is a fact. It was the Howard government that established the passenger vehicle equalisation scheme, and it has taken the election of the Abbott government to commission this important review.

The regions of Australia contribute so much to our national economy. They always have, and they continue to do so in the 21st century. With a population that has shifted massively to the larger cities over the last 50 years, we tend to forget the contribution our regional based industries—forestry, mining, agriculture and a significant portion of manufacturing—makes to the national account. Well, we on this side of the House will never forget them. I am proud to be part of a government for all of Australia, and I thank the House for this opportunity to highlight Tasmania's needs.

Wyatt Roy (Longman, Liberal Party) Share this | Link to this | Hansard source

It is a great honour to second this motion from the member for Bass. In seconding this motion, I welcome the new member to this chamber and say that the electors of Bass are incredibly lucky to have a member who brings an enormous amount of professional experience to this place and somebody who brings an enormous amount of dedication, perseverance and energy. They are very lucky to have the new member in this place representing their interests. And I think this motion goes to that point. As the member for Bass pointed out, Tasmania is a great state with great opportunity. And as the motion itself says, Tasmania has enormous potential, with productive land, a skilled and willing workforce and people with a strong commitment to improve the state's economy by endeavour and hard work.

It does have a bright future, but unfortunately the people of Tasmania have suffered, as have the people of Australia, over the last few years under the awful concoction of a Labor-Greens government. As the member for Bass pointed out in his speech, there was a time in this place when there was agreement across the chamber that the major political parties would reject the insane economic policies of the Greens. Tasmania, unfortunately, has not seen the Labor Party reject those bad economic policies and those disastrous idealistic views that have a real impact on people's lives. Instead, they have seen the Labor-Greens government come to fruition in Tasmania by embracing those disastrous economic policies, and this has had a real impact on the people of Tasmania.

Perhaps I can take a moment to go through what this actually means for the people of Tasmania, because it is very stark and it is appropriate to remind the House and the rest of Australia what happens when Labor and the Greens jump into bed with each other on the Treasury benches. Tasmania has the lowest life expectancy of any state. It has the highest underemployment rate of any state. It has the lowest workforce participation rate in Australia, approximately four to five percentage points below the national average. It has the lowest proportion of private sector employment compared with public sector employment, and that clearly demonstrates the ideological divide between the two sides of politics.

Tasmania has the lowest gross state product per capita in Australia, about 20 per cent below the national average. Private business investment in Tasmania is only 1.3 per cent of Australia's total private business investment. Tasmania has the highest proportion of the population with a low-income card receiving an age pension, a disability support pension, Newstart allowance, parenting payment single, parenting payment partnered or youth allowance. It has the highest proportion of dwellings provided for housing owned by either the state or federal government of any other state. And it has the highest proportion of people without superannuation coverage.

In short, what has happened since the election of the Labor-Greens government in 2010 is the loss of approximately 10,000 jobs, a shrinking economy and a declining population. What Tasmania needs is a government with a cohesive, clear and direct economic plan. And that is exactly what the coalition government here in Canberra is prepared to deliver. With, hopefully, the election of a majority Liberal government in Hobart we will see the two levels of government working to correct the course that the Labor-Greens government has set in Tasmania.

We understand that great creators of wealth and prosperity in our nation are not the bureaucrats in Canberra and not the people pulling the strings of the bureaucracy in Hobart. The Australian people are the great creators of wealth and prosperity. The wealth creators are the small business owners, the family enterprises, the corner shops—people prepared to take on some risk, to go out there and have a go and to try and achieve something. And they will not be helped to achieve that through higher taxes or greater regulation. And whenever the Labor Party and the Greens get into bed with each other, that is exactly what we see.

Our economic plan for Tasmania will result in higher growth, more jobs and rising living standards. It is really important that, in a state like Tasmania, we re-engage those valued industries rather than victimise them—industries like forestry, mining and agriculture. That is why you are seeing a very strong commitment from the coalition government to invest in that productivity capacity and increase infrastructure by creating a one-stop shop in Launceston. I am really proud to be part of a government that understands that less government is the solution, not more government.

Julie Collins (Franklin, Australian Labor Party, Shadow Minister for Regional Development and Local Government) Share this | Link to this | Hansard source

I rise to speak on this motion, moved by the member for Bass. I agree with previous speakers that Tasmania does indeed have some challenges. But we need to be working together on those challenges not bagging the state of Tasmania, not talking down the state, not talking about all the problems in Tasmania, but actually looking at the opportunities that Tasmania has as a unique place, which other members from Tasmania would know. We have some great industries in which we can invest.

It was interesting that the first eight minutes of the 10-minute speech from the member for Bass were all about the state government and not about what his new federal Liberal government was going to do for Tasmania. He got to that in the last two minutes. But the reason that he cannot talk about that is that they are ripping hundreds of millions of dollars out of our state. They are ripping it out in infrastructure funding. They are ripping it out in rail funding. They are ripping it out in freight funding. We know that. Road funding to Tasmania almost doubled under the previous government, the federal Labor government. It went from around $400 million over the five years of the funding cycle to $810 million. That created jobs and constructed roads to increase our productivity.

We also had a package to deal with the freight situation in Tasmania. That was worth $40 million, $25 million to be delivered before Christmas, to allow some of those bigger and expanding industries to become more productive and get stuff across Bass Strait, because we know what an impediment that is. But the new government's solution, as we have heard, is a Productivity Commission inquiry. The last Productivity Commission inquiry said to scrap the trade equalisation scheme—

Andrew Nikolic (Bass, Liberal Party) Share this | Link to this | Hansard source

Madam Speaker, I ask the member to yield and explain which industries are expanding in Tasmania.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

Do you accept the question, member for Franklin?

Julie Collins (Franklin, Australian Labor Party, Shadow Minister for Regional Development and Local Government) Share this | Link to this | Hansard source

No, I do not. But I am happy to talk about expanding industries: industries like the salmon industry and agriculture, which are expanding in our state. We have been investing in the salmon industry and it is expanding. It will grow to be a billion-dollar industry for Tasmania. Does your laughter indicate that you do not support the salmon industry in Tasmania? Is that what it means?

We do support the salmon industry in Tasmania. We invested in it and it is creating jobs in Tasmania now.

Because of the jobs situation in Tasmania, we announced a $100 million jobs and growth package to support 2,500 jobs in 31 projects right across the state. What have we seen from the new government? They will not say if they are going to put that money in—$25 million a year over four years—like we said we would. There has been no indication of when or how that money will be delivered. Two and a half thousand Tasmanian jobs are relying on that money. It is very important to Tasmanians and they want to know when that money will be delivered, and they should be told when it is going to be delivered, because those jobs are so important for Tasmanians.

We did not hear from them any discussion about the NBN in Tasmania—the National Broadband Network. The National Broadband Network has been rolling out in Tasmania, and Tasmania was going to be the first state to have the NBN connected to the majority of premises in the state—200,000 premises were to have the NBN connected. It was, of course, slowed down due to asbestos, and we needed to be safe. But for the last three months under this government we have seen it almost halt. There has been virtually no construction at all, and we know what is coming next. Next, the NBN will not be going to people's premises; it will only be going to nodes in the street. You will not deliver on your commitment to deliver fibre to the premises in Tasmania. I hope I am wrong, but I certainly do not think that is the case.

We also saw other investments in Tasmania by the previous government, like the Midland Highway. We made a commitment of $500 million over 10 years. What have we had from those opposite? Only $400 million. There is $100 million missing from the Midland Highway funding.

I will now turn to two projects in my electorate, both of which are very important for safety. One in particular is the Summerleas Road/Huon Highway intersection—$17 million. It is very important for my community. It was promised by the Liberal candidate in the 2010 campaign, but now it looks like it will not be delivered. We cannot get an answer on whether or not it is happening, because I do not think the government knows.

They have also announced ripping out the SchoolKids Bonus to Tasmanians. It is very important for the Tasmanian economy. Next year 34,000 Tasmanian families will have children going to school and they do not know whether they are going to be getting that funding. They do not know whether they are going to be able to afford to pay for their kids' uniforms, because the new government wants to rip out the SchoolKids Bonus—34,000 families at an average of $15,000 per family over the life of their schooling. It is very important for the Tasmanian economy, and here the new government is ripping it away.

In recent days we have also seen confusion over Gonski funding—the funding for our schools. It is very important to have a good education. If you want good jobs, a good economy, and productivity in the state, you need children to be educated, and educated well. It is important money going into our state and the new government wants to take it away from Tasmanian schools and Tasmanian students. Are the new members for Bass, Braddon and Lyons going to stand up and tell Tasmanian families that they are going to rip money out from schools, as well as the SchoolKids Bonus? That's right, some of the government schools in Tasmania really rely on this funding. Students in low socioeconomic areas who rely on this funding want to know what is happening with their education funding—kids who are going to school in February next year. Some of the schools do not know what is going to be happening. They have been told, 'Yes, just 12 months, not four years.' How on earth are families supposed to plan for their children's schooling.

Then there is crime-prevention funding—some of the diversionary programs for kids at risk of not being in the workforce and kids at risk of not going to school. The crime-prevention funds are there. They were announced—a program that happens regularly. Community organisations, including in the electorate of Bass, are relying on that funding for diversionary projects for kids who are really struggling and need that support.

Andrew Nikolic (Bass, Liberal Party) Share this | Link to this | Hansard source

Shameful.

Julie Collins (Franklin, Australian Labor Party, Shadow Minister for Regional Development and Local Government) Share this | Link to this | Hansard source

Yes, it is shameful, member for Bass. It is shameful that you are ripping that money out. It is shameful that you are ripping hundreds of millions of dollars out of the state of Tasmania and you are not being honest with the Tasmanian people about what you are doing.

Government members interjecting—

They keep talking about the state government. Yes, the state government and the state have some challenges. But they are the new federal government and instead of investing in Tasmania they are ripping money out. Regarding this economic development plan, I have had a look at the funding for this. They are putting in $2 million in the current financial year. They are ripping out hundreds of millions of dollars and putting in $2 million. That is it: $2 million in the current financial year from their economic development plan.

What else have we heard about their economic development plan? The one-stop shop: I hate to tell them but it already exists. The state government already has one. It is called the Economic Diversification Task. It already works with major projects and proponents to actually invest in Tasmania. It already exits. Your wage subsidy? It already exists—$5,900. It is called Wage Connect. It is already there. We have had no comment from the other side about how many Tasmanians they expect to employ with their wage subsidy or whether it is in addition to the former government's subsidy or is instead of it—because, of course, it is much lower.

Who would know what is going to happen? Who would know the new government is not being honest with the Tasmanian people about its plans? The economic diversification plan does not actually detail what it is going to do—as I said, only $2 million is committed in the current financial year, ripping out hundreds of millions of dollars in road funding, freight funding, rail funding, crime prevention funding, school funding and the SchoolKids Bonus.

Andrew Nikolic (Bass, Liberal Party) Share this | Link to this | Hansard source

You're just making it up.

Julie Collins (Franklin, Australian Labor Party, Shadow Minister for Regional Development and Local Government) Share this | Link to this | Hansard source

I am not making this up, Member for Bass. This is real. This is what you are ripping out of our state of Tasmania. This is money coming out of the state of Tasmania, along with the NBN not being delivered. Tasmanians deserve better. I will hold you to account on your commitments to increase funding in Tasmania, and I really hope that happens.

We have had some interesting comments from our state government recently, which has announced some stimulus to turn the Tasmanian economy around, which already is showing some green shoots coming through. There are great opportunities, as I said at the beginning of my speech, and we should be talking together about what we can do for our state. We should be talking about how we can improve the state of Tasmania, not talking about how dire it is or the problems that exist. Rather than talking about all the issues that Tasmania has we should be looking at the opportunities of those industries that are growing, such as the salmon industry and the aquaculture industry. I have plenty of them in my electorate and I visit them regularly. There are great plans for expansion underway in Macquarie Harbour, in the member for Braddon's electorate. Industry does continue to grow in Tasmania and there are industries that are thriving. What we need to do is work together to invest in them. We need to be investing in the state of Tasmania, not ripping money out or being dishonest with the Tasmanian people, as we have seen from the new government, about what is going on in Tasmania and what will happen to the Tasmanian people under the current government.

Peter Hendy (Eden-Monaro, Liberal Party) Share this | Link to this | Hansard source

I rise to support the motion of the member for Bass. Honourable members will know that I am not from Tasmania myself, but, indeed, my electorate of Eden-Monaro is in the great state of New South Wales. However, I am supporting the motion for two reasons: firstly, while the member for Bass would have preferred for either the member for Lyons or the member for Braddon to be in a position to speak today about the motion and second the motion, the traditions of this House, whereby they are to refrain from speaking on substantive motions prior to giving their first speeches, have prevented them from doing so. I know they were keen to speak on the motion and I am sure that they will have an opportunity in the future.

Government Members:

Government members interjecting—

Peter Hendy (Eden-Monaro, Liberal Party) Share this | Link to this | Hansard source

They should buy tickets for the future!

A government member: Buy tickets tomorrow, Julie!

Secondly, I am also very happy to speak to the issues at hand because, as a member also representing a rural and regional electorate in this parliament, I know that there are particular problems that Tasmania faces that the coalition is committed to dealing with.

As the motion states, the House notes:

(1) with concern that Tasmania has the lowest gross state product per capita in Australia, the nation's highest unemployment rate, the lowest proportion of adults in the nation who have attained a year 12 qualification, one of the lowest retention rates to year 12, the lowest population growth, and the highest proportion of Australians without superannuation coverage;

Further, despite this record, 'Tasmania has enormous potential'. Because of this potential, the motion notes:

(3) that the Federal Coalition's Economic Growth Plan for Tasmania … will provide the architecture to help turn Tasmania's economy around and encourage long term, sustainable employment.

In my own first speech, I turned my attention to regional disadvantage. In that speech I spoke of the need to do the right thing by all people who live in regional areas. I said:

I hope to be a strong advocate in this parliament who can support both good economic policy and the regions. I certainly believe in economic reform, but let me say that I also believe that what I call the country-city compact, … that existed for the best part of 100 years in Australia, was a tragic victim of the reform agenda of the eighties, nineties and 2000s.

…   …   …

The country regions—

including those in Tasmania—

need a fair go. The compact recognised that there was an inextricable interdependence between the country and the city. It acknowledged that there was a mutual obligation that recognised the costs of living in the country. This has basically gone, and yet country regions remain vital to the nation.

In the case of Tasmania, the coalition has a specific plan to address the regional disadvantage. The coalition's economic growth plan for Tasmania will reset Tasmania's course to one of growth, new jobs and rising living standards. It is only through building a stronger economy that we can deliver the better future that Tasmania deserves—a future with more jobs, higher wages and better services.

The combination of Labor/Green minority governments in Canberra and Hobart has done enormous damage to the Tasmanian economy. Under Labor, no additional new jobs have been created. In fact, almost one in 10 full-time jobs have been lost under the Rudd-Gillard-Rudd government. Tasmania needs real action to create jobs.

The new coalition government plans to restore confidence in and change the economic trajectory of Tasmania. The coalition's economic growth plan for Tasmania will create a Tasmanian major projects approval agency, expand Hobart International Airport, secure Hobart as a world centre for Antarctic and Southern Ocean research, establish a joint Commonwealth and Tasmanian economic council, upgrade the Midland Highway, review the equity and effectiveness of the Tasmanian freight equalisation and Bass Strait passenger vehicle equalisation schemes, and create a fruit and vegetable industry task force, amongst other policies.

This is a strong plan for growth and jobs that builds on the discussion paper that was developed by the Liberal Tasmanian senators and candidates, including the member for Bass, following extensive consultations across Tasmania. At the last election, the coalition offered the people of Tasmania a plan to build a strong, prosperous economy and a better future for all. The election of the members for Bass, Braddon and Lyons indicates that the electorate heard that message and want the coalition's plan to be implemented. So, in conclusion, I commend this motion to the House.

Brendan O'Connor (Gorton, Australian Labor Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

I rise to speak to this motion. I do also acknowledge the fact that the member for Bass is moving the motion, for the very first time. Clearly he denied the opportunity for the members for Braddon and Lyons to speak on this, because he is aware that they have not given their first speech yet. It would have been, I think, more appropriate and more collegial if he had waited until next Monday to move this motion, because what he has done is to deny his own side's representatives in Tasmania the opportunity to speak on the Tasmanian economy. I would say to the members for Lyons and Braddon, 'Watch out for the member for Bass; obviously he is not what you would call a team player.'

I have heard a few things already in this chamber in relation to this matter, but let us just go through some of the things that have actually happened rather than the speculation that has been articulated by those opposite. Firstly, it was Labor that put forward a $100 million jobs and growth plan for Tasmania, not the Liberals. It was Labor that invested in the $17 million North West and Northern Tasmania Innovation and Investment Fund. That fund leveraged millions of dollars, and not only sustained businesses across the state, particularly in the north and north-west, but allowed them to ensure that they could provide support for businesses in that area. It was Labor that actually—

Rob Mitchell (McEwen, Australian Labor Party) Share this | Link to this | Hansard source

Order!

Andrew Nikolic (Bass, Liberal Party) Share this | Link to this | Hansard source

Mr Deputy Speaker, I ask if the member for Gorton would yield and tell me: which industries and businesses specifically have had a growth in jobs in Tasmania?

Rob Mitchell (McEwen, Australian Labor Party) Share this | Link to this | Hansard source

Just to give you some advice, questions are only permitted on orders of the day. This is not an order of the day.

An honourable member: You're an L-plater!

Do not reflect on the chair. Member for Gorton, continue.

Brendan O'Connor (Gorton, Australian Labor Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

You have been in the place for a short time, and I give you that, but, really, you have had 10 minutes on this. You have denied your own Tasmanian colleagues, by not allowing it for next Monday, and you are actually now denying me the call because of your own inability to understand the standing orders.

The fact is that the Tasmanian economy does have some challenges; there is no doubt about that. But it does not help when you talk down your own state's economy. What is really needed here is constructive proposals about how we can provide support for Tasmanians.

I note that the motion that was authored by the member for Bass goes to a number of issues that I think are significant and genuine challenges for the Tasmanian people, one of which is the lowest proportion of adults in the nation who have obtained a year 12 qualification. That is a very serious matter that needs to be addressed. That seems to fly in the face of the recent comments by the Minister for Education and the Prime Minister to deny support to the Tasmanian education system to ensure we see an increase in the accreditation of year 12 students in Tasmania. The fact is there was the Gonski plan in place and a so-called 'unity ticket', as explained by the Prime Minister and the Minister for Education prior to the last election, and they have reneged on that promise. They have completely and utterly contradicted what they said before the election. The facts are these. We have a Prime Minister who has lied to the Australian people. He has lied to the Australian people on education. I quote Phil Coorey today in the Australian Financial Review: 'Like a slippery lawyer—

Michael Keenan (Stirling, Liberal Party, Minister for Justice) Share this | Link to this | Hansard source

Mr Deputy Speaker, I rise on a point of order. It is a longstanding convention that we do not accuse each other of lying in this chamber. If the shadow minister wishes to do that, there are other forms in the House he can take advantage of. I call on him to withdraw.

Rob Mitchell (McEwen, Australian Labor Party) Share this | Link to this | Hansard source

Shadow minister?

Brendan O'Connor (Gorton, Australian Labor Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

I am happy to withdraw. As Phil Coorey said in the Australian Financial Review today:

Like a slippery lawyer pointing to the fine print after the client had signed on the bottom line—

Alan Tudge (Aston, Liberal Party, Parliamentary Secretary to the Prime Minister) Share this | Link to this | Hansard source

Mr Deputy Speaker, I rise on a point of order on relevance. I do not know how this is relevant to the motion at hand in relation to the Tasmanian—

Rob Mitchell (McEwen, Australian Labor Party) Share this | Link to this | Hansard source

The member for Aston will resume his seat. The member for Gorton may continue.

Brendan O'Connor (Gorton, Australian Labor Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

Phil Coorey wrote:

Like a slippery lawyer pointing to the fine print after the client had signed on the bottom line, the government is maintaining everyone else has got it wrong—the states, the journalists and a great deal of the education sector.

The fact is that the Prime Minister has completely and utterly contradicted the commitments he made before the election on 7 September. That is going to hurt the Tasmanian economy. It is going to hurt every student in Tasmania and you should hang your heads in shame.

Andrew Leigh (Fraser, Australian Labor Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

It is a pleasure to rise on this important motion discussing the state of the Tasmanian economy. As has been outlined by other speakers in the debate, there are important systemic reasons the Tasmanian economy has struggled over recent decades. Tasmania has been excessively reliant, as Saul Eslake points out, on the production of essentially undifferentiated commodities seeking to compete solely on the basis of price. Saul Eslake talks about the difference in productivity. He points out that the output of goods and services per hour worked is about 8½ per cent lower in Tasmania than on the mainland, which translates into a $3,600 difference in annual per capita gross state product between Tasmania and the rest of Australia. Mr Eslake also points out that there has been a longstanding assumption in some policy circles that Tasmania's problems can be solved by a single big project, such as another pulp mill. He describes this as 'a cargo-cult mentality, not an economic development policy'.

One of the real challenges for Tasmania is in boosting quality and quantity in the education system. Far too few Tasmanians receive a complete school education, up to year 12. If you are looking for a reason Tasmanian productivity is 8½ per cent below mainland productivity, educational attainment is a big part of that. How do you achieve higher levels of educational attainment? One way is to make sure that parents have a bit of extra money on the first day of school. The SchoolKids Bonus provides precisely that—a means tested payment that assists parents with the cost of school. For someone living on the poverty line that $400 or $800—depending on whether your child is in primary or secondary school—is important in making sure that they are able to meet expenses; and it can, in some instances, make the difference between a child staying on at school or dropping out of school. But unfortunately those opposite are cutting the SchoolKids Bonus so they can give a large tax break to mining billionaires. I am not sure how many mining billionaires there are in Tasmania but I would hazard a guess that there are not many.

The abolition of the carbon price and the mining tax will cost $17 billion over the forward estimates. In order to make up for that hole in the budget, those opposite have to cut into services which are important for Tasmanians. They will have to get rid of the SchoolKids Bonus, which matters to Tasmania, and cut back on school funding. We have seen the Prime Minister's toing and froing on the weekend. When you are getting beaten up by your state premier mates and Andrew Bolt, you know you are in serious trouble—and that is where the Prime Minister found himself over the weekend. Of course, his pledge that no school would be worse off meant all Tasmanian schools. But we are not going to see that; we are going to see Tasmanian schools worse off, Tasmania being one of the jurisdictions that signed up under Labor to commit to not take state spending out of their education system as the federal government put money in.

There are important challenges for Tasmania and I do not think anyone wants to underplay those challenges—lower productivity, slower population growth over recent decades and, as Mr Eslake describes it, a mix of industrial composition which has not been good for growth over recent years. There are more sectors that have lost out from a strong Australian dollar and fewer sectors that have benefited from a mining boom. That presents important challenges for Tasmania which we need to address in a bipartisan manner.

The carbon price has been good for the Tasmanian state budget and Tasmanians have been beneficiaries of the carbon price. Getting rid of the carbon price is a mistake for Tasmania as it is for Australia's kids in the future. We want to focus on those challenges of the future for the benefit of all Australians.

Debate adjourned.