This week saw the release of the January 2023 Commsec State of the States report and while Tasmania was ranked Australia’s best performing economy in the previous report, we’ve now slipped to number two. While we still lead the nation with our investment in plant and equipment (76.8% above the decade average), Tasmania falls behind in areas such as inflation, with Hobart having the highest inflation rate in the September quarter at 8.6% and retail spending, which dropped by 0.9%.
There is real concern that this drop in retail spending is a sign that increased costs of living, and decreased discretionary spending is hurting our economy. A big contributor to increased costs of living and a huge expense to business is energy pricing. According to an article published on The Examiner website this morning, wholesale electricity prices have started to drop and federal market intervention to cap prices has made an impact, but is enough being done to reduce the cost of living and to ensure power prices don’t jeopardise the viability of our local businesses? Is it time for government action to decrease the cost of living and increase confidence?
Following the results of the southern Tasmania elector poll on the UTAS move to the Hobart CBD, the Chamber has an invitation for the University of Tasmania: Head North.
As passionate advocates for Launceston and northern Tasmania and keen observers of the UTAS Northern Transformation Project, we value the University’s growing presence in the North. As an entrepreneurial city with high aspirations, we would welcome the shift of more University courses and entities northward from Hobart.
The benefits of the Northern Transformation Project to our region are significant:
The UTAS Northern Transformation Project has been a transformative project for Launceston that will embed the University as a pillar institution for our city. If the University of Tasmania were to move more University courses and entities to Launceston, the Chamber would be in full support.
On Tuesday Night, the Federal Government handed down its first Federal Budget. The Budget has been described as a sensible budget considering the current conditions. With the reserve bank increasing interest rates to combat inflation, and inflation the enemy of the economy, the Federal Treasurer had a tough task when implementing cost-of-living relief measures. The measures to be introduced will include cheaper child care and encouraging downsizing to free up housing stock.
In regard to infrastructure and priority projects, we’re thrilled with the news that Northern TRANSLink, an intermodal facility to be located near the Launceston Airport, will be funded. This facility will improve access to interstate and overseas markets for perishable goods and considering Launceston and northern Tasmania’s designation as a UNESCO Creative City of Gastronomy, the demand for northern Tasmanian produce will be in hot demand. This is fantastic news for agribusinesses in the region. TRANSLink is a regional priority project identified by the Regional Collaborative Framework (RCF). The RCF was a concept born in the Chamber and brought to fruition by the Northern Tasmania Development Corporation.
Health funding announcements for northern Tasmania were pleasing with $4 million over four years committed to a Medical Research Centre at the Launceston General Hospital and $20 million over four years for the development of a new hospice to provide palliative care in the region.
On the negative side, we are concerned with the lack of funding for two of Launceston’s priority projects:
With the cancellation of the Building Better Regions program by the Federal Government, the future of these two key projects is unclear, but we look forward to working with all levels of government to ensure the delivery of these key projects for Launceston.
Reference: Ruddicks Chartered Accountants advice article, available here. Ruddicks Chartered Accountants are a gold Chamber member.
The Launceston Chamber of Commerce is unashamedly 'pro-Launceston' and passionate about making a difference to businesses within our region
03 6331 9364
Ste 2, L1, 63 Cameron Street
PO Box 1854
Launceston Tasmania 7250
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