Media Release

Peter Gutwein MP
Shadow Treasurer

Thursday 4th February 2010

Economy under threat as December spending crashes

ABS figures released today show that retail spending in December 2009 was at a two year low.

December is usually the busiest time of the year for Tasmanian businesses, yet in 2009 December was the fourth worst month for the year, with Tasmanians spending $438 million seasonally adjusted.

This crash in spending will send shockwaves through the entire economy that relies on healthy December trading to get through the quieter months of January and February.

The result of 8,100 jobs disappearing in the last 12 months and investment in Tasmania stalling, along with a slowdown in retail spending, means that Tasmania could be headed towards an economic crunch. The Government cannot deny that this is becoming a serious problem.

If we don’t do something soon to address this we could be headed towards a vicious cycle, where a drop off in retail spending costs jobs and a drop in employment results in a decrease in retail spending. We are already seeing the beginnings of this happening now.

What the economy needs to get through this difficult time is a direct stimulus over the next four years. Only a Hodgman Liberal Government offers the real change that is needed.

In our first four years we will pump over $24 million into the local economy through tax cuts and business support. We will rebuild the infrastructure that Tasmanians and Tasmanian businesses need and that Labor has mismanaged. We will decrease the cost of living and remove the barriers to business and investment that the Labor Government has put in place over the past 12 years.