Media Release

Peter Gutwein MP
Shadow Treasurer

Thursday 3rd March, 2011

Building Approvals plummet, Giddings still in denial

The ABS figures on Building Approvals released today show that Tasmania’s private sector is still struggling, despite false protestations to the contrary from the Treasurer Lara Giddings.

The figures show total dwelling approvals fell 7.7 per cent between December and January in trend terms and a massive 35 per cent in seasonally adjusted terms, with Tasmania experiencing the biggest fall in the country.

How can Ms Giddings keep claiming the economy is recovering? The only part of the state’s economy that is doing well are sectors that involve huge levels of public investment or federal stimulus money.

Household consumption has been stagnant for the past five quarters, indicating that Tasmanians do not have confidence in the economy.

Private gross fixed capital expenditure is also still down on recent years, as is export trade – these are all sectors that rely on private investment.

Ms Giddings and the Labor-Green Government have relied on federals stimulus money to help the limping economy and now she plans to axe 2300 frontline public sector jobs, which will only reduce confidence.