The Premier, Lara Giddings, today called on Will Hodgman to stop
sending mixed messages to Canberra.Ms Giddings said Mr Hodgman had clearly taken advice from Tony Abbott on how to hold two polar opposite political positions at the same
time.

"Mr Hodgman says he wants Tasmania to stand on its own two feet
and yet he is bleating louder than anyone about the results of the Federal
Budget. 

"He wants to put away the begging bowl, but in the same breath,
he wants more hand-outs from
Canberra. 

"And it is the height of duplicity to claim Tasmania has
received a slap in the face from Canberra when his own Federal Leader would rip
up to $700 million out of Tasmania every year by changing the GST
formula.

"Unlike Tony Abbott, who would make a deliberate policy decision
that would cost Tasmania $700 million, the current fall in GST revenue for
Tasmania is simply a reflection of a shrinking GST pool as consumers spend
less.

"Mr Hodgman's attempt to blame the Australian Government for
falling GST revenue is a shameful attempt to cover his embarrassment about Mr
Abbott's potential vandalism of Tasmania.

Ms Giddings said in contrast to the politically consumed
opposition, the State Government was providing responsible financial management
in the face of significant global and national
pressures. 

"The Liberals remain oblivious to the global economic waves that
continue to wash against our shores. 

"Unlike the Liberals, the State Government does not respond to
these challenges with blame or panic, we have stepped up to the task of
providing strong and stable financial
management.

"There is no doubt conditions are tough, and they are not
getting any easier, but we have a clear plan to get Tasmania back on a
sustainable footing."

Ms Giddings said the economic confusion of the Liberals extended
to Peter Gutwein, who had displayed a breathtaking ignorance of Budget matters
in his comments about GST forecasts. 

"There is nothing unusual, untoward or inaccurate about the
forecast method used by Tasmanian
Treasury. 

"Most other states including WA, Victoria, South Australia and
NSW prepare their own GST forecasts for the Forward Estimates to factor in the
fluctuations of the Commonwealth Grants Commission
process. 

"The Commonwealth uses a relatively simple formula for
determining each state's share of the estimated level of GST Revenue that does
not take account of the expected changes in relativity that occur from one year
to the next.

"For example, Tasmania's GST relativities have been distorted by
the capital funding for the Royal Hobart Hospital project but once this money
flows through the system we can reasonably expect our GST payments to bounce
back. The Treasury estimates will be taking these sorts of things into
account.

"Peter Gutwein might like to think he is smarter than the
collective minds of Treasury but I will rely on their collective knowledge any
day over Mr Gutwein's politically motivated
posturing."