14 March 2025

Guy Barnett, Treasurer

Tasmanian Government businesses should deliver services to Tasmanians at the lowest sustainable cost while also growing our economy and engaging with business and community in a constructive manner as outlined in the 2030 Strong Plan for Tasmania’s Future.

With assistance from Saul Eslake, the Tasmanian Government will evaluate the economic impacts and potential merit or otherwise of divestment of government businesses. It will also seek advice on whether a business should be restructured or realigned.

Treasurer Guy Barnett, said the Government is acutely aware of the need to provide certainty to employees of Government businesses and the Tasmanians they service. 

That’s why we will progress this important work as a staged approach. 

The first stage will include an initial assessment over the coming weeks to determine if the business should progress to a more thorough analysis. 

The Treasurer said the assessment of government businesses will take a "Team Tasmania" approach, to ensure that any divestment or restructure decisions align with the State's long-term interests, prioritising local businesses, communities, and sustainable growth. 

We have developed a principles-based framework - in consultation with Mr Eslake - that ensures any divestment or restructure benefits Tasmania's economy, workforce, and public services which will be refined in coming weeks.

Key considerations include:

1. Local Economic Growth and Job Creation

  • How efficient is the current business?
  • Does the current structure support Tasmanian businesses and workers or would they be better served by a divested entity?
  • Will divestment lead to new job opportunities for Tasmanians?
  • Are there commitments to retain or expand local employment and skills development?
  • Does the current structure encourage investment in infrastructure and innovation or would a divested entity perform better?

2. Community Access and Public Benefit

  • Will Tasmanians continue to have affordable and equitable access to essential services?
  • How will rural and regional communities be affected?
  • Can appropriate safeguards be put in place to prevent price hikes or service declines?

3. Competition and Market Fairness

  • Will divestment enable the businesses to operate in a competitive environment, and are there safeguards in place to protect competition?
  • What opportunities or competitive barriers would exist for local businesses?
  • Is there potential for the service delivery to be “captured” by multi-nationals?
  • Is there a plan to regulate pricing, service quality, and market fairness?

4. Fiscal and Budgetary Responsibility

  • Does divestment deliver long-term value for Tasmanians?
  • Are there hidden risks, such as ongoing Government liabilities or loss of strategic control?
  • Have the long-term budgetary and fiscal risks been accounted for as part of the assessment?

Government will continue to engage with Government businesses and the Industry Reference Group regarding this work.

The Treasurer will provide regular updates on the progress of this important reform project.