Not an economist, but…!
Some observations:
1.    Just looking in the report at the graph “Tasmanian Own Tax Revenue as % of Commonwealth Assistance”, it looks like Tasmania has actually stabilised its former increasing reliance on Federal funding.  (And this in the face of the changing revenue stream occasioned by the GST)

2.    The graph “Taxation and Social Security as a percentage of Gross Household Income” showing Tasmanians’ receipt of welfare, compared to the tax we pay the Feds, shows that we are getting a comparitively good return on our tax dollar.  The report finds this ‘troubling’.

3.    There is an unstated premise in the report that our ‘lifestyle and beautiful natural environment’ should result in ‘healthy and vibrant economic prospects’.  Are we talking pulp mills?

4.    The report begins by referring to the Nixon Report - that whacky, mongrel exercise of yet again, big city thinking sitting in judgement of regional Australia.  Nixon was a member of Fraser’s government, who with his ‘razor gang’ preceded the move to economic rationalism.  For a precis of the Nixon thing, go to:  http://www.abs.gov.au/Ausstats/ABS@.nsf/7d12b0f6763c78caca257061001cc588/01f72b4ae9cf9ef9ca256c3200241653!OpenDocument

5.  I got bad vibes reading Davidson-Novak’s ‘Tasmania: an Imperative for Reform’.  I felt that the general focus and the information presented were selective - a bit 101-ish.  No discussion of the report’s method:  how it uses Tasmania’s own tax revenue compared to its Federal income as a basis for concluding that we need to reform.  Reform what?  The report doesn’t answer this directly, it mentions in the spirit of Nixon ‘taxation, expenditure and public sector staffing’ and it seems as if the idea is that the state should be raising taxes so that they equal mainland levels.

We are doing well if

Where but” your natural state” would you actually employ the Institute of Public Affairs to review your planning system? They are renowned proponents of open slather and don’t beieve in planning!

It appears that the state government uses the term “natural” in an older sense, referring to a congenital idiot.

John Hayward

Wowsers! Dont hold back Saul, tell us what you really think! In Footy parlance I think what Saul just said would be called a ‘spray’.
So who are the bright sparks who commissioned this little gem?

Chamber’s reactionary ideologies could damage Tasmania’s economic strength

The Tasmanian Government should take great caution in taking advice from the Tasmanian Chamber of Commerce and Industry Unions Tasmania Secretary Simon Cocker said today, commenting on the latest call for reducing company tax contributions to the Tasmanian Government.  In recent times we have heard the Chamber call for:

Reduced public sector employment
Reduced public sector wages
Handing back tax revenue to the Commonwealth
Payroll tax cuts for big employers

These are reactionary policies of the kind that made the 1930 great depression so much worse than it needed to be. 

At a time when the free market has failed us on a global scale the Chamber appears to be taking its economic advice from the right wing think tanks that have drawn on the discredited USA free market ideologies.  It is time for the Chamber to seek other sources of advice and recognize that cooperation is far more important than self interest in time of crisis.

Mr Cocker said:

“When the sun shines the Chamber wants payroll tax cuts, when the wind blows the Chamber wants payroll tax cuts, when the rain falls the Chamber wants payroll tax cuts. It is disappointing that they are using the current crisis and the air of uncertainty to push their favourite barrow.”   

“It is time for the Chamber to abandon the self interest of its big members and consider policies for the benefit of all Tasmanians.  Cutting jobs and government expenditure is the opposite approach of just about every where else in the world.”

“The Tasmanian Government should not accept advice from the Chamber when it’s based on the failed free market ideologies of the right wing think tanks.  Tasmania is at its best when government, community and business work together to handle problems.”

“Extreme solutions like cutting the public service wages and job numbers and reducing government income will only shrink the Tasmania’s economy at a time when the private sector does not have the capacity to fill the void.”