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The Hodgman Liberal Government’s

NORTHERNECONOMIC STIMULUSPACKAGE

September, 2016

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We came to office with a long term Plan for jobs and economic growth and it is working.

Tasmania’s economy is growing at the third fastest rate in the nation. There are now 236,600 people in work, up 1600 since the election, and our retail and exports sectors are the strongest in the nation.

But we know there is still a long way to go, and we understand there is a two-speed economy with the South out-performing the North and North West.

The Tasmanian Government has been working with the Commonwealth, Local Government and the business community on ways to accelerate job creating projects in the North and North West.

Today, I am pleased to release the Northern Economic Stimulus Package that could support in excess of 800 direct and indirect jobs and support $100 million in additional State and Local Government infrastructure, as well as $100 million in private sector investment over 2016-17 and 2017-18.

These are initiatives which will drive the Northern and North Western economies, and ensure the whole State benefits from Tasmania’s economic recovery.

WILL HODGMAN MPPremier

FOREWORD

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Supporting our SchoolsThe Hodgman Liberal Government is investing more than ever before in education.

This record investment includes the targeted upgrading of our education infrastructure because we know contemporary learning spaces are vital to improving education outcomes.

In this year’s Budget we invested $113 million in education infrastructure – this is the biggest investment in school infrastructure in this state in more than 20 years.

Today, the Government is announcing it will fast-track four key north and north-west school projects, valued at more than $12 million, which will support in the order of 150 direct and indirect jobs – and deliver better schools for our students two years ahead of schedule.

The projects are Riverside Primary School, St Mary’s District High, Queechy High and East Devonport Primary.

Cradle Mountain Visitor CentreThe 2016-17 State Budget provided up to $15 million to progress the development of non-commercial infrastructure at Cradle Mountain and Dove Lake, including a visitor centre, amenities and associated infrastructure.

As part of the Northern Economic Stimulus Package, the Government will accelerate the development of the Cradle Mountain Visitor Centre. Regardless of the wider vision for developments for Cradle Mountain, a new Visitor Centre is required to meet current needs and the Government will facilitate this.

The Parks and Wildlife Service (PWS) has already undertaken some work in preparation for a new

visitor centre. The Government has asked PWS to accelerate the timetable for gaining necessary planning and regulatory approvals for the centre. It is anticipated this process will be complete by mid-2017 and contracts for construction awarded by the end of 2017.

At the same time, the Office of the Coordinator-General will continue to work with the Cradle Coast Authority and the Federal Government to progress the business case associated with the Cradle Mountain Master Plan.

The Commonwealth has committed $1 million towards the preparation of the business case.

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Building Affordable HousingThe Hodgman Liberal Government is committed to helping Tasmania’s most vulnerable.

With our economy growing, confidence returning and the budget heading back to surplus, we are investing the dividends of our hard work into the core services of Government, such as improving access to affordable housing for Tasmanians.

The Government will bring forward $5 million for the construction of 27 units as part of our

Affordable Housing Strategy. Previously scheduled for construction in 2017-18, we expect to deliver 10 units in the North and 17 in the North-West.

Design and construction tenders are expected to be released by November and construction will commence by March 2017. This capital investment will support in the order of 60 direct and indirect jobs.

Investing in ForestryUnder the Liberal Government, Tasmania’s forest industry is growing in confidence, with many positive signs and new jobs being created.

The Government will provide $250,000 towards a full $5 million feasibility study into the proposed $100 million black-pellet plant in the Tamar Valley.

This study will develop design and take the project to the capital expenditure approval stage, including regulatory approvals.

New Forests’ Black Pellet Project would create approximately 25 full-time equivalent highly skilled jobs in the plant and a further 30 jobs in raw material processing and supply.

The plant would generate gross export income of $60 million annually.

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Connecting our Community with Roads and BridgesThe floodwaters that swept through the North and North-West in June had a devastating impact across our community, with lives lost, homes and businesses inundated and significant damage to roads and property.

The Government is providing $8.7 million for the replacement of high priority, critical road and bridge infrastructure.

This funding will be spent on repair and replacement in the North and North West this financial year. This investment will not just help the community recover from the floods, but will support increased economic activity and jobs in the regions.

Incentivising Local Government Capital WorksLocal Councils in the North and North-West will be offered finance at no cost to bring forward capital works programs.

The program will enable councils to accelerate their existing planned five year capital spend, including matching commitments arising from the Federal election, at no financial disadvantage.

Funding will be provided to support a pool of $60 million that relevant councils can access on a first-come-first-served basis.

The Government will fund the interest incurred by Councils in the period between when they draw down borrowings and the time at which they had otherwise planned to fund the projects themselves. If the $60 million in funding was fully taken up by councils, it would support over 700 direct and indirect jobs.

Based on the success of this pilot program, the Government will consider extending it to other areas where stimulus is required.

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Fast Track North and North-West Federal Election CommitmentsThe Hodgman Government is working with the Commonwealth to quickly prioritise the Coalition’s Tasmanian election commitments to ensure that the funding flows as quickly as possible.

A key commitment is the $150 million allocated for the University of Tasmania campus relocation projects in Launceston and Burnie, matching the funding committed by the State Government and the University.

The Coalition also allocated $7.5 million for the Launceston City Heart project.

More than $18 million has been provided for road upgrades in the North and North West, and approximately $12 million in relation to building-related projects.

Another key job-related commitment from the Coalition was its $25 million Regional Tasmania Jobs and Investment Package.

Grants under the Regional Tasmania Jobs and Investment Package will be awarded through three streams:

• support for businesses to grow and bring forward expansion plans;

• building local infrastructure; and

• investment in skills and training programs to build a highly skilled local workforce.

These grants will assist local businesses in Launceston, Devonport, Burnie and other areas across regional Tasmania to grow, as well as encourage new businesses to enter the region, creating new sustainable jobs.

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Copyright: State of Tasmania 2016

Published: September 2016

15 Murray Street, Hobart 7000Email: premier@dpac.tas.gov.auVisit: www.premier.tas.gov.au