Tasmanian auditor flags billions in subsidies for struggling state-owned firms

In a parliamentary report, auditor-general Martin Thompson highlighted that Tasmanian government-owned companies needed more than half a billion dollars in taxpayer support during the last financial year, yet delivered just under $160 million back to the state. He criticized the entities for missing performance targets and noted a trend of falling profitability, higher debt and increasing dependence on subsidies. The Treasury is expected to raise its assistance to about $909 million by 2029, while sector borrowing could rise from $5.39 billion to $8.94 billion by 2030.

TT-Line, Homes Tasmania and Metro Tasmania were singled out for material uncertainties about their ability to remain viable without ongoing state funding. TT-Line, which operates the Spirit of Tasmania ferry, received a $74.5 million equity boost last year and is slated for an additional $506 million over four years after a costly ship replacement program. Treasurer Eric Abetz said oversight is being tightened, while opposition Labor warned the businesses are on the brink of financial distress. Economist Saul Eslake, who examined possible privatisation, said the audit underscores the need to reconsider the extensive portfolio of state-owned enterprises.