Vote 2016: Parts of Tasmania still struggling despite economic boom

After spending the week in Tasmania for Election 2016, senior political correspondent Daniela Ritorto sat down with one of Australia's pre-eminent economists, and proud Tasmanian, Saul Eslake, about the state's economy.

Hobart's Museum of Old and New Art

Economist Saul Eslake credits the world-renowned MONA (Museum of Old and New Art) with fueling a tourism boom in Hobart. Source: abc- Mona Museum

Jobs.

That's what almost everyone in Tasmania talks about. But for the first time in years, it's a much better story.

No longer is the state languishing on the bottom of the unemployment tables. That unwelcome ranking now belongs to South Australia.

The latest ABS data improved the picture again, with April's seasonally adjusted unemployment rate now 6.3 per cent, down from 6.8 per cent last month.

Most importantly, it's down down from the highs of 8.7 per cent just before the last election.

Everyone I met in Hobart talked about a mini-boom happening in the last few years.
The world-famous MONA (Museum of Old and New Art, pictured) is fueling a tourism boom and with that, confidence.

But not everyone is sharing the feeling.

When I travelled to Launceston, two people gave me almost exactly the same quotes. 

"A lot of the businesses in town are closing down in Launceston so I guess that's a big issue here, why are we struggling when Hobart seems to be thriving?" - Esmier, retail worker.

"How you compare to Hobart to what we have here in Launceston as you look around St Johns Street, you've got lots and lots of businesses that are closing and we need to do something about that" - Jess, cafe owner.

Tasmania's dairy farmers, who are mostly in the north, are feeling pretty downbeat too after the latest cut in milk prices. 

To understand whether the north-south divide is based on perception or fact, I dropped by the home of one Tasmania's most successful returned sons, the renowned economist Saul Eslake.

Here's his take:



Some of Tasmania's disadvantages are obviously known to everyone who lives on the island but they're still rather eye-opening to hear spelled out.



So what's the future of the Tasmanian economy? Where will the growth come from?




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2 min read

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By Daniela Ritorto
Source: SBS News


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Vote 2016: Parts of Tasmania still struggling despite economic boom | SBS News