Abuse claims to cost budget an extra $571 million

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****** claims to cost budget an extra $571 million

Compensation for survivors of child ******* ****** is forecast to cost Tasmania $571 million more than expected.

The island state, which has the only ******** premier in the country, was expected to record a budget deficit of $298 million in 2023/24.

But that figure will balloon to $1.5 billion, according to a preliminary outcomes report.

The state’s liability for future ****** redress and civil claims was assessed to be $647 million at June 30, an increase of $571 million from one year prior.

The state in June agreed to pay $75 million to 129 former detainees at the still-operational Ashley Youth Detention Centre who had launched legal action.

Tasmania is also implementing 191 recommendations from an inquiry that examined ******* ****** suffered by children in state care over decades.

Treasurer Michael Ferguson will deliver the 2024/25 budget on September 12.

He said the increased deficit was a result of investment in cost-of-living relief measures, recruitment of frontline workers and funding for claims of child ******* ****** over 40 years.

He said the government had been upfront about the impacts of implementing the inquiry’s recommendations.

“It will hurt the budget, and this will be expensive, but we will need to do it,” Mr Ferguson said.

“I am prepared to cop any and all criticism that results from doing the right thing in our budget responses.”

The report noted there was a high level of uncertainty around estimates and ultimate ****** liability may be higher or lower depending on the number of claims.

An extra $364 million has been spent on “employee expenses”, primarily due to increased hospital demand.

Tasmania’s net debt at June 30 had grown by $200 million to $3.5 billion, according to the report.

Labor Opposition MP Josh ******* said the figures were a “disaster” and noted ****** claims only accounted for about half the deficit increase.

“Tasmanians will be rightly wondering why they have nothing to show for this budget mismanagement,” he said.

“Our health system is falling apart, education outcomes are lagging the nation.

“We are in the middle of a housing crisis and crucial infrastructure projects like the Spirits (new Bass Strait ferries) are significantly delayed and outrageously over budget.”

Greens MP Vica Bayley said the state’s budget position was further proof it could not afford to build a new Hobart stadium, estimated to cost $715 million.

The 23,000-seat stadium, which must still pass a parliamentary vote, is a condition of Tasmania being granted an AFL licence.

The Liberals, who govern in *********, have pledged to cap the state’s contribution to the stadium at $375 million.

“If they had any sense, the government would take a look at the books … and scuttle the stadium,” Mr Bayley said.

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National ******* ****** and Redress Support Service 1800 211 028

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