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  • 6 hours ago
As Tasmania's Treasury department was issuing another dire warning about the state's massive debt level this week, bad news was also being delivered about the state's most significant government business Hydro Tasmania. Last financial year, a lack of rain meant hydro generated its lowest amount of energy for two decades.

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00:02Less rainfall resulting in the lowest amount of hydropower generated in two decades.
00:08The situation under climate warming will continue to get worse.
00:12That is a direct correlation to the amount of rain that we receive.
00:16So we are at the mercy of mother nature.
00:18To compensate, Hydro Tasmania has increased its reliance on gas and brought more power from the mainland.
00:24But there's another issue the government business can't fix.
00:28Less electricity generation means less money flowing into state government coffers.
00:34Hydro Tasmania does not have the capacity to pay dividends because they've been laden with debt by the Liberals,
00:40because the Liberals have mismanaged that company.
00:43And it's not the only GBE in financial difficulty.
00:47We're seeing TT Line need equity in investment, like bailout if you like.
00:52Tas Networks need equity to support their operations.
00:56It's likely Tasports will as well.
00:58It comes at a particularly bad time for the state, which is grappling with ever-growing debt.
01:04The latest Treasury report warns the state's finances are unsustainable and on track to rapidly deteriorate.
01:12Addressing that debt will require drastic action.
01:16We've got a Treasury report that says they need to find cuts or new taxes to the tune of $3
01:21.3 billion.
01:22So what are they going to do and who's going to be hurt?
01:25The Liberals need to stop spending money into things like the stadium and start taxing big corporations to get some
01:32more revenue into Tasmania's coffers.
01:34There's scepticism the government will do little more than tinker around the edges.
01:39We just don't see any policy, any plan that really addresses the severity and the seriousness of this as they
01:46haven't for years.
01:47I'm a practical guy, but I'm not a fortune teller.
01:51So let's wait until the budget comes out and it will be clearly detailed by the Treasurer.
01:55The government remaining tight-lipped on its budget repair plans.
01:59Is that less than 4 minutes?
02:03You
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