Peter Gutwein
Six Tasmanian government businesses are operating with a letter of comfort from the Treasurer including Forestry Tasmania. Source: Herald Sun
During a government business enterprise hearing scrutinising the Tasmanian Public Finance Corporation, Labor MLC Craig Farrell asked Treasurer Peter Gutwein which state-owned entities currently had a letter of comfort.
Mr Gutwein named Forestry Tasmania, Hydro Tasmania, Tasmanian Irrigation, TasRail, Tasports and Tasracing Hydro Tasmania has been operating under various letters of comfort from Mr Gutwein — also known as a support agreements — since the Liberals took office.
Mr Gutwein said the situation was not unprecedented, with Hydro Tasmania receiving letters of comfort under the previous government.
He said Hydro Tasmania was operating well below the maximum level of the current comfort letter.
“Over time we would expect Hydro Tasmania’s financial position to improve,” he said. “I would prefer to have businesses that would not require a letter of comfort.”
Tascorp chairman and Treasury secretary Tony Ferrall said letters of comfort were not an indication that the businesses were in trouble.
“It is not a signal that we believe they are insolvent or bankrupt, because quite frankly we don’t want to have to rely on the letter of comfort. We want entities to repay their borrowings over time,” he said.
Mr Gutwein said the State Government had been up front about the letter of comfort given to Forestry Tasmania as the business was restructured.
