Australian Politics and Policy - Senior, 2019a

Tasmania
Conclusions
The central challenge facing Tasmania is whether the island state can exploit its
distinctive strengths to achieve sustainable and inclusive economic growth despite
the challenges of remoteness and scale. In many ways, this is a political challenge
as much as an economic one. Ultimately, Tasmania’s prosperity will depend on two
factors. First, the political challenge involves resolving traditional tensions between
progressive environmentalists and more conservative commercial interests. On this
front, the outlook is more optimistic than it has been for decades, given that
political conflict over forestry has abated significantly in recent years, although
concerns about aquaculture and tourism remain. A second challenge is whether
Tasmanians can have the education and skills to capitalise on the transition from
an industrial to a service and knowledge-based economy. The concern here is that
levels of educational attainment in Tasmania are well below the national average
andthatgrowingnumbersofbusinessescomplainaboutshortagesofskilledlabour.
Tasmania is Australia’s smallest and poorest state. Its isolation, scale and
economic challenges have contributed to what is, by Australian standards, a unique
political culture. In recent years, Tasmania’s economic performance and outlook
have improved significantly, but it remains to be seen whether the ideological and
parochial divisions that have afflicted its politics in the past will prevent the island
state from realising its full economic and social potential.
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