NEW research by the peak employer organisation, the Tasmanian Chamber of Commerce and Industry (TCCI) shows that the health of the Tasmanian budget is a critical determinant of business confidence.

TCCI chief economist Richard Dowling said business confidence was at its highest when the budget was in surplus and the Government was not carrying debt.

“The business community remembers the dark days of the 1990s of persistent budget deficits and government debt. This caused a very bleak outlook for business confidence,” Mr Dowling said.

“Strong fiscal management saw the State return to surplus and eliminate debt. This in turn provided a big boost to local confidence and planted the seeds of the Tasmanian economic recovery.

“The risk we face now is that allowing the State Budget to once again go into the red will further undermine business confidence and delay the recovery.

“Confidence is about what you do, not what you say. Premier Bartlett can restore Tasmanian business confidence by setting forward a plan to restore the budget to surplus,” Mr Dowling said.