PEAK employer group, the Tasmanian Chamber of Commerce and Industry (TCCI) has welcomed the Costs of Living Strategy provided by the independent Social Inclusion Commissioner.

In releasing the strategy Premier Lara Giddings said it would help all levels of government and the community sector to better understand the pressures facing Tasmanian households.

Ms Giddings said the report by Social Inclusion Commissioner, David Adams, was the first of its kind in the country and would become a resource for all levels of government and the community sector to help shape advocacy, policy and responses to the cost of living challenges

TCCI CEO Robert Wallace said rising living costs were of most concern to households on low and fixed incomes.

“As a caring and connected community, we want to respond to these pressures in the most effective way,” Mr  Wallace said.

“The most effective remedy is the creation of more sustainable, income producing jobs.

“However, rising living costs also affect the attractiveness of Tasmania as a place to live for the workforce, impacting our competitiveness.

“The TCCI welcomes this report because it avoids simplistic cost shifting strategies like price caps, which only delay or transfer cost burdens.

“In particular, the TCCI supports the need for proposed remedial actions to have a clear evidence base, and a focus on improving the resourcefulness of individuals, families and communities.

“Simple and cost effective ideas might yield positive results, such as improving home economics and financial literacy training in schools, as suggested in the report.

“The Henry Tax Review found that households endured the final burden of most state taxes, so taxes cannot be ignored as a living cost.

“Ultimately the only sustainable way for Tasmania to meet costs of living pressures is to maintain and create jobs that produce income. This is where the TCCI’s advocacy focus sits.

“As the strategy states, the goal should be a ‘hand up rather than a hand out’,” Mr Wallace said.

Premier Giddings said it was an issue that stretched far beyond the control of one level of government and she would forward the Report to the Federal Treasurer Wayne Swan and relevant Ministers in the Australian Government for their consideration.

She said the State Government would carefully consider the report’s recommendations, particularly in formulating the next State Budget.

“As Professor Adams states, this is not a rush to simplistic solutions but a considered approach to understand the complexity of the issue and the start of a discussion on how to best use scarce public resources to make a difference,” Ms Giddings said.

“In the face of budget challenges I do not think it is appropriate to create adopt Professor Adam’s recommendation for an Essential Services Commissioner at this time.

“Instead of creating another senior, independent role in Government, we will work closely with the existing Economic Regulator, government businesses and departments to build a better focus on the impact of policy on low income Tasmanians.”

In line with the report’s recommendation, the Government intends to move to establish a Parliamentary Select Committee to look at the effectiveness of the current concessions system and other matters identified in the report.