The world’s friendliest island is enjoying growth from environmental and new energy industries.

	Area:	68,400 sq km
	Population:	470,300
	as % of total:	2.4%
	Capital:	Hobart (population 190,000)
	Gross State Product:	A$11.27bn (2000/2001)
	as % of total:	1.7%
	State Final Demand:	A$12.81bn
	SFD growth:	3.8% (2001)
	Credit rating (S&P):	AA
	Average weekly earnings:	A$581.90 (08/2001
	Unemployment rate:	8.7%

Now on the cusp of a new era in economic terms, Tasmania’s latest statistics show that the Island State has forged ahead since the days it wore the label of “a basket-case economy”.

For example, Australia’s southernmost state has enjoyed employment growth of 1.3% in the first half of the 2001/2 financial year, while the rest of the country’s job numbers grew by just 0.2%. Total private investment is up by nearly 9%, against falls in much of the rest of Australia. Tasmania has outstripped the rest of the nation for all-house finance lending, with a strong growth of 12.9% – real estate prices and sales are at record levels for most of the state.

Tasmania’s population is also growing again. Work is under way on a A$400m natural gas project, with more than 500 people already employed in the construction phase. In the north-west, inroads have begun for Hydro Tasmania’s proposed A$200m wind farm at Woolnorth and there are prospects for a A$26m wood processing facility at Smithton. In Devonport A$20m is being spent on port redevelopment.

Island life
Tasmania consists of 334 islands, with four cities (Hobart, Launceston, Devonport and Burnie) on the main island accounting for 70% of the population. Each centre is supported by an extensive road, rail and sea transport infrastructure.

The deep-water ports in each of the four regional population centres make Tasmania exceptionally accessible by sea. Regular interstate and international cargo services are available for sea freight, and port charges are comparable with those in other states. The port of Burnie in the north-west is recognised as one of the most efficient in the world. The main island has a freight-only rail system, while all four main Tasmanian population centres are serviced by regular passenger and freight services by air.

While Tasmania is loved by Australians and international visitors alike for its spectacular wilderness, lakes and mountains, it is equally recognised as the source of some of the world’s finest food products, as well as sophisticated, advanced technology products such as high-speed ferries, heavy machinery, and equipment for the communications, mine-safety and aquaculture industries.

Year of success
The Evatt Foundation placed Tasmania at the top of its State Performance Tables for 2001, the first time Tasmania has led the field in the history of Evatt’s annual ‘State of the States’ analysis. Tasmania’s environmental performance, health policy and educational system helped push the state to the top, despite coming sixth for economic performance.

In another first, however, Tasmania achieved an international credit rating upgrade from Standard and Poor’s, upgrading its credit rating to double A in recognition of the state’s steadily improving financial position.

Other accolades include American travel magazine Conde Nast Traveler voting Tasmania the world’s friendliest island, and Tasmania being named the best in four categories at the Australian Training Awards, cementing the state’s position as a leading provider of quality vocational education and training.

International investment
Tasmania’s investment potential is also drawing international attention. Tasmania is rich in natural assets, including forests, fisheries and a variety of minerals, while an integrated, consistent and streamlined project assessment process facilitates expeditious planning approvals.

A number of dedicated business and industry parks provide tailored services for major developments – Hobart’s Tasmanian Technopark, for example, offers a superb site on an exclusive headland overlooking the Derwent River, 15 minutes from the city centre and 20 minutes from Hobart’s international airport. The Bell Bay major industry zone comprises 2300 hectares of prime industrial land adjacent to Georgetown, north-east Tasmania, on the eastern side of the Tamar River, with a deep-water port and outstanding infrastructure advantages.
Investors have the support of government teams possessing expertise in industry requirements.

Energy
Tasmania’s energy infrastructure is undergoing a radical transformation and is being spearheaded by two projects. The first is an undersea pipeline bringing natural gas to the state. America’s biggest energy company, Duke Energy International, is undertaking the project. The second project, Basslink, is an undersea electricity cable linking the Tasmanian power network to the Australian national electricity grid. These two projects will bring new options to Tasmanian power users, while enabling Tasmania to become an exporter of clean hydro and wind power.

The Tasmanian Government’s A$1.25bn Energy Plan includes A$440m for the Tasmanian Natural Gas Project, A$150m to take natural gas into homes and businesses, A$200m for the new wind farm at Circular Head, and A$500m to export Tasmania’s green power via Basslink.

The Intelligent Island
Tasmania’s A$40m Intelligent Island programme aims not only to continue growth of the island’s vibrant IT industry, but to bring all sectors of the economy into the information age.

Using a strong mix of industry expertise and representation from the Commonwealth and state public sectors, the programme proposes:

• an incubator programme to support the growth of start-up companies in Tasmania’s information industries;
  
• a A$10m enterprise development fund to improve access to capital for innovators and entrepreneurs;
  
• a A$10m centre of excellence will be created to perform commercially-oriented IT&T research, development and training;
  
• a A$5m skills development programme providing financial support for industry-focused
  education and training projects; and
  
• a A$6m investment attraction programme to develop strategic partnerships between Tasmanian firms and major national and international IT&T companies.

Agribusiness
Tasmania’s soil is fertile and productive, and is complemented by clean air, reliable rainfall, four distinct seasons and an absence of many pests and diseases. In an area of the globe dominated by oceans, Tasmania is one of the few places able to supply fresh, temperate-zone produce out of season to the northern hemisphere, and its disease-free status provides the state with a diverse range of export opportunities.

Crops such as onions, potatoes, beans and carrots are grown for domestic and export production. Tasmania produces more than 80% of the nation’s onion and apple exports, while today’s orchardists are producing a diverse range of fruits such as berries, cherries and nectarines.

Tasmania’s A$10m Water Development Plan aims to bring water to farmers where and when they need it, through irrigation schemes such as the Meander Dam proposal. The state’s farmers are well on the way to achieving Tasmania’s aim of doubling the value of agricultural production by 2008. The Water Development Plan will accelerate progress towards this goal by enabling producers to invest in high-value crops.

Boutique wineries, European-style cheesemakers and award-winning brewers enhance the ‘gourmet-isle’ reputation.

Tasmania’s island coastlines abound with marine resources, and there is strong demand in export markets for Tasmania’s rock lobsters, abalone, oysters, Atlantic salmon, sea-raised rainbow trout and deep-sea fish species. Tasmanian Atlantic salmon has established a growing niche as a premium quality product, and Tasmanian aquaculture companies now produce more than A$115m of Atlantic salmon every year. Tasmania is also the only Australian state with permission to export oysters to the US market.

Environment strengths
Environmental industries cut across all sectors of the Tasmanian economy, providing the knowledge, skills and technology to underpin sustainable development. Despite the sector’s modest profile, it is growing at 6% each year.

A new Environmental Industries Council has been formed to promote Tasmania’s expertise in environmental management and its proven strengths in consulting, and waste management and recycling.

Natural resources
Sustainable forest-based industries are a major component of the state economy. They include woodcraft, wood fuels, veneer manufacturing, saw milling, woodchipping, pulping, newsprint and fine papermaking. Tasmania has the world’s largest production line for medium density fibreboard, operated by Japanese company Hokushin. In addition, Tasmania’s geological diversity is reflected in the wide range and abundance of mineral deposits. Rocks from every major geological period provide ore and concentrate exports including copper, lead, zinc tin, high-grade silica and tungsten. Magnesite deposits in the north-west are currently the subject of feasibility studies.

Websites:
Department of State Development
www.dsd.tas.gov.au

Tasmanian Government
www.tas.gov.au

Tourism Tasmania
www.discovertasmania.com.au