HOWARD WARNS TAS OVER DEBT

AAP General News (Australia)
08-20-1999
HOWARD WARNS TAS OVER DEBT

Prime Minister JOHN HOWARD has told Tasmania it has to reduce its state debt.

Mr HOWARD's indicated that the Tasmanian government cannot expect continued generous
federal funding unless it sells the Hydro-Electric Corporation to repay debt.

The state government has sought federal money to help pay the infrastructure costs of a
major magnesium mining and processing project.

Mr HOWARD says the request is being assessed, but adds Tasmania has been very generously
treated with Telstra money.

He says the Tasmania government has to face the reality of its debt which he says is four
times the national average.

AAP RTV dw/rp

KEYWORD: HOWARD TAS (HOBART)

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