Premier Peter Gutwein has not decided what role Michael Ferguson will play in his new cabinet but reiterated he had 'deep respect' for his parliamentary colleague.
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Former Health Minister Mr Ferguson announced he would contest leadership of the Parliamentary Liberal Party after the resignation of former Premier Will Hodgman.
He initially indicated he would stand on the ballot alongside Attorney-General Elise Archer but the pair conceded they did not have the numbers to win against the team of Mr Gutwein and Deputy Premier Jeremy Rockliff. The decision not to stand was made in the hours before the ballot was due to be voted on Monday.
"Can I just say in terms of Michael Ferguson. I have always respected his intellect and the important fact that he's a very hard worker," Mr Gutwein said.
"And people don't give Michael [Ferguson] the credit he deserves; it is unusual for somebody to hold the health portfolio for more than five years, which is what he did. And in that time, there was record funding and significant reform as well and so I hold him in very high regard."
Mr Gutwein would not be drawn on Wednesday whether he had made any decisions about the make-up of his cabinet but said he was considering the roles and would announce it on Friday.
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It's expected the new cabinet will be sworn in early next week in Hobart.
"I'm going through that process with my colleagues at the moment," Mr Gutwein said.
He reiterated his fondness for the Treasury portfolio and noted that it was not without precedent that a Premier would also be Treasurer.
"In terms of my own portfolios, it's not unusual for Premiers to remain as Treasurer. Lara Giddings held the Treasury portfolio, Paul Lennon held the Treasury portfolio and Tony Rundle was Treasurer and Premier as well. I think Robin Gray also held the Treasury portfolio out back in the 80s as well. But I'm working through that process with my colleagues now and I'll have more to say on that on Friday."
"I've enjoyed my time as Treasurer. I understand it and in terms of the the state's economic performance and since I've been Treasurer we've had economic growth, we've created more than 19,000 jobs and we've ensured that there's a lot more opportunity available to people as a result."
He said he would be working through the options to ensure there was balance with not only his own portfolios but that of former Premier Will Hodgman to ensure an equal spread among ministers.