Premier Jeremy Rockliff has announced he will shed the health portfolio and pass it over to another member of cabinet.
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Mr Rockliff was handed the portfolio during the COVID-19 pandemic after former health minister Sarah Courtney moved into the education portfolio.
When he was appointed premier, Mr Rockliff opted to keep the portfolio as well as the mental health and trade portfolios.
He will continue to manage these portfolios.
Mr Rockliff said he would announce the new health minister and outline a cabinet reshuffle over the coming days.
He said members within cabinet would remain unchanged.
Mr Rockliff said handing over the health portfolio would allow him to focus on economic growth and job creation within the state.
"The decision to hand over health is one that I have not taken lightly, but I do so knowing that our health system is in the best place it's been for a long time, despite increasing demand," he said.
The announcement was made at a Committee for Economic Development of Australia state of the state address in Hobart where Mr Rockliff pledged a reset for his government following recent political turmoil.
In his address, Mr Rockliff said the government had been knocked off course through the defection of former backbenchers Lara Alexander and John Tucker, debate over the proposed Hobart waterfront stadium and lingering impact of COVID.
Mr Rockliff used the opportunity to say he would not call an early election.
"The only way there will be an early election will be if Labor and the Greens decide to once again team up and put their own political self-interest ahead of the interests of the state," he said.
"And can I say at this point - I have no personal beef with Mr Tucker and Ms Alexander.
"I am grateful that they have both committed in writing to provide us with supply and confidence.
"But - and I believe this is a very important point - neither were elected as an independent.
"Rather, they were elected as Liberals on our policy platform and plan, and of providing a stable majority government.
"And, in my view, they retain an obligation to Tasmanians to continue to provide that stability and certainty until May 2025."
Labor's Dean Winter said the state needed a focused health minister, not one who treated it as a part-time role.
He said it was odd the Premier announced a reshuffle without naming which cabinet members would be reassigned to new roles.
Acting Greens leader Rosalie Woodruff said it appeared the Premier had been handling the health portfolio off the side of his desk since he took the leadership.
She said he would struggle to find a capable minister to take on the portfolio within his cabinet.
Earlier in the day, Mr Winter said Mr Rockliff's CEDA address would be mere public relations spin unless he actually showed that real changes would be made.
"Jeremy Rockliff has said that his government has got it wrong and he needs to get back on track," he said.
"The instability that his government has led the parliament into means worse business conditions and less confidence to invest in Tasmania."
Dr Woodruff said Mr Rockliff's so-called reset would mean little for Tasmanians struggling with cost-of-living pressures and access to health services.
"The Liberals have been in government for nearly a decade now and in this time they've overseen a huge backwards slide on the issues that matter to Tasmanians," she said.
"If you're one of the tens of thousands of Tasmanians desperately trying to find a home, waiting anxiously for an ambulance, spending hours in hospital waiting rooms, or unable to pay your power bill, you know this government has failed you."
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