Page 851 - Week 06 - Tuesday, 25 July 1989
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
In the meantime, the business of government must proceed. In recognition of this, as indicated in this statement, we will be progressively implementing some essential proposals.
Mr Speaker, before going further, I would like to outline the impact of the Commonwealth Government's policies on the ACT. We recognise the substantial influence the Commonwealth Government has on our economy and on our budget. The Commonwealth is the ACT's biggest employer. No growth is expected in the Commonwealth sector in 1989-90.
In addition, Commonwealth government economic policy in 1989-90 will have a constraining effect on the ACT economy. The direct and major influence of Commonwealth spending restraint on the ACT will always be greater than the impact felt nationally. The "soft landing" predicted for the national economy will be harder to achieve in the ACT.
Most significantly perhaps, the ACT Government's revenue is directly constrained by the Commonwealth's expenditure tightening. With grants cut by 4.4 per cent and borrowing limits reduced in line with the other States, the ACT Government alone cannot offset the effects of Commonwealth policies.
Fluctuations in Commonwealth capital works have already had, and will continue to have, a significant effect on the construction industry in the ACT. In the wake of the downturn resulting from the completion of Parliament House, the Government welcomes the Commonwealth's decision to go ahead with the a $105m office complex at Tuggeranong.
As identified in our pre-election commitments, we are negotiating with the Commonwealth to ensure that the ACT taxpayer is protected from both the direct and indirect cost of national capital functions and past Commonwealth decisions.
The ACT is also facing a significant adjustment to its funding as a result of the Commonwealth Grants Commission finding that the ACT is better funded by the Commonwealth than the States. At the same time, I have the Prime Minister's assurance that the Commonwealth will make funds available from the special ACT transitional funding trust account it has established. This will assist the ACT to implement major adjustments needed to move to State-like funding arrangements.
Mr Speaker, the economic outlook facing the ACT community in 1989-90 is fundamental to the Government's budget strategy. The budget must meet future need, and not simply respond to past pressures.
The ACT economy has experienced major changes over the last year, and the outlook is for further significant change in 1989-90. Although the ACT has the lowest overall rate of
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .