Page 854 - Week 06 - Tuesday, 25 July 1989
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estimates report for the three years 1989-90 to 1991-92, which the Government released on 9 June. In view of the changes to organisational structures which have taken place since the Government took office, I am now releasing that report again, in a format consistent with proposed budget documentation. The forward estimates report revealed that the ACT would face a serious shortfall in the funds required to carry out the ongoing functions of government, had there been no change to existing policies.
The shortfall identified was $20.9m in 1989-90. This would have risen to $36.5m in 1990-91, assuming no further real cuts in Commonwealth grants to the ACT. Decisions announced earlier, such as the adjustment to motor vehicle charges, as well as some variations to the forward estimates, have reduced the deficit to $10.5m.
In addition to meeting this shortfall, however, there is the task of aligning the ACT with the Commonwealth's funding to the States. As a first step, the Government has sought not only to address the deficit but also to achieve an additional $10m reduction in recurrent outlays in 1989-90. Our total objective is therefore in the order of $20.5m.
The outcome of last year's budget indicates that there will be no surplus funds available to help this process. The outcome was substantially as estimated. Provision had to be made to pay $68m to the Commonwealth for serviced land and $12m for our 1989-90 asbestos liability.
The Government has developed a package of measures which will help to balance the budget to reduce the recurrent expenditure by a total of $13m in 1989-90. The major savings result from changes designed to reduce administrative costs by eliminating duplication, improving service delivery and reducing discretionary expenditure.
The proposals in health and education primarily respond to the forces of overfunding identified by the Grants Commission. The Government remains committed to a high standard of health and education in the ACT. Addressing these components now, in the manner proposed, without affecting those standards, will realise substantial savings in future years. In the short term it will enable high priority needy areas is to be enhanced.
Specific proposals in the health area include the rationalisation of nursing shift arrangements at Royal Canberra Hospital to eliminate excessive overlap, the coordination of staff days off to align elective services with staff availability and the aligning of ambulance financing arrangements with those in New South Wales by introducing a health fund levy.
We will undertake some rationalisation of welfare grants and concessions, including grants to a few non-government organisations, to ensure more effective and appropriate use of welfare expenditure, including adequate accountability.
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