Page 349 - Week 02 - Tuesday, 20 February 1990
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
Mr Speaker, it is essential for this Assembly and this Government to maximise the efficient use of the limited funds that we have available to us. This Priorities Review Board is a very significant step towards achieving that.
MS MAHER (8.43): Mr Speaker, this debate goes to the heart of possibly the most important issue to face Canberra in the first year of self-government. The Chief Minister indicated in a speech to the Legislative Assembly early in December that the Alliance Government intended to improve the efficiency of the government services and ensure that the ACT public sector is efficient and cost effective. The Chief Minister's announcement reflected the critical need for early action to bring the cost of ACT services within the limits of the ACT community's ability to pay. There is currently a shortfall of $100m in the cost of providing ACT government services and the revenue available to pay for those services after the phasing out of the Commonwealth financial guarantees in 1991-92. In short, the ACT is living beyond its means.
The Opposition does not deny this but, as usual, it cannot come up with a better alternative. The Alliance Government, therefore, has to make some difficult decisions on behalf of the ACT community. Either revenues must be raised or the cost of government services must be reduced. Regardless of the result of the Federal election, it is extremely unlikely that the Commonwealth Government will agree to provide additional financial assistance to the ACT. The only prudent assumption that we can make is that Commonwealth assistance to the ACT will, in future, be determined in accordance with the recommendations of the Commonwealth Grants Commission.
This brings us back to the forecast of a $100m revenue shortfall. It is not acceptable to this Government that we should attempt to cover the shortfall by raising taxes and charges. To do so would make the ACT a high tax location for the private sector and work against the Government's economic development strategies. It would also put an unacceptable burden on ACT householders.
The only available option is therefore to find ways to reduce expenditure without putting at risk key government programs. Unlike the previous Government, this Government is unwilling to make ad hoc and uncoordinated cuts in government expenditure. We will not have a razor gang approach in the ACT. The establishment of a Priorities Review Board will allow the Government to approach this task in a systematic and careful way.
This review will set the pattern for the actions being taken to streamline the public sector expenditure. It is the Government's intention that the review should not only identify ways to increase efficiency and reduce costs but also lay the foundation for an ACT government service which will serve Canberra residents well in future years.
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .