Page 1100 - Week 04 - Thursday, 29 March 1990
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circumstances under which responsibility was transferred by the Commonwealth. It is a fact equally as long known that the financial changes that are occurring and which are the root cause of our concerns would have taken place even without self-government. Commonwealth financial support in the ACT was reducing in the years before self-government and this would have continued. At least with self-government, we make our own priorities and our own decisions, difficult though they may be.
We have known that the Commonwealth was handing us a potential major shortfall in revenue; that it was providing a three-year transition period; and that it would, over that transition period, maintain its funding in 1987-88 dollars. We know that the Commonwealth Finance Minister has put a value of $100m on the current annual overspend or, expressed in another way, the potential annual revenue shortfall.
We know that the transition period was in fact reduced to only two years, because one year had already elapsed before self-government day. We know that the Commonwealth has already partially reneged on its real terms guarantee by retaining some $21m of our money last year. And we know that the Follett Labor Government did not look beyond its 1989-90 budget to develop a strategy to deal with the transition to State-like funding.
In considering our strategic budget options, two fundamental questions have presented themselves to the Government. The first question is: what assets does the ACT own, and how much debt do we owe in relation to those assets? The second question is: what choices are available to the Government in addressing our financial problems? As members of the Assembly will be aware, we took action, even while in Opposition, to get answers to the first question and this led to the inquiry being conducted by Mr Justice Rae Else-Mitchell. To address the second question, we have set up the Priorities Review Board, chaired by Mr Bob White, to augment the normal budget development process. The two inquiries are timed to report so that their recommendations can be taken up in the 1990-91 budget considerations.
Several issues have already emerged from our initial examination of the choices available to us. These have been drawn into my statement today. The Alliance Government has approached its responsibilities in a serious, businesslike and fair manner. We have set ourselves four clear goals.
The first is to promote the development of the private sector in the ACT and regional economy. This is the way to greater job growth, greater stability, greater household income and reduced reliance on Commonwealth employment and finance.
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