Page 1112 - Week 04 - Thursday, 29 March 1990

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considered to ensure that the people of the ACT are getting value for their investment in ACTEW. As well, current assistance provided to ACTEW to carry out some of its capital works needs to be reviewed, in line with arrangements in other parts of Australia.

The public bus service provided by ACTION is currently costing the ACT community over $20m a year to operate, by way of subsidy. Other States have similar problems and are tackling them in an integrated manner. The ACT must do likewise, by making the most productive use of employees, buses and facilities in ACTION. This, together with reviewing the organisational structure, funding arrangements, regulatory framework and other opportunities for improving the cost effectiveness of the service, will have a positive impact on the budget. Any evaluation of the operations of the public bus service will take account of the Government's overall transport objectives and their implications for planning, development and the environment.

I have concentrated so far entirely on our Territorial or State-type budget. But we must not lose sight of the fact that municipal services cost the ACT community close to $105m in this current year 1989-90. We have one of the largest municipal budgets in Australia. While our rates are on average lower than other local government areas, we are concerned that some municipal services have been incorrectly included in the Territorial budget. We are currently reviewing this matter to ensure that all municipal services provide value for money, and are met from within the municipal budget.

The city-State nature of the ACT is unique within Australia. It provides us with opportunities not available to other States. In restructuring ACT services, we will be looking closely at areas where we can gain advantages from this unique combination. In particular, the administrative superstructure will be comprehensively examined by the Priorities Review Board. Any problems of duplication, demarcation and service overlap will be eliminated.

There is a particular need to examine our internal services and procedures within the ACT Administration, including publicly owned vehicles, tendering, computing, personnel and accounting arrangements, to ensure that they are appropriate and cost effective. A review of vehicle fleet management arrangements is virtually complete, and I expect this to lead to significant cost reductions. I have asked the Priorities Review Board to report specifically on the other matters that I have mentioned.

My emphasis so far has necessarily been on reducing expenditure in order to achieve the balanced outcome we require. If at the end of the day our goal has not been achieved we will have no choice but to examine options to increase our revenue. However, the Alliance Government will ensure that any revenue options we put forward are balanced and are not contrary to our underlying objectives for the development and well-being of the ACT community.


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