Page 1654 - Week 07 - Tuesday, 29 May 1990
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been exacerbated by the actions of the Commonwealth Government in the lead-up to and following self-government. The Commonwealth had, over a period of years, neglected needed investment in the infrastructure of the ACT, allowed a run-down in the assets of the Territory, failed to address the emerging issues of changes in service demands and left the ACT a public sector with high costs and inadequate productivity.
More than this, the Commonwealth has short-changed the ACT both in terms of the periods allowed for the transition to full responsibility under self-government and in terms of its approach to the resolution of financial matters which should have been settled at the time of granting self-government. Having left the ACT with a very difficult budget position, the Commonwealth promised three years of Commonwealth funding in which the Territory could adjust to self-government. The first year was squandered by the Commonwealth, with the result that only two years were available from the date of self-government for the incoming Territory Government to balance the books.
By contrast, when self-government was granted to the Northern Territory by the then Liberal Commonwealth Government, a period of seven years for the phase-out of transitional funding assistance was provided. The Northern Territory had enormous natural resources which it could turn to its advantage. The ACT lacks those resources. There is also a long history of the smaller States, such as Tasmania, receiving special financial assistance from the Commonwealth.
As I have said, the ACT has been grossly and deliberately short-changed by the Commonwealth Labor Government. I can assure members of the Assembly and the ACT community that the Alliance Government will continue to press the Commonwealth for a proper financial deal for the ACT. We are not seeking unfair handouts; we are simply asking for time and equity. We have sought one-off funding to offset the specific disadvantages which the Commonwealth has imposed on the ACT and we have sought an extension of the transitional funding arrangements. This will allow us to bring ACT finances into line in an orderly way and in a reasonable time frame by any standard, without major impact on the ACT community.
The members of the previous Follett Government were unable to impress upon their Labor colleagues the need for an urgent response on these funding arrangements. Many months of argument on these points by the Alliance have still not produced a satisfactory response from the Commonwealth. It was only last week that we received formal advice from the Prime Minister that the Commonwealth had rejected our reasonable request for a longer transitional funding period.
It is not an encouraging sign, Mr Speaker, that the Commonwealth Treasurer has already foreshadowed the
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