Page 1023 - Week 04 - Tuesday, 19 March 1991
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As I said, the forward estimates reflect the current economic environment, together with the expected impact of Commonwealth funding levels over the next three years. The Government strategy is that of a balanced budget - something, of course, which Ms Follett as Treasurer could never quite grasp - minimising its needs for borrowings and making the best use of its assets. Obviously the Grants Commission report, expected later this month, will be a significant factor in how the budget will be shaped in the future. To balance next year's recurrent budget, based on certain assumptions about the level of Commonwealth funding, we need to bridge a gap of some $20m. Part of the strategy will be to continue to fund, from the ACT budget, restructuring proposals which are aimed at achieving long-term expenditure efficiencies and making better use of technologies currently available to us.
In this year's budget a number of proposals in my portfolio are on target to save considerable costs in the long term. One example is the review of telephone and other communication systems, which aims to improve network management, PABX facilities and management and building cabling, and to integrate voice and data communication by utilising modern technologies in these areas. I am happy to say that savings of up to $1m per year are expected once these measures have been fully implemented. Another example is the energy management program which, in terms of large buildings, aims to use more efficient lighting and heating and to ensure better utilisation of air-conditioning and water. Up to $350,000 a year will be saved from that program. Another one is the rationalisation of government properties to ensure the maximum utilisation, and to identify surplus properties for sale or for alternative use either by the community or by the Government.
The Government's commitment to ensuring that its assets are properly maintained - after years, I might add, of reduced funding by the Commonwealth - has resulted in an allocation of an additional $7m for repairs and maintenance. The backlog identified in last year's survey will be addressed so that assets remain functional and operative for a longer period and hence avoid the need for expensive capital replacements.
While the budget strategy aims to minimise borrowings for the capital program, this Government's construction program will provide for longer-term stability in terms of a solid base for an ongoing capital works program. That is something that I think Ms Follett does not understand. This should further reduce the disruption that has been caused by peaks and troughs that have affected and plagued local industry over the years.
The hospitals redevelopment program obviously is the priority in the initial years of the forward estimates period. However, we are putting together a comprehensive program of new works to ensure that residents of the growth
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