Page 2295 - Week 08 - Friday, 21 June 1991
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
not be consultation on those committees because of what we have done over the Leader of the Opposition. It would be unfortunate if that issue were allowed to mar the very fine objective that Ms Follett makes at page 3 of her speech.
Debate (on motion by Mr Humphries) adjourned.
PREMIERS CONFERENCE OUTCOME AND OUTLOOK FOR
1991-92 BUDGET
Ministerial Statement
MS FOLLETT (Chief Minister and Treasurer), by leave: Today I want to inform the Assembly and the community of the outcome for the ACT of the 1991 Premiers Conference, and the implications for the 1991-92 budget. Then I shall outline some decisions that the Government has already taken. Finally, I shall outline the process and timetable that the Government will be following in finalising the budget.
Mr Speaker, the Commonwealth Government upheld its 1990 pledge to maintain its general revenue grants to the States and the Northern Territory in real terms. However, it treated the ACT quite differently, and much less generously. Our general revenue assistance was set in line with the recent Grants Commission report. The commission had recommended a per capita payment to the ACT of 1.696 times the per capita payment made to Victoria.
The consequence was a grant to the ACT of $411m, including a hospital assistance grant of $50m. The comparable figure in 1990-91 was $488m. The 1991-92 grant therefore represents a cut of 16 per cent in dollar terms, or 19 per cent in real terms. To offset this massive cut, the Commonwealth decided to release all of the funds held in the ACT transitional funding trust account, estimated at $53m, as special revenue assistance.
Mr Speaker, members will recall that those funds exist only because the Commonwealth did not pay them to the ACT as provided in the real terms guarantee that accompanied self-government. In reality, our own funds are being released to help bridge the Commonwealth's huge cut. The Commonwealth did say at the Premiers Conference that it would consider the question of further transitional assistance beyond 1991-92 in the light of the ACT's adjustment efforts and the demands of fiscal policy more generally.
Mr Speaker, when I realised the import of these decisions I immediately sought a meeting with the new Commonwealth Treasurer, John Kerin; and that meeting took place yesterday. I pointed out to Mr Kerin the dramatic consequences of the Commonwealth's funding reductions for the ACT, and the need for the Commonwealth to be realistic in honouring its commitment of additional assistance in
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .