Page 3351 - Week 12 - Tuesday, 17 September 1991

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budget was a deficit of $6m. It should not escape attention that funds to cover the previous Government's deficit have been found from the surplus produced by my Government's budget of the year before.

On the capital budget side, spending on capital works fell short of expectation by over $14m. However, the proceeds of the first Gungahlin land auction were paid late and the outcome was a shortfall of $1.3m.

Reassessment and Consultation

These were the hard facts which my colleagues and I faced when we again took office three months ago. Since then we have had to reassess completely the directions taken by the previous Government on a whole range of fronts.

No matter how rapid or substantial the adjustment needed in our spending, I do not believe that progress can be made unless social justice objectives are given the highest priority and the community is involved in the process of adjustment. No matter how strong the rhetorical justification that may be given for particular budget measures, they will not succeed if the community believes that these measures are unjust or unfair.

That is why my Government has, once again, sought community input into budget decisions. As you know, we undertook a survey of ratepayers and invited suggestions from the community on the budget strategy statement. We have held discussions with groups such as the ACT Council of Social Service, the Canberra Association for Regional Development and the Trades and Labour Council. We have also met with many other individuals and groups in the community.

The response has been encouraging. There is a strong community spirit in the ACT and an understanding by a great many people of the Territory's financial circumstances. Attacking perceived waste came high on many people's agenda. Suggestions covered a broad range of expenditures, including roads and footpaths, waste management, education and TAFE, health and ACTION. I refer you to Budget Paper No. 2 for a detailed examination of the responses.

The Government has considered each of those responses in the preparation of this budget. As a whole, they have helped to shape the direction we are taking. Their emphasis on reducing the costs of administration has reinforced my Government's determination to get the fundamentals right in this budget.

1991-92 Budget Overview

This budget is built on the solid foundation of a disciplined approach to financial management. In my statement to the Assembly in July, just six weeks after taking office, I set out my Government's commitment to a balanced recurrent budget as the cornerstone of a


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