Page 3354 - Week 12 - Tuesday, 17 September 1991
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the first stage of a human resource management system across the whole ACT Government Service. This automated system will reduce administrative costs significantly and allow better management of staff. It will help us avoid the unexplained staff increases which occurred under the former Government.
The third approach we have taken to reducing costs has been to put a number of high cost areas under the spotlight. In line with reactions from the community, we have looked carefully at roads maintenance, health, education and TAFE to find scope for efficiencies. In each of these areas we have been able to contain expenditure by ensuring that available resources meet our highest priority - efficient delivery of high quality services. I will detail the significant changes we are making in each of these areas later. I want to pay a tribute to the public servants of this Territory, the people at the driving edge of these efficiencies. They have responded magnificently in what is necessarily a trying time.
Reduced Borrowings
The second thrust of our strategy has focused on the need to restrict borrowings. My Government is determined to avoid burdening the future of our community with debt to be financed in the years to come. In 1991-92 there will be no new borrowings for general government purposes. Instead, my Government has decided to bolster the capital budget with $37m of the $53m provided from the Commonwealth as special assistance. This will have an immediate impact on our debt servicing commitments, which will be reduced by $2.3m this year and by over $7m in the following year.
In this context we also reviewed the previous Government's proposed capital works program. As a result, I believe we will be able to minimise our borrowing requirement in 1992-93, perhaps even avoiding borrowing for a second year in succession. We will still provide a robust capital works program that will meet the community's needs.
One further decision will impact heavily on our level of debt. This year my Government will repay over $30m of borrowings from the Commonwealth. We will pay out a $25m Commonwealth advance, made in lieu of semi-government borrowings taken up in 1988-89, by using Consolidated Fund reserves. A further $5.4m of maturing Commonwealth advances will be repaid from sinking fund reserves. The combined effect of this early repayment of debt will produce additional savings of $2m in 1991-92 and $3.2m in future years.
Let me reiterate: We have achieved a balanced recurrent budget with no new borrowing. Further, we have reduced the level of outstanding debt. This is a fundamental achievement, and one which sets the Territory on course for a sound future.
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