Page 6194 - Week 19 - Tuesday, 17 December 1991
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I note also that the forward projections are based on present policies, and that means that of course they do not reflect new policy initiatives that this Government, or a Liberal government, might want to put into place next year. The significant thing, however, is the reference on page 4 of this document to Commonwealth Government funding, the transitional funding that was in this year's budget as a result of the recommendations of the Commonwealth Grants Commission.
My recollection is that that is something of the order of $80m that has yet to be adjusted. That has to be taken out of our budget over a period of probably two to four years. We do not know what the impact of that on the budget is going to be in the three years to which this report relates. But there is clearly to be some adjustment, and we have not yet fully adjusted, during the transition period that has been allowed to us, to a new and lower level of Commonwealth funding. But it cannot be stated, I assume, at this stage what the effect is going to be in each of the three years in question.
So, there are some questions about the Forward Estimates that need to be noted. The Chief Minister refers to the capital works program. That no doubt will generate a requirement for borrowing. The Government was able to get away with no borrowing this year, because we had a $53m payment to come from the Commonwealth. That has been used up. That allowed us off the borrowing hook this year, but it does not allow us off the borrowing hook in future years. There no doubt will have to be further borrowings which will add to the present level of debt and the present cost of servicing that debt.
I do not think, on the short exposure to the document, Mr Speaker, there is much more that I can say about it, except that the Forward Estimates, of course, always have a number of question marks about them, and this set of Forward Estimates is no different to previous ones. The test comes when this Government or a Liberal government in six months' time is putting the finishing touches to its budget for the next fiscal year. That is when we will know whether these Forward Estimates can be substantiated or not.
MR COLLAERY (3.18): Mr Kaine has given a useful overview. I want to concentrate on a couple of aspects, bearing in mind that we have had only a few moments to look at the Forward Estimates report. Mr Speaker, I am particularly interested in the Australian Capital Territory Housing Assistance Fund and the statements made earlier by this Government about an increase in capital works in relation to public housing. The Forward Estimates, in the budget outlook, indicate a reduction in capital works from $31m for 1991-92 to $23m. That is attributed to a decision to place a greater emphasis on the acquisition of selective stock through the purchase of house-land packages.
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