Page 818 - Week 04 - Tuesday, 16 June 1992
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new capital works program for 1992-93 to the Planning, Development and Infrastructure Committee for report to this Assembly. This program is a careful balance between the provision of necessary facilities and a stream of work for the construction sector while ensuring that our capital spending in future years is contained within reasonable limits. I believe that the proposed program is the maximum affordable. Other pressures which have added to future spending requirements since the publication of the forward estimates include the Commonwealth's superannuation guarantee levy to which I referred earlier.
There have been some changes of a positive nature since the publication of the forward estimates. The Government's approval of a casino licence will have a threefold benefit to the ACT. First, the successful tenderer will pay a $19m premium to the Government which will be dedicated to cultural and heritage facilities. Secondly, there will be the ongoing benefit of a tax levied on the operations of the casino. Finally, there will be a significant boost to employment, both during the construction phase and when the casino is operating.
Madam Speaker, I turn now to the elements of the strategy. Despite the cutback in Commonwealth funding, the Government remains committed to balanced recurrent budgets over the next three years. The Territory must live within its means. It would not be sustainable to resort to borrowing to fund the everyday activities of government. We will not create an irresponsible burden for future generations. It is also imperative that we minimise our use of borrowings to finance the capital budget. The ACT's strong AA+ credit rating will enable the Government to undertake the necessary borrowings at very competitive rates. Every $10m we borrow now means that we must find from our recurrent budget $1.6m a year for 15 years to service the interest payments and principal repayment of that debt. This is particularly difficult given the continuing reduction in Commonwealth funding which we face.
In the current financial circumstances facing the ACT we can achieve our goals over the next three years only if we continue to pursue structural reform. We need to ensure that the Government and the community get value for money from government services. This does not mean that we must compromise quality. High quality does not necessarily mean high cost, and we are no doubt all aware of cases where high cost is certainly not an indication of quality. By increasing the efficiency of all aspects of government we should be able to maintain existing standards. The resulting savings will be needed to offset the Commonwealth's declining funding and to implement our social justice objectives.
Let me refer to the ACT Tourism Commission as a case in point. Last year the Government set the Tourism Commission a considerable management and restructuring task. I am pleased to report that the commission has responded magnificently. Faced with a reduced expenditure base, it has restructured its operations while maintaining its marketing expenditure at the same level as in the previous year. The commission is now poised to expand its marketing activities further.
As part of the push for efficiency, we will continue to aim for better management in the ACT Government Service through a range of initiatives covering efficiency, responsiveness to the public, accountability and good employer practices. It is a fact of life that managers everywhere are being asked to produce better services
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