Page 2255 - Week 09 - Tuesday, 15 September 1992

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Retail turnover increased in 1991-92 by 8.2 per cent in real terms, compared to the national figure of 3.2 per cent. This reflects the ACT's higher average disposable income, the relative stability of a large sector of our work force, the high level of population growth and the growing attractiveness of Canberra as the region's centre of commerce. Canberra's CPI of 2.6 per cent was above the 1.9 per cent national figure.

The Government is concerned that the sense of activity and relative prosperity implied by these figures does not mask the problems facing those in our community who are less well-off. Canberra can be a very difficult place in which to live for the poor, the unemployed and those bringing up a family by themselves. The community support and employment initiatives in this budget recognise these needs. The ACT also continues to experience a change in its demographic structure. The number of frail aged increased by 5.3 per cent in 1991-92 and those aged 65 and over increased in total by 4.1 per cent. This trend is long-term and underlines the importance of the Government's policies in residential and health care and community support.

There is an imperative for greater choice in housing to meet the needs of the aged and the trend towards a greater proportion of households headed by a single adult and for smaller households overall. The priority the Government is placing on urban renewal, and on its proposed better cities projects, is in large part a response to this need for more diversified housing and better use of existing infrastructure. This is a long-term process of urban change.

I turn to the budget outcome for 1991-92. Madam Speaker, 1991-92 was a difficult year in which to manage a budget anywhere in Australia. In the ACT we responded in a caring but careful manner and applied additional resources where they were most needed. Total receipts for 1991-92 were $21.1m more than estimated at budget time. The overall outcome was a small recurrent surplus of $6.7m, equal to 0.6 per cent of the recurrent budget. There was also an improvement of $5.6m on the capital budget. The Government paid back $25m of debt to the Commonwealth. We also refinanced $42.2m of Commonwealth debt by replacing it with commercial borrowings. This will save the ACT community an estimated $3.8m in interest payments over the next 10 years.

The Government's sound financial management policies, our low debt policy and our prudent use of borrowings and provisions for accruing liabilities such as superannuation have been well received in the financial marketplace. The ACT Government has been awarded a long-term credit rating of AA+ with a positive outlook. This ranks the ACT second only to the AAA rated States of Queensland and New South Wales.

I refer now to Commonwealth financial relations. The Commonwealth budget, delivered last month, placed a greater emphasis on training and industry across Australia and gave more funding to the TAFE sector. This will be good for our youth and good for industry. The ACT is actively participating in these initiatives. The ACT will also benefit from the Commonwealth's increased funding in such areas as road improvements, better cities projects and secondary schools refurbishing. We are currently negotiating a greater level of support for our public health system. The ACT will receive a very welcome injection of funds into our local construction industry. The scale and nature of the projects will


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