Page 1222 - Week 05 - Tuesday, 11 May 1993
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MR CORNWELL (4.44): I would remind the Assembly that the matter for debate, this matter of public importance, is, "The Government's responsibility to consult with the community on its proposals to deal with the recommended reduction in Commonwealth funding". I do that because it is very obvious that the last speaker did not address the subject at all. He spoke of a great many other matters. So let me return to the subject at hand, and that is that this Territory in the next budget, as a result of the Grants Commission, is facing a $68m reduction in funding.
Unfortunately, the Labor Government under Chief Minister Follett has not accepted responsibility for taking tough decisions in the past, and we are naturally concerned that she will not be prepared to take tough decisions for this budget either. In fact, last year she failed to confront the quite longstanding problems that led to overfunding in key areas such as health and education. This is no secret. This has been around for quite some time. In fact, Madam Speaker, it was rather interesting that the Government last year, in education, took a big step and cut $3.4m, or 1.8 per cent of its 1992-93 budget, and we are now facing a $68m overall deficit. I might add that in cutting that $3.4m they were very brave because in fact they broke the Labor Party's election commitment, and that was to expand funding to ACT government schools at the school level - a matter that has been glossed over by this Government. Nevertheless, I do believe that it is worth while drawing attention to because it shows that they are quite capable of breaking their undertakings when they are obliged to.
The education area is particularly important, as far as I am concerned, and I would like to quote from the Grants Commission in case anybody has forgotten. I quote:
On the expenditure side, the assessments for the ACT in the 1993 Review implied a 1 per cent reduction in the Territory's cost of service provision ratio. The resultant reduction in grant share derived mainly from methodology changes in the following categories:
Government Schools Education and Non-Government Schools Education - changes to the method of measuring the relevant population factor and the treatment of specific purpose payments - minus $18m.
That is the reality that the education budget is facing in the 1993-94 ACT budget. Interestingly enough, the ACT Council of Parents and Citizens Associations has drawn attention to this in their latest edition of Feedback of May 1993. They went on to add:
The ACT Government stands to lose some $7m alone because of the change in the way differences in retention rates at Years 11 and 12 are treated by the Grants Commission.
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