Page 1815 - Week 07 - Tuesday, 15 June 1993
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A continuing focus on at least a three-year timeframe is essential, given the long-term structural nature of the budget adjustments required if the ACT is to remain financially viable. As a responsible government we have provided, and will continue to provide, the truly disadvantaged in our community, and especially the victims of the recession such as the long-term unemployed, with the just response expected of a compassionate society. But as a responsible government we must also make budgetary choices that ensure that we do not get out of our depth through excessive resort to borrowing, as some States have done. The experience of those States demonstrates only too clearly the disastrous financial and economic consequences of such policies, which are the antithesis of social justice.
Since the 1992-93 budget was introduced, the forward estimates outlook has significantly deteriorated. A key factor in this deterioration has been the significantly more adverse outlook for future Commonwealth funding following the recent review by the Commonwealth Grants Commission. As indicated to the Assembly on 13 May 1993, I have undertaken negotiation with the Commonwealth to ensure a more acceptable and achievable pace of transition to State-like funding levels.
I should remind the Assembly that, in all cases where the Grants Commission's reports on new relativities have adversely impacted on the smaller States and Territories in the past, the Commonwealth has provided special revenue assistance. This has usually been provided on a basis which maintains Commonwealth funding at the same money levels as in the previous year. This same money guarantee has not been afforded to the ACT, and since self-government we have faced great uncertainty on a year-to-year basis as to the outlook for Commonwealth payments.
The magnitude of reductions in Commonwealth funding, and the uncertainty faced each year, have made the task of formulating and planning budgets in the ACT extremely difficult. The budget strategies the Labor Government has implemented have been designed to protect the ACT's future in the face of this level of uncertainty and ever-reducing financial assistance from the Commonwealth. Each of the budgets the Labor Government has introduced has been able to combine an open consultative approach and a commitment to social justice values with a high degree of financial responsibility. Our achievement in sound financial management has been reflected in ABS comparisons of State and Territory finances and the high credit rating achieved by the ACT. Our commitment to social justice has been reflected in the success we have had in progressively implementing our election platform and pursuing employment and training initiatives for groups most adversely affected by the recession.
I have undertaken budget consultations with peak community groups, and there is broad recognition of the enormity of the financial hurdles the ACT will face in 1993-94 and in future years. In the face of this scale of budget adjustment, a continuing commitment to social justice and financial responsibility demands that budget measures must include a balance of new revenue initiatives, expenditure savings, and borrowings. The Government has already imposed a greater degree of constraint on recurrent outlays than the States as a whole. This is reflected in ABS comparisons. The Government has no option but to continue and, to some extent, increase the efforts being made to reduce the cost of service delivery for all program areas.
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