Page 2472 - Week 08 - Wednesday, 18 August 1993

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I very clearly recall seeing and hearing Mrs Carnell on another occasion saying that it was really only $20m. She has her lines just so crossed on financial matters that she ought to stay out of it and leave it to Mr Kaine, who at least has some idea.

Mr Berry: Give him the job back.

MS FOLLETT: I would urge the Liberals to give him back the job. Madam Speaker, the Government provided information to the Assembly yesterday on the ACT's budget outcome for 1992-93. It reaffirmed the ability of the Labor Government to manage major financial adjustments in extremely difficult circumstances. That outcome, I repeat, places the ACT in a strong position to meet the reduction in Commonwealth funding faced in 1993-94, and in future years as well. It does indicate a record of financial management achievement, compared to the extremely confused rhetoric of the Opposition.

As for all governments, the Commonwealth had to make some very difficult and in some cases unpalatable decisions. The forthcoming budget for the ACT will also be extremely difficult. It is certainly not my intention to pre-empt any matter in that budget, although I am constantly under pressure from those opposite to do so. The overall emphasis of the Commonwealth's budget on employment as the highest priority, I think, is very reassuring and accords with our own priorities in the ACT. Similarly, the Commonwealth's commitment to continue important social justice issues and to fund those issues accords with the Territory's priorities. There is little relief in the Commonwealth budget for the ACT's own financial circumstances, and none was expected - we knew that that was going to happen - over and above the additional special revenue assistance which was negotiated at the Premiers Conference. We knew that outcome at the time of the Premiers Conference. It has not changed. There are a number of matters of detail in the budget which will require follow-up and consultation before their impact can be fully assessed.

The changes in tax arrangements announced in the budget will impact on Canberra residents in a similar manner to all other taxpayers, but I believe that the Commonwealth's election commitments to reduce income taxes are being honoured. The commitment to significant capital works in Canberra over and above those that were included in the Commonwealth's 1992-93 budget provides a very positive signal to the ACT construction industry, and they are measures which are strongly supported by the ACT Government. The Commonwealth budget, I believe, responds in a positive way to the continuing crisis of high unemployment in Australia. It also contains some very welcome benefits for the ACT, most particularly for economic activity in the ACT. The ACT Government supports the priority that has been given to employment issues.

We reject the alternatives put forward by the Opposition, as they would involve greater costs and far fewer benefits to the people of the ACT. That view has recently been brought home to the opposition parties with absolutely blinding fervour by the recent Federal election result. I do not think people have changed their minds, and the decision they took back at Federal election time ought to be reinforced by this Commonwealth budget. Although I acknowledge that tax increases are not popular - they are not meant to be popular - they are just the kinds of difficult decisions in difficult times that Mr Kaine has referred to.


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