Page 4017 - Week 13 - Tuesday, 23 November 1993
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MS FOLLETT (Chief Minister and Treasurer) (10.00): Madam Speaker, on behalf of the Government, I present the Government's response to the report of the Select Committee on Estimates on the Appropriation Bill 1993-94. Madam Speaker, as we have heard, members of the Estimates Committee devoted 83 hours to public hearings and, I am sure, considerable time outside of those hearings as well, and their efforts are appreciated.
The Government's response to the committee's report supports all but four of the 40 recommendations. Detailed responses to each recommendation are contained in the response and I therefore do not propose to deal with each one individually now. Rather, I will outline those recommendations which the Government has not fully supported and our reasons.
Madam Speaker, two of the committee's recommendations concerned the level of detail to be provided on future expenditure reductions in health and education. The committee has recommended that Ministers provide details of where and how expenditure reductions are to be achieved. The Government does not support this where expenditure reductions relate to general efficiency targets. Program managers must retain the flexibility to implement efficiency improvements as part of their management responsibilities. Departments have a strong commitment to the principles of industrial democracy and do not unilaterally introduce savings measures without progressing through the consultative process. Madam Speaker, to detail cost savings and the timing of all initiatives could breach the Government's commitment to consult in good faith with all parties and may prejudice the negotiations required to implement budget initiatives.
The committee has also recommended that funding of the Health Promotion Fund be restored to at least 5 per cent of the revenue raised by the tobacco franchise fee. Funding for health promotion services is not hypothecated on the tobacco franchise fee. To apply the percentage approach would mean that expenditure on health promotion could potentially reduce, given strategies to discourage tobacco consumption. The amount allocated is an annual allocation based on priority needs. There has been no reduction in the annual allocation. The apparent reduction results from the unexpended balances from the previous year being carried forward into the subsequent year.
Madam Speaker, the committee recommended also that consideration be given to the centralisation of legal claims against the ACT Government. Legal claims against the majority of budget funded agencies are currently centralised. However, ACTION, Health and the Department of Education and Training have the capacity to meet a normal annual level of claims arising against them. For these agencies, it is advantageous to utilise the program-specific expertise in the decision making process as to whether to compromise any legal claims by offering to settle.
Another issue raised in the report was funding of the Legislative Assembly itself. The committee recommended that I review the base funding of the Legislative Assembly to ensure that it is sufficient to maintain an appropriate level of service to members, particularly in the light of the move to the new building. Madam Speaker, this matter will be addressed in the context of the 1994-95 Budget.
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