Page 1874 - Week 07 - Tuesday, 14 June 1994
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Australia is emerging strongly from the recession of the early nineties. Nationally, this is shown in the increased pace of economic activity and in the recovery of confidence amongst consumers and businesses. The ACT weathered the recession with continued strong growth in gross state product of about 4 per cent in each of the last two years. Population growth remains well above the national increase and is an important driving influence on the Territory's economy. Construction activity, other than for housing, showed good recovery during 1993-94 and is forecast to grow at a healthy rate during 1994-95.
Overall, it is expected that 1994-95 will see the ACT remain above the national rate, with even stronger economic growth than in recent years, with an acceleration in the formation of new jobs and a forecast fall in unemployment. These figures also reflect the increasingly important contribution which private sector activity is making to the overall health of the ACT economy. The relative stability of our employment base and steady growth in incomes has created a platform for continued strong growth in consumer spending. Private business is strong. Tourism, in particular, is doing very well. The increases in accommodation occupancy rates and turnover are clear and positive. Industries such as high technology and telecommunications are also growth sectors.
The ACT has well and truly established its financial credentials. Our record of responsible budgetary development and strong economic performance has been recognised by the international rating agency, Standard and Poors. It has assigned the Territory Government the highest credit rating for both short-term and long-term borrowings. This AAA credit rating which we share with New South Wales and Queensland not only makes our borrowings cheaper but also establishes the Territory in the eyes of potential investors as a reliable place in which to invest. Other public research bodies across the spectrum of political views have acclaimed the ACT's financial and social policies. We should be proud of our achievements as a Territory and we will strive to sustain our successes as a prudent and responsible government.
In February of this year, Madam Speaker, I joined with the Prime Minister, the Premiers and the Chief Minister of the Northern Territory to sign the new Financial Agreement between the Commonwealth, States and Territories. This marks our acceptance as full members of the Loan Council. This important milestone comes at a critical time in the financial development of the nation. As a result of poor financial performance in some States, the Loan Council has a greater role in scrutinising the financial well-being and financing strategies of all jurisdictions. The new Loan Council rules impose a greater accountability on all governments and the ACT is showing up extremely well under that scrutiny. The closer cooperation between governments includes more uniform presentation of budgets and financial reports. The documentation presented with this budget moves the ACT further in this direction. We are also well under way to move our government accounting and financial reporting onto an accrual basis in line with national standards. This will encourage improved financial management and accountability to the Assembly and the public.
Another significant innovation in national budgeting is the presentation of budgets before the commencement of the new financial year. As a result, program managers within government and all those people and organisations dependent on the Territory's budget can make their plans earlier and more effectively. This reform has required a significant
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