Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .

None . . Page.. 1496 ..

By 1993-94 this had been squandered away to a level of only $14m. Under the final Labor budget this deteriorated to a deficit of $32m. This represented a Consolidated Fund deficit of $82m that had to be funded from borrowings and reserves. Mr Speaker, I was shocked to learn that earlier this year our bank balance actually hit zero for the first time as reserves were reduced to virtually nothing.

When we formed a new government in March we were faced with demands from agencies for additional expenditure of $32m, in many cases arising from decisions made by Ministers, those opposite, just prior to the election. Had I not said no to these demands, the deficit would have been even greater. So, in April, I announced that we were deferring the proposed June budget. We did this so that we could produce a clear, detailed management plan for Canberra's future. As a result, we were able to use this extra time to stabilise and restrain expenditure in the final months of 1994-95 to an overall level of $4m below Labor's budget estimate. Within this improved result we also managed to clear a $3.3m debt arising from the VITAB fiasco that was crippling the viability of ACTTAB.

Perhaps the example that best sums up the attitude of the previous Government to funding its commitments was the problem of paying for furniture and fittings for the newly refurbished City Police Station. Somebody in this Assembly forgot to plug $452,000 into the budget so that our police officers could have something to sit on and work with. We did not. Added to this, the previous Government deferred a $6m bill for Comcare for 1994-95. Had that bill been paid when it was supposed to have been last year, there would have been no increase in the deficit in 1995-96.

Labor also embarked on a desperate industrial relations strategy in its last days in office. As a result, wage increases without productivity offsets for nurses and teachers have added a staggering $9m to this budget. This budget also picks up the tab for those unfunded, big ticket promises that amount to millions of dollars, such as the Canberra Clinical School, $1.2m, the bone marrow transplant program, $400,000, and assistance for complex clients with disabilities, $600,000. This Government will pay those bills.

Consolidated Fund receipts for 1994-95 were also $20m below the budget estimate. The major shortfalls occurred in Health, where $10m less than forecast was collected in cross-border payments by New South Wales.

Mr Connolly: But that will be paid, I presume.

MRS CARNELL: No, it will not be, Mr Connolly. Lease sales were $15m below estimates. To offset this, there was an increase of only $4m in taxation receipts. So, when my Government sat down to map out its three-year strategy, we were faced with a flat economy, local taxes and charges approaching State levels, a reduction of over $30m in Commonwealth funding, a Consolidated Fund deficit in the previous year of $82m, and more than $10m in unfunded commitments or bills deferred by the previous Government.

Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .