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Legislative Assembly for the ACT: 1996 Week 2 Hansard (27 February) . . Page.. 328 ..

Ms McRae: Yes; wait until Mr Howard is in power and see what you say then.

MRS CARNELL: I certainly hope that you are right, Ms McRae; I am very happy with that comment. Yes, we will take that on - - -

Ms McRae: See what you say then, when he slashes and burns. Forget your Grants Commission then, Mrs Carnell.

MRS CARNELL: I am very happy that you believe that he will have an opportunity to do so. Thank you very much.

MR SPEAKER: Order! Would you all have patience. You have a few days to wait yet. Continue, Chief Minister.

MRS CARNELL: Members may have noted that reports in the media this morning indicated that the Grants Commission had recommended an increase in the financial assistance grant to the ACT. In fact, the increase in the financial assistance grant is more than offset by reductions in transitional allowances and special revenue assistance. The picture is further confused by the fact that the Grants Commission figures include hospital funding grants which traditionally have been separated from the general purpose funding figures published in the ACT budget.

The bottom line for the ACT is that general purpose funding to the ACT is still forecast to drop next financial year. This year the ACT received $291m in general purpose funding, and in our budget we estimated that that would drop to $277m in 1996-97. If the revised Grants Commission recommendations are followed - as Mr Kaine said, they always have been - the ACT grant will drop from $291m to $284.6m, or approximately $7.7m better than the forward estimate. However, even that apparent improvement is not quite as good as it sounds. Of that $7.7m, $6m is a back payment for the cost of treating New South Wales residents in our hospital system. In other words, it is a repayment for money that we have already spent.

Mr Speaker, the prospect of another cut in Commonwealth spending to the ACT should come as no surprise to members after the savage cutbacks over the last seven years by the Federal Labor Government. Since self-government, general purpose funding to the ACT has been cut in real terms by very close to half.

Mr Berry: Mr Speaker, I am not concerned that Mrs Carnell - - -

MR SPEAKER: Are you taking a point of order?

Mr Berry: Well, I am not concerned - - -

MR SPEAKER: Are you taking a point of order?

Mr Berry: A moment ago, Mr Speaker, you said that you would not be taking any references to the Federal election. I do not mind Mrs Carnell raising issues in relation to the Federal election, but it has to apply equally to all of us. That is the point I make. If you are going to let Mrs Carnell do it, it is going to be open slather.

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