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Legislative Assembly for the ACT: 1996 Week 7 Hansard (18 June) . . Page.. 1831 ..

MRS CARNELL (continuing):

The major decision agreed at the Australian Loan Council related to the acceptance of each jurisdiction's nominated 1996-97 Loan Council allocation. Such acceptance is subject to Loan Council consideration of the implications for macro-economic policy of the aggregate of all jurisdictions' LCAs and Loan Council judgments about the acceptability and sustainability of the fiscal strategy implicit in the jurisdictions' nominated LCAs. The ACT's allocation was agreed at $90m and remains at a sustainable level.

In summary, my interstate colleagues and I successfully rejected an ongoing and growing tax impost on States and Territories, in return for short-term contributions to assist the Federal Government to overcome the budgetary problems left by the previous Labor administration. The bottom line for the ACT is that we will receive less in Commonwealth grants than this year and less than forecast in our forward estimates. General revenue assistance in 1996-97 will be $9.1m less than this year - a reduction of 5.7 per cent in real terms. This is $4.6m, or 1.7 per cent, above the forward estimate for 1996-97 but is subject to an agreed forestry repayment. In addition, we must contribute $10.4m to the Commonwealth, plus sales tax of around $700,000, and we face a reduction in specific purpose payments of in the order of $5m a year. I am still awaiting confirmation from the Commonwealth of the specific purpose payments programs to be reviewed.

I am examining ways to address this unexpected reduction, and I will be looking to New South Wales and the Commonwealth to adequately compensate the Territory for services they receive. I have already alerted the Federal Minister for Territories to my intention to pursue the implementation of an ACT Government parking regime on Commonwealth property in the Territory. Having said this, I must also examine actions taken by other States and Territories, particularly New South Wales, to redress the outcome of the conference.

Following the Premiers Conference, the Council of Australian Governments had a number of important and complex matters to consider. These included gun control, housing reform, health and community services, treaties, gas reform, the Trans-Tasman Mutual Recognition Arrangement and Northern Territory statehood. I am pleased to announce that the meeting of heads of government endorsed in full the resolutions on gun control made by the Police Ministers on 10 May 1996. I was particularly pleased to be able to provide the council with a progress report on implementation of the reforms in the ACT. Mr Speaker, we are the only jurisdiction to have enacted revised gun laws so far.

Leaders also reaffirmed their commitment to reforms in public housing. These reforms include a fundamental shift in the roles and responsibilities in the provision of housing assistance involving the Commonwealth accepting responsibility for income support and housing affordability and the States and Territories taking responsibility for the management and delivery of public housing services. The Commonwealth has undertaken to develop a detailed reform package for further consideration by States and Territories. This package will be based on a number of agreed objectives and principles. A progress report on the housing reforms will be provided to the next COAG meeting.

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