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Legislative Assembly for the ACT: 1997 Week 4 Hansard (8 May) . . Page.. 1152 ..

MR WHITECROSS (continuing):

where it was smaller than Tasmania's. If the Carnell Government were not to change its policies, unemployment would hit 9.2 per cent in 1997-98, and employment would drop by 0.5 per cent. The key message was that, without a change of policy, the ACT economy would get worse. The key message was that more of the same from Kate Carnell would be bad news for Canberra. For Canberrans, the bad news arrived on our doorstep on Tuesday. We have more of the same.

There are some in the ACT who would say this is not Kate Carnell's fault. Indeed, Kate Carnell is usually the first to say it. But the facts tell a different story. Howard Government policies have had an impact on the ACT, but the facts are that Liberal policies at both the Federal level and the Territory level have combined to cause such a contraction of our economy that it has now been in recession for the past three quarters.

Kate Carnell came to power with the intention of achieving a significant and permanent reduction in the size and role of government through cuts to government expenditure, contracting out, purchaser-provider arrangements, competitive tendering and, as a result, reductions in services. When she moved in upstairs, she took with her the Liberal Party manifesto of small government. If you get elected as a Liberal and introduce Liberal policies based on the same ideological narrow-mindedness as your colleagues, you cannot escape the guilt.

With her first budget, Kate Carnell put the brakes on the ACT economy. She cut the Public Service by 640 jobs, the total capital works budget was underspent by $28m, fees and charges went up and government expenditure went down. Unemployment in the ACT rose from 7 per cent in August 1995 to 8.2 per cent in April 1996. That was before your scapegoat, John Howard, even moved into Kirribilli House. That was the economy Kate Carnell set on a downward slide, just in time for John Howard to give it the big push down the rails into recession. It was a tandem team effort.

But, even after seeing how hard John Howard hit, Carnell continued on her merry way. She had her own small-government agenda to achieve, and the 1996-97 budget saw no deviation from the plan. Her last minute, cobbled-together jobs strategy last year turned out to be yet more of the Chief Minister's trademark repackaging, window dressing and hyperbole. Since the last budget we have seen three quarters of negative growth - a recession. Mrs Carnell, you were on trial with your co-accused, John Howard, and you have been found guilty.

This week Mrs Carnell produced the budget we were all fearing - a more of the same budget - not that anyone should be surprised. The Liberals' term in office has not been known for its motivation, its innovation or its strategic thinking.

Mrs Carnell: More money on education, more money on health, more jobs, more money on business, more money on police, no new borrowings in the general government sector.

Mr Berry: I raise a point of order, Mr Speaker. Mrs Carnell had her chance to make her speech on Tuesday. She should just let the Leader of the Opposition make his. She has had a few interjections. We are prepared to cop just a few, but I think she has had a - - -

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