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Legislative Assembly for the ACT: 1997 Week 4 Hansard (6 May) . . Page.. 999 ..

The Government is now forecasting a year-end general government sector operating loss of $201m, representing a $31m, or 13 per cent, improvement on the original budget estimate of $232m. Further evidence of this improved financial management is the news that expenditure on capital works in 1996-97 is predicted to be within one per cent of budget - significantly better than has been the case in the past. It is also worth noting that this year $55m of debt will be retired across the general government sector and public trading enterprises. All this has been achieved without the need for new borrowings and with asset sales of less than half of what was planned, following the Government's decision not to proceed with the sale and lease-back of the ACTION bus fleet.

Mr Speaker, this budget is about Canberra standing on its own two feet. We all know what the priorities are - creating jobs and reducing our reliance on the Commonwealth. In an economic climate where Commonwealth policies have caused a major economic downturn in Canberra, the ACT Government is working to achieve sustainable employment growth through business development. The budget I present today is a blueprint for change by tackling these two challenges without dramatically increasing the burden on taxpayers or our debt position. An operating loss of $211m is forecast for the general government sector in 1997-98, representing an improvement of $13m on the forward estimates. This includes an increase in unfunded superannuation liabilities of $147m, a major issue for which the Government is now developing options to address this concern. After removal of net abnormal and extraordinary items, expenses are predicted to increase over the previous year by only $18m, or just one per cent, which represents a reduction in real terms. For the second consecutive year no new borrowings are forecast for the general government sector.

I will now detail key initiatives in this budget. Mr Speaker, unemployment remains the single biggest issue facing Canberra and the Australian capital region. Our top priority has been, and will continue to be, our determination to stimulate business growth, new investment and, with it, new jobs. This budget tackles these challenges head-on. To do this and to show that we are serious, we have taken $4.5m out of funding for redundancies in the forward estimates and created a Jobs Fund that is committed to employment and business initiatives. It has been targeted directly at enabling people who would otherwise have been unemployed to get jobs, equipping others with the necessary skills to find employment and assisting the private sector in generating new job opportunities. Our aim is to create jobs now, and in the future, especially for our children.

What this represents, Mr Speaker, is the biggest single injection of funds into these critical areas since self-government. Mr Speaker, I repeat that. This represents the biggest single injection of funds into employment and business incentives since self-government. In 1997-98, more than $3m will be spent on programs aimed at providing jobs or training opportunities for young people, reflecting the priority that this Government places on combating youth unemployment. Mr Speaker, that is $3m on jobs for young people. Three of the initiatives I am announcing today are a direct response to the symposium on youth unemployment that was held in March. I thank all of those people who played a role in that. It shows that when the community, the business sector and the Government work together good ideas can come out of it.

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