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Legislative Assembly for the ACT: 1997 Week 13 Hansard (4 December) . . Page.. 4594 ..

MRS CARNELL (continuing):

In conclusion, the financial achievements of 1996-97 reported in the consolidated financial statements have justified the ACT's decision to identify and manage for the first time the services delivered by all agencies and their full costs. The reforms have enabled government to focus on the real benefits and costs of services and to manage its true service delivery and financial performance with better informed decisions. The tabled statements show the financial management achievements of the Territory for 1996-97, as well as the financial challenges which remain and which we are now undeniably and responsibly addressing. The continued responsible and prudent management of the Territory's finance and economy positions us well to continue our record of improved financial performance this financial year and beyond. This is particularly important as the Territory completes its transition to State-like funding arrangements with the Commonwealth and continues its transition to a robust, private sector economy which thrives without the total reliance on Commonwealth public spending that we have seen in the past.

I would like to finish by again congratulating all members of the ACT Public Service, particularly those involved in the financial areas and OFM, for a job extremely well done. To have brought down a consolidated operating loss of $153m, down from $344m the year before last, is an amazing effort. I have to say that it would not have happened without a lot of very dedicated public servants. I move:

That the Assembly takes note of the papers.

MR WHITECROSS (3.44): I thank the Chief Minister and Treasurer for bringing this statement in at this time. I think it is very important that the Assembly get a copy of the audited statements. Especially with the end of the sittings being so near, it is very important that we have this information before us to look at. The audited statement indicates an operating loss before abnormal items of $100m. That is a significant improvement on the operating loss before abnormal items of $253m the previous year, and that is obviously an improvement which members in this place would welcome. It is interesting to note that a significant proportion of this improvement has been achieved by the receipt of significantly higher revenue than was projected in the 1996-97 budget. It is also interesting to note that when the 1997-98 budget was brought down it was projected that revenues would fall again. While some questions were asked in the Estimates Committee earlier this year about the validity of the assertions that revenue was going to fall, we were assured that, in fact, it was and that we would be mistaken to suggest that revenue was going to hold up so well. It is interesting to see in the "Consolidated Financial Management Report" for the month ended 30 September we are now being told that stamp duty for marketable securities is well above budget, even though they halved in the 1997-98 budget the amount they had received in 1996-97.

Mr Speaker, there does appear to be a significant improvement in revenues, compared to the case that was put to this Assembly in the budget. I suppose that is a somewhat concerning matter, in that, in voting on the budget in this place, members have to rely on the information that is presented to us. While, in the Estimates Committee, we sought to test the validity of the revenue assumptions that were set down, it would now appear that those revenue assumptions were on the conservative side. I am heartened by Mrs Carnell's statement, if I understood her correctly - and I encourage Mrs Carnell to correct me if I have misunderstood what she said - that she expected the operating result for the 1997-98 year to be even better than the $100m operating result for 1996-97.

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