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Legislative Assembly for the ACT: 1998 Week 2 Hansard (19 May) . . Page.. 344 ..

MS CARNELL (continuing):

While I applaud the Commonwealth's fiscal achievements, I have questioned and will continue to question why the Commonwealth saw fit to slug States and Territories with so-called black hole payments when there is no longer a black hole to fill. The Federal Government's budget indicates that the ACT will be required to meet its State fiscal contribution, amounting to $10.2m in 1998-99. I contend that it is completely unreasonable and illogical for the Commonwealth to be taking this money from the ACT at a time when our budget is still in the red and our economy is still suffering from the continuing massive Commonwealth spending cuts. It is particularly galling when the Commonwealth Grants Commission has recommended in its 1998 update report an increase in funding for the Territory.

While $10m is little more than a rounding-off amount in the Commonwealth's budget, it represents the equivalent of the cost of educating 2,000 of our children or the treatment of 3,000 patients in our hospitals. Mr Speaker, for us $10m is a lot of money. It makes the already difficult task of preparing the ACT budget that much more difficult. I cannot accept this element of the budget, and I have written to the Prime Minister seeking a decision to have the State fiscal contribution liability written off once and for all.

On the positive side, the budget contained major capital works commitments that will provide an economic stimulus to Canberra, although somewhat less than last year due to the scaling down of the Russell redevelopment. These include:

The Russell Offices redevelopment: The budget provides $65m in 1998-99; $85m was provided in last year's budget.

The National Science and Technology Centre: $3.1m for capital works and exhibitions.

The National Capital Authority restoration program: This program was announced last year and was worth $5m per year for four years; the budget continues this program and extends it for a fifth year.

The National Film and Sound Archive: $15m is to be spent on redevelopment; this was announced last year.

Old Parliament House: $15.4m is to be spent over five years; this was announced last year and work commenced in 1997-98, although no figures have been available until now.

The National Museum of Australia: The budget provides $9.9m for the establishment and operation of the museum; $7m was provided in last year's budget.

Mr Speaker, from a jobs perspective, the net effect of these capital works will be to reduce direct employment associated with Commonwealth capital works by an estimated 150 jobs from last year's level, with a flow-on effect of another 90 jobs in other sectors.

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