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Legislative Assembly for the ACT: 1998 Week 3 Hansard (27 May) . . Page.. 628 ..

MR OSBORNE (continuing):

I would probably have said something a little bit harsher, Mr Speaker, but I will not. He went on to say that due to an ageing population the actual level of superannuation payments was likely to be higher than predicted and, unless the superannuation liabilities are funded as they are incurred, the burden will be passed on to future generations - something that I have been arguing for a number of years, Mr Speaker. Beyond the effect a $1.7 billion liability would have on the Territory's credit rating - and it would have an effect - the emerging costs pose an enormous problem.

The Chief Minister is inclined to say, "Doing nothing is not an option" and, on this occasion, I am inclined to agree with her. Members who have been here for some years will remember that, as I said, I have been carrying on about the unfunded superannuation debt for years. I know that it is not a particular sexy issue, but I firmly believe that we have to do something to fund our superannuation liability. The report tabled by the Government on Tuesday is a start and it lays out our options. The Government has also responded sensibly by moving to reduce the future costs of superannuation by changing superannuation plans, but that is not enough. It does not address our existing problem and it will not stop us from reaching the $1.7 billion in superannuation liability over the next 15 years. We have to find a way to fund the debt. We need to do something now, to map out a plan now, to respond and respond with more than, "Do not worry about it; it is not a problem". Other States and Territories clearly seem to think it is a problem. The Auditor-General clearly sees it as one, Mr Speaker.

Queensland has a fully-funded system and New South Wales and other States are headed in that direction. All we need to do now is map out a plan to fund our debt and to ensure that our children do not end up inheriting our problems because we prefer to stick our heads in the sand and avoid hard decisions on things such as the superannuation liability and the operating loss. That is why, Mr Speaker, I have moved this motion today. I want to see what ideas there are for meeting this challenge and I want to get a clear idea from the Government on what it intends to do about the operating loss and also the superannuation liability.

I especially look forward to some positive contribution from the alternative government. We heard in their maiden speeches that they were not going to oppose for the sake of opposing; they were going to put up ideas. I certainly hope that they will take part in today's debate, be very positive and, without laying their plans on the table, at least offer some alternatives. This is an issue, Mr Speaker, that I believe is crucial not only to us but also to our children. I look forward to some input from other members.

MR SMYTH (Minister for Urban Services) (12.09): I thank Mr Osborne for moving this motion because I think that the release yesterday of the report on the unfunded superannuation liability for the ACT clearly shows that, unless we take in hand the debt that this Territory is incurring, we will end up leaving a very sad legacy for those that follow us.

Mr Speaker, the first step towards addressing the Territory's operating loss, I think, is the clear identification of that loss. It is worth reminding this Assembly that it was this Government - the first Carnell Liberal Government - through their financial reforms, that revealed the true state of the ACT finances. And it is only when you know exactly what you owe that you can reasonably start working towards addressing those problems.

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