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Legislative Assembly for the ACT: 1998 Week 6 Hansard (1 September) . . Page.. 1597 ..

MS CARNELL (continuing):

To sum up, Mr Speaker, Messrs Berry and Corbell's comments lack credibility. This Government was elected on a platform of sound financial management. It was elected on a commitment to reduce the Territory's operating loss.

Mr Berry: No, you were not elected. You were appointed. You were not elected.

MS CARNELL: What were we elected on - on the fact that you were Opposition Leader? Mr Speaker, to deliver on that commitment, some hard decisions were required and we made those decisions. This is a tough but fair budget. This is a responsible budget. It is also a strong budget. It reflects strong economic growth and it represents a sound financial management plan. The 1998-99 budget presents a budgeted operating loss of $139m in the general government sector. This is a $75m improvement on the forward estimates for 1998-99, published last year. This is almost a 60 per cent reduction from the projected $344m operating loss when we came to government. At the completion of the four-year plan in 2001-02, the budgeted operating loss is estimated to reduce to $72m.

Mr Speaker, expenditure constraint and modest revenue growth from a broadening of the revenue base are the key elements that will reduce the operating loss. I would be fascinated to know from those opposite what other approach there is. They have never told us.

Mr Speaker, the budget provides for a significant investment to deal with the massive unfunded superannuation liabilities that have been the basis of many discussions in this place. The budget and forward estimates provide for $200m towards meeting the cost of our accruing superannuation expense over the next four years. The budget also provides for $80m for a major information technology modernisation program. This, Mr Speaker, will enable us to lead Australia in delivering quality services - something that I would have thought those opposite would have supported. But no. With the reform program currently in place, Mr Speaker, we expect to reap the benefits and to further strengthen the Territory's financial position over the next four years.

Mr Speaker, I wish to express concern that a number of the statements in the report reflect confusion - in fact, a lack of understanding of the accrual accounting and output budgeting framework. This is the third budget under the accrual framework. Over this time, the Government has made every effort to inform the members through presentations, briefings, offers of help - everything else we can possibly imagine - but, unfortunately, those opposite rarely take us up on those offers, probably because they are simply not interested.

Mr Speaker, I take this opportunity to offer further briefings and presentations for members on the framework. It is essential, and I believe it is a responsibility of everybody in this place, to understand the legislation that we passed - that is, the Financial Management Act. We should not have pieces of legislation that obviously a number of people simply do not understand. Contrary to the suggestions in the report,

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