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Legislative Assembly for the ACT: 1999 Week 4 Hansard (20 April) . . Page.. 990 ..

MS CARNELL: Mr Speaker, the 1999 Premiers Conference was an historic occasion and not only because it produced an excellent result for the ACT, although it was very nice. It was almost certainly the last Premiers Conference of its type. It achieved rare agreement from all States and Territories, and the Commonwealth, on the most significant reform of Commonwealth-State financial relations in 50 years. And most importantly, unlike any other Premiers Conference, the ACT came away with a win. It is really the first time since self-government that that has been the case. Mr Speaker, we got a win on three counts: An increase in general revenue assistance in 1999-2000; a new financial deal from the Commonwealth that will provide us with access to a growth tax; and an increase in the compensation package from the Commonwealth for the transition to the new arrangements.

Mr Speaker, as foreshadowed in the Grants Commission's report on the general revenue grant relativity 1999, general revenue assistance to the ACT is forecast to increase by $57.5m, or 18.7 per cent, in 1999-2000. This is the greatest increase in percentage terms to any State or Territory. It is also far and away the best outcome for the ACT since self-government.

Mr Smyth: Hear, hear! Well done.

MS CARNELL: It was. Didn't Mick do a good job. Accepting the five-year relativity recommendations of the Commonwealth Grants Commission, the Federal Government's general revenue assistance to the ACT will rise in 1999-2000 to $365.1m. It is the first time in the 10 years of self-government, Mr Speaker, that a Chief Minister has successfully argued for such an increase in Commonwealth funding, after a decade of savage cuts.

Members would be only too well aware that since 1989 Commonwealth grants to the ACT have decreased by 49 per cent in real terms. That massive reduction in Commonwealth funding has been a major contributor to the ACT budget problems and, as I have already foreshadowed, the extra funding guaranteed to the ACT will be used to reduce the Territory's operating loss.

I place on record my appreciation for the enormous amount of high-quality work which our officials in OFM have put into this task over many years. Their dedication and professionalism are an example to us all of what can be achieved with thorough research, analysis and top rate presentation. The outcome, Mr Speaker, speaks for itself. Total Commonwealth payments to the ACT, including specific purpose payments, are forecast to increase by $87.1m, or 15.2 per cent.

Mr Speaker, on the eve of a new millennium, it is only appropriate that Commonwealth-State financial relationships be radically revamped. And revamped they were, with all Premiers and Chief Ministers signing the historic intergovernmental agreement which will revolutionise Commonwealth-State financial arrangements. The States and Territories have long sought access to a revenue base comprising a real growth tax. The Commonwealth tax package underpinning the intergovernmental agreement will deliver just that.

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