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Legislative Assembly for the ACT: 1999 Week 5 Hansard (4 May) . . Page.. 1312 ..

MS CARNELL (continuing):

Mr Speaker, a much fairer deal from the Commonwealth is the second factor behind our improved budget position. In our financial relations with the Commonwealth we have achieved what no other ACT government has been able to do since 1989 when we achieved self-government. Following 10 years of reductions in Federal payments which had amounted to almost 50 per cent in real terms, this Government has successfully reversed that trend. In 1999-2000 total Commonwealth funding to the Territory, including specific purpose payments, is forecast to increase by $85m, or a record 14 per cent. General purpose funding increases by 18 per cent, or $57.5m. It is unquestionably the best outcome since self-government and vindicates this Government's decision to go all out in putting its case to the Commonwealth Grants Commission for a greater share of Commonwealth payments. As these budget papers show, we have responsibly directed this additional funding to reducing the operating loss and providing additional resources in areas of critical need.

Finally, the ACT, like other States and the Northern Territory, is on the verge of entering into a new financial arrangement with the Commonwealth that will give each jurisdiction access to a growing financial pool. Subject to the passage of legislation currently before the Federal Parliament, the ACT will have access to revenue from a goods and services tax to be introduced from 1 July next year. In return, the Territory will progressively abolish nine of its own taxes. Thanks to this historic reform of Commonwealth-State financial relations, the ACT's future budget position has been dramatically strengthened, although GST revenue has not been factored into the forward estimates as yet.

Mr Speaker, spending restraint is the third critical element shaping the improved budget outlook. Total expenses are forecast to increase by just 3 per cent, or less than one per cent in real terms, during 1999-2000. More importantly, this budget represents the next stage of realising our vision for Canberra as a clever, caring community. It targets additional resources and support for Canberra's school and college students, for Canberrans needing medical treatment, for Canberrans with disabilities and for increased protection of Canberra children who may be at risk.

This budget also recognises the need for greater effort by the Government to improve our corrective services, our public housing and our city's general appearance. It will enable us to modernise our information technology systems so that we can deliver services to Canberrans quickly, conveniently, accurately and more efficiently. At the same time we are laying the foundations for a genuine budget surplus to do what no other ACT government has done - put our finances into the black using the most transparent of all public sector accounting measures. While it is true that the elimination of the ACT's operating loss has been high on our agenda, the need for improved social and community outcomes has not been overlooked. Good financial management has delivered the social capital that Canberrans want. The responsible approach that we have taken is the only way that these outcomes have been and can continue to be achieved.

Let me turn now to the major initiatives contained in this budget. Over the last four years this Government has invested heavily in the provision of new and expanded services and facilities for health and community care. This budget reinforces this commitment by providing additional funds to help people needing elective surgery, people with

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