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Legislative Assembly for the ACT: 2004 Week 05 Hansard (Tuesday, 4 May 2004) . . Page.. 1736 ..

We have managed, and I think managed very well. While there will no doubt be more challenges to come, the government feels strong and the economy has never been stronger than it is today.

Mr Speaker, many people will remember in the lead-up to the last election the predictions of economic doom should Labor be elected. Our opponents declared that Labor would “blow the bankcard” and that “black holes” would suddenly appear in the territory’s finances.

Mr Speaker, I recommend reference to the balance sheet and I recommend reference to the accumulated initiatives of this government. Rest assured that, in this election year, we will catalogue all the commitments we made three years ago and the record of delivery on those commitments.

Yes, we have invested in planning, but we have also taken action on very many fronts.

Mr Speaker, the 2004-05 budget will be in surplus. The general government sector operating result for 2004-05 is estimated to be $7.9 million. The general government sector operating result for 2003-04 is estimated to be $92.8 million.

We continue to achieve our fiscal strategy outlined before coming to government of an aggregate surplus over the four-year timeframe from 2002-03 to 2005-06. This budget delivers on this strategy, with an aggregate government surplus of $229.4 million.

Mr Speaker, the forward estimates do predict a deficit in 2005-06 of $25.9 million. This is in large part driven by changes in the timing of land sales and the method of delivery. The budget is forecast to return to surplus in 2006-07. This government has cemented its credentials in financial and economic management. We have proven the doomsayers completely wrong.

Employment and the economic outlook

Mr Speaker, I turn now to the economy. This budget has been framed in the expectation of a marginal slowdown in the rate of ACT economic growth this year, returning to solid rates of growth in 2004-05 and future years.

While our economy outperformed the national economy last year, our growth is expected to lag national growth for the next few years, reflecting the fact that the national economy benefits far more from improving agricultural conditions and increasing global demand for Australian exports.

Mr Speaker, the interest rate rises of late last year have taken effect. The rate of growth of household consumption in the ACT has slowed somewhat and the number of properties turned over in the ACT will fall.

The gap between the value of property turnover in the ACT and housing finance commitments has narrowed, a sign that interstate investor speculation in the property market is softening and activity in the residential market is returning to a more normal and sustainable level. Changes in our taxation regime may well stimulate further activity.

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