Page 1203 - Week 04 - Thursday, 17 March 2005
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
The pertinent points that Mr Mulcahy and Mr Smyth made about profligate rates of spending and the reliance on GST revenue and the property boom, about the Auditor-General’s warnings concerning the government’s mismanagement of territory finances and about the Treasurer’s lack of ideas were well made. I am going to take a slightly different focus in my speech. I would just like to talk briefly about one of the things that the Treasurer raised.
The Treasurer pointed out that he did not trust the costings the Liberal Party had put forward before the last election and criticised us for releasing them too late. One of my staffers drew my attention to Labor’s plan for good government for all. It talks about Labor’s commitment in 2001 to develop a charter of budget honesty. We are still waiting for this charter of budget honesty.
We do know, Mr Deputy Speaker, where the charter of budget honesty came from. It came from the federal sphere because of the $96 billion budget black hole that was inherited by the coalition government in 1996—the $96 billion budget black hole. We would call upon the government to comply with its election commitment and implement the charter.
I would like now to move on to some of the issues that I see as contributing to the state of the current ACT economy, particularly in the area of planning, in particular as it relates to extensions, building approvals, renovations and investment. The renovation market for the ACT fell by some 40 per cent in the December quarter of 2004—a drop of concern. The HIA have told us why they think that is. They said in a media release of 8 March that the fall pre-dated the 25 basis point interest rate adjustment. However, they went on to say:
Of deeper concern is the continued rise in building costs brought about by skill shortages and increasing compliance costs.
In new housing activity there was a drop in the volume of work performed of four per cent in September 2004. The forward indicators for new housing activity have also been volatile, with dwelling approvals falling from an annual rate of 2,490 in September 2003 to 1,550 at the same time in 2004.
The figures are clearly showing a downturn in the housing market. We have heard Mr Quinlan and Mr Stanhope say in the last couple of weeks how this downturn is now going to lead to declining numbers in the ACT economy. Mr Quinlan has said that revenue from stamp duty, land sales and the like is going to fall. But let us put this in context. The levels of revenue from these areas may well fall. Change of use charges, if the building industry slows, will probably be much less than they have been recently. But this government has been riding the crest of a federally inspired building boom for the last three years and reaping the benefits of increased consumer confidence, increased property sales and increased building renovation levels.
Every year at budget time Mr Quinlan has trotted up and said, “We thought we were going to receive $X from stamp duty or from land tax.” But, with great surprise and much fanfare about the wonderful economic management of this government, he adds, “We have received a greater than expected amount.” So our ACT government, whilst
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .