Page 1411 - Week 06 - Tuesday, 5 June 2007
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
Mr Speaker, there are certain risks to this budget that relate specifically to the continuing drought and the probable introduction of stage 4 water restrictions. These risks relate to some of the funded initiatives, as well as to our possible expenditure needs and our revenue streams.
At this stage, it is too early to quantify and incorporate these risks into the budget in any meaningful way. But we know that they are potentially significant.
The best advice we have, based on the best modelling from the best scientists, is that the drought will break. Consequently, and in line with the approach taken by the Australian government in its own budget last month, my government has not incorporated drought impacts in the 2007-08 ACT budget.
But the risk is real. That is why, Mr Speaker, it is just as well that we have delivered a surplus, and a comfortable one. We may need it. Anyone who thinks otherwise should ask themselves if they would have preferred to see me stand here today and deliver the deficit we were forecasting this time last year. Which is better? A surplus, exposed to real risk, or a deficit, at risk of worsening? I know which one the people of Canberra would prefer to see.
The strength of our economy
Mr Speaker, the risk posed by a continuation of the drought aside, the ACT economy is strong and the outlook is positive.
There are high levels of public and private investment—greater than those achieved even during the construction heyday of the 1980s, when the building of our new national parliament dominated the local economy.
Real growth in private investment over the past five years has been higher than the growth over the previous 12 years, higher than at any time since the advent of self-government.
The ACT labour market is one of the strongest in the country. Job growth remains strong with participation at near record levels and unemployment close to record lows.
The ACT recorded the strongest growth in building approvals in the country in March 2007 and growth in retail turnover in the ACT outstripped the national average for the year to March 2007.
In 2006-07, state final demand is forecast to grow at four per cent. Employment growth is forecast at three per cent. Over the past year about 6,600 new jobs have been created. Since 2001-02, a total of 18,000 new jobs have been created, with almost 17,000 of those being full-time jobs.
The outlook is exceptionally positive.
Demand is expected to remain strong. The budget forecast for state final demand is an increase of four per cent in 2007-08, reflecting solid growth in Australian government
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .