Page 2148 - Week 08 - Tuesday, 28 August 2007
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I present the government’s response to the report of the Select Committee on Estimates 2007-08, and I thank the committee and its support staff for the report on the appropriation bill. Since the time of the budget the government has received additional revenues in relation to population estimates and continuing growth in the property market. Much has been said by those opposite about the improvement in the budget position and whether there was ever a need for reforms. The answer is yes.
Let us not forget the long-standing fiscal mismatch between the territory’s revenues and expenditures. Let us not forget the 31 per cent excess capacity in our schools. Let us not forget a territory superannuation cost trending towards the size of our health budget over the next decade, and let us not forget that we were living beyond our means. It would be imprudent to undo the structural adjustment on the basis of three months of strong activity in the housing market.
It would be irresponsible for this government to unwind the important work that has already been done on the basis of a spike in activity that may or may not be repeated in future years. The existence of our surplus and its size have been applauded by, among others, the Liberal senator for the ACT, Gary Humphries, who, on ABC 666, described it as good news. He went on to say that the underestimation about which his colleagues are so scathing might be regarded as good fiscal management and that so far as keeping a large surplus in the ACT is concerned, it is a sensible decision.
The better than expected surplus has also been described by celebrity auditor, Tony Harris, a man whose words the Liberals have treated in the past as holy writ, as not a bad surplus for a city of about 300,000 people. In June this year the government delivered a prudent budget—a budget that takes the territory forward by providing support for high priority areas of need and by continuing to exercise prudent fiscal restraint. Restraint is necessary to ensure the sustainability of our services to the community and to provide for the needs of our future generations.
As I have previously stated in this Assembly, the significant returns delivered to the community as part of the 2007-08 budget have only been made possible due to the essential and necessary reforms to the territory’s finances that we undertook in the 2006-07 budget. Our investments in health, education and our city’s infrastructure would not be possible without the continued impact of the efficiency measures and the reduced costs of administration introduced in 2006-07.
Of course, contrary to the constant refrain of those opposite, the vast bulk of the change to our fiscal position was brought about not through new fees or taxes but by those efficiencies—by government tightening its belt, doing more and doing better with the resources at its disposal. The 2007-08 budget recognises the need to maintain a buffer against fiscal shocks, whilst also providing capacity to respond to unforeseen circumstances.
The 2007-08 budget recognises the need to provide for future generations, to address pressures and risks that we are aware of now, such as rising health care costs and the ageing population. The 2007-08 budget does all this while continuing to provide for core service delivery commitments to the ACT community. The 2007-08 budget demonstrates responsible fiscal management.
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