Page 3021 - Week 08 - Thursday, 25 June 2009
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
budget states the expenses are slated to grow at seven per cent in nominal terns, which we acknowledge is not modest in comparison to other states and territories. However, will there be an adequate allocation of funds to prevent the cutting of essential services to the community?
I note Mr Tony Harris’s comment that “it would be surprising if an annual budget of approximately $3.5 billion could not provide opportunities to improve value for taxpayers without changing policy”. On the basis of this advice, we would be expecting that the government can find savings while maintaining the current level of service delivery to the community.
This budget does not give a clear indication of where savings measures will be made in the coming years. We can see that reductions in ACT government spending are scheduled to occur in 2010-11 and that even larger cuts are required by the budget over the following two years; yet there are no indications at all as to how these savings will be made. The debt exit strategy appears to rely heavily upon the structures that lead to the deficit, with extreme uncertainty ahead of us.
The Greens understand that the government’s budget plan identifies the significant deficit resulting from external global impacts on revenue and, as a result, the need for stimulus spending. We also understand that they have identified savings targets and called for wage restraint. However, we are very concerned that there is a disproportionate reliance on the projected increase in growth made by the commonwealth for a higher economic return and, in turn, higher government revenues. Some have argued that the commonwealth projections of 4.5 per cent for its later outyears might be overly optimistic and, if this is the case, will the government’s plan for savings through efficiency dividends be adequate to return the budget to surplus? It is fitting that in difficult global economic circumstances we increase spending and support our regional economy, but the Greens share the concerns of community groups and the Canberra Business Council that some serious measures will need to be taken to claw back deficits in future years beyond 2010.
The Greens will be closely watching the result of the government’s consultation process to ensure that the plan to restore the territory to surplus does not come at the cost of essential services to the community. We will also be pushing for considerable progress to be made in developing a green economy in the ACT that will lead to jobs in the areas of training, research and development, as well as the establishment of green businesses and industries.
MR HANSON (Molonglo) (5.06): Madam Deputy Speaker, I am surprised to hear from the leader of the crossbench about what she thought of the budget in such an open and frank manner. I will get to that a little later, but there were some very illuminating comments about the concerns that she has with the budget, and I thank her for those comments.
I would like to take this opportunity, because I have not done so yet, to thank the estimates committee. I have read the whole report. I think it is an excellent report. It is very detailed. I think the recommendations are frank and honest. Obviously, all members of the committee worked very hard. I particularly commend the chair,
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .