Page 3056 - Week 08 - Thursday, 25 June 2009
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This again reflects the consequences of the global economic slowdown and the time that any recovery will take to restore the revenue flows. I also note that there will be a strategic review of the territory banking account investment portfolio—I think that builds on some of what Ms Le Couteur was just speaking about—and that a value adding investment strategy will be implemented for the TBA. We look forward to considering these matters in due course. Of course, members need to know that during the hearings, when we were talking about the potential purchase of the Calvary hospital, the Treasurer and health minister said that the purchase would come from cash. This is the account that it will come from. Of course, there will need to be constant scrutiny that reserves remain available for the territory should they be required.
MS HUNTER (Ginninderra—Parliamentary Convenor, ACT Greens) (8.26): In estimates committee hearings there was considerable discussion about the territory banking account and the impact of the drop in federal funding. We are all well aware that overall there has been a reduction in returns for this financial year due to the lowering of Reserve Bank interest rates, the poor return on investments and the volatility of the credit markets. It is how we now address these challenges and closely monitor and respond to fluctuations in the financial markets that will determine if, as the Treasurer hopes, we improve financial returns.
The estimates committee has recommended the ACT government demonstrate appropriate responsibility and make the necessary fiscal policy decisions with respect to savings, revenue and associated matters. My concern, Mr Speaker, is that the government response to this call to action is basically that they say: “It is okay. We have a budget plan. It is appropriate for the current circumstances.” In the government’s response to the estimates committee they noted:
The Government has published a Budget Plan that incorporates a fiscally, economically and socially responsible approach to returning the Territory’s budget to surplus. The Plan is appropriate for the current circumstances.
In the budget plan we note that the government has committed to engaging the community in a conversation on the specific measures to achieve the targets under the plan. Also in the implementation approach section of the plan there are plans to establish an expenditure review and evaluation committee reporting to the budget committee of cabinet. Implementation plans from each agency and submissions from government employees will be considered as part of this process. It is important that as part of this budget plan the government engage in consultation with consumers and organisations that deliver services on the best ways of introducing measures and producing savings aimed at returning the budget to surplus.
It is also vital that this process start immediately and any new measures be considered by the government, and the Assembly as required, if we are to introduce changes aimed at improving our budget position in the 2010-11 budget. Of course, I asked a question on this today and I got a guarantee from the Treasurer that some of this work is already underway. A paper will be out there for consultation and it is going to be done in a timely way so that the outcome will be incorporated into the 2010-11 budget.
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