Page 1412 - Week 04 - Wednesday, 24 March 2010
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MS GALLAGHER: You just interjected saying that we were cushioned, that we were protected from the global financial crisis. The issue that they are talking about there is the economy, not the ACT government budget that did see massive impacts from the global financial crisis in terms of our own investment, in terms of the GFC, in terms of interest rate reductions.
In the year before the global financial crisis, we had already planned for a surplus of around $85 million, and we committed to a $1 billion building the future program of investment in the territory’s infrastructure. The buffer we budgeted for was helpful in cushioning that financial shock—though admittedly not enough. But what I think the opposition are arguing for is that we should have larger surpluses, maybe in the order of $300 million to $400 million, just in case there is a once in a century shock of that type.
That is what Mr Smyth’s motion effectively argues for—that you sit on a surplus of that size just in case something happens, so you do not prioritise funding. You cannot have it both ways. If you are going to have a large surplus sitting there, you are obviously not meeting the demands of the community or you have raised taxes to the point that your revenue is far exceeding your expenditure, which I do not think is something that this community would want. You want a buffer of that order. In order to deliver that, you either raise taxes so that revenue exceeds expenditure or you cut your expenditure.
Mr Smyth: Or you diversify.
MS GALLAGHER: Here we go. I do not think you went to one issue of diversification, Mr Smyth—as usual. It is very easy for you to stand up here, as you do, and go, “She’s failed to diversify the economy.” I think you accused the Chief Minister of that when he was Treasurer. Indeed, I think you accused Ted Quinlan of that when he was the Treasurer. But you yourself never have an idea—and you never did—about what you would do if you were diversifying: if you were in charge and you were able to diversify the economy.
The budget plan that we introduced last year was right. In fact, apart from those opposite, I have not had one person come and say that that plan was wrong. I have had industry groups—indeed, the ACT Business Council as of last Monday—confirm their support for the seven-year recovery.
Mr Smyth: Did they?
MS GALLAGHER: Yes, they did, Mr Smyth, and I welcomed their support—as did the Chamber of Commerce and Industry and the Master Builders Association. All of them spoke of the strength of the ACT’s balance sheet and the fact that we could withstand a recovery of this length.
Indeed, the seven-year plan was introduced so that we did not have a sharp shock to our budget to recover in one year; we gave ourselves the capacity to see how the recovery across the world happened. In fact, it happened a lot earlier than Treasury
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