Page 4424 - Week 10 - Thursday, 23 September 2010
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which is good—
because the increases in the valuation of non-financial assets and amounts spent on capital works have outweighed a significant increase in the estimated unfunded superannuation liability and borrowings …
The Territory is expected to retain a sufficient capacity to meet its short-term obligations. However, its capacity to do so is expected to diminish significantly over the period covered by the budget forward estimates …
The Territory’s long-term financial position has weakened significantly during 2008-09 and was considerably weaker than anticipated in the budget due mainly to the substantial growth in the unfunded superannuation liability.
Over the period of the budget forward estimates, the Territory’s long-term financial position is expected to continue to weaken significantly. The main contributing factors are the growing unfunded superannuation liability and planned increases in borrowings to fund major capitals work projects including ACTEW water projects.
It was interesting that Mr Corbell yesterday said, “It does not matter what the price of a new dam is; whatever it costs, we will build it.” Perhaps Mr Corbell should look at what the auditor had to say about that and the effect.
It is expected the budget will return to surplus in 2013-14 but it is the territory’s growing underfunded superannuation liability in that budget that is of concern. And at paragraph 3.9 the committee states:
The Committee understands that the liability at June 2010 was estimated to be approximately 52 per cent funded, below the 30 June 2008 level of 65 per cent.
That is of serious concern. What we have said in recommendation 9 is:
The Committee recommends that the Treasurer provide the Committee with an updated analysis of the unfunded superannuation liability, including modelling incorporating a range of discount rates, to demonstrate the potential changes that are possible in this liability, in sufficient time for the 2009-10 annual report public hearings.
We have just referred the annual reports to various committees.
It is a good report. I thank the other members, the chair and Mr Hargreaves, and I thank the secretariat for assisting the committee in putting the report together.
Question resolved in the affirmative.
Report 12
MS LE COUTEUR (Molonglo) (11.44): I present the following report:
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