Page 82 - Week 01 - Tuesday, 14 February 2012

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commonwealth. It is important to note that the federal government has committed to constraining federal spending without a job slashing frenzy. On the other hand, the federal Liberal Party has stated many times that it will slash 12,000 jobs from the federal public service.

Mr Smyth interjecting—

MR ASSISTANT SPEAKER (Mr Hargreaves): Order, Mr Smyth.

MR BARR: What is more, Mr Assistant Speaker, on ABC television just last Monday night on the Q&A show the shadow treasurer, Joe Hockey, indicated, in fact, that 12,000 jobs was just the starting point for an Abbott-Hockey government.

I would like to outline, in detail, the main fiscal changes in the territory since the budget. Around $100 million of the $145 million change in the net operating balance relates to revenues, with the remainder due to changes in expenses. The variations to the budget estimates are predominantly technically driven, with the exception of the policy decision of government in relation to funding the additional costs associated with enterprise bargaining outcomes.

The changes since the budget are as follows. Our GST revenue estimates have been revised downwards as a result of the decrease in the national GST pool, equating to a $62 million loss in GST revenue grants to the territory across the budget and forward estimates, including $12 million in this fiscal year. Superannuation expenses are up more than $22 million, due to the increased value of the liability following a change in bond rate assumptions of six per cent and a bond rate at 30 June 2011 of 5.28 per cent. Reduced earnings on investments from depressed global financial markets also affects investment balances across the forward estimates.

Overall, revenues associated with property market activity are forecast to decline, due to lower activity in the first half of the financial year, which is likely to be a consequence of continuing consumer caution and uncertainty about the global economic outlook. In particular, land release revenues are down more than $39 million due to restricted land supply in a number of areas. However, it is expected that the anticipated returns will be maintained over the four-year budget cycle. And conveyancing revenue is down more than $20 million due to lower than average prices in the residential sector and reduced activity in commercial sectors.

Mr Hanson interjecting—

MR ASSISTANT SPEAKER: Order, Mr Hanson. You will join Mr Smyth if this keeps up.

MR BARR: A $33 million reduction in dividends and income tax equivalent returns from Actew has been forecast, mainly due to reduced water usage. Actual water consumption in the first half of 2011-12 was the second lowest level recorded in the last five years. The expectation is for water consumption in the second half of the year to be similar to previous levels due to a cool and wet spring and early summer.


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