Page 2610 - Week 07 - Tuesday, 5 June 2012

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MR SPEAKER: I recall last year’s budget, both the speech and the speech-in-reply, and I think there was heckling on both sides. Members, could we just conduct ourselves for this one day of the year, and again on Thursday, by attempting to hear these very important speeches and listening to them respectfully on both sides. Minister Barr, you have the floor to continue.

MR BARR: Labor will pursue reform—even in challenging economic times.

And Labor will create the right conditions for our private sector to grow, innovate and create jobs.

These are the values enshrined in this Budget.

Economic outlook in the ACT and Australia

Let me turn to the economic conditions facing the ACT.

GSP growth has been relatively strong in 2011-12, at around 2½ per cent.

As a result of the planned Commonwealth Government fiscal consolidation, growth is expected to moderate to around 2 per cent in 2012-13.

We expect relatively flat final demand growth as measured by State Final Demand, of around ½ per cent in 2012-13.

Unemployment is likely to rise, but remain low compared to the national average.

All the Australian jurisdictions not in the midst of a mining boom are facing challenging economic circumstances.

Indeed, the challenge for Australia more broadly is stark.

The mining sector investment pipeline is booming, drawing in capital and labour to the west and north of the country.

This, along with the high Australian dollar, has posed a significant challenge to sectors such as manufacturing, tourism, tertiary education and retail.

Fiscal outlook

In 2009-10, in the aftermath of one of the most challenging global economic situations since the Great Depression, the Government set out a responsible plan to return the ACT Budget to surplus by 2015-16.

When we subsequently advanced this timeframe and proposed a return to surplus in 2013-14, we did so based on the Territory’s economy performing better than envisaged, due to the size of the Commonwealth stimulus and our own capital program.


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