Page 3463 - Week 08 - Thursday, 23 August 2012
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I have some concerns therefore that such a low level of the funds in the TBA may well lead to this. Moreover, the fact that this low balance in the TBA continues into the outyears indicates that forecasts of funds flowing into the TBA is a concern. Will there be a slowing in revenues? Will commitments for capital works increase? Will expenditure on other matters be maintained or increased? And why is the TBA expected to remain so low for so long? The suggestion would be that we have been a little bit sanguine about this trend in the balance in the TBA.
The estimates committee had some concerns about the TBA. The committee recommended that if the TBA reaches zero, the Treasurer should immediately advise the Assembly at its next meeting and detail the measures being taken to address the situation. In a rare outcome, the government has actually agreed with this recommendation. It is certainly something that I will be keeping an eye on, and no doubt the Treasurer will be keeping an eye on, because these funds are very important to the future of the ACT.
MS HUNTER (Ginninderra—Parliamentary Leader, ACT Greens) (8.48): As Mr Smyth has mentioned, this issue did come up in the estimates committee and it was included in the estimates report—that is, if the TBA did get down to a zero balance, what would happen there? The Under Treasurer indicated that this would be a completely untoward and exceptional circumstance and it would be hard to see what these circumstances would be.
The committee did, as Mr Smyth said, recommend that if the balance reaches zero, the Treasurer should immediately advise the Assembly of the detail of the measures that were going to be taken to address the situation. As has just been reported by Mr Smyth, the government’s response said that they have agreed to that recommendation.
MR BARR (Molonglo—Deputy Chief Minister, Treasurer, Minister for Economic Development and Minister for Tourism, Sport and Recreation) (8.48): I will be brief. The government’s management of the TBA is one of our central functions and one in which I am sure everyone takes a keen interest, although until this year it has not necessarily been one of the most recognised or debated areas of the Treasury portfolio.
Management of the bank account encompasses active involvement with our portfolio of investment assets and debt liabilities. It seeks to ensure an appropriate rate of return on financial investments and the management of capital market functions through the management of the government’s borrowing portfolio to match the territory’s capital needs.
Importantly, it seeks to ensure competitive borrowing rates that are commensurate with our AAA credit rating. A key aspect in this area, of course, is the government’s responsible investment policy that we have released. This policy provides for good governance of our investment assets as well as ensuring an appropriate and sufficient rate of return on those assets. I commend this appropriation line to the Assembly.
Proposed expenditure agreed to.
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