Page 214 - Week 01 - Wednesday, 26 February 2014
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
It is the same tired old rhetoric from a tired old shadow treasurer, who possibly now holds the record in that portfolio of being the longest serving shadow treasurer in Australian history. He has been waiting a very long time, getting older, slower and more out of touch as time goes on.
Like all other budget documents before it, the 2013-14 budget review reflects this government’s commitment to the principles of responsible economic management by maintaining a flexible policy stance to suit changing economic circumstances. The government intends to continue to adopt this responsible approach as it formulates the 2014-15 territory budget.
In the context of the same lecture from Mr Smyth that we get every time, it is perhaps worth reminding him of figure 1 on page 7 of the budget review, which indicates that the government’s long history of considered and responsible decision-making gave rise to a substantial period of net operating surpluses. In fact, surpluses ran continuously from 2002 through to 2011-12, with the exception of a minor deficit in the 2008-09 fiscal year, the global financial crisis year. The government ran surpluses continuously through that period.
A decision to run a budget deficit is not one that the government takes lightly, but it is one that is appropriate for the current economic circumstances. We have chosen to support the local economy, in response to a range of economic factors that are beyond the ACT government’s control. The obvious question to pose back to the shadow treasurer is this: if we choose not to invest in our economy at this time, who else will?
I invite Mr Smyth to cast his mind back to the global financial crisis of 2008, the sharpest slowdown in the world economy since the Great Depression of the 1930s. After a decade-long period of surpluses, the government decided that a change in stance was necessary, and used targeted spending to support the local economy. That gave rise to a budget deficit in the 2008-09 fiscal year. After that period, the government delivered a number of surpluses—supported, it is worth acknowledging, by the fiscal policy position of the commonwealth government at that time to support states and territories in stimulating the economy through measures that I am sure members are familiar with in relation to education and social housing, amongst others.
The government is fully cognisant of the implications of temporary deficit budgets. But we do it from a fundamentally strong base. The ACT’s fiscal position is solid, and our balance sheet goes from strength to strength. Again, it is worth reminding the shadow treasurer that there are only two Australian jurisdictions that have an AAA credit rating with a stable outlook: the ACT and Victoria. We also have a considerable capital works program that extends into the future and that is providing job and investment certainty. We have one of the lowest levels of net financial liabilities and one of the lowest levels of net debt of all Australian jurisdictions.
As a response to global financial crisis, the government introduced a budget plan in 2009-10. Each subsequent budget has updated this plan as necessary to suit the changing economic circumstances. When warranted, the government has run a deficit in order to allow the flexibility to maintain service levels, address the growth in demand in certain areas and, most importantly, invest in the productive capacity of this economy, invest in our people and invest in our community.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video