Page 1469 - Week 05 - Wednesday, 14 May 2014
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decline due to the softening of that market. Land tax revenues are also a function of property valuations.
Slowing population growth in the territory will have corresponding implications on demand for housing and property, which will, of course, flow through into conveyance duties, will impact upon land sales revenue and also impact upon the territory’s share of the goods and services tax. So all of these factors combined—the broader impacts on our economy, together with the withdrawal of commonwealth funding partnerships with the states and territories—will have a significant impact upon the territory budget.
MADAM SPEAKER: Supplementary question, Dr Bourke.
DR BOURKE: Treasurer, how do economic conditions affect expenditure lines?
MR BARR: Large public sector job cuts and significant savings by the commonwealth are undoubtedly going to damage consumer and business confidence in the territory economy. This is in addition to the human cost caused by Canberrans being out of work. This is likely to lead to an increase in demand for ACT government services. For example, more people being out of work means more people being eligible for the range of concessions that the territory government offers. Reductions in commonwealth payments associated with health, education and disability services will increase pressure on the delivery of these services in the territory. The most obvious case that has been highlighted around the country is the pressure on our emergency departments from the co-payment arrangements. This, of course, will have the greatest impact on those most in need.
The territory government will need to respond to these challenges by increasing its investment in capital works to create local jobs and to stimulate economic activity. We will do what we can to buffer the effects of the commonwealth budget. We are not going to reduce our public sector workforce, which means that the ACT government will be doing some of the heavy lifting and keeping people in jobs. But, like all other jurisdictions, we are unlikely to be able to step into the large gap that we now see from the commonwealth ceasing funding and engagement in a large number of services.
MADAM SPEAKER: A supplementary question, Mr Gentleman.
MR GENTLEMAN: Minister, how will the forthcoming ACT government budget mitigate the impact of the federal budget?
MADAM SPEAKER: You will have to be very careful in answering that, Mr Barr, that you do not announce policy.
MR BARR: Indeed. We will seek to mitigate to the fullest extent that we can, but we recognise the limitations of the territory budget and our capacity to fill a hole as large as the one that the commonwealth have created. What we will continue to do, though, is to support this community, to make strategic investments both in infrastructure and in our key priority areas—health, education, community services, disability services
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