Page 3808 - Week 12 - Wednesday, 29 October 2014
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We have a young and dynamic population, the largest age demographics being zero to 14 and 25 to 34. The ACT government continues to invest in infrastructure to boost the long-term productivity of our economy, particularly in transport, health and education infrastructure. We are the only government in Australia reforming our tax system by phasing out our inefficient transaction taxes that slow economic growth and distort the proper allocation of resources, most particularly stamp duty and tax on insurance.
We have run 10 surplus budgets. We have created the fiscal capacity to respond to economic shocks, particularly through the period of the global financial crisis. We support the private sector in the territory to grow and create jobs through our business development strategy. We are fostering further growth and innovation in our economy through the establishment of the Canberra innovation network, the Invest Canberra facility, study Canberra, and of course the new city branding.
However, the impact of the commonwealth government’s cuts to employment and expenditure are having an impact on the territory economy, an impact far greater than the equivalent economic shocks experienced in other regions in Australia. I refer, for example, to Geelong, when the Ford factory closed, and in South Australia, when Holden and a number of other car manufacturers pulled out; the impacts there were around one per cent of total employment. In the ACT the commonwealth’s contraction has reduced employment by nearly three per cent. It is a big impact.
This economy needs to attract new investment and the government are pursuing that investment locally, nationally and internationally. And we have had great success. Just today, the Chief Minister and I were able to be at a particular event with IKEA, who are investing in our city with a fantastic new facility out at Majura Park.
We will continue our focus on supporting the economy, on supporting jobs, in response to what is happening at a federal level. Our budget is about 10 per cent of the territory economy; the commonwealth budget is 50 per cent. So if it is contracting, it is an enormous load to expect the territory government on its own to be able to respond—50 per cent versus less than 10 per cent.
Private sector investment is critical, and we have the infrastructure projects that are attracting that level of private sector interest, be that city to the lake, capital metro—
Mr Smyth: You cancelled city to the lake.
MR BARR: We have not cancelled city to the lake. Again, you are talking down investment opportunities. I have just come back from Singapore and Japan, where we have been talking up investment opportunities in city to the lake. In fact the private sector investment is going to be even more critical in the coming period whilst the government deals with the costs associated with the Mr Fluffy clean-up. But that will have a stimulus effect on the housing sector. Out of that disaster, and out of this crisis, will emerge some strength in our housing market. That is the reality of how economic statistics will measure an increase in activity in the housing market as a result of the buyback and demolition program, and the construction of new houses. That might be
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