Page 609 - Week 05 - Tuesday, 4 July 1989

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the background of considerable attention to economic conditions in Australia, and I ask the Minister specifically: What is the condition of business activity in the ACT? Is it in a state of growth or otherwise?

MR WHALAN: The ACT economy is currently subject to three major influences which are leading to a significant slowdown in both demand and employment growth. The first of these is the fact that, through the Commonwealth exercising restraint on its recurrent expenditure and in particular on staff costs, it has led to a no-growth situation in Commonwealth public service numbers in the ACT. This is reflected in the fact that, in the last 12 months, of all the new jobs that have been created not one of those new jobs has been created in the public service.

Secondly, there have been reductions from an historically high peak in the Commonwealth capital works expenditure in the ACT, and that is most dramatically demonstrated by the completion of the new and permanent Parliament House. Finally, there has been a significant reduction in our expenditure, as demonstrated through statistical surveys, resulting from the Commonwealth's tight monetary policy.

However, despite these influences, the ACT growth is still strong compared with growth in other parts of Australia, and continued growth is occurring in areas of retailing, recreation and tourism related activities. The Government is taking steps to ensure that tourism maintains a high priority as one of Canberra's major growth industries. We have indicated to the Assembly on a number of occasions the initiatives that we have taken in this area.

Related to that tourism growth is, of course, the need to proceed fairly quickly with the section 19 project, from the employment point of view during the construction phase and also for the employment opportunities that it will create once the project is completed.

Other industries with a strong potential for growth include advanced technology, the printing and allied industries, and finance and business services. Studies are being undertaken into a number of these industries in order to target those areas with the strongest potential for growth.

Workers Compensation

MRS NOLAN: My question is directed to the Minister for Industry, Employment and Education. Given that the motel industry, being substantially accommodation orientated, has significantly fewer workers compensation claims than the hotel industry, will this Government take similar action to the New South Wales Government and review and reduce the workers compensation premium paid by motels in the ACT?


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