Page 852 - Week 06 - Tuesday, 25 July 1989

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unemployment in Australia, employment growth is below the national average, and the actual number of unemployed people in the ACT has increased compared with a fall Australia-wide. In addition, our rate of youth unemployment is significantly higher than the national rate.

Population growth in the ACT is higher than in almost all other States, but it has slowed considerably in the last couple of years. This slower rate of growth, in conjunction with high interest rates, has been a contributing factor to the decline in dwelling approvals experienced in the first three months of 1989. In the same period, retail sales also declined, earlier than the general Australian downturn.

Demographic changes within the ACT population are also working to increase the pressures on the budget. The population over 65 years of age is increasing rapidly each year, resulting in higher demands for specialised government services. Further, the size of the 15 to 25 years age group will be at an historically high level until 1992.

The Government recognises that the expansion of jobs is fundamental to Canberra's economic growth. The private sector has a vital role to play in broadening our industry base and in generating increased employment. Clearly we cannot continue to rely on a narrow public sector base if we are to build a strong and healthy economic environment in the ACT.

The impact of the tourism industry on the growth of the ACT economy has been particularly significant. The outlook remains good. This initial budget statement contains specific proposals to assist in promoting the ACT as a place to visit.

Mr Speaker, working within this economic environment, the Government has developed a strategy which we believe will provide major positive benefits for the ACT. It is the economic strategy on which we campaigned in the election. We intend to implement the vast majority of our election commitments in this, our first budget.

As I have already indicated, this strategy is based on encouraging sound economic development through policies which are firmly based on the principles of social justice. We will ensure the creation of valuable job opportunities in the ACT through the development and encouragement of industry. In particular, we will target the construction and related industries and the tourism industry. At the same time, we will begin to establish policies that will result in a fairer ACT community.

With this strategy, the Government will address both the shorter and longer term adjustments required to balance the ACT recurrent budget. We will also ensure that a high standard of government services is maintained.


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