Page 853 - Week 06 - Tuesday, 25 July 1989

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The Government has had some very hard issues to face. The forward estimates process indicated a shortfall of nearly $21m in the recurrent budget. As well, we know that the ACT must take action, over a three-year period, towards meeting the overfunding identified by the Grants Commission.

To avoid the need for massive and disruptive structural adjustments to "balance the books" in the future, we have decided to act now. We have not shirked that responsibility. We have avoided the easy option of simply lifting taxes across the board. Our election commitment that individual household taxation would not rise will be met. I am happy to note at this point the announcement that energy prices for both electricity and gas have been contained below the CPI.

The Government has carefully examined each spending and revenue raising area to seek maximum performance in service delivery. We believe the adjustment load has been fairly shared over all sectors of government activity. We have taken great care to ensure that those disadvantaged in our society will be shielded from further burden, and we have guaranteed that there will be a more equitable distribution of public resources.

We know the importance to community groups of the grants funded through the community development fund and the important work these groups do in developing a range of services that complement government activities. In that light, we will be maintaining our commitment to these groups by indexing the funds available.

We are taking initiatives to enhance services for the aged. Fifty new aged persons units will be provided by the Housing Trust this year. The whole array of concessions offered by government is being reviewed to see where improvements should be made. Extra funds have been allocated for health and community services in recognition of the increasing needs of the aged. And we want to cooperate with the Commonwealth to help the aged stay in their own homes wherever feasible.

We are acting to protect and enhance the unique ACT environment. Canberra must be maintained as a desirable place to live as well as a continuing attraction for visitors.

We will also act to protect the interests of ACT government employees. We are providing funds to meet wage movements in the public employment sectors. We will provide enhanced legislation and resources for occupational health and safety initiatives, as well as funds to encourage rehabilitation of injured ACT government workers.

Mr Speaker, I wish to turn now to the particulars of the ACT's recurrent budget. Members have seen the forward


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