Page 1143 - Week 07 - Tuesday, 22 August 1989
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
determined through the Premiers Conference rather than the normal Commonwealth budgetary process relating to its departments and authorities.
The Premiers Conference agreed to real reductions in Commonwealth funding for the States. The Commonwealth budget confirms this, with the growth in Commonwealth general purpose payments to the States of only 3.2 per cent in nominal terms. This will be adjusted through the year to reflect changes in the actual outcome of the consumer price index.
Whilst the ACT has been treated on the same basis as the States, Commonwealth appropriations to the ACT for 1989-90 also incorporate additional funding, in line with the real terms guarantee. The additional amount is to be paid into an ACT transitional funding trust account established by the Commonwealth. I have written to the Prime Minister seeking release of these funds for restructuring projects to assist the ACT to achieve parity with State-type funding arrangements.
The 1989 Premiers Conference also agreed to major changes to the Commonwealth-State housing agreement in which the ACT will participate. An amount of $7.1m, which was advanced by the Commonwealth to the ACT at a concessional interest rate in 1988-89, will be provided as a non-repayable grant as a specific purpose payment for housing in 1989-90.
The Commonwealth is also providing significantly increased funding in joint Commonwealth-ACT programs. These include increased funding from the Commonwealth for hospital grants, funds to combat AIDS, supported accommodation assistance, legal aid, water and sewerage assistance and other programs. The Commonwealth has also agreed to maintain its funding in real terms for national capital influences on local government programs in the ACT.
One Commonwealth budget measure about which the Government is concerned is the proposed sale of Gowrie Hostel. There has been no consultation over this proposal, either on future housing needs of its residents or on the sale of an asset declared as national land only a few months ago. The Government will be taking this up with the Commonwealth.
Nevertheless, the Commonwealth's budget will require little change to the ACT Government's draft budget. The Commonwealth has changed some of the parameters we have used in calculating our estimates, and this will have the effect of marginally increasing recurrent outlays. This will be largely offset by an increase in general purpose funding which has also resulted from the changed parameters. I have provided, for members' information, a reconciliation on Commonwealth funding. In essence, however, the ACT budget remains on track.
Mr Speaker, the Commonwealth budget came midway through the consultation phase of the ACT Government's budget. It is
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .