Page 30 - Week 01 - Tuesday, 7 April 1992
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All I can say, Madam Speaker, is that in addressing that gap this Government will continue to operate as we have always done on budgetary matters - that is, in consultation with the community. We will base our budget on social justice principles and we will again be at pains to deliver a sound and balanced budget that does not rely on borrowings. In fact, if you remember, in our last budget there were no new borrowings. It is a budget designed to protect the community, to protect their needs, to implement our own social justice agenda, and, of course, to ensure the continuing sound basis of the ACT's budgetary situation.
MR KAINE: I have a supplementary question, Madam Speaker. Given that the Chief Minister has acknowledged that there is a gap and, secondly, that she has said that she will not borrow, will she then consult with the community on what new taxes she intends to impose, and has she identified the targets for those new taxes?
MS FOLLETT: Mr Kaine has asked a purely hypothetical supplementary question, Madam Speaker. I will be consulting with the community on all matters to do with the budget, as I have in my past two budgets. If Mr Kaine wants to look at the relative taxing position of my two governments and his one government, he will see that it was his own period in government which saw the large increase in taxes and, incidentally, a relatively large increase in borrowings as well.
Borrowings
MR LAMONT: I address a question to the Treasurer. I refer to the Commonwealth's statement that as part of the self-government transition process it would no longer guarantee borrowings undertaken by the ACT. What action has the Government taken to assure the community that they can have confidence in the Government's ability to raise future funds?
MS FOLLETT: I congratulate the member on his inaugural question; it is a very fine one indeed. Mr Lamont is quite right in saying that the Commonwealth has stated that it will no longer guarantee the ACT's debts as part of our transition to full statehood and our transition to self-government, and that that was to apply from 1 July 1991.
Madam Speaker, in January of this year the Government sought from an international rating agency, Standard and Poors/Australian Ratings, an assessment of our short and long term ratings for the ACT. I am very pleased indeed to advise the Assembly that Standard and Poors/Australian Ratings have today announced that they have assigned to the ACT a "AA+ with a positive outlook" rating for the long term, and for the short term we have been assigned a rating of A1+, which is the highest rating available.
I believe that these ratings show the agency's confidence in the ACT's ability to meet its debt repayment obligations, and it means that our local community, the national community and, indeed, the international community can have confidence in the financial policies of this Government. That rating will enhance the Territory's strong reputation in the financial marketplace. It will ensure that the ACT remains attractive to prospective investors.
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