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Legislative Assembly for the ACT: 1997 Week 2 Hansard (25 February) . . Page.. 387 ..
MRS LITTLEWOOD: Mr Speaker, my question is to the Chief Minister. Can the Chief Minister explain to the Assembly the outcome of the Commonwealth Grants Commission 1997 update of general revenue grants relativities and the implications for the ACT?
MRS CARNELL: Thank you very much for the question. Members would all be aware that a large proportion of ACT Government revenue comes from the Commonwealth Government in the form of general revenue assistance. Members would also be aware that since self-government in 1989 the Commonwealth has savagely cut funding to the ACT, with general revenue assistance down by 50 per cent in real terms. In short, the ACT has gone through a very steep transition to funding on the same basis as the States. Transitional funding was due to be phased out in 1997-98, which would have meant another sharp reduction in Commonwealth funding next financial year. Appeals to the Treasurer, Mr Peter Costello, and the Prime Minister, Mr Howard, met with the response that we should argue our case before the Grants Commission. That is what the Government did, and I am very pleased to be able to report to the Assembly that we have met with some success.
The Commonwealth Grants Commission 1997 relativities update released today includes a recommendation that transitional funding to the ACT should be extended by a further two years. If the Federal Government accepts the recommendation - and I will certainly be doing my utmost to ensure that both Mr Costello and Mr Howard keep their word on that - it will mean a $15m boost to the ACT over the next two years.
Mr Berry: Is it a core promise or is it one written in the party office that they did not agree to?
MRS CARNELL: Is it not interesting, Mr Speaker, that we have an extra $15m - - -
MR SPEAKER: No, it is not, actually. Constant interjections from that source are extremely boring.
MRS CARNELL: Here we have $15m, and Mr Berry wants to be negative about it. I really cannot understand it.
Mr Speaker, the last review of transitional funding arrangements was conducted four years ago, in 1993. In its report, released today, the Grants Commission notes:
... the passage of further time allows a clearer perspective of the task which faced the ACT at self-government and of the scope which successive governments have had to tackle that task.
It goes on to say that more time is needed for the ACT to adjust to funding on the same equal footing as the States. Mr Speaker, the Grants Commission recommendations, if accepted by the Federal Government at the Premiers Conference next month, will give the ACT a little breathing space. However, this Government will not be doing what
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