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Legislative Assembly for the ACT: 1999 Week 5 Hansard (4 May) . . Page.. 1311 ..

MS CARNELL (continuing):

century, Canberra will continue to be Australia's best place to live, work and raise a family. Last year we mapped out a four-year budget strategy centred on the theme of creating a clever and caring community. Our goals have not changed. Indeed, strong financial management makes those goals achievable. This budget also marks a further step in the standards of transparency in the information that is provided to Canberrans. The papers that I present today spell out clearly where savings will need to be made, where taxes have been increased, and where reductions in staffing will occur. Mr Speaker, we certainly have gone the full monty, probably without the hat.

I am very proud to announce today that this Government's budget strategy will result in the elimination of the ACT's operating loss within two years. The 1999-2000 budget provides for a further dramatic reduction in the general government sector operating loss to $63m. This represents an $86m, or 58 per cent, improvement on the $149m operating loss forecast for the current financial year. Less than 12 months ago, we promised to eliminate the operating loss by 2005. Today we are on course to deliver on that promise, four years ahead of schedule. Indeed, by 2003-04 our strategy will see the Territory recording a forecast general government sector surplus of $67m. Our aim is to achieve a sustainable operating surplus that is sufficient to fully fund public sector capital works without the need for borrowings. Under this Government, we are on track to do just that and we will do so while continuing to fund important areas like health and education at levels that are above the national average, to ensure that these high-quality services remain accessible to all Canberrans.

Mr Speaker, when we first came to office four years ago, we were confronted with the legacy of a $344m operating loss left by Labor. Most observers felt that it was an impossible task to even think of trying to turn that into a surplus, given the realities confronting minority government in the ACT. We have done the impossible and better, turning a $344m operating loss into a surplus within six years without slashing and burning. Mr Speaker, this Government does not view a surplus as an end in itself. Rather, it is the means by which we can ensure not only that adequate resources are directed to where they are most needed, but also that future generations of Canberrans are not disadvantaged because we could not live within our means.

A stronger ACT economy is one of the factors underpinning the improved budget position. The ACT has now enjoyed nine consecutive quarters of economic growth, producing a steady fall in the unemployment rate to levels not seen since the start of the decade. The focus on business and employment in the last three ACT budgets has paid off, helping to diversify and strengthen our local economy. Business conditions are positive, with low inflation, low interest rates and increased opportunities flowing from Commonwealth government outsourcing all contributing to high levels of confidence. The Government expects 1999-2000 to be a period of consolidation, with economic growth forecast to moderate before accelerating again in the following financial year. Population growth is predicted to increase gradually, but remain below the national rate for several years. The Government has continued to be conservative in its forecasts of both economic growth and revenue growth, in line with our commitment to responsible financial management.

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