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Legislative Assembly for the ACT: 2000 Week 1 Hansard (17 February) . . Page.. 303 ..

MR HUMPHRIES (continuing):

I think, and he will have more than ample opportunity to test the creative accounting, or not creative accounting, that we are using. I look forward to his questions on that subject.

I was puzzled by the comment about a coincidental result of the surplus. I am not sure what this coincidental result is meant to coincide with. Is it to do with the transition from one Treasurer to another, the 21st century or Chinese New Year? I do not know what it is meant to be coinciding with, but whatever it is - - -

Mr Quinlan: Forward estimates of six or seven months ago.

MR HUMPHRIES: Governments do try to project their forward estimates in an accurate way and we have managed to do that, if that is a coincidence. It could also be very good planning.

Mr Quinlan: It is, given the number of changes above that line.

MR HUMPHRIES: Again, there will be plenty of opportunity for Mr Quinlan and his colleagues to ask questions about the novel accounting we have used to get to that point when the committee next meets.

Questions were asked about loans. Mr Quinlan asked whether we would have to repay the loans that have been made to us out of the surplus we start to make from the GST in the outyears, probably from year 3 onwards. No, because, as I said earlier in question time today, the loans are to be fully repaid in year 2 by the Commonwealth, so there would not be any money to be repaid in year 4 when the surplus starts to accrue. There is one circumstance where we would have to repay the loan. That would be if, against all the expectations, the revenue from the GST in year 1 was much greater than expected and, as a result, there was an improvement in the ACT's position, notwithstanding that the projections are that we will not get that improvement until year 4. If that were the case, the extent of any improvement would be eaten up, first of all, by repaying loans, but again on the basis that the ACT would be no worse off. If we did extremely well, getting millions and millions of dollars more than expected, then we might actually make some money, but that is so unlikely that it is not worth commenting upon.

Mr Speaker, that is the approach that the Government is taking with this matter. I do not pretend that we have all the answers on the GST. It is a matter which is still being addressed by the Commonwealth. I think I am not making a rash statement by saying that the Commonwealth has not yet answered for itself some of the questions in relation to the GST. However, we do point to the irrefutable fact that whoever is Treasurer in 2009 and 2010 - Mr Quinlan might have cracked it by then if he is really lucky; Mr Kaine could have made a comeback as Treasurer by that stage and still be waiting for a telegram from the Queen - - -

Mr Quinlan: And very wise by then by his own standards.

MR HUMPHRIES: And very wise, incredibly wise, by that stage.

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