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Legislative Assembly for the ACT: 2000 Week 6 Hansard (23 May) . . Page.. 1577 ..

Mandate

This government was elected in 1995 on a platform of responsible financial management. We immediately introduced accrual budgeting to the ACT public service. This gives us a true picture of the state of our budget. Agencies, and the Assembly, could see and understand the importance of responsible financial management.

We inherited an operating loss of $344 million from Labor. Constantly spending more than we earned without any regard for the long-term consequences was setting the ACT on a slippery path which would end in long-term financial ruin, much like that experienced in Victoria. Our mandate was confirmed in 1998, when the ACT community again rejected the approach of Labor to spend far more than was in the budget.

When the Chief Minister presented the 1999 budget she said that the strategy adopted by the government would see the ACT's operating loss eliminated within two years. Today, it is therefore with great pride that I tell the people of Canberra that we have honoured our commitments, and this budget, for the first time, delivers a modest surplus. But, just as importantly, it allows us to make a real and substantial contribution to further improve the quality of life in our city. That is what I mean when I talk about social capital. Moving the ACT into a long-term, secure financial future means we will not spend our time battling debt, and when government achieves that secure financial future it can best turn its attention to building a high quality of life for our local community.

Today, this budget achieves a responsible surplus. It does not quarantine lots of money in a surplus to impress the economists. It balances our books, invests in the vital services we provide to our community, and, importantly, begins responsibly planning for the future liabilities of our community. That remains the difference between the Carnell government and Labor.

Economic Outlook

The ACT economy remains vibrant and enjoys strong growth. The outlook for business remains good. The strength of our economy is an endorsement of the approach taken by this government to diversify our base following significant federal budget cuts in 1996-97. It is also a testament to Canberra's business community, which has got behind the government's strategy to diversify the economy. Unemployment is at an all-time low. Employment is high. Population growth is expected to continue its steady increase, but will still remain below national levels.

Some global influences are likely to be felt in Canberra in the next year. Consistently higher petrol prices caused by a down-turn in production by world oil producers is having an effect on the consumer price index across Australia. Canberra will be no exception to that trend. Higher global interest rates will be a challenge for some Canberra families and businesses in the coming year as well.

Despite those factors, the government remains confident about the outlook for the ACT economy. We are in a sustainable position, and our responsible approach to the budget ensures that there are sufficient funds to meet the needs of the community. But the

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