Page 2335 - Week 07 - Thursday, 17 August 2006

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time any jurisdiction in Australia had unemployment below three per cent was in 1980 when the Northern Territory recorded a rate of 2.9 per cent.

Since coming into office five years ago this government has seen the creation of 17,000 jobs in the ACT—800 jobs in July alone. Importantly, we can also say that 186,900 Canberrans are now employed, with employment having grown by six per cent under this government. We still have the highest wages in the nation with average weekly earnings in the ACT significantly higher than anywhere else in Australia.

Wage price index data from yesterday scotches some of the opposition’s scaremongering on growth rates and skills shortages. In the last quarter the wage price index for the ACT rose by 0.6 per cent against a national increase of 0.8 per cent. In short, that means that our economy is not only growing; it is growing sustainably. We have a strong private sector base, a confident and dynamic business sector and an economy in which consumer and business confidence are the highest in Australia.

In the last measure, business confidence in small and medium business enterprises is running at eight per cent above the national level, which is some indication of business perceptions of the strength of the ACT economy and its future. Business expectations and confidence in the ACT, as measured in May, are running at eight per cent higher than the percentage throughout Australia. All these indicators are significant as they reflect the strength of the ACT economy.

It is also interesting to compare gross state product figures for the ACT with those around the nation. The ACT recorded a growth of three per cent last year compared to a national average in gross state product of 2.3 per cent. Essentially, because of the strength of the ACT economy, this government is continuing to work with the business community to deal with issues that essentially are a result of our successful economy, that is, labour force and skills shortages. With a record unemployment rate of 2.8 per cent it is no wonder that businesses are finding it difficult to recruit.

We are working hard with the business community to do even more to boost labour supply in the ACT. Last year the skilled migration program brought 207 skilled workers to the capital. It is not just that there are an additional 207 people to fill available jobs; their salaries, of course, are worth well in excess of $1 million. Population growth is turning around. A pleasing aspect in the range of statistics available over the last year is that population growth in the ACT, whilst lagging as the lowest in Australia over the past few years at 0.4 per cent, has jumped by 0.8 per cent. So ACT population growth is now greater than population growth in Tasmania, South Australia and New South Wales.

The business migration program, which this government reinitiated and reinvigorated, is set to bring 34 business people to the ACT. Collectively, businesses have undertaken to invest $21 million in the ACT economy. In the budget we announced the establishment of the ACT Skills Commission. Through that we hope for better communication channels with business and the education sector as to how best to boost skills. We are in the process of establishing the commission’s terms of reference and shortly we will establish its membership.

We arranged with Qantas for the establishment of a pilot and crew base in the territory, which resulted in the immediate creation of 30 new jobs and the arrival of a significant


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