Page 3372 - Week 11 - Wednesday, 14 November 2007
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Financial Management Act, pursuant to section 25—Consolidated Annual Financial Report, including audit opinion—2006-2007 Financial Year.
I seek leave to make a statement in relation to the paper.
Leave granted.
MR STANHOPE: I am pleased to present to the Assembly the 2006-07 consolidated annual financial report for the territory. This report has been prepared under the Australian accounting standards in line with the requirements of the Financial Management Act 1996. The consolidated statements have been audited and were unqualified. By any financial measure the territory’s performance in 2006-07 was strong. It is with pleasure that I announce that the government has achieved its financial objectives against its strategic measures in 2006-07.
The general government sector recorded a surplus, no matter which measure we choose to use. The government has achieved a GFS net operating surplus of $89 million two years ahead of schedule. This is the government’s headline budget measure: a net operating surplus measured on a pure GFS basis of $34 million, an Australian accounting standard operating surplus of $332 million, a surplus two years ahead of schedule, the fifth consecutive AAS operating surplus of my government and the largest surplus in the history of the ACT.
Strong operating cash surpluses were achieved—net GFS cash from operating activities of almost half a billion dollars in 2006-07, a strong total GFS cash surplus of $269 million one year ahead of schedule. Total cash and cash equivalents and investments grew by $445 million to $3.2 billion. A strong balance sheet was maintained and, in fact, increased. The territory’s AAA credit rating has been maintained. Net assets grew by almost $1.8 billion to $11.2 billion. Net debt is strongly negative.
The government’s strategy of fully funding the territory’s superannuation liability is on track. A contribution of $107 million was made in 2006-07 towards the territory’s unfunded superannuation liability. At the end of the 2007 financial year 72 per cent of the superannuation liability was funded. A record expenditure on the capital works program of $218 million was achieved, helping to meet the infrastructure requirements of a growing city.
All key fiscal aggregates also improved on the 2005-06 outcome, and this was not by luck but a result of the difficult decisions and actions taken by my government in the 2006-07 budget—actions which have had longer term financial stability firmly in mind, including measures to improve efficiency and reduce the cost of administration.
The budget surplus reflects sound fiscal management. The government has recognised that the ACT has been living beyond its means and it undertook the necessary actions to put the territory’s finances on a sustainable footing. The result clearly demonstrates this government’s ability to effectively manage its expenses and its revenue, ensuring
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