Page 4763 - Week 13 - Tuesday, 10 November 2009

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We delivered a modest budget in May this year which provided targeted investments in the community, maintained services and delivered on key election commitments and commitments we made in the parliamentary agreement. The budget provided a modest average annual spend of $49 million for new initiatives. We carefully targeted new spending initiatives to support investment in the local economy, to support jobs and to build a better city. This has helped provide confidence and stability for our local industries and supported jobs in the short term, while increasing the productive capacity of our economy over the longer term.

Our budget was hit by the effects of the economic slowdown, reduced GST revenue, reduced returns on investment and loss of income on our financial assets, and the subdued activity in the housing market contributed to significant revenue loss. At the time of release, we were forecasting a deficit of $41.3 million for 2008-09 and $82.2 million for 2009-10, with deficits continuing until 2015-16. We knew we had to act prudently and deliberately to return our budget to balance. We outlined a seven-year strategy to move out of deficit and developed a savings plan over the forward estimates, starting with $51 million in 2010-11, increasing to $102 million in 2011-12 and $153 million in 2012-13. We have taken this approach to balance community expectations with the resources available to us.

We commenced an early and open consultation process on the 2010-11 budget, inviting submissions from the community, business, non-government organisations and other members of the Assembly, to assist us with our work. I note that whilst we have had, I think, around 62 submissions from the non-government sector, including community and business, and feedback from the Greens, we have not received any feedback or contributions from the opposition in relation to that community consultation process.

To look at efficiencies and savings opportunities within government we have established the Expenditure Review and Evaluation Committee, which will provide advice to budget cabinet. I will also meet on a monthly basis with the agency’s chief financial officers to monitor the rollout of our capital expenditure program, to address delays and barriers and to maintain our commitment to delivering our program.

The first year of government of the Seventh ACT Legislative Assembly has been marked by great achievement in a climate of great economic uncertainty. Our proven track record in strong financial and economic management has meant that we are able to weather the storm as best we can. We are getting results but we remain committed to working with the Assembly, the business community, industry, the education sector, unions and all other stakeholders in the community to deliver on our budget plan and to deliver on our commitments to the community.

A lot has happened in the health portfolio in the first year. As part of our billion-dollar investment in rebuilding our public health facilities, we reached a number of significant milestones. We are in the final stages of design work for the brand new women’s and children’s hospital. We have reached the critical planning stages for 11 more operating theatres and three endoscopy suites as well as new emergency departments at both public hospitals. And we have begun construction on the new state-of-the-art neurosurgery suite.


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