Page 1724 - Week 06 - Wednesday, 8 May 2013
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our very high level of labour market participation. The trend participation rate, at 72.2 per cent, is the second highest in the country. In the six months to November 2012, the trend full-time adult average weekly earnings in the territory increased by 2.6 per cent. Investment has, of course, been strong and continues as the ratio of state final demand has been at a very high level.
We have seen within our housing market increased affordability, and that is a good thing for those looking to get into the market for the first time. There has been some come-down from the record levels in terms of residential construction, but residential building approvals remain at a relatively high level and certainly above long-run averages. Building approvals for the year ending March 2013 were above the five-year average level and remained above the combined trend number of approvals in the Northern Territory and Tasmania for the same period.
Members would be aware the Reserve Bank yesterday made a further move on the cash rate and that has come down by a cumulative 200 basis points since November 2011. So this impact, combined with ongoing solid population growth for the territory, will have a positive impact on housing market activity within the territory.
Following very strong growth earlier in the decade, commercial construction has eased off a little in the last two years. Although it is lower than the peak levels, activity remains at a high level. Inflationary pressures within the territory remain contained. The Canberra CPI increased by just 0.1 of one per cent in the March quarter of 2013, an annual increase of 2.2 per cent, which is lower than CPI growth nationally.
As I mentioned, population growth remains strong. Our population grew 0.5 of a per cent in the September quarter and is annualising at two per cent a year, so roughly 7½ to 8,000 new Canberrans every year. On current population trends, our population will reach 400,000 in 2016.
MADAM SPEAKER: A supplementary question, Dr Bourke.
DR BOURKE: Minister, what actions is the ACT government taking to boost the economic performance of the ACT?
MR BARR: We have a wide range of programs and policies in place to ensure that the economy continues to grow, most importantly that we continue to create jobs in the territory. First and foremost, that is around establishing the right policy settings that will enable private sector jobs growth.
Through the business development strategy, which I launched in April of last year, the government is providing a range of targeted supports to the private sector. It is a comprehensive plan, backed up with resources in last year’s budget and more to come in this year’s budget, to help guide the future growth of the territory economy. The business development strategy sets out numerous initiatives to encourage economic growth, the diversification of the territory’s economic base and to contribute to employment growth.
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