Page 1402 - Week 05 - Tuesday, 13 May 2014
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
economic conditions mainly arise due to the ongoing commonwealth government’s fiscal restraint measures.
The ACT economy has weakened slightly since the 2013-14 ACT budget. We know that the federal government is reducing the number of Australian public servants and federal agencies. Five commonwealth departmental budgets, including recruitment arrangements that place a hiring freeze on the Australian Public Service, have potential to limit employment growth in the ACT. A review of the commonwealth government spending by the National Commission of Audit and many recommendations made by the commission place increased uncertainty on the territory’s economic future.
The commission’s report indicates that recommendations proposed would translate into a loss of approximately 15,000 jobs. The majority of these job cuts appear to be Canberra based. While the ACT can withstand some more belt-tightening by the commonwealth, it cannot absorb large levels of commonwealth redundancies without assistance. A decline in the APS will have a direct impact on the Canberra community, as well as overall economic activity in the ACT.
First and foremost, the ACT government has ensured that the ACT economy has grown strongly. Economic growth in the ACT has remained robust, despite the challenges posed by the commonwealth’s contraction. The ACT government will continue to facilitate employment both as an employer and as a driver of economic growth. We are committed to supporting sustained growth and development of the ACT economy. We will work with the region, businesses, institutions and the wider community to increase economic opportunity and activity.
Prudent financial management and a commitment to reform, as well as investment in our people and technology, will create the right conditions to support business and consumer confidence in the local economy and therefore create jobs. Defending jobs is just not a matter of political or economic expediency. In our system the best way for a person or a household to participate fully in our society is to be in work.
The ACT will be experiencing a unique set of challenges in the coming years. However, we also have a unique set of opportunities in Canberra. We will be seeking to leverage those opportunities to support both long-term productivity growth and to weather the coming storm. In general terms governments can promote productivity growth through investing in infrastructure and skills, promoting macro-economic stability and providing appropriate micro-economic frameworks. Infrastructure investment increases productivity by enhancing the efficiency with which private sector resources can be used.
For example, well-functioning roads can make it easier to transport goods, which will lower fixed costs for businesses. There have been a range of estimates over time around the potential benefits of public investment in infrastructure. One estimate which has been referred to in recent years by the commonwealth Treasury and the World Bank is that a one per cent increase in public capital stock can raise total factor productivity by 0.4 per cent.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video