Page 1439 - Week 05 - Wednesday, 14 May 2014

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The ACT government has focused significant resources and energy on encouraging greater diversity in the ACT economy. The ACT economy is now more resilient than ever and is as well placed as it can be to deal with the negative impacts that will arise from the commonwealth’s budget decisions.

However, while the ACT has withstood the contractions to date, our economy will struggle to absorb large levels of commonwealth redundancies without assistance. The magnitude of the cuts to the Australian public service can be expected to have a direct impact on overall economic activity in the ACT. While the news is not good and Canberrans will face challenges in the future, the ACT workforce is perhaps the highest skilled in Australia. With appropriate assistance, there can be opportunities for workers and businesses as well as challenges.

Nonetheless, it is clear that Canberra does not get the same assistance as other jurisdictions. It has not seen the same level of support shown to South Australia, Victoria or Tasmania. Let us remember the commonwealth made a 2013 election commitment of $16 million to assist Cadbury in Tasmania. We saw the $155 million growth fund to generate the jobs of the future for employees and supply-chain businesses in Victoria and South Australia affected by the closure of local automotive manufacturing.

The Prime Minister has also previously announced that more than $1.5 billion has been set aside for South Australian infrastructure projects over the next six years and $6.5 billion for Victorian projects. This was to help offset a reported loss of only 3,000 employees. In Canberra the latest estimates suggest there are at least 8,000 employees to lose their jobs.

While the ACT government has limited scope to cushion our economy in the light of these challenges, we have outlined plans for a number of infrastructure projects to help maintain economic activity and confidence. It is important that the ACT government continues to support these infrastructure projects as they are essential in generating investment and job growth and promoting economic activity for local suppliers and small businesses.

We have also taken the initiative in providing support for the building and construction industry through the announcement of a two-year stimulus program. We are strengthening our higher education sector, supporting our IT and knowledge-based industries, and we will help protect the most vulnerable in our community through important initiatives such as our hospital infrastructure program, transition to the NDIS, increasing school resourcing and the healthy weight initiative.

It is fortunate the ACT’s economic fundamentals are sound and we have a highly competitive economy. IKEA’s investment in Canberra and the $46 million Canberra computer animation academy are both evidence of this. The ACT government has a strong working relationship with the business sector and is committed to driving growth in investment, exports and jobs. It is this commitment that has the ACT’s unemployment rate at 3.6 per cent, with sound economic foundations in other key


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