Page 1784 - Week 06 - Wednesday, 8 June 2016
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In response to these shocks, we used the territory budget to support our local economy, to support jobs and to support our community. This strategy has worked, as is evidenced by the recent economic data. To cite some examples, we have the lowest unemployment rate in the nation, at 4.1 per cent. Retail trade growth is the strongest in the country. Commercial building approvals and residential building approvals are increasing. Service exports have increased by 65 per cent since 2010, which is well above the national average of 25 per cent. Growth in economic activity, as measured by state final demand, in the territory in the March quarter was the highest in the nation and over the last 12 months it has been above the national average.
The one thing that has tripled in this city in the last three years is the rate of economic growth. These indicators are a testament to the local business community, who have responded to the economic challenge that the federal Liberal government has created for this city. It is pleasing to note that the majority of jobs created since January 2015 have been in the private sector.
In regard to debt, it is important to note that the ACT has one of the few regional governments in the world with a stable AAA credit rating and it is one of only three states or territories in this country that has a stable AAA credit rating, the others being Victoria and New South Wales. Net financial liabilities to gross state product in the ACT are in line with those other AAA rated states, Victoria and New South Wales.
As the shadow treasurer has reluctantly acknowledged, net debt in the ACT is falling in the coming years. Compared to the 2015-16 budget, net debt falls in each year from 2015-16 to 2017-18, which largely reflects lower borrowings due to the removal of the capital provision for light rail as well as higher capital distributions from forecast sales under the land rent scheme.
With our very strong balance sheet, our excellent credit rating and with interest rates at all-time lows, now is a good time for governments to be investing in infrastructure. The 2016-17 territory budget outlines a $2.9 billion capital works program over the coming four years. This supports jobs and activity in our economy, and it supports our city’s needs as we continue to grow.
As I pointed out in my budget speech yesterday, our city population will reach 400,000 this year, and over the forward estimates period of this budget it is anticipated to grow to 420,000 people. We need to continue to invest in our city’s infrastructure to maintain quality of life as our population grows.
The 2016-17 budget continues the territory’s nation-leading taxation reforms of abolishing unfair and inefficient taxes. This budget marks the conclusion of the first stage of tax reform. From 1 July this year insurance tax will be gone—completely abolished. I welcome the reluctant approval of the shadow treasurer for the abolition of that tax, although I do note that he has opposed its removal and the government’s tax reforms all the way through. You cannot oppose it all the way through and then say it was a good decision at this point when it is abolished. What you have said every year for the last five years is that we should have kept this tax on insurance products. I am pleased to have delivered its abolition.
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