The good news for the ACT in the Budget is a new building for the Department of Industrial Relations and other capital works and federal funding in line with expectations.
The bad news is that there is no announcement on the National Museum.
The new building will be 14,000 square metres and the department will be its main tenant. Several sites in Barton are under consideration. However, its precise cost was not announced because it is being contracted to the private sector. Construction is to begin at the beginning of next year.
However, some idea can be gained by comparing the Foreign Affairs building: 46,000 square metres, $187 million and 1500 jobs (directly and indirectly). The IR building should be a bit less than a third of this.
The Budget papers said it would be financed on instalment payments. The developer would provide the initial capital and be repaid over the construction period when the Commonwealth would take ownership.
Other capital works which will provide a boost to the ACT economy are: the $6.5 million refurbishment of the Australian Federal Police Training College at Barton; $3 million in initial design work for a refit of the Administration Building as the Department of Foreign Affairs moves into its new building at York Park. About $3 million will also be spent at the Australian War Memorial, $300,000 for urgent health and safety works and $2.6 million over four years for Pacific War Gallery.
The Budget provides also for the on-going program of restoration, maintenance and replacement of Commonwealth assets in Canberra by the National Capital Planning Authority.
The Chief Minister, Rosemary Follett, welcomed the building projects, but expressed disappointment about the museum, saying the ACT was ready to contribute to infrastructure for the project.
She welcomed the Budget’s social justice program and help for the young unemployed.
The Leader of the ACT Opposition, Kate Carnell, said the Budget missed an opportunity to build on the rising business cycle by attacking the deficit more thoroughly.
She welcomed the IR building being contracted to the private sector. She was diasspointed that there was no funding for the museum and now doubted it would be built this century.
The Budget papers report the ACT is in a relatively sound financial position as it makes the transition to state-like levels of Commonwealth funding.
Budgets had been close to balance, resulting in low debt, the papers said.
The ACT’s strategy was to maintain a recurrent budget balance by cutting spending and by ensuring its overall revenue effort was the same as the states.
The ACT has the lowest debt as a percentage of Gross State Product (less than 1 per cent) and the lowest interest outlay as a percentage of revenue (less than 1 per cent, but up from nothing the previous year).
Only Queensland comes close. Tasmania has the highest debt ratio to GSP at 38 per cent and Victoria the highest servicing per cent of revenue at 19 per cent.
The ACT has done reasonably well out of Commonwealth grants, with none of the untoward or unusual tricks of previous years. The ACT will get $1796.70 per head from the Commonwealth as against an Australian average of $1702.30. Last year it had (estimated) $1888 compared to the average of $1734.
In 1994-95 other states will get: Vic $1526.30; NSW $1530.80; Qld $1739.10; WA 1829.10; SA 2038.60; Tas 2113.80; NT $6269.30. Like the ACT, they all fell against last financial year. The ACT fell the largest percent, but that was expected in line with the transition to state-type funding.
The level accords with recommendations of the Commonwealth Grants Commission with an agreed adjustment for police-function transfer, and so should not cause the ACT Government any surprises.
The ACT is to get $65.9 million in transitional allowances and special fiscal needs. Transitional allowances are up $5.3 million (to $48.6 million) over last year as a once only correction to Commonwealth Grants Commission funding assessments, but the Budget papers warn: “”Payments of transitional allowances can be expected to decline in future years.”
The special fiscal needs of $17.3 million is for functions funded by the ACT normally funded by the Commonwealth in other states.