There is no middle course for the ACT now. The ACT is poised for significant change one way or the other. The most likely result is Liberals 7, Labor 6, Green 2, Moore 1, Osborne 1. Labor can only retain Government in an alliance with the Greens. The Greens have said they will extract concessions from Labor before it will support Rosemary Follett as Chief Minister. On the other hand, the Liberals may take government with the support of Paul Osborne and Michael Moore. Either way, the course that the Follett Government was taking Canberra is to change. What is in store. If the Liberals take Government, they will have to rely on the support of Michael Moore which will mean some concessions on their planning policy. Under a Liberal Government, excluding any concessions to Michael Moore, the ACT can expect the following changes. Casemix funding in health, which will mean an efficiency drive at Woden Valley Hospital bringing down overspending in administration and overheads and to a lesser extent doctors and nurses. The Liberals want to spending $30 million less a year in health by the third year, through efficiencies and have 50 more beds in the first year and 1000 more beds by 2000, though greater private-sector involvement. ACTION will face competition through privatisation with $27 million a year lower spending. There will be a boost for business. Payroll tax will be cut 14 per cent (one percentage point to 6 per cent). The 3 cents a litre tax on petrol will be abolished. The Gungahlin Town Centre will be begun by the end of the year. The leasehold system will remain only in name. The Liberals have promised automatic renewal of both residential and commercial leases. Labor said commercial lessees would pay 10 per cent unimproved value to renew. Also business will benefit from lower betterment charges: 50 per cent maximum for commercial, dual occupancy and medium density. Michael Moore could be expected to resist the latter. On education, the Liberals said they would bring in free school buses and real spending steady. On the other hand a Labor Government with Green support would be very different. One senior Labor Minister said before the election, “”You can deal with the Greens provided you don’t have any extractive industries _ and in the ACT we don’t have them.” However, the Greens have a full social and political agenda. Their policies were not limited to the environment. It is likely to be a question of the Greens and Labor negotiating and the Greens getting what they can. Some that Labor could live with include their policies include increasing petrol tax and changing the form of the city through higher density living along public-transport routes and support for the light rail.