Predictions from Access Economics that retail growth will dip to the lowest rate nationally in the next two financial years confirms the folly of Treasurer Katy Gallagher and ACT Labor’s budget strategy over the last few years, Opposition Leader Zed Seselja said today.
During Estimates last year, Chief Executive Officer of the Canberra Business Council, Chris Faulks raised concerns about the potential impact on business, where;
‘The worst case scenario is a perfect storm where you have budgets at both levels taking drastic measures to return the budgets to balance or surplus and that is likely to have a substantially and disproportionately negative impact on business and employment in the ACT.’ (Hansard, 15/5/09)
“The potential effect on business and the ACT economy will be significantly worse because Ms Gallagher has continued to spend beyond her means without identifying any savings in previous budgets. ACT Labor have spent like drunken sailors for eight years, and continued to do so despite projected drops in revenue in last years budget,” Zed said.
“The wasteful spending of the past eight years, combined with the decision not to find any savings last year will make the pain this year far worse than it needed to be.
“Already, Ms Gallagher has announced a freeze on employment for ‘non essential front line services’ for the ACT public service, and there may be more cuts to come. If a similar outcome comes from the federal budget, this will put further strain on business and the economy in the ACT.
“ACT Labor has known for some time the Federal government was likely to reign in spending after billions of dollars was spent last financial year. Ms Gallagher has been unable to spread the burden by paring back massive levels of spending in previous budgets. This will potentially now deliver a double hit to the business sector, and ultimately the ACT economy, with cuts potentially coinciding with federal cutbacks.
“The approach from ACT Labor - spending like drunken sailors regardless of the budget situation – will mean ACT business and the community will be forced to bear the heavy burden of potential cuts from both Territory and Federal governments,” Zed concluded.
