Mr SETTER - 1996-02-27
Territorians learned yesterday that they are about to receive a $27m cut in federal funding. Would you believe that this has been hailed as a good result by the federal member, Labor's Warren Snowdon? Could the Treasurer advise what impact this funding cut will have on Territorians?
ANSWER
Mr Speaker, members opposite, the federal member, Warren Snowdon, and the federal Treasurer appear to be the only people in this country who believe that the Territory will not receive the $27m cut if the Grants Commission recommendations are adopted. The Leader of the Opposition laughs, but let me quote to him from today's edition of the NT News: `The commission chairman, Dick Rye, said changes in state economies in 1994-95 had resulted in the reduced share for the Northern Territory'. Nothing could be clearer. That was from the chairman of the Commonwealth Grants Commission, and it is in direct conflict with the comments by the federal member for the Northern Territory, Warren Snowdon. Make no
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mistake about it, the results of the Grants Commission recommendations mean that Territorians face a $27m cut in next year's budget funding from the Commonwealth. That equates to $156 for every man, woman and child in the Northern Territory. The shame about this is that Warren Snowdon is selling this to Territorians as a great success. He is telling Territorians that we will have a $16m windfall when in fact we will have a $27m cut.
Mr Ede interjecting.
Mr REED: Let us talk about the formula. The Leader of the Opposition raises the formula. If my predecessor had a part in setting up the formula, it is a pity that the formula was not being applied. That is where Warren Snowdon has fallen over on this issue. He has lied to Territorians, telling them that they will have a $16m ...
Mr BAILEY: A point of order, Mr Speaker! The minister cannot say of members of this Chamber or other places that they have lied.
Mr SPEAKER: I ask the minister to withdraw the comment.
Mr REED: Mr Speaker, I unreservedly withdraw the comment. However, let me say that, in misleading Territorians to believe that they will receive a $16m increase when they will suffer a $27m cut, the member for the Northern Territory has indeed incorrectly applied the formula. The Leader of the Opposition does not understand it either. He has been talking only to Snowdon. He should talk to a few other people who know rather more about it. If he is talking about the formula, let them follow the formula. If last year's formula were to be applied, we would receive, in 1996-97, $945m as opposed to what Warren Snowdon is telling us we are to receive - $918m.
Mr Ede: What is the formula?
Mr REED: This is the formula that has been applied. We are maintaining that the same formula should be applied this year on the basis that that is how it has operated in the past. While there have been some minor adjustments to the Grants Commission's recommendations on funding to the Northern Territory, there has been no move as substantive as $27m. For Victoria or some other states, $27m is not a great deal of money. However, for our budget, which is smaller, it is comparatively a substantial amount of money.
To put it in context, Warren Snowdon's suggested $16m-odd increase will not go anywhere near to meeting the commitment that we have made to Territory public servants to pay their 4% increase in salaries as of July this year. That is the commitment that Warren Snowdon has to Territorians. If you want proof, turn to the Grants Commission report.
Members interjecting.
Mr SPEAKER: Order!
Mr REED: I refer members to page xii. It is there in black and white. It is interesting that the member for the Northern Territory is not disputing that Victoria is to receive a $120m
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increase. Obviously, with next Saturday's election in view, he is not disputing that, although it comes from the same schedule that states that the Territory will have a $27.3m cut. It is in black and white. That will be our bargaining position when we go to talk to the federal government - down $27m!
Let us have a look at where it has come from. In relation to the context of these cuts and the basis on which these decisions are made, bear in mind the comments of the Prime Minister on television on Sunday night. Uncharacteristically, the Prime Minister made passionate, heartfelt comments about the federal government increasing funding for health across the nation, increasing funding to provide services to Aboriginal people across the nation, and about what a great job he is doing. Let us examine why the Grants Commission has recommended that the Territory should lose $27m. The principal reason is a reduction of $6.3m for community health services. Grants for Aboriginal purposes are down $7.2m. Why? It is on the basis that the Commonwealth is said to be putting additional resources into those areas. Consequently, it is said ...
Mrs Hickey: Yes.
Mr REED: ... that the Territory can do without this money. The member for Barkly says yes, all-knowingly and beaming with knowledge. If the Prime Minister was correct on Sunday night in saying that the federal government is directing more money into health services in the Territory - and 50% or more of it goes to Aboriginal people - and if he was sincere in his commitment that it would spend more on services to Aboriginal people, why does it take money away from untied grants to the Territory? That does not equate to more. It equates to less because a similar amount to what the Commonwealth is to spend will be taken away from the Northern Territory. When inflation is taken into account, we will have gone backwards. Contrary to the comments of the Prime Minister on Sunday night, the federal government will not be putting more money into health services. As indicated in this document, it will be less. If members opposite are prepared to defend him, they can do so. Warren Snowdon is prepared to defend him to the hilt.
Could honourable members opposite please explain why, over the period that Warren Snowdon has been our member for the Northern Territory, representing Canberra in the Northern Territory, funding for the states from the Commonwealth has increased by 20% and funding for the Territory from the Commonwealth has increased by only 5%? With that type of fellow fighting for you and supporting you, you do not need any enemies. We need only look at some of the federal member's comments on past budgets to see where he is coming from and why he will not support us. For the benefit of members, I quote his comments. After the Territory had received substantial cuts in funds since 1982, Snowdon confessed: `There have been cuts in expenditure in the Northern Territory from the Commonwealth but that is not unusual'. It is not unusual, all right, because there is his record! The states receive a 20% increase but we receive a 5% increase. That is his performance. He has priors on this issue. He fails to stand up for Territorians and he misleads them by suggesting that we are to have a $16m increase when we are to have a $27m cut. If he is trying to win votes in Saturday's election by completely misrepresenting the Grants Commission's report, he will have to live with it.
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ANSWER
Mr Speaker, members opposite, the federal member, Warren Snowdon, and the federal Treasurer appear to be the only people in this country who believe that the Territory will not receive the $27m cut if the Grants Commission recommendations are adopted. The Leader of the Opposition laughs, but let me quote to him from today's edition of the NT News: `The commission chairman, Dick Rye, said changes in state economies in 1994-95 had resulted in the reduced share for the Northern Territory'. Nothing could be clearer. That was from the chairman of the Commonwealth Grants Commission, and it is in direct conflict with the comments by the federal member for the Northern Territory, Warren Snowdon. Make no
Page 1213
mistake about it, the results of the Grants Commission recommendations mean that Territorians face a $27m cut in next year's budget funding from the Commonwealth. That equates to $156 for every man, woman and child in the Northern Territory. The shame about this is that Warren Snowdon is selling this to Territorians as a great success. He is telling Territorians that we will have a $16m windfall when in fact we will have a $27m cut.
Mr Ede interjecting.
Mr REED: Let us talk about the formula. The Leader of the Opposition raises the formula. If my predecessor had a part in setting up the formula, it is a pity that the formula was not being applied. That is where Warren Snowdon has fallen over on this issue. He has lied to Territorians, telling them that they will have a $16m ...
Mr BAILEY: A point of order, Mr Speaker! The minister cannot say of members of this Chamber or other places that they have lied.
Mr SPEAKER: I ask the minister to withdraw the comment.
Mr REED: Mr Speaker, I unreservedly withdraw the comment. However, let me say that, in misleading Territorians to believe that they will receive a $16m increase when they will suffer a $27m cut, the member for the Northern Territory has indeed incorrectly applied the formula. The Leader of the Opposition does not understand it either. He has been talking only to Snowdon. He should talk to a few other people who know rather more about it. If he is talking about the formula, let them follow the formula. If last year's formula were to be applied, we would receive, in 1996-97, $945m as opposed to what Warren Snowdon is telling us we are to receive - $918m.
Mr Ede: What is the formula?
Mr REED: This is the formula that has been applied. We are maintaining that the same formula should be applied this year on the basis that that is how it has operated in the past. While there have been some minor adjustments to the Grants Commission's recommendations on funding to the Northern Territory, there has been no move as substantive as $27m. For Victoria or some other states, $27m is not a great deal of money. However, for our budget, which is smaller, it is comparatively a substantial amount of money.
To put it in context, Warren Snowdon's suggested $16m-odd increase will not go anywhere near to meeting the commitment that we have made to Territory public servants to pay their 4% increase in salaries as of July this year. That is the commitment that Warren Snowdon has to Territorians. If you want proof, turn to the Grants Commission report.
Members interjecting.
Mr SPEAKER: Order!
Mr REED: I refer members to page xii. It is there in black and white. It is interesting that the member for the Northern Territory is not disputing that Victoria is to receive a $120m
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increase. Obviously, with next Saturday's election in view, he is not disputing that, although it comes from the same schedule that states that the Territory will have a $27.3m cut. It is in black and white. That will be our bargaining position when we go to talk to the federal government - down $27m!
Let us have a look at where it has come from. In relation to the context of these cuts and the basis on which these decisions are made, bear in mind the comments of the Prime Minister on television on Sunday night. Uncharacteristically, the Prime Minister made passionate, heartfelt comments about the federal government increasing funding for health across the nation, increasing funding to provide services to Aboriginal people across the nation, and about what a great job he is doing. Let us examine why the Grants Commission has recommended that the Territory should lose $27m. The principal reason is a reduction of $6.3m for community health services. Grants for Aboriginal purposes are down $7.2m. Why? It is on the basis that the Commonwealth is said to be putting additional resources into those areas. Consequently, it is said ...
Mrs Hickey: Yes.
Mr REED: ... that the Territory can do without this money. The member for Barkly says yes, all-knowingly and beaming with knowledge. If the Prime Minister was correct on Sunday night in saying that the federal government is directing more money into health services in the Territory - and 50% or more of it goes to Aboriginal people - and if he was sincere in his commitment that it would spend more on services to Aboriginal people, why does it take money away from untied grants to the Territory? That does not equate to more. It equates to less because a similar amount to what the Commonwealth is to spend will be taken away from the Northern Territory. When inflation is taken into account, we will have gone backwards. Contrary to the comments of the Prime Minister on Sunday night, the federal government will not be putting more money into health services. As indicated in this document, it will be less. If members opposite are prepared to defend him, they can do so. Warren Snowdon is prepared to defend him to the hilt.
Could honourable members opposite please explain why, over the period that Warren Snowdon has been our member for the Northern Territory, representing Canberra in the Northern Territory, funding for the states from the Commonwealth has increased by 20% and funding for the Territory from the Commonwealth has increased by only 5%? With that type of fellow fighting for you and supporting you, you do not need any enemies. We need only look at some of the federal member's comments on past budgets to see where he is coming from and why he will not support us. For the benefit of members, I quote his comments. After the Territory had received substantial cuts in funds since 1982, Snowdon confessed: `There have been cuts in expenditure in the Northern Territory from the Commonwealth but that is not unusual'. It is not unusual, all right, because there is his record! The states receive a 20% increase but we receive a 5% increase. That is his performance. He has priors on this issue. He fails to stand up for Territorians and he misleads them by suggesting that we are to have a $16m increase when we are to have a $27m cut. If he is trying to win votes in Saturday's election by completely misrepresenting the Grants Commission's report, he will have to live with it.
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Last updated: 09 Aug 2016