Mr KIELY - 2006-03-29
The annual Treasurers’ meeting is held this Friday. Can the Treasurer advise the House on the issues of this meeting, and the position the Treasurer will be taking to the meeting, not only on behalf of the good citizens of Sanderson, but also on behalf of all Territorians?
ANSWER
Madam Speaker, I thank the member for Sanderson for his question. It is always an important day on all Treasurers’ calendars including, of course, the federal Treasurer. It is held this Friday, and tomorrow there will be a small states meeting of Treasurers, followed by an all states meeting of Treasurers, which will mean I am leaving at 12.30 am tomorrow to reach those meetings. I apologise in advance to the House, Madam Speaker, for not being here tomorrow.
There are a number of critical issues to be addressed, both in small states/all states and, of course, at the Treasurers Conference on Friday. First and foremost will be the funding arrangements to take us through financial year 2006-07.
The Grants Commission has recognised an increase in the cost of delivery of services in the Territory and has, therefore, recommended an increase in what is termed the relativities – the relative share of each state against each state. That recommendation forms the basis of how much money the Territory will get. That increase accounts for an additional $26m. Our growth in population, up from a predicted 1.1% to 1.7% - third best in Australia - will account for a further increase. That is because funding arrangements at their heart are per capita based. More people means more funds, because more people means more services, means more costs. The additional numbers over the predicted amounts will also come through something of an increased size of the pool – more GST collected by the federal government than predicted in their forward estimates.
I disagree with the opposition when they always refer to this as a windfall, because it is our right, it is the right of every Territorian and the Territory government of the day to receive that money. It is what was agreed to by our predecessors in 1999 when the states and territories signed up to the GST. It is not a windfall; it recognises the needs of all Territorians. Every time I hear the term ‘windfall’, it is akin to kicking Territorians because what is the problem in receiving our due and proper share? You wonder whether they suggest that we should give it back.
My role in Canberra is to ensure that that allocation and those recommendations by the Grants Commission do, in fact, become a reality. I will be doing my best to make sure it does not get run over by New South Wales or Victoria. In that case, I am - as has every Territory Treasurer who has attended these conferences - joined by the other smaller state Treasurers and Queensland, and sometimes Western Australia - sometimes Western Australia think they are a big state and join with New South Wales and Queensland, depending on their share. However, we always leave the tent open for them to come in if they wish.
Importantly, the future method for determining the grants allocations is also under review. The 2010 review was agreed to a couple of years ago. However, we need to ensure that any such review of Grants Commissions and relativities and how they are done is done properly. The smaller states and territories agreed to review the way the decisions were made but, importantly, not the principles underlying the whole system. Of course, those principles are horizontal fiscal equalisation, the glue that blinds the states and territories of Australia into the wonderful federation that it is.
Taxation will also be on the agenda. We set down a timetable of the intergovernmental agreement which we forwarded to Treasurer Costello in about April last year. It was a timetable for implementing further taxation cuts. Although the opposition wants us to freeze taxes, we provided a year ago and we are still waiting for a response from the federal Treasurer. We expect to get a response on Friday at the Treasurers Conference.
We are also interested in the Commonwealth tax reform. We will be having a say on what is happening there. Finally, Treasurers will look at the reform agenda established by Premiers, Chief Ministers and the Prime Minister at COAG.
I will be there, Madam Speaker, as every Treasurer of the Northern Territory has been, defending the Territory’s rightful and proper share in the allocations that we get as strongly as I can.
ANSWER
Madam Speaker, I thank the member for Sanderson for his question. It is always an important day on all Treasurers’ calendars including, of course, the federal Treasurer. It is held this Friday, and tomorrow there will be a small states meeting of Treasurers, followed by an all states meeting of Treasurers, which will mean I am leaving at 12.30 am tomorrow to reach those meetings. I apologise in advance to the House, Madam Speaker, for not being here tomorrow.
There are a number of critical issues to be addressed, both in small states/all states and, of course, at the Treasurers Conference on Friday. First and foremost will be the funding arrangements to take us through financial year 2006-07.
The Grants Commission has recognised an increase in the cost of delivery of services in the Territory and has, therefore, recommended an increase in what is termed the relativities – the relative share of each state against each state. That recommendation forms the basis of how much money the Territory will get. That increase accounts for an additional $26m. Our growth in population, up from a predicted 1.1% to 1.7% - third best in Australia - will account for a further increase. That is because funding arrangements at their heart are per capita based. More people means more funds, because more people means more services, means more costs. The additional numbers over the predicted amounts will also come through something of an increased size of the pool – more GST collected by the federal government than predicted in their forward estimates.
I disagree with the opposition when they always refer to this as a windfall, because it is our right, it is the right of every Territorian and the Territory government of the day to receive that money. It is what was agreed to by our predecessors in 1999 when the states and territories signed up to the GST. It is not a windfall; it recognises the needs of all Territorians. Every time I hear the term ‘windfall’, it is akin to kicking Territorians because what is the problem in receiving our due and proper share? You wonder whether they suggest that we should give it back.
My role in Canberra is to ensure that that allocation and those recommendations by the Grants Commission do, in fact, become a reality. I will be doing my best to make sure it does not get run over by New South Wales or Victoria. In that case, I am - as has every Territory Treasurer who has attended these conferences - joined by the other smaller state Treasurers and Queensland, and sometimes Western Australia - sometimes Western Australia think they are a big state and join with New South Wales and Queensland, depending on their share. However, we always leave the tent open for them to come in if they wish.
Importantly, the future method for determining the grants allocations is also under review. The 2010 review was agreed to a couple of years ago. However, we need to ensure that any such review of Grants Commissions and relativities and how they are done is done properly. The smaller states and territories agreed to review the way the decisions were made but, importantly, not the principles underlying the whole system. Of course, those principles are horizontal fiscal equalisation, the glue that blinds the states and territories of Australia into the wonderful federation that it is.
Taxation will also be on the agenda. We set down a timetable of the intergovernmental agreement which we forwarded to Treasurer Costello in about April last year. It was a timetable for implementing further taxation cuts. Although the opposition wants us to freeze taxes, we provided a year ago and we are still waiting for a response from the federal Treasurer. We expect to get a response on Friday at the Treasurers Conference.
We are also interested in the Commonwealth tax reform. We will be having a say on what is happening there. Finally, Treasurers will look at the reform agenda established by Premiers, Chief Ministers and the Prime Minister at COAG.
I will be there, Madam Speaker, as every Treasurer of the Northern Territory has been, defending the Territory’s rightful and proper share in the allocations that we get as strongly as I can.
Last updated: 09 Aug 2016