Mr KIELY - 2003-02-26
The Commonwealth Grants Commission today released a 2003 update of general revenue grant relativities. Can you inform the House what this means for the Territory?
ANSWER
Madam Speaker, I thank the member for Sanderson because it is important for me to put on the record exactly what it means. It is a case of some misfortune, I suppose, in that the Commonwealth Grants Commission 2003 update is disappointing news for Territorians, particularly when it is viewed in the context of the ABS population figures released last week.
Figures contained in the update, when considered in conjunction with the recently revised population data coming forward, reveal that the Territory may only be entitled to an extra $13.6m in Commonwealth grants for the financial year 2003-04, compared to what was projected in the mid-year report projections, based on what the Commonwealth was projecting by way of GST pool and population grants.
Under the Commonwealth grants relativities released today, it was estimated the Territory would be entitled to a $31.4m greater share of financial assistance in health care grants. However, it has to be taken into consideration that, due to those revised population estimates released by the ABS last week, the Territory grants funding for 2002-03 was revised down. Following that adjustment, it is estimated that the Northern Territory will be left with $13.6m in additional funding for 2003-04 compared, as I said, to those projections in the mid-year report.
It is also important at this stage that the figure is an estimate only, because there is the potential for it to still be reduced further. There is the Treasurers’ Conference in March, the Commonwealth budget when it is handed down in May and, after the further revision of the ABS population figures in June, when they go back and pick up the December quarter 2002 population movements. So, in the context of that, not great news. And as I said in the House last week, we will be taking these concerns about the revised population estimates and the significant effect they have in the Territory, in contrast with other jurisdictions, both with the ABS and the Treasurers’ meeting in March.
The Commonwealth Grants Commission estimates for GST revenue, budget balancing assistance and health care grants, according to an AAP report circulating about lunch time, say that grants will increase by $118.3m in 2003-04 compared to 2002-03. However, those increases do not reflect those revised population estimates in 2002-03 or 2003-04. The Territory estimates that, taking that population revision into account, these estimates - excluding the health care grants because it is not known exactly what size those health care grants will be - the Territory could be looking in 2002-03 to 2003-04, at about $95.7m. The $13.6m that I was talking about in the reduction reflects that comparison with projections as contained in our mid-year report based, of course, on previous projections provided by the Commonwealth.
ANSWER
Madam Speaker, I thank the member for Sanderson because it is important for me to put on the record exactly what it means. It is a case of some misfortune, I suppose, in that the Commonwealth Grants Commission 2003 update is disappointing news for Territorians, particularly when it is viewed in the context of the ABS population figures released last week.
Figures contained in the update, when considered in conjunction with the recently revised population data coming forward, reveal that the Territory may only be entitled to an extra $13.6m in Commonwealth grants for the financial year 2003-04, compared to what was projected in the mid-year report projections, based on what the Commonwealth was projecting by way of GST pool and population grants.
Under the Commonwealth grants relativities released today, it was estimated the Territory would be entitled to a $31.4m greater share of financial assistance in health care grants. However, it has to be taken into consideration that, due to those revised population estimates released by the ABS last week, the Territory grants funding for 2002-03 was revised down. Following that adjustment, it is estimated that the Northern Territory will be left with $13.6m in additional funding for 2003-04 compared, as I said, to those projections in the mid-year report.
It is also important at this stage that the figure is an estimate only, because there is the potential for it to still be reduced further. There is the Treasurers’ Conference in March, the Commonwealth budget when it is handed down in May and, after the further revision of the ABS population figures in June, when they go back and pick up the December quarter 2002 population movements. So, in the context of that, not great news. And as I said in the House last week, we will be taking these concerns about the revised population estimates and the significant effect they have in the Territory, in contrast with other jurisdictions, both with the ABS and the Treasurers’ meeting in March.
The Commonwealth Grants Commission estimates for GST revenue, budget balancing assistance and health care grants, according to an AAP report circulating about lunch time, say that grants will increase by $118.3m in 2003-04 compared to 2002-03. However, those increases do not reflect those revised population estimates in 2002-03 or 2003-04. The Territory estimates that, taking that population revision into account, these estimates - excluding the health care grants because it is not known exactly what size those health care grants will be - the Territory could be looking in 2002-03 to 2003-04, at about $95.7m. The $13.6m that I was talking about in the reduction reflects that comparison with projections as contained in our mid-year report based, of course, on previous projections provided by the Commonwealth.
Last updated: 09 Aug 2016