We all want a strong economy for Canberra. A strong economy is good for the government and is good for Canberra.
A strong economy also supports families by providing better job opportunities, higher wages, affordable goods and services, access to credit, and financial stability. These factors help families improve their living conditions, plan for the future, and enjoy a higher quality of life.
A strong economy provides a stable footing for the government to provide the essential services that Canberrans expect. Services such as an effective healthcare system and quality education – supports for those living with a disability, equipped front line services and other basic public services.
When a government provides these services effectively, it creates a place where people want to visit, where people want to live. A place where they want to start a career, and a place to progress their career. A place where they stay to raise a family, or start a business.
Canberra should be that place.
When the government provides a strong economy, this provides the private sector with the conditions needed to succeed, such as higher demand for goods and services, access to financing, a skilled workforce, and opportunities for expansion.
A successful private sector can see more business start-ups, can be innovative that then creates jobs, and lead to individual wealth and further opportunities for investment.
It creates security and raises the standard of living.
But to do all this, we need a strong economy.
The Canberra Business Chamber recently stated that over recent decades Canberra has developed from a city focused on supporting the public sector, to one with a far more diverse economic base.
Canberra’s private sector is made up of over 36,000 private business that include but not limited to a strong retail market, tourism, hospitality and accommodation, tertiary institutions and training, financial services, fitness, sporting organisations, arts and creative industries – just to name a few.
Canberra is visited by over 5 million people per year.
We have over 1,700 retail shops
There are over 1,100 cafes and restaurants for Canberrans to choose from.
There are 47 non-government schools in the ACT.
There are at least 60 different sporting groups
There were 19,437 international students enrolled in the ACT in 2024.
There is currently a Netflix blockbuster, Apex, being filmed here in the ACT, with Hollywood superstars, Charlize Theron, Eric Bana and Taron Egerton. And we previously hosted the filming of Liam Neeson’s Blacklight in 2021, which for the 6 days they were shooting clocked up to 2 million in revenue.
Canberra has great potential, if it is just given the opportunity.
There was a recent article in the Canberra Times with the headline “Future bleak for businesses”
Chief executive of the Canberra Business Chamber, Greg Harford, said
“Times are really challenging out there, and I think a lot of people don’t quite understand how tightly many businesses operate”
Another business owner said, the current climate is simply not sustainable.
A third of business owners say, it’s harder to do business here in the ACT compared to other jurisdictions.
Just one example of this is that the Workers’ Compensation scheme in the ACT is more costly than equivalent schemes in other jurisdictions. This is a key pain point for business, driven by the uncapped nature of potential liability here, and the lack of time limits for lodging claims.
Business owners who operate in both ACT and NSW have reported that their ACT workers’ compensation insurance costs 47 per cent more than in New South Wales.
One business sector that is struggling mainly due to Government inaction is the building and construction industry, which has not been given the opportunity to operate effectively. Noting:
- The ACT now ranks second-last in key construction and housing metrics
- New dwelling starts in the ACT are down nearly 50% compared to the decade average, and
- Construction work fell by 10% in the ACT during the last year
We attribute this decline to the failings of the ACT government. It has failed to deliver effective government policy, and it has failed to deliver a strong economy.
In 2023, the ACT was stripped of its AAA credit rating, down to AA+, because of its poor budget management. The ACT government have more recently been told that “their approach to fiscal discipline appears increasingly loose.” That’s not what you want to hear about the ones in charge of the purse strings, is it?
Anyone who runs their household finances knows the importance of managing a good budget and the importance of avoiding a poor credit rating. A poor credit rating can create a range of obstacles for an individual, from higher costs on loans to limited housing options and even difficulties finding employment.
It is no different for the government. This government’s poor financial management has created obstacles to providing the essential services that Canberrans expect. In the end, Canberrans once again pay the price.
The Canberra Liberals have called on the ACT government:
- To urgently develop a plan to reduce government debt
- To establish an independent review panel, and
- To Introduce fiscal and regulatory reforms
This is a great step going forward to improving the ACT’s financial credibility and to get Canberra back on track.