ACT Chief Minster Jon Stanhope has given his strongest indication so far that the territory's budget may go into deficit to cushion Canberra's economy from the global financial crisis.
Mr Stanhope and Tourism Minister Andrew Barr will meet business, tourism and property leaders this morning to brainstorm ideas for insulating the ACT economy against tough times ahead.
The ACT Business Council will urge the Government to make a greater effort to hire Canberra IT contractors, who are expected to bear the brunt of the latest round of cuts by Finance Minister Lindsay Tanner's Razor Gang.
Mr Tanner yesterday announced the Federal Government would implement in full the recommendations of the Gershon Review of the Government's use of information and communications technology.
This includes reducing ICT contractors by 50 per cent over the next three years, for a saving of about $400 million annually.
Business Council chief executive officer Chris Faulks said this would hit Canberra harder than any other capital city. ''The reality is more than half of the employment in the ACT is in the private sector and a large proportion of that provides services back to the Federal Government,'' she said.
Industry leaders will urge the ACT Government's economic stimulus round table to bring forward its $1billion infrastructure program announced in this year's budget to keep jobs and activity going.
Mr Stanhope said going into deficit might be taken out of the Government's hands because of what was happening nationally and internationally.
''It's a very live consideration,'' he said. ''At this stage that's a possibility to which we're open.''
Ms Faulks said recent, sudden closures of three small Fyshwick companies showed Canberra could ill afford to reject new business ventures such as the data centre and airport freight hub if they complied with planning regulations.
Last week Walter Turnbull Canberra, which employs 200 people providing business and financial services, shed eight staff.
Chief operating officer Vicki Williams said the firm had geared up for growth that did not eventuate due to the global financial crisis.
ACT Chamber of Commerce chief executive Chris Peters said skilled people retrenched in the downturn would be employed by other firms at different stages of their growth cycles.
Retailers who had taken a gamble with new shop fit-outs could be in for a tougher time than businesses that upgraded five years ago.
Mr Peters said the ACT Government should reverse significant funding cuts it made two years ago to business support services, which were now crucial for small, inexperienced operators coping in a harder climate.
Building and property sectors are urging the Government to overcome planning blockages in the ACT Planning and Land Authority.
Master Builders Association chief executive John Miller said ventures ranging from new homes to major projects needed faster approval.
Mr Stanhope said the round table was not about the Government suddenly being full of ideas or cashed up and willing to contribute cash to initiatives.
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