Today's round-table meeting between the ACT Government and the business community will be a key barometer of confidence in the territory. However, it must do more than tell us what is happening now: it should give clear indicators on short- and medium-term actions to insulate the local economy.
The challenge facing Chief Minister Jon Stanhope is to keep the ACT growing as the national economy slows. A top priority should be putting out ''open for business'' signs on the NSW border to counter the impression that investors will receive a frosty reception from a minority government beholden to the Greens' balance of power.
The debacle over the data centre and auxiliary gas-fired power station cannot inspire confidence from outside developers. The Government trampled into what was supposed to be a transparent selection process and instantly sparked an outbreak of nimby-ism.
The stalling of the data centre project means today's business summit will be an important indicator of whether damage has been done to investor confidence. It is a fragile commodity, as demonstrated by the slump in stockmarkets reacting to the global financial crisis. Stanhope is playing down any immediate announcement of funding for projects from the meeting and says he is looking for discussion, ideas and partnership.
Another significant milestone for the territory's future is the imminent decision on responsibility for planning. The demarcation disputes between the National Capital Authority and the ACT Planning and Land Authority will be addressed by Home Affairs Minister Bob Debus in his response to the report on the NCA. It is to be hoped there will be resolution to the uncertainty over the maintenance of roads in the Parliamentary Triangle.
The airport roadworks are making good progress and it is hoped work to replace the notorious Russell roundabout will begin this year, as promised. These projects show it's not all doom and gloom for the ACT and we should heed the advice of Reserve Bank governor Glenn Stevens, who says the biggest mistake we could make would be to talk ourselves into recession.
The territory is benefiting from lower interest rates and a higher first-home owners' grant. These factors should allow more people into the housing market. Working against this trend is the natural instinct to rein in the household budget when dark clouds are on the economic horizon.
Curiously, or perhaps not, we are being urged to spend our way out of gloom. Grandparents are expected to rush to the mall on Monday week when the promised one-off bonus payments materialise. The $1400 to single pensioners and $2100 for pensioner couples are a core element in Prime Minister Kevin Rudd's expensive bid to boost the pre-Christmas retail trade and keep the national economy out of recession.
Stanhope does not have the same access to taxpayer-funded largesse to boost the local economy, but he has taken positive steps such as reducing payroll tax and stepping up land releases. The second initiative is of critical importance because of the ACT's heavy dependence on the mortgage belt.
Today industry groups will urge Stanhope to bring forward the roadworks promised in the budget and to support local IT contractors, to counter the expected impact of the Gershon Review. The ACT has successfully marketed itself as an attractive hub for information technology but the Gershon Review into Federal Government technology spending advised halving expenditure on contractors over the next two years as part of a plan to save $100 million.
What positives can we turn to as we heed Stevens's advice in the interests of the territory?
For a start, there is a little-known benefit for the ACT from the decision by the Council of Australian Governments in July to cut 14 more areas of red tape as part of Rudd's vision of a ''seamless national economy''. Also, ACTPLA has scrapped the need for development applications for new homes. These are small examples of the type of leadership needed for the territory to develop a reputation that investment is welcome and approvals can be obtained quickly.
The Stanhope Government's decision to invest in refurbishing the convention centre is paying off, with bookings in the first quarter the best in five years, an outcome that has been helped by the opening of two new five-star hotels. More marketing is therefore justified to showcase the territory as a welcome destination for national and international conference delegates. This niche market shows huge potential for growth, building on the attractions of Canberra's clean environment and relatively uncongested traffic.
For now, Stanhope's advice is to do Christmas shopping in the ACT and spend part of the summer holidays here. The motto ''think globally, act locally'' never loses its value.
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