Chief Minister Katy Gallagher has rejected calls from the territory's business community to cut spending on public transport to help the ACT economy.
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But Ms Gallagher says the ACT government is looking ''across the board'' for savings in its June budget after the territory economy's ranking dipped to equal third in the latest State of the States report.
The ACT Chamber of Commerce on Monday called for the government to cut its subsidy to ACTION buses, rationalise territory directorates and boost investment in the business sector after the report showed the ACT had the second weakest trend in annual economic growth.
Ms Gallagher blamed the weaker performance on ''uncertainty'' in the Commonwealth public service and said: ''There's not a great deal I can do about that until the Commonwealth government makes some decisions,'' she said. ''In many ways if you talk to people about Canberra, one of the worst things for us is uncertainty.''
Ms Gallagher rejected calls to slash government spending on ACTION, calling cuts to social infrastructure such as public transport unrealistic and which would not deliver the required outcomes. But the government was open to ideas on how to make territory directorates more efficient ahead. ''We're looking across the board, as we do every budget,'' Ms Gallagher said.
The ACT opposition said the government had missed opportunities to develop the business sector, forcing some companies to take their work interstate.
Treasury spokesman Brendan Smyth said the government's reforms had been ineffective at building the private sector and pointed to light rail as an example of its ''wrong priorities''.