Why we need the Commonwealth more than ever in the 'people's republic'

It is somewhat ironic that for all the talk about territory rights and Canberrans being able to decide everything for themselves that the ACT Budget only highlighted how dependent it is on the Federal Government, especially a friendly Labor one.

The most obvious example is the GST, which is distributed to every state and territory, but in the ACT’s case, forms its single highest source of revenue.

Based on population, how much GST the ACT receives has been a running sore because the way the ABS calculates population regularly understates the Territory’s growth.

It makes a huge difference to the state of the ACT’s finances.

The number of Commonwealth grants also plays into this, and these have increased since the Albanese Government took office.

Chief Minister Andrew Barr says federal Labor gets the National Capital and its needs after a decade of Coalition rule that ran down Canberra, physically and politically.

But despite the acknowledged Canberra bashing, it still managed to help fund light rail Stage 1 through Tony Abbott’s asset recycling scheme and Stage 2A under Scott Morrison, and other, mainly road, infrastructure.

Looking at the ACT Government’s ambitious $8 billion infrastructure program, many of the projects will need a Commonwealth contribution.

That includes the just announced plans for a new stadium at Bruce and the co-located entertainment and convention centres in the city.

Ask the Chief Minister about the reliance on Commonwealth funding to get these sorts of projects over the line and he is optimistic.

He says the odds of a two-term federal Labor government are high given recent history, and there is already a precedent for the Feds to pour millions into a stadium – in Tasmania.

The Commonwealth continues to come to the party on light rail Stage 2A, and Mr Barr expects that it will step up when the needs of Stage 2B to Woden become clearer, pointing to the public transport that will be needed to move thousands of public servants in to and out of an expanded parliamentary zone. This is particularly evident in Barton where the new security precinct and several other department and agency buildings, including the new Tax Office, will be developed.

The infrastructure program highlights the dilemma of a city developed for a national purpose that is now a self-governed city-state with limited revenue opportunities but demanding top-flight health and education services and landmark sports and entertainment facilities worthy of the national capital.

Mr Barr has acknowledged that the infrastructure program needs to be staged, simply because there is not enough money and resources to run them all at the same time, one reason why the laying of tracks for light rail stage 2A will have to wait for London Circuit to be raised.

He regularly sets out the order: a new Canberra Theatre, then a stadium and finally the convention centre.

What if the Commonwealth says no?

Well, Mr Barr, as stated earlier, doesn’t believe that will happen, but the ACT would have to borrow more, finance them some other way or delay the projects.

With government projects already taking a long time to come to fruition – think the Canberra Hospital (getting there) and extending light rail – the government can’t afford to let timelines slide on its big-ticket promises.

Remember, it will also be building a new Northside Hospital and a second college in Gungahlin in the same timeframe.

The government may feel secure in a town that has not elected a Liberal government for more than two decades, but even its patience will wear thin if Mr Barr can’t deliver on his promises.

The national capital should have a modern theatre, stadium and major live music venue, and the Commonwealth should want that too.

The ACT’s relationship with whoever is in power on Capital Hill will be crucial to how soon the Territory can build these key assets.