XN000022-1984-04-25 — Page 7

WEDNESDAY, APRIL 25, 1984

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SIR JOHN POINTED OUT THAT THESE TRANSFERS WOULD LEAVE BOTH FUNDS WITH IMPROVED SURPLUSES AT THE END OF THE CURRENT FINANCIAL YEAR AND WOULD ENABLE HIM, IF NECESSARY, TO REDUCE TRANSFERS AND CONSEQUENTLY EXPENDITURE ON THE GENERAL REVENUE ACCOUNT IN THE 1985-86 BUDGET.

→WITH RECURRENT REVENUE FOR 1983-84 NOW EXPECTED TO BE $27.23 BILLION AND RECURRENT EXPENDITURE $22.94 BILLION, OUR GUIDELINE RATIO OF NOT MORE THAN 85 PER CENT FOR THE LATTER IS WELL SATISFIED. THE FIGURE IS 84 PER CENT, HE SAID.

SIR JOHN POINTS TO UPTURN IN PRIVATE INVESTMENT

* * *

THERE ARE GROUNDS FOR OPTIMISM ABOUT PRIVATE INVESTMENT IN PLANT AND MACHINERY AS WELL AS SIGNS OF LONG-TERM INVESTMENT THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, SAID AT THE RESUMED BUDGET DEBATE IN THE LEGISLATIVE COUNCIL TODAY.

AFTER DECLINING GENERALLY SINCE THE FOURTH QUARTER OF 1981, RETAINED IMPORTS OF CAPITAL GOODS INCREASED BY FIVE PER CENT IN REAL TERMS IN THE FOURTH QUARTER OF 1983, DUE LARGELY TO AN INCREASE IN RETAINED IMPORTS OF TEXTILE AND ELECTRICAL MACHINERY, SIR JOHN POINTED OUT.

HE ADDED THAT ALTHOUGH FIGURES FOR THE FIRST QUARTER OF THIS YEAR WERE NOT YET AVAILABLE, INDICATIONS WERE THE IMPROVEMENT HAD CONTINUED.

INDUSTRIAL ISTS WERE ALSO LOOKING FOR FACTORY PREMISES

TO EXPAND THEIR OPERATIONS, WITH THE FALL IN PROPERTY PRICES AND THE EXPORT-LED ECONOMIC RECOVERY RESULTING IN SOME INCREASE

IN THE TAKE-UP OF COMMERCIAL AND INDUSTRIAL PROPERTY IN

THE SECOND HALF OF 1983, SIR JOHN SAID.

+ IT IS AGAIN GOOD NEWS THAT SIGNS OF LONG-TERM INVESTMENT ARE REAPPEARING, HE SAID.

THE IMPLICATIONS OF THE INCREASED TAKE-UP, WHICH HAS REDUCED THE VACANCY RATES FOR MOST TYPES OF PROPERTY, WERE BEGINNING TO BE SEEN IN TERMS OF INCREASES IN FLOOR AREAS FOR WHICH CONSENTS TO COMMENCE CONSTRUCTION WERE BEING SOUGHT, HE SAID.

+ALTHOUGH THE FIGURES ARE VERY VOLATILE, THEY ARE INDICATIVE OF SLOWLY RETURNING CONFIDENCE IN THE AREA OF PROPERTY DEVELOPMENT,+ HE ADDED.

IN THE LAST QUARTER OF 1983, AND THE FIRST TWO MONTHS OF THIS YEAR, THE FLOOR AREA FOR WHICH CONSENTS WERE GIVEN TO START CONSTRUCTION EXCEEDED THE FLOOR AREA OF COMPLETED PROJECTS FOR THE FIRST TIME SINCE THE SECOND QUARTER OF 1982.

/+BUT BECAUSE