The deficit is again under scrutiny with some journalists arguing it is the cause of inflation and interest rate increases. This is too simple.

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The problem of rising inflation and interest rates is affecting all economies. The main causes of inflation internationally are related to wars in Europe and the Middle East and the attacks on free trade (including tariffs).

The finance minister rightly claims government spending is not the main driver of inflation. She also acknowledges permanent deficits are unsustainable.

Deficits can be reduced by lowering expenditure and increasing taxes. Both have an effect on economic activity. Wiping a deficit immediately is possible but politically fraught. In per capita terms GDP growth is negative and in aggregate terms barely growing.

A more aggressive policy of expenditure restraint and/or tax increases is risking recession. The better than forecast deficit outcome is welcome.

Six billion dollars on a $30 billion deficit is a significant reduction. But what would a more aggressive approach look like? Seventy per cent of the budget is expenditure on health, social welfare, education, defence, and economic affairs and infrastructure. None of these areas are easy to cut.

Yes, stopping all expenditure on highways and infrastructure and primary industry assistance would assist in reducing the deficit. But at what cost?

Likewise a 15 per cent gas tax would help but it also involves significant negatives for our ability to import fuels. Some reality is required here. The quick fixes are difficult.

Patrick McMahon, Wanniassa

I refer to the title of the editorial of September 28. ("Families are bleeding at the bowser while Canberra does nothing.") I would prefer to think that you actually meant "Families are bleeding at the bowser while the federal government does nothing". There are enough people across Australia ready to lay the blame on Canberra (which implies the general population of Canberra) instead of the federal government, without our own newspaper joining the chorus.

David Markwick, Dunlop

Review ACT government

The Canberra Times article outlining Nick Tyrrell's proposal for a directly elected chief minister and a broader pool of professional ministers highlights something that can no longer be ignored: the way the ACT is governed deserves a thorough and independent review. I strongly support the call for that review to proceed as a matter of urgency.

For more than three decades, Canberrans have operated under a system modelled on Westminster politics, yet the ACT is fundamentally different to a conventional state. We are a city and territory, with many of the responsibilities of a local government combined with those of a state.

The Legislative Assembly should not be assumed to be the only, or necessarily the best, way of governing Canberra. Mr Tyrrell's proposal, the possibility of local councils and other alternatives should all be considered, without starting with the assumption that the existing system must remain. Canberrans should ultimately have a meaningful say in what system best serves them.

The assembly's current inquiry into electoral representation is an important opportunity. But it should not become another exercise that produces a report which then gathers dust.

The Commonwealth should ensure a comprehensive and independent review of ACT self-government is undertaken,........

© Canberra Times