CARNELL READY TO CALL SNAP POLL OVER DEADLOCKED BUDGET

ACT Chief Minister Kate Carnell has pulled out of a delegation of
Australian leaders travelling to London and has threatened to call a
snap election to break the impasse over her Budget.Ms Carnell was due
to travel to Britain this week to join John Howard and other state and
territory leaders for the Centenary of Federation celebrations.

But she is now expected to continue negotiations with Independent MPs
this week. Ms Carnell said on Saturday she would go to the polls
within four weeks if she was unable to convince either Labor or two
Independents to pass her minority Government's $1.6 billion Budget.

At the centre of the crisis is $800,000 set aside in the Budget to
fund a heroin injecting room in central Canberra.

Independent MLAs Dave Rugendyke and Paul Osborne - a former Canberra
Raiders star - who normally back the minority Liberal Government,
sided with Labor and Greens MLA Kerrie Tucker to block the Budget last
week.

Mr Rugendyke and Mr Osborne are strongly opposed to the proposed safe
injecting room, while Labor and Ms Tucker support the injecting room
trial but not the Government's overall Budget.

A spokesman for Ms Carnell said yesterday the Chief Minister had
decided two weeks ago to stay in Canberra to spend time with her
family during the school holidays.

Ms Carnell told local media on Saturday she was prepared to call an
early election as a last resort. She had briefed federal Territories
Minister Ian Macdonald, who could go to the Governor-General
requesting a poll.

"If there is no way for the Government or an alternative government to
implement (the Budget), then there is no way forward," Ms Carnell told
the Canberra Sunday Times.

It is unlikely Labor could secure the numbers on the floor of the ACT
assembly to form government.

Ms Carnell has warned her Government would start to run out of money
within four weeks.

But Labor leader Jon Stanhope said yesterday Ms Carnell was being
precipitous and had not tested other options for resolving the crisis
on the floor of the assembly.

"She's not shown any leadership at all, she's shown no way out other
than an early election," Mr Stanhope said.

Mr Stanhope said Ms Carnell could split the money for the injecting
room from the Budget, which could be passed separately.

A bill for the safe injecting room could then be voted on and passed
by the Government with the support of Labor, he said.

Even if the ACT did go to an early poll, the territory's constitution
requires a further poll be held in October 2001.