MPS BLOCK FUNDS OVER HEROIN TRIAL

The ACT's minority Liberal Government could be brought down over a
heroin injecting room it did not originally support after the
Opposition and Independents blocked supply late on Thursday.

The ACT Chief Minister, Ms Kate Carnell, described the situation as a
constitutional crisis, saying the Government would have to resign if
the Budget was not passed.

There was only enough money to run existing programs in the ACT for
the next six months and no money for new programs, she said.

Parliament is not due back before August but the Labor Opposition will
to try to get a petition together of nine of the 17 MPs to pass a
no-confidence motion in Ms Carnell and force her to resign, after
which it would attempt to take government.

The legislation underpinning the trial was initially supported in the
Assembly by Labor and by Ms Carnell and the Urban Services Minister,
Mr Brendan Smyth, who crossed the floor in December.

The trial was allocated $800,000 from the $1.6 billion ACT
budget.

Ms Carnell did not rule out introducing legislation to overturn the
trial.

"That's in the hands of the Assembly. We'll be taking directions to
determine what direction they want to take."

The ACT Assembly comprises: six Liberals; six Labor; a United Canberra
member, Mr Trevor Kaine; an Independent, Mr Michael Moore; two Osborne
Independents, Mr Paul Osborne and Mr Dave Rugendyke; and a Green, Ms
Kerrie Tucker.

Siding with Labor to oppose the budget were Mr Osborne, Mr Rugendyke
and Ms Tucker, although Ms Tucker, like Labor, supports the heroin
trial.

Mr Osborne could not be contacted yesterday, but Mr Rugendyke said
that if Ms Carnell wanted to remain in power she would have to drop
funding for the heroin trial.

The Opposition Leader, Mr John Stanhope, defended Labor's decision to
oppose the Budget, despite its support for the injecting trial, saying
it was an Opposition's right to oppose a Budget.

If Labor took office it would move the Budget without the heroin trial
and then try to move the heroin trial separately.

Ms Carnell said the Government would negotiate with Assembly members.
She has refused to resign and no early election can be called because
the fixed term does not end until October next year.

But there is an opportunity in the Self-Government Act for the Federal
Government to force an early election if the Assembly becomes unworkable.

A spokesman for the Federal Territories Minister, Senator Macdonald,
said it was too early to consider taking action.

The defeat of the budget will stop an $8 million payment due next week
to Impulse Airlines, which has recently started flights from Canberra
to Sydney.