The only significant mineral resources in the territory are sand and rock for building materials. Agricultural resources are modest because of the generally poor quality of the soils. The pine plantations on the lower hills in the northern part of the territory provide some of the softwood used in the local building industry. All energy supplies are imported.

Manufacturing

Manufacturing has been declining since the late 20th century and employs only a small proportion of the workforce. Production is primarily for local consumers, the construction industry, government, and other local activities. The largest industry is paper and paper products, which includes a large printing industry and employs more than a third of the local manufacturing workforce. Other firms produce food and beverages, timber and wood products, and metal products for the local market. There is a small but growing high-technology sector.

Services

Service activities are an important and growing part of the economy. Government administration and defense claim the largest segment of the service sector, followed by property and business services, health and community services, and education. Other significant components of the sector include those that interact directly with government, such as the media, lobbying groups, and national associations. With the head offices of all its departments and many other authorities located in Canberra, the Australian national government is the main producer of services for export from the territory. The government of the territory itself provides health, education, cultural, and other services not only to its own residents but also to those in surrounding areas of New South Wales. Excluding wholesale and retail trade, nearly three-fourths of the territory’s employment and income are generated by the service sector.

Tourism is supported by dozens of establishments that collectively can accommodate thousands of guests. Most visitors are attracted by the national parliament and other federal institutions, embassies, museums and galleries, and Canberra’s reputation as a planned city. Accommodations, restaurants and cafés, and cultural and recreational services alone account for roughly one-tenth of employment in the territory and a small but significant amount of total income.

Transportation and telecommunications

Canberra’s transport links with the rest of Australia are provided mainly by road and air and to a limited extent by rail. Direct and frequent air services to Sydney and Melbourne connect to services to other parts of Australia and to overseas destinations. Apart from bulk commodities moved by rail, road transport accommodates most freight movements to and from Canberra as well as personal travel by bus and car. The quality of the linking roads had been greatly improved by the early 21st century, reducing the time taken to travel to other parts of the country. Rail services to Canberra are provided through a spur line that joins the main Sydney-Melbourne line 40 miles (65 km) northeast at Goulburn.

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Canberra has a well-developed network of roads and streets that provide for fast travel between the urban districts. High-speed expressways skirt the districts, within which arterial roads follow routes between suburbs, leaving streets within the residential areas relatively free of through traffic. In the urban areas, travel is entirely by road and predominantly by private car. An extensive network of bus routes provides relatively infrequent service, and only a small proportion of the citizens use buses to commute to work; even fewer people walk or ride bicycles.

Government

Before 1989 the Australian Capital Territory was governed directly by the federal government, though there were partly or wholly elected advisory bodies at various times from the 1930s. From 1989 the territory’s government has had responsibility for the functions performed elsewhere in Australia by both state and local governments. Specific areas of national significance are designated for planning control by the federal government. Unlike the situation in the states, the federal government holds a veto over territory government legislation. The 17-member Legislative Assembly is elected by proportional preferential voting in three electorates for a three-year term. Although major national political parties (Labor and Liberal) have contested each election, representatives of other local groups usually have held the balance of power in each assembly. The executive branch of the government consists of a chief minister and up to four other ministers appointed by the chief minister from the Legislative Assembly. Federal grants generally have been the largest source of revenue, but taxes also have generated a significant portion of the territory’s funds. Health, education, and urban services are the main areas of expenditure.

Health and welfare

The territory has a wide range of health services, and the standard of health in the community is high. Death rates are lower than the national average, mostly because of the relative youth of the population, but life expectancy also is slightly higher than the Australian average. In addition to several public and private hospitals, there are nursing homes, special medical and dental services for children, baby health centres, and community health centres.

Welfare services are provided for a range of groups with special needs. Public housing, which constitutes less than 10 percent of all occupied dwellings, assists those with low incomes, and there are special programs for the homeless for crisis accommodation. Children, youth, foster care, families, and women are the focus of special services. Community care is provided for the elderly and those with disabilities, as is child care for working parents and transport service for the physically handicapped.