Page 1317 - Week 05 - Thursday, 26 April 1990
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framework of the Commonwealth Government's training guarantee proposal, each industry should examine the most suitable funding model for that industry. My colleague the Minister for Finance and Urban Services is currently considering this recommendation.
The building and construction industry has proposed a model for the long term involving a levy based on the contract price to be collected through the building permits process. This process will also need to be considered in the context of the Government's overall attitude to future industry funding of training. However, pending decisions regarding the funding of training by all Territory employers, conversion of part of the long service leave levy for training is a useful start and can only be an advantage to the building and construction industry.
The Bill provides for a 10 per cent portion of the levy to be set aside, with effect from 1 July 1989. It extends the functions and powers of the board to allow it to administer the training fund. This makes use of the existing infrastructure, can be undertaken at little cost and has the support of both employee and employer organisations. It provides the Minister with a discretionary power over the disbursement of the training funds and it substitutes the reference to the Australian Government Actuary with the words "an actuary appointed by the ACT Treasurer".
The Bill also includes an amendment concerning the investment of board moneys. At present, under section 23 of the Act all contracts over $100,000 must be approved by the Minister. Until mid-1988, the board operated under legal advice that this provision did not apply to investments of board funds. In the 1988 report on the board's operations, the Australian Auditor-General drew attention to a new interpretation from the Australian Attorney-General's Department which stated that an investment was considered to be a contract and, as such, each investment over $100,000 must be approved by the Minister. All current board investments exceed that amount, and the necessity to obtain the Minister's approval each time an investment is made is considered to be cumbersome and unnecessary.
The Government accepts the advice of the ACT Treasury that, given the short time frame in which the money market operates and given that such investments occur regularly and the form of investment is both safe and liquid, then ministerial approval is not necessary. The Bill allows the board to invest moneys in excess of $100,000 without requiring ministerial approval, provided that such investments are made in accordance with section 90 of the Audit Act of 1989.
The Bill makes a significant contribution to the building and construction industry and provides for better administration procedures to the Building and Construction Industry Long Service Leave Board. It has the effect of
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