Page 1684 - Week 07 - Tuesday, 29 May 1990
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corporatise the Mitchell Health Services Supply Centre. The Health Services Supply Centre occupies 9.1 hectares at Mitchell on prime industrial land valued at $1.2m. The complex was constructed in the mid-1970s and is probably the best of its type in Australia. The centre represents an investment of about $32m, employs approximately 220 staff and has an annual operating budget of $13m.
Due to earlier population projections having been grossly overestimated, the centre was designed to service hospitals for a population twice the size of what we now expect for the ACT in the foreseeable future. This means that this excellent public facility is grossly underutilised and the community has not had the opportunity to derive the full benefits of its investment. Rather, it is costing the community money.
I note, Mr Speaker, that not one member from the opposition benches is present in the chamber as I make this important statement about the future of health services and other things related to it in the ACT. Their concern really shines at this point!
Mr Kaine: I think they are having a caucus meeting.
MR HUMPHRIES: Having a caucus meeting, yes. One of them has come back. The shame has reached even him. (Quorum formed)
At present the Mitchell Health Services Supply Centre is fully funded to provide services to the health portfolio. It charges only external clients and therefore its revenue is less than $1m per annum. Also the costs to the community of the services are higher than they should be because of the inefficiencies resulting from underutilisation and diseconomies of scale.
Mr Speaker, as I said in my original statement, it will not be possible for the centre to access the private sector markets which are essential for expanding production to economic levels while it operates within departmental frameworks. The centre must be able to develop commercially if it is to meet the efficiency levels which the ACT community has a right to expect. It is for this reason that the Alliance Government decided to corporatise the centre and now is the time to implement this decision.
Last Saturday I announced the establishment of an interim board of management to assist the Government with the early transformation of the centre to a corporate business, operating in a truly competitive environment and developing new marketing and employment opportunities which will benefit the people of Canberra generally. The interim board will be chaired by Mr Jim Service, a prominent ACT property manager and consultant. He will also be joined by Mr Ross Divett, General Manager, Australian Property Group; Ms Lesley Piko, a certified public accountant; and Mr David Ritchie, Assistant Secretary, ACT Trades and Labour Council.
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