Page 5195 - Week 16 - Thursday, 28 November 1991
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Totalcare has the potential to generate new employment opportunities, particularly for unskilled workers, with subsequent economic benefits for the ACT. The provisions made by the Bill for the retention of leave benefits by public servants who become employees of TOCs have been developed in close consultation with the Trades and Labour Council and the relevant unions, as indeed have other employment arrangements for which it has not been necessary to legislate. Our overall approach is one which appreciates that existing employees, as far as possible, should not suffer because of reforms undertaken in the interests of the broader community.
At the same time, our approach recognises that Totalcare Industries Ltd and any future TOCs, if they are to operate in a way that takes advantage of their company status, must have the freedom to negotiate employment arrangements for new staff as far as practicable within the same statutory framework as other companies. Accordingly, for new staff, relevant private sector leave entitlements will be the minimum entitlements; but the Government recognises that the actual level is open to negotiation between the union movement and Totalcare. The same principle applies to other employment conditions. The Government will, by virtue of its controlling shareholding in TOCs, ensure that appropriate industrial relations and employment practices are followed by the new company.
The Bill before the Assembly recognises that the pursuit of equal employment opportunity principles is integral to good management and to the maximisation of the range of human skills available to any organisation. The Bill places Totalcare and any future TOCs in the same position as the private sector regarding affirmative action principles. As the Commonwealth affirmative action legislation does not extend to other EEO target groups, ministerial shareholders in TOCs will request voluntary compliance with government EEO policy for other groups. The same approach will be adopted by shareholders in respect of other good employer practices of the Government.
Transitional provisions aside, the last major provision in the Bill seeks to ensure, in recognition of the fact that TOCs and their predecessor organisations are essentially one and the same for the purposes of ownership of property, that Federal capital gains tax does not apply merely because of the fact of corporatisation. I now present the explanatory memorandum for this Bill.
Debate (on motion by Mr Kaine) adjourned.
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