Page 837 - Week 04 - Tuesday, 16 June 1992

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micro-economic reform which would have meant more efficiencies in service provision. I have been interested to hear Mr Westende's ideas on the subject, but it appears to me that focusing on the economics of micro-economic reform can get in the way of people considering the social impact of economic reform.

MADAM SPEAKER: The time for the discussion has now expired.

ACTEW PRICE INCREASES
Motion

MADAM SPEAKER: Mr Westende foreshadowed that he was going to seek leave to move a motion.

MR WESTENDE (4.33): Madam Speaker, I seek leave to move the motion circulated in my name.

Leave granted.

MR WESTENDE: I move:

That the Assembly is of the opinion that the Minister should direct ACTEW to adjust recently announced price increases to a level reflecting CPI movements.

Madam Speaker, as I indicated in the previous debate, in which I had to truncate my remarks, I believe that there are savings to be made by corporatisation. For instance, the Minister did not mention that changing from Comcare to a commercially operated workers compensation scheme could save $1.5m. I believe that in an enterprise that runs its own race very significant savings can be made.

We have spent a fair amount of time on this matter already and I will not repeat what has already been said. However, I have talked to the people of ACTEW, and I am of the opinion that significant savings could be made if they were allowed to proceed on the road to corporatisation.

MR MOORE (4.35): I move as an amendment to the motion:

That all words following "Minister should" be omitted and the words "disallow increases in excess water rates, sewerage and electricity charges and reduction of basic water consumption rate" be substituted.

While the Liberals are prepared to go with the CPI, I think we have an opportunity actually to deliver a benefit to the people of the ACT and to disallow those rises in the electricity and water rates. I have pointed out that I am not averse to taxation, just to this particular method of taxation, and I would like to raise a couple of points.

An article in the Australian on 22 April pointed out that the GST will hit council charges. According to a report, the coalition is yet to detail fully which activities, including rates, would be subject to the GST provisions. It points out that councils are largely exempt from wholesale tax, and it refers to a series of other things. I think it is worth reading that report prepared by Coopers and Lybrand,


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