Page 3530 - Week 11 - Thursday, 14 October 1993
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The substance of this document refutes all of the arguments put by Mr Kaine and indeed those that were put by Mr Evans in last week's Canberra Times. I now seek leave to table that document.
Leave granted.
MR LAMONT: I would additionally seek leave to incorporate it in Hansard.
Leave granted.
Document incorporated at Appendix 4.
Question resolved in the affirmative.
TOTALCARE INDUSTRIES LTD - STATEMENT OF CORPORATE INTENT
Paper and Ministerial Statement
Debate resumed from 15 June 1993, on motion by Mr Connolly:
That the Assembly takes note of the papers.
MR DE DOMENICO (5.09): Madam Speaker, Totalcare Industries Ltd was incorporated in 1991 as an unlisted public company and it is, I think, the only government owned corporation left operating in the ACT. The success of the corporatised Totalcare is testimony to the undeniable fact that corporatisation does produce a better government business. This leaves many people still gasping and wondering why the ACT Government was so violently opposed to corporatising government operations. It was so passionately opposed, Madam Speaker, as to move, as we have mentioned here before, to return a perfectly successful ACTTAB to the fold of the public service. The orgy of ideology which dictates to the Government that corporatisation is morally wrong is not borne out by the facts of the situation. Both ACTTAB and Totalcare were, and are, delivering back to the public purse via increased efficiency and service delivery and via paying taxes and profits back to the Government.
Madam Speaker, Totalcare's statement of corporate intent shows projected revenue from the core operations of sterilising, linen hire and waste management at $10.48m in 1992-93, growing to $10.925m in 1993-94 and more than $11m in 1994-95. Profitability is forecast to triple over the next three years, with subsequent returns to the public purse growing proportionately. Tax payments - including payroll tax, company tax, motor vehicle registration, sales tax and land taxes - are forecast to increase from $585,000 in 1992-93 to $683,600 in 1994-95. Madam Speaker, from 1 July 1992 to 30 June 1995 net profit after tax is expected to increase from $61,000 to $188,000. The long-term aim is to return a dividend to the Government, ensuring a commercial return on the Government's investment.
On the other side of the balance sheet the projected trading loss of more than half a million dollars forecast in May 1992 was actually reduced to $96,000. This is despite the fact that some employees are under public service award conditions and that many of Totalcare's operations are run on a break even only expectation of performance. As more and more of the work force is employed on a contractual basis or other bases the savings will be higher, as will the returns to the ratepayer. Imagine what could be possible if other government services underwent similar transformation.
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