Page 1911 - Week 07 - Tuesday, 14 June 1994
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household mortgages and so on. That does not apply in this case. The assets that we are dealing with here constitute advances to the bank's corporate customers, as I have said. The Territory does not impose stamp duty on these types of transactions. We do not impose loan security duty, and the corporatisation of the bank therefore will have no effect on our revenue as such.
Mr Kaine asked a question about the cost of our legislation. Certainly, there has been a cost involved, an administrative cost, in getting the Bill to this stage, having it printed and distributed in the Assembly, sitting to consider it and so on. However, I would like to point out that the major work in the preparation of legislation has been done by the South Australian Government. As they have asked State and Territory governments around the country to pass appropriate legislation, it seems reasonable that the South Australian Government has done the drafting work and so on. They provided the model Bill and the computer software to assist the ACT and other jurisdictions in the preparation of complementary Australia-wide legislation. That task, which is usually the most resource intensive task in any piece of legislation, was done by South Australia. For that reason we will not be seeking reimbursement from South Australia for the passage of this Bill. Members will be aware that when we have facilitated other such corporate restructurings we have asked the corporations involved to share the cost of that legislation. We will not be doing so on this occasion because of the major contribution by South Australia to the work that is before us now.
Madam Speaker, the effect of this legislation will be to negate the need for each individual arrangement, contract and mortgage to be tediously renegotiated. The Bill will therefore bring about considerable savings of time and of effort for the bank's ACT customers - all corporate customers, as I have pointed out. So far, New South Wales, Victoria, Queensland and Western Australia have similarly modelled legislation in varying stages of readiness. I believe that it is the intention of all of them to introduce it by 1 July this year when the State Bank of South Australia is brought under the supervision of the Reserve Bank.
Madam Speaker, Mr Kaine asked, finally, what kind of protection we were offering to the customers of the State Bank of South Australia under this legislation. I want to make it clear that I can speak only for the ACT Government and, as I have pointed out, we will not be imposing any sort of penalty on those customers. I would also like to remind members that the Bill that we are looking at tonight also refers power over the banking business to the Commonwealth so that the bank can come under the prudential supervision of the Reserve Bank from 1 July 1994. So there is that additional safeguard for the customers of the State Bank of South Australia. Madam Speaker, I think that about sums up the situation at the moment. As I say, I have put forward this legislation to facilitate the actions of another government. I believe that it is only appropriate to do so, whether or not we agree with the actions of that government.
Mr Cornwell: You could not agree with the actions of the previous government in South Australia, Chief Minister.
MS FOLLETT: I thank Mr Cornwell for that contribution, Madam Speaker. It has been a long time coming. It has taken him 10 minutes to think of it. Madam Speaker, I commend the Bill to the Assembly.
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