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Legislative Assembly for the ACT: 1996 Week 6 Hansard (23 May) . . Page.. 1735 ..

MR KAINE (continuing):

If we then went on and said that he is accountable for the following matters, it would have been patently obvious what was meant and we would not need to be talking about all this. If we could simply take a proposal that we amend it by deleting "responsible", second-time appearing, in subclause 31(2) and replacing it with "accountable", it would be fine. I said that we were being semantic.

Amendment agreed to.

Clause, as amended, agreed to.

Clauses 32 to 37, by leave, taken together, and agreed to.

Clause 38

MS TUCKER (5.57): I move:

Page 18, line 5, add the following subclause:

"(5) A financial management guideline that prescribes an investment for the purposes of paragraph 38(1)(e) is a disallowable instrument for the purposes of section 10 of the Subordinate Laws Act 1989.".

Mr Speaker, this amendment calls on the Government to table in the Assembly any financial management guideline which prescribes an investment. I want to make that point quite clear. It is not about tabling any investment; it is about tabling the financial management guidelines as disallowable instruments. We were concerned that paragraph 38(1)(e), which allows the Treasurer to invest "in any prescribed investment", is very broad and open to potential misuse. We do not know who can prescribe such an investment, or who Treasury has to let know if they have prescribed such an investment.

We have probably all heard about the financial debacles of US councils, such as Orange County, and presumably these resulted from some poorly monitored investment clause in the relevant legislation for the municipality in question. I think, as a minimum precaution, these financial management guidelines, which are the basis for enabling an investment under paragraph 38(1)(e), should be open to scrutiny by the Assembly. The Assembly may also wish to refer such a guideline to the Public Accounts Committee for consideration.

The issue of where we invest the Territory's money is very important. It is important from the point of view of not only the security of taxpayers' money but also ethical questions. I think it is entirely appropriate that government lead the way in promoting so-called ethical investment. At a national level, I think serious consideration needs to be given to directing at least a small proportion of our superannuation funds into investments which promote the development of clean, green Australian business, for example. Some in this place may believe that the question of investment is solely up to the Executive. The Greens believe that, in the name of open and accountable government, this amendment should be supported, as it allows scrutiny and disallowance by the Assembly of financial management guidelines.

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