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Legislative Assembly for the ACT: 1996 Week 10 Hansard (3 September) . . Page.. 2975 ..

MR DE (continuing):

policy development, strategic evaluation and economic statistics. Mr Baxter has an excellent track record as an adviser to industries and governments. In addition, he is very well aware of the complex requirements of his role in overseeing prices. Mr Speaker, Mr Baxter's appointment will be part time.

I am also tabling an appointment instrument for Mr Baxter. The accompanying explanatory statement refers to the outcome of consultation with the Public Accounts Committee on the appointment. I am also pleased to announce that the New South Wales Independent Pricing and Regulatory Tribunal is to be contracted to help Mr Baxter in the review. This means that the ACT will get the benefit of the tribunal's extensive experience. The consultancy arrangement also conforms to the Government's requirements for efficient service delivery. It will help ensure that Canberrans get a first-class result. I would like to place on record my appreciation of the cooperation we have received from the New South Wales Government in arranging the consultancy assistance.

Mr Speaker and members, ACTEW has worked hard to achieve efficiencies and develop its business. The results for electricity consumers have been prices that have been falling in real terms. ACTEW has been working to remove the cross-subsidy from business users to domestic users. Corporatisation has sharpened the incentives for concluding this process. This financial year, ACTEW was able to hold its electricity prices constant. In water and sewerage, ACTEW has done much to move towards a more viable business in a highly environmentally responsive way. An independent pricing review will drive this process further.

In closing, Mr Speaker, I should acknowledge that great progress is now taking place in both competition reform and energy reform generally. The regulations provide a good basis for starting to oversee prices in the ACT. In the longer term, however, the Government is moving towards comprehensive pricing oversight legislation that will be capable of reviewing not only ACTEW charges but also those of other monopoly providers in the ACT.

MR WOOD (4.35): Mr Speaker, I will make a brief response to this; in part, from the point of view of the PAC, which was the body to which Mr De Domenico referred the appointment of Mr Paul Baxter. There was some exchange of letters between the Minister and the committee, as we had some concerns about the tabling of the regulations and the issue of regulations that should proceed before any appointment was considered. I thank the Minister for his cooperation there. I expect that the appointment will be thoroughly justified. Obviously, we have asked a further question concerning the remuneration of the tribunal, bearing in mind that we had a suggestion that we should look at some New South Wales guidelines there. I will agree with that if they are more economical than perhaps ACT guidelines. It may be that there is some interest, too, in the cost of the inquiry he is now running and in electricity pricing. The Minister might give us an indication of that at some time in the future as well.

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