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Legislative Assembly for the ACT: 1996 Week 11 Hansard (26 September) . . Page.. 3608 ..

(2) The consultancy was based on the following terms of reference:

. advise and make recommendations on the merits of introducing competitive tendering for services currently provided to the ACT Government by Totalcare, including:

- the financial implications of such an approach in terms of the potential savings to the Government as purchaser of these services;

- the impact on the company and the Government as business owner in terms of dividend, return on assets and asset value (including business goodwill);

- the returns to Government as taxing authority, including pre and post competitive tendering receipts of payroll, land and tax equivalent payments; and

. advise and make recommendations on options available to Totalcare to optimise revenue, production levels, profitability and return on investment for the company, including consideration of:

- the most appropriate legal and financial structure for a competitive Totalcare, given its range of activities and taking into account the nature and distribution of physical assets on the site and overheads incurred in the operation of the production complex;

- current employment arrangements for staff of Totalcare and the appropriate basis of employment; and

. advise and make recommendations to the ACT Government on options for structuring the ownership of Totalcare with particular reference to its operation within a competitive environment, including the most appropriate financial relationship between the ACT Government and a competitive Totalcare.

(3) The consultant's report contains commercially sensitive information and is not available for release. In brief, the consultant's report provided:

. a critical assessment of Totalcare's existing pricing arrangements;

. reviewed Totalcare's current and projected operations against key performance indicators which were benchmarked against private industry comparables;

. assessed the viability of each business and Totalcare as a whole.

One of the major findings of the review was that Totalcare has significant excess capacity in its operating facilities and recommended that the ACT Government consider consolidating other agencies with Totalcare.

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