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Legislative Assembly for the ACT: 1997 Week 7 Hansard (26 June) . . Page.. 2262 ..

MR MOORE (continuing):

Mr Speaker, I think that what we will actually see as a result of this is a shift of money from such enterprises through to the Government. That, of course, is something that this Chief Minister does not need. She is quite adept at pulling $100m out of such businesses or at finding another way, such as selling the light poles to ACTEW, to pull the money out. Interestingly enough, this has that effect; but, at the same time, it means that when such businesses are competing commercially they do not automatically have as huge an advantage over ordinary businesses as they might. It is interesting, because since I have been in the Assembly one of the most common complaints I have had from businesses is about government-owned corporations actually competing with private business in an unfair way. I think this will go some way to address that.

MRS CARNELL (Chief Minister and Treasurer) (8.33), in reply: Thank you very much, Mr Moore. On the basis of my not being able to actually get back there to get a briefing - - -

Mr Moore: I could keep going for a while.

MRS CARNELL: I would suggest, Mr Moore, that you actually walk around there and find out what the answer to your question is. Mr Speaker, it is a unique approach; but earlier today we did say that this Assembly acted somewhat differently from other assemblies.

Under the national competition policy adopted by the Commonwealth, State and Territory governments, the ACT is required to subject Territory-owned businesses to a tax equivalent regime. This is to ensure that such businesses are liable for the same taxes and charges as private business. I think it is something that we would all agree is very appropriate. While the Territory Owned Corporations Act 1990 does require government-owned corporations such as ACTEW and Totalcare Industries to pay sales and income tax equivalents to the ACT Government, it does not currently provide adequate guidelines as to how such taxes will be assessed and paid. This Bill addresses these deficiencies by introducing provisions that deal with such administration issues as the timing of payments, assessment, penalties and appeal rights.

Mr Speaker, the Bill also incorporates into the Act the Treasurer's instructions for the tax equivalent regime. These detailed instructions set out how and on what basis both income tax and sales tax equivalents will be assessed, and they have been developed in consultation with ACTEW and Totalcare. Mr Speaker, the passage of this Bill will ensure that the ACT achieves a tax equivalent regime, as required under the national competition policy. I am very pleased that those in the Assembly support this Bill.

I hope that Mr Moore has actually received the answer to his question in the course of this debate.

Mr Moore: I will be happy to explain it to you later.

MRS CARNELL: I am very happy to have it explained to me later. Mr Speaker, there are always ways to cut red tape, and I think we just did it.

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