Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .

Legislative Assembly for the ACT: 1997 Week 8 Hansard (28 August) . . Page.. 2601 ..

MR WOOD: Mr Speaker, I present Report No. 10 of 1997 of the Standing Committee on Scrutiny of Bills and Subordinate Legislation and I ask for leave to make a brief statement on the report.

Leave granted.

MR WOOD: Report No. 10 of 1997 contains the committee's comments on one Bill, the very important Financial Management (Amendment) Bill (No. 3) 1997, which the Assembly will be considering today. The committee offers no comment on the Bill.

Debate resumed from 26 August 1997, on motion by Mrs Carnell:

That this Bill be agreed to in principle.

MR BERRY (Leader of the Opposition) (12.04): This Bill arises from a difficult problem for the States and the Commonwealth to deal with. The Labor Opposition will be supporting this Bill. It is a response to the High Court's ruling which questioned the rights of the States and Territories to collect business franchise fees on petroleum, tobacco and liquor. As many will now know, the Commonwealth has agreed to collect the franchise fees on behalf of the States and Territories. As a result, the ACT has had to prove its legal ability to make the payment of moneys to reimburse taxpayers amounts formerly paid in franchise fees. The Bill enables the funds to be paid through a standing appropriation. It is a sort of hypothecation to some at the moment unknown person, which in itself is extremely unusual. It is the sort of provision that everybody would shrink away from in a parliament where the people's money has to be watched very closely.

We have taken the view that amending the Financial Management Act is preferable to a second Appropriation Bill and increasing the Treasurer's Advance. On a look at the legislation, the amendment to section 19 seems to be the only option available, other than perhaps to create a new section with a new heading something like "Transferring payments from the Commonwealth". This Bill would have tested the minds of many who have a strong commitment to tight management of the Territory's dollars. Because of the way the Bill is set out, if one were to see it floating around without any knowledge of the High Court's decision, one would regard it as very curious indeed.

One matter which is mentioned in the final draft of the Financial Management Bill is the reporting of the costs of running the distribution mechanism, if you like. I think that is a good move, because we need to know the expenditure that goes with the refund of the money to us by the Commonwealth. In considering this matter I did wonder who is going to make some money out of this. When money is moving around, somebody is making

Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .