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Legislative Assembly for the ACT: 1997 Week 11 Hansard (4 November) . . Page.. 3511 ..

MR WHITECROSS: In your right of reply. Mr Speaker, clearly, you have an equivocal attitude on this issue. I suggest that the appropriate course for a Speaker to take in this situation is to let the debate ensue and let people consider the arguments put by different sides in deciding how to vote. Mr Speaker, I have nearly finished my remarks. My remarks are very simple. I have commented on the fact that the only corporation contemplating borrowing at the moment which would take advantage of this legislation if it were passed is ACTEW, because ACTEW is the one which has to borrow to pay a $100m dividend to the Government of this Territory.

My point is this, Mr Speaker: Not only have the Government found out a way of disguising their borrowings by raising their borrowings through ACTEW but also they have indeed found an additional benefit in doing so, which is that they can make a little profit on the way through by raising the borrowings at a discount and lending them on to ACTEW at a higher price so that ACTEW then has to make higher repayments to the Central Financing Unit.

Mr Speaker, we will be supporting the legislation because I would rather see the Territory make this 0.2 per cent than see a private firm make the 0.2 per cent. I simply make the point that it would not be such a pressing matter that the Government is so keen to get passed if it were not for the fact that it will take $100m out of ACTEW this year and is proposing to take $100m next year by the device of selling ACTEW the light poles. This device would not be necessary at all if the Chief Minister were honest with the people of Canberra when she needs to borrow money and actually went out and borrowed it herself as a government, rather than trying to disguise it as borrowings for a corporation which she says benefit the corporation but which Mr Service says weaken the corporation. Mr Speaker, it seems to me that we have an inconsistent position. Mr Service said that the corporation benefited from having a "debt-free situation" and "a capital structure that is quite unlike most of our competitors' ". Price Waterhouse said that that improved ACTEW's position in entering a competitive electricity market. Mr Service said that there would come a point - "whether it is $150m or $220m, I do not know" - when it would become a problem.

Mrs Carnell: He said it is not a problem.

MR WHITECROSS: He says it is not yet a problem but it will be when it comes to finding the next $100m next year, Mr Speaker.

Mrs Carnell: You just misled the Assembly. You said that Mr Service said that it weakened the company, and he did not. You misled the Assembly.

MR WHITECROSS: Mrs Carnell, you are silly beyond belief. What I said was that the $100m does not improve ACTEW's position, contrary to what the Chief Minister has said. Mr Service has said that if they keep on being asked to borrow money it will be a problem. Mr Speaker, all I am saying is that this Bill would not be necessary if the Government were honest and told the people of Canberra, "We do not have enough money to pay our bills; we have to borrow", instead of indulging in this charade of forcing ACTEW to pay dividends and of borrowing money for ACTEW and giving it to ACTEW so that ACTEW can give it back to the Government.

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