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Legislative Assembly for the ACT: 1997 Week 13 Hansard (2 December) . . Page.. 4299 ..

MR WHITECROSS (continuing):

Finally, Mrs Carnell's comments in relation to the $100m special dividend, I think, missed the point. The committee, I am sure, would acknowledge that operating results before distribution of dividends or tax equivalents, or particularly before distribution of dividends, indicate the success of the operation of PTEs. However, it has to be acknowledged, as indeed the Auditor-General emphasised, that, if after the payment of dividends and tax equivalents the situation is that the PTE sector has recorded a loss, that affects the ongoing viability of the PTE sector. That was an issue that the Auditor-General was raising; that was the issue that the committee
reported on.

The bottom line is that the Government cannot keep stripping money out of the PTE sector at a rate greater than they are earning it, without having a negative effect on the PTE sector. The Liberals opposite always like to lecture the Labor Party on business. They are the self-appointed experts on business. But Mrs Carnell is the only person I know - Mrs Carnell runs a small business, so she ought to know better - who comes into this place and says, "We can take out of a business more money than it makes in a year, but that will not affect the viability of the business. We can take money out of a business, which they do not have, but they will not have to borrow. We can increase our liabilities, but that is not the same as borrowing". Mrs Carnell says all these things. I think those elements of the Government's response are disappointing.

I welcome the fact that some progress has been made in relation to accounting standards. I hope the Government will in future give up their rhetoric about operating leases and admit that the leases are finance leases. We welcome, albeit very belatedly, the Government finally starting to take some action in relation to the issue of reviewing superannuation arrangements and producing proposed options for the short- and long-term addressing of emerging and accruing superannuation costs. I look forward to hearing from the Government details of whom they have appointed to conduct the review of the superannuation arrangements, when that is decided, if it has not been decided already.

Question resolved in the affirmative.

Motion (by Ms Tucker) agreed to:

That leave of absence for today, 2 December 1997, be given to Ms Horodny.

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