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Legislative Assembly for the ACT: 1998 Week 11 Hansard (8 December) . . Page.. 3248 ..

MS CARNELL (continuing):

Mr Speaker, that was stated by somebody who I do not think anybody would doubt is independent. In summary, the Auditor-General says:

In view of the seeming inevitability of having to sell significant assets, ACTEW is an appropriate asset to consider for sale because of its estimated potential current sale price and the existence of a ready market. If ACTEW is to be sold it is suggested that an early sale is desirable because of likely future falls in the value of ACTEW in its current form.

Mr Speaker, those are not my words, they are the Auditor-General's words. In the Auditor-General's report brought down today the Auditor-General makes significant comments and criticisms with regard to the unfunded superannuation liability and the operating losses for the Territory. The Auditor-General says on page 3:

The size of the losses are sufficient to significantly affect the future standard of living of ACT residents.

Again, they are not my words, they are the Auditor-General's. The Auditor-General has said quite definitely in this report that the ACT does not have the capacity to generate the sorts of surpluses that will be needed to pay off the unfunded superannuation. It is simply not going to happen, or he does not believe it is realistic. The Auditor-General goes on to make the point that if we are to sell ACTEW it is better that we do it quickly. He also suggests that asset sales are the only way that the ACT can address these really important issues. We have finally got on the table a report by somebody who is independent, and this person says quite definitely that the only way forward, more than likely, is asset sales and that if we are going to sell ACTEW we need to do it quickly. I think that really puts the whole debate in a nutshell.

Those opposite have said, time and time again, "Spend more on health, spend more on education". I have just heard them say, "Spend more on buses. Spend more on everything". The Auditor-General rightly says that the capacity to significantly reduce expenditure in the ACT is limited. He says that the capacity to significantly increase taxes is limited. Unless we can produce an operating surplus we cannot address our unfunded liability. We cannot do that unless we go down the path of asset sales.

Mr Speaker, I will finish by again using the Auditor-General's words in his summary:

In view of the seeming inevitability of having to sell significant assets, ACTEW is an appropriate asset to consider for sale because of its estimated potential current sale price and the existence of a ready market. If ACTEW is to be sold it is suggested that an early sale is desirable because of likely future falls in the value of ACTEW in its current form.

Mr Speaker, that summarises the debate. It puts it on the table. It makes it clear for everybody. It is a simple concept. We have no other way forward if we are to avoid the comment on page 3:

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