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Legislative Assembly for the ACT: 1999 Week 1 Hansard (2 February) . . Page.. 42 ..

MS CARNELL (continuing):

substantial falls in the amount of electricity sold in the ACT are possible. Lower overall electricity sales could render the distribution business worth even less in government hands. Customers would also suffer as ACTEW's overheads were spread over a reduced number of sales, further driving some customers away and changing households' energy mixes. Private providers will also be able to deliver improved water and sewerage services; but, because of the nature of these businesses, the Government has decided to retain important strategic assets in government ownership. (Further extension of time granted)

Mr Speaker, the concession arrangement for the dams and water and sewerage treatment plants will have built into it rigid standards that will ensure that environmental requirements and health and safety issues are assured. The concession arrangements will allow the Territory to catch about $160m in value which flows from keeping ACTEW as a multi-utility without any detrimental effect on social or environmental outcomes.

As I stated earlier, Mr Speaker, the Government's proposed course of action in relation to ACTEW achieves the best possible outcome considering all factors. The new regulatory framework, which is being put in place even as I speak, will ensure that customers and the environment get a better deal than they get now. Competition will lead to improved services, as has occurred in the telecommunications industry, and efficient service delivery, as obviously occurred in Victoria, will lead to reduced prices in the long run, as has already occurred in the only State to go down this path. As well as these benefits, one of the most significant risks to the Territory will be completely erased. The Territory will be put into a much stronger position to meet our financial obligations, and the sale and concession of ACTEW will go a long way to reducing the Territory's operating loss.

These outcomes can be achieved only by the Assembly agreeing to the sale and concession of ACTEW. If the Assembly does not agree to the disposal of ACTEW, and thus facilitate the best solution for the unfunded superannuation liability, ACT taxes and charges will rise in time and service provision will decline. Mr Speaker, this is not a scare tactic. What else can happen? If we take $45m, if we take the dividend from ACTEW, and put it into the unfunded super, it still does not solve the problem, Mr Speaker. There is a gap in the budget, quite simply. In those circumstances, how will the Opposition and the crossbenchers be able to explain to their children and their grandchildren why we allowed the value of the Territory's biggest asset to decline and consigned them to a high-cost, low-service-provision future? Mr Speaker, these are not my words; they are the words of our Auditor-General. The Auditor-General said that, unless we address the operating loss, it will affect the ACT's quality of life in the future.

Mr Speaker, how members of this Assembly can simply ignore that I find absolutely remarkable. Mr Quinlan said recently in a press release that the operating loss was at an unacceptably high level. He has said regularly that the unfunded superannuation situation is unsustainable. We agree. But what are those opposite and those on the crossbench going to do about it? They have not told us; but they are quite willing to knock off the one solution that works, that is on the table. Mr Speaker, there are a lot of other options; but they are simply not as good.

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