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Legislative Assembly for the ACT: 2000 Week 2 Hansard (2 March) . . Page.. 517 ..

MR QUINLAN (continuing):

changed ownership? Can he explain how the ACT's sewerage business will either grow or shrink under changed ownership? Can he explain how the ACT's electricity distribution business will either grow or shrink under changed ownership? Are there prospects for dramatic improvement in these businesses other than through staff cuts or service reductions masquerading as economies of scale? Can the Treasurer explain how he sees ACTEW's electricity retail business growing when it is blended into the larger AGL retail business that has more than 2,000,000 customers? Will the join venture purchase wholesale electricity from AGL, then use that electricity to compete with AGL and other retail giants for customers? Where will the promised growth manifest itself?

MR HUMPHRIES: Mr Speaker, I thank Mr Quinlan for giving me notice of his question, albeit a few minutes ago as the bells were ringing. I have had a chance to look over the questions and - - -

Mr Quinlan: No, it was only to remind you of what questions were asked. I am sure you know this stuff.

MR HUMPHRIES: Indeed, and I am grateful for the information. First of all, let me re-emphasise that the consideration that has been given to this proposal for the growth in the business that ACTEW does is based on the commercial advice that comes to the Government from the ACTEW board. Mr Quinlan moved amendments last year to the territory owned corporations legislation, which I think the Assembly has dealt with, to provide for more concentration about the way in which we appoint the board of ACTEW. I think we have dealt with it; I could be wrong about that. I for one believe that the ACTEW board is an excellent board with a very strong capacity to give top-notch advice to the ACT community and the Government about the commercial prospects of ACTEW. I know that the Labor Party puts around the story that the ACTEW board is a hostage to the Government's wishes on this subject and that the board is not keen on some sort of repositioning; it is actually just the Government telling it that it has to believe in that.

I have to put on the record again that the views that I have articulated about the financial position of ACTEW are the views taken by the rest of the board and Mr Mackay, who has argued that case very passionately in the media. That is the overview to this answer. It is not the view of the Government per se, it is the view of the ACTEW board, that the risk to the ACTEW business will be greater as a result of no change.

Mr Quinlan asked me how I see the ACT's water business or sewerage business either growing or shrinking under changed ownership. The question is hypothetical because we are not proposing changed ownership for either the sewerage business or the water business of ACTEW. The ACTEW sewerage and water business remains wholly owned and controlled by ACTEW itself and there is no question of there being any change in the position as a result of that.

Mr Quinlan asked me to explain how the distribution business will grow or shrink under changed ownership and how we see electricity retail growing as well in those circumstances. Mr Speaker, it ties in with the question Mr Quinlan asked about how we can possibly grow when we are blended in with the AGL retail business, which has something like 2,000,000 customers, admittedly for gas rather than for electricity.

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