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Legislative Assembly for the ACT: 2000 Week 3 Hansard (8 March) . . Page.. 675 ..
MR HUMPHRIES (continuing):
projected profit margins at this time. Perhaps separately, ACTEW or AGL executives have speculated about what kinds of profits might be obtainable. Presumably both sides of this negotiation believe that there are profits and perhaps they have some hope that they would be of a certain order in order to go into the business in the first place. There is certainly no projection of what those profits would be that could be projected for the benefit of this house, Mr Speaker.
In terms of the viability of ACTEW though, rather than look at projections I think it might be more useful to look at actual results and, in particular, the dividends that have been paid by ACTEW over the last few years. In the 1997-98 financial year the dividend paid to the Government was $58m. In 1998-99 that dividend had fallen to $43.4m. I understand that the estimated dividend for the present financial year will be lower still, something in the order of $40m. So, Mr Speaker, again, this insular, inward-looking approach that says, "Don't worry; if we just hunker down and make sure there are no bits sticking out, if we really are very careful about what we are doing, we will be able to survive what is coming down the path by way of competition" - - -
Mr Smyth: Ostrich-like.
MR HUMPHRIES: As Mr Smyth indicates, it is a very ostrich-like approach, and I do not think we can afford to take that kind of approach.
MR STANHOPE: I have a supplementary question, Mr Speaker. I am just waiting for the Chief Minister to finish briefing the Treasurer. What estimates have been made of cost savings to be realised or financial benefits to accrue to the community from the joint venture? If they exist, will the Treasurer table them before the resumption of the debate? If they do not exist, how can the Treasurer expect the Assembly to make a sensible decision on his proposal?
MR HUMPHRIES: Cost savings accruing to the community? What does Mr Stanhope mean by cost - - -
Mr Stanhope: Financial benefits to the community. I will re-read the question if the Treasurer wishes.
MR HUMPHRIES: No, you asked what cost savings accrue to the community. You also refer to financial benefits that come to the community. Mr Speaker, the most important financial benefit that comes to the community is the assurance, not necessarily an absolute assurance but the greater likelihood, that by restructuring the business of ACTEW in the way proposed in this partnership there will be a profitable, viable, business entity in the form of ACTEW projecting dividends to the ACT community into the future. That is the most important financial benefit which we see coming from the - - -
Mr Stanhope: But you do not know if that is true.
MR HUMPHRIES
: Mr Stanhope makes an excellent point, Mr Speaker. I do not know if that will be true. That is true. I cannot tell this house, with my hand on my heart, that all this will be absolutely true. I can only work on the basis of likelihoods and best educated
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