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Legislative Assembly for the ACT: 2000 Week 4 Hansard (30 March) . . Page.. 1078 ..

MR HUMPHRIES (continuing):

contributions and the interest earnings from superannuation investments. All moneys held in the existing Superannuation Provision Account will be transferred to the new account.

Mr Quinlan: Thirteen months is not bad for you, Gary.

MR HUMPHRIES: I know you are embarrassed, Mr Quinlan, but there is no reason to be shouting out. Moneys appropriated for superannuation in future budgets will be clearly identified as being for superannuation and will be paid to the new account. The moneys received by the superannuation banking account may only be used for superannuation purposes, and at least one superannuation banking account must be kept open. Closure of the superannuation account or diversion of funds for other purposes would be contrary to this legislation. A future government proposing such a course of action would be required to gain the support of this Assembly to amend the law.

The Bill provides for consequential amendments which will ensure the new superannuation protection arrangements operate consistently with the Financial Management Act 1996. The changes will take effect from 1 July 2000.

I announced to the Assembly on 29 February that the Government will adopt the recommendations made by Bernie Fraser regarding the management of the Territory's investments and borrowings. The major initiatives are the creation of a Finance and Investment Advisory Board and the creation of a Finance and Investment Group within the Department of Treasury and Infrastructure.

The Finance and Investment Group will integrate the existing investment roles of the Central Financing Unit and the Superannuation and Insurance Provision Unit. The group will be responsible for the management of over $1 billion of the Government's financial assets as well as approximately $800m of debt.

In line with Mr Fraser's recommendations, the Finance and Investment Advisory Board will comprise three outside members with skills in financial market operation, public sector financial arrangements and corporate governance. The Under Treasurer will be an ex officio member of the board.

The objectives, guidelines and procedures for the investment of superannuation moneys managed in accordance with the new requirements of the Territory Superannuation Provision Protection Act will be reviewed by the advisory board. Any superannuation management guidelines issued by the Treasurer under the Act, including those relating to investments, will be disallowable instruments under the Subordinate Laws Act 1989. The board will provide valuable assistance in ensuring that the Government's financial assets are protected in a prudent and effective way.

The provisions in the Territory Superannuation Provision Protection Bill are a further demonstration of the Government's commitment to the financing of superannuation liabilities as part of its ongoing track record in responsible financial management. This Government has managed the difficult financial pressures on the ACT since we were elected in 1995. We have brought forward a draft budget which proposes eliminating the operating loss, for the first time since self-government. But we do that while also

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