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Legislative Assembly for the ACT: 2000 Week 4 Hansard (30 March) . . Page.. 1162 ..

MR QUINLAN (continuing):

On behalf of the committee I inform the Assembly that the committee has resolved to inquire into the proposed ACTEW/AGL Partnership Arrangement.

The committee has self-referred this matter as a formal means of enabling it to report to the Assembly in due course on the outcome of its regular meetings with ACTEW, AGL and the Independent Probity Auditor for the partnership arrangement.

On 9 March the Assembly resolved that after consultation with this committee, the Treasurer appoint an Independent Probity Auditor with terms of reference determined by the Assembly to oversight the establishment of the proposed partnership arrangements between ACTEW and AGL. The committee was consulted and Mr Stephen G Marks of Stephen Marks and Co Pty Ltd was subsequently appointed as the Independent Probity Auditor.

It was arranged with the Treasurer for Mr Marks to consult with the committee on an as required basis and for the committee to receive Mr Marks' reports.

On 9 March the Assembly also noted and availed itself of the offer from ACTEW and AGI, jointly to provide fulsome reports on progress with their negotiations and to appear before relevant committees to answer questions.

At this point the committee has met with the companies on two occasions and with the Probity Auditor. The companies have provided the committee with a joint report on progress with negotiations and it is has been agreed that there be further meetings between the committee and the companies on a regular basis leading up to the implementation agreement.

Those consultations and associated reports will include:

� Updates on negotiations on the heads of agreement, including key milestones achieved, anticipated milestones and timing

� The corporate and financial structure of the new organisation

� The cash and physical asset structure, including valuations

� Due diligence and other relevant issues

A good deal of preliminary work has already been undertaken by the parties and leading up to the implementation agreement the companies are focussing upon due diligence and further commercial investigation, legal documentation and negotiation, business structure and business plan development and valuation and financial modelling analysis.

The issues are complex, the Territory financial exposure is substantial and there are important principles to be worked through in reaching for implementation.

The committee sees its role as ensuring as far as is possible that what is being done is being done properly and in the best interests of the community.

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