Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .

Legislative Assembly for the ACT: 2000 Week 7 Hansard (29 June) . . Page.. 2279 ..

Proposed expenditure-Part 7-Superannuation Unit, $5,000,000 (capital injection) and $27,139,000 (payments on behalf of the territory), totalling $32,139,000.

MR QUINLAN (4.58): I want to restate a position which I think the government was attempting to muddy as recently as question time. Under previous governments some funds were invested and set aside to address a growing superannuation liability. This $5 million, which is totally inadequate of course, is the first operating revenue that the Carnell government has set aside since 1995. They certainly have taken $300 million out of ACTEW and placed that against the superannuation liability.

Mr Stanhope: And who recommended that, Mr Quinlan?

MR QUINLAN: I have to say that in the past I can claim to have had a bit to do with ACTEW's capacity to pay that $300 million. I did not imagine when I was working there that we would get to the point where the work of that organisation would be propping up the Carnell government.

I am pleased to see that within the Central Financing Unit and the Superannuation Unit the government is setting up an advisory board for investments. We are very rapidly getting to the point where we will be running our own modest merchant bank. We have hundreds of millions of dollars already now set aside. We have the probability of an equalisation payment arising out of the joint venture between ACTEW and AGL of maybe $140 million or $150 million and, as I think I predicted in this place, there will be almost irresistible pressure within that new joint venture for a capital restructure, freeing up-

At 5.00 pm the debate was interrupted in accordance with standing order 34; the motion for the adjournment of the Assembly having been put and negatived, the debate was resumed.

MR QUINLAN: There is a distinct possibility that once the ACTEW/AGL joint venture is up and running there will be quite irresistible pressure for a capital restructure of that venture, with that venture taking on a considerable amount of debt and repatriating an equal amount of cash to the shareholders, AGL and ACTEW. So ACTEW will be then sitting on a bundle of cash and I am sure that any government would like to be involved in the future of that bundle of cash. It is distinctly possible that that would become a further part of investment against the superannuation liability and would go a long way, I guess, to backing with cash the very large liability that is on the balance sheet. It is unfortunate that the price of that is going to be the inevitable total loss of control over our electricity supply assets in the territory. But small though it may be, it is pleasing to see the Carnell government put their first dollar of operating funds towards the superannuation liability.

MR HUMPHRIES (Treasurer, Attorney-General and Minister for Justice and Community Safety) (5.02): Mr Deputy Speaker, I will make just a couple of quick comments. I concede that this is the first money that we have put into what might be called excess funding or a topping up of a superannuation account from operating funds that has not been necessary since we came to office.

Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .