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Legislative Assembly for the ACT: 2000 Week 8 Hansard (29 August) . . Page.. 2498 ..
MS CARNELL (continuing):
a secured or unsecured basis because of negative pledges which AGL had entered into with both US bond holders and a consortium of Australian banks. This limitation would also apply to the partnerships proposed to be established with ACTEW.
ACTEW's legal advisers, supported by the ACT Government Solicitor, indicated that, as a result of these arrangements, there was a small risk that ACTEW, and thus the ACT, could encounter some difficulty in recovering its assets following dissolution of the partnership in the remote event of AGL becoming insolvent. In order to overcome this risk, the assets to be contributed by ACTEW to the partnership will be covered by an equitable charge. Under the equitable charge, each of the ACTEW partners grants a charge, in favour of ACTEW, for all of its right, title and interest in the ACTEW assets contributed to the joint venture. In the unlikely event of a claim by the lenders under the AGL negative pledge arrangements, the equitable charges would assist ACTEW to resist any such claim. This arrangement has been reviewed and verified by the ACT Government Solicitor.
The Utilities Bill and related instruments provide a further comprehensive range of measures to protect the public interest. These bills have been reviewed by the Standing Committee on Planning and Urban Services. The committee has recommended that the bills proceed, subject to a number of minor amendments which do not impact on the fundamental elements of the package. The package is a comprehensive and robust approach to ensure the provision of high-quality utility services in the ACT.
Mr Speaker, in summary, the proposed joint venture partnership between ACTEW and AGL has been the subject of extensive due diligence. The proposal has been review by the ACTEW board and its professional advisers. The ACTEW board has recommended that the joint venture be approved. In parallel, a committee of ACT government chief executives, led by the chief executive of my department, has undertaken an extensive review. The committee also has recommended the joint venture and the MOU with AGL.
A similar extensive scrutiny has been undertaken on behalf of the Assembly by the Standing Committee on Finance and Public Administration. This scrutiny has been supported by the independent probity adviser and an independent review of the valuation methodology. Finally, the government yesterday reviewed and agreed to the proposal.
Mr Speaker, today is a major milestone in the history of the ACT since self-government. We believe that the right decision has been made in the interests of the ACT and that the ACT and its citizens will continue to benefit from this decision for many years to come.
Mr Speaker, I table the following documents:
Territory Owned Corporations Act, pursuant to paragraphs 16 (1) (a) and (c)-ACTEW/AGL joint venture and related transactions-Shareholder consent, dated 28 august 2000.
ACTEW/AGL proposed partnership-Chief Executives' Steering Committee-Report, dated 28 August 2000, including Appendices A to F.
The appendices to the Chief Executives Steering Committee report on the proposed ACTEW/AGL partnership are: the 11 August 2000 letter from the Chairman of the ACTEW board; the final report of the independent probity auditor, Mr Stephen Marks; the KPMG report on their independent review of valuation methodology; the
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