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

Legislative Assembly for the ACT: 2000 Week 12 Hansard (7 December) . . Page.. 3848 ..

MR HUMPHRIES (continuing):

I move:

Mr Speaker, the government welcomes the committee's finding that Actew and its advisers acquitted themselves professionally and effectively in partnership negotiations and achieved an overall outcome which is equitable to the ACT. The committee's report concluded:

Of course, Mr Speaker, it is now on public record that the final reports of both the probity auditor and the independent valuer were indeed most favourable. The probity auditor, Mr Stephen Marks, concluded in his report:

• The ACTEW Board and shareholders and the standing committee were fully informed of the progress of the negotiations;
• Probity standards were met for the selection of all advisers;
• The process has at all times been carried out professionally by all those involved;
• All parties representing ACTEW have acted fairly and equitably and in the interests of ACTEW and its shareholders in accordance with the law and the resolutions of the Assembly; and
• An appropriate process has been followed to ensure the shareholders can make an informed decision on whether to proceed with the final agreement negotiated between the parties.

Both Actew and AGL engaged financial advisers to assist in the calculation of the valuation of assets. As an additional check the government appointed KPMG Corporate Finance to independently review the methodology and resulting valuation. The KPMG review considered that AGL should make an equalisation payment of between $104.2 million and $112.5 million in order to acquire an equal share in the joint venture.

This assessment compares more then favourably with the initial equalisation payment of $119 million paid by AGL to Actew on 3 October 2000. Furthermore, as AGL has assumed $6 million of Actew's employee leave liability and Actew's service costs will also be reduced by $3.8 million, then effectively the total value of the equalisation payment is $128.8 million. I can also add that now the Independent Competition and Regulatory Commission has determined AGL's regulatory asset value as at 1 July 2000 Actew can look forward to an additional equalisation payment of $38 million from AGL.

The chairman of Actew stated in his letter to the voting shareholders on 11 August 2000:

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