Page 1286 - Week 04 - Thursday, 4 May 2006
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(4) What were staffing levels before Capital Linen was transferred to the Department of Urban Services;
(5) What was the operating profit or loss of Capital Linen for the (a) two financial years prior to and (b) the financial years after, its transfer to Urban Services;
(6) Has the Independent Competition and Regulatory Commissioner (ICRC) recommended a more transparent relationship with Government; if so, is the relationship not adequately transparent; if so, why; if not, why not.
(7) Are there plans to make Capital Linen a Territory-owned corporation as suggested by the ICRC; if so, when will this occur; if not, why not.
Mr Hargreaves: The answer to the member’s question is as follows:
(1) Capital Linen Service (CLS) currently has approximately 150 customers.
(2) CLS has experienced a small level of customer turnover since it was established on 1 April 2004. Sales volumes have remained fairly constant within the context of normal seasonal fluctuations.
(3) CLS operates in the range of 108 to 115 full time equivalent staff depending on the level of production.
(4) CLS was established in Urban Services on 1 April 2004. Urban Services is unable to provide FTE information relating to the former linen business of Totalcare Industries Limited.
(5) CLS was established in Urban Services on 1 April 2004. CLS reported an operating loss of $0.189m for the period 1 April 2004 to 30 June 2004, and an operating loss of $0.722m for the period 1 July 2004 to 30 June 2005. Urban Services is unable to provide financial information relating to the former linen business of Totalcare Industries Limited.
(6) The ICRC inquiry was part of a range of measures taken by the Government to review the former Totalcare linen business, after its transfer into Urban Services. Following on from the 2004 independent business review of CLS, I initiated the ICRC inquiry to assist the Government to determine the most appropriate business model for CLS and to best achieve the objectives of the Competition Principles Agreement. The ICRC issued a report on 22 March 2006, which contains four findings that are generally supportive of CLS and makes eight recommendations that provide options for placing CLS on a more competitively neutral footing. I am now waiting for a brief from the department of Urban Services and then the government will consider the recommendations.
(7) The ICRC is an independent statutory authority that is not subject to Government direction in the conduct of its inquiries, including its findings or recommendations. The draft ICRC report recommends the Government consider, in the longer term, setting up CLS as a Territory-owned corporation. The Government has no plans to do this at present. The Government will consider the findings and recommendations of the inquiry.
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