Page 1242 - Week 04 - Thursday, 21 March 2013
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Treasurer, why was the Managing Director of ACTEW paid a salary above the relevant benchmarks for 2010-11?
MR BARR: As I have indicated in my responses to questions yesterday, the board sets the salary of the managing director. They have a remuneration committee that looks at these questions. When this issue was raised a few years ago, a benchmarking exercise was undertaken and, as I indicated yesterday, the salary that was published and advised to the shareholders at that time was within the benchmarking range of similar positions in similar public utilities around the country.
What is the new information would appear to put the managing director’s salary above that range. However, there will have been movements in the market from 2010-11 to the current time, and so I recognise that it would be understandable and, indeed, you would anticipate that that market would have moved up. The question is: has it moved up to the extent of $230,000? That is the question the shareholders—the Chief Minister and I—are asking.
MADAM ACTING SPEAKER: A supplementary, Mr Smyth.
MR SMYTH: Minister, how long has ACTEW been paying its managing director a salary above benchmark, and have other executives at ACTEW been paid salaries above benchmark for comparable positions?
MR BARR: I will need to take that on notice. The question, of course, will be what constitutes a benchmark, and that will move from year to year. It will also, of course, reflect the skills and experience of the particular holders of positions, not just here in the ACT but elsewhere in the country. This is not a market that will be easily defined, I imagine; hence the ACTEW board’s work in seeking to bring in a consultant to undertake a benchmarking exercise and to look at comparable salaries year to year is I think an important part of the board doing its job effectively.
MADAM ACTING SPEAKER: Supplementary, Dr Bourke.
DR BOURKE: Treasurer, when the 2011-12 ACTEW annual report was published with the correct salary for the CEO, was there any public comment, including from the opposition, and did you receive any calls from concerned constituents?
MR BARR: No, I have not been aware of any public comment in relation to the salary that was published in the annual report last year. And, no, up until the last couple of days I have not been aware of any particular interest from the opposition in this matter.
MADAM ACTING SPEAKER: Supplementary, Mr Hanson.
MR HANSON: Will you ensure that the salary package for the managing director of ACTEW is frozen until it comes within benchmark?
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