Page 715 - Week 03 - Tuesday, 17 March 2015
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government will respond to but that there are other areas of her report that are contested by different areas of ACT government that have the responsibility for collecting debts to the territory.
The point I was making before I was interrupted by the Leader of the Opposition was that the government has provided additional resources to the Revenue Office to assist in relation to a range of compliance matters that also includes debt recovery. In relation to the territory’s debt, let me remind the Leader of the Opposition that the territory holds a AAA credit rating. It has the lowest levels of debt—
Mr Hanson interjecting—
MADAM SPEAKER: Order, Mr Hanson!
MR BARR: of any—
Mr Hanson interjecting—
MADAM SPEAKER: Order, Mr Hanson!
MR BARR: The territory has one of the lowest levels of debt of any state or territory and the government continues to budget prudently. (Time expired.)
MADAM SPEAKER: A supplementary question, Mr Smyth.
MR SMYTH: Treasurer, how will the government address the $1.6 billion debt held by ACTEW, as you are one of the shareholders?
MR BARR: I think it is important to note in this context that public utilities should have a level of debt and that the gearing that ACTEW has—soon to be known as Icon—is within industry benchmarks, at around 60 per cent. And that is an appropriate level of debt for a public utility to have, given the utility needs to invest in long-term infrastructure for the city. So Mr Smyth’s conjecture is that this generation of taxpayers should fully fund in advance infrastructure over a hundred-year period that will be utilised over a hundred-year period. I do not accept that fundamental position.
My view, as I have stated repeatedly, is that it is appropriate for the public utility to have a level of debt and that the level of debt that ACTEW has now is appropriate and in accordance with industry standards. It will, of course, in the context of the future, not be required to undertake significant capital works programs, such as building new dams, for the foreseeable future. So its debt levels have peaked, and over time the debt levels will reduce.
MADAM SPEAKER: A supplementary question, Mr Smyth.
Members interjecting—
MADAM SPEAKER: Order, members! I want to hear Mr Smyth’s question.
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