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Legislative Assembly for the ACT: 2002 Week 3 Hansard (7 March) . . Page.. 701..


MS TUCKER (continuing):

However, there was a lack of understanding in this place about what the decision actually meant.

Will you give us details of any territory public money that has been invested in financial derivatives, including the total amount, the form of derivative, the risk analysis conducted, and the current status of those investments?

MR QUINLAN: I thank Ms Tucker for notice of the question. Let me say, at this stage, during 2001 the Financial Management Legislation Amendment Bill was passed by this Assembly, as you have said, to remove the prohibition on the use of financial derivative instruments for investment purposes. That was gazetted in July 2001.

During debate on that bill, an undertaking was provided by the then Chief Minister and Treasurer that the legislative amendments would not be enacted until guidelines in the form of disallowable instruments were tabled and considered in the Assembly. This government is still to determine its policy position on the use of financial derivatives, and let me say I have discussed that with the relevant officers. We are still to determine our position on the management of the territory's investments by the use of derivatives, and so the former policy of not using derivatives is still applying as we speak.

For historical context, I understand that the territory has only ever used derivatives in its early days-back in 1991 and 1992-only on a couple of occasions, and on both occasions the territory finished well in front, financially.

Ms Tucker: I have a supplementary question, Mr Speaker. Sorry, I did not quite hear what Mr Quinlan said. Just to clarify, you said that you were supporting the use-

MR SPEAKER: No, you can ask a supplementary. Do you want to ask a supplementary question?

Ms Tucker: Yes, I do want to ask a supplementary question, but I cannot ask it if I do not know what he said.

Mr Smyth: He is too tough, Kerrie-no supplementaries.

Ms Tucker: I did not hear him.

MR SPEAKER: Would you repeat the answer?

Ms Tucker: Am I able to ask for him to repeat the fundamental point: what is his party's decision on whether they will be using derivatives?

MR SPEAKER: Order!

Ms Tucker: That was in the answer.

MR QUINLAN: For clarification, we are in the position where we can use derivatives legally, once guidelines are put in place. At this stage, we have not decided to put guidelines in place, and therefore have not decided to use them. However, we have


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