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Legislative Assembly for the ACT: 1993 Week 03 Hansard (Thursday, 25 March 1993) . . Page.. 787 ..


Thursday, 25 March 1993

_______________________

MADAM SPEAKER (Ms McRae) took the chair at 10.30 am and read the prayer.

TERRITORY OWNED CORPORATIONS (AMENDMENT) BILL 1993

MS FOLLETT (Chief Minister and Treasurer) (10.31): Madam Speaker, I present the Territory Owned Corporations (Amendment) Bill 1993.

Title read by Clerk.

MS FOLLETT: I move:

That this Bill be agreed to in principle.

Madam Speaker, under the current Territory Owned Corporations Act 1990 the Territory cannot lend funds to Territory owned corporations unless those funds have been appropriated for this purpose. This Bill seeks to remove this provision. This will allow the Territory, through the ACT Borrowing and Investment Trust, to lend moneys to Territory owned corporations at commercial rates. As Treasurer, I will still be responsible for approving the loan, and, as Territory owned corporations operate in a commercial environment, will ensure that any loan made to a Territory owned corporation will be on a commercial basis so that such corporations are not given an unfair advantage in the market. This is also consistent with the ACT Borrowing and Investment Trust making investments on the basis of best return for the Government. This approach will also allow the Territory to benefit from any debt servicing fees, rather than the commercial private sector.

Under the Territory Owned Corporations Act 1990, Territory owned corporations are subject to a number of comprehensive accountability provisions and this Bill will not alter these. Any loans made to a Territory owned corporation would still be subject to scrutiny by the Auditor-General in his audit of the corporation's financial statements, and these statements will still be required to be tabled in the Legislative Assembly. I now present the explanatory memorandum for this Bill.

Debate (on motion by Mr Kaine) adjourned.

AUDIT (AMENDMENT) BILL 1993

MS FOLLETT (Chief Minister and Treasurer) (10.33): Madam Speaker, I present the Audit (Amendment) Bill 1993.

Title read by Clerk.

MS FOLLETT: I move:

That this Bill be agreed to in principle.


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