Page 1598 - Week 08 - Thursday, 28 September 1989
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section requires that the Commonwealth Minister responsible for territories transfers those assets and rights used for ACT functions. While there is agreement in principle to the scope of the transfer, there are some concerns of this Government particularly relating to the retention by the Commonwealth of certain parcels of land which have no clearly defined national purpose.
We are also objecting in particular to the Commonwealth decision to hold onto Gowrie Hostel and subsequently to announce the sale of that hostel. The actual transfer process is effected by way of the preparation of legal instruments and, given the level of detail currently being specified by the Australian Government Solicitor, this process is not likely to be completed until very much later this year. The process itself requires the development of a comprehensive assets register.
On the question of debt associated with the assets of the Territory, which Mr Kaine has also addressed, the statement that I made on 22 August and the budget papers set out the issues and the position that the Government is taking in its negotiations with the Commonwealth. I think it is sufficient to say at the moment that there is not actually an established debt profile for such agencies as the ACT Electricity and Water authority and the Housing Trust. In all instances the debt is being serviced from the charges, rents and rates levies on the respective customer populations.
The Government has adopted the position with respect to debt for State-type assets which produce little or no income that the ACT should start with a clean slate. This should apply not only to the equivalent of the States' general purpose capital advances but also to ACTION and to forestry. In ACTION's case they are heavily reliant on a budget funded subsidy and any debt servicing cost adds directly to that subsidy. The forestry function serves many objectives in the ACT, including the protection of water catchment areas and the provision of recreational facilities. As such, it cannot be assessed on strict commercial terms. I have put the Government's position on a zero debt start to the Commonwealth in the clearest possible terms.
I would also like to draw the Assembly's attention to this year's budget, where the Government has taken a decision not to raise the full level of borrowings available to the ACT under the Loan Council global allocation. Such a decision, as always, requires a balance to be struck between the future costs of debt servicing and the deferral of works which would benefit the current community. I do consider that we have made a sound decision on that matter.
I would like to conclude by saying that it is my understanding that the ACT government service is undertaking very much of the work, if not all of the work, that is encompassed by Mr Kaine's motion. Nevertheless, I
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