Page 4813 - Week 16 - Thursday, 29 November 1990
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TERRITORY OWNED CORPORATIONS BILL 1990
MR KAINE (Chief Minister) (12.22): Mr Speaker, I present the Territory Owned Corporations Bill 1990. I move:
That this Bill be agreed to in principle.
Mr Speaker, in the 1990-91 budget, I announced that ACT Electricity and Water, the TAB and the Mitchell Health Services Facility would become Territory owned corporations. This announcement reflected the Government's decision on a model for corporatisation of ACT Government business operations, and foreshadowed the preparation of umbrella legislation to embody the fundamental rules and principles that would govern such corporations.
I should emphasise that the model is one of corporatisation, not privatisation. In fact, this Bill, which is the umbrella legislation that will apply to all Territory owned corporations, requires all such corporations and any subsidiaries to be 100 per cent government owned. My colleagues the Attorney-General and the Minister for Finance and Urban Services will be introducing Bills relating respectively to the corporatisation of the TAB on 1 January 1991, and expanding the board of ACTEW to facilitate its transition to corporatisation on 1 July 1991. These business enterprises will be subject to the provisions of the Territory Owned Corporations Act.
In recent years the Commonwealth and State governments have embraced corporatisation as an important means of effecting micro-economic reform in government business activities. The importance of reforms of this nature was reinforced at the recent Special Premiers Conference. A need for reform in the Territory is particularly pressing in view of our tight budgetary position.
The principal objectives of the corporatisation of public sector business operations are fourfold: firstly, to effect improvements in cost structures, overall efficiencies, and the quality of services provided; secondly, to ensure appropriate improvements in performance and accountability of the business enterprises; thirdly, to make reductions in budget outlays; and, fourthly and importantly, to maximise the returns to the Government on its investment in business enterprises or, in other words, Mr Speaker, returns to the taxpayer whose money is invested in these business enterprises.
This Bill sets out key structural and accountability provisions that provide the framework for operation of the corporatised bodies. This framework closely follows the approach adopted by the New South Wales Government. In terms of structure, Territory owned corporations will be companies incorporated under the Commonwealth companies code and wholly owned by the Territory. Territory
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