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Legislative Assembly for the ACT: Legislative Assembly for the ACT: 2004 Week 2 Hansard (4 March) . . Page.. 829..

In relation to the ActewAGL merger with TransACT taking place from 1 February, as reported in the Canberra Times on 29 January 2004, page 5:

(1) Which jobs and how many of those jobs will be lost immediately as a result of the merger;

(2) Which positions and how many of those positions will be lost within 12 months of the merger;

(3) What will the estimated cost of conducting the merger be to (a) TransACT, (b) ActewAGL and (c) the A.C.T. Government;

(4) What procedures will be put in place to ensure that ActewAGL's Internet service provider will have no advantage over other providers on the TransACT network and how will this be assured and monitored.

Mr Quinlan

: The answer to the members' question is as follows:

(1) ACTEW has advised that at the commencement of the new arrangement on 1 February 2004, 4 permanent TransACT positions were made redundant. These redundancies were for an IT support employee and three sales employees.

(2) It is anticipated that some 20 positions could become surplus over the next 12 months. ACTEW has advised that ActewAGL will try to accommodate these losses through attrition or re-appointment to vacancies elsewhere within ActewAGL.

(3) I am advised by ACTEW that the cost of the merger is as follows:

a) TransACT: The cost of the merger to TransACT is minimal, limited to the cost of redundancies, if required, and revaluation of some minor assets not required by ActewAGL.

b) ActewAGL: The direct cost of the merger to ActewAGL will include some external legal and advisory costs, and some relocation and integration costs. There will also be some internal costs associated with ActewAGL staff involved in the merger process. These costs will be more than recovered through operating efficiencies and contract fees over the term of the management agreement.

c) The A.C.T. Government: There will be no direct cost to the ACT Government.

(4) ACTEW advise that the TransACT Board is reviewing all Internet Service Provider (ISP) arrangements. The existing management agreement between ActewAGL and TransACT prevents unfair advantage to ActewAGL's ISP business as a result of new arrangements. All ISP contracts will be managed by TransACT staff in a separate TransACT division, which will operate at the TransACT building at Dickson. This division will have transparent record keeping and auditing.


(Question No 1235)

Mr Cornwell

asked the Treasurer, upon notice:

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