Page 2910 - Week 10 - Wednesday, 14 September 1994
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State Bank - Rates Collections
MR KAINE: I have a question for the Chief Minister and Treasurer. Chief Minister, when the Government banking contract was let to the State Bank, did the Treasury assess the bank's capability to process rates collections in a proper manner and, if so, how did they assess the bank's capability to do that?
MS FOLLETT: I thank Mr Kaine for the question, Madam Speaker. It is a timely question. At the time when the ACT Government banking contract became renewable, there was certainly a very stringent process of assessment of the various contenders' capacity to provide all of the services that are needed in our community. Indeed, some of the tenderers for the banking contract were not able to provide all of the services that are required, which are very comprehensive and encompass, as Mr Kaine would know, both the municipal- and State-type taxing arrangements and a whole range of activities right across our community. There certainly was a very stringent process of assessment of the suitability of the various tenderers. That was a process independent of government. It was conducted with expert advice and with the involvement of the Treasury itself.
Nevertheless - as Mr Kaine, I am sure, knows very well - there has been a problem in recent times. There was a delay which was caused by an internal processing problem between three State Bank agents and the Tuggeranong branch of the bank, where the payments were to have been processed. What happened was that the agents did not supply the required paperwork promptly, and no further action was taken with the vouchers and the cheques until a random check revealed the unprocessed documents. There were some 65 ratepayers who had their payments affected by this problem. The total amount of money involved was over $50,000, so it was a not insignificant problem.
The regional manager of the State Bank has since advised that all payments collected by the State Bank have now been processed, and all the funds have now been deposited in the appropriate account. The Revenue Office has also been provided with a list of all the ratepayers whose payments were delayed. The Revenue Office will be writing to all of those ratepayers to advise them individually that their right to pay by instalments has not, in fact, been affected. There is also a question of some interest payable to the Territory. Treasury will be recovering that lost interest that came about during the period of the delay. To be brief, Mr Kaine, there was a very thorough assessment process. There was this single incident of difficulty, and I certainly trust that it will not be repeated.
MR KAINE: I ask a supplementary question, Madam Speaker. Given the events of recent times to which you allude, Chief Minister, are you now satisfied that they will not happen in the future and that the State Bank does in fact have the capability to process rates collections properly; and can you assure us that no ratepayer will be disadvantaged as a result of the State Bank's failure to meet their obligations?
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