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Legislative Assembly for the ACT: 1999 Week 5 Hansard (6 May) . . Page.. 1541 ..


MR RUGENDYKE (continuing):

To begin with, the vast majority of Belconnen residents do not think they will ever get to see the aquatic centre. It has been promised twice. The last time, the Government said they would spend $15m. Now it is down to $8m. It is little wonder the people are sceptical.

The private pool operators told the Government that their businesses would be hard hit long before Mr Stefaniak picked up his shovel for a sod turning in front of the cameras. These concerns were clearly outlined by the Nicholas report in 1997. The Chief Minister acknowledged this in the Estimates Committee hearings last year, and this was also acknowledged in the Allen report, which was released this week. The Nicholas report was never released publicly. The Government chose to ignore these concerns and went about turning sods. Lo and behold, within a few sleeps, the Government was slapped with competitive neutrality complaints.

When these complaints were served, the Government had to investigate them to comply with competition policy. For a government which has put on the record that its position is to "extend national competition policy reform beyond that required under the agreement", I find it amazing that the Government did not undertake a public benefits study before making the big promise. If the Government is so committed to, and aware of, national competition policy reforms, why would it not put in the safeguard against competition policy complaints? That safeguard was a public benefits test, but the Government employed that study only when it was forced upon them. The Government knew that there were stringent complaints from private operators. The Nicholas report said in relation to Big Splash Waterpark:

The new facilities would have a dramatic impact on this centre. The severity of this impact will be high, possibly to the point where the centre will be uneconomical to operate.

You did not have to be a genius to work out that the private operators would complain. The Nicholas report also said:

There is a need for the government to carefully consider the potential of negative impacts on the existing facilities and to develop appropriate strategies in the management of this issue.

The Government did not do this. The existing facilities concerns should have been explored fully by the Government undertaking a public benefit study before making the $15m promise. But obviously the Government was desperate for some good election publicity and decided to rush ahead and announce the proposal. The result has been an embarrassing series of events and a proposal which has seen the dollar amount committed almost halved.

This week I have held discussions with the National Competition Council about the Allen report and the Government's handling of the Belconnen pool issue. It does appear that the completion of the public benefits study, albeit late, has the Government finally on the right course. But they are not home and hosed yet. This whole proposed project


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