Page 3983 - Week 11 - Tuesday, 15 Sept 2009
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During the first term of office of this government, we spent a considerable amount of time and resources on resolving the many problems that wracked Totalcare. It was very clear to all that were involved—there were a number of us who were directly involved—that Totalcare was dysfunctional with many entrenched deficiencies. The troubled state of Totalcare stemmed back to the then Carnell government’s decision to transfer the works and commercial services functions of the former Department of Urban Services. These functions included engineering services, survey, landscape, architectural services, housing and property maintenance, accommodation services, fleet, and maintenance services. Until then, Totalcare had operated profitably and provided modest dividends. Much to this government’s dismay, we found this odd assortment of businesses with very different operational requirements, which created a dysfunctional company with an abysmal performance record.
During the intervening period from the date of transfer of the works and commercial services functions—and Mr Smyth might know this better than anyone as the minister responsible at the time—from 1 January 1997 until 30 June 2003 no dividends at all were paid. Accumulated losses were in excess of $21 million and net assets fell by $16 million from $35.8 million in 1998-99 to $19.8 million by 30 June 2003. That was despite a government equity injection of $5 million in 2001-02. The Williamsdale quarry joint venture was wound up in 2001-02 with an accumulated loss of $5.3 million. So that is Mr Smyth’s record on managing Totalcare. That is a prime example of how badly things go wrong if the government of the day decides to directly intervene in the operations of a territory-owned corporation.
Mr Seselja: How did you go with Rhodium?
MS GALLAGHER: Did you just hear that? I have got nine minutes and 26 seconds to go so—
Mr Seselja: What did the Auditor-General say about you and Rhodium?
MS GALLAGHER: Let us just hear this again, because it is a gem. This is Mr Smyth’s record: from 1 January 1997 to 30 June 2003, no dividends were paid, there were accumulated losses in excess of $21 million—
Mr Seselja: How did you go with Rhodium?
MS GALLAGHER: And where did Rhodium come from? That great little chestnut of Totalcare, was it not?
Mr Smyth: No, Rhodium was yours. You set Rhodium up. Ted set it up.
MS GALLAGHER: I think it was included—yes, there it is, ACT Fleet, there is the little link to Totalcare. This is Mr Smyth’s grand stewardship: no dividends. What do you say to that, Mr Smyth? Accumulated losses in excess of $21 million, assets fell by $16 million, from $35.8 million to $19.8 million in June 2003, despite an equity injection from the government of $5 million, and the Williamsdale quarry joint venture was wound up with an accumulated loss of $5.3 million.
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