Page 3914 - Week 09 - Thursday, 25 August 2011

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DR BOURKE: Minister, how will these new steps to enhance the ACT’s reputation as Australia’s solar capital affect those younger Canberrans interested in creating a sustainable city?

MR CORBELL: I thank Dr Bourke for the question. These initiatives highlight the fact that, by investing in this type of technological capacity early, we are demonstrating to future generations and the emerging generations what the potential is for large-scale renewable energy generation. We are giving a strong example of where the city needs to go into the future.

Whether it is solar, whether it is smart co-generation and tri-generation capacity, whether it is decentralised energy networks, whether it is the use of other technologies such as biotechnologies, combined heat-power technologies—all of these will play a critical role in giving the city a decentralised, sustainable and renewable energy capacity into the future. The demonstration of these projects gives, I think, great opportunity and inspiration to future generations.

Ms Gallagher: I ask that all further questions be placed on the notice paper.

Superannuation—territory liability

MR BARR (Molonglo—Deputy Chief Minister, Treasurer, Minister for Economic Development, Minister for Education and Training and Minister for Tourism, Sport and Recreation): Last week I tabled a series of papers and Mr Smyth sought some information in relation to the territory’s defined benefit superannuation liability. I have sought some advice on this matter and I can provide the following information to the Assembly.

For budget and annual financial reporting purposes, as I indicated last week, an actuarial evaluation of the territory’s employer defined benefit superannuation liability is undertaken. The valuation process involves the determination of the projected annual emerging cost cash flows across the estimated liability period, which is currently to around June 2080, then calculating the present value of these cash flows as at 30 June each year by discounting the cash flows.

For budgeting purposes, the assumption underpinning the annual budget estimate is a 10-year commonwealth government bond rate of six per cent. The estimated superannuation liability at 30 June 2011 as set out in the 2011-2012 budget was, as Mr Smyth indicated, $4.321 billion.

For annual financial reporting purposes, the actual 10-year commonwealth bond rate as at 30 June 2011 is required to be used to value the superannuation liability in accordance with accounting standards. I can advise the Assembly that the actual annualised rate as at 30 June 2011 was 5.28 per cent. This lower rate has resulted in an increase in the valuation of superannuation liabilities at 30 June 2011 from the budget estimated $4.321 billion to $4.870 billion or an increase, as Mr Smyth indicated, of approximately $550 million.


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