Page 1831 - Week 06 - Thursday, 9 May 2013

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MR SESELJA: I table the following paper:

Reportable contracts—Agencies reporting reportable contracts for period 1 April 2012 to 31 March 2013.

Executive business—precedence

Ordered that executive business be called on.

ACTEW Corporation Ltd—governance

Statement by minister

MR BARR (Molonglo—Deputy Chief Minister, Treasurer, Minister for Economic Development, Minister for Sport and Recreation, Minister for Tourism and Events and Minister for Community Services), by leave: Mr Assistant Speaker, I am providing this statement pursuant to part (9)(b) of the resolution of the Assembly on 10 April 2013 concerning the general meeting of members of ACTEW Corporation Ltd held on 15 April 2013. Under that part of the Assembly resolution the government gave an undertaking to discuss issues relating to remuneration at the general meeting with the ACTEW board and report back on any resolution in this sitting.

The first item of business that was discussed concerned the managing director’s remuneration. Mr Sullivan was not in attendance during these discussions. As ACTEW’s voting shareholders, the Chief Minister and I conveyed to the board our concern about the level and complexity of the managing director’s remuneration package. We also questioned the appropriateness of the bonuses paid to the managing director and indicated our disappointment about a lack of transparency in setting the salary package. We confirmed our view that the board should set the remuneration for the managing director and that this was not a role for the voting shareholders.

However, we made it clear that we considered that the remuneration appeared excessive. We acknowledged that in setting the package the board had taken independent and expert advice from Egan and Associates. However, we made the point that that salary needed to be supported by robust and independent advice. We suggested to the board that they should also consider obtaining the advice of the ACT Remuneration Tribunal.

During the course of the discussion the chairman advised that the managing director had offered to reduce his remuneration and accept a less complex salary arrangement. At this point I can advise that the chairman subsequently wrote to the Chief Minister on 19 April 2013 to confirm that the board had agreed to Mr Sullivan’s offer to enter into a new employment contract. As a result, the board has approved a new fixed term contract with total remuneration, including superannuation, of $693,000 per annum. There are no performance, incentive or bonus payments involved in the new contract.

Mr Assistant Speaker, I am also able to advise that there were several other matters that were placed on the agenda and discussed at the general meeting. Those issues related to the transparency of reporting and communications, the review into

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