Department of the Legislative Assembly, Northern Territory Government

Mr BALCH - 1999-02-23

The Treasurer has indicated that the government is investigating the sale of the Power and Water Authority. Can he please tell Territorians what stage the sell-off plans have reached?

ANSWER

Mr Speaker, a number of matters, of course, have been raised in relation to this particular issue. This is a very important one that the member for Jingili puts a question to today and one, of course, that necessarily has generated much interest in the Northern Territory.

The government has embarked on a process of having consultants advise on the Power and Water Authority, what options could be provided to government in relation to the authority’s future and, in particular, the ability for us to decrease the price of electricity to Territory consumers.

Whatever the outcome, as I indicated last year in the Planning For Growth statement, of these deliberations, there will be, necessarily, significant and wide-ranging change. Every aspect of the operation of the Power and Water Authority has been under the microscope and, indeed, I would say from the minister’s point of view, will be for some time.

Some of the things that have been considered in more recent times are the crew sizes of those groups who go out to provide services in the community, the work done in-house, the potential for outsourcing in areas such as engineering consultants, pole manufacturing which is done in-house - we certainly believe there’s a capacity for that to be done in the private sector - tree trimming, and meter reading. I dare say that the management of the authority itself will also come under scrutiny by the authority and the minister, in the process of achieving the $30m savings target that we have determined as a government, will make the authority a viable one and one that is operating in a very much more commercial field than they are at the moment.

This can’t be one-off savings, that $30m. They have to be ongoing but the consultations with the unions, as I understand it, indicate that that can be done. The process to date indicates that that could be well achievable and from that point of view the government has determined that the Power and Water Authority will not be sold as an entity. As I’ve indicated, there are currently activities in that undertaking.

Mr Stirling interjecting.

Mr REED: It is really difficult to try and advise Territorians on this very important issue when you have the …

Mr Stirling: interjecting.

Mr REED: …rudeness of members opposite.

Mr Stirling: You use that excuse most of the time.

Mr SPEAKER: Order! More than half of question time has been used up by inappropriate comment from the opposition.

Mr REED: I can advise that the Power and Water Authority, as an entity, will not be sold. However, that decision is contingent on the achievement of the $30m savings, as I said. At the outset, there will be significant and wide-ranging change. Every aspect of the Power and Water Authority is under the microscope. However, we are hopeful that that can be achieved and that the authority as an entity and in a very modified form will remain in public ownership.
Last updated: 09 Aug 2016