Mr WOOD - 2012-10-31
The NT News today said you will do whatever you have to, to make Power and Water a commercially sustainable business. What will that mean for those communities serviced by the Indigenous Essential Services Pty Ltd - a not-for-profit subsidiary of Power and Water - which presently only recovers 20% of its costs from customers? Will the IES also have to become a commercially sustainable business? If so, what will that mean to the people living in the 72 remote communities in relation to water, electricity, and sewerage charges?
ANSWER
Madam Speaker, I thank the member for Nelson for his question. There will be no change to the Indigenous Essential Services. Those communities will not be affected by any increases in tariffs.
In the paper I was quoted as saying we will do anything we can to return Power and Water Corporation to commercial sustainability, that is exactly what I meant. We are identifying savings across the realm of the Power and Water Corporation. We have identified capital expenditure savings, deferment of expenditure, and we are looking at tariff increases.
We make no secret of what we have to do to make Power and Water Corporation financially viable. The position we inherited from the former government - 10 weeks in we have a reasonably clear picture of what we are working with. The picture is bleak, thanks to the former Treasurer, the former shareholder minister who abrogated her responsibilities to properly manage the affairs of Power and Water Corporation …
Ms Lawrie: It was clear in the PEFO. It was clear in the statement of corporate intent.
Mrs Walker: What are you doing to put the lights on in Gove?
Madam SPEAKER: Order!
Mrs LAMBLEY: Yes, she is embarrassed ...
Ms Lawrie: No I am not.
Mrs LAMBLEY: ... and her interjections are coming fast and furiously, but the reality is Territorians will experience some pain …
Mr WOOD: A point of order, Madam Speaker! My question was specific, so it is relevance. My questions was whether people in the remote communities will have an increase in their tariffs if the government decides to turn it into a commercially sustainable proprietary limited.
Madam SPEAKER: Treasurer, if you could get to the point.
Mrs LAMBLEY: Madam Speaker, I have answered the question the member for Nelson has asked. Commercial sustainability is what any corporation aspires to, and most corporations function at that level. The former Treasurer never really understood what that meant.
That means covering costs and making a profit. If you make a profit it means the government does not have to prop up Power and Water Corporation. We do not have to put all the money which should be spent on roads, houses, health services, and education services, into propping up Power and Water Corporation.
The former Treasurer failed to understand the economic cost of propping up Power and Water Corporation; she loaded up the debt of the Northern Territory to the extent where we are all suffering.
In answer to your question, member for Nelson, Indigenous Essential Services will not be changed or affected.
Mr Henderson: That is outrageous.
Mrs LAMBLEY: It is outrageous, you are right.
ANSWER
Madam Speaker, I thank the member for Nelson for his question. There will be no change to the Indigenous Essential Services. Those communities will not be affected by any increases in tariffs.
In the paper I was quoted as saying we will do anything we can to return Power and Water Corporation to commercial sustainability, that is exactly what I meant. We are identifying savings across the realm of the Power and Water Corporation. We have identified capital expenditure savings, deferment of expenditure, and we are looking at tariff increases.
We make no secret of what we have to do to make Power and Water Corporation financially viable. The position we inherited from the former government - 10 weeks in we have a reasonably clear picture of what we are working with. The picture is bleak, thanks to the former Treasurer, the former shareholder minister who abrogated her responsibilities to properly manage the affairs of Power and Water Corporation …
Ms Lawrie: It was clear in the PEFO. It was clear in the statement of corporate intent.
Mrs Walker: What are you doing to put the lights on in Gove?
Madam SPEAKER: Order!
Mrs LAMBLEY: Yes, she is embarrassed ...
Ms Lawrie: No I am not.
Mrs LAMBLEY: ... and her interjections are coming fast and furiously, but the reality is Territorians will experience some pain …
Mr WOOD: A point of order, Madam Speaker! My question was specific, so it is relevance. My questions was whether people in the remote communities will have an increase in their tariffs if the government decides to turn it into a commercially sustainable proprietary limited.
Madam SPEAKER: Treasurer, if you could get to the point.
Mrs LAMBLEY: Madam Speaker, I have answered the question the member for Nelson has asked. Commercial sustainability is what any corporation aspires to, and most corporations function at that level. The former Treasurer never really understood what that meant.
That means covering costs and making a profit. If you make a profit it means the government does not have to prop up Power and Water Corporation. We do not have to put all the money which should be spent on roads, houses, health services, and education services, into propping up Power and Water Corporation.
The former Treasurer failed to understand the economic cost of propping up Power and Water Corporation; she loaded up the debt of the Northern Territory to the extent where we are all suffering.
In answer to your question, member for Nelson, Indigenous Essential Services will not be changed or affected.
Mr Henderson: That is outrageous.
Mrs LAMBLEY: It is outrageous, you are right.
Last updated: 09 Aug 2016