Mr WOOD - 2005-10-12
Following a report in yesterday’s Financial Review, I believe an internal message was relayed to TIO staff stating that TIO was not going to be sold. On the radio this morning, you intimated that the selling off of TIO was a possibility. Could you please say whether the staff of TIO have been given a bum steer, or is there a real possibility that TIO, or part of it, will be sold? Is it true, if it is to be sold, as quoted in the Australian Financial Review, the reasons for it are that the Territory Insurance Office could be sold to fund a $600m waterfront development, or additional sale proceeds could be used to fund promised tax cuts?
ANSWER
Madam Speaker, I thank the member for Nelson for his question. I say at the outset that was not my report, a Northern Territory government report, or the Treasurer’s report in the Australian Financial Review. Reporters will report on any number of things from time to time, but let us be very clear: that was not my report, nor was the speculation around, if it ever was sold, what those proceeds might be put to.
I will be very clear at the outset, and it is very important that everyone understand this issue: this government has made no decision to sell TIO. What we are doing is embarking on a study, which will probably take two to three months, to fully inform government as to the best way forward for TIO. We have done a lot of work in the last couple of years around TIO.
I well recall, from the many years in opposition, the difficulty we had in understanding just exactly how TIO went about its business. Its finances were never very clear, and we needed to understand very clearly how TIO operated when we came to government. Over the last couple of years, we have had studies done to separate the different arms - the finance from the insurance from the MACA side of the operation - so that there is very clear transparency and accounting, as there always should have been around those different business arms of the Territory Insurance Office.
That was an important body of work and it gave us a lot more understanding, with the benefit of Mr Tsouroutis, the Manager of TIO, who clearly understood how these things should operate in a proper financial recording and accounting sense from his previous background in this industry. He has gone about those tasks very well, and very clearly brought the organisation to a much clearer and more stable financial footing than it probably ever has had in the past.
Notwithstanding that, we have undertaken a study to look and project into the future to give government advice and options as to what would be a way forward; the best possible management, including an option of sale of one or various arms, or all in fact, of TIO. No decision has been made. There is a body of work about to commence. That will take about two to three months. Based on that much clearer and full information at its disposal, the government will make a decision probably some time in the new year.
However, nothing could be further from the truth to say that government is about to sell, or has decided to sell, TIO. I am advised that staff were told that no decision had been made about the sale or otherwise of TIO. That situation was described as media speculation by the TIO Board, and probably much of that Financial Review article is, indeed, speculation.
ANSWER
Madam Speaker, I thank the member for Nelson for his question. I say at the outset that was not my report, a Northern Territory government report, or the Treasurer’s report in the Australian Financial Review. Reporters will report on any number of things from time to time, but let us be very clear: that was not my report, nor was the speculation around, if it ever was sold, what those proceeds might be put to.
I will be very clear at the outset, and it is very important that everyone understand this issue: this government has made no decision to sell TIO. What we are doing is embarking on a study, which will probably take two to three months, to fully inform government as to the best way forward for TIO. We have done a lot of work in the last couple of years around TIO.
I well recall, from the many years in opposition, the difficulty we had in understanding just exactly how TIO went about its business. Its finances were never very clear, and we needed to understand very clearly how TIO operated when we came to government. Over the last couple of years, we have had studies done to separate the different arms - the finance from the insurance from the MACA side of the operation - so that there is very clear transparency and accounting, as there always should have been around those different business arms of the Territory Insurance Office.
That was an important body of work and it gave us a lot more understanding, with the benefit of Mr Tsouroutis, the Manager of TIO, who clearly understood how these things should operate in a proper financial recording and accounting sense from his previous background in this industry. He has gone about those tasks very well, and very clearly brought the organisation to a much clearer and more stable financial footing than it probably ever has had in the past.
Notwithstanding that, we have undertaken a study to look and project into the future to give government advice and options as to what would be a way forward; the best possible management, including an option of sale of one or various arms, or all in fact, of TIO. No decision has been made. There is a body of work about to commence. That will take about two to three months. Based on that much clearer and full information at its disposal, the government will make a decision probably some time in the new year.
However, nothing could be further from the truth to say that government is about to sell, or has decided to sell, TIO. I am advised that staff were told that no decision had been made about the sale or otherwise of TIO. That situation was described as media speculation by the TIO Board, and probably much of that Financial Review article is, indeed, speculation.
Last updated: 09 Aug 2016