RAJ REPORT

VOODOO BUDGET 2015—-Taxpayers will PAY for increasing the DEBT OF ELECTRICITY companies according to TREASURY————-All GOCs face increasing external challenges that could impact value and performance unless they are in a position to respond. To the extent that GOCs are restricted in their capacity to respond, this will have a direct impact on returns to the State, with the cost ultimately borne by taxpayers. This requires Government to address issues around structure and governance as a priority.

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GOC  PERFORMANCE  AND  SUSTAINABILITY 8.1 BACKGROUND The  State  owns  and  operates  a  number  of  commercial  businesses  with  a  total  asset  value  of   approximately  $66 billion. Of  the  businesses,  ten are  established  as  GOCs  under  the  Government  Owned  Corporations   Act  1993 (GOC  Act) and  have  a  commercial  focus  in  the  electricity,  ports  and  commercial   water  sectors.     Seqwater  and  Queensland  Rail  are  statutory  authorities  and  are  not  regarded  as   ‘self-­supporting’.    The  term  ‘GOC  Sector’  should  in  this  Chapter  be taken  to  mean  the  ten GOCs  covering  electricity  generation  and  networks,  ports  and  SunWater Limited  (SunWater).     Appendix  A  provides  details  of  the  asset  bases  and  debt  levels  of  the  individual  GOCs.     The  GOC  sector  has  assets  of  $36.2  billion  as  at  30  June  2014  which  represents   approximately  12%  of  the  total  assets  of  the  State  of  $306  billion.    Total  debt  of  the  GOC   sector  is  $19.9 billion,  representing  27%  of  the  State  borrowings  of  $72.7 billion.    These   businesses  provided  dividends and tax  equivalents  to  the  State  of  approximately  $1.7 billion   in  the  year  ending  30  June  2014. The  Government  has  committed  to  retaining  these  commercial  businesses  in  Government   ownership  and  separately  paying  down  debt.   Retaining  these  entities  in  Government   ownership  means  that  the  Government  as  a  shareholder  needs  to  decide  what  it  wants  to   achieve  through  the  ownership  of  the  businesses. All  GOCs  face  increasing  external  challenges  that  could impact  value  and  performance unless they  are  in  a  position  to  respond.    To  the  extent  that  GOCs  are  restricted  in  their   capacity  to  respond,  this  will  have  a  direct  impact  on  returns  to  the  State, with  the  cost ultimately  borne  by  taxpayers.   This  requires  Government  to  address  issues  around structure  and  governance  as  a  priority.

 

 

 

https://www.treasury.qld.gov.au/publications-resources/review-of-state-finances/review-of-state-finances.pdf.

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