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.