Hansard 4 Sep 1996

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Hansard 4 Sep 1996 4 Sep 1996 Ministerial Statement 2391 WEDNESDAY, 4 SEPTEMBER 1996 equivalent to an after-tax return of $12.6m. The Queensland Government will receive a dividend payment of $10.9m and a further $8.6m in income tax equivalents. Mr SPEAKER (Hon. N. J. Turner, Nicklin) The QIDC's results indicate some read prayers and took the chair at 9.30 a.m. encouraging signs in Queensland's rural sector, although wool and beef are still suffering badly and much of the State is still in PETITIONS drought. The result also indicates the inherent The Clerk announced the receipt of the strength of the QIDC and the important part following petitions— that it will play in the merged financial entity. However, it also shows why the merger is School Cleaners necessary, that is, to protect the QIDC's Queensland-orientated expertise and to give From Mr Bredhauer (160 signatories) rural clients of the QIDC even more services. requesting the House reverse the State The Government believes that the best way to Government's decision to privatise cleaning in achieve this is by including the QIDC in the Queensland schools, thereby ensuring clean merged entity to increase the capital mass of hygienic State schools and secure long-term the whole. The QIDC's expertise and employment of cleaners in schools. experience in the rural sector will be a valued Similar petitions were received from asset, and its business banking experience will Mr Springborg (174 signatories) and also be well utilised. The QIDC has continued Mr Purcell (282 signatories). its expansion of branches and agencies in country areas, and those branches and agencies will provide expanded services once Gun Control Laws the merger goes ahead. From Miss Simpson (110 signatories) Under the previous Labor Government all requesting the House to demonstrate its firm community service obligations for the QIDC support for uniform national gun laws and to were removed, and it has operated on a take all possible action to expedite their purely commercial basis. This is a fact that implementation, and resist all calls for the Labor does not talk about now. It is a fact that control measures to be watered down or there is no community service obligation in the abandoned. QIDC charter and, in fact, it was specifically Petitions received. removed by Labor. As a commercial entity the QIDC has proved itself successful. It has succeeded admirably in the commercial arena, MINISTERIAL STATEMENT and this success has meant that, to all QIDC Financial Results 1995-96 concerned, the QIDC is now ready to move on Hon. J. M. SHELDON (Caloundra— to a new stage as part of the merger with Deputy Premier, Treasurer and Minister for Suncorp and Metway. The Queensland The Arts) (9.32 a.m.), by leave: The 1995-96 coalition Government does not believe that financial results will be released today for the Governments should be in the business of QIDC, and they show that the corporation has banks, building societies and insurance achieved good results in a difficult economic companies. environment. Improving conditions in some Opposition members interjected. rural sectors and a sustained and aggressive Mrs SHELDON: Because of the business development program have resulted Government's belief, it will sell down its in the improved performance by the QIDC. shareholding in the new entity to 15 per cent. The QIDC lifted its profit result by 23.2 per However, at the same time, we believe that cent over the previous 12-month period to there should be a major Queensland-based achieve an after-tax profit of $27.1m. The financial entity so that our State does not result came through strong lending growth, continue to be little more than a branch office improving rural conditions and consistent asset for Sydney and Melbourne. The merger is the quality. Total lending and other receivables for best of both worlds for Queensland and the QIDC grew by $493.2m, or 23.2 per cent, Queenslanders, and the QIDC will play an to $2.6 billion, while capital and reserves important role in this major Queensland increased by a total $14.6m, or 7 per cent, to financial entity. The Labor Opposition has $221.9m. The corporation's net profit rose done its best to talk down the QIDC and $5.1m on last year's result of $22m and was Suncorp or to claim that the QIDC's rural and 2392 Ministerial Statement 4 Sep 1996 commercial expertise will be lost once the number of requests for rulings on complex tax merger takes place. I believe that today's issues. There have been a number of release of the 1995-96 results shows that the amendments to public rulings and four new QIDC, and its rural expertise, will be a major rulings have been issued. Rulings ensure that player in the merged entity. I commend the Government owned corporations subject to board and management of the QIDC for their the tax equivalents regime are neither good work over the past 12 months and for advantaged nor disadvantaged in comparison their enthusiastic support for the merger of the with their private sector competitors in the QIDC with Suncorp and Metway. There are Commonwealth tax regime. exciting times ahead for all concerned and for Queensland as a whole. Changes include that the value of assets contributed to a Government owned corporation or cash contributions towards the MINISTERIAL STATEMENT assets of a Government owned corporation will be treated in a tax neutral manner, and that State Tax Equivalents Regime tax deductions for payment of sales tax Hon. J. M. SHELDON (Caloundra— equivalents will be permitted only in the year Deputy Premier, Treasurer and Minister for payment is made. Several new rulings have The Arts) (9.37 a.m.), by leave: I wish to table been introduced, including the following: a tax a number of amendments to the Treasurer's deduction for depreciation of sealed airport Tax Equivalents Manual, a document runways will be permitted; Government owned authorised by the Government Owned corporations may pro rata their fringe benefits Corporations Act, which provides the tax liability in the year in which they enter the mechanism for administering Queensland's tax equivalents regime; public officers of tax equivalents regime. The tax equivalents subject entities will not be personally liable for regime was implemented under an agreement tax penalties incurred or tax owing by a subject reached at the 1994 Premiers Conference. entity; and a proportionate tax deduction, This agreement, which was concluded by the based on the arm's length value of any Commonwealth and all the States and standing timber held by DPI Forestry at the Territories as a micro-economic reform date it entered the tax equivalents regime, will measure, requires State trading enterprises, be permitted in the year that timber is felled. I such as Queensland Government owned lay this program upon the table of the House. corporations, to be subjected to a State tax equivalents regime which mirrors the Commonwealth's own tax regime. MINISTERIAL STATEMENT The manual was first issued in 1994, and Surgery on Time experience of its use has demonstrated that a number of amendments are now required. Hon. M. J. HORAN (Toowoomba Most of these are procedural in nature or South—Minister for Health) (9.40 a.m.), by correct minor numbering or typographical leave: On 1 July 1996, Cabinet approved a errors. There are, however, a number of planned approach to enhancing elective matters of policy, including that the definition surgery services in Queensland public of "subject entity" has been amended. This hospitals under the title Surgery on Time. The term is used in the tax equivalents regime to initiative targets those aspects of the health describe taxpayers, and its definition now system that impact on elective surgery services, including: better information and includes Government owned corporations, reporting arrangements; appropriately qualified their wholly owned subsidiaries and and trained clinical staff; enhanced capital commercialised business units of Government infrastructure; better utilisation of our operating departments. This ensures that the significant theatres; strategies to increase day surgery business activities of Government rates; improved post-acute care in the departments operating in direct competition community; the development of better clinical with the private sector are subject to the tax equivalents regime, as is required by the practices; and extra funding and incentive National Competition Policy. packages to ensure that our objectives are achieved. These strategies are currently being The time limit for the tax assessor to implemented and target the broader issues respond to requests from subject entities for that impact on elective surgery services in private tax rulings has been extended from 30 Queensland public hospitals. Their days to 60 days. Initial experience has shown implementation has resulted in a 12 per cent that 30 days was insufficient time for the tax overall reduction in the number of Category 1 assessor to deal with a comparatively large patients in Queensland public hospitals and a 4 Sep 1996 Ministerial Statement 2393 44 per cent reduction in long-stay Category 1 any deterioration in a patient's condition will be patients. This represents a net reduction of taken into account. 243 long stay Category 1 patients. Unfortunately, time delays are a part of Following an extensive consultation the difficult task we face in orthopaedics, which process that included discussions with the has traditionally been underfunded. The specialist medical colleges and associations, a coalition Government is moving quickly to number of specialty areas were identified that remedy funding for major joint surgery required additional support. These include undertaken in Queensland public hospitals. orthopaedic surgery, ophthalmology, ENT These changes will be introduced in January surgery, urology and cardiac surgery.
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