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Hansard 8 June 1994

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Hansard 8 June 1994 Legislative Assembly 8175 8 June 1994 WEDNESDAY, 8 JUNE 1994 Royal Commission into Aboriginal Deaths in Custody From Mr Littleproud (848 signatories) praying that the Parliament of Queensland will, Mr SPEAKER (Hon. J. Fouras, Ashgrove) wherever possible, pass legislation read prayers and took the chair at 2.30 p.m. implementing the recommendations of the Royal Commission into Aboriginal Deaths in Custody. PETITIONS The Clerk announced the receipt of the Police Patrols, Innisfail following petitions— From Mr Rowell (790 signatories) praying for effective police foot patrols to be provided in Aborigines Welfare Fund Board of the Innisfail central business district. Trustees From Mr J. N. Goss (15 signatories) Sentencing Procedures praying that the Parliament of Queensland will From Mr Turner (3 217 signatories) take action to ensure that the Government praying that appropriate steps be taken to consults with the Aboriginal community, ensure that prisoners serve the full sentence particularly potential claimants, in the structure, handed down by the courts upon a conviction. constitution and establishment of the Aborigines Welfare Fund Board of Trustees and that monies in the fund be returned to Aboriginal workers Capital and Corporal Punishment who earned it. From Mr Turner (29 signatories) praying that the Parliament of Queensland will instigate a Auburn Road, Chinchilla Shire referendum for the return of capital and corporal From Mr Littleproud (46 signatories) punishment. praying that urgent funding be provided for the Petitions received. maintenance of the gravel section of the Auburn road in Chinchilla Shire. PAPER Cardiothoracic Unit, Prince Charles The following paper was laid on the table— Hospital Minister for Justice and Attorney-General and Minister for the Arts (Mr Wells)— From Mrs Sheldon (41 signatories) praying that the proposal to relocate the Prince Director of Prosecutions—Annual Report Charles Hospital Cardiothoracic Unit to the Royal for the year ended 31 December 1993. Brisbane Hospital be rescinded. MINISTERIAL STATEMENT Sky-rail, Cairns and Kuranda Price Waterhouse Report on Operations From Dr Clark (127 signatories) praying of Suncorp that the Parliament of Queensland will continue Hon. K. E. De LACY (Cairns— to give full support to the Smithfield-Kuranda Treasurer) (2.34 p.m.), by leave: In March, I Sky-rail project. announced the appointment of international accounting firm Price Waterhouse to undertake a Land/Water Police Station, Redland Bay comprehensive review of the operations of Suncorp. The objective of the Price Waterhouse From Mr Budd (406 signatories) praying review was to provide the State Government with that the Parliament of Queensland will examine a better understanding of Suncorp's activities the need for a 24-hour land/water police station and the potential impact that various factors such at Redland Bay. as competition might have for the Government as ongoing owner of Suncorp. While the Government had no reason to be concerned about the performance or viability of Suncorp, it 8 June 1994 8176 Legislative Assembly was also determined to have a complete Suncorp's capital requirement for growth is a key understanding of all the issues so that it could issue for Government. make decisions based on the long term best Cabinet has decided that, in managing interests of the taxpayers of Queensland. Queensland's finances, the Goss Government On Monday, the Premier and I briefed must continue to give priority to the core Cabinet on the findings of the Price Waterhouse business of Government, which is delivery of analysis. Their key findings were as follows— services such as health and education and There are presently no "black holes" in provision of infrastructure for the State's either Suncorp's balance sheet or its economic development. The Government has operations. therefore taken the view that the capital needed for Suncorp's expansion plans may have to be Suncorp is financially secure and sourced from the private sector. This capital adequately capitalised for its present could be provided in a variety of ways, including operations. direct share capital or through "quasi equity" like The normal business risks of ownership can subordinated debt. Suncorp would be be managed by subjecting Suncorp to an structured in such a way that Government appropriate prudential and performance ownership of the parent would be maintained monitoring process; by ensuring the and the State's access to Commonwealth tax continued presence of an expert equivalents preserved. commercially focused board; and by With this decision, Suncorp can now move assuming a more pro-active role as quickly to meet the competitive challenges it shareholder. faces, confident that it will not be denied the Perhaps most importantly, Price capital needed for expansion. The Government's Waterhouse advises that, in order to meet decision also provides Queensland taxpayers the challenge of increasing competition with continued access to both the dividend from other financial institutions, Suncorp will stream from profits and Commonwealth tax need to expand into markets outside equivalents, as well as removing from the Budget Queensland. the need to find capital for Suncorp at the In short, Price Waterhouse has given expense of other priority programs. The Suncorp a clean bill of health but at the same Government will be working closely with Graham time presented the State Government with some Tucker and the rest of the Suncorp board, challenges to ensure the future prosperity of this through the process of corporatisation, to great Queensland institution. The Goss implement a comprehensive strategy aimed at Government has decided to accept those preserving and enhancing Suncorp's challenges. competitive position. Suncorp will remain in Government The report from Price Waterhouse obviously ownership and be subject to the process of contains a great deal of commercially confidential corporatisation. Both the Premier and I are material. While it is not appropriate therefore to convinced that, based on all the facts before us, table the report, I will table for the benefit of the people of Queensland are still best served honourable members a copy of the covering through a continuation of Government letter from Price Waterhouse. ownership of Suncorp. The Price Waterhouse report made it very clear that the key to Suncorp MINISTERIAL STATEMENT maintaining its value as an asset would be its ability to adapt to the significant changes which Queensland Investment Corporation are occurring in its competitive and regulatory Hon. K. E. De LACY (Cairns— environments. Suncorp will need to develop a Treasurer) (2.38 p.m.), by leave: I am pleased to comprehensive implementation program aimed announce that the Government has recently at achieving its strategic goal of becoming a approved the corporatisation charter for the leading provider of financial services on the east Queensland Investment Corporation. Following coast of Australia. Price Waterhouse advises that on from charters for the QIDC, the major ports Suncorp is likely to need a capital injection of and shortly for the Queensland electricity supply some hundreds of millions of dollars to help fund industry, this charter represents the fourth Suncorp's expansion outside Queensland. corporatisation charter to be approved by the Government and identifies that the Legislative Assembly 8177 8 June 1994 implementation of the Government's appropriate expert advice in developing the corporatisation policy is now well advanced. investment objectives and strategies contained therein. QIC will be accountable to its client Since its formation QIC has capably, funds for performance pursuant to the IPS. The responsibly and efficiently managed the development of an IPS for each client fund will investment of funds belonging to the State provide benefits to both the QIC and the client Government and its employees. These funds funds, in that the QIC will be able to develop now total in excess of $10 billion, and QIC's investment strategies which are more closely excellent investment performance has helped to tailored to client fund objectives. ensure that Queensland's public sector Pursuant to the terms of the Investment Policy superannuation schemes remain fully funded. Statement established between QIC and its This demonstrates that the Government's client funds, QIC will provide each respective strategy of exclusively placing its core, long-term client with a thorough report of the performance funds with its own funds management of that client's investment portfolio on a regular organisation has been a sound one. This role of and formalised basis. The time frame for this the QIC as the Government's specialist funds reporting is to be agreed between the QIC and manager will be reaffirmed under corporatisation the client. A program for the development of an Investment Policy Statement for each client fund with the mandating of the management of certain will be established with a view to completion by core defined benefits schemes to the 31 December 1994. corporation. Under corporatisation, the QIC Board will be The Government's objectives in preserving accountable to the Shareholding Ministers for its ownership of the QIC will be best served if QIC development and maintenance of both the retains autonomy in its investment decision commercial and investment processes of the making and management. The current structure QIC, which will be subject to appropriate of the QIC is fundamentally consistent
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