Ministerial Statement Reform of the Power and Water Authority Six months on
Tabled paper 1301
Tabled Papers for 8th Assembly 1997 - 2001; Tabled Papers; ParliamentNT
1999-06-03
Tabled by Barry Coulter
Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.
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https://www.legislation.gov.au/Series/C1968A00063
https://hdl.handle.net/10070/296056
https://hdl.handle.net/10070/394163
12 revaluation exercise is being carried out in close consultation with NT Treasury and the Auditor-General. The Authoritys accounting ledger is also currently being rewritten to ensure business outcomes can be accurately measured. Implementation is targeted for 1 July 1999. This rewrite will enable line of business financial information to be captured and reported upon in a commercial format (that is, via profit and loss statements, funds flow statements and balance sheets). The ledger rewrite is being undertaken in consultation with DCIS and NT Treasury. Following extensive discussions with Treasury officials, agreement has been reached to restructure the Authoritys budget to a single line appropriation from 99/00. Detailed shareholder reporting will be made in a commercial format on a line of business basis. Major changes to the 99/00 budget resulted from an increase in community service obligation funding arising from the use of the Merrill Lynch Fay Richwhite financial model and a rational dividend policy. Mr Speaker, the savings that will be delivered by this package add up to nearly $7 million in ongoing financial improvement already with more to come from these same reforms in future years. The target for year one was $10 million and we are only six months into the job so it has been a good start. These savings are being returned to customers in the form of lower tariffs and more will come as more savings are realised. A num ber of large customers have already taken up the new demand tariff and some have entered into long term contracts. A word of caution, however. 12