Ian Gilfillan

 Extract from Hansard

 Legislative Council
30 July 1999

 

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LOCAL GOVERNMENT BILL
PRINCIPLES OF COMPETITIVE NEUTRALITY FOR COUNCIL SUBSIDIARIES

Debate on the Local Government package of Bills. i.e. 
  • Local Government Bill 1999,
  • Local Government (Elections) Bill 1999,
  • Statutes Repeal and Amendment Bill (Local Government) 1999

took place in the Legislative Council over two weeks: from 27 July to 5 August 1999.  For ease of reference on the Democrats web site the debates have been separated into individual pages, each page containing an edited transcript of only one aspect of the total package.

This page covers only Democrat attempts to remove the State Government's capacity to proclaim in regulations, so-called "principles" of competitive neutrality, without putting them in law.  For an index of other topics covered in the Local Government Bills, see the Democrats Local Government page, or the 1999 Budget Session Index

The Hon. DIANA LAIDLAW: I move:

Clause 15, page 224, lines 3 to 12—Leave out this clause and insert:

Principles of competitive neutrality

15. If a subsidiary is declared by its charter to be involved in a significant business activity, the charter must also specify the extent to which the principles of competitive neutrality are to be applied to the activities of the subsidiary and, to the extent that may be relevant, the reasons for any non-application of these principles.

1. See Part 4 of the Government Business Enterprises (Competition) Act 1996.

The amendments relate to the principles of competitive neutrality. With this amendment, the Government is seeking to add some flexibility to the means by which subsidiaries that are significant business activities can implement competitive neutrality practices.

This is consistent with the outcomes of a review of competitive neutrality implemented by the State Government and local government. There is a mirroring amendment for regional subsidiaries in clause 33 which we will address as part of this schedule. I note, too, that the Hon. Mr Gilfillan has an amendment to schedule 2, clause 15. It differs in the fact that he also wishes to remove the need for regulations, and the Government does not believe that that is sound practice in this matter.

The Hon. IAN GILFILLAN: I move:

Clause 15, page 224, line 12—Leave out `or principle'.

Whether or not it is a sound practice in this matter, if the Government's amendment is successful, mine does not apply because the words will have been deleted and replaced. The Government's amendment does not create too much pain, but it does open up another area of concern because in relation to the principles of competitive neutrality (which sound great) the footnote says:

See Part 4 of the Government Business Enterprises (Competition) Act 1996.

The principles are merely declared by the Government. This merely places subsidiaries on the same footing as other Government enterprises and, although I do not intend to deal with it now, the indications are that the Government Business Enterprises Act, which I hope will be before this place before too long, will need to be looked at quite closely, so that there is a more satisfactory spelling out of competitive neutrality as a principle to guide both this Bill (or Act as it will be) and other Government businesses.

The Hon. T. CROTHERS: Mr Chairman, I draw your attention to the state of the Committee.

A quorum having been formed:

The Hon. T.G. CAMERON: SA First will be supporting the Government's position.

The CHAIRMAN: The question before the Chair is that all words in clause 15 down to but excluding `or principle' in line 12 stand as printed.

The Hon. IAN GILFILLAN: Does that embrace the substance of my amendment?

The CHAIRMAN: We are getting to it.

The Hon. IAN GILFILLAN: It just stops before it?

The CHAIRMAN: It is a test. It is moving towards your amendment.

Question negatived.

The CHAIRMAN: We have now gone past the Hon. Mr Gilfillan's amendment. The question now before the Chair is that the remaining words in line 12 stand as printed.

The Hon. IAN GILFILLAN: Mr Chairman, what you are putting to the Committee now has no significance as far as my amendment is concerned.

The CHAIRMAN: No, you have gone past it.

The Hon. IAN GILFILLAN: That is what I understood to be the case.

Question negatived.

The CHAIRMAN: The question before the Chair is that the words proposed to be inserted by the Minister be so inserted.

Question carried.


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