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FACT SHEET
GOVERNMENT BUSINESS ENTERPRISES AND STATE-OWNED
COMPANIES LEGISLATION AMENDMENT BILL 2009
· The Government Business Enterprises and State-owned Companies
Legislation Amendment Bill 2009 amends the Government Business
Enterprises Act 1995 and the portfolio legislation of a number of
Government businesses to update the methodology for applying
guarantee fees and to achieve consistency in governance arrangements.
· Consistent with competitive neutrality principles, guarantee fees are
payable by Government businesses on financial accommodation (primarily
loans obtained from the Tasmanian Public Finance Corporation) to offset
the borrowing cost advantage of public ownership.
· The amendments contained in the Bill allow multiple guarantee fee rates
to be determined for each business. The current maximum rate of one per
cent is also removed.
· As State-owned Companies are not specifically subject to the
Government Business Enterprises Act, the Bill also amends the portfolio
legislation of State-owned Companies to clarify that the guarantee fee
provisions of the Government Business Enterprises Act applies to all
Government businesses in a consistent manner.
· The Bill also removes specific provisions in the Forestry Act 1920 that
relate to appointments to the Board of Forestry Tasmania. These
amendments will ensure that the governance arrangements for Board
appointments to all Government Business Enterprises will be treated in a
consistent manner.
· Transitional arrangements ensure that existing Board members of
Forestry Tasmania are taken to have been appointed under the provisions
of the Government Business Enterprises Act and that their terms of office
and conditions are preserved.