DARWIN PORT AUTHORITY AMENDMENT BILL 1998 Second Reading Speech

Northern Territory Second Reading Speeches

DARWIN PORT AUTHORITY AMENDMENT BILL 1998

(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)

Bill presented and read first time.

Mr COULTER (Territory Ports): Madam Speaker, I move that the bill be now read a second time.

At present, the Darwin Port Authority is managed by the Chief Executive Officer, in a similar way to a government department. It also has a port advisory council, with members form the private and public sectors. The authority does not have a commercial charter in its legislation, even though it is a trading organisation - ie, it sells and buys services to and from the private sector. In addition, its charges are incorporated in regulation - ie, they are incorporated in law.

There are a number of developments and issues that have a bearing on the nature of the port organisation and the way it operates. Madam Speaker and honourable members will remember the launch of the Darwin Hub Strategy 18 months ago, and the subsequent action plan. Implementation of that strategy means the Port of Darwin will be competing increasingly with other reports for a share of the Australian trade. The impending move to East Arm, the arrival of the railway and the trade opportunities which these and other developments will bring all indicate that the port needs a more robust, commercial decision-making framework. This necessarily involves a commercial charter and the influence of private sector input, through a board of directors, for business directions and decision-making framework. This necessarily involves a commercial charter and the influence of private sector input, through a board of directors, for business directions and decision-making. The commercial charter contained in the bill is similar to that of the Power and Water Authority.

To reinforce the greater commercial focus of the port organisation, its name will change from an 'authority', with its public service overtones, to the Darwin Port Corporation. This will be a visible sign of a greater business focus. There are also housekeeping issues address in the amendment bill.

As a government business division, and in keeping with the national competition policy, the Port Authority is already treated as a commercialised entity, including filing sales tax and income tax returns so taxation equivalents are paid A commercial Charter in this legislation is consistent with this.

The reality of the commercial operation is already recognised by the government with community service obligations for the mooring basins, Stokes Hill tourism precinct and the investment in East Arm facilities. This reality should be reflected in the legislation's commercial charter in order to formally provide for the government, to ensure that economic development objectives, which are not commercially viable, can still be met. In addition, it is inappropriate for a trading organisation to have its charges incorporated in regulation. The charge by law-making powers will be removed.

Madam Speaker, in summary, the bill contains changes to the Darwin Port Authority Act, provides a commercial charter, while providing for full government economic development objectives to be met, a board of directors to inject private sector expertise into the port business and the change of name to the Darwin Port Corporation. I commend the bill to honourable members.

Debate adjourned.

[Index] [Search] [Bill] [Help]