3
Our performance
Review of the Basslink inter-regional revenue auctions
As part of the arrangements for entering the National Electricity Market, the Government agreed that Hydro Tasmania would make southward inter-regional revenues — the revenue stream arising from Victoria to Tasmania flows on Basslink — available for sale. Any unsold units would be offered at semi-annual auctions. We undertook a review of the auction process and, as there was little interest in the auctions, proposed a number of alternative mechanisms. The Government agreed to the discontinuation of the auctions and the introduction of replacement mechanisms.
Telecommunications Infrastructure Project
The Government owns the 420-kilometre optic-fibre cable backbone running from George Town to Hobart and across to Port Latta on the North-West Coast. Since the acquisition of the cable, we have managed a project to ensure the network was fit-for-purpose and to attract a suitable telecommunications-carrier partner to commercialise the network. In 2008 the network was declared fit-for-purpose. The Government's strategic partner, Aurora Energy, is pursuing further commercial opportunities.
Next year…
The final recommendations of the Governance review report will be implemented. This will involve adopting a more transparent process for appointing board members to Government businesses and establishing information seminars for new board members.
We will continue to monitor and assess contemporary better-practice approaches to corporate governance that could be adopted to further strengthen and enhance the governance frameworks of Government businesses.
We will develop guiding principles for new investment proposals by Government Business Enterprises and State-owned Companies.
The Government Business Enterprises Act 1995 will be amended to implement revised Guarantee Fee methodology.
We will commence reporting on new Government Businesses from the irrigation and water and sewerage reforms.
We will develop a checklist and guidelines for establishing new State-owned Companies.
We will continue to build relationships with Government businesses to ensure we are positioned to provide sound policy advice to Ministers.
