Corporate governance framework
The Governance Framework Guide provides an overview of the current governance framework for Tasmanian Government businesses. The guide highlights key governance requirements for Government businesses and outlines the difference between Government businesses and their private sector counterparts.
- Government Business Enterprises Act 1995
This Act provides for the establishment, commercial operation and accountability of Government Business Enterprises, the relationship between Government Business Enterprises and the Government and the payment of financial returns to the State by Government Business Enterprises.
- Government Business Enterprises Sale Act 2003
This Act authorises, enables and facilitates the sale of assets of the businesses prescribed in the Act, and provides for the repeal of the Portfolio Acts of those Government Business Enterprises and for related purposes.
- Portfolio Acts of Government Business Enterprises
Provides links to the establishing legislation for each Government Business Enterprise.
- Portfolio Acts of State-owned Companies
Provides links to the establishing legislation for each State-owned Company.
- Corporations Act 2001
State-owned Companies are subject to the provisions of the Corporation Act 2001, in-line with their private sector counterparts. This Commonwealth Act makes provision in relation to corporations and financial products and services.
The Corporate Governance Principles outlines the eight principles (developed by the ASX Corporate Governance Council) that underpin best practice corporate governance. The paper provides a general analysis of the principles and discusses how Government businesses could incorporate them into their operations.
The Treasurer's Instructions are issued under section 114 of the Government Business Enterprises Act 1995 and cover the principles, practices and procedures to be observed in the financial management of Government Business Enterprises. Some Treasurer's Instructions are also applicable to State-owned Companies through their Portfolio Acts.
There are a number of guidelines that highlight the processes, practices and governance arrangements that Government businesses should incorporate into their governance framework.
Principles for the Oversight and Governance of Government Businesses
In 2011 a new set of principles for Government businesses were established to ensure the efficient operation of Government businesses, including:
- appropriate financial returns;
- reducing the budget impacts of Community Service Obligations and equity contributions;
- efficient use of scarce capital resources;
- reducing financial risk; and
- minimising price increases.
To achieve this, the following principles for the operation of Government businesses have been adopted:
1. Enhanced strategic control
2. Improved clarity of objectives
3. Improved shareholder return
4. Increased productivity and operational efficiency
5. Increased scrutiny of capital investments
6. Greater accountability
7. Improved transparency