TasFarmers applauds GBE changes

UPDATE: Tasmania's peak body for primary producers, TasFarmers, has applauded the government’s announcement to implement meaningful reforms for the state’s government business enterprises (GBEs) and state-owned companies.

TasFarmers President Ian Sauer said the agriculture sector is uniquely impacted by government organisations, as almost all directly affect the daily operations of primary producers.

"Nearly all government businesses and state-owned companies intersect with agriculture and influence primary producers, so it's been clear to us that reform is necessary, and we’ve been advocating for it for some time," Mr Sauer said.

"This reform is a significant part of our election package, developed with input from our members earlier in 2024, so it will be gratifying for them to see the government taking action today.

"Our primary concern is that these organisations' charters and operational practices are currently focused solely on generating financial returns for the state," Mr Suaer said.

TasFarmers strongly supports the proposed changes, which will require each organisation to meet multiple key performance indicators (KPIs) and enhance oversight and contemporary governance.

"We especially applaud the introduction of legislated continuous disclosure requirements for these businesses, obliging them to provide real-time updates on all significant business changes, just as a publicly listed company would," Mr Sauer said.

"This requirement will help prevent incidents like the recent 'Spirit saga', reduce bureaucratic secrecy and 1950’s corporate culture which is not excepted by the community anymore.

"We also commend the proposed changes to board composition and governance. Mandating a minimum number of Tasmanians for board positions, which will help ensure the focus remains on delivering the right outcomes for all Tasmanians," Mr Sauer said.

EARLIER: THE Rockliff Government has floated both merger and privatisation options for the TT-Line and TasPorts.

The announcement is in response to the fiasco which has seen the two new Spirit of Tasmania vessels delayed until 2027 due to a lacking of port infrastructure.

In the headline announcement today, Premier Jeremy Rockliff announced that the Government will consider the proposed merger of TasPorts, TT-Line and TasRail into a unified government-owned entity. 

However, at the same time the Premier also announced that the Government would review their entire government business portfolio to "assess whether public ownership of each business remains appropriate."

The Premier said that the possible merger of TasPorts, TT-Line and TasRail into a new entity would unite the businesses to form an integrated transport and logistics business, bringing together Tasmania’s key transport and logistics assets under a single operational framework. This will ensure a more integrated, cost-effective, and responsive system for the people of Tasmania, he said.

“We have seen growing concerns around the performance, accountability, and coordination of some of our government businesses,” Premier Rockliff said. 

“Recent issues have highlighted the need for a more strategic, long-term approach to managing Tasmania’s critical infrastructure.

“We also require a greater customer focus and better service delivery.

“That’s why we will consider pursuing this merger—to streamline operations, reduce inefficiencies, and deliver better outcomes for Tasmanian businesses, industries, and everyday Tasmanians."

The merger is one part of a wider plan of proposed governance reforms for GBEs, including:

• Updating the principal objectives of the businesses to put Tasmania’s economic growth first.
• Putting the Tasmanian people at the top of all organisational charts. 
• A minimum of 50 per cent of board members are Tasmanian.
• Legislatively require that the two Shareholding Ministers' roles cannot be undertaken by the same person.
• Mandating board renewal by limiting the number of years directors and chairs can serve.
• Introducing gateway reviews and project assurance processes for large projects.
• Introducing board performance reviews.

The Government Business Governance Reform – Draft Plan can be found here.