ADELAIDE FESTIVAL CENTRE TRUST (FINANCIAL RESTRUCTURE) AMENDMENT BILL

Second Reading

Adjourned debate on second reading.

(Continued from 30 April 2008. Page 2537.)

The Hon. D.W. RIDGWAY (Leader of the Opposition) (16:44): I rise on behalf of the opposition to indicate our support for this bill. I believe Mr Barry Fitzpatrick, the chair of the Adelaide Festival Centre Trust, approached the government about 12 months ago when it became apparent that the ability to maintain the Festival Centre's assets was almost beyond the financial capacity of the trust and that something had to be done. The original building debt has remained on the trust's books since 1971, some 37 years now, and after that I believe a further $10 million was lent in the 1990s. That means the trust now owes approximately $28 million.

The state government has decided to forgive this debt and, although this bill does not actually transfer ownership, it allows for a proclamation to that effect. The ongoing impact of depreciation of the fixed assets on the trust balance sheet has prevented profits. This impacts on the appeal of court to corporations to sponsor the trust and in turn could be detrimental to the arts culture, for which our state is well known.

I remind members that it was a Liberal government led by Steele Hall that came up with the idea to build the Festival Centre in the first place, even though it was completed after he left office. It was our initiative and over the many decades since then the Liberal Party has been committed to supporting the arts in a range of areas, and I know that when last in government our minister (Hon. Diana Laidlaw) was extremely well respected within the arts community. Thankfully, when Mr Fitzpatrick put a proposal to the government it responded positively, and that will enable the transfer of the assets from the trust to the government, should this bill be successful. The actual assets to be transferred are not listed in the bill, but minister Hill, the minister responsible in another place, has detailed all the assets to be transferred in the second reading explanation. It is our understanding that those assets will now show up on the books of Arts SA.

It is my understanding that the assets that will remain with the trust are the assets required for the ongoing operation of the Festival Centre—the catering facilities, lighting, hardware and equipment used to stage performances. I am also advised that the current annual maintenance and operating expenses of assets to be held by the trust are around $3.62 million. As a result of this intended transfer, I understand that approximately $1.1 million of those expenses will become the responsibility of the government, and approximately $2.1 million will be provided by the government to the trust, with the remainder retained by Arts SA for such things as rent, landlord expenses, and so on. The Festival Centre Trust will retain the responsibility for the day-to-day maintenance of the Festival Centre under the memorandum of agreement with Arts SA.

The most important thing about this bill is that the government continues to recognise the financial commitment it is making and that this would be reflected in forward budgets. This is not simply a transfer of capital but a transfer of responsibility and management, which I hope the government will continue to recognise. The opposition through its arts spokesperson in the House of Assembly, Isobel Redmond, raised some questions on the government's policy on forgiving debts of other statutory authorities. In this place I put on the record that I share her interest as to why the Festival Centre has been singled out in this instance. I ask whether the government has any similar intentions for any other such organisations that may have debts, for example, the South Australian Ambulance Service, the CFS or any other bodies that operate in the same way as does the Festival Centre Trust. Does the government have any plans to forgo debts for any other organisations? With those few comments, the opposition supports the bill.

The Hon. G.E. GAGO (Minister for Environment and Conservation, Minister for Mental Health and Substance Abuse, Minister Assisting the Minister for Health) (16:49): To sum up, I thank the honourable member for his support of this bill. The government is committed to the long-term sustainability of the Adelaide Festival Centre, and we know that the Adelaide Festival Centre Trust has been running at a loss for several years. We propose to have another government agency take responsibility for the financial and strategic management of the trust assets, such as land and buildings, and such an arrangement would see a transfer of assets within government, with the trust being able to retain the use of those assets for its purposes.

The government proposes to amend the Adelaide Festival Trust Act 1971 to enable a future transfer of trust assets and liabilities, which would nevertheless remain within government ownership. In relation to the question, I am not aware of any other policy or agency area where the government has any plans to forgo debts. I am happy to ask the question and bring back a response, but to the best of my knowledge I am not aware of any other areas. I look forward to this bill being dealt with expeditiously through committee.

Bill read a second time and taken through its remaining stages.