Michael McCormack (Riverina, National Party, Parliamentary Secretary to the Minister for Finance) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This bill provides for the transfer of the assets and any outstanding liabilities of the Australian River Co. Limited to the Commonwealth in preparation for its voluntary deregistration under the Corporations Act 2001.

The Australian River Co. Limited was created in 1997 to hold the residual assets and liabilities of the government owned Australian National Line group following its partial sale in 1998. The Australian River Co. Limited has been in the process of winding up since 2002, selling the last of its vessels in 2012.

Today the company exists only to administer legacy liabilities from former employees relating mainly to workers' compensation, dating back to employment arrangements that typically existed decades ago.

The government announced as part of the 2014-15 budget that it would be delivering smaller, more rational government involving the abolition or merger of government bodies where possible to reduce the cost of government administration for taxpayers. The reforms are expected to deliver net savings over the forward estimates period.

As part of the second phase of the smaller government agenda, the government decided that the Australian River Co. Limited would be wound-up by 1 July 2015.

The bill allows for the orderly transfer of assets and liabilities to the Commonwealth, and provides for the Commonwealth to be the company's successor-at-law, prior to bringing to a close the operations of the Australian River Co. Limited. The date on which the transfer to the Commonwealth takes effect will be set by proclamation.

I commend the bill to the House.

Debate adjourned.