Home›Questions on Notice›QoN 203

❓ Mr. Johnston questions the Minister for Energy's claim that Verve Energy was insolvent in 2008, citing the company's annual report indicating a healthy financial position. The Minister clarifies his statement referred to the unsustainable vesting contract between Verve and Synergy.

AnsweredQoN 203Legislative Assembly

Asked

9 May 2013

Member

Mr W.J. Johnston

Portfolio

Energy

QuestionView source ↗

I refer to the Minister's comments in the House on 17 April 2013 that “when we [the Barnett Government] came into power in 2008-09, Verve was insolvent”, and I ask: (a) who informed the Minister that Verve was insolvent in September 2008, when the Barnett Liberal National Government entered office; (b) if no one informed the Minister of this, how did he come to this conclusion; (c) has the Minister read the 2007-08 Verve Energy Annual Report; (d) is the Minister aware this report was tabled in the Legislative Assembly on 6 November 2008; (e) is the Minister aware that on page 3 of this report it states: "Verve Energy is a State asset with an equity level of $438 million"; (f) is the Minister aware that on page 4 of this report it further states: "our [Verve Energy's] net assets are $438.1 million"; (g) is the Minister aware that on page 7 of this report there is a table that includes the following information: “Net assets ($m): 438.1”; (h) is the Minister aware that on page 13 of the financial review in this report there is a table includes the following information: “Closing balance at 30 June 2008: 438,075”; (i) is the Minister aware that on page 14 of the financial review in this report there is a table includes the following information: “Total equity: 438,075”; (j) is the Minister aware that on page 47 of this report it states, over the signature of the Chairman of Verve Energy: “there are reasonable grounds to believe that the Corporation will be able to pay its debts as and when they become due and payable”; (k) is the Minister aware that on page 48 of this report it states, over the signature of the Auditor General: “In my opinion, the financial report of the Electricity Generation Corporation is in accordance with schedule 4 of the Electricity Corporations Act 2005, including: “(a) giving a true and fair view of the Corporation’s financial position as at 30 June 2008 and of its performance for the year ended on that date"; (l) if the Minister is aware of these matters, does he still maintain that “Verve was insolvent”; and (m) if he does not still maintain this view, when will he be correcting the record of the Parliament?

AnswerView source ↗

Answered

8 August 2013

Responded by

Minister for Energy

Response time

91 days

(a) Verve Energy did not inform the Minister for Energy that it was insolvent.
(b)- (m) My comments referred to the situation facing Verve as a result of the vesting contract between Verve and Synergy. This contract was unsustainable from Verve's perspective and as a result was changed by the Liberal National Government.

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