Hansard debates

                   STATE TRUSTEES (STATE OWNED COMPANY) BILL
                                 Second reading

  Mr STOCKDALE (Treasurer) -- I move:
  That this bill be now read a second time.
The  State  Trustees  (State  Owned  Company)   Bill  provides  for  significant
improvements to be achieved in the provision of public trustee  services  to the
people  of  Victoria.  It  provides  for  State Trustees to be established as  a
company which will be wholly owned by  the  state.  The  proposed company, State
Trustees  Ltd  (STL), will be subject to the Corporations Law, the  State  Owned
Enterprises Act and the Trustee Companies Act.

The new structure  will  free  State  Trustees  from  many  of the public sector
restrictions to which it has been subject to date and will enable it to continue
the process of reform which it has successfully undertaken in  recent  years. It
will  also  put  State  Trustees  on  a  more  equal footing with other  trustee
companies.
The bill preserves the existing rights of clients of  State  Trustees  and makes
provision  for community service obligations  of the type  now provided by State
Trustees to continue to be provided under contract to  the government. Initially
this contract will be  with State Trustees Ltd with flexibility for contracts to
be awarded to other parties in the future.

In respect to  the  employees  of  the  corporation,  it  is proposed that State
Trustees be declared a designated body for the  purposes of  section 81A  of the
Public  Sector  Management  Act  and that the procedures set out in that section
will apply. Part 1 of  this  bill  sets  out  the  preliminaries. The Australian
company number for STL is not yet available  pending approval  of the  name from
the commonwealth.
Part 2 of the bill retains  certain provisions of the State Trust Corporation of
Victoria  Act 1987  which  ensures  that  services  currently  provided  by  the
corporation  can  continue  to  be supplied  by  STL.  Part 3  contains  general
provisions including the provision of a limited government guarantee for STL and
the  preservation  of  the  rights  of  STCV clients existing  at  the  time  of
commencement of the legislation. Part 5 repeals the STCV Act. Part 6 amends  the
Guardianship and Administration Board Act  1986 by inserting in that Act certain
provisions previously contained in the STCV Act.

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Part  7  amends  the Administration and Probate Act by  inserting  in  that  Act
certain  provisions previously contained  in  the STCV Act.  Part 8 provides for
consequential amendments to other Acts.
I  wish to make a statement  under section 85(5) of the Constitution Act 1975 of
the  reasons  for  altering  or  varying  that section by the  bill.  Clause  40
re-enacts an existing  provision of the State  Trustees Corporation of  Victoria
Act  which  amends the Administration and Probate Act 1958 by  inserting  a  new
section  30D in that act with the intention  to  alter or vary section 85 of the
Constitution  Act  to  the  extent  necessary  to  prevent  the  Supreme   Court
entertaining  claims  where State  Trustees  has  distributed  the  assets  of a
deceased person after a period of three months of serving a notice of refusal to
recognise a claim where no proceedings to enforce the claim have been instituted
within that period.

The reason for limiting the jurisdiction  of  the  Supreme  Court  is  to remove
uncertainty  and  facilitate prompt distribution of  estates  by  ensuring  that
subsequent claims are not recognised.
I commend the bill to the house.
Debate adjourned on motion of Ms MARPLE (Altona).
Debate adjourned until Thursday, 19 May.