Australia - Office of Government Owned Corporations (OGOC), Queensland

Introduction

OGOC was established in 2000 to support and advise the shareholding Ministers on the State's ownership and administration of Queensland's 18 government owned corporations (GOCs) in accordance with the Government Owned Corporations Act 1993.  This includes a strategic approach to policy development for GOCs, monitoring GOC performance and governance and ensuring GOCs comply with relevant legislation.

OGOC is a division of the Queensland Treasury Department and is within the administrative responsibility of the Minister for Finance.  The Executive Director of OGOC reports to the Under Treasurer through a Deputy Under Treasurer.

In November 2005, OGOC assumed responsibility for the Infrastructure Modelling Team (IMT), formerly with the Office of Economic and Statistical Research in Queensland Treasury.  IMT serves as a knowledge and modelling resource for the Queensland Government and provides information, analysis and advice in relation to two of the State's key infrastructure industries - electricity and rail.

OGOC's role

OGOC monitors all Queensland GOCs, details of which are set out in the attachment.  The 18 GOCs operate in the energy, port, rail, water resources, gaming and funds management sectors.

OGOC aims to maximise shareholder returns, build shareholder value and ensure appropriate corporate governance in GOCs while being mindful that GOCs operate in open and competitive markets subject to the principles of competitive neutrality.  OGOC's activities, particularly in the transport and electricity sectors, help to ensure competitive cost effective infrastructure and services to support economic development.

OGOC's activities include:

• Overseeing corporate governance arrangements in GOCs;
• Negotiating outcomes of the annual performance contract (statement of corporate intent) as well as the annual five year corporate plan;
• Monitoring the commercial performance of GOCs;
• Conducting reviews of GOCs' strategic direction and outlook for commercial performance;
• Arranging for the appointment of GOC directors, chief executives and senior executives by the Governor in Council;
• Assessing major investment proposals;
• Collecting dividends and tax equivalent payments from the GOC sector on behalf of government;
• Coordinating the State budget process relating to GOCs;
• development, maintenance and application by IMT of a suite of economic and financial models relating to the electricity and rail industries.

Structure

OGOC is headed by an Executive Director who is supported by a Deputy Executive Director.  OGOC consists of four branches, each headed by a Director:

• Energy Branch
• Transport Resources and Corporate Branch
• Policy and Governance Team
• Infrastructure Modelling Team

OGOC employs approximately 30 staff and currently has an annual budget of A$3.5 million.

OGOC Outputs

The following are the OGOC output priorities for 2005-06:

• Monitoring GOC operational and financial performance, with a particular focus on the provision and management of essential infrastructure;
• Strategic assessment of individual GOCs focusing on issues such as financial performance, market environment and strategic direction;
• Working with GOCs to develop statements of corporate intent in accordance with Government shareholding interests;
• Ensuring GOCs have effective risk management, corporate governance and performance monitoring systems in place;
• Assessing GOC investment proposals;
• Assessing, through the models developed by IMT, the impact of State Government policies and external market developments and forecasting associated impacts on the financial position of relevant GOCs.

Portfolio of GOCs

See website for more information: OGOC.