In a speech for the Clean Energy Finance Corporation (CEFC) Bill 2012 last week, Mr Buchholz brought to parliament’s attention the potential make?up of the CEFC, drawing attention to the potential problems in relation to the contracts of Board directors.
The bill, which was passed on Wednesday in the lower house, establishes the board of the Clean Energy Finance Corporation, giving it a statutory responsibility for decision making and management of the corporation’s investments.
I have concerns that when we are going to the market looking for potential directors or people to head up this CEFC, the income going into that organisation will be over a five?year period with lots of $2 billion per year, Mr Buchholz said.
So you will get $2 billion in the first year and $2 billion in the second, through to the fifth yeara total of $10 billion, he said.
I would be absolutely horrified if we were signing up directors with the intent that they would be contracted for five years on very expensive salary packages when upon taking Government, we will repeal the carbon tax and the CEFC will cease to exist.
Mr Buchholz also said that as a comparison, the remuneration of the Chief Executive Director of the NBN Co at last report received $1.9 million; additionally the remuneration schedule for non key management personnel averages $818,000 per year.
I would encourage the government, when they are going to the market for these players, not to embarrass themselves and the directors by locking them into five?year contracts, Mr Buchholz said.
I do not want to be putting my hand into the coffers of hard?taxpaying men and women of Australia to pay out a director’s fee of potentially $1.9 million per year over five years, he said.
This bill is economically irresponsible and unlikely to achieve its stated aims, he said. Mr Buchholz went on to say that this is something that may have been overlooked in consideration.
Maybe it was overlooked because we were only given two and a half hours consideration at the Economics Committee of which I am a member, when witnesses were called to give evidence.
I just wanted to highlight that there was not enough time to complete the due diligence that this process deserved, Mr Buchholz said.