TasFarmers say new reforms to improve efficiency and end secrecy

Tasmania's peak body for primary producers, TasFarmers, applauds the government’s announcement today to implement meaningful reforms for the state’s government business enterprises (GBEs) and state-owned companies.

TasFarmers President Ian Sauer said the agriculture sector is uniquely impacted by government organisations, as almost all directly affect the daily operations of primary producers.

"Nearly all government businesses and state-owned companies intersect with agriculture and influence primary producers, so it's been clear to us that reform is necessary, and we’ve been advocating for it for some time," Mr Sauer said.

"This reform is a significant part of our election package, developed with input from our members earlier in 2024, so it will be gratifying for them to see the government taking action today.

"Our primary concern is that these organisations' charters and operational practices are currently focused solely on generating financial returns for the state," Mr Suaer said.

Mr Sauer added that government organisations should have a broader focus on benefiting all Tasmanians—growing trade, creating business opportunities, and enhancing social outcomes.

"If we want to strengthen the state’s economy and increase the farm-gate value of agriculture to $10 billion by 2050, we need to measure performance using non-financial metrics as well as profit. Growing the entire economy is the goal."

TasFarmers strongly supports the proposed changes, requiring each organisation to meet multiple key performance indicators (KPIs) and enhance oversight and contemporary governance.

"We especially applaud the introduction of legislated continuous disclosure requirements for these businesses, obliging them to provide real-time updates on all significant business changes, just as a publicly listed company would," Mr Sauer said.

"This requirement will help prevent incidents like the recent 'Spirit saga', reduce bureaucratic secrecy and 1950’s corporate culture which is not expected by the community anymore.

"For too long, the culture of state-owned businesses has been ‘out of step’ with contemporary business principles and public expectations. This has led to inefficiency, a negative culture, and reduced benefits for Tasmanians. Reform in this area is a positive step and if the GBES don’t like it, they should get out of the way.

"We also commend the proposed changes to board composition and governance. Mandating a minimum number of Tasmanians for board positions will help ensure the focus remains on delivering the right outcomes for all Tasmanians," Mr Sauer said.

TasFarmers believes a more rigorous approach to setting performance-based expectations, monitoring outcomes, and addressing underperformance is urgently needed to end self-interest.

TasFarmers welcomes efforts to ensure that the current portfolio of businesses is structured efficiently and aligned with the state’s future interests.

The draft report can be found here: Government Business - Governance Reform Draft Plan