Mr Martin Ferguson asked the Minister for Workplace Relations and Small Business, on notice, on 25 May 1998:

(1) What sum has his Department spent on legal and consultancy fees for waterfront related matters since assuming responsibility for waterfront reform.

(2) With respect to each instance of expenditure referred to in part (1), (a) to whom was the sum paid, (b) for what services was it paid, (c) how were the lawyers or consultants chosen, (d) was a public tendering process involved, (e) on what basis was the sum paid to each person or company involved and (f) were departmental officers seconded to help the lawyers or consultants; if so, (i) what did the secondment cost, (ii) what are the officers' names, (iii) what time did they spend on the work away from their normal duties and (iv) when and where did they perform the work.

Mr Reith (Workplace Relations and Small Business) —The answer to the honourable member's question is as follows:

(1) Since the transfer of maritime transport responsibilities to the Workplace Relations and Small Business portfolio on 9 October 1997, the sum of $1,435,693.33 has been spent on legal and consultancy fees relating to waterfront reform.

(2) (a) Legal and consultancy costs have been incurred as follows:

(Note: These figures represent the amounts spent by the Workplace Relations and Small Business portfolio. In some cases the figure does not represent the total cost of the consultancy, as payments were made by the Transport and Regional Development portfolio before the maritime transport function was transferred)

(b) The legal costs incurred cover legal advice and representation, including professional advice, counsel fees and other costs incurred in connection with the provision of the advice and representation (eg, travel, court fees, agents' fees, courier and facsimile costs). The consultancy costs cover fees for provision of research, advice and development of options and strategies relating to waterfront reform, plus disbursements.

(c) I am advised that ACIL Economics & Policy Pty Ltd was engaged by the Department of Transport and Regional Development at the request of Minister Sharp on the basis that there was a need to further develop or enhance the tasks previously carried out by ACIL and which required special knowledge and familiarity with the previous task.

I am also advised that Dr Stephen Webster was also engaged by the Department of Transport and Regional Development at the request of Minister Sharp, and that Dr John Davies, Mr David Webb, BGC Media, Minter Ellison, Corrs Chambers Westgarth and the National Institute of Labour Studies were each nominated by Dr Webster and referred to Minister Sharp's office for approval. (Minter Ellison was also engaged separately by the Department of Workplace Relations and Small Business to provide advice on some issues related to waterfront/maritime reform. In that case, the firm was chosen on the basis of its expertise and availability. The cost of that advice ($12,483.88) is included in the figure of $122,769.61 mentioned in paragraph 2(a) above).

In the case of the work performed by Dunhill Madden Butler, I decided that in addition to the services provided by the Australian Government Solicitor (AGS), it was necessary to retain the services of a private law firm to provide advice, and if necessary, representation for the Commonwealth in a range of matters connected with waterfront reform. I asked my Department to compile a list of firms with acknowledged expertise in the areas of law relevant to waterfront reform and selected Dunhill Madden Butler from that list. Consistent with Government policy in connection with the progressive untying of Commonwealth litigation from AGS, my selection of Dunhill Madden Butler to represent the Commonwealth in litigation was referred to the Attorney-General for approval.

(d) No public tendering process was involved.

(e) The basis of payments to AGS, private law firms and counsel engaged by my Department was that fees would be paid for professional services at agreed hourly or daily rates (which vary according to whether particular work has been performed by counsel, partner, senior or junior solicitor) and for costs incurred in connection with the provision of those services (such as travel, court fees, agents' fees, courier and facsimile costs).

Fees and disbursements were paid to consultants on the basis of contracts between the consultant and the Commonwealth.

(f) Departmental officers have not been seconded to help the lawyers or consultants referred to above. However, in the course of their normal duties, Departmental officers have undertaken related tasks such as the preparation of requests for advice, compilation of background material for purposes of obtaining advice and preparing submissions and documents for litigation and provision of instructions in connection with legal and consultancy services.