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Tuesday, 14 May 2002
Page: 2045


Mr Murphy asked the Minister for Employment and Workplace Relations, upon notice, on 12 February 2002:

(1) Did he issue a media release dated 20 September 2001, saying that over 90 per cent of workers who lose their entitlements when their companies become insolvent will receive 100 per cent of their entitlements under the new General Employee Entitlements and Redundancy Scheme (GEERS).

(2) Does GEERS enable the Government to pay advances to terminated employees and later recover those funds in the event of a distribution of assets by the liquidator of the insolvent employer; if not, how does GEERS enable the Government to so recover such funds.

(3) Has his attention been drawn to (a) the insolvency of Traveland Pty Limited on 26 November 2001 and now under administration, (b) the subsequent termination of 550 employees of Traveland on 4 December 2001 and (c) the fact that those 550 former employees had worked the whole of November 2001 without being paid their monthly wages and (d) the fact that, since 4 December 2001, those 550 former employees have received no further payments.

(4) Were the 550 former Traveland employees excluded from the Special Employee Entitlements Scheme for Ansett Group Employees as a result of Traveland's primary assets, including its employee contracts, being sold by the Administrator of the Ansett Group, which included Traveland Pty Limited, on 23 September 2001 to Internova Travel Pty Limited, notwithstanding widespread speculation at the time that Internova Travel did not have sufficient capital to operate a national travel agency network.


Mr Abbott (Minister for Employment and Workplace Relations and Minister Assisting the Prime Minister for the Public Service) —The answer to the honourable member's question is as follows:

(1) Yes.

(2) Yes.

(3) (a) Yes. (b) I am advised that approximately 540 employees were terminated from Internova Travel Pty Ltd (trading as Traveland) between 29 November 2001 and 4 December 2001. (c) and (d) The administrator for Internova Travel has advised my Department that some employees have unpaid wages, however, the extent is unconfirmed.

(4) The former employees of Traveland were made redundant as a result of the insolvency of Internova Travel Pty Ltd. Internova Travel Pty Ltd is not an Ansett group company and consequently the former employees are not eligible for assistance under the Special Employee Entitlements Scheme for Ansett group employees (SEESA).