Senator COOK —My question is addressed to the Minister for Resources and Energy. Minister, can you confirm that QCMM (ESP) Pty Ltd was established as nothing more than a tax lurk to enable QCMM Pty Ltd and its fully owned subsidiary, Advance Queensland Resources and Mining Pty Ltd, to claim hundreds of thousands of dollars in tax deductions through the purchase of UNC employer class shares in QCMM (ESP) Pty Ltd? Minister, how is that you are able to qualify for an employee share plan offered by QCMM (ESP) Pty Ltd when you are not an employee but a full-time senator? How is it that your 44 shares in QCMM (ESP) Pty Ltd issued to you for 1c each in what you term a superannuation type company became worth $56,300 in the space of a few years?

Senator PARER (Resources and Energy) —I have already answered the question here a number of times. In fact, I made it very clear. This ESP is the employees' share plan. It was available to certain directors and shareholders. I have said that right from the word go.

Opposition senators interjecting—

Senator PARER —It is directors and employees. And they were ones selected, I might tell you, by the three major shareholders, the three owners of the operation—

Senator Conroy —Employees?

The PRESIDENT —Order! Senators on my left will cease interjecting.

Senator PARER (Resources and Energy) —Let me say that this ESP was established on professional advice as an employee sponsored investment plan. The share issue did not really matter. Those were the people who qualified, hence they had to take shares. It was actually put out as an alternative to superannuation, and a holding is akin to a preserved benefit. As I said in here yesterday, certainly when the company makes those contributions it gets a tax deduction. The way it was set up was some formula—bear in mind I was not the chief executive; I was the chairman—based on profitability. I said this again yesterday—

Opposition senators interjecting—

The PRESIDENT —Senator Parer, would you resume your seat? There is far too much noise on my left. I require senators to abide by the standing orders.

Senator PARER —As I said yesterday, if you are prepared to listen, because of the way the company itself was set up it pays tax on any investments on which it gets a return. When the amount is withdrawn on retirement as a retirement benefit, full taxation is paid. Let me also say, because here you are talking about scams, Senator Cook, the professional advice received at the time was that these types of retirement benefit funds were approved by the taxation commissioner.

Senator COOK —Madam President, I ask a supplementary question. Minister, I note that you said that you were not the executive, but the chairman. I understand the buck stops with the chairman. I refer you to your statement in regards to QCMM (ESP) Pty Ltd that contributions made to that ceased in 1995. Minister, isn't the reason they ceased due to the fact that, in 1995, Treasurer Ralph Willis outlawed such arrangements because they allowed `unlimited tax deferral opportunities for higher income earners'—such as yourself? Minister, rather than being a tax lurk, isn't it true that QCMM (ESP) Pty Ltd was nothing more than a tax rort? Doesn't this explain your failure to declare your 44 1c shares held by QCMM (ESP) Pty Ltd that are now worth $56,300?

Senator PARER (Resources and Energy) —Senator Cook, the answer to your question is no. I made this point very clear from the beginning. My reading of this was that it was a retirement type benefit. There was no deliberate attempt to do anything in that way. In regard to the scheme itself, as to the reason it ceased, Senator, I am not aware. I do not recall it. All I know is that it was decided not to continue with it. But the professional advice received at the time had the blessing of the taxation commissioner.