Senator O'BRIEN (3:06 PM) —I move:

That the Senate take note of the answer given by the Minister representing the Minister for Regional Services, Territories and Local Government (Senator Ian Macdonald) to a question without notice asked by Senator O'Brien today, relating to the Civil Aviation Safety Authority board.

At the present time, the Minister for Transport and Regional Services, the Deputy Prime Minister, has on his desk a number of key reports on land transport reform which he is yet to act upon: he has a report from the shipping industry task force, which he has had since April and he has failed to act upon it; he has a report from the head of his depart ment, Dr Hawke, on the structure of air transport administration and he is yet to act upon that. In that respect, he has had that report since around 22 December last year. One could be forgiven for thinking he was working only half-days. Now he has on his desk one unholy mess in the Civil Aviation Safety Authority, and he has known about the problem in this area for some time.

He has watched as his officials have slowly but surely laid out the detail of what was an entirely unsatisfactory process in the recruitment of a number of senior staff to the authority. I say `a number' because, while attention so far has been to the appointment of Mr Foley to the safety compliance position, I am informed there were problems with at least one other appointment made last year. He could have acted swiftly to deal with the problems surrounding Mr Foley's appointment. His inaction, however, means that he as minister is now part of the problem. He is charged with the responsibility for overseeing the administration of air safety in Australia, but he has obviously failed to accept that responsibility.

Mr Laurie Foley applied for the position of regional manager south-east region late in 1995. There were six candidates short-listed for interview for that job, and Mr Foley was one of them. An interview panel was established and all candidates for that job were interviewed, and Mr Foley was one of them. Mr Foley was, I must say, not the worst candidate, but it also has to be said that he was not found to be in the top three of that final six list. The successful candidate was a Mr Barry Diamond, who was appointed to the position of Director of Aviation Safety on 20 December 1995. Mr Diamond's qualifications at that time were that he was a senior specialist flying operations inspector grade 2. There was no surprise in the authority as to the appointment. There was no surprise to the aviation industry generally with that appointment or that Mr Foley did not get that job.

It did, however, come as a surprise to the industry and to the authority when Mr Foley was later appointed to the CASA board. A possible explanation is in the relationship between Mr Foley and the former minister, Mr Sharp. I notice that Mr Sharp was in the building again yesterday. Both Mr Sharp and his ghost continue to haunt this government and this minister. Mr Foley has had many dealings with the former transport minister, Mr Sharp. I understand they had quite a close relationship. We now have considerable detail on the process followed in the appointment of Mr Foley to the very senior position which he now holds.

We now know that Mr Foley applied for and was interviewed for a regional management position. He was not considered to be in the top three candidates for that job. He then leapt from a failed candidate for a regional manager's position to a board member and from there to a position of Assistant Director, Aviation Safety Compliance—a position just below the director and significantly above the position for which Mr Foley applied and, following a proper selection process, failed to make the top three in a short list of six candidates.

Given this information, on top of what is already on the record, Mr Anderson now has no choice but to take control of the inquiry process. This is not just a CASA internal employment matter, as he claims. It goes to the question of corporate governance and the CASA board, and specifically to the role played in Mr Foley's appointment by past and present board members, by very expensive consultants and by senior management. I believe it is incumbent upon this minister to take the matter out of the hands of the board and to at least refer this matter to the ANAO at once.

Senator Lightfoot —I wish to take note of the question and answer with respect to Australia's national debt.

The ACTING DEPUTY PRESIDENT (Senator Hogg) —Senator Lightfoot, the question before the chair is that moved by Senator O'Brien. The question before the chair has not been put. Are you speaking on the question before the chair?

Senator Lightfoot —It was a related question. I thought perhaps with certain goodwill from the other side I could speak on that, Mr Acting Deputy President.

The ACTING DEPUTY PRESIDENT —Senator Lightfoot, there is a question before the chair moved by Senator O'Brien—that is, to take note of the answers given by Senator Macdonald to questions from Senator O'Brien today. That question has not been seen through the processes of this chamber yet. If there is another motion you want to move, then fine, you can do so at a later date. But there is a question before the chair at this stage which is yet to be determined. Are you speaking to that?

Senator Lightfoot —It is an irrelevant question from this side of the house because it is—

The ACTING DEPUTY PRESIDENT —Senator Lightfoot, I suggest you resume your seat. I call Senator Mackay.