Senator Carr asked the Minister representing the Minister for Education, Training and Youth Affairs, upon notice, on 23 November 1999.

(1) What information is collected by the Government on the practices of universities with regard to the commercial consultancy activities undertaken by their staff.

(2) (a) Has the Government undertaken any research or analysis of these activities; and (b) specifically, can information be provided on: (i) the consulting rules or guidelines prevailing in the `Great Eight' universities; (ii) in the case of each of these eight universities, the amount of money recovered in the 1998-99 financial year to cover the costs associated with the use of university facilities and resources by staff engaged in consultancy work; and (iii) the steps taken by the Government to oblige universities to recover these costs and to adjust the entitlements of staff, for example in superannuation, who spend significant amounts of their time while employed by the university working on commercial consultancies under various arrangements.

(3) What steps has the Government taken to investigate the common practice where university staff engaged in commercial consultancy avoid tax by having their consultancy fees paid to their institution, for lodgement in special dedicated accounts for their use in travel, conference attendance and other purposes.

(4) Has the Government sought the advice of the Australian Taxation Office on this matter.

Senator Ellison (Special Minister of State) —The Minister for Education, Training and Youth Affairs has provided the following answer to the honourable senator's question:

(1) None. This is an internal matter for universities.

(2) (a) The Commonwealth has not undertaken research or analysis of university practices with regard to the commercial consultancy activities undertaken by staff.

(b) (i) and (ii) No. See (a) above. (iii) The Commonwealth would expect universities to recover costs, such as those relating to the use of facilities associated with consultancy work. Under the competition principles agreement, staff engaged by universities may undertake private consultancies, subject to university requirements. Universities were required to review their policies in this area to ensure that private consultancy services fully compensate the university for any resources used or risks taken. The entitlements of staff is an institutional matter.

(3) and (4) Senator Carr's question has been drawn to the attention of the Australian Taxation Office for appropriate action.