Senator SCHACHT (2:07 PM) —My question is to Senator Vanstone, the Minister for Justice and Customs. In seeking to locate the Customs report on National Textiles referred to in yesterday's Financial Review, did the minister order a search of the files in Customs' Sydney office where the report allegedly originated? Is the leaking of information about this report another instance of the ongoing warfare between the Sydney office and the central office in Canberra? Can the minister inform the Senate on how many occasions officers of the Australian Customs Service have visited National Textiles over the past four years to validate the information on which the company based its claims for over $13 million of taxpayer funded assistance?

Senator VANSTONE (Minister for Justice and Customs) —I thank Senator Schacht for the question. I did not need to order any particular inquiry whatsoever. Mr Woodward, who was I think appointed by yourself, the head of the Australian Customs Service, was already investigating the matter on Monday morning with the appearance of the article in the Financial Review. It took some time to investigate that matter because, as you may or may not be aware, Customs always had the implementation responsibility for that policy, but the policy responsibility was with Industry. With the shift of a major part of Customs to the Attorney- General's portfolio following the 1998 election, both the policy and the substantive aspects of that program were shifted to Industry. So, files that may have related to that matter were shifted to Industry. Of course, the personnel follow the policy, and so personnel had shifted out of Customs into Industry.

Having nonetheless conducted an exhaustive search yesterday, the advice that I have is that National Textiles' ICS activity—because, obviously, they would be involved in a range of activity that might include Customs—which was the subject of the report in the Financial Review yesterday has not been audited by Customs. That is the advice that I have. No report on National Textiles of the nature described in the Financial Review of 14 February has in fact been located.

Since the inception of that program in 1991 by the then Labor government, audits have been conducted on a number of companies involved in the ICS in accordance with standard Customs risk management practices. Compliance audits, as you know, are an important element in Customs' procedures. So, contrary to reports in the Financial Review, my advice is that there is no ongoing concern with Customs on aspects of the implementation of the import credit scheme in relation to National Textiles. In fact, as the advice to me reads, there was not in the first instance a concern because they had not been audited. You referred to the report. I conclude my answer by saying that if you know there is a report, why don't you put up or shut up?

Senator SCHACHT —Madam President, I ask a supplementary question. I ask the minister again what steps she has taken to locate any Customs report on National Textiles. In particular we ask: will the minister undertake to find out on how many occasions over the last four years Customs officers have visited National Textiles, and report this information back to the Senate? Obviously, Customs officers will be visiting companies such as National Textiles from time to time to ensure that the appropriate forms are being filled in and the claims made are being validated.

Senator VANSTONE (Minister for Justice and Customs) —I answered your question. I indicated to you that Lionel Woodward, the head of Australian Customs, was already investigating the allegations in the Financial Review yesterday morning before I spoke to him and he had instructed for a thorough search to be done. I explained to you that files had shifted from Customs to DISR, but that Customs had in fact done a search. When Mr Woodward spoke to me, he advised that it would have been the Sydney office where such files would have been held. As for your question as to how many times have Customs officers visited, I left that for two reasons. I did not assume you meant that we would possibly keep a file of what day any Customs visit is made—

Senator Schacht —What?

Senator VANSTONE —If I may finish before you exasperate yourself with disbelief before you have even heard the answer.

The PRESIDENT —Order! The time for answering the question has terminated.

Senator VANSTONE —I will come back to you on that. (Time expired)