Senator LUNDY (2:37 PM) —My question is to Senator Ellison, Minister for Human Services. Does the minister recall misleading Senate estimates hearings on 24 May 2007, when he clearly stated he was not a shareholder minister for Health Services Australia? Wasn’t the minister forced to correct the record after the hearing had closed, admitting that he has been a shareholder in HSA since early 2005? Wasn’t this denial in the context of a discussion with the managing director of HSA over the granting of $3.75 million worth in contracts to a former colleague of his, without any tender process? Wasn’t the managing director also forced to correct the record after the hearing over claims he made about granting these contracts? Given the wrong and misleading evidence presented to the hearing, which acted to deflect further questioning, will the minister now commit to appearing before a reconvened estimates hearing this fortnight to allow the issue to be properly pursued?

Senator ELLISON (Minister for Human Services) —The answer I gave in Senate estimates hearings was on the advice that had been given to me that day in relation to my status as a shareholder and that is the reason for my answer. I gave it on the advice that I had been given. It was then subsequently advised to me that the position was different and, in accordance with longstanding Senate practice, I corrected the record as soon as possible. There is nothing sinister or conspiratorial in that, as much as Senator Lundy may like to think there is. I indicated to the estimates committee that I would look into the matter concerning Health Services Australia. I have asked the Secretary of the Department of Human Services to look into the issue that was raised, and the department is carrying out an appropriate assessment. The secretary will report back to me, and I will advise the Senate committee when that information is to hand.

Senator LUNDY —Mr President, I ask a supplementary question. I note that the minister did not commit to appearing before a reconvened estimates hearing. How can the minister claim that taxpayers do not have the right to know why $3.75 million worth in contracts was awarded to a friend of the managing director of HSA? Can the minister confirm that this $3.75 million worth in contracts was awarded after the managing director privately alerted only his former colleague to the opportunity? Wasn’t the managing director then involved in the decision to not allow anyone else a chance to lodge a bid for the work? Does the minister support the managing director’s actions and, if not, what action will he now take?

Senator ELLISON (Minister for Human Services) —I made it perfectly clear. I have the secretary of the department carrying out an assessment of the issue. I think that is an appropriate way to go. I will await the report from the secretary and, when I have that to hand, I will consider it. Also, I undertook to advise the Senate estimates committee of the outcome of that, and I will do so. There is no need to reconvene any committee. An assessment of the situation is being carried out by the secretary. And, as I recall the advice of the CEO of HSA at the time, he said that he had advised the board. He believed that he had taken all proper actions in this matter and that HSA was not subject to Commonwealth procurement guidelines. But I am having this matter looked at by the secretary of the department. That is an appropriate course of action, and I will await the report.