Senator FAULKNER —My question is directed to Senator Hill representing the Prime Minister. Minister, can you explain on what basis Mr Max Moore-Wilton accepted Philomena Bisshop's resignation? Isn't it the case that she took the initiative in inquiring of DAS whether there had been any cover-up of repayments of travel allowance by government ministers? Isn't it also the case that when she recalled on 26 September the conference that she had with Carolyn Hughes of DAS in early July, she drew the conversation to the attention of her superior officers without any mention being made of resignation at that stage? Why is it that two days later, on 28 September, her failure to pass her conversation with DAS up the line was dealt with as a hanging offence? Do you agree that this is an appropriate sanction for a public servant in her position?

Senator HILL —As I remember the matter, she chose to resign for what she said was basically a failure to meet the responsibilities of her office. As I recall, what she said was that she acknowledged that she, at the relevant time—which was when she believed that she had the earlier discussion—should have brought the substance of these discussions to the attention of her superiors. As I further recall, she very much regretted that she failed to do so, but certainly acknowledged that that was a failure of her responsibilities within her office. That is basically where the matter rests.

Senator FAULKNER —Surely not quite, Minister. Because doesn't the much more serious offence lie in fact with the Department of Administrative Services? Isn't it clear from the documentation that was tabled yesterday by the Prime Minister that DAS knew of the cover-up of the repayment of travel allowance by a government minister, knew that this has been decided by Mr Jull, knew that it has been discussed with the Prime Minister's office and acquiesced in it? What are the implications for DAS of the Philomena Bisshop resignation, the Philomena Bisshop precedent? What are the implications for DAS there?

Senator HILL —I do not think there are any implications that follow from the decision that was made by Philomena Bisshop. That was her decision and her interaction was with the superiors within her department. The extent of DAS's knowledge of these matters is an interesting but different question. Certainly, it would seem that at least some officers in DAS were aware of the way in which it had been decided to deal with the correction to Mr Sharp's statement. That is true, but what flows from that is really not within my province.