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Estimates - Senate Committees - Reports - Particulars of proposed additional expenditure and particulars of certain proposed additional expenditure for year ending 30 June - 1991 - Committees A, B, C, D and F reports


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-V AUSTRALIA,.,'-'

The Parliament of the Commonwealth of Australia

Senate Estimates Committees A, B, C, D, E and F

Reports to the Senate on Departm ental Additional Estimates 1990-91

Australian G overnm ent Publishing Service Canberra

il

The Parliament of the Commonwealth of Australia

Senate Estimates Committees A, B, C, D, E and F

Reports to the Senate on Departmental Additional Estimates 1990-91

Australian Government Publishing Service Canberra

© Commonwealth of Australia 1991 ISBN 0 644 14917 5

Printed in Australia by P. J. GRILLS, Commonwealth Government Printer, Canberra

C ONTENT S PAC E

1. Resolution of the Senate ....................................................

2. Estimates Committee Groups ............................................

3. Membership of Comm ittees...............................................

4. Estimates Committee A

Report ................................................................................

Reservations ......................................................................

Unanswered Questions ..................................................

Hansard - Index to issues raised in public hearings Minutes of Proceedings Tuesday, 16 April 1991 ............................................

Friday, 19 April 1991 .................................................

Tuesday, 23 April 1991 ............................................

Monday, 6 May 1 991 .................................................

Tuesday, 7 May 1991 (2 m eetings)........................

5. Estimates Committee B

Report ................................................................................

Reservations ......................................................................

Minutes of Proceedings Tuesday, 9 April 1991 ...............................................

Tuesday, 16 April 1991 ............................................

Wednesday, 1 May 1991 .........................................

Tuesday, 7 May 1991 .................................................

Hansard - Index to issues raised in public hearings Unanswered Questions .................................................

6. Estimates Committee C

Report ................................................................................

Hansard - Index to issues raised in public hearings Minutes of Proceedings Tuesday, 16 April 1991 ............................................

Friday, 19 April 1991 .................................................

Tuesday, 7 May 1991 .................................................

Reservations .....................................................................

Erratum ...........................................................................

V

vi

vi

I

10 16 2 1

33 36 39 44

48

51 63

75 76 79 82 83 91

99 105

109 1 1 2 115 1 17

123

7. Estimates Com mittee D

Report .......................................................................................................... 131

Unanswered Questions ........................................................................... 139

Reservations ................................................................................................ 146

Hansard - Index to issues raised in public h e a r in g s ........................ 149

Minutes o f proceedings Thursday, 18 April 1991 (2 m e e tin g s )............................................ 155

Tuesday, 7 May 1 9 9 1 ........................................................................... 165

8, Estimates Com m ittee E

Report .......................................................................................................... 167

Reservations ................................................................................................ 174

Addendum ................................................................................................... 184

Unanswered Questions ........................................................................... 185

Hansard - Index to issues raised in public h e a r in g s........................ 191

Minutes o f Proceedings Monday, 15 April 1991 ...................................................................... 205

Thursday, 18 April 1991 (2 m e e tin g s )............................................ 206

Tuesday, 7 May 1 9 9 1 ........................................................................... 214

Wednesday, 8 May 1991........................................................................ 215

9. Estimates Com m ittee F

Report .......................................................................................................... 217

Reservations ................................................................................................ 230

Questions taken on notice by departmental officers before and during the h earin gs.......................................... 231

Questions agreed to be incorporated in Hansard but not published in Hansard Proof o f Proceedings on April 18, 1991 ........................................................................................ 253

Hansard - Index to issues raised in public h e a r in g s........................ 267

Minutes o f Proceedings Thursday, 18 April 1991 (2 m e e tin g s)............................................ 287

Tuesday, 7 May 1991 ........................................................................... 295

Addendum .................................................................................................. 297

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1. RESO LUTIO N OF T H E SEN A TE A G R E E D TO ON 14 M A R C I1 1991

R E FE R E N C E O F PARTICULARS O F PRO PO SED A D D ITIO N A L E X P E N D IT U R E 1990-91: The Minister for Shipping and Aviation Support (Senator Collins), by leave, moved-(1) That the Particulars of proposed additional expenditure for the service of

the year ending on 30 June 1991 in relation to the Parliamentary Departments, the Particulars of proposed additional expenditure for the service of the year ending on 30 June 1991 and the Particulars of certain proposed additional expenditure in respect of the year ending on 30 June

1991 be referred to estimates committees for examination and report.

(2) That votes contained in the Schedules to the Appropriation Act (No. 3) 1990-91 be referred to estimates committees for examination and report together with the Additional Estimates for 1990-91.

(3) That the committees consider proposed additional expenditure and votes in the estimates committee groups agreed to by the resolutions of the Senate of 9 and 10 May, 11 September 1990 and 13 February 1991.

(4) That the committees report to the Senate on or before Wednesday, 8 May 1991.

(5) That, subject to the sittings of the Senate, the committees meet to hear evidence in accordance with the following schedule:

(a) Committees A, B and C - Tuesday, 16 April; (b) Committees D, E and F - Thursday, 18 April; (c) as required, on Tuesday, 23 April and Wednesday, 24 April; and (d) if required, on such other days as may be determined by the

committees.

Question put and passed.

v i

2. ESTIMATES COMMITTEE G R O U PS

Estimates Committee A Parliament Industry, Technology and Commerce Prime Minister and Cabinet

Treasury Finance

Estimates Committee D Administrative Services Employment, Education and Training

Immigration, Local Government and Ethnic Affairs

Estimates Committee B Foreign Affairs and Trade Defence

Estimates Committee C Social Security Arts, Sport the Environment Tourism and Territories

Estimates Committee E Attorney-General Community Services and Health ' Veterans' Affairs

Estimates Committee F Industrial Relations Primary Industries and Energy Transport and Communications

3. M EM BERSHIP OF COMMITTEES

Estimates Committee A

Senator Bishop Senator Childs (Chairman) Senator Coates1 Senator Faulkner2 Senator O'Chee Senator Short Senator Walsh

1 Discharged 23 April 1991 2 Appointed 23 April 1991

v i i

Senator Burns (Chairman) Senator Devereux Senator Hill* Senator MacGibbon

Senator Newman Senator Schacht

* Senator Durack replaced Senator Hill for the consideration of the estimates of the Department of Defence

Estimates Committee B

Estimates Committee C

Senator Alston* Senator Aulich Senator Crowley (Chairman) Senator Patterson*

Senator Reynolds Senator Walters*

* Senators Baume, Campbell and Crichton-Browne replaced Senators Alston. Patterson and Walters for the consideration of the estimates of the Department of the Arts, Sport, the Environment, Tourism and Territories

Estimates Committee D

Senator Kemp Senator Loosley Senator Maguire Senator Parer*

Senator Teague Senator Zakharov (Chairman)

* Senator Tierney replaced Senator Parer for the consideration of the estimates of the Department of Employment, Education and Training

v i i i

Senator Cooney (Chairman) Senator Campbell* Senator Giles Senator Macdonald* Senator Vanstone* + Senator West

* Senators Herron, Walters and Patterson replaced Senators Macdonald. Campbell and Vanstone for the consideration of the estimates for the Department of Community Services and Health

+ Senator Newman replaced Senator Vanstone for the consideration of the estimates for the Department of Veterans' Affairs

Estimates Committee E

Estimates Committee F

Senator Beahan (Chairman) Senator Chapman Senator Crane Senator McKiernan Senator Panizza* Senator Sherry

* Senator Olsen replaced Senator Panizza for the consideration of the estimates for the Department of Industrial Relations

1

ESTIMATES COMMITTEE A

REPORT TO THE SENATE

May 1991

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3

ESTIMATES COMMITTEE A

REPORT TO THE SENATE

Introduction

1. On 14 March 1991, the Senate referred to the Committee, for examination and report, the Particulars of Proposed Additional Expenditure for the service of the year ending on 30 June 1991 and the Particulars of Certain Proposed Additional Expenditure in respect of the year ending on 30 June 1991, in

relation to the Departments of Industry, Technology and Commerce, Prime Minister and Cabinet (including the Office of the Governor-General), Treasury and Finance; and Particulars of Proposed Additional Expenditure in respect of the year ending on 30 June 1990 in relation to the Parliamentary Departments.

2. The Senate also referred to the Committee certain votes contained in the Schedule to the Appropriation Act (No. 3) 1990-91 for examination and report.

3. The Committee has considered the estimates for the year ending 30 June 1991 together with the Departmental Explanatory Notes, and has received evidence from the President of the Senate (Senator the Hon. Kerry Sibraa), the Minister for Industry, Technology and Commerce (Senator the Hon. John Button) and the Parliamentary Secretary to the Treasurer (Senator the Hon. Bob McMullan),

and officers of the departments and authorities concerned. The Committee met on 16,19 and 23 April and 6 May 1991. Copies of the Minutes of Proceedings and the Hansard reports of the evidence taken by the Committee are tabled for the information of the Senate in connection with Appropriation Bill (No. 4)

1990-91, Appropriation Bill (No. 5) 1990-91 and Appropriation (Parliamentary Departments) Bill (No. 2) 1990-91. Further written explanations furnished by departments will be presented separately.

4. The Committee draws the attention of the Senate to the following matters which arose during consideration of the Estimates.

PARLIAMENTARY DEPARTMENTS

D epartm ent o f the S en a te

Funding for the Presidents staff

5. The Committee was advised that the Minister for Finance had not accepted a decision of the Appropriations and Staffing Committee that the amount to be included in the Appropriation (Parliamentary Departments) Bill (No. 2) be $289,000, deciding instead that the amount should be $239,000. The

difference related to costs associated with an additional staff member in the

Estimates Committee A presents its report to the Senate.

4

President's office and salary increases for others of the President's staff. The President told the Committee:

While the amount is not large, there is an issue of principle involved. The Department of Finance is supporting

supplementation for the Department of Administrative Services for similar increases for all ministerial staff but is not prepared to support supplementation for staff in my office and that of the speaker. Our staff have always been regarded as equivalent to ministerial staff and are employed under the same Act.1

The President advised the Committee that he had written to the Minister for Finance in regard to the dispute on 22 February 1991 but had received no reply as at the date of the hearing, 16 April 1991.2

6. This Committee has frequently objected in the past to decisions by the Government which might tend to detract from Parliament's independence from the executive. The Committee notes that a response from the Minister is due, will observe developments with interest and may follow up the matter in the

Budget estimates.

Senate officers

7. The Committee discussed the publication of certain articles by Senate officers and other aspects of the administration of the Department of the Senate. The articles dealt with the operations of the Senate and were published in journals concerned with parliamentary affairs. Senators Coates and Schacht suggested that articles of this type could lead to a perception of partisanship on the part of the authors.3

D epartm ent o f th e Parliamentary Library

Use of cars on issue to SES-equivalent staff

8. The Committee noted that the Parliamentary Librarian had approved the continued use by an SES-equivalent officer of a departmental car during recreation and long service leave forming the initial parts of a long period of leave. Use of an official car, during periods of normal leave as well as duty, is included in the standard remuneration package for SES and equivalent officers. The Librarian informed the Committee that the officer was entitled to

1Hansard,

2Hansard,

3Hansard,

16 April

16 April

16 April

1991, p.

1991, p.

1991, pp

A3.

A 4 .

A20-A30.

5

retain the use of the car if the Librarian so decided.4 He advised the Committee that he had gathered a great deal of information about the arrangements for the use of cars within parliamentary and executive departments.

9. He subsequently supplied information to the Committee on the practices followed in the Departments of Immigration, Local Government and Ethnic Affairs, Veterans' Affairs, Social Security, and Finance as well as the Australian Taxation Office.5 Most of these departments or agencies have clear

provisions permitting the use of an official car during periods of leave longer than the normal annual accrual, subject to approval by top management. The Department of Immigration, Local Government and Ethnic Affairs, in its

guidelines, envisages the possibility of cars being retained during periods of unpaid leave, including arrangements whereby officers might reimburse the Department the cost of leasing and fringe benefits tax to give staff the benefit of Commonwealth rental rates.6

10. The Committee accepts that the Librarian's decision in this case was within his authority. However, there should be an examination of the arrangements which allow senior officers of any department or agency to retain the use of government-owned cars during extended periods of leave.

Various parliamentary departm ents

Security arrangements in Parliament House

11. The Committee took evidence on incidents involving theft. It also heard evidence concerning Parliament House security generally. Senator Bishop expressed the view that present security arrangements were unsatisfactory.

DEPARTMENT OF INDUSTRY, TECHNOLOGY AND COMMERCE

Auditor-Generats criticisms of accounting procedures

12. The Committee discussed criticisms of the Department's accounting procedures contained in the Auditor-General's report no. 22 of 1990-91 (Aggregate and Departmental Financial Statements: 1989-90). The issues raised by the Auditor-General involved breaches of section 83 of the

Constitution and sections 34 and 36 of the Audit Act.7 In commenting on one

4Hansard, 16 April 1991, p. AGO.

Additional Information, Vol. 1, pp. 99-105

Additional Information, Vol. 1, P· 101.

7Auditor-General, Audit Report No. 22/1990-91: Aggregate and Departmental Financial Statements - 1990, AGPS, 1991, pp. 125-27.

6

of the significant breaches, the Deputy Secretary of the Department, Dr J. Bell, told the Committee that it was a 'technicality", "not a deliberate breach of the law" and that 'there are often differences between departments and the Auditor-General".8

13. The Committee cannot accept this line of argument in relation to significant breaches of statutory or constitutional requirements.

Alleged fraud: Export Finance and Insurance Corporation

14. The Committee took evidence on an alleged fraud against the Export Finance Insurance Corporation (EFIC) extending over a period of about three years in the mid-1980s. The Committee was told that losses in relation to this incident are expected to be more than $11.6m.9 The Committee noted assurances from the Minister and officials that very substantial steps have been taken to

implement new fraud detection measures in EFIC.10

EFIC loan to Mr Edward A. Cantor

15. While considering the EFIC estimates, the Committee also took evidence in relation to a loan to a Mr Edward A. Cantor.11

Australian Customs Service practices in relation to penalties under the self-assessment system

16. During the Committee's scrutiny of the Budget estimates in October/November 1990, the Comptroller-General of Customs, Mr F. Kelly, and other officers answered questions from Committee members on the subject of Australian Customs Service (ACS) practices on the application of penalties to importers, agents and agencies when errors occur under the self-assessment system. The officers' advice at that time was that penalties were applied to only one

party. Further questioning in this round of hearings established that, while penalties only applied to one party, the ACS had followed a practice of recording errors against all three parties and having regard to that record when determining penalties in future cases.12

17. The Committee accepts that officers may confine themselves to a literal interpretation of questions. However, it is disappointing that the officers were

®Hansard, 23 April 1991, p. A175.

9Hansard, 16 April 1991, p. A81.

10Hansard, 16 April 1991, pp. A79, A85, A88.

“ Hansard, 16 April 1991, pp. A85-A88.

“ Hansard, 23 April 1991, p. A202.

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not more forthcoming at the Budget hearings on the broader implications of ACS practices in regard to self-assessment.

Australian Customs Service practices in relation to the customs barrier

18. Members of the Committee questioned witnesses on the practices followed by the ACS in relation to practices on searching luggage and persons and confiscation of property at the customs barrier13 Witnesses were not able to comment in detail on any of these issues for security reasons or because

questions involved a particular case. Some members of the Committee may wish to raise the matter again in the Committee of the Whole.

DEPARTMENT OF THE PRIME MINISTER AND CABINET

Surveys conducted by Resource Assessment Commission

19. Some senators raised questions concerning surveys conducted by the Resource Assessment Commission. Information was subsequently supplied which some senators may wish to discuss in the Committee of the Whole.

Reconciliation between Appropriation Bill and program format in Explanatory Notes

20. Departments are required to provide in their Explanatory Notes a table reconciling the amounts in the Appropriation Bills with the amounts presented in program format in the Explanatory Notes. The table provided in the Explanatory Notes for the Department of the Prime Minister and Cabinet on this occasion did not specifically reconcile the two sets of figures, although it was possible to undertake the reconciliation separately with the information provided. The table presented by the Department instead detailed the pattern of savings and additional expenditure proposals across programs within the portfolio.

21. The Committee believes that the standard reconciliation required by Department of Finance guidelines should still be presented in all Explanatory Notes. However, the reconciliation table provided on this occasion by the Department of the Prime Minister and Cabinet, or an adaptation of it, might be a useful addition to the Explanatory Notes of all departments in future

additional estimates.

TREASURY

Corrigenda to Explanatory Notes

22. The Committee notes that the Treasury supplied corrigenda to its Explanatory Notes on 15 April 1991, four days before the scheduled hearing. The

13Kansard, 23 April 1991, pp. 227-8, 231-3.

corrigenda involved 23 amendments or insertions to the Notes flowing from the omission from the Explanatory Notes of two items for which appropriations had been made in the Appropriations Bills.

23. The Committee is concerned that such errors should have occurred since all departments are required to provide in their Explanatory Notes a reconciliation of the amounts appropriated in the Bills against the program format presentation in the Notes. The reconciliation is designed to prevent the type of error which occurred in the Treasury Explanatory Notes. The Committee is under the impression that corrections to the Treasury Explanatory Notes have been necessary on more occasions in the past than is desirable for a relatively small department.

Tax deductibility of donations to charitable organisations

24. The Committee took evidence on the current arrangements for tax deductibility of donations to charitable organisations. The Committee notes that no arrangements exist for systematic auditing by the Taxation Office of organisations to which tax-deductible donations may be made. Nor does the Government collect or hold statistics on the amounts of tax-deductible donations received by these bodies. The Committee noted that the Government is reviewing the operation of tax deductibility in relation to bodies which accept donations and make grants to other bodies on the basis of the expressed wishes of donors. Some members of the Committee may wish to further examine these issues in the Committee of the Whole.

Modernisation Project: Australian Taxation Office

25. The Committee questioned officers of the Australian Taxation Office on its Modernisation Project and its cost.

DEPARTMENT OF FINANCE

Monitoring of departmental financial management

26. The Committee discussed the role of the Department of Finance in monitoring departmental compliance with financial management requirements.14 The Committee accepts that the scope available to the Department of Finance to monitor departmental performance in detail is limited. The accountability system depends on monitoring by a variety of external agencies, including estimates committees. Nevertheless, the Committee believes that, consistent with its leading role in financial management, the Departmental of Finance

should not ignore apparent deficiencies in departmental performance. The Committee was pleased to be told of two recent cases in which the Deputy Secretary of the Department of Finance contacted his counterparts in line departments to discuss significant problems in departmental management.15

8

14Hansard 6 May 1991, p. A275-80.

lsHansard, 6 May 1991, pp. A277-8.

9

Questions taken on notice at the hearing

25. The current estimates scrutiny procedures provide for estimates

committees to list in their reports questions taken on notice at hearings and not satisfactorily answered prior to the adoption of the report. These questions are listed for discussion in the Committee of the Whole. In this round of hearings, the Committee reviewed the estimates of the

Department of Finance on 6 May 1991 and adopted its report on 7 May. It clearly would have been impossible for the Department of Finance to provide answers to most of the questions taken on notice in the time available. This is reflected in the number of questions listed in the Appendix. The Committee notes that the Parliamentary Secretary to the Treasurer and the officers were able to answer most questions at the

hearing and took relatively few on notice.

RECOMMENDATIONS

T he Com m ittee recom m en d s that m atters raised in this report and all q u estio n s taken o n notice by w itn esses at th e Com m ittee's hearings and n o t an sw ered by 7 May 1991, a s listed in th e Appendix, b e subject to

further exam ination by th e Senate.

T he C om m ittee recom m en d s that th e S en a te approve, without

am endm ent or request, expenditure in a cco rd a n ce with th e estim ates co n sid ered by th e Com m ittee.

Bruce Childs Chair

RESERVATION BY SENATORS BISHOP, O'CHEE AND SHORT

By way of reservation, we recommend that the matters discussed below and other matters affecting the questions asked by us and taken on notice be subject to further examination by the Senate.

PARLIAMENTARY DEPARTMENTS

SENATE OFFICERS

We deplore the attack made by two Government Senators during the hearings on the integrity of officers of the Senate and uphold the propriety of officers of the Senate in making a contribution in a non-partisan way to discussions concerning the procedural operations of the parliamentary system.

PARLIAMENTARY SECURITY

The Committee heard evidence from officers of the Departments of the Senate and Joint House concerning a number of matters relating to the effectiveness of security in Parliament House.

Of particular concern was the fact that three security officers that had been caught in the act of stealing property from Parliament were still working in Parliament. Although one of the officers was dismissed, the Merit Protection Review Agency determined that the penalty was unnecessary severe and the officer was subsequently returned to

duty. We believe that this is unsatisfactory. Any officers of the Parliamentary departments who are caught in the act of attempting to illegally remove property should be dismissed. Senators cannot have confidence in the security of the

Parliament if the officers who are employed to provide security are in themselves a security risk.

The Committee also heard evidence that the former Security Controller had failed to identify the person or persons responsible for the vandalism of the Fred Williams painting in the Private Dining Room during a function hosted by the Treasurer last year. We recommend that the Department of the Treasury be restricted from holding functions in the Parliament until the person or persons responsible for this vandalism

are identified.

GOVERNOR-GENERAL

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OVERSEAS TRIP

The Governor-General's Office requested an additional $140,300 for a mid-term three week trip by the Governor-General and Mrs Heyden to Rome, London, New York and Hawaii. The Committee was told that "every effort has been made to keep costs at a reasonable level" and that the main purpose of the trip was for the Governor-General

to visit Her Majesty the Queen.

While not disputing the Governor-General's right to visit the Queen, we believe that this is an excessive cost for the taxpayer to bear particularly at a time when ordinary Australians are having to suffer the consequences of this Government's planned recession and would like the Office of the Governor-General to provide a full breakdown of the cost of the trip along with a schedule of the official engagements undertaken on the trip.

DEPARTMENT OF INDUSTRY. TECHNOLOGY AND COMMERCE

AUSTRADE AND THE EXPORT FINANCE INSURANCE CORPORATION

The Committee heard evidence that the Export Finance Insurance Corporation has been defrauded of approximately $16 million in a sophisticated operation by three Australian "conmen" over a period of three years and that EFIC and Austrade had been involved in a loan of $8 million to an American citizen, one Mr Edward A. Cantor, who has been charged with defrauding the US Federal Bankruptcy Trustee of more than $1 million and with having links with the Mafia.

The Minister and Austrade officers told the Committee that there was now a much more thorough investigation of all parties concerned in any loans or guarantees.

However, the Group Executive of Finance Insurance and Projects, Dr David Fisher, was reluctant to give an assurance to the Committee that the procedures introduced to ensure that the Commonwealth is not defrauded or involved in dealings with organisations such as the Mafia were effective. It was only after intense and persistent

questioning by Senators Bishop and Short that Dr Fisher could bring himself to say that the prospects for a person such as Mr Cantor to do business with Austrade would "not be very good". The Committee was not given an opportunity to investigate the new procedures that Austrade has introduced to protect the Commonwealth from

similar frauds and questionable loans in the future.

AUSTRALIAN CUSTOMS SERVICE

a) Uncooperative Attitude Tow ards Com m ittee and Om budsm an

We are particularly concerned about the uncooperative manner in which officers of the Australian Customs Service answered questions at the hearing of Estimates Committee A. On numerous occasions officers were unable to provide answers because they "could not remember" and had not briefed themselves fully on matters which were likely to be raised during the hearing.

The manner in which officers of the ACS handled themselves at the additional estimates hearings was particularly objectionable in that members of the Committee had previously found it necessary to report to the Senate following last year's budget hearings that 'the manner in which the Comptroller-General for the ACS, Mr F. Kelly gave evidence to the committee was an insult to the Committee and the Senate".

This attitude towards accountability within the ACS has also been the subject of criticism by the Ombudsman who wrote in his 1989-90 Annual Report that "an attitude of opposition to external review and an unwillingness to explain decisions or policies to the public have been evident in the ACS".

It is not acceptable for a government body such as the ACS to not co-operate fully with individuals and committees which exist to ensure that actions by departments and authorities are accountable. This attitude was reflected by the Deputy Secretary of the Department of Finance, Mr P. Barrett, when he told the Committee on May 6, 1991 that "under the broad arrangements for accountability the Parliament plays an important role".

The hostile attitude of the Australian Customs Service towards public accountability is a serous matter which undermines the sovereignty of the Parliament and should be the concern of all Senators.

b) Restriction of P erson s Allowed to act a s an Agent

The Comptroller-General told the Committee that ACS restricted the type of person allowed to act as an agent for companies or individuals who are the subject of investigation by the ACS so that only lawyers could be the agent. The Comptroller- General also admitted that there was a communication embargo imposed on consultants who are not legally qualified. We would like to raise this matter in the Committee of the Whole as we feel that the decision of the ACS to only deal with agents who are lawyers impedes the ability of companies or individuals who are the subject of investigation by the ACS to efficiently represent themselves.

c) Administrative Penalty Regim e

The ACS apparently registers a penalty against each error contained in a particular piece of documentation. Unfortunately, the Comptroller-General was unsure of the situation and needed to verify a number of matter including the guidelines. The

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Comptroller-General was also unable to tell the Committee what legal opinion was the basis for the implementation of the policy and whether the only advice used by the Service was that of a junior ACS lawyer, Mr Ian Williams. This issue should be further investigated in the Committee of the Whole in light of information provided by the

Comptroller-General after the hearings.

d) Midford Param ount C a se

Evidence was given concerning the disposal of clothing seized during the failed Midford Paramount case, the subsequent settlement of the question of compensation to Midford Paramount and the cancellation of the quota. ACS officers undertook to provide further information to the Committee.

e) D isclosure of Confidential Information

Earlier this yearthe NSW Independent Commission Against Corruption heard evidence from four officers of the ACS that they had breached Section 16 of the Customs Administration Act by providing confidential information to persons not entitled to that information. At the time of the hearing no one had been charged with breaching the

Act even though the penalty is two years imprisonment or a $2,000 fine. The Comptroller-General was unable to assure the Committee that confidential information held by the Service would not be compromised in the future.

f) Tendering P roced u res

The ACS is acquiring a new computer system at a cost of $180 million for which the Department of Administration Services was part of a consortium which had lodged a tender and at the same time was represented on the acquisition project team which is evaluating all the tenderers. We believe that this is quite clearly a serious conflict

of interest and that government departments and authorities which are involved in tendering for a contract should not be involved in assessing the tenders of competing tenderers.

g) Staffing Policy

The Committee was presented with information which appears to suggest that the ACS is involved in employing individuals in artificially created jobs. If this is the case then the Service is quite cleariy misspending taxpayers money.

DEPARTMENT OF THE TREASURY

DISCLOSURE OF CONFIDENTIAL AUSTRALIAN TAXATION OFFICE INFORMATION

Earlier this year the NSW Independent Commission Against Corruption heard evidence concerning the sale by officers of the Tax Office of confidential information from ATO

14

files. Subsequent to the hearings of the Committee reports appeared in newspapers of tax file numbers being sold, criminal elements infiltrating the ATO and officers investigating tax affairs of criminals taking bribes of $75,000. There is widespread concern that the administration by the ATO of the tax file system has been seriously compromised to the point where the system will be ineffective. We recommend that the administration of the tax file system, including the adequacy of the security of the information held in Tax Office files, be further investigated.

Senator Bronwyn Bishop Senator for New South Wales

Senator william O'Chee

Senator Jirn Short Senator for Victoria

RESERVATION BY SENATOR NOEL CRICHTON-BROWNE

SENATE ESTIMATES ΟΟΜλΠΤΤΕΕ "A"

I recommend that the following matter relating to the Estimates of Expenditure

for the Department of the Senate and the Joint House Department referred to

the Committee be further examined by the Senate:

All matters relating to these Parliamentary Departments.

Noel Crichton-Browne SENATOR FOR W A

6 May 1991

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APPENDIX

QUESTIONS ON NOTICE UNANSWERED AS AT 7 MAY 1991

DEPARTMENT OF INDUSTRY, TECHNOLOGY AND COMMERCE

Textile, Clothing and Footw ear D evelopm ent Authority

1. Breakdown of reduction in employment figures on a State-by-State basis (A75, Senator Bishop, 16.04.91)

Australian C ustom s Service

2. When practice changed whereby all parties concerned with transaction had record made and subsequent breaches were determined in that light (A204, Senator Bishop, 23.04.91).

3. Precise date of the Oxford Clothing Company case (A204, Senator Bishop, 23.04.91) .

4. Exact chronology and method of notifying appellant (including copy of the document) in the Oxford case (A205, Senator Bishop, 23.04.91).

5. Decision to deny the AAT jurisdiction by granting 100% remission (A205, Senator Bishop, 23.04.91).

6. Precisely what had to occur for decision to be 'we no longer have jurisdiction1 (A205, Senator Bishop, 23.04.91).

7. Whether people who are not legally qualified can act as agents for people being investigated by the Australian Customs Service (A206, Senator Bishop, 23.04.91).

8. Who established the practice (A206, Senator Bishop, 23.04.91).

9. Copy of the advice regarding a minor wishing to be represented by guardian or next friend (A208, Senator Bishop, 23.04.91).

10. Practice regarding each error in long documents (A211, Senator Bishop, 23.04.91) . '

11. Whether Customs Service employed a lawyer named Ian Williams, his employment classification, a copy of an opinion he wrote, whether steps were taken to confirm the opinion (A212, Senator Bishop, 23.04.91).

12. Whether practice of applying a penalty for each error in a document will continue, if not, the precise date the practice was discontinued and why (A212, Senator

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Bishop, 23.04.91).

13. Importation of a sausage-making machine and Customs Service actions in regard to it (A213, Senator Bishop, 23.04.91).

14. The date on which Mr Bissaker was delegated to sign an order (A213, Senator Bishop, 23.04.91).

15. Whether the Customs Service has a legal opinion from a Mr Miller concerning Midford Paramount case (A217, Senator Bishop, 23.04.91).

16. Rental or storage costs in the Midford Paramount case (A217, Senator Bishop, 23.04.91).

17. Names of officers involved in an 'information exchange club1 (A236, Senator Bishop, 23.04.91).

18. Representative from DITAC on evaluation for tender group (A240, Senator Bishop, 23.04.91).

19. Was Ms Roslyn Hodson still paying rent on Weipa house on 17 December 1985 (A242, Senator Bishop, 23.04.91).

20. Practice of penalties for each error on a piece of documentation:

. if it has ceased, when and why;

. if it has not ceased but it is proposed that it soon will, why it is to cease;

. what actions will be taken to remedy any imposition that anyone has suffered (A245, Senator Bishop, 23.04.91).

21. Visit to Antarctica by 2 Customs officers:

. cost and purpose;

. who paid;

. do the officers pay fringe benefits tax (A246, Senator Bishop, 23.04.91).

DEPARTMENT OF THE PRIME MINISTER AND CABINET

22. Accommodation costs of visiting dignitaries (A163, Senator Bishop, 23.04.91).

23. Superannuation arrangements for the Governor-General (A169, Senator Bishop, 23.04.91).

18

24. Which department is coordinating the ecologically sustainable development project (A264, Senator Walsh, 23.04.91)?

25. Tied grants - graph on appraisal of whether increasing/decreasing during last eight years (A270, Senator Bishop, 06.05.91)

26. 1927 financial agreement - work being done on (A274, Senator Bishop, 06.05.91)

DEPARTMENT OF THE TREASURY

27. Cost to revenue of tax free status of union investments; cost to revenue of unions not being required to pay capital gains tax; tax expenditure of tax deductible union dues (A102, Senator Short, 19.04.91)

28. Differential between cash and interest rates - current and during 1983 recession (A 102, Senator O'Chee, 19.04.91)

29. Differential between inflation and short term interest rates (A103, Senator O'Chee, 19.04.91)

30. Flow back to general funds of trade unions from commissions/fees from trade union superannuation funds (A115, Senator Short, 19.04.91)

Australian Taxation Office

31. Method of calculating the estimated deduction in tax revenue (A129-130, Senator Short, 19.04.91)

32. Action taken to remedy situation criticised by Auditor General re failure to return unused group certificates (A135, Senator Watson, 19.04.91)

33. R&D: Impact on investment of 125% tax deduction;impact of reduction from 150% to 125% (A136, Senator Short, 19.04.91)

34. Method of arriving at figures of the cost of new wholesale sales tax

changes (A136-138, Senator Short, 19.04.91)

35. Breakdown of tax outstanding as a percentage increase over same period last year (A147, Senator Watson, 19.04.91)

36. List of Questions on Notice incorporated - Fringe Benefits Tax (A158, Senator Watson, 19.04.91)

DEPARTMENT OF FINANCE

37. ADP equipment - value on the asset register (A279, Senator Bishop, 06.05.91)

38. Counselling CSS contributors - total cost of advertising campaign for (A286,

Senator Short, 06.05.91)

19

39. MOPS Act, Act of grace payment - briefing on the propriety of the arrangement; was there a precedent; if not, what was the basis of the negotiations; number of other people that have fallen into this category;parties of the senators who had staffers in this category who did not receive an act of grace payment; whether

anybody else asked and was knocked back and who they were affiliated with (A286-7, Senators Short/Bishop, 06.05.91)

40. Summary of the use of the AMF for each year since 1983-84 including details of the amount spent, number of approvals, and proportion of those which are a final charge on the advance; the number of knockbacks department by department (A288, Sen. Bishop)

41. Approval of applications for act of grace payments for people to be treated overseas -guidelines that apply in this area; address criticism by Professor Pearce re way act of grace payments are administered using an interest rate that is different from that of the Tax Office (A290, Senators Short/Bishop, 06.05.91) 4 2

42. List of questions on notice incorporated - Aerodrome Local Ownership Plan (ALOP), (A294-5, Senator Short, 06.05.91)

21

Estimates Committee A Index

Tuesday, 16 March 1991

Subject top

Chairman's Opening Statement 1

PARLIAMENT

Department of the Senate

General

Statement by the President 2-3

Downgrading of Presiding Office's offices 3

The Corporate Plan 4

Program 1 - Principal Advisers

Classification of Clerk Assistants 4-5

Performance based pay 5

Corporate Plan - principal advisers 5-6

- Australian Senate Practice 6

- performance indicators 6

- compliance with the law 7

- review of management information systems in relation to security 7-8

- revised personnel and financial delegations 8-9

- information technology plan 9-10

- industrial democracy 10

- legislation on a database 10-12

Distribution of'House'magazine 12

Program 2 - Table Office

Corporate Plan - performance indicators 12-13

Program 3 - Procedure Office

International membership fees for IPU 13-14

National Australasian Convention Exhibition 14-15

The appropriateness of holding exhibitions 15-17

Special advice to the Standing Committee on Regulations and Ordinances 17 Public access to committee meetings 17

22

Parliamentary Education Office - CVP - computer enhanced teaching facilities Advice to non government Senators re drafting legislation The ' partisan1 role of parliamentary officers

Program 4 - Committee Office

Committee staffing 'Advice' given to standing committees Ms Craze resignation

Program 5 - Management Office

Security arrangements - items taken from the building - security passes - the pot plant incident - bag snatching incident and general security matters - dummy letter bomb incident

Department of the Parliamentary Library

General

Statement by the President Information services requests Management of vehicles

Department of the Parliamentary Reporting Staff

GeneraI

Subject Page

17-18 18

19-22 22-30

30- 31

31- 34

34-37

37-42, 48-51 42-45 45-48 51-53 53-57

57- 58

58- 60

60-61

Statement by the President 61

Public Accounts Committee report into the PISO unofficial account 61 -62 Security relating to personal computers (XCOM) 62-63

Computer system and its requirements 63-64

Computer Power consultants 64-65

CNN 65

The choice of Nimrod computers 66-67

Sound and Vision Office - the role of officers 67-68

23

Joint H o u se Department

General

Statement by the President Venetian blinds, cost of Basement kitchen Restoration of the Fred Williams painting

State of the Tom Roberts painting

DEPARTMENT OF INDUSTRY, TECHNOLOGY AND COMMERCE

General

Chairman's Opening Statement Retrenchments in the TCF Success or otherwise of firms in the TCF industry Viability of the TCF Plan

Program 1 - AUSTRADE

The McKinsey report Fraud allegations in relation to EFIC Fraud claims in relation to Austrade Cantor luxury yacht loan

DIFF grants National interest account

Subject

Friday 19 April 1991

DEPARTMENT OF THE TREASURY

General

Corrigenda to the Department of the Treasury Explanatory Notes Inflation: Reserve Bank and Treasury opinions Recession

- main causes of - appropriateness of question at Estimates hearing Bond interest rates, reason for fall in "Anti-inflationary constituency" comment by Mr Fraser

at October 1990 hearing Effect on inflation performance in New Zealand by change in monetary policy Inflation target for New Zealand central bank

Page

68

68- 69

69- 71

71- 72

72- 73

74 75

75- 76

76- 77

77-78

79-81, 85-86 81-84 86-88 88 88-90

93 93

93

93- 94

94

94

94- 95

95- 96

24

Wage case decision 96-97

Budget outlook - current expectations 97

- effect on Commonwealth's call on the markets 97

- implication for Treasury notes - effect on requirements for a call on the markets in 1991-92 97

- amount of maturing debt that is foreign debt 97-98

- policy of refinancing maturing foreign debts with domestic raisings 98

- requirement to refinance maturing foreign debt overseas 98

Structural budget vs. cyclical position 98

Role of fiscal policy during a recession 98-99

Call on the market for refinancing: interest rate effects 99

Unemployment: current estimate of average monthly unemployment recipient benefits 99-100

PSBR 100-101

Industry Statement: effect on forthcoming budget 101

Taxation Policy: tax deductibility of donations and union investment income 101-102

Differential between cash and interest rates currently and during 1983 recession 102

Differential between cash and inflation rates 102-103

Effect of call on domestic savings on interest rates 103

Federal - State relations 103

Working party on issue of tied and matched grants - transfer of programs from the Commonwealth to the States 103-104

Commonwealth - State financial relations 104-105

Subject Page

Program 2 - Financial System Sub-program 2.1: Financial sector policy and administration

Sale of State Bank of Victoria to the Commonwealth Bank 105

30% float of the Commonwealth Bank 105-106

Sale and abolition of HLIC 107

Insurance and Superannuation Commissioner

Changes to Superannuation Act 107

Recommendations for drafting to overcome anomaly 107-108

Superannuation funds and life insurance companies 108

Wollongong conference 108-109

Occupational Superannuation legislation 109

Treasurer's Wollongong speech 109

25

National interest vs. maximising returns to shareholders 110-112

Establishment of a national interest fund in the AIDC proposal 112-113

Growth of superannuation industry 113-114

Commissions: disclosure requirements and flowback to general funds of trade unions 115

Trustees taking commissions on policies sold as a prudential standards 115-116

Sub-program 2 .2 : Currency - Royal Australian Mint

Sunday Times newspaper report, 14 April 1991: gold bullion sale through Perth Mint 107

Program 3 - Payments to or for other levels of Government

Monitoring by Federal Treasury of State Government activities in operating their finances 116-117

Program 4 - Corporate Services Departmental

Resignation payments to former Inter-State Commissioners 117

Program 7 - Industry Commission

Additional funding for Industry Commission 117-119

Effect of change in nature of work on recruitment 118

Use of consultants' services 118

Consultants 119

Decision on replacement of Chairman of the Industry Commission 119

Program 6 - Taxation Administration Australian Taxation Office

Allegation to ICAC that confidential ATO information was sold to clients by private inquiry agent 119

Allegations of links between Tax Office staff and persons with known criminal backgrounds 119

Alleged conspiracy within audit group in relation to fabricated results in audits 119-120

Action taken as a result of offences arising from ATO inquiries 120

Section 264 notices 120

Removal of Commissioner's discretions inconsistent with self-assessment 121

Introduction of self-assessment for individuals in respect of 1992-93 income tax returns 121-122

Subject Page

26

"Key man insurance split dollar insurance arrangements" Removal of hardship board Exposure Draft ruling No. 36 - contradiction between ruling and recent

legislative requirements passed by Parliament in relation to tax file number - incorporation of ruling as a legislation amendment Advice from ATO to Government on amendments arising

from ATO review of taxation returns Recommendations by Commissioner based on commercial reality Inconsistencies in the Income Tax Act which affect

only a few taxpayers Proposal for annual amendment to correct drafting errors, inconsistencies and inequitable situations - US measure Technical specialists

- questions in relation to retention of priority to technical vs. managerial skills ATO decisions on objections Issue of "blue book"

Changes to allowances Australian Financial Review article, 18 April 1991 - report that government officials are undermining taxation reform Australian Taxation Office booklet on determination

rules

Effective life of assets Pooling arrangements: implication for capital gains on Rate classes Dividends and interest payments paid to non-residents In-house and external advice to organisations

- access to documents Revenue collection compared to budget targets Resources for source deduction activities Auditor-General's Report

Electronic lodgement: requirement for signature Environmental impact statements: tax deduction provisions in relation to Research and Development: impact on investment of

reduction from 150 to 125 per cent tax deduction Wholesale sales tax: saving to next Budget as a result of the postponement in the commencement date of change Luxury car sales tax

Subject

122 122

Page

122

122- 123

123- 124

123-124

124

124- 125

125

125

125- 126

126- 127

127

127

127- 128

128- 129

129

129- 130

130- 131

131

131- 133

133- 134

134- 135

135

135- 136

136

136- 137

137

Sub-program 6.1 : Income tax

Tax file number 138-139

Training guarantee scheme 139-141

Modernisation program 141-142

Sub-pro gram 6.4 : Child Support Agency

Reason for additional estimate 142

Percentage of total additional estimate accounted for by dishonoured cheques, incorrect maintenance payments and refunds for overpayments 142-143

Tax deductible donations 143-145

Australia Ireland Fund 145

Tax status of unions 146

Financial institutions duty (FID) tax 146

Current amount of debts outstanding for ATO 147

Steps taken to accommodate taxpayers with financial difficulties 147

Status of review of penalties said to be being undertaken by ATO 147

Advertisement in the Australian, 22 January 1991: statement on revenue service tax specialists 147

Canberra solicitor, Terrence J. Chamberlain 147-148

Relief and hardship provisions 148-149

Regional taxation office in Hurstville: status of decision to establish 149

ATO's obligations under section 200B 149

Independent Commission Against Corruption 150

Delays in postage in lodgement of returns, ATO allowance for 150

- effect of reduction in days of grace after the introduction of new computer systems 150-151

Tax rulings: number ATO has given in last year 151

Mr Peter Frisch, P and L Commercial and Mercantile 151

Sunday Territorian article, 24 February 1991 - editorial on Mrs Nancy Bernoth 151 -152

- procedure by which senior ATO officer would learn of case 152

Audit Report No. 22 152

Compliance with financial direction 2(k) 152-153

Tax returns lodged by non-residents 153-154

Closure of Taxation offices for staff training 154

Security of Tax Office information 155-156

List of questions on notice from Senator Watson 156-159

27

Subject Page

28

T uesday, 2 3 March 1991

Subject Pa9e

Chairman's Opening Statement 161

Governor-Generals Office

General

Statement by Mr Sturkey 161

Costs of long term development plans for Government House 161-163 Accommodation for visiting dignitaries 163-165

Australian honours 165-166

Additional staff 166-167

Relocation of the Honours Secretariat 167-168

Mid-term overseas trip 168-169, 170

Superannuation arrangements 169

Management information services in relation to contracting out 169-170

DEPARTMENT OF INDUSTRY, TECHNOLOGY AND COMMERCE

Auditor General's report - accounting procedures - breaches of the Audit Act 171-179

Oztech 179

Offsets programs 179-188, 198-199

IT in relation to the industry statement 188-190

Anti-Dumping Authority 190-191

National interest provisions in relation to Austrade and EFIC 191

Future estimates dealings with EFIC and Austrade 192

Multifunction Polis, responsibility for 192-193

Regulations in relation to Patent, Trademarks and Designs Office 193-194

Subprogram 1.5 - Corporate Services

Promotions and appeals on promotions Payment to the Australian Wheat Board Questions on notice (Senator Short)

Program 2 - Australian Customs Service

Ombudsman's criticisms in annual report 200-201

The imposition of penalties for errors under the self-assessment system ('black marks') 201-204, 209-212, 245

The Oxford Clothing Company case 204-205

The status of people who are able to represent parties under investigation by the ACS 205-212

194-197 198

199-200

Methods by which settlement of disputes are achieved - Sausage-making machines in Adelaide 212-213

- Midford Paramount 213-220

Procedure at international airports 227-228

Anti-dumping inquiries 228-231

The confiscation of a Hong Kong lady's jewellery incident 231-233

Hearing of the NSW ICAC in relation to four customs officers 233-236, 241 -242

New computers for ACS - Acquisition of new computers 236-237

- New computers in relation to Exit and Tradegate 237-239

- DAS tender 239-241

Ms Roslyn Hodson 242-245

Compass Airlines 246

Program 4 - Nuclear Science and Technology

ANSTO - five year plan 220-221

Super computer, authorisation for 221 -222

New reactor for Lucas Heights 222-223

ANSTO and the three mines policy 223

' Morale Meltdown1 - article in the colour supplement of the Australian - suicides at Lucas Heights 223-224

- reported comments of Mr Collins 224

Safety record at Lucas Heights 225

Acquisition of Fox Anamet 225-227

Management structure 226

Program 5 - Commonwealth Scientific and Industrial Research Organisation

Acquisition of MasPar (new computer) 247, 251

Infrastructure 247-248

Coronation Hill 248-249

OSS 249

Gene shears project 250-251

Institute of National Resources 251

Contact with other politicians - internal memo 251-255

DEPARTMENT OF THE PRIME MINISTER AND CABINET

Legal costs in relation to defamation/similar legal proceedings 256

Official Establishments in relation to telephone calls 257

Campaign aimed to encourage men to play a more equal role in the family 257-259

Resource Assessment Commission survey with regard to views on the environment 259-264

Funding for the economically sustainable development project 264

29

Subject Page

30

Program 7 - Public Administration and Accountability

Special tasks of Commissioner 265

Monday, 6 May 1991

DEPARTMENT OF THE PRIME MINISTER AND CABINET

Program 1 - Departmental Policy Advising

Special Premiers Conferences 267-68

- timing of the conference due for the end of May 268

- items on the agenda 268

- length of the May conference 268-69

- agenda items on which firm decisions are expected to be made 269

- tax powers and tied grants 269

- number of people in the secretariat 269

- the input of other departments and agencies 270

- GTEs and GBEs 270

- mutual recognition of trading goods/reciprocal legislation? 270-71

- mutual recognition in relation to New Zealand 271

- ranking of priorities 271

- duplication and overlap 271-72

- HACC 272

- constitutional aspects 272

- availability of papers 272-73

- electricity generation, transmission and distribution 273

- NBFIs 273

- basis of finance agreement 273-74

- tax powers in relation to a review of wartime legislation 274

DEPARTMENT OF FINANCE

General

The development of internal audits by departments 275-78

Stocktake of ADP hardware 278-79

Recovery action in relation to debtors 279

Role of Finance in relation to the Government's program evaluation strategy 279-80

Subject Pa9e

31

Program 1 - Budget Development and Management

Severance payments to Commonwealth public servants Aerodrome local ownership plan Relationship with the ACT administration Payments to States made prior to 1 July 1987

Program 4 - Retirement Benefits

Superannuation Act 1922 in relation to surviving spouse provision The superannuation provision in relation to the 1976 and 1990 Acts Additional estimates for public superannuation scheme Advertising campaign in relation to the counselling

of CSS contributors Act-of-grace payments

Program 5 - Specific Payments and Receipts Activities

Natural disaster relief - Newcastle earthquake - floods Advance to the Minister for Finance Advances in general

Act-of-grace payments Commonwealth Task Force on Asset Sales - AGL dam ages claim - AGL pipeline

Progress on asset sales - in general - HLIC Annual running costs of the task force

Questions on notice in relation to ALOP Letter from Senator McMullan in response to questions asked by Senator Watson regarding the Taxation Office Answers to questions on notice in relation to Taxation

(Senator Watson)

Subject Page

280-81 281 281-83 283

283- 84

284- 85

285

285- 86

286- 87

287 287

287- 88

288- 90

290- 91

291- 92

292- 93

293

293- 94

294

294- 95

295

295-310

33

THE SENATE

ESTIMATES COMMITTEE Ά '

MINUTES OF PROCEEDINGS

NO. 17

IS April 1991

1. MEETING: The Committee met in public session at 3.40 p.m. in the Main Committee Room. Senator Childs took the Chair.

2. STATEMENT BY CHAIR: The Chair reported the resolution of the Senate of 14 March 1991 referring matters to Estimates Committees, and made an opening statement.

3. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1990-91; PARLIAMENTARY DEPARTMENTS:

The Committee commenced its consideration of the Proposed Additional Expenditure of the parliamentary departments.

In attendance was Senator the Hon. Kerry Sibraa, President of the Senate, accompanied by the following officers:

Department of the Senate -Mr H. Evans, Clerk of the Senate Miss A. Lynch, Deputy-Clerk of the Senate Ms M. Cornwell, Clerk-Assistant (Table) Mr C. Elliott, Clerk-Assistant (Procedure) Mr P. O'Keeffe, Clerk-Assistant (Committees) Mr J. Vender Wyk, Clerk-Assistant (Management)

Mr R. Alison, Usher of the Black Rod Mr G. Nankeirvis, Principal Parliamentary Officer (Management) ,

Mr R. Gilbert, Director of Parliamentary Education Office Mr M. Rodgers, Acting Security Controller, Department of the House of Representatives

Department of the Parliamentary Library - Mr H. de S.C. MacLean, Parliamentary Librarian Mr J. Brudenall, Deputy Parliamentary Librarian Mr C. Boreham, Acting Director, Corporate Services Mr D. Woolner, Acting Head, Parliamentary Research Service

Mr B. Sweeney, Assistant Director, General Services Ms J. Clarke, Assistant Director, Personnel Mr J. Pantano, Acting Assistant Director, Financial Services

Department of the Parliamentary Reporting Staff - Mr J. Templeton, Secretary (Principal Parliamentary Reporter) Mr B. Harris, Chief Hansard Reporter Ms C. Upton, General Manager, Parliamentary Information

Systems Office

34

Mr H. Hall, Manager, Sound and Vision Office Mr J. Walsh, Assistant Secretary, Corporate Management Branch Mr B. Robinson, Director, Financial Management Mr G. Barber, Manager, Computers and Communications Mr P. Ward, Manager, Client Services Mr M. Farrelley, Assistant Director, Personnel Management

Joint House Department - Mr M. Bolton, Secretary Mr J. Porter, First Assistant Secretary, Corporate Services Mr F. Bradley, Assistant Secretary, Property Management Mr R. Wedgwood, Assistant Secretary, Corporate Services Mr J. Rankin, Assistant Secretary, Commercial Services Mr G. Coulston, Director, Finance and Management Review Mr A. Guilfoyle, Chief Engineer

Department of Finance -Mr B. Hackett, Senior Finance Officer Mr M. Catlin, Senior Finance Officer

The Committee received a publication entitled Department of the Senate: Corporate Plan: 1990-93.

4. SUSPENSION OF SITTING: The Committee suspended its sitting between 6.35 pm and 8.05 pm.

5. RESUMPTION OF CONSIDERATION OF THE ADDITIONAL ESTIMATES OF THE PARLIAMENTARY DEPARTMENTS:

The Committee received a document headed Items reported stolen to the Office of the Security Controller: 3 August 1988 to 10 April 1991.

The Committee concluded its examination of the Particulars of Proposed Additional Expenditure for the Parliamentary Departments at 10.43 pm, subject to an undertaking by the President and officers to provide additional information to the Committee.

6. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE AND

PARTICULARS OF CERTAIN PROPOSED ADDITIONAL EXPENDITURE 1990-91: DEPARTMENT OF INDUSTRY, TECHNOLOGY AND COMMERCE:

In attendance was Senator the Hon. John Button, Minister for Industry, Technology and Commerce, accompanied by the following officers:

Department of Industry, Technology and Commerce - Mr R. Hayhurst, Acting Chief Executive, Textiles, Clothing and Footwear Development Authority Ms H. Georgopolous, Acting General Manager, Textiles,

Clothing and Footwear Development Authority AUSTRADE Mr D. Hunter, Deputy Managing Director Mr R. Maxwell, Group Executive

35

Dr D. Fisher, Group Executive, Finance Insurance and Projects Mr J. Bennett, Corporate Controller Mr A. McIntosh, Manager, International Operations Mr J. Tinney, Manager, National Operations

Mr D. Richard, Manager, Human Resources Mr J. Hemphill, Manager, Corporate Communications Mr B. Friend, Manager, Finance and Administration Dr E. Druce, Manager, Export Strategy

Mr M. Keogh, Manager, Information Systems Development Mr G. McClelland, Manager, Export Grants Mr P. Pond, Manager, Investment Facilitation Mr L. Downey, Manager, Trade Promotion Mr R. Freestone, Manager, International Business

Development Nuclear Science and Technology Dr D. Cook, Executive Director Mr D. Wilson, General Manager (Corporate) Mr R. Baker, Director (Business Administration)

7. STATEMENT BY CHAIR: The Chair reported the resolution of the Senate of 14 March 1991 referring matters to Estimates Committees, and made an opening statement.

8. CONSIDERATION OF ESTIMATES

The Committee resolved to consider the proposed additional expenditure and certain proposed expenditure in respect of the Textile, Clothing and Footwear Authority first and AUSTRADE second.

The Committee adjourned its examination of the Particulars of Proposed Additional Expenditure for 1990-91 and of Certain Proposed Expenditure in respect of the Year Ending 30 June 1991 for the Department of Industry, Technology and Commerce until Tuesday 23 April 1991.

9. ADJOURNMENT: The Committee adjourned at 12.09 am.

10. ATTENDANCE: Senators Childs (Chair), Bishop, Coates, O'Chee, Short and Walsh.

Senators Crichton-Browne and Schacht also attended.

CONFIRMED

Bruce Childs Chair

36

THE SENATE

ESTIMATES COMMITTEE *A'

MINUTES OF PROCEEDINGS

NO. 18

19 April 1991

1 . MEETING: The Committee met in public session at 8.08 a.m. in Committee Room 2S3. Senator Childs took the Chair.

2. STATEMENT BY CHAIR: The Chair reported the resolution of the Senate of 14 March 1991 referring matters to Estimates Committees, and made an opening statement.

3. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1990-91 AND PARTICULARS OF CERTAIN PROPOSED ADDITIONAL EXPENDITURE 1990-91: DEPARTMENT OF THE TREASURY:

The Committee commenced its examination of the proposed additional expenditure of the Department of the Treasury.

In attendance was Senator the Hon. R. McMullan,

Parliamentary Secretary to the Treasurer, accompanied by the following officers:

Department of the Treasury -Mr E.L. Waterman, Deputy Secretary (Financial) Mr J.A. Fraser, Deputy Secretary (Economic) Mr F.G.H. Pooley, First Assistant Secretary, Finance and

Investment Division Mr R. Jones, Regulation Review Section, Finance and Investment Division Mr C. Stevens, Debt Management Section, Capital Markets

Division

Mr R. Wood, Assistant Secretary, Prices and Incomes Branch, Economic Division Mr R. Renwick, Prices Surveillance Section, Economic Division Mr P. Cornish, Current Economic Conditions Section,

Economic Division Mr J. Combe, Assistant Secretary, State and Local

Government Finances Branch, Fiscal Policy Division Mr C. Legg, State Finances Section, Fiscal Policy Division Mr J. Harris, Acting Assistant Secretary, Manufacturing and General Structure Branch, Structural Policy Division Dr. P. Boxall, Assistant Secretary, Finance and Personal

Taxation Branch, Taxation Policy Division Mr W. Stock, Personal Income Section, Taxation Policy Division Mr D.W. Holmesby, Acting Assistant Secretary, Corporate

Services Branch Ms L.M. Toohey, Director, Finance and Administration, Corporate Services Branch

37

Mr M. Gillard, Assistant. Director, Resources, Corporate Services Branch Mr B. Cassidy, Principal Adviser

Industry Commission: Mr J. Spasojevic, Head of Office Mr P. Thomas, Assistant Commissioner, Corporate Services Branch Mr E. Beens, Director, Finance and Services Mr J. Moore, Finance Officer

Australian Bureau of Statistics: Mr D. Trewin, Acting Deputy Statistician Mr T. Skinner, First Assistant Statistician, Social and Labour Division Mr F. von Reibnitz, First Assistant Statistician,

Coordination and Management Division Mr G. Cocking, Acting First Assistant Statistician, Statistical and Information Services Division Mr P. McCarthy, Assistant Statistician, National

Accounts Branch Mr H . Kriegel, Assistant Statistician, Resources Management Branch Ms K. Duff, Director, Financial Management Section Ms R. Gibbs, Assistant Director, Financial Management

Section

Ms A. Shields, Financial Management Section

Insurance and Superannuation Commission: Mr R.M. Beetham, Commissioner Mr R. Glading, Deputy Commissioner, Life Insurance Mr R. Dean, Deputy Commissioner, Superannuation Mr R. Smith, Deputy Commissioner, General Insurance Mr F. Keenan, Senior Adviser, Policy Mr N. Stuparich, Assistant Commissioner, Operational

Standards

Mr M. O'Neill, Assistant Commissioner, Benefit Limits Mr G. Burns, Assistant Commissioner, Corporate Services Ms D. Hart, Director, Corporate Services

Australian Taxation Office: Mr V. Mitchell, First Assistant Commissioner, Audit Group Mr T. Story, Assistant Commissioner, Tax File Number Mr S. Allen, Assistant Commissioner, Complex Audit Mr G. Seymour, First Assistant Commissioner, Systems

Group

Ms J. Brady, First Assistant Commissioner, Appeals and Review Group Ms J. McKenry, First Assistant Commissioner, Taxpayer Assistance Group Mr G. Doughty, Assistant Commissioner, Client Service Mr V. Tetley, Assistant Commissioner, Revenue Analysis

Dr K. McKenry, Assistant Commissioner, Income Tax Returns Processing Mr C. Mobbs, Assistant Commissioner, Corporate Management Support

38

Mr R. McDonald, Assistant Commissioner, Program Evaluation Mr J. Phillips, Acting Executive Officer, Corporate Budgeting Mr W. Rofe, Director, Decentralisation and

Accommodation Mr M. Ryan, Accommodation Officer Mr M. Gosney, Director, Security Mr T. Butterfield, Assistant Commissioner, Services Mr C. Hood, Assistant Commissioner, Training Guarantee Mr J. Wheeler, First Assistant Commissioner, Child

Support Agency Mr R. Johnston, Executive Officer, Child Support Agency Mr J. Killaly, Assistant Commissioner, International

Tax Branch

Mr R. Highfield, First Assistant Commissioner, Revenue Collection Group

Department of Finance -Mr E . Wojcik, Chief Finance Officer Mr J.W. Turner, Senior Finance Officer

The Committee received a publication entitled Corporate Plan 1990-91 to 1992-93: Australian Taxation Office.

4. SUSPENSION OF SITTING: The Committee suspended its sitting between 12.46 pm and 1.50 pm.

5. RESUMPTION OF CONSIDERATION OF THE ADDITIONAL ESTIMATES OF THE DEPARTMENT OF THE TREASURY:

The Committee resolved to incorporate in the Transcript of Proceedings the text of 14 questions (several with sub­ questions) provided in writing by Senator Watson.

The Committee concluded its examination of the Particulars of Proposed Additional Expenditure and Certain Proposed Additional Expenditure for the Department of the Treasury at 3.46 pm, subject to an undertaking by the Parliamentary

Secretary to the Treasurer and officers to provide

additional information to the Committee.

6. ADJOURNMENT: The Committee adjourned at 3.46 pm.

7. ATTENDANCE: Senators Childs (Chair), Bishop, Coates, O'Chee, Short and Walsh.

Senator Watson also attended.

CONFIRMED

Bruce Childs Chair

39

THE SENATE

ESTIMATES COMMITTEE * A '

MINUTES OF PROCEEDINGS

NO. 19

23 April 1991

1. MEETING: The Committee met in public session at 9.06 a.m. in Committee Room 2S1. Senator Childs took the Chair.

2. STATEMENT BY CHAIR: The Chair reported the resolution of the Senate of 14 March 1991 referring matters to Estimates Committees, and made an opening statement.

3. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1990-91: OFFICE OF THE GOVERNOR-GENERAL:

In attendance was Mr Douglas Sturkey, Official Secretary to the Governor-General, accompanied by the following officers:

Office of the Governor-General -Mrs L Lawless, Deputy Official Secretary Commander P. Landon, Military Secretary and Comptroller to

the Governor-General Miss R. Rawson, Director Honours Secretariat Mr K. Morcombe, Assistant Director, (Awards and Systems) Mr C. Bell, Senior Executive Officer Ms E. Sanderson, Administrative and Finance Officer

Department of Finance -Mr M. Channon, Finance Officer

The Committee concluded its examination of the Particulars of Proposed Additional Expenditure for the Office of the Governor-General at 10.01 am, subject to an undertaking by the officers to provide additional information to the Committee.

4. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE AND

PARTICULARS OF CERTAIN PROPOSED ADDITIONAL EXPENDITURE 1990-91: DEPARTMENT OF INDUSTRY, TECHNOLOGY AND COMMERCE:

The Committee resumed its examination of the proposed additional expenditure of the Department of Industry, Technology and Commerce.

In attendance was Senator the Hon. John Button, Minister for Industry, Technology and Commerce, accompanied by the following officers:

40

Department of Industry, Technology and Commerce - Dr J. Bell, Deputy Secretary Mr N. Hurst, First Assistant Secretary, Corporate Services Mr F. Kovachevich, Assistant Secretary, Resource Management, Corporate Services Mr P. McGuiness, Assistant Director, Resource Budgeting Mr C. Dainer, Director, Resources, Corporate Services Mr G. Hallinan, First Assistant Secretary, Light Industries Mr A. Bain, First Assistant Secretary, Heavy Industries Mr D. Taylor, Acting First Assistant Secretary, Building

and Service Industries Mr J. Wells, Acting Head, Small Business Unit, Building and Service Industries Mr D. Stafford, Director, Export Credit Policy,

International Dr M. Fitzpatrick, First Assistant Secretary, Innovation Mr A. Caddy, Assistant Secretary, Innovation, Development Finance and Taxation Dr R. Hawkins, Director, Bureau of Industry Economics Mr D. McCarthy, General Manager, Multifunction Polis Project Group

Patents Office -Dr I. McCay, Assistant Commissioner

Anti-Dumping Authority - .

Mr J. McGuire, Executive Director

Australian Customs Service -Mr F . Kelly, Comptroller-General Mr D. O'Connor, Deputy Comptroller-General Mr J. Hawksworth, National Manager, Coordination and Services Mr B. Bissaker, National Manager, Investigation Mrs T. Bridge, Director, Budgets and Accounting

Australian Nuclear Science and Technology Organisation -Dr D. Cook, Executive Director Mr D. Wilson, General Manager, Corporate Mr R. Baker, Director, Business Administration

Commonwealth Scientific and Industrial Research

Organisation -Mr R. Garret, General Manager, Corporate Finance Mr T. Healy, Corporate Lawyer, Corporate Legal Service Dr T. Heyde, Principal Secretary, Office of the Chief Executive and Board Ms M. Keir, Manager, Ministerial and Government Business, Office of the Chief Executive and Board Mr P. Langhorne, Director, Corporate Services Department Dr A. Pik, Manager, Institute of National Resources and Environment, Planning and Policy Mr A. Healy, Manager, Institute of Plant Production and

Processing, Planning and Policy Mr H. Upstill, Manager, Institute of Industrial

Technologies, Policy Planning and Evaluation Mr H. Musidiak, Senior Adviser, Institute of Minerals, Energy and Construction, Policy and Projects

41

Department of Finance -Mr D. Bauesmann, Chief Finance Officer Mr C. McEwen, Finance Officer Ms S. Gillett, Chief Finance Officer

5. STATEMENT BY CHAIR: The Chair reported the resolution of the Senate of 14 March 1991 referring matters to Estimates Committees, and made an opening statement.

6. CONSIDERATION OF ESTIMATES

The Chair invited general questions and called on Program

The Committee resolved to incorporate in the transcript of proceedings three written questions supplied by Senator Bishop in relation to Program 3.

7. SUSPENSION OF SITTING: The Committee suspended its sitting between 12.45 pm and 1.45 pm.

8. RESUMPTION OF CONSIDERATION OF THE ADDITIONAL ESTIMATES OF THE DEPARTMENT OF INDUSTRY, TECHNOLOGY AND COMMERCE:

The Chair called on Programs 2, 4 and 5.

The Committee concluded its examination of the Particulars of Proposed Additional Expenditure and Certain Proposed Additional Expenditure for the Department of the Industry, Technology and Commerce at 6.31 pm, subject to an

undertaking by the Minister and officers to provide

additional information to the Committee.

9. SUSPENSION OF SITTING: The Committee suspended its sitting between 6.31 pm and 8.07 pm.

10. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE AND PARTICULARS OF CERTAIN PROPOSED ADDITIONAL EXPENDITURE 1990-91: DEPARTMENT OF THE PRIME MINISTER AND CABINET:

The Committee commenced its examination of the proposed additional expenditure of the Department of the Prime Minister and Cabinet.

In attendance was Senator the Hon. John Button,

representing the Prime Minister, accompanied by the following officers:

Department of the Prime Minister and Cabinet - Ms P. Turner, Deputy Secretary Mr P. Vaughan, First Assistant Secretary, Corporate Services Division .

Mr M. Hazell, Acting Secretary, Official Establishments Trust .

Ms M.A. O'Loughlin, First Assistant Secretary, Social Policy Division . . .

Ms D. Casey, Assistant Secretary, Social Policy Division

42

M b H. L 'Orange, First Assistant Secretary, Office of the Status of Women Mr T. O'Sullivan, First Assistant Secretary, Commonwealth State Relations Secretariat Mr N. Edwards, First Assistant Secretary, Office of Multicultural Affairs A. Leahy, Assistant Secretary, Corporate Support Branch K. Lees, Director, Finance and Services Section

Australian Science and Technology Council -Mr G. Burch, Assistant Secretary, Briefing and

Administration Branch

Merit Protection Review Agency - Mr P. Forster, Acting Director Mr T. Thornton, Executive Officer

Office of the Inspector-General for Intelligence and Security -Mr P. Moss, Principal Executive Officer

Ombudsman Office -Mr B. Hugg, Executive Officer Mr B. Williamson, Senior Assistant Ombudsman

Office of National Assessment - Mr K. Haydon, Deputy Director General Mr D. Triffett, Chief Executive Officer Ms M. Bourke

Resource Assessment Commission - Mr R. Mills Ms B. Belcher Me A. Nicholson Mr C . Hamilton Mr D. Gillespie Mr R. Kenchington Mr C . Hickey Mr G. Tomlinson

Public Service Commission - Mr A. Kerr, Deputy Commissioner Ms B. Laity, Acting Director, Corporate Services Mr E. Attridge, First Assistant Commissioner, Selection and

Development Division Mr B. Gleeson, Assistant Commissioner, SES Career

Management Branch Ms C. Hagan, Director, Middle Management Development Mr P. Jones, Assistant Commissioner, SES Selection and Placement Branch Ms M. Cane, First Assistant Commissioner, Human Resource

and Policy Division Ms P. Kazan, Director, EEC Unit Mr M. Kilner, Assistant Commissioner, APS Entry and Advancement Branch Mr R. Harding, Assistant Commissioner, People Management

and Deployment Branch

43

Department of Finance -Mr M. Channon, Finance Officer

11. STATEMENT BY CHAIR: The Chair reported the resolution of the Senate of 14 March 1991 referring matters to Estimates Committees, and made an opening statement.

12. CONSIDERATION OF ESTIMATES

The Chair invited general questions and called on Programs 1 to 7.

The Committee concluded its examination of the Particulars of Proposed Additional Expenditure and Certain Proposed Additional Expenditure for the Department of the Prime Minister and Cabinet at 9.10 pm, subject to an undertaking

by the Minister and officers to provide additional

information to the Committee.

13. ADJOURNMENT: The Committee adjourned at 9.10 pm.

14. ATTENDANCE: Senators Childs (Chair), Bishop, Faulkner, O'Chee, Short and Walsh.

CONFIRMED

Bruce Childs Chair

44

ESTIMATES COMMITTEE Ά '

MINUTES OF PROCEEDINGS

NO. 20

6 May 1991

THE SENATE

1. MEETING: The Committee met in public session at 8.06 a.m. in Committee Room 2S1. Senator Childs took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE AND PARTICULARS OF CERTAIN PROPOSED ADDITIONAL EXPENDITURE 1990-91: DEPARTMENT OF THE PRIME MINISTER AND CABINET:

The Committee resumed its consideration of the additional estimates of the Department of the Prime Minister and Cabinet.

In attendance was Senator the Hon. R. McMullan,

Parliamentary Secretary to the Treasurer, representing the Prime Minister, accompanied by the following officers:

Department of the Prime Minister and Cabinet - Mr P. Turner, Deputy Secretary Mr P. Vaughan, First Assistant Secretary, Corporate Services Division Ms A. Leahy, Assistant Secretary, Corporate Support Branch Mr K. Lees, Director, Finance and Services Section Ms M. A. O'Loughlin, First Assistant Secretary, Social Policy Division Ms D. Casey, Assistant Secretary, Social Policy Division Ms H. LOrange, First Assistant Secretary, Office of the

Status of Women Mr T. O'Sullivan, First Assistant Secretary, Commonwealth- State Relations Secretariat Mr W. Jackson, Assistant Secretary, Commonwealth-State Relations Secretariat Mr N. Edwards, First Assistant Secretary, Office of Multicultural Affairs

Official Establishments Trust - Mr M. Hazell, Acting Secretary

Department of Finance -Mr P. Antcliffe, Chief Finance Officer

45

The Chair called on questions relating to the Commonwealth- State Relations Secretariat under Program 1.

The Committee concluded its examination of the Particulars of Proposed Additional Expenditure and Certain Proposed Additional Expenditure for the Department of the Prime Minister and Cabinet at 8.46 am, subject to an undertaking

by the Parliamentary Secretary and officers to provide additional information to the Committee.

3. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE AND

PARTICULARS OF CERTAIN PROPOSED ADDITIONAL EXPENDITURE 1990-91: DEPARTMENT OF FINANCE:

The Committee commenced its examination of the proposed additional expenditure of the Department of Finance.

In attendance was Senator the Hon. R. McMullan,

Parliamentary Secretary to the Treasurer, representing the Minister for Finance, accompanied by the following

officers:

Department of Finance -Mr P.J. Barrett, Deputy Secretary Mr I. McPhee, First Assistant Secretary, Financial

Management Division Mr A. Maclean, Principal Adviser, Information Technology and Systems Group Mr M. Crompton, Acting Principal Adviser, Social Security Division Mr D. Lindsay, Assistant Secretary, Commonwealth

Superannuation Branch Mr J.V. Galloway, Assistant Secretary, Resource Policies and Management Branch Mr S. Bartos, Assistant Secretary, Science, Agriculture and

Resources Branch Mr K. Mackay, Assistant Secretary, evaluation and

Statistical Services Branch Mr A. Pearson, Assistant Secretary, Public Administration and Accounting Development Branch Mr W. Brophy, Special Adviser, Systems Development, ADP

Branch Mr G. Harper, Acting Assistant Secretary, Accounting Policy Branch Mr J . Latimer, Director, Technical Services Section

Mr D. Allen, Senior Finance Officer, Science, Agriculture and Resources Branch .

Mr S. Macleod, Chief Finance Officer, Public Administration and Accounting Development Branch Mr T. O'Brien, Senior Finance Officer, Accounting Policy Branch Mr I. Butt, Director, Accounting Operations Branch Mr B. Hackett, Senior Finance Officer, Administrative and

Commercial Services Branch Mr H. Heinrich, Chairman, Commonwealth Task Force on Asset Sales ,

Mr S. Lewis, Project Officer, Commonwealth Task Force on Asset Sales

46

Australian National Audit Office -Mr M.J. Jacobs, Acting Auditor-General Mr G.M. Williams, Acting Deputy Auditor-General Mr J.A. Bowden, Executive Director, Audit Group A Mr J.E. Meert, Executive Director, Executive Support Branch Mr R.J. Morison, Senior Director, Financial Administration

Section Mr F.P. Campbell, Director, Financial Administration Section

Retirement Benefits Office - Mr P. Gunther, Deputy Commissioner Mr R. McKillop, Assistant Commissioner, Information Technology Defence Schemes Branch Mr P. Hayes, Assistant Commissioner, Superannuation Schemes

Branch Mr J. McCullagh, Acting Assistant Commissioner, Resources Management Branch Mr R. Jackson, Director, Finance and Accounts Mr P. Hoad, Director, Publicity and Counselling

Department of Finance -Mr P. Antcliffe, Chief Finance Officer

4. STATEMENT BY CHAIR: The Chair reported the resolution of the Senate of 14 March 1991 referring matters to Estimates Committees, and made an opening statement.

5. CONSIDERATION OF ESTIMATES

The Chair invited general questions and called on Programs 1 to 7.

The Committee resolved to incorporate in the transcript of evidence four written questions provided by Senator Short, concerning the Aerodrome Local Ownership Plan and certain answers to questions from Senator Watson concerning the Australian Taxation Office and taken on notice at an earlier hearing.

The Committee received two videocassettes from the Australian Taxation Office entitled Queensland Law Society - Continuing Education on Government Training Guarantee, and Talk with the Experts on the Government Training

Guarantee together with a publication entitled The Training Guarantee: Your Questions Answered.

The Committee concluded its examination of the Particulars of Proposed Additional Expenditure and Certain Proposed Additional Expenditure for the Department of Finance, subject to an undertaking by the Parliamentary Secretary and officers to provide additional information to the Committee.

47

5. ADJOURNMENTt The Committee adjourned at 10.35 am.

6. ATTBNDANCBi Senators Childs (Chair), Bishop, Coates, Short and Walsh.

CONFIRMED

Bruce Childs Chair

48

ESTIMATES COMMITTEE Ά '

MINUTES OF PROCEEDINGS

NO.21

7 May 1991

THE SENATE

1. MEETING: The Committee met in private session at 4.04 pm in Committee Room 2S2. Senator Childs took the Chair.

2. CONSIDERATION OF DRAFT REPORT: The Committee considered a draft report circulated by the Chair.

3. ADJOURNMENT: The Committee adjourned at 4.55 pm.

4. ATTENDANCE: Senators Childs (Chair), Bishop, Coates, O'Chee, and Walsh. An apology was received from Senator Short.

CERTIFIED CORRECT

Bruce Childs Chair

49

ESTIMATES COMMITTEE Ά '

MINUTES OF PROCEEDINGS

NO. 22

7 May 1991

THE SENATE

1. MEETING: The Committee met in private session at 6.34 pm in the Government Advisers' Waiting Area adjacent to the Senate Chamber. Senator Childs took the Chair.

2. ADOPTION OF MINUTES: The Committee adopted the minutes of meetings 17 to 20, held on 16, 19 and 23 April and 6 May

1991.

3. BROADCASTING AND REBROADCASTING OF COMMITTEE MEETINGS: The Committee resolved to authorise the recording, broadcasting and re-broadcasting of its public proceedings in accordance with the rules contained in the order of the Senate of 23 August 1990 concerning the broadcasting of committee

proceedings.

The Committee resolved that the preceding resolution apply with effect from 16 April 1991.

4. ADOPTION OF REPORT: The Committee considered a draft report circulated by the Chair. Senator Coates moved that the draft be adopted as a report of the Committee. The motion was adopted with senators Bishop, O'Chee and Short

indicating that they proposed to raise additional matters in a reservation to be attached to the report.

3. ADJOURNMENT: The Committee adjourned at 6.40 pm.

4. ATTENDANCE: Senators Childs (Chair), Bishop, Coates, O'Chee, and Short.

CERTIFIED CORRECT

Bruce Childs Chair

Estimates Com m ittee b

Re p o r t To Th e S e n a te

May 1991

53

E s t im a t e s C o m m it t e e b

REPORT TO THE SENATE

Estimates Committee B presents its report to the Senate.

INTRODUCTION

On 14 March 1991 the Senate referred to the Committee for examination and report -

. the Particulars of proposed additional expenditure for the service o f the year ending on 30 June 1991, . the Particulars of certain proposed additional expenditure in respect o f the year ending on 30 June 1991, and . the votes contained in the Schedule to A p p r o p r ia tio n A c t (N o . 3 ) 1 9 9 0 - 9 1 ,

relating to the Department o f Foreign Affairs and Trade and the Department of Defence.

The Committee met on 16 April and 1 May to examine these estimates and votes. The Committee considered the estimates utilising the departmental explanatory notes and received evidence from the Minister for Foreign Affairs and Trade (Senator Gareth Evans), the Minister for Defence (Senator Robert Ray) and officers o f the departments and authorities concerned.

This report includes the Committee’s Minutes o f Proceedings, a table o f contents to the Hansard reports and a list o f questions unanswered at the completion of the public hearings. The Hansard reports o f the evidence taken and additional information provided at the public hearings and in response to questions taken on notice during the Committee’s consideration

of the estimates will be tabled separately in the Senate.

The Committee expresses its appreciation for the assistance o f the Ministers and the officers of the departments and authorities who appeared before it. The Committee would also like to acknowledge the presence during the consideration o f the Department o f Defence of the Minister for Defence Science and Personnel (Mr Gordon Bilney) and the initial appearance

at an Estimates Committee o f the Secretary to the Department o f Foreign Affairs and Trade, Mr Richard Woolcott.

The Committee draws the attention o f the Senate to the following matters which arose during consideration o f the estimates. A complete list o f the matters raised by the Committee is attached to this report.

54

DEPARTMENT OF DEFENCE

The Gulf War

In an unusual procedure the Committee was asked to examine, in addition to the Particulars of proposed additional expenditure, the votes contained in A p p r o p r ia tio n A c t (N o . 3 ) 1 9 9 0 -9 1 . This Appropriation Act related primarily to the Gulf War and had already been passed by Parliament.

The Committee was informed that the additional costs for the Gulf War were a supplementation to existing appropriations, for example, fuel and other resources were used which would otherwise have been spent in training exercises or other port visits. A detailed breakdown o f the additional expenditure between each o f the services and over a three year period was provided to the Committee and is included as an attachment to this report. In

summary, the supplementation for 1990-91 is $68.882m, 1991-92 is $23.565m and 1992-93 is $3.910m, a total o f $96.357m.

A major proportion o f this additional expenditure was for Navy which acquired and fitted a variety o f equipments. The Committee was informed that Navy procured significant equipments from overseas, some o f which were part o f projected future acquisitions, and also used some equipments which were already in stock in Australia. These equipments installed or fitted included satellite communications, radar absorbing material, electro-optical surveillance systems, an optically-guided anti-air missile defence system, additional accommodation and damage control and firefighting equipment. For more detail on equipment, s e e H a n s a r d , 16 April 1991, pplO-12.

A result o f this equipment procurement has been a significant benefit to Navy. As the Minister indicated to the Committee the Navy received a higher priority than it otherwise may have been entitled to and will benefit equipment-wise for many years to come. The Minister also confirmed that these benefits will not have a detrimental effect on the Defence budget in the future as the costs were fully supplemented and will not be taken into account in future budget processes (H a n s a r d , 16 April 1991, p i4).

Sale o f Mirage Aircraft

A sum o f $3.769m is included in the additional estimates for costs associated with the sale of the Mirage aircraft to Pakistan. The Committee was advised that these costs covered the packing and transportation of the aircraft and aircraft spares, and the administrative costs such as travel, allowances, accommodation, rations and equipment for the Air Force personnel involved. The Committee was provided with a list o f items that were actually sold (s e e Hansard, 16 April 1991, pp72-72) and informed that the transfer of all assets to Pakistan had been completed. There only remains one outstanding contractual obligation - to provide technical assistance to the Parisian Air Force for starting up air operations with the Mirage. This will involve training PAF personnel in Australia to be undertaken at their expense.

55

Cockatoo Island Dockyard

The additional estimates also include the provision o f $3.853m for costs associated with the closure and future sale o f the Cockatoo Island dockyard. These costs have increased to $ 13m this financial year.

The Committee was informed that $8.903m of this amount was for redundancy payments as the work force has been reduced from approximately 1200 to 400 currently and will continue to be reduced until the completion o f the refit o f the HMAS Orion, which is expected by June.

Other costs include payment o f compensation to the Cockatoo Dockyard Company for the loss of profit on refit work that has been transferred to other yards. This figure is still the subject of negotiations and is expected to require expenditure in the 1991-92 budget. A consultancy is identifying the scope, nature and extent o f industrial contamination on the island and there

is provision for the removal or disposal of Commonwealth owned assets on the Island and general maintenance to keep basic facilities functioning during the wind-down period.

Revised presentation o f explanations o f variations

A change to the presentation o f the Defence Explanatory Notes was the inclusion of a table for each sub-program showing a multi-column analysis o f variations. These columns drew a distinction between variations resulting from price and exchange adjustments (amounts agreed with the Department o f finance for changes due to inflation and exchange effects),

variations which are the result o f transfers of funds, within the same appropriation, either between or within programs and variations which reflect ‘real’ changes in the level of activities or outcomes.

The Committee found this format o f information most useful and commends the Department for its continued efforts to improve the presentation o f information in its Explanatory Notes.

DEPARTMENT OF FO REIG N AFFAIRS AND TRADE

Management o f the Department

In recent years Estimates Committees, and others, have been critical o f aspects of the Department’s management and administration. The Secretary o f the Department, Mr Richard Woolcott, appearing before the Committee for the first time, outlined to the Committee in his opening comments the developments undertaken since 1989 to modernise the Department.

He informed the Committee that the Department has reorganised its former corporate management division and created a new systems and programs division in addition to a streamlined corporate management division. It has also launched a substantial management improvement program with the main elements being -

. the drawing up and publication o f the Department’s first corporate plan, . a commitment to improve the annual post program process,

56

. the reactivation and improvement o f a system o f post liaison visits to overseas posts to check on their effectiveness and to ensure they are fulfilling Australia’s national objectives, . the progressive devolution o f more responsibility to heads o f missions overseas and heads

o f divisions, branches and sections in Canberra, and . the institution o f a new system o f divisional evaluations to set divisional objectives and link them to performance and the objectives set for posts.

Mr Woolcott also indicated that the Department has -

. made major changes to its training program, . introduced an improved system o f performance appraisal and review for individual officers, . introduced a careful and regular budget monitoring process, and . sought to make a substantial improvement in the Department’s accounting practices, both

at home and abroad (s e e H a n s a r d , 1 May 1991, p87).

The committee was pleased to note these developments and hopes that they will result in the desired improvements to the Department’s performance in management and administration.

Mr Woolcott also referred to particular ongoing concerns of the Committee relating to prompt acquittal o f cash advances and the recovery o f related debt, which had been mentioned in previous reports by the Committee. The Committee was advised that outstanding debts had been reduced from 184 (totalling $329,495) in May 1990 to 19 (totalling $23,012) by 31 March 1991 and unacquitted advances had been reduced from 231 (totalling $402,200) to

16 (totalling $29,571) during the same period.

Ambassador to Ireland and the Holy See - M r Brian Burke

The Committee asked a number o f questions relating to Ambassador Burke’s terms and conditions o f appointment, termination payment and leave arrangements to appear before the royal commission.

The terms and conditions o f appointment for Ambassador Burke was tabled in the Senate by the Minister on 15 April 1991. The Committee was advised that the terms and conditions were standard ambassadorial terms and conditions, with provisions for political appointees being virtually identical to those applying to career appointees. Minor variations relate to matters such as amounts o f money specified for salary.

Whilst the terms and conditions contain an explicit provision for compensation in the event o f an involuntary termination they do not provide for the circumstances o f voluntary resignation. However, there is a provision which states that anything which the terms and conditions do not provide for is a matter for determination by the Minister. The decision to provide Ambassador Burice with a termination payment was made by the Minister acting on

advice that was initiated by the Department.

5 7

Mr Michael Costello, Deputy Secretary o f the Department, advised the Committee that prior to the decision being made "The Minister on two, perhaps three occasions, asked, ‘Are you sure that this is correct and proper advice? Are you sure o f the grounds for this?*. We said that we were." (H a n s a r d , 1 May 1991, plO l).

Mr Costello outlined to the Committee the Department’s reasoning for its advice. The Department had considered firstly, the presumption o f innocence that would apply to any ambassador in such circumstances and, secondly, the question o f the operational capability to carry out ambassadorial duties in Dublin whilst being able to devote time to the operation

of the royal commission.

The Department believed that a paradoxical situation would arise. If Ambassador Burke’s term was terminated by the Government in an environment in which the presumption of innocence had not been rebutted, there was an entitlement to a full termination payment. Yet if Ambassador Burke stood aside voluntarily in circumstances where the presumption of

innocence had in the Department’s view not been rebutted and which were considered to be in the best interests o f the Department, Ambassador Burke would be penalised by not getting a termination payment. In these circumstances the Department considered it appropriate to make a recommendation for payment to the Minister. For an elaboration of the Department’s

reasoning see H a n s a r d , 1 May 1991, pp.101-102.

The legality o f the decision has been supported by a legal advice by the Deputy Legal Adviser, Administrative and Domestic Law Group, a copy o f which is attached to the report.

The question of the advice provided by the Department in relation to Ambassador Burke’s return to Australia on leave with pay to prepare for the royal commission was also discussed. Mr Costello confirmed that "the Department advised the Minister that it considered that Mr Burke was entitled to special leave to return to Australia to prepare his case for and to attend

the royal commission hearings. W e did so after receiving a written advice from the Department o f Industrial Relations that special leave was an appropriate form o f leave to consider in the case o f people who may have to attend, participate in and prepare for royal commissions." (H a n s a r d , 1 May 1991, p i 13).

Mr Costello advised that "we recommended this because we assessed that the request (for special leave) was reasonable in the public interest and in the interests o f the Department" (H a n s a r d , 1 May 1991, p i 13). For an elaboration of these reasons s e e H a n s a r d , 1 May 1991,

p p ll3-114.

Income Tax Payments - Locally Engaged S ta f f

In 1990 the Committee discussed the issue o f the funding of Australian residents working overseas as locally engaged staff. The Committee was informed that in respect of the payment o f income tax the situation previously existed whereby the Department ‘selectively’ deducted PAYE tax and issued group certificates to Australian residents employed as locally

engaged staff. The Department admitted that "in the past in some posts -the practice varied around the world - we followed that practice and in others we did not." (H a n s a r d , 1 May 1991, ppl26-7.)

58

The Committee was advised that the Department has been working with the Australian Taxation Office and it has been determined that all Australian residents working for the Department as locally engaged staff should pay tax and that the Department will collect it at their posts. This decision is now being implemented. The Committee will monitor the

implementation o f this decision at future estimates hearings.

Changes to Explanatory Notes - AIDAB

During questioning under program element 5 2 . 2 relating to a UNFPA aid project to strengthen the technical capacity of the Centre for Population Studies in the Ministry o f Labour in Vietnam, the Committee was informed that the money defined in the Explanatory Notes as being for this particular project had subsequently been diverted to a different UNFPA project in Papua New Guinea and that AIDAB had been aware o f this funding change since late February (H a n s a r d , 1 May 1991, pl31).

The Committee regards this situation as unsatisfactory and advises AIDAB that when significant variations to the Explanatory Notes occur, replacement pages indicating these variations should be provided to the Committee in advance o f the public hearings.

The Committee notes in this regard that the Department o f Defence provided in advance of the hearings some replacement pages which identified minor typographical and computational errors.

GENERAL

Broadcasting and Rebroadcasting o f estimates committees’ proceedings

Prior to its hearings the Committee authorised the broadcasting o f its public proceedings within Parliament House. Representations were subsequently made by the four television networks requesting permission to rebroadcast the Committee’s proceedings in relation to the Department o f Foreign Affairs and Trade. The Committee agreed to extend its earlier

authorisation to allow rebroadcasting. The Committee notes that the broadcasting o f Estimates Committees’ proceedings commenced on a trial basis in September 1990. The Order o f the Senate o f 23 August 1990, agreed to following the recommendation o f the Procedure Committee, allows individual Committees to authorise broadcasting and determine conditions by which such recording and broadcasting may occur. In accordance with this

Order some Estimates Committees have authorised broadcasting with differing conditions applicable.

Estimates Committee B believes that notwithstanding the Order o f the Senate and to clarify the situation, a single authorisation outlining uniform conditions for broadcasting and rebroadcasting should apply to the public proceedings o f all Estimates Committees and recommends that this matter be further examined by the Procedure Committee.

59

RECOMMENDATIONS:

Estimates Committee B recommends:

(1) That the proposed expenditure, in accordance with the additional estimates referred to the Committee, be approved by the Senate.

(2) That the following matter be referred to the Procedure Committee for inquiry and report:

The need for a single authorisation and uniform set o f conditions to apply to all Estimates Committees for the broadcasting, recording and rebroadcasting o f their public proceedings.

(3) That all questions taken on notice, as recorded in the list attached to the report, be further examined by the Senate.

Senator B.R. Bums (Chairman)

/b'-f/liH'HEAjT I

60

'•Τΐν“·· l L· A p r J m l

TABLE A-3

OPERATION DAMASK ADDITIONAL c o st s

1990-91 Sm

Force Executive

CLAE 0.050

234-06 Other Equip & Stores 0.031

Total Forces Executive 0.081

Navy

230-01-01 PNF Salaries 9.830

230-01-04 Navy Reserve 0.171

230-01-07 Civil Salaries 0.350

CLAE 5.177

234-02 Minor Capital 17.810

234-03 Weapons etc. 1.653

234-04 Rations 0.970

234-05 Liquid Fuels 8.232

234-06 Other Equip & Stores 6.141 234-07 Repair & Overhaul 8.100

Total Navv 58.434

A rm y

230-01-02 PMF Salaries 0.245

CLAE 0.022

234-02 Minor Capital 0.328

234-03 Weapons etc. 234-06 Other Equip & Stores 1.676

Total Armv 2.271

Air Force

230-01-03 PAF Salaries 0.042

CLAE 0.170

234-05 Liquid Fuels 0.543

234-06 Other Equip & Stores 234-07 Repair & Overhaul

Total Air Force 0.755

Total Strategy and Intelligence 0.101

Acquisition & . Logistics

234-01 Major Capital 7.240

Total Acquisition & Logistics 7.240

TOTAL DEFENCE 68.882

1991-92 1992-93 1993-94 TOTAL Sm Sm Sm Sm

0.050 0.031

0.081

9.830 0.171 0.350 5.177

8.377 26.187

1.653 0.970 8.232

6.914 13.055

8.100

15.291 73.725

0.245 0.022 0.328

2.877 2.877

2.375 4.051

5252 7.523

2.114 0.268

3.910

0.042 0.170 0.543 6.024 0.268

2.382 3.910 7.047

0.101

0.640 7.880

0.640 7.880

23.565 3.910 96.357

SUBJECT

FOR ”Costeno ......... Demny Secretar

pg’T/RCHMEMT B

61

FOREIGN AFFAIRS AND TRADE

FILE No. 1490/5/114/1

DATE 1May 1991

TERMINATION PAYMENT FOR AUSTRALIA'S AMBASSADOR T0 IRELAND

I refer to yesterday's press report (CANBERRA TIMES,

30 April 1991, p. 1) in which the Shadow Attorney-Genera],

Mr Peacock, is quoted as saying, amongst other things, that “the (termination) payment is to be made without

lawful authority". He was referring to termination

payment arrangements agreed to by the Minister for

Foreign Affairs and Trade, Senator Evans.

2. For the reasons given below, I respectfully disagree

with the reported/iew of Mr Peacock.

3. On 9 March 1988, the Governor-Genera], Sir Ninian Stephen,

authorised the Minister of State for Foreign Affairs and

Trade to determine the terms and Consitions of the appointment

of Mr Burke as Ambassador to Ireland. On 20 July 1988,

the Acting Minister for Foreign Affairs and Trade, Mr Duffy,

approved certain terms and conditions for Mr Burke.

A copy of these is attached. They do not deal with the

particular situation in hand, namely, where Mr Burke

tendered his resignation as Ambassador. There is a

provision, however, deaIing with the termination of the

appointment by the Government (paragraph 2 (A)(ii), and a final provision in respect of certain matters not

covered in the terms and conditions (paragraph (N)).

4. In my view, it is clear that the Minister for

Foreign Affairs and Trade has authority to approve

a termination payment to Mr Burke upon his resignation,

whether under the residuary provision in paragraph (N)

or (even if that were not possible or it were inconsistent

to do so) under the general authority given him by

the Governor-Genera].

56m (J.G.Brown) Deputy Legal Adviser Administrative and Domestic Law Group

62

Μ *

THE HONOURABLE BRIAN THOMAS BURKE A.C.

( Jzxfnxoi ·£Îº>*\ tev o x s

"TLi fx> H cLocvi*ve/x"^ is ik n c {od& l ► « ftie. i)*wir{hec!s HdJcfiολαΙ X zvfor »vicUT i o n .

2. ( A) ( i i ) I f t h e Head o f M i s s i o n ' s a p p o i n t m e n t i s t e r m i n a t e d

by e i t h e r t h e G o v e r n o r - G e n e r a l o r by a c t i o n o f t h e

M i n i s t e r of S t a t e f o r F o r e i g n A f f a i r s and T r a d e

b e f o r e t h e e n d o f t h e a g r e e d f o u r y e a r t e r · , he

s h a l l r e c e i v e a n a m o u n t e q u i v a l e n t t o two mo n t h s

s a l a r y f o r e v e r y s i x m o n t h s r e m a i n i n g t o c o m p l e t e

t h e a p p o i n t m e n t .

IN) E x c e p t t o t h e e x t e n t t h a t t h e s e t e r ms and c o n d i t i o n s

o t h e r w i s e p r e s c r i b e , t h e r u l e s a p p l i c a b l e i n r e s p e c t

o f o f f i c e r s o f t h e P u b l i c S e r v i c e s h a l l a p p l y ,

u n l e s s o t h e r w i s e d e t e r m i n e d by t h e M i n i s t e r , a n d

wh e r e u n d e r t h o s e r u l e s a m a t t e r i s r e s e r v e d f o r

d e c i s i o n by t h e D e p a r t m e n t of I n d u s t r i a l R e l a t i o n s ,

t h e m a t t e r s h a l l i n r e s p e c t o f t h e Head of M i s s i o n

be r e s e r v e d f o r d e c i s i o n by t h e M i n i s t e r .

Reservations

65

**tgS38&e

PARLIAMENT OF AUSTRALIA THE SENATE

SENATOR THE H O N . PETER DURACK. Q.C.

DEPUTY LEADER O F TH E O PP O S IT IO N IN TH E SENATE

S H A D O W MINISTER FOR DEFENCE

PARLIAMENT HOUSE CANBERRA A C T . 2600 TELEPHONE (06) 277 3725 FAX (06) 277 3169

ST. MARTIN’S TOWER 44 ST. GEORGE'S TERRACE (GPO BOX B58) PERTH. W A 6000

TELEPHONE (09) 221 1277 FAX (09) 221 3350

Mr Elton Humphery Secretary-Estimates Committee B The Senate

Parliament House Canberra

Dear Mr Humphery,

By way of reservation, I wish to recommend the following topics for further examination by the Senate:

In Programme One, (Forces Executive)

Force Structure Review

In Programme Two, (Navy)

Gulf Deployment Two Ocean Navy policy Ship maintenance issues Commonwealth Marine Support Facility (Fremantle)

In Programme Five, (Strategy and Intelligence)

North West Cape communications facility

In Programme Six (Acquisitions and Logistics)

Inshore Minehunters Jindalee Australian Defence Industries Defence export policy

In addition, I wish to recommend that questions asked by me and taken on notice by the Department be subject to further

examination by the Senate.

Yours sincerely,

(PETER DURACK)

6 6

PARLIAMENT OF AUSTRALIA · THE SENATE

SEN A TO R ROBERT HILL

LEADER O F THE OPPOSITION IN THE SENATE

SH A D O W MINISTER FOR FOREIGN AFFAIRS

PARLIAMENT HOUSE CANBERRA. A C T . 2600 PH O N E (06) 277 3170 FACSIMILE (06) 277 3177

Mr Elton Humphrey

s i mai lay]

Secretary Estimates Committee B The Senate Parliament House

Dear Mr Humphrey,

I refer to the draft report of the Estimates Committee B which was circulated prior to consideration at the meeting scheduled for 7 May 1991 at 4:00 pm in SG 45.

There are several areas within the Foreign Affairs and Trade portfolio expenditure in relation to which I continue to have reservations and which I recommend should be examined further during consideration by Committee of the Whole. These matters are as follows:

The management of the Department and the question of criticism by the Auditor General regarding the role of evaluations in improved management. (This ties in with a number of related issues concerning allegations of mismanagement and poor departmental morale.)

The issue of continuing leaks from the department which are damaging Australia's national interests and are indicative of morale problems, system weaknesses or poor discipline.

The ex gratia termination payment approved by the Minister for the Ambassador to Ireland.

Activities by Mr Burke outside the scope of his duties as Ambassador to Ireland.

The proposed human rights visit to China.

Funding of APHEDA and related activities in Southern Africa and elsewhere.

Arrangements for personal contributions for private international phone calls from the Head of Mission

residence in Dublin.

Yours sincerely,

ROBERT HILL

SENATOR JOCELYN NEWMAN SENATOR FOR TASMANIA SHADOW MINISTER FOR VETERANS’ AFFAIRS SHADOW MINISTER FOR DEFENCE SCIENCE AND PERSONNEL

SHADOW MINISTER ASSISTING THE LEADER ON THE STATUS OF WOMEN

P A R L IA M E N T O F A U S T R A L I A · T H E S E N A T E

29 April 1991

Mr Elton Humphrey Secretary Estimates Committee B The Senate, Parliament House CANBERRA ACT 2600

Dear Mr Humphrey,

Please find herewith a reservation from myself, in c o n j u n c t i o n with Senator MacGibbon to the Committee Report o f E s t i m a t e s

Committee B to the Senate.

Yours sincerely,

------ _ 5 L ^

JOCELYN NEWMAN

11 ELPHIN ROAD. LA U N C E ST O N . TAS. 7250 TELEPH ON E (003) 341755 FACSIMILE (003) 341624

PARLIAMENT H O U SE. CANBERRA. A.C.T. 2600 (06) 2 7 7 3 6 6 0 (06) 2773449

68

RESERVATION BY SENATOR JOCELYN NEWMAN

Self-Emploved Reservists

In inquiring into the issue of the use of medical reservists in the Gulf crisis, it was apparent during the hearing that the conditions of service for such specialist members of the Reserve, medical or otherwise, was not a priority issue. Vice Admiral

Beaumont said, * I do not see it as a priority issue for

consideration. I would have thought that there is a certain patriotism in the Australian people, and if we are going to employ reserves in large numbers the that patriotic impulse and patriotism would be put to good effect in the defence of

Australia." A Defence Force that relies on volunteer reservists must be sure that when needed, specialists such as the medics, RAEME, electronics or communications personnel for example, are available. The failure to recognise and provide for the fixed business overheads of self employed personnel while they are carrying out active duty at the request of the Government is

serious. At a time when we are we are seeking to rely more

heavily on reserves we cannot risk prejudicing our operational readiness and capability.

Restrictive debate on Wrialev Report

Although the Minister told the Committee that " ... the last

thing we want to develop in the top echelon of the military are just simply puppets of Government. There is a degree of

intellectualism there that surprises me and I like them to exhibit it", he was responsible for a one-sided debate on this most important report. The Minister acknowledged that Mr Wrigley was encouraged to travel the country promoting and discussing his

report, a report which proposes major and far reaching changes to the structure of the Defence Force; yet at the same time the top echelons of the military were denied the opportunity to make any public statement or put forward any statement to the

Parliamentary Inquiry on the subject of how the Wrigley Report may affect Defence capability.

While it is traditional for Service Chiefs to avoid political debate in this country, Australia is not well served by the

absence of well-informed discussion on a matter of such national importance. The one-sided debate over the Wrigley Report was entirely due to Government direction and is to be deplored.

6 9

ί*«833«^

PARLIAMENT OF AUSTRALIA · THE SENATE

SENATOR JOCELYN NEWMAN SENATOR FOR TASMANIA SHADOW MINISTER FOR VETERANS AFFAIRS SHADOW MINISTER FOR DEFENCE SCIENCE AND PERSONNEL

SHADOW MINISTER ASSISTING THE LEADER ON THE STATUS OF WOMEN

7 May 1991

Mr E lton Humphrey Secretary Estim ates Com m ittee B The Senate, Parliam ent H ouse 2600

Dear Mr Humphrey,

I recommend that the follow ing m atters relating to the estim ates o f expenditure referred to the Committee be further examined by the Senate.

* Questions which were taken on notice at the hearings o f the Committee.

* W ritten answers to questions placed on notice.

* That raised in my R eservation to the Committee Report.

Yours sincerely,

JOCELYN NEWMAN

II ELPHIN ROAD. LAUNCESTON. TAB. 7250 TELEPHONE (003' 341755 FACSIMILE (003 · 341624

PARLIAMENT H O U S E . CANBERRA. A.C.T. 2 6 0 0 (063 2 7 7 3 6 6 0 (06 2773449

70

AUSTRALIAN SENATE CANBERRA. A.C.T.

7 May 1991

Mr E Humphery, Secretary, Estimates Committee B, Parliament Elouse, C A N B E R R A ACT 2600

Dear Mr Humphery,

ESTIM ATES COMMITTEE B R EPO R T TO T H E SENATE

R E SE R V A T IO N B Y SEN A TO R H A R R A D IN E

By way o f reservation I recommend that the following matters relating to the estimates of expenditure referred to the Com m ittee be further examined by the Senate.

Those subjects relating to questions which were not answered at the hearings of the Committee, or for which answers were to be subsequently provided; written answers to questions; matters in respect o f which further information was to be provided; including the following specific subject areas relating to proposed expenditure by the Departm ent o f Foreign Affairs and Trade:

3.2 Commonwealth Secretariat 3.2 Commonwealth Foundation 5.2.2 U nited Nations Developm ent Organisations 5.2.3 D evelopm ent Education and Public Information

Yours sincerely,

(Senator Brian Harradine)

P A R L IA M E N T O F A U S T R A L I A ■ T H E S E N A T E

SENATOR GRANT TAMBLING SEN ATOR FO R TH E N O R T H E R N TERRITORY

S H A D O W MINISTER F O R REG IO N A L DEVELOPMENT, EXTERNAL TERRITORIES A N D N O R T H E R N AUSTRALIA

DRTHERN TERRITORY COUNTRY LIBERAL PARTY

DARWIN CFF'CE MITCHELL PLAZA. DARWIN TELEPHONE (039 = 3567 FACSIMILE (039’ 5 3022

POSTALADDRESS CANBERRA OFFICE DEPUTY l E '.DU

GPOBOXAI96 PARLIAMENT HOUSE C K ’ : · . ; · ,

DARWIN, NT 0801 TELEPHONE (061 277 3436 NATlONAl PAR’

AUSTRALIA FACSIMILE ;06) 277 3704 OF a 'STRAl a

Secretary Estimates Committee B Parliament House CANBERRA ACT 2600

RESERVATION BY SENATOR GRANT TAMBLING

I recommend that the Senate further examine the following matters relating to the questions on notice put by me to the:

Department of Defence - Program 5: Strategy and Intelligence and Department of Foreign Affairs - Program 3.2: International Political, Social and Legal Regimes

The high commitment of funds for the surveillance, apprehension, prosecution and repatriation of illegal fishermen found in Australian waters by the departments of Primary Industry and Energy, Immigration, Defence, Industry Technology and Commerce

(Australian Customs Service), Foreign Affairs and Trade, Attorney General's and the Aboriginal and Torres Strait Island Commission, causes me concern and I am of the opinion that a more concerted policy approach should be adopted by the government.

erritory

7 May 1991

Minutes Of Proceedings

7 5

M INUTES OF PROCEEDINGS

NO. 8

Tuesday, 9 April 1991

THE SENATE

ESTIM ATES COM M ITTEE B

1. M EETING: The Committee met in private session at 4.30 p.m. in meeting room SG.45.

2. RESOLUTIONS: The Secretary reported resolutions o f the Senate dated 21 February and 14 March 1991 relating to changes in membership o f the committee and the reference o f particulars o f proposed additional expenditure 1990-91.

3. ELECTION OF CHAIRM AN: The Secretary called for nominations for Chairman. Senator Bums was nominated by Senator Schacht. There being no further nominations, Senator Bums was declared elected and thereupon took the Chair.

4. CONSIDERATION OF ESTIMATES: The Committee agreed to consider the additional estimates in the following order:

Tuesday, 16 April - Defence Wednesday, 17 April - Defence (if required) Wednesday, 1 May - Foreign Affairs and Trade

5. TELEVISING OF PROCEEDINGS: On the motion o f the Chairman it was agreed that, if required, live television broadcasting o f the Committee’s public proceedings within Parliament House by the sound and vision unit be authorised.

6. PROCEDURES FO R HEARINGS: The Committee discussed the provision of questions on notice to departments prior to the public hearings and the possibility of requesting specific witnesses.

7. ADJOURNM ENT: The Committee adjourned at 4.40 p.m.

8. ATTENDANCE: Senators Bums (Chairman), Devereux, Newman and Schacht. Apologies were received from Senators Durack, Hill and MacGibbon.

CONFIRMED:

Senator B.R. Bums (Chairman)

76

M INUTES OF PROCEEDINGS

NO. 9

Tuesday, 16 April 1991

THE SENATE

ESTIM ATES COMMITTEE B

1. PUBLIC M EETING: The Committee met in public session at 3.36 p.m. in Committee Room 2S1. Senator Bums took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1990-91 AND VOTES CONTAINED IN APPROPRIATION ACT (NO. 3) 1990-91 - DEPARTMENT O F DEFENCE: In attendance: Senator Robert Ray, Minister for Defence, accompanied by the following officers:

Department of Defence

Vice Admiral A.L. Beaumont Brigadier D.L.H. Buring

Rear Admiral R.G. Taylor

Major General J.M. Sanderson

Air Vice-Marshal M.D. Miller

Cdre C.J. Littleton

Brigadier A.S. D ’Hage

Mr K.E. Dean

Mr L. Milkovits

Mr P. Skinner

Rear Admiral R.A.K. Walls Mr G.J. Hansen

Brigadier Bryant

Brigadier I.G.A. Maclnnis

Vice Chief o f Defence Force A/Assistant Chief o f the Defence Force Personnel Assistant Chief o f the Defence Force

Operations Assistant Chief o f the Defence Force Development Surgeon General Australian Defence Force Director General

Natural Disasters Organisation Director General Public Information Director Budget and Financial Services, ADFA General Manager Finance and Administration, Defence

Housing Authority Assistant Secretary Military Superannuation Benefit

Scheme Implementation Team Deputy Chief o f Naval Staff Assistant Secretary Resources Planning, Navy Director-General Defence Force Recruiting Director General

Coordination and Organisation, Army

77

- 2 -

Mr M.F. Taylor

Air Vice-Marshal T.W. O ’Brien Air Commodore D. Riding Mr K. Moore

Mr R.N. McLeod

Mr A.G. Thompson

Mr F.R. Harvey Mr T. Dawes

Mr A.S. Podger

Mr P. Terrill

Air Vice-Marshal B.J. Graf

Major General P.M. Jeffery

Rear Admiral A.L. Hunt

Mr R.K. Thomas

Mr M.H. Ives

Mr D.D. Wood

Air Commodore M. Brennan

Mr R. Corey

Mr M. Welch

Mr P. Liddicoat

Mr P. Dibb

Mr M. Brady

Dr R.G. Brabin-Smith

Mr S. Allison Mr P. Lush

Assistant Secretary Resources Planning, Army Acting Chief of the Air Staff Acting Deputy Chief o f the Air Staff

Assistant Secretary Resources Planning, Air Force Deputy Secretary Budget and Management First Assistant Secretary

Human Resources and Management Division Inspector General A/Assistant Secretary Productivity and Manpower Deputy Secretary

Acquisition and Logistics Principal Adviser Logistics Policy Assistant Chief o f the Air Staff -

Material Assistant Chief of the General Staff - Material Assistant Chief o f the Naval Staff -

Material First Assistant Secretary Capital Equipment Program First Assistant Secretary Facilities and Property Division First Assistant Secretary

Industry Policy and Operations A/First Assistant Secretary Project Development and Communications Principal Advisor

Contracting Assistant Secretary Exports and International Programs Assistant Secretary

Material Policy Deputy Secretary Strategic and Intelligence First Assistant Secretary Force Development and Analysis

Division First Assistant Secretary International Policy Division A/Chief Defence Scientist

Assistant Secretary Science Corporate Management

78

- 3 -

Mr G.F. Jones

Dr G. Ashton Assistant Secretary

Development Projects First Assistant Secretary Resources and Financial Programs

Mr R. Irvine

Mr R.B. Anderson

Mr R. Tonkin

Division Assistant Secretary Resources Policy and Programs Director Program Evaluation and Analysis Assistant Director Program Evaluation and Analysis

Department of Finance

Mr G.C. Van Dijk

Mr S. Salale Chief Finance Officer

Defence Estimates Section Senior Finance Officer Defence Estimates Section

The Chairman called on the following programs for consideration by the Committee. The expenditures proposed for these programs are contained in the particulars of proposed additional expenditure documents and the Schedule to Appropriation Act (No. 3) 1990-91:

The Committee received a table outlining additional costs for operation DAMASK.

The Committee concluded its consideration o f the proposed additional expenditure for the Department o f Defence, subject to undertakings to provide additional information to the Committee.

3. ADJOURNM ENT: The Committee adjourned at 11.22 p.m.

4. ATTENDANCE: Senator Bums (Chairman), Senators Devereux, Durack, MacGibbon, Newman and Schacht.

Senators Herron, Tambling, Teague and Vallentine also attended.

CONFIRMED:

Program 1 - Forces Executive Program 2 - Navy Program 3 - Army Program 4 - Airforce

Program 5 - Strategic and Intelligence Program 6 - Acquisition and Logistics Program 7 - Budget and Management Program 8 - Science and Technology

Senator B.R. Bums ( Chairman )

79

MINUTES OF PROCEEDINGS

NO. 10

WEDNESDAY, 1 MAY 1991

THE SENATE

ESTIM ATES COM M ITTEE B

1. PUBLIC MEETING: The Committee met in public session at 10.08 a.m. in Committee Room 2S3. Senator Bums took the Chair.

Senator Hill raised the matter of the Committee’s public proceedings being recorded and rebroadcast by the media following representations made by the four television networks. The Chairman ruled that the matter should be discussed in a private meeting and suspended the public hearing.

2. PRIVATE MEETING: The Committee met in private session at 10.12 a.m. in Committee Room 2S2 to consider the matter raised by Senator Hill.

The Chairman noted that the Committee had resolved on 9 April 1991 that live television broadcasting o f the Committee’s public proceedings should be restricted to within Parliament House.

After discussion the Committee agreed that the resolution o f 9 April 1991 should be extended to authorise the recording, broadcasting and rebroadcasting of its public proceedings in accordance with the Order o f the Senate o f 23 August 1990 relating to the broadcasting o f committee proceedings and the conditions governing the

broadcasting o f excerpts o f Senate proceedings by television stations.

The Committee agreed that the question of televising and rebroadcasting Estimates Committees’ proceedings should be referred to the Procedure Committee in order to reach a decision that would be consistent for all Estimates Committees.

The private meeting adjourned at 10.22 a.m.

3. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1990-91 - DEPARTMENT OF FOREIGN AFFAIRS AND TRADE: In attendance: Senator Gareth Evans, Minister for Foreign Affairs and Trade, accompanied by the following officers:

Department of Foreign Affairs and Trade

Mr R A Woolcott AO Mr M J Costello

Secretary Deputy Secretary

80

- 2 -

Mr G J Forrester

Mr M W Hughes

Ms P A Wensley

Mr D J Kingsmill

Mr R M Peek

Mr I H Cousins

Ms P A Richards

First Assistant Secretary Corporate Management Division First Assistant Secretary Systems Program and Consular Division

A/First Assistant Secretary International Organisation and Legal Division Assistant Secretary Protocol Assistant Secretary Economic Organisations Branch

Assistant Secretary Nuclear Policy Branch A/Director Budget and Resources Section

Australian International Development Assistance Bureau

Mr E Huning

Mr R Casson

Mr E Ingevics

Mr R Stensholt

Dr J Ware

Mr M Proctor

Department of Finance

Mr E J Williams Ms R Macainsh Mr T Pyne

Assistant Director General Financial and Resource Management Branch Assistant Director General International Organisations and

Programs Branch Assistant Director General Community Emergency and Refugee Programs Branch Assistant Director General Appraisal, Evaluation and Sectoral

Studies Branch Assistant Director General Asia, Africa and Training Co­

ordination Branch Director Business Cooperation Section

Chief Finance Officer Senior Finance Officer Senior Finance Officer

The Committee resumed its meeting in public session at 10.23 a.m.

81

- 3 -

The Chairman called on the following programs for consideration by the Committee. The expenditures proposed for these programs are contained in the particulars of proposed additional expenditure documents.

Program 2 - Trade Relations and Economic Issues Program 3 - Global Issues Program 5 - Aid Program 6 - Corporate and Public Services

The Committee received the following documents:

. Replacement page for Explanatory Notes. . Department o f Foreign Affairs and Trade, Corporate Management Division. Outcomes June 1990 - 31 March 1991 outlook 1 April - 31 December 1991. . Leak investigations - current status report as at 29.4.91.

. Security in the department - DFAT administrative circular, 29 April 1991. . List o f alleged 1991 leaks referred to by Senator Hill. . Termination payment for Australia’s Ambassador to Ireland and the Holy See, opinion by Deputy Legal Adviser, 1 May 1991. . Delegation to visit China to discuss human rights, news release by Minister for

Foreign Affairs and Trade, 25 April 1991. . The Commonwealth Foundation: The priorities in the 90s, memorandum by the Director of the Commonwealth Foundation. • . Commonwealth Foundation, background paper.

. Commonwealth Foundation, list o f grant awards involving Australia, January 1990 - March 1991. . Telephone costs - minute comparing costs for Madrid, Copenhagen and Dublin, 1 May 1991 (subsequently revised 2 May 1991).

The Committee concluded its consideration o f the proposed additional expenditure for the Department o f Foreign Affairs and Trade, subject to undertakings to provide additional information to the Committee.

4. ADJOURNM ENT: The Committee adjourned at 4.19 p.m.

5. ATTENDANCE: Senator Bums (C h a ir m a n ), Senators Devereux, Hill, MacGibbon and SchachL An apology was received from Senator Newman.

Senators Harradine and Kemp also attended.

CONFIRMED:

7

Senator B.R. Bums (Chairman)

82

M INUTES OF PROCEEDINGS

NO. 11

TUESDAY, 7 M AY 1991

THE SENATE

ESTIMATES COM M ITTEE B

1. M EETING: The Committee met in private session at 4.02 p.m. in meeting room SG.45. Senator Bums took the Chair.

2. CONFIRM ATION OF MINUTES: The Minutes of meetings held on 9 , 1 6 April and 1 May 1991 (Nos 8, 9 and 10) were confirmed.

3. DRAFT REPORT: The Committee resolved that the Chairman’s draft report be adopted as the report of the Committee, subject to the inclusion o f reservations.

4. ADJOURNM ENT: The Committee adjourned at 4.12 p.m.

5. ATTENDANCE: Senator Bums (Chairman), Senators Devereux, MacGibbon and Newman.

Apologies were received from Senators Durack, Hill and Schacht.

CERTIFIED CORRECT:

"7 /

Ί rv '

Senator B.R. Bums (Chairman)

Table Of Contents For

Han sard Of Public Hearings

Tuesday, 16 April 1991

Department of Defence

Wednesday, 1 May 1991

Department of Foreign Affairs and Trade

85

E s t i m a t e s C o m m i t t e e B

Issues raised during Committee hearings held on 16 April and 1 May 1991. (page references, Hansard, Estimates Committee B)

Page No.

DEPARTMENT OF DEFENCE -1 6 APRIL

GENERAL

Gulf War

PROGRAM 1: FORCES EXECUTIVE

1.1 Strategic Operations and Plans Second Wrigley Report

1.2 Military Strategy and Force Development Force structure review Public comment by senior officers Service professions

SMPP

1.3 Personnel War service loan entitlement Special duties allowance Educational allowance

Port Wakefield allowance Disturbance allowance Recruitment - Restrictions

Assessment Overseas - civilian engineers Domestic Performance based pay Retention Training guarantee levy Ready reserve Military compensation scheme

1.4 Health Policy and Services Public health research program Random drug testing Anti-drug education programme

AIDS education programme Medical reservist compensation

4-5, 9-15, 28-29, 30-31, 41-42, 60, 74

5

5- 8, 33-34 6-8 9 9

15- 16

16

16- 17

17 17

17 18

19-21 21-22 22 22-24

24

24-25 25

25

25- 26

26 26

26- 28

86

1 .6 N a tu r a l D i s a s t e r s a n d C i v i l D e f e n c e

Disaster legislation and procedure

1 .7 P u b l ic I n fo r m a tio n

Staff increase Press release clearance

1 .9 D e f e n c e H o u s in g

Tindal repairs and maintenance 2nd Cavalry Regiment

PROGRAM 2: NAVY

2 .1 C o m b a t F o r c e s (M a r i t i m e O p e r a tio n s )

Refit o f submarines Weaponry removal Collins class submarines Submarine manpower structure Customs duty payments

Closure of Cockatoo Garden Island facility Fremantle facility Cockbum Sound contract

Federal-State contractual arrangements Maritime strategy course

PROGRAM 3: ARMY

RBS70’S - W e s tr a lia and S u c c e s s NORCOM reporting arrangements Training days Reservist training

Attendance allowance Ethiopian survey

3 .1 C o m b a t F o r c e s

Disposal o f Chinooks Black Hawks availability Seahawk availability Engineering services Black Hawks - accessory tanks

3 .3 B a s e L o g is tic s

Fresh food: ration pack ratio Ration pack usage Program management budgeting Brisbane farewell

Infantry-tank cooperation training Non-collection of kit issue Clothing quality control Fire resistant clothing

29-30

30

31-32

32-33 33

34-35, 37-38 34-35, 36 35, 69 36

36

37, 73-74 38-39 39 40 40-41

42

42

42- 43

43- 44

44

44- 45

45

45- 46

46- 47

47 48 48

48

48- 49

49 49 49

49- 50

50

50- 51

87

3.5 Support LAV25 armoured fighting vehicles 51-53

Spare parts - departmental policy 53-55

PROGRAM 4: AIR FORCE

Coastwatch surveillance 55-58

42 Executive Removal and storage charges 58

4.3 Logistics Tindal fuel storage 59

Darwin fuel storage 60

PROGRAM 5: STRATEGY AND INTELLIGENCE

Audit 60

North West Cape 51,61

5.4 Defence Co-operation Pacific Patrol Boat 61

PNG helicopter support 61

Export procedures - ex-ADF equipment 61-62

PROGRAM 6: ACQUISITION AND LOGISTICS

6.1 Major Capital Equipment Over-the-horizon radar programs 62-63

AEW and C aircraft 63

Jindalee - tender arrangements 64

Anzac ships - 127mm gun 64-65, 69

Inshore Minehunter project 65-67

Re-equipment policy 67-68

Tomago facility 68

Services Manpower and Pay Project 68-69

Small Arms Replacement Project 69

Avionics Update 70

W estra lia lease 70-71

Mirage sale to Pakistan 58, 71-73

6.2 Logistics Maribymong closure 74-76

ADI 76-77

Review of defence export guidelines 77-78

6.4 Facilities Environmental consultancies 78

Satellite communications facility (Kojarena) 78

88

PROGRAM 7: BUDGET AND MANAGEMENT

7 J Finance Underpayments to World War servicemen 78-79, 80

Fedorczenko legacy fund 79

Post-separation employment guidelines 79-80

Fringe Benefit Tax liability 80

7.4 Personnel CIV1LPRISM 81

PROGRAM 8: SCIENCE AND TECHNOLOGY

DSTO 81-82

8.3 Materials Research Air independent propulsion project 82

8.4 Surveillance Research Staff wastage levels 82-83

8.5 Weapons Systems Research Cluster bombs 83

Woomera Instrumented Range 83-84

DEPARTMENT OF FOREIGN AFFAIRS AND TRADE -1 MAY

Rebroadcasting of today’s hearing 86

Departmental management issues 86-87

Outstanding advances and uncollected debts 87

Auditor-General’s efficiency evaluation 88-89

Departmental evaluation of programs 89

Evaluation of programs by independent consultants 89-90

Allegations of malpractice and corruption 90-92

Leaks of confidential and secret cables 92-96

Transfer of information between diplomatic posts 96-97

Departmental appointments and promotions 97-100

Terms and conditions governing political appointments to diplomatic posts 102-103

Mr Brian Burke -Termination payment 100-104

Comparison of salary and allowances with predecessor as Ambassador 104-105

Continuance in office as Ambassador 105-106

Terms and conditions as Ambassador 106-107

Performance of duties as Ambassador 109-113

89

Mr Brian Burke contd -Special leave arrangements to appear before Royal Commission 113-114

Tenure of office during the Royal Commission 114

Future special leave arrangements 114-115

Media publicity and effects on performance as Ambassador 115

Possible alternative leave arrangements until conclusion of the Royal Commission 116

Telephone usage by Mr Brian Burke as Ambassador to Dublin and the Holy See 138-140

Usage of the diplomatic communication network between Ireland and Australia 107

Diplomatic mail traffic: Dublin; Madrid and Copenhagen 107-108

Comparison of telephone usage between Australian posts in Dublin, Madrid and Copenhagen 108-109

Departmental evaluation plan 116-117

Proposed human rights visit to China 117-121

Human rights abuses in China 121-122

Arrest and imprisonment of religious leaders in China since July 1989 122

Human rights situation in China 122-124

Proposed human rights delegation to China 124-125

PROGRAM 2: TRADE RELATIONS AND ECONOMIC ISSUES

Social security payments for locally engaged staff 125-126

Salary payments for locally engaged staff 126

Payment of tax by Australian residents employed overseas 126-127

PROGRAM 3: GLOBAL ISSUES

UNDOF 127

Commonwealth secretariat -Drug abuse unit 127

Review of functions and funding 127-128

Commonwealth Foundation 128-130

PROGRAM 5: AID

AIDAB program in Pakistan 130

AIDAB/UNFPA program in Papua New Guinea 130-131

AIDAB environmental program for South East Asia and the South Pacific 131

AIDAB/UNFPA project: Vietnamese Ministry of Labour’s Centre for Population Studies 131

AIDAB/UNFPA project in Papua New Guinea 132

South East Asia programs 132-133

IMF initiative for Vietnam 133

Withdrawal of spouses of Australian diplomatic staff during the Gulf War 133-134

90

IMF in Vietnam 134

Trade with and aid to Vietnam 134

NGO -Funding disbursements 134-135

Projects and human rights 135

AIDAB/C DC and funding to non-government aid bodies 135

CDC and funding to APHEDA 135

APHEDA -Funding and programs 135-136

Grant for development education 136

Grant and management fee 136

Grants for scholarships 136

Awarding of scholarships 136

Grant for on-the-job training in Australia 136-137

Grant for management training 137

PNG Secondary Students Scheme 137

Appointment and qualifications of officers under the PNG Secondary Students Scheme 137

Functions of AIDAB officer in Pretoria 137

List Of Questions

Unanswered At The Completion

Of The Public Hearings

E s t i m a t e s C o m m i t t e e b

List of questions on notice from Committee hearings held on 16 April and 1 May 1991 (u p d a te d to 2 8 M a y 1 9 9 1 )

DATE TO DEPT/HANSARD PROVIDED TO

SENATOR PAGE NO. SUBJECT DATE RECEIVED SENATOR

DEPARTMENT OF DEFENCE

Tambling Tambling Tambling Tambling

Tambling

Newman Newman Newman Newman

Newman Newman Newman Newman

Newman Newman Newman Newman

28-3-91 28-3-91 28-3-91 28-3-91

28-3-91

16-4-9 l/p.3 16-4-91/p.3 16-4-91/p.3 16-4-9 l/p.3

16-4-91/p.3 16-4-9 l/p.4 16-4-9 l/p.3 16-4-9 l/p.3

16-4-91/p.3 16-4-9 l/p.3 16-4-9 l/p.4 16-4-91/p. 18

Tindal - fuel storage Tindal - defence housing 2nd Cavalry Regiment - housing Mosquito control in NT

Dlegal fishing boats and refugee arrivals in northern waters Recruitment advertising expenditure Officer and other rank shortfall

Allowance review Private rental by ADF members Vacant DHA owned houses 23-25 Malvina Street, Ryde

Various natural disasters Human Resources Public Servants Departmental committees Expenditure on certain items

Compensation and legal expenses Recruitment costings

16-4-91 16-4-91 16-4-91 16-4-91

16-4-91 7-5-91 7-5-91 7-5-91

7-5-91 7-5-91 7-5-91 7-5-91

7-5-91 7-5-91 Minister’s response 7-5-91

7-5-91

16-4-91 16-4-91 16-4-91 16-4-91

16-4-91 7-5-91 7-5-91 7-5-91

7-5-91 7-5-91 7-5-91 7-5-91

7-5-91 7-5-91 Hansard 16-4-91/p.60 7-5-91

7-5-91

DATE TO DEPT/HANSARD PROVIDED TO

SENATOR PAGE NO. SUBJEC T DATE REC EIVED SENATOR

Newman 16-4-91/p.24 Separation rates 7-5-91

Tambling 16-4-9 l/p.33 Airconditioning repairs and

maintenance at Tindal 7-5-91

Tambling 16-4-9 l/p.33 Variations to contract and cost

estimates for housing at Katherine 7-5-91

Tambling 16-4-9 l/p.33 Progress of housing project at 2nd

Cavalry Regiment 7-5-91

Durack 16-4-9 l/p.36 Oberon operational availability 7-5-91

Durack 16-4-9 l/p.36 Removal of weapons system 7-5-91

Durack 16-4-91/p.38 Onslow refit - tender price 7-5-91

Durack 16-4-91/p.38 Onslow refit - emergent work

allowance 7-5-91

Durack 16-4-9 l/p.40 Access to Cockbum Sound by

contractors 7-5-91

Newman 16-4-9 l/p.42 Australian College of Maritime

Studies 7-5-91

MacGibbon 16-4-9 l/p.42 Number of RBS70 crew 7-5-91

Newman 16-4-91/p.44 Personnel training without pay 7-5-91

Newman 16-4-9 l/p.45 Ethiopian survey 7-5-91

MacGibbon 16-4-9 l/p.46 Serviceable Black Hawks 7-5-91

MacGibbon 16-4-9 l/p.48 Black Hawks - accessory tanks 7-5-91

Newman 16-4-9 l/p.48 Ration pack usage 7-5-91

7-5-91

7-5-91

7-5-91

7-5-91 7-5-91 7-5-91 7-5-91

7-5-91

7-5-91

7-5-91 7-5-91 7-5-91 7-5-91 7-5-91 7-5-91 7-5-91

DATE TO DEPT/HANSARD PROVIDED TO

SENATOR PAGE NO. SUBJEC T DATE REC EIVED SENATOR

Newman 16-4-91/p.49 IDiv Commander farewell -

Brisbane 7-5-91

Newman 16-4-9 l/p.49 Non-collection of kit issued to

reservists 7-5-91

Newman 16-4-91/p.50 Undertaking by reservists to return

kits 7-5-91

Tambling 16-4-91/p.55 Coastwatch - P3 Orion flying hours 7-5-91

Tambling 16-4-91/p.56 Coastwatch - full surveillance,

apprehension and prosecution 7-5-91

Tambling 16-4-9 l/p.57 Average number of days patrol

boats spend on surveillance in northern Australia 7-5-91

Tambling 16-4-91/p.59 Tindal - Stage 3 financial program 7-5-91

Tambling 16-4-9 l/p.59 Tindal - Progress of contracted

facilities 7-5-91

MacGibbon 16-4-9 l/p.67 Inshore Minehunter project - trials

commencement

Vallentine 16-4-9 l/p.69 Annual production of 5.56mm

ammunition (each year since 1982 & 1983) 7-5-91

Vallentine 16-4-9 l/p.69 Production of 7.62mm ammunition 7-5-91

MacGibbon 16-4-91/p.70 W estra lia cost offset 7-5-91

MacGibbon 16-4-9 l/p.71 W estra lia lease price, expenditure

to date and forecast expenditure 7-5-91

7-5-91

7-5-91

7-5-91 7-5-91

7-5-91

7-5-91 7-5-91

7-5-91

7-5-91 7-5-91 7-5-91

7-5-91

SENATOR

DATE TO DEPT/HANSARD PAGE NO. SUBJECT DATE RECEIVED

PROVIDED TO SENATOR

MacGibbon 16-4-9 l/p.71 Mirage sale - spare engines 7-5-91

MacGibbon 16-4-91/p.72 Mirage sale - spare cannons 7-5-91

MacGibbon 16-4-9 l/p.72 Mirage sale - Pakistan end user

requirements 7-5-91

Vallentine 16-4-9 l/p.74 Acquisition and Cross Servicing

Agreement 7-5-91

Vallentine 16-4-91/p.76 Subsidies to ADI 7-5-91

Vallentine 16-4-9 l/p.78 Kojarena satellite intercept station -

timing and cost 7-5-91

Newman 16-4-9 l/p.79 Fedorczenko legacy fund 7-5-91

Vallentine 16-4-9 l/p.82 Air independent propulsion project -

financial year expenditure 7-5-91

Vallentine 16-4-9 l/p.83 Cluster bombs 7-5-91

Vallentine 16-4-91/p.83 Woomera Instrumented Range 7-5-91

Newman 16-4-91 DFRB/MSBS transfer 7-5-91

Newman 16-4-91 DFRDB surplus distribution 7-5-91

Newman 16-4-91 Secondment to Parliamentary

Library 7-5-91

Newman 16-4-91 Operational Readiness Report 7-5-91

Newman 22-4-91 Expenditure on selected items 7-5-91

27-5-91

7-5-91 7-5-91

7-5-91

7-5-91 7-5-91

7-5-91 7-5-91

7-5-91 7-5-91 7-5-91 7-5-91 7-5-91

7-5-91 7-5-91 7-5-91 28-5-91

SENATOR

DATE TO DEPT/HANSARD PAGE NO. SUBJECT DATE RECEIVED

PROVIDED TO SENATOR

DEPARTMENT OF FOREIGN AFFAIRS AND TRADE

Tambling 28-3-91 Dlegal fishing boats and refugee

arrivals in northern waters 29-4-91

Tambling 28-3-91 Automated telephone services in

Embassies

29-4-91

MacGibbon l-5-91/p.l04 Mr Burke/predecessor’s salary and

allowances

9-5-91

Hill l-5-91/pp.l08-109 Mr Burke - telephone usage and

costs provided at hearing

Harradine 1-5-91/p. 116 DIFF criteria - review 14-5-91

Harradine l-5-91/p.l22 Arrest of Chinese religious leaders 9-5-91

MacGibbon 1-5-91/p. 126 LES and social security payments 10-5-91

MacGibbon 1-5-91/p. 127 Commonwealth Secretariat drug

abuse unit 9-5-91

Harradine 1-5-91/p. 128 Commonwealth Secretariat funding 9-5-91

Harradine 1-5-91/pp. 128-129 Commonwealth Foundation

expenditure provided at hearing

Harradine l-5-91/p.l31 S.E. Asia - S. Pacific environmental

program 8-5-91

Harradine 1-5-91/p. 131 Women in Pakistan assistance

program

Harradine l-5-91/p.l31 PNG assistance program 8-5-91

MacGibbon 1-5-91/p. 134 Diplomatic spouses and the Gulf

War 9-5-91

29-4-91

29-4-91

9-5-91

Hansard 1-5-91/p. 130 14-5-91 9-5-91 13-5-91

9-5-91 9-5-91

Hansard l-5-91/p,129

8-5-91

8- 5-91

9- 5-91

r

DATE TO DEPT/HANSARD PROVIDED TO

SENATOR PAGE NO. SUBJEC T DATE REC EIVED SENATOR

Harradine 1-5-91/p. 134-135 NGO development education

expenditure 8-5-91

Harradine 1-5-91/p. 135 NGO projects/human rights and the

Philippines 8-5-91

Kemp 1-5-91/p. 136 APHEDA grants and management

fees 14-5-91

Kemp l-5-91/p,136 APHEDA grants for scholarships 8-5-91

Kemp 1-5-91/pp. 136-137 APHEDA grants for on-the-job

training 8-5-91

Kemp 1-5-91/p.137 APHEDA grant for management

training 8-5-91

Schacht 1-5-91/p. 137 PNG Secondary Students

Scheme/student numbers 8-5-91

Schacht 1-5-91/p. 137 PNG Secondary Students

Scheme/officers 8-5-91

Schacht 1-5-91/p. 137 PNG Secondary Students

Scheme/officers’ qualifications 8-5-91

Harradine 3-5-91 EAP program - transfer of funds 8-5-91

Harradine 3-5-91 EAP funding of projects using

transferred funds 8-5-91

Harradine 3-5-91 EAP funds for population

stabilisation 8-5-91

Harradine 3-5-91 UNFPA PNG project funding 8-5-91

Harradine 3-5-91 PNG project details 8-5-91

Harradine 3-5-91 PNG project - population growth 8-5-91

8-5-91

8-5-91

14-5-91 8-5-91

8-5-91

8-5-91

8-5-91

8-5-91

8-5-91 8-5-91

8-5-91

8-5-91 8-5-91 8-5-91 8-5-91

DATE TO DEPT/HANSARD PROVIDED TO

SENATOR PAGE NO. SUBJECT DATE REC EIVED SENATOR

Harradine 3-5-91 PNG project field evaluation 8-5-91

14-5-91

Harradine 3-5-91 PNG project desk evaluation 8-5-91

14-5-91

Harradine 3-5-91 PNG project - use of depo provera 8-5-91

Harradine 3-5-91 PNG project - birth control 8-5-91

Harradine 3-5-91 PNG project - family planning 8-5-91

Harradine 3-5-91 UNFPA - Vietnam project 8-5-91

8-5-91 14-5-91 8-5-91 14-5-91 8-5-91

8-5-91 8-5-91 8-5-91

Australian Senate

Estimates Committee C

Report to the Senate

May 1991

101

ESTIMATES COMMITTEE C

R e p o r t t o t h e S e n a t e

Estimates Committee C presents its Report to the Senate.

Introduction

1. On 14 March 1991 the Senate resolved:

(1) That the Particulars of Proposed Additional expenditure for the Service of the year ending on 30 June 1991 in relation to the Parliamentary Departments, the Particulars of Proposed Additional Expenditure for the Service of the year ending on 30 June 1991 and the Particulars of Certain Proposed Additional Expenditure in respect

of the year ending on 30 June 1991 be referred forthwith to estimates committees for examination and report;

(2) That votes contained in the Schedule to the Appropriation Act (No. 3) 1990-91 be referred to the appropriate Estimates Committees for examination and report together with the Additional Estimates for 1990-91;

(3) That the committees consider Proposed Additional Expenditure in the estimates committee groupings agreed to by the resolutions of the Senate of 9 and 10 May, 11 September 1990 and 13 February 1991;

(4) That the committees report to the Senate on or before Wednesday 8 May 1991.

The Departments relating to Estimates C are:

. The Department of the Arts, Sport, the Environment, Tourism and Territories; and . The Department of Social Security.

2. The Committee met on 16 and 19 April 1991 to examine the Additional Estimates of these Departments. The estimates were considered with the assistance of the Explanatory Notes provided by the respective Departments. The Committee received explanations of the Estimates from the Minister for Social Security, Senator

the Hon. G.F. Richardson; the Minister for Justice and Consumer Affairs, Senator the Hon. M.C. Tate; the Minister for Administrative Services, Senator the Hon. N. Bolkus; and from officers of the relevant Departments and authorities.

102

3. Copies of the Minutes of Proceedings, the Hansard reports of the evidence taken by the Committee and a table of contents to the Hansard reports are tabled for the information of the Senate in connection with its consideration of Appropriation Bill No. 4 (1990-91) and Appropriation Bill No. 5 (1990-91). Written

answers to questions taken on notice during the Committee's hearings will be tabled separately in the Senate.

Department o f Social Security

Magazine Supplements

4. The Committee sought advice about magazine supplements publicising Social Security programs, particularly Jobs, Education and Training (JET). The Committee draws attention to the recent initiatives to advertise such programs, including a supplement in Cleo magazine (in conjunction with the ACTU, the Better Health Better Life campaign, and the Commonwealth Bank). This initiative was claimed to be targeted to potential beneficiaries. The Committee notes that whereas it would cost approximately $125,000 for postage alone to write to each sole parent on this issue, the supplement on JET cost $45,000. The cost benefit of the supplement is currently being evaluated by the Department.

Computer Error

5. The Committee was concerned to learn from the Department that, while some 194.000 review forms on deemingand investment were issued in January 1991, some 44.000 people who should have received the form were not initially identified as needing it. In mid-February, the Department issued 88,000 reminder notices, including 44,000 to people who had not been sent the initial review form. The Committee was concerned at the considerable anxiety created amongst the 55,000 persons affected by this mistake which the Department advised resulted from a 'very unusual computer programming error'.

6. Because so many pensioners were involved, the Committee finds it difficult to accept computer error as an excuse and notes the Department's agreement on that point. The Committee recommends that the Department provide the best attention possible to systems testing and quality exercises upon its computer systems.

JET - Child Care

7. The Committee was concerned to learn from the Department that while an amount of $5.5m was budgeted under JET for child care, only $3.5m was expected to be spent. The Committee is aware of unmet need for child care amongst JET recipients and finds it difficult that the Department cannot use $2m to meet further demands in child-care.

103

Department o f the Arts, Sport, the Environment, Tourism and Territories

Australian Elizabethan Theatre Trust

8. While the Elizabethan Theatre Trust was not directly under the control of DASETT, the Department was concerned about the Trust as the conduit for donations to arts organisations. Accordingly, it has been under review by the Department for up to five years and an alternative method of tax deduction for donations had been sought. The Department confirmed that, as a result, it was able to introduce an alternative scheme very quickly following the financial collapse of the Elizabethan Theatre Trust. The subject had been reviewed already between the Commonwealth and the States at the Cultural Ministers Council; the broad

guidelines had also been discussed in February 1991 with the officials who service the Council. The Committee notes that unlike the Elizabethan Theatre Trust, the new arrangements are the responsibility of DASETT.

Australian Sports Drug Agency

9 The Committee was advised that ASDA is now running efficiently and that the Board has already met. Nevertheless the fact that Section 41 of the Act provides no powers of delegation by the Chief Executive has been noticed and is receiving consideration. Similarly, the question of the manner of written confirmation of positive tests is the subject of continuing attention. And ASDA expects to advise

Government on the outstanding issue of who may be notified of a negative test result.

ABC - Charges for Sports Coverage

10. The Committee was interested in the confirmation by the Australian Sports Commission (ASC) that funding provided by the Commission for international sports events can be diverted to television coverage by the Australian Broadcasting Commission (ABC). The ASC confirmed that this was a matter of concern. For example, of $250,000 provided to the organisers of the world rowing championships, some $150,000 was used to pay the ABC for television coverage. It is possible that

a range of sports funded by the ASC have significant proportions of those grants diverted to the ABC for television coverage.

National Museum - Asset Valuation

11. The Committee notes the Department's confirmation that while it is required to value its collection, it has not done so. The matter of acquisition policy and valuation will be pursued further in the Senate.

Unnecessary Funding

12. The Committee heard with concern admissions from the Department about requests for allocations that were not capable of being spent. These included an

104

allocation for the salary of a new position - Chief Science Adviser, and funding to cover a projected shortfall in revenue from entrance fees for Kakadu National Park.

Procedural Issues

13. In the course of the Additional Estimates hearings, two procedural issues arose.

14. First, following the rising of the Senate on Thursday 18 April, a member of the Committee was obliged to leave Canberra urgently and was unable to attend the hearing on 19 April. The Committee draws attention to a need for arrangements to deal with such circumstances.

15. Second, the scope of legitimate questioning during Additional Estimates continues.

Recommendations

16. Estimates Committee C recommends that the Senate approve, without amendment or request for amendment, expenditure in accordance with additional estimates considered by the Committee.

17. The Committee further recommends that all questions taken on notice by witnesses at the Committee's hearings and not answered before the meeting of the Committee to approve this report, be further examined by the Senate. In addition, the Committee notes the reservations of Senators allowing for certain matters to be subject to further examination in the Senate (see Appendix 1). The Committee notes that answers to some questions on notice have not been received by the Committee.

Acknowledgements

18. The Committee was grateful for the assistance given by the Ministers and the officers of the Departments who appeared before it. The Committee appreciated that the Secretaries of the Departments attended together with their officers.

19. The Committee further appreciates that several Senators placed questions on notice prior to the hearings. The timeliness of the Department's response to these questions expedited the work of the Committee.

Rosemary Crowley Chair

105

GUIDE TO CONTENTS FOR HANSARD TRANSCRIPTS OF HEARINGS H ELD BY ESTIMATES COMMITTEE C ON 1 6 AND 1 9 APRIL 1 9 9 1

Page C

16 April 1991

Department o f Social Security

Family Allowance Supplement Evaluation Report Jobs, Education and Training (JET) program - evaluation Cleo insert Family Allowance Supplement - take up rate 11

Family Allowance Supplement - entitlement 12

War widows - anomalies 14

Deeming 15

Deeming - investment questionnaire 19

Amnesty - savings 20

Social Security Appeals Tribunal - appeals against rulings 22

Australian Institute of Family Studies - research contracts 25

- travel 26

Data matching - transfer of funds to Australian Taxation Office 27

- security 28

- tenders 29

Tax file number - data entry 30

JET program - evaluation 31

Aged pension - fringe benefits - correspondence 31

Aged pension - asset valuation 33

Aged Pension News - non English language summaries 35

Unemployment - administration costs 37

- staff increases and allocation between regions 38

Change management 43

Staff allocation 45

JET - child care 47

- program funding estimates 48

- program evaluation 51

- program funding estimates 53

Part pensioners eligibility for health care card 56

JET - interim evaluation 58

Social Policy Research Centre, UNSW - funding 59

106

Telephone rental concessions 60

Expenditure delegations 63

New Social Security Act 64

Bogus DSS officers 65

Unlawful disclosure of information 66

Aged pension - fringe benefit cards - correspondence 67

Questions on notice - video training 68

- Ms P. Warn - consultancy 68

Department o f the Arts, Sport, the Environment, Tourism and Territories

Program 5 - Arts 71

Australian Elizabethan Theatre Trust 71

Arts organisations - tax deductibility 72

Australian Elizabethan Theatre Trust - financial difficulties 73

Arts organisations - funding guidelines 76

Craft - tax treatment 78

Australian Elizabethan Theatre Trust - financial difficulties 79

Australia Council - touring allowance 80

Australia Council - legal expenses 80

New Touring Scheme for the performing arts 81

Performance venues utilisation 82

Queensland arts programs - funding 83

Program 6 - Film and Television 86

Co-production of Australian films 86

Answers to Questions on Notice - Senator Tambling 89

- Program 4.2 - Christmas Island 89

- Workers Heritage Centre Barcaldine, grants 90

- Program 8.5 Environmental Protection, grants 90

Control of Mimosa Pigera in Kakadu National Park 97

19 April 1991

Department o f the Arts, Sport, the Environment, Tourism and Territories

Program 7 - Cultural Heritage and Information 101

Australian National Gallery - staffing levels 102

- roof repairs 103

- revenue loss and attendance 103

- holdings 104

Australian National Gallery Foundation 106

Australian National Gallery - stocktake 107

National Library of Australia - expenditure approval 108

107

National Film and Sound Archives - collection survey 108

- nitrate film preservation 108

National Museum - accounting records 109

- access to researchers 112

Program 1 - Sport and Recreation 113

Australian Sports Drug Agency 113

- appointments 114

- testing procedures 114

- weightlifting 117

- international issues 118

- laboratory charges 122

- powerlifting 122

Australian Sports Commission 123

Australian Institute of Sport - East German coaches 125

Sports Medicine and Science Centre 126

Auditor-General's report 127

Payments to ABC for television coverage of amateur sports 129

Women's Sports Unit 132

Program 2 - Tourism and Information 132

ATC additional funding 133

Program 8 - Environment 134

Endangered species law - funding 134

Student science sustainability conference 135

Ravenshoe structural adjustment package 137

Environmental planning 139

Shark Bay World Heritage nomination 140

Office of the Supervising Scientist 142

National Botanic Gardens - salaries 143

Kakadu National Park - costs and revenue 144

National Estate and Heritage Act 145

Queanbeyan Heritage Study 146

Great Barrier Reef Marine Park - charges 146

Chief Science Advisor - appointment 147

Greenhouse research 148

Consolidation of revenue 149

109

Tuesday 16 April 1991

Estimates Committee C

Minutes of Proceedings

No. 1

1. Meeting

The Committee met in public session at 3.53 p.m. in Committee Room 2S1. Senator Crowley took the Chair.

2. Statement by Chair

Senator Crowley made a statement relating to the procedure to be followed by the Committee in its examination of the Estimates.

3. Particulars of Proposed Additional Expenditure 1990-91 - Department of Social Security

In attendance - Senator the Hon. G.F. Richardson, Minister for Social Security; Senator the Hon. M.C. Tate, Minister for Justice and Consum er Affairs. The following officers accompanied the Ministers:

Department o f Social Security

Mr D. Volker, Secretary Mr J. Bowdler, Deputy Secretary Mr J. Humphreys, National Manager, Operations Ms C. Hogg, National Change Manager

Mr B. Godfrey, First Assistant Secretary, Resource Management Mr C. Butel, First Assistant Secretary, Program Delivery Mr T. Murphy, First Assistant Secretary, Privacy, Fraud and Control Mr A. Law, Acting First Assistant Secretary, Systems

Mr M. Sassella, Principal Adviser, Legal Mr I. Carnell, Executive Manager, Program Delivery Mr J. Moore, Acting Executive Manager, Resources/Property Dr K. Ogbom, Assistant Secretary, Labour Force Program

Mr D. Tune, Assistant Secretary, Retirement Programs Ms C. Zanetti, Assistant Secretary, Sole Parents Programs Ms P. Kelly, Assistant Secretary, Budget Co-ordination and Housing Policy Mr R. Elmes, Assistant Secretary, Data Matching

Mr C. Stewart, Assistant Secretary, Information and Public Relations Dr D. Edgar, Director, Australian Institute of Family Studies Ms A. Coghlan, National Convenor, SSAT

110

Department o f Finance

Ms C. Edmondson, Senior Finance Officer, Social Welfare Branch, Social Security Division Mr P. Marchesi, Senior Finance Officer, Social Welfare Branch, Social Security Division

4. Program Consideration (On Call of the Chair)

Program 3 - Income Security for the Unemployed and Sick Program 4 - Income Security for Families with Children Program 5 - Provisions for Special Circumstances Program 6 - Corporate and Other Services

The Chair also called for matters that were not program-specific.

Together the expenditure in these programs comprised the following divisions: 560.1, 560.3, and 561.

The Committee concluded its consideration of the proposed additional expenditure for the Department of Social Security, subject to undertakings to provide additional information to the Committee.

5. Particulars of Proposed Additional Expenditure 1990-91 - Department of the Arts, Sport, the Environment, Tourism and Territories

In attendance - Senator the Hon. G.F. Richardson, Minister representing the Minister for the Arts, Sport, the Environment, Tourism and Territories. The following officers accompanied the Minister:

Department o f the Arts, Sport, the Environment, Tourism and Territories

Mr T. Blunn AO, Secretary Mr G. Dempster, First Assistant Secretary, Arts, Film and Cultural Heritage Dr K. Daniels, Assistant Secretary, Arts Mr R. Brent, Assistant Secretary, Film Mr M. Bourke, General Manager, Australia Council Ms D. Temby, Director, Corporate Services, Australia Council Ms C. Robinson, Chief Executive, Australian Film Commission Mr R. Neale, Director, Finance and Systems, Australian Film Commission

Department o f Finance

Ms C. Edmondson, Senior Finance Officer, Social Welfare Branch, Social Security Division Mr P. Marches!, Senior Finance Officer, Social Welfare Branch, Social Security Division

6. Program Consideration (On Call of the Chair)

Program 5 - Arts

Program 6 - Film and Television

Together the expenditure in these programs comprised the following divisions: 136.1, 138.1, and 811.7.

7. Adjournment

The meeting adjourned at 12.31 a.m.

Ill

Attendance

Apologies

Senator R.A. Crowley (Chair) Senator R.K.R. Alston Senator the Hon. T. Aulich Senator K.C.L. Patterson

Senator the Hon. M. Reynolds Senator M.S. Walters Senator M. Baume Senator I. Campbell

Senator J. Herron

Senator N.A. Crichton-Browne

Confirmed

------- V

61

Rosemary Crowley Chair

112

Friday 19 April 1991

Estimates Committee C

Minutes of Proceedings

No. 2

1. Meeting

The Committee met in public session at 9.10 a.m. in Committee Room 2S1. Senator Crowley took the Chair.

2. Statement by Chair

Senator Crowley advised that the Committee would resume its hearings at Program 7 of the Department of the Arts, Sport, the Environment, Tourism and Territories (DASETT).

3. Particulars of Proposed Expenditure 1990-91

In attendance - Senator the Hon. N. Bolkus, Minister for Administrative Services. The following officers accompanied the Minister:

Department o f the Arts, Sport, the Environment, Tourism and Territories

Mr T. Blunn AO, Secretary Mr D. Mazitelli, First Assistant Secretary, Tourism, Sport and Recreation and Information Mr B. Rowe, Acting Assistant Secretary, Sport and Recreation Mr J. Ferguson, Executive Director, Australian Sports Commission Mr P. Crosswhite, Director, Sports Development, Australian Sports

Commission Mr S. Haynes, Chief Executive, Australian Sports Drug Agency Ms J. Harrison, Assistant Secretary, Tourism Development and Events Mr T. Thirwell, Managing Director, Australian Tourist Commission

Mr G. Dempster, First Assistant Secretary, Arts, Film and Cultural Heritage Mr L. Neilson, Assistant Secretary, Cultural Heritage Ms B. Churcher, Director, Australian National Gallery Mr A. Froud, Assistant Director, Administration, Australian National Gallery Mr R. Edmonson, Acting Director, National Film and Sound Archive Mr R. Brent, Assistant Secretary, Film, National Film and Sound Archive Mr W. Horton, Director-General, National Library of Australia Ms R. McClelland, Acting Assistant Director-General, Corporate Services,

National Library of Australia Ms K. Dal Bon, Director, National Museum of Australia

113

Ms J. Di Sano, First Assistant Secretary, Environment and Conservation Policy Mr N. Quinn, First Assistant Secretary, Environment Protection Dr A. Turner, Assistant Secretary, Nature Conservation Mr I. Carruthers, Assistant Secretary, Climate Change and Environment

Liaison Mr C. Griffiths, Assistant Secretary, Wet Tropics Mr B. Fry, Supervising Scientist, Alligator Rivers Region Research Institute Dr G. Riley, Deputy Supervising Scientist, Alligator Rivers Region Research

Institute Mr D. Cottom, Manager, Corporate Services, Alligator Rivers Region Research Institute Ms S. Sullivan, Director, Australian Heritage Commission

Mr G. Early, Deputy Director, Australian Heritage Commission Dr P. Bridgewater, Director, Australian National Parks and Wildlife Service Mr J. Crennan, Acting Assistant Director, Corporate Services, Australian National Parks and Wildlife Service Mr R. Hebblewhite, Assistant Executive Officer, Administration, Great

Barrier Reef Marine Park Authority Ms C. Santamaria, First Assistant Secretary, Corporate Management and Territories Mr D. Anderson, Acting Assistant Secretary, Portfolio Co-ordination

Department o f Finance

Mr V. Cassimatis, Finance Officer Mr M. McGovern, Finance Officer

3. Program Consideration (On Call of the Chair)

Program 1 -Program 2 -Program 4 -Program 8 -

Program 10 -

Sports and Recreation Tourism and Information Territories Environment

Corporate Services and Portfolio Co-ordination

The Chair also called for matters that were not program-specific.

Together the expenditure in these programs comprised the following divisions: 135.4, 145.1, 153.3.01, 811.1.02, 135.10, 155.1, 811.8, 136.1, 138.1, 150.1, 143.1, 147.1, 812.13, 146.1, 146.2.01, 146.3.01, and 135.2.

The Committee concluded its consideration of the proposed additional expenditure for the Department of the Arts, Sport, the Environment, Tourism and Territories, subject to undertakings to provide additional information to the Committee.

4. Adjournment

The meeting adjourned at 1.31 p.m.

114

Attendance

Apologies

Senator R.A. Crowley (Chair) Senator the Hon. T. Aulich Senator M. Baume

Senator N.A. Crichton-Browne Senator R. Kemp Senator I. Macdonald

Senator I. Campbell Senator the Hon. M. Reynolds

Confirmed

Rosemary Crowley Chair

115

Tuesday 7 May 1991

Estimates Committee C

Minutes of Proceedings

No. 3

1. Meeting

The Committee met in private session at 9.45 a.m. in Committee Room 1S3. Senator Crowley took the Chair.

2. Report

The Committee considered the draft report on Additional Estimates and approved it subject to amendments as agreed.

3. Minutes

Minutes of Meetings 1 and 2 were approved.

4. Adjournment

The meeting adjourned at 9.55 a.m.

Attendance

Apologies

Senator R.A. Crowley (Chair) Senator R.K.R. Alston Senator the Hon. T. Aulich Senator M. Baume

Senator K.C.L. Patterson Senator M.S. Walters

Senator I. Campbell Senator N.A. Crichton-Browne Senator the Hon. M. Reynolds

Certified correct

Rosemary Crowley Chair

117

APPENDIX 1

LETTERS OF RESERVATION

118

AUSTRALIAN SENATE

O N W k k A α Γ τ

26 April 1991

Mr Peter Grundy Secretary Estimates Committee C The Senate, Parliament House 2600

D ear Mr Grundy,

I recommend that the following matters relating to the estim ates of expenditure referred to the Committee bo further examined by the Senate.

* Questions which were not answered, end questions which were not answered adequately, at the hearings of the Committee.

* Questions for which answers were to be subsequently provided.

* Questions for which answers were subsequently seen to be unsatisfactory.

* Written answers to questions placed on notice.

* Matters In respect of which further information was to be provided,

Yours sincerely,

119

RESERVATION BY SENATOR NOEL CRICHTON-RROWT^

SENATE yaufi-i [ATES COMMITTEE ΤΓ

I recommend that the following matter relating to the Estimates of Expenditure

referred to the Committee be further examined by the Senate:

All programmes relating to the Department of The Arts, Sports, The

Environment, Tourism and Territories.

Noel Crichton-Browno SENATOR FOR W A

6 May 1991

120

PARLIAMENT OF AUSTRALIA · T H E S E N A T E

PARLIAMENT HOUSE

CANBERRA ACT 2600 TEL (06) 277 3680 FAX (06) 277 3679

The Secretary Senate Estimates Committee C Parliament House CANBERRA ACT 2600

Dear Sir,

SENATOR SHIRLEY WALTERS SENATOR FOR TASMANIA

AFTER HOURS TEL* (002) 25 2384 FAX: (002) 25 2291

MARINE BOARD BUILDING I FRANKLIN WHARF

GPO BOX 760H. HOBART 7001 TEL: (002) 34 1409 FAX: (002) 31 0904

7 May 1991

I recommend that the following matters relating to the estimates of expenditure referred to the Committee be further examined especially in relation to:

Department of Social Security Privacy Provisions

Yours sincerely,

Shirley Walters Senator for Tasmania.

121

P A R L I A M E N T O F A U S T R A L I A · THE SENATE

SENATOR KAY PATTERSON

SENATOR FOR VICTORIA

5 May 1991

Mr Peter Grundy Secretary Senate Estimates C Parliament House CANBERRA ACT 2600

D e a r M r G r u n d y

I recommend that the following matters which were brought to the Committee's attention in relation to its examination of the Additional Estimates for the Department of Social Security be further examined by the Senate:

1. Implementation of the data matching legislation - Page 7 of the Explanatory Notes under Explanation of Variations not allocated to Programs)

2. Sub-program 3.1 - (Page 8 of the Explanatory Notes under Income Security for the Unemployed and Sick)

3. All areas of questioning which relate to undertakings by departmental officers to provide me with additional information.

It would be appreciated if you could bring this recommendation to the attention of members of the Committee.

Yours sincerely

Senator for Victoria

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PARLIAMENT OF AUSTRALIA · THE SENATE

122

SENATOR IAN MACDONALD

LIBERAL SENATOR FOR QUEENSLAND

7th May, 1991.

Mr. Peter Grundy, S e c r e t a r y ,

Senate Estimates Committee 'C',

Dear Peter,

By way of reservation, I recommend that matters in the Department of the Arts, Sport, Tourism and Territories relating to the Ravenshoe Timber Mill, and the Tully Mill-Stream Hydro Electricity Scheme, and all subsidiary or associated matters related thereto be referred to the Senate for further

consideration by the Senate.

Yours sincerely,

IAN MACDONALD. Senator for Queensland.

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Telephones:

TOWNSVILLE (077) 71 3066 77 Denhan Street (077) 71 34M PO Box 2185 Towns vile 4810

CAIRNS (07CX 314 803 75 Abocr. Street i07C> 3-U08 P O Box 2148 Ca-m< 4? 70

CANBERRA (06) 277 3665 Room SI95 (06) 277 365s Parliament House Canbema 267C

123

ERRATUM

E S T IM A T E S CO M M ITTEE C

V 7

ERA 42

paper

SECTION 1

Department o f the Arts, Sport, the Environment, Tourism and Territories

The following Questions on Notice for this department were unanswered as at 10.00 a.m. Wednesday 8 May 1991 when the Report of Estimates Committee C was approved by the Committee.

Hansard Page No.

Senator Subject

C78-9 Crowley Definition of craft.

C79 Baume Date at which Mr Blunn became aware of Australian

Elizabethan Theatre Trust insolvency.

C84 Baume History from Mr Bourke, Australia Council re arts

funding for Queensland.

C84 Crowley Update on statistics re the Arts in Australia.

C87 Crowley Points score for australian content of film co-productions.

C89 Aulich How Green Card scored on co-production criteria.

C103 Baume Average revenue per visitor - Australian National

Gallery.

C104 Baume Proportion of Australian National Gallery items that are Australian.

C105 Baume Has Artbank been approached to provide paintings to the Federal Airports Corporation?

C108 Baume National Film and Sound Archives to provide documents on service reductions.

124

C130 Baume Loss of private sector sponsorship by sporting bodies because of new ABC rule on broadcasting of sponsor information.

C138 Macdonald Auditing of student conference grant.

C145 Baume Detailed explanation re costings and revenue for

management of Kakadu National Park.

C146 Baume Copy of legal judgement or relevant information re

Paddy's Market case.

C150 Baume Breakdown of revenue earnings by source within

corporate services account.

Written Questions placed on notice by Senator Baume on 23 April 1991 for the Department of the Arts, Sport, the Environment, Tourism and Territories.

Program 1.2 - Community Recreation and Sporting Facilities

1. Has the review of this program outlined at the September 1990 hearings been completed?

(a) If so, what is the result?

(b) If not, when will it be completed?

(c) Are there sufficient quality programs already on hand to sustain a $20m three year program from 1991-92 on?

Program 2.4 - Australian Tourist Commission

1. (a) What is the attendance record so far in 1990-91 of board members at board meetings? Please list.

(b) What are the fees received by Board members - are they on an attendance basis?

(c) How long are meetings and is a record kept of board members who attend only part of a meeting? Do any board members consistently miss large parts of board meetings?

2. Environmental requirements of the Australian Tourist Commission

(a) What are they?

(b) What has been achieved?

(c) What has been the overall cost so far this year?

Program 3 - Antarctic

3.2 Expeditions

125

Bunker fuel Increase

. What are the existing arrangements regarding the supply of marine diesel oil to the Antarctic Division? Is the Division satisfied that the fuel is being obtained in a truly competitive environment?

. Are there any steps which the Division could take in order to shield itself somewhat from future escalations in the contract rate? Does provision exist under the existing arrangements for the benefits which would accrue from downward fluctuations in diesel oil prices to be passed on to the Antarctic

Division?

Hire Rate - RSV Aurora Australia

. Have the mandatory increases in the hire rate which are part of the Aurora Australia charter been a part of previous Antarctic shipping charter agreements? On what basis was the increase to the hire rate negotiated and how does this compare with the increases in the rates for other vessels?

. Is it not a fact that when a new rate was recently negotiated for the Icebird the rate was cheaper than before reflecting the general downward trend in the demand for such vessels and the world economy generally? Could it not be argued therefore that the contract for the Aurora Australis effectively

shielded the owners from such fluctuations to the detriment of the Australian taxpayer?

Late Account - RSV Aurora Australis

. The final account for $66,000; for how many days does the account actually relate and on that basis what was the daily cost for the voyage? How does that cost compare with previous rates for Antarctic charters?

. The March/April edition of Australian Ships and Ports makes a number of comments regarding the recent demise of Carrington Slipways.

. The Article states 'Without doubt the mortal blow to Carrington Slipways ... should have been constructed overseas'.

. Why should the magazine make such assertions and in hindsight given the failure of Carrington Slipways, the lengthy time delays and the cost overruns would it not have been better to give greater thought to the overseas option? Does the Division have any estimate as to the difference between the original cost to have the vessel constructed overseas and the eventual cost including extras paid in Australia?

126

In relation to the failure of Carringtons the Australian Ships and Ports article states;

the overrun costs associated with Aurora Australis and late deliveries due in part to problems beyond Carrington's control led to the ultimate failure of the company.

. What were the problems referred to in the article and does the Division accept and of the responsibility for the eventual demise? Were the problems more associated with the action or lack of action by P and Oin relation to the shipbuilding project?

Ice Pilot

. Given that the previous Minister gave several assurances that the Aurora Australis would be a fully Australian crewed vessel and that in fact the personnel already were available within the country to undertake such a role, what led to the change of thinking in relation to the hiring of an Ice Pilot? What nationality was the pilot and was the option of hiring an Australian pilot pursued?

. Is it envisaged that it will be necessary to hire a foreign Ice Pilot in future? If not who is to undertake this role and what were the duties and experience of the intended Australian Ice Pilot at the time when the overseas pilot was engaged?

ADVANCE TO THE MINISTER FOR FINANCE MARCH 1991

ANTARCTIC DIVISION

$158,696 - COMPENSATION AND LEGAL EXPENSES

. To what do these compensation and legal expenses relate?

. On what basis was the action against the Antarctic Division successful?

. Are there any similar cases against the Division currently being considered?

• Has the decision resulted in any changes to Antarctic division procedures?

$67,720 - OTHER SERVICES SHIPPING

This additional amount is required to meet contractual arrangements.

. Were these arrangements not known of in advance when preparing the original estimates?

127

. To what do these contractual arrangements actually relate and can a breakdown of cost be provided re Icebird and Aurora Australia?

. The overall contractual payment relates to a figure of $173,000. What is the breakdown of this payment?

Program 7 - Cultural Heritage and Information

Sub program 7.8 - National Science and Technology Centre

. Is it intended the Centre will eventually become self funding? If so, over what time period does it envisage reaching independence from appropriations?

. If the program does not seek to become self-funding, has this ever been its stated intention in the past?

. What ratio of external earnings to appropriations does it currently require to maintain its operations?

. What ratio does it envisage being required in the medium to long terms?

. What impact would a reduction or a withdrawal of appropriation support have on the Centre?

. Would it be necessary to reduce activities at the Centre or could this be offset by a higher entry fees?

. What is the entry fee for the Centre at the moment?

. Is there any intention to increase that fee, even assuming appropriation support for the Centre remains as planned?

Program 8.7 - Australian Heritage Commission

. What is the present state of the backlog of nominations as discussed on p.C 186 of Senate Estimates Hansard of 18 September 1990?

Program 9 - Meteorology

Commonwealth Bureau of Meteorology

. Does the Division suffer from any perceived or real inadequacy in respect of the effectiveness of its equipment or other infrastructures?

. Has any investigation into this matter been undertaken?

. What interaction takes place between the Bureau and the CSIRO's Division of Atmospheric Physics?

128

At what points do the various activities of the Bureau and the Division overlap?

. Has there ever been a review of the potential for greater collaboration between the Division and the Bureau? If so, in what areas?

If no consideration has been given to this m atter to date, is it intended to undertake such a review?

Department o f Social Security

Questions taken on notice by the Department during the hearing of Additional Estimates were all answered before the completion of the Committee's report with the exception of the two highlighted questions.

Hansard Page No.

Senator Subject

C5 Alston Summary of evaluation of training programs.

C7 Alston CLEO correspondence.

C8 Alston Was CLEO ad placed in other magazines.

C ll Aulich Characteristics of eligible people not taking up FAS.

C19 Patterson Exemptions for investments in Pyramid.

C21 Patterson Savings from amnesty - benefit by type, amount and state.

C22-24 Reynolds Details of Social Security Appeals Tribunal cases.

C27 Alston Australian Institute of Family Studies expenditure on travel.

C29 Patterson Specifications for tender for data matching.

C31 Patterson Data provided to Department of Community Services and Health and the Health Insurance Commission in relation to Pharmaceutical Benefits Scheme.

C31 Alston Correspondence re Australian Council on Social Service evaluation of the Jobs, Education and Training (JET) scheme.

C31 Alston Departmental spending on administration.

C34 Patterson Articles in Aged Pension News re asset valuation.

129

C35 (C37) Patterson Cost of ethnic press notices about aged pension matters.

C36 Patterson Copies of foreign language summaries.

C42 Patterson Figures on ratio of departmental staff to unemployed.

C45 Alston Trend line on new unemployment applications.

C45 Alston New staffing in larger regional offices.

C45 Alston Location and allocation of new staff.

C46 Patterson Numbers of staff harassed.

C55 Alston Child care places outside JET.

C55 Walters Childcare places provided under JET.

C56 Patterson JET advisors outcomes.

C56 Patterson JET interim evaluation report.

C60 Walters Social Policy Research Centre activities.

C61 Patterson Limits to number of replacement Telephone Rental Concession vouchers.

C63 Patterson Telephone concession scheme.

C66 Patterson Unlawful disclosure of information by departmental officers.

C66 Patterson Types of information disclosed by departmental officers.

C68 Patterson Parliamentary secretary letter - numbers with incorrect expression.

C68 Alston Ms Warn consultancy.

C67 Alston Use of videos in departmental communication and

training.

131

ESTIM ATES COM MITTEE D

R E PO R T TO THE SENATE

M ay 1991

133

ESTIMATES COMMITTEE D

REPORT TO THE SENATE

E stim ates Com m ittee D presents its report to the Senate.

INTRODUCTION

1. On March 14 1991, the Senate referred to th e Com m ittee for exam ination and report, the Particulars o f Proposal A dditional Expenditure for the Service of the Year ending on 30 June 1991, the Particulars o f Certain Proposed A dditional Expenditure in respect o f the year ending on 30 June 1991 and a

statem ent of savings expected in annual appropriations in respect o f the follow ing portfolios:

. Adm inistrative Services

. Em ploym ent, Education and Training . Im m igration, Local Governm ent and Ethnic Affairs

2. The Com m ittee has considered these estim ates, together w ith the portfolio Explanatory N otes and the statem ent o f savings. It has received evidence from the M inister for A dm inistrative Affairs, Senator the Hon. N ick Bolkus, and officers o f the departm ents and authorities concerned. Copies o f the

M inutes o f Proceedings and H a n s a r d report o f the evidence taken by the Com m ittee are tabled for the inform ation o f the Senate in connection with Appropriation Bill (No. 4) 1990-1991 and Appropriation Bill (No. 5) 1990­ 1991. Further w ritten information provided by the portfolios w ill be tabled

in a volum e o f additional information.

3. In p ast reports, the Com m ittee has expressed concern about the move to commercial operations w ithin the D epartm ent o f A dm inistrative Services, the associated establishm ent o f trust accounts and the consequent potential to lim it the ability o f the Parliam ent to scrutinise th ese operations. This matter w as raised again in the light o f the Department's decision to am algam ate its

nine trust accounts into one account w ith effect from 1 July 1991.

4. The Com m ittee w as informed that the purpose o f this amalgamation was to provide DAS w ith greater m anagem ent flexibility, in particular for cash m anagem ent across the nine commercial operations. The Com m ittee noted the undertaking given to the Senate Standing Committee on Finance and

Public Adm inistration, and to Estim ates Com m ittee D, that new reporting arrangem ents would provide no less detailed information on operations previously covered in the nine separate trust accounts. Ultim ately, w hen DAS m oves to full accrual accounting, the Com m ittee will expect to be provided

w ith accrual-based accounting statem ents, profit and loss accounts and balance sheets for segm ents o f the business, in addition to an aggregate for

134

the portfolio. The Com m ittee notes that the D epartm ent expects to be able to provide unaudited inform ation on several programs at the tim e o f the main Estim ates hearings in September.

5. Another aspect o f the Department's operations which attracted the attention o f the Com m ittee were procedures under which the Departm ent tendered for the supply o f computer services for other governm ent departm ents as part of a joint venture w ith private sector partners. Concern was expressed about a possible conflict o f interest, where DAS could be a partner w ith a private sector operator and then be involved in the tender consideration process.

6. The Com m ittee noted assurances given by the D epartm ent that the potential conflict o f interest was recognised and that a code o f conduct would regulate the way in which DAS operated. T his would m ean th at the DAS disqualified itself from evaluating tenders which included a DAS tender.

7. Also raised at the hearings were details o f irregularities and anom alies in the client services provided by Comcar. They were sim ilar to m atters raised at the Septem ber 1990 hearings, including apparent instances of overcharging, lax procedures for verifying log sheets and vouchers and unreliable booking procedures. The answers given by officers indicated that further tightening of procedures, promised at the hearings, are urgently needed if Comcar is to offer an efficient and com petitive service. The Com m ittee acknowledges that Comcar m anagem ent is energetically pursuing the task o f im plem enting improved work practices, including negotiations w ith the Transport Workers U nion to introduce more casual drivers, one o f the changes aimed at

establishing a 'culture o f service' in the operations.

8. The Com m ittee recommends that the Senate approve, w ithout am endm ent or request, expenditure in accordance w ith the estim ates considered by the Committee.

9. The Com m ittee recommends that m atters raised specifically in this report in relation to this portfolio and all questions taken on notice by w itnesses at the Com m ittee hearing and unansw ered by Tuesday, 7 May 1991, as listed in the Appendix to th is report, be subject to further exam ination by the Senate.

EM PLOYMENT, EDUCATION A N D TRAINING PORTFOLIO

10. The Com m ittee noted that in a number of program areas under exam ination questions could not be answered because investigations and evaluations were still in progress. The Com m ittee looks forward to receiving inform ation on these programs when it becomes available. The areas under investigation

include:

135

. assessm ent requirem ents for additional revenue allocation for ESL programs aimed at assistin g m igrants w ith professional and highly m arketable skills . the econom ic cost o f illiteracy

. data on training expenditure levels under provisions of the

Training Guarantee Act

11. DEET's policy on overseas recruitm ent was raised at the hearings in

connection w ith a report of an aborted D epartm ent o f Defence recruitm ent drive for engineers costing $350,000. T he Departm ent confirmed its policy th at people w ith appropriate qualifications seeking em ploym ent in Australia are considered prior to overseas recruitm ent, and that deviations from this policy are considered only on a case by case basis. The Com m ittee awaits

clarification o f the issues involved in the case o f the Defence Departm ent engineers.

12. The Aboriginal and Torres Strait Islander Com m ission appeared as program 7 under the D EBT portfolio. The Com m ittee noted the Auditor General's com m ents on the Com m unity Developm ent Em ploym ent Project (CDEP) contained in A u d i t R e p o r t N o . 2 2 1 9 9 0 - 1 9 9 1 . T he Departm ent o f Aboriginal Affairs could not give an assurance that paym ents it had made to applicants

for assistance were in fact made to those entitled to assistance, the result of failures in checking and control mechanism s.

13. The Com m ittee noted the advice o f the Com m ission th at ATSIC had

im plem ented recom m endations aimed at im proving performance in these areas, and noted also the difficulties faced by ATSIC in recruiting and retaining people in rem ote areas who were com petent bookkeepers. The Com m ittee noted advice that while adm inistration would improve, the peculiar circum stances under which the program operated would mean that

control would probably never reach the standards that m ight be expected of a major accounting firm.

14. T he Com m ittee recom m ends that the Senate approve, w ithout am endm ent or request, expenditure in accordance w ith the estim ates considered by the Committee.

15. The Com m ittee recom m ends that m atters raised specifically in this report in relation to this portfolio and all questions taken on notice by w itnesses at the C om m ittee hearings and unanswered by Tuesday 7 May 1991 as listed in the Appendix to th is report, be subject to further exam ination by the Senate.

IMMIGRATION, LOCAL GOVERNM ENT A N D ETH NIC AFFAIRS PORTFOLIO

16. D uring the exam ination o f the estim ates o f the DILGEA portfolio certain m atters were clarified in regard to the division o f responsibilities betw een this portfolio and the Departm ent of Employment, Education and Training in

136

relation to approval and entry procedures for ELICOS students. The Com m ittee noted that DILGEA now has a greater interest in determ ining the bona Tides o f student visa applicants. While the D epartm ent continues to liaise w ith D EBT because it holds significant am ounts o f inform ation about colleges and universities, the Departm ent now deals directly w ith these institutions in ensuring that foreign students comply w ith the conditions of their entry permits.

17. The Com m ittee recommends that the Senate approve, w ithout am endm ent or request, expenditure in accordance w ith the estim ates considered by the Committee.

18. The Com m ittee recommends that m atters raised specifically in this report in relation to the portfolio and all questions taken on notice by w itnesses at the Com m ittee hearings and unansw ered by Tuesday 7 May 1991 as listed in the Appendix to this report, be subject to further exam ination by the Senate.

GENERAL M ATTERS

19. During the public hearings som e points were raised about the scope of

questioning in the additional Estim ates. Wide latitude in questioning has som etim es been perm itted for the additional Estim ates, to the extent that M inisters generally agree to answ er questions on programs not covered under the Estim ates. At other tim es M inisters have adhered strictly to a view that only questions on the additional Estim ates should be answered.

20. The conduct o f the hearings, so far as questioning is concerned, is governed more by convention than by the Standing Orders, which are silent on the distinction betw een questions perm itted when the m ain Appropriation Bills are being exam ined and those perm itted in the additional Estim ates. The President addressed this m atter in general term s in his letter to Estim ates Com m ittee Chairs on 3 Novem ber 1988, m aking two points:

. it is the role o f the Chairs to ensure that questions put to

M inisters are relevant

. it is for the M inisters in attendance to determ ine in the first

instance w hether any particular question w ill be answered and w hether it w ill be answered by officers.

137

21. On th is occasion the Com m ittee was able to reach a com prom ise w ith the M inister over the scope o f questioning, but some members continued to express their concern about the issue. As the m atter caused some

disagreem ent on this occasion the Com m ittee considers that for the benefit o f Senators, M inisters and portfolio officers alike it would be helpful if the Senate provided clarification o f the scope o f questioning to be perm itted at additional Estim ates.

Olive Zakharov Chair

a

139

Appendix

ESTIM ATES COMMITTEE D

U N A N SW ER ED Q U ESTIO N S A S AT 6 MAY 1991

A dm inistrative Services Portfolio

No. Senator Page Subject

1. Parer D5 1 Tim etable for accrual-based accounting

2. Parer D5 l,r Contracts to DAS Board of M anagem ent

members; tenders called; work required; nature of contract; rem uneration

3. Parer D5 r Areas in which DAS com petes w ith private

sector

4. Parer D7 1 Num ber o f leases w ith rent-free periods

and up-front cash payments; benefits

5. Parer D8 r R egistration details, ACS construction companies

6. Parer D9 1 H olding costs, Brisbane tower site

7. Parer D 9 r Estim ated costs to agencies of short- term leases

in Brisbane

8. Parer D9 r Space occupied by ATO in Brisbane, term s

o f lease, CBD requirem ents, Admiralty W harf complex lease details

9. Parer D15 r Accidents to private-plated vehicles

10. Kemp D16 1 W omen as percentage o f COMCAR applicants

11. Parer D17 r Toyota Camry safety recall actions

12. Parer D17 r Num ber o f cars purchased under contract

13. Parer D18 1 Hire car rates, Brisbane

14. Parer D21 1 Tender for computer consumables PCA3

15. Parer D25 1 Insurance cover in IT area

16. Kemp D27 r Grant to ANZFAS; nam es of officers

17. Parer D28 1 Fraud case - m oney involved; m atters to

AFP; outcome o f prosecutions; calls on fraud hotline; types o f fraud alleged

18. Parer D29 1 Office equipment provided to 7 categories of

parliamentarians; replacem ent policy

19. Parer D 29 1 Overtime payments from July 1989, MPs'

& Senators' staff; electorate telephone bills

21. A lston D 34 r Overseas trips by M inister for Social

Security & staff in last 12 m onths -purpose; amounts spent; total cost; details of accommodation used, & meals;

documentation

140

22. Alston D 35 1 D etails o f M inister for Social Security's proposed

trip to Europe

23. Parer D36 r DAS contribution to IT join t venture funding

24. Parer D36 r DAS liability exposure in IT joint

ventures; comparison w ith DAS requirem ents for private sector tenders

25. Parer D 36 r Taxes on DAS earnings from join t ventures

26. Parer D36 r Statutory charges to DAS join t venture accounts

27. Parer D36 r Auditor-General scrutiny o f DAS joint ventures

28. Parer D36 r DAS contribution to IT join t ventures

29. Parer D37 1 AGPS involvem ent in quick print; reasons; cost of

centres; information re print runs o f 20 000;

timing; AGPS special knowledge advantage; effects on private sector profitability; reasons for

M inister's lack o f response to PASA

30. Kemp D37 r M inisterial staff nos, classifications March 1983,

Septem ber 1990, April 1991

31. Kemp D37 r Shadow m inisterial staff numbers, classifications

for 1983, 1990, 1991

32. Kemp D37 r Other MOP(S) Act staff

33. Kemp D37 r M inisterial consultants - nam es, nos

34. Kemp D37 r Total cost m inisterial staff 1982, 1983, 1990,

estim ate 1991

35. Kemp D37 r NMLS staff, location

36. Kemp D37 r Current salary scales, entitlem ents, of m inisterial

and other staff

37. Newm an D 37 r Am ounts DAS billed Defence for printing

brochures, cards, posters, stationery in 89-90

38. Newm an D37 r Am ounts DAS billed Defence for security,

removals, storage, w aste disposal, plants, art, furniture, postage, telephone, computer hardware and software in 89-90

39. Newman D38 1 Am ounts DAS billed Defence for staff developm ent

training courses, study allowance, travel allowance, removal allowance, overtim e in 89-90

40. Newm an D38 1 Am ounts DAS billed Defence for COMCAR, hire

cars, cabcharge, domestic & overseas airfares, SES cars

Em ploym ent, Education and Training Portfolio

Department of Employment, Education and Training

No. Senator Page Subject

1. Kemp D41 r Overcrowding at ANU

2. Tierney D42 r Allocation of research grants

141

3. O'Chee D43 r Performance indicators for international awards

and exchanges

4. O'Chee D 45 1 Institutions w ith fee increases above 10%

5. O'Chee D 46 1 1991 students subjected to fee increases; average

length o f proposed study

6. O'Chee D46 r B asis for Com m onwealth scholarship allowances

7. Teague D51 1 Costs o f C om m onwealth involvem ent in schools;

m eans o f overcom ing them; justification of

C om m onwealth intervention

8. Teague D51 1 Grant supplem entation variations

9. Teague D51 1 U niversal diagnostic testin g for literacy and

numeracy; w hen intervention to combat illiteracy should be attem pted; reasons for DEET's lack of attention to the area

10. Teague D51 r ESL - follow-up to Campbell reviews; unm et ESL

need; determ ination of funding levels; non-pursuit o f AACLME recom m endations re tightening ELICOS accreditation & national assessm ent of ESL learning in schools; tabling o f N ational Policy

on Languages & response to costings o f phase 2; Child ESL Centre; present allocation o f funding; testin g of proficiency gains

11. Teague D52 1 M onitoring o f ethnic schools' curricula; officers

involved; indoctrination hazards checked; physical conditions; no. o f ethnic schools, students;

appropriations used

12. Teague D52 1 N o n -a c c e p ta n c e o f r e c o m m e n d a tio n s of

M artine/Dickson ASLL program review

13. Teague D52 1 Exclusion o f Catholic, non-governm ent schools

from A sian Studies Council

14. Teague D53 1 A sian language needs of Chinese students in

Victoria

15. Teague D52 1 ESL funding accountability; untrained ESL

t e a c h e r s ; E S L t e a c h e r s p a id fo r by

Commonwealth; m onitoring of ESL positions; targeting o f students in greatest need; weighting of ESL groups; m onitoring o f educational

performance of m igrant children; attem pts to raise more ESL money; sufficiency o f 12 months

intensive ESL; ESL needs evidence

16. Teague D53 1 N ational m eetings of ESL co-ordinators; training

for ESL teachers

17. Teague D53 1 Language Teaching Program details

18. Teague D56 1 International Students

- com pensation to ELICOS students - numbers affected - insolvencies expected - refunds of living allowance per college 89-90

142

- refund claims expected - percentage o f refunds already recouped from institutions - percentage o f refunds expected to be

recouped - reasons for delays in refunds - am ount o f allocation spent - com pensation to institutions, criteria, colleges

assisted, assistance provided - other than PRC students assisted, numbers - list o f ELICOS colleges - subsidisation o f colleges for taking in displaced

students - adm inistrative delays in subsidisation - International House E nglish College entry permits; acceptance advice dating; m onitoring of

student numbers

19. Teague D57 1 Num bers o f full fee-paying overseas students;

numbers per year and per institution; income earned in ELICOS & estim ated for 90-91, 91-92

20. Teague D 57 1 D EBT comment on M cKinnon view s on overseas

students; co-ordination D EBT /DILGEA

21. Teague D57 1 M inister's powers re decisions to notify DILGEA

re overstayers; cases of intervention; instructions to reverse recom m endations after governm ental representation; details; PM involvement; any acceptable reasons for governm ent intervention; reasons in late 1987; action taken, consequences; student concerned, connections

22. Teague D 57 r T otal figures for overstayers; type of overstayers;

breakdown by country

23. Teague D57 r Number of students ow ing fees; provision for

collection of fees; estim ated uncollected fees 89-90

24. Teague D57 r Reasons for lack o f enforcem ent of ELICOS

a tten d a n ce req u irem en ts; v isa e x te n sio n

recom m endations for non-attending students, per State

25. Teague D58 1 Overseas criminals entering Australia on student

visas since 1987; narcotic carriers on student visas; breakdown by countiy; A FP notification;

departm ental monitoring; effectiveness o f that monitoring; departmental knowledge of organised rackets re student visas; use o f program via N ew Zealand; use of program by Columbian drug ring; w hen/if M inister advised, action taken; liaison w ith Interpol

26. Kemp D61 1 Copy o f S k i l l s h a r e - i t ' s w o r k i n g

27. Kemp D61 1 Economic costs o f illiteracy;

Kemp D73 r evaluation of programs

28. Kemp D63 1 Austudy ineligibility reasons

143

29. Tierney D68 r Breakdown o f client services sub-program figures

30. Teague D 69 1 A m ount o f labour adjustm ent package to SA

workers

31. Teague D69 r R eason for delay in tabling N B E E T response to

LAS review

32. Tierney D 72 1 E ngineer recruitm ent from abroad

33. Kemp D72 r Curricula relevance to both sexes; problems to

ju stify program

34. Kemp D 72 r H igher education econom ic and social objectives;

determ ination of; com patibility o f long-term independent approach w ith annual priorities

35. Kemp D 72 r E stablishm ent o f priorities under National

Priorites R eserve Fund; reasons for them;

n ecessity for D E B T involvem ent; reasons for & success o f M ACSP

36. Kemp D72 r E xten t o f overcrow ding in tertiary institutions;

institutions affected; reasons for; planned action to deal w ith the problem

37. Kemp D73 1 U nm et demand; full fee students considered; plans

to address problem

38. Kemp D 73 1 Funding o f research organisations compromises

their independence; other funding preferable; e ffe c t iv e n e s s o f I n te r n a tio n a l R esea rch

Corporation

39. Kemp D73 1 D raftin g o f E d u cation S ervices (Export

R egulations) Bill; reliance on regulations; reasons for sm all EM SS take-up; choice o f Australian equity criteria; use o f national priorities criteria in sorting applicants; relevance to foreign nationals; review of overseas scholarships; Australian-Greek Travel Awards Schem e

40. Kemp D73 r B enefits from C om m onwealth intervention in

TAFE; costs; m eans o f reduction

41. Kemp D73 r Independent evaluation o f Special Employment

Education and Income Support program;

availability

42, Kemp D73 r C ost o f abolition o f assets test AUSTUDY,

ABSTUDY, AIC; w ould AU STUDY recipients stay at school w ithout assistance; is 16 too old to

intervene to im prove retention; reasons for choice o f 16; need to w eight factors relevant to retention; likely change to career paths w ithout AUSTUDY & why; policy re counter cheques, emergency paym ents; initial AUSTU D Y paym ent delays;

application processing times; staffing EIS; results o f devolution to CES.

144

43. Short pre Currency o f unem ploym ent figures using SPREE

methodology; more recent inform ation than June 1990; availability; Developments in Regional Labour Markets 1983-87 com pletion, printing details; costs

44. Tambling pre Resources to TEM PLINE, Darwin; why required

Aboriginal and Torres Strait Islander Commission

No. Senator Page Subject

1. Tambling D75 1 D etails o f ATSIC contribution to A ustralian

Council o f Churches

2. Tam bling D75 r N orthern Land Council redundancy packages

3. Tambling D75 r Jaw oyn Association funding; Mr Ah Kit's

em ploym ent

4. Tambling D77 r Cost disadvantages o f ATSIC relocation to

Com m onwealth Centre, Alice Springs

5. Teague D80 1 ATSIC staff transfers from Departm ent, ADC

6. Teague D80 r Frequency o f Minister's m eetings w ith heads of

major Aboriginal organisations

7. O'Chee D82 1 Pormporaaw com m unity project

8. Kemp D 84 r Services, organisations receiving health funding

from $7m additional vote

9. Teague D85 r Lady Barron housing funding, repairs

10. Teague D85 r Trefoil Island - purchase date, price; spending on

development; rental receipts; m uttonbird harvest numbers

11. Teague D87 r M inisterial responsibility for Imparja subsidy for

AUSSAT licence

12. Tambling pre Com m unity support for Yuendumu; outstanding

applications

13. Tambling pre T im ing o f Government responses to 8 House of

Representatives Standing Com m ittee reports; reason for delays

Immigration, Local G overnm ent and Ethnic Affairs Portfolio

No. Senator Page Subject

1. Teague D92 1 Sum m ary of changes to DORS procedures

2. Teague D92 1 DORS applications, broken down by country

3. Kemp D93 r PRC nationals who complied w ith student visa

conditions

4. Teague D95 r Boat people's likelihood o f success in application

for perm anent residence in their country of origin

5. Kemp D96 1 Contrived marriages identified in compliance

program

6. O'Chee D97 1 Number of ELICOS institutions

145

7. O'Chee D 97 1

8. O'Chee D 97 1

9. O'Chee D97 1

10. O'Chee D 97 r

11. Teague D 106 1

Num ber o f students failing to m eet attendance requirem ents N um ber o f stu d en ts w hose visas w ere cancelled on attendance grounds

State variations in visa cancellation G uidelines for visa cancellation officers O verseas crim inals entering A ustralia on student visas since 1987;

narcotic carriers on student visas; breakdown by country; A FP notification; departm ental m onitoring;

effectiveness o f th a t m onitoring; departmental knowledge o f organised rackets re student visas; use o f program via N ew Zealand; use o f program by Columbian drug ring; when/if

M inister advised, action taken; liaison with

Interpol

146

PARLIAMENT OF AUSTRALIA · T H E S E N A T E

SENATOR SHIRLEY WALTERS SENATOR FOR TASMANIA

PARLIAMENT HOUSE

CANBERRA ACT 2600 AFTER HO UR S

TEL (0 0 2 ) 25 2384

FAX: (0 0 2 : 25 2291

MARINE BOARD BUILDING I FRANKLIN W HARF

G P O BO X '< OH. HOBART 7001

TEL ( 0 6 ) 2 7 7 3680 FAX ( 0 6 ' 277 3679

H i . (0022 34 1409

FAX 0 0 2 ; 31 0904

7 May 1991

The Secretary Senate Estimates Committee D Parliament House CANBERRA ACT 2600

Dear Sir,

I recommend that the following matters relating to the estimates of expenditure referred to the Committee be further examined especially in relation to:

Department of Employment, Education and Training Sub Program 4.4 (Austudy)

Yours sincerely,

Shirley Walters Senator for Tasmania.

PARLIAMENT OF AUSTRALIA · THE SENATE

SENATOR GRANT TAMBLING SENATOR FOR THE NORTHERN TERRITORY

SH A D O W MINISTER FOR REGIONAL DEVELOPMENT, EXTERNAL TERRITORIES AND N O RTH ERN AUSTRALIA

NORTHERN TERRlTORy ZC-JNTR* L'BERAl

DARWIN OFFICE MITCHELL DLAZA. DARWIN TELEPHONE iO;=R 613567

f a c s i m i l e : 0 6 v · 5 13 0 2 2

POSTAL ADDRESS CPO BOX 4 |3 b

DARWIN. NT 060! AUSTRALIA

C A N B E R R /· O c FlCE

P a R l ,A M E N t m O 'J S E

T E L E P H O N E t l " 1" 34 3t-

FACSlM lE ,:,t 177 3704

Secretary Estimates Committee D Parliament House CANBERRA ACT 2600

DC» -Τ' lEVLt

O·" A V S T H » ,

RESERVATION BT SENATOR GRANT TAMBLING

I recommend that the Senate father examine the following matters relating to the questions on notice put by me to the Department of Immigration, Local government and Ethnic Affairs:

Program 1.6: Compliance

The high commitment of funds for the surveillance, apprehension, prosecution and repatriation of illegal fishermen found in Australian waters by the departments of Primary Industry and Energy, Immigration, Defence, Industry Technology and Commerce

(Australian Customs Service), Foreign Affairs and Trade, Attorney General's and the Aboriginal and Torres Strait Island Commission, causes me concern and I am of the opinion that a more concerted policy approach should be adopted by the government.

7 May 1991

149

ESTIM ATES COMMITTEE D H ANSARD INDEX

THURSDAY, 18 APRIL 1991

Administrative Services Portfolio Department of Administrative Services

List o f officers in attendance D1

Chairman's opening statem en t D2

M inister's opening statem ent D3

Trust account operations - effect o f consolidation D4

- disaggregation D4

D epartm ental Board o f M anagem ent - contracts w ith D epartm ent D5

Com petition w ith the private sector D5

Privatisation o f activities D6

Program 1 - Property Services

Proposed sale of C om m onwealth Parliam ent Offices, M elbourne D6

A ccounting inadequacies revealed by Auditor-G eneral D6

Leasing incentive - rent-free periods and up-front paym ents D7

Office accommodation for parliam entarians D8, D29

Royal com m ission into NSW building industry D8

C onstruction com panies set up by ACS D8

Proposed Com m onwealth office tow er in Brisbane D9

Accom m odation for the ATO in Brisbane D9

MPRA hearing into staff grievance m atter at T indal RAAF base DIO

Criminal prosecutions o f contractors or departm ental staff D l l

ACS - V ariations from original appropriations D12

Fees and com m issions for non-C om m onw ealth projects D13

Expenditure on redundancies by ACS D15

Program 2 - Sales and Services

Rules governing use o f private-plated vehicles D15

Comcar restructuring D15, D19

Em ploym ent of wom en as Comcar drivers D16

Early retirem ent and recruitm ent programs D16

Recall o f vehicles by m anufacturers D17

Comcar charges and procedures ^ 18

N on-governm ent work perform ed by Comcar ^ 20

A ustralian G overnm ent A nalytical Laboratories D20

Tender for computer consum ables - PCA3 ^^1

150

Tenders for the supply of computer services to other Commonwealth departments - potential conflicts of interest

Transition from compulsory to preferred service provider Common-use contracts - exceptions for agencies - commission

- suppliers' liability - liability insurance Joint venture partners with DAS

Grant to ANZFAS Fraud control unit Staff employed under the, MOPS Act Supply of office equipment to MPs Overtime payments to MPs' staff

Telephone bills in electorate offices Use of electorate offices for party political and electioneering purposes

Program 4 - Australian Electoral Commission

Check survey of pre-election enrolments Roll maintenance - habitation reviews Disclosure of campaign donations Redistributions - New South Wales, Queensland, South Australia

and Tasmania Imprisonment for non-payment of fine for failure to vote Statistics - failure to vote Questions on Notice from Senator Richard Alston Questions on Notice from Senator Jocelyn Newman

Employment, Education and Training Portfolio Department of Employment, Education and Training

List of officers in attendance

Program 1 - Schools

Children with disabilities - grants to schools Retention rates for Aboriginal children Education for girls in mathematics and science Education of intellectually gifted children Illiteracy

Program 3 - Government and Corporate Services

D21

D22 D22 D22 D23 D23 D24 D26 D27 D28 D28 D29 D29 D29

D29

D31 D31

D32, D34

D33 D33 D33 D34 D37

D38

D39 D40 D40 D40

D41, D61

151

Overcrowding in tertiary institutions D4 1

Research grants - ANU D4 2

Research projects of national priority D42

International awards and exchanges D43

- performance indicators D4 3

- increases in fees D4 5

- duration of studies D46

- increases in allowances D46

- financial collapse of institutions D47

- allowances for air fares D47

- reaction of overseas governments to cost-of-living increases D47 - basis of adjustment of allowances D48

- shift to high-cost courses D48

- effect on intake of Australian students D48

Description of programs D49

Number of full-fee students D49

Countries of origin of students D50

Assessment of individual schemes D50

Questions on notice from Senator Baden Teague D51

Proposed ministerial statement D53, D55

Standing Orders - application to Additional Estimates D53

Adjournment - private meeting D55

Questions on notice from Senator Baden Teague D56

Program 3 - Skills Formation

Expenditure variation - TAPE Centre for Research and Development Ltd D58 Unemployed apprentices - additional training expenditure D59 Industry training guarantee scheme D60

Program 4 - Special Employment Education and Income Support

Skillshare D60

Literacy D61

Austudy - verification of attendance D61, D67

- performance indicators D62

- grounds for refusal of applications D63

- valuation of rural properties D63

- percentages of students receiving Austudy D65

- apportionment between secondary and university students D65 - number of students covered D65

- promotional activities D65

- running costs D66

- cost of abolition of assets test D67

- coping with peak activity periods D67

- procedures for dealing with persons receiving Austudy improperly ^68

Program 2 - Higher Education

1 5 2

D68

Aggregation of diverse items Pay increases for professional officers Administrative service tests CES staffing

Program 6 - Corporate Services and Portfolio Advising

NBEET - delay in tabling report on the Institute of Advanced Studies Tabling delays generally Additional computer equipment Overseas recruitment by Defence Department Questions on notice from Senator Rod Kemp

Aboriginal and Torres Strait Islander Commission

Minister's opening statement World Council of Churches Congress Redundancy packages - Northern Land Council Community Development Employment Program Unauthorised payments to Daguragu community Location of Alice Springs office Proposed purchase of Glen Helen Lodge Membership of the ATSIC Council First Council meeting Transfer of staff from ADC and former department Location of ATSIC head office Meeting between Minister and Aboriginal organisations Capital works - tender and quotation practices Program underruns Selection of successful tenderers

Program 5 - Labour Market Operation

Program 1 - Land and Economic Development

Community Development Employment Projects

Program 2 - Social Advancement

Aboriginal health and medical services Housing and infrastructure needs Housing at Lady Barron, Tasmania Purchase of Trefoil Island, Tasmania Rental assistance for Aboriginal students Fire damage to hostels - insurance

Program 3 - Heritage and Culture

Imparja Television - Commonwealth subsidisation of transponder costs

D68, D71 D68 D68 D69

D69 D70 D71 D71 D72

D74 D75 D75 D75 D77 D77 D78 D79 D79 D79

D80, D88 D80 D81 D82 D83

D83

D83 D85 D85 D85 D86 D86

D86

Program 4 - Corporate Services

Office relocation and outfitting Qgg

Immigration Local Government and Ethnic Affairs Portfolio Department of Immigration, Local Government and Ethnic Affairs

List of officers in attendance Dgg

Arrival of criminals with student visas D89

Program 1 - Migration and Visitor Entry D89

Foreign exchange losses D89

Use of country profiles in consideration of visa applications D89 BIR Conference - Government consideration of issues raised D90 Payments to Refugee Council and UNHCR D91

Determination of refugee status D91

Increase in applicants for refugee status D92

Number of illegal Chinese students D93

Cambodian boat arrivals D93

Contrived marriages D96

Compliance of students with terms of student visas D96

Ability of students to earn income D100

Enforcement of entry permit conditions D101

Entry of Triad members under ELICOS visas D101

Detection and apprehensions of illegal immigrants D101

Law suits requiring additional appropriations D103

Program 2 - Settlement

Adult migrant education program D103

Savings - accommodation centres D104

- International Organisation for Migrant Loan Funds D105

- community relations strategy D105

- grant-in-aid programs D105

- interpreting and translation services D105

Questions on notice from Senator Baden Teague D106

Allowable questions D106

153

155

THE SENATE

ESTIMATES COMMITTEE D

MINUTES OF PROCEEDINGS

NO.9

THURSDAY 18 APRIL 1991

1. MEETING: The Committee met in public session at 2.03pm in Senate Committee Room 2S1. Senator Zakharov took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1990-1991: ADMINISTRATIVE SERVICES PORTFOLIO. The Committee considered the Proposed Additional Expenditure of the Department of Adminstrative Services.

In attendance was Senator the Hon. Nick Bolkus, Minister for Administrative Services, accompanied by the following officers:

Department of Administrative Services -Mr H. Jacka, Executive General Manager, Property Services Mr A. McKenzie, Director, Group Coordination and Marketing Mr R. Hoy, General Manager, Australian Property Group Mr B. Holden, General Manager, Australian Estate Management,

Australian Property Group Mr W. Peel, Assistant General Manager, National Estate Services, Australian Property Group Mr G. Weir, Assistant General Manager, Business Management,

Australian Property Group Mr P. Ferrari, Acting Assistant General Manager, Accommodation Services, Australian Property Group Mr I. Woonton, General Manager, Project Services,

Australian Construction Services Mr K. Sweeney, Business Manager, Project Services, Australian Construction Services Mr T. Barrell, General Manager, Asset Services,

Australian Construction Services Mr P. Rake, Business Manager, Asset Services, Australian Construction Services Mr G. Lindsay, General Manager, Australian Surveying and

Land Information Group Mr W. Lamond, Assistant General Manager, Corporate Affairs, Australian Surveying and Land Information Group Mr J. Sheaves, Assistant General Manager, Client Services,

Australian Surveying and Land Information Group

23

156

Mr D. White, Assistant General Manager, Information Services, Australian Surveying and Land Information Group Mr D. Hobson, Manager, Corporate and Finance, Australian Surveying and Land Information Group Mr M. Coleman, General Manager, Australian Valuation Office Mr C. McAlister, Executive General Manager, Supply Services Mr G. Bashford, General Manager, Group Marketing, Strategic

Planning and Financial Control Mr W. Gray, General Manager, FLEET (Transport and Storage) Mr M. Nelson, General Manager, COMCAR (Transport and Storage) Mr S. Palywoda, General Manager, Supply and Distribution Mr R. Rubie, National Manager, Distribution Services Mr P. Grills, National Manager, Printing and Publishing Ms G. Roper, National Manager, Removals Services Ms J. Mills, Acting National Manager, Purchasing Services Mr C. Dahl, Australian Government Analyst Mr P. Dawson, General Manager, Australian Protective Service Mr R. Hewitt, Assistant General Manager, Program Finance and

Systems Mr A. Hillier, Executive General Manager, Government Services Mr J. Mellors, General Manager, Corporate Policy, Planning

and Treasury Mr R. Lansdowne, Assistant General Manager, Financial Policy and Budgets Mr J. Forestier, General Manager, People and Support Mr P. Taylor, General Manager, Systems and Technology

Division Mr V. Shevchenko, Assistant General Manager, Standards and Contracts Mr J. Gavin, Formerly Secretary to the Royal Commission into

Aboriginal Deaths in Custody Mr D. Dahlberg, Acting General Manager, Overseas Property Group Mr P. O'Neill, Assistant General Manager, Parliamentary and

Ministerial Services Mr S. Perry, Assistant General Manager, Corporate Performance Review and Audit Mr A. Butler, General Manager, Procurement Policy and

Government Services Division Mr B. Cox, Electoral Commissioner Mr D. Muffet, Deputy Electoral Commissioner Mr P. Dacey, Assistant Commissioner, Development and

Research Ms K. Rehn, Assistant Commissioner, Industrial Elections Mr P. Skinner, Assistant Commissioner, Corporate Services Mr T. Willson, Assistant Commissioner, Information and

Education Mr D. Farrell, Director, Roll Maintenance

157

Mr A. Wall, Director, Internal Audit Mr M. Maley, Director, Research, Legislative Projects and FOI Ms L. Gladwin, Director, Funding and Disclosure

Mr A. Ray, Director, Resources Management Ms A. Bright, Assistant Director, Resources Management

Department of Finance -Ms M. Messner, Chief Finance Officer Mr A. Singer, Senior Finance Officer Mr B. Hackett, Senior Finance Officer

The Chair called on the following programs and sub-programs of proposed expenditure for consideration of the Committee:

1. Property Services

1.1 Australian Property Group 1.2 Australian Construction Services - Project Services 1.3 Australian Construction Services - Asset Services 1.4 Australian Surveying and Land Information

2. Sales and Service

2.1 Transport and Storage

3. Government and Corporate Services

3.1 Corporate Management 3.3 Special Inquiries (Royal Commissions) 3.5 Overseas Property Services 3.6 Parliamentary and Ministerial Services

4. Australian Electoral Commission

4.1 Parliamentary Elections and Referendums 4.3 Program Support

The Committee concluded its examination of the proposed additional expenditure for the Department of Administrative Services 1990-1991, subject to an undertaking by the Minister to provide additional information to the Committee.

25

158

3. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1990-1991, EMPLOYMENT, EDUCATION AND TRAINING PORTFOLIO. The Committee considered the Proposed Additional Expenditure of the Department of Employment, Education and Training.

In attendance was Senator the Hon. Nick Bolkus, representing the Minister for Employment, Education and Training, accompanied by the following officers:

Department of Employment, Education and Training -Mr I. Lindenmayer, Deputy Secretary Mr A. Mawer, Principal Adviser, Client Services Division Mr D. Power, Assistant Secretary, Planning and Performance Branch Mr R. Harvey, Assistant Secretary, Student Services Branch Mr N. Harrigan, Assistant Secretary, Youth Bureau Mr W. Mutton, Assistant Secretary, Policy and Review Branch Dr E. Dudley, Director, Policy and Analysis Section Mr B. Watt, Director, Profiles and Academic Development Section Mr A. Vervoorn, Director, Planning and Review Section Mr T. Karmel, Principal Adviser, Economic and Policy Analysis Division Ms M. Lovett, Assistant Secretary, Schools Programs Branch Ms F. Hinton, Acting Assistant Secretary, Resources and Consultations

Branch

Ms C. Wildermuth, Director, Resources Section Ms S. King, Acting Assistant Secretary, Resource Management Branch Mr J. Muir, First Assistant Secretary, International Division Mr L. Riggs, Assistant Secretary, Education Exports Branch Mr D. Fooks, First Assistant Secretary, Vocational Education and Training

Division

Mr A. Greer, Assistant Secretary, Industry Training Program Support Branch Ms V. Greville, Acting Director, Training Guarantee Unit Mr J. McCarthy, Principal Adviser, Programs Division Ms S. Butler, Assistant Secretary, Community Strategies Branch Mr J. Burston, Acting First Assistant Secretary, Systems Division Mr P. Grant, Principal Adviser, Commonwealth State Relations Ms C. Koopman, Principal Executive Officer, National Board Secretariat

Other Attendees - Co-ordination/observers -Ms J. Chalker, Assistant Director, Running Costs Section Mr C. Storen, Assistant Director, Program Resources Section Mr V Gakhar, Assistant Director, Program Resources Section Ms A. James, Program Resources Section Ms C. Marsh, Program Resources Section

26

159

Aboriginal and Torres Strait Islander Commission -Mr W. Gray, Chief Executive Officer Dr P. Shergold, Deputy Chief Executive Officer Mr R. Beadman, General Manager, Policy Development

Mr W. Miller, General Manager, Policy Coordination Mr R. Palfreyman, General Manager, Corporate Services Mr G. Menham, General Manager, Commonwealth/State Relations Secretariat,

Mr M. Dillon, Director, Office of Evaluation and Audit Mr J. Eldridge, Assistant General Manager, Finance Branch Mr T. Feltham, Assistant General Manager, Corporate Planning and Review Branch

Mr P. Goggin, Assistant General Manager, Community Support Policy Branch Mr G. Jones, Assistant General Manager, Land Management Branch Mr R. Morony, Assistant General Manager, Economic Initiatives Branch Mr P. Schnierer, Assistant General Manager, Social Support Policy Branch

Mr M. Stewart, Assistant General Manager, Regional Co-ordination Branch Mr N. Bouhafs, Principal Legal Officer Mr P. Mackin, Manager, Budget Co-ordination Mr C. Foord, General Manager, Commercial Development Corporation

Aboriginal Hostels Ltd -Ms E. Barolits, Acting General Manager Mr J. Rooks, Company Secretary

Australian Institute of Aboriginal and Torres Strait Islander Studies -Mr W. Dix, Principal

Aboriginal and Torres Strait Islander Commercial Development Corporation -

Mr B. Kimmings, Financial Controller

Department of Finance -Mr A. Hunt, Senior Finance Officer, Labour and Culture Division Ms K. Woods, Chief Finance Officer, Labour and Culture Division

The Chair called on the following programs and sub-programs of the proposed expenditure for consideration of the Committee:

1. Schools

1.1 Participation, Retention and General Competence

27

160

2. Higher Education

2.1 Higher Education System 2.2 Targeted Research and Scientific Development 2.3 International Students

3. 3.1 Technical and Further Education 3.2 Entry Level Training 3.3 Industry Training Support

4. Special Employment Educationand Income Support

4.2 Skillshare 4.3 Literacy 4.4 Education Income Support

5. Labour Market Operations

5.1 Client Services 5.3 Industry and Regional Labour Adjustment Assistance 5.4 Recognition of Overseas Skills

6. Corporate Services and Portfolio Advising

6.1 Executive and Corporate Coordination 6.2 Management Services 6.4 Portfolio Advising 6.6 General Services

7. Aboriginal and Torres Strait Islander Commission

1. Land and Economic Development

1.2 Socio-economic Development

2. Social Advancement

2.1 Health 2.7 Communications Infrastructure 2.8 Aboriginal Hostels Limited

3. Heritage and Culture

3.3 Broadcasting and Communications

4. Corporate Services

4.2 Corporate Support

28

161

The Committee concluded its examination of the proposed additional expenditure for the Department of Employment, Education and Training, 1990-1991, subject to an undertaking by the Minister and the officers of the Department to provide additional information to the Committee.

4. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1990-1991: IMMIGRATION, LOCAL GOVERNMENT AND ETHNIC AFFAIRS PORTFOLIO. The Committee considered the Proposed Additional Expenditure of the Department of Immigration, Local Government and

Ethnic Affairs.

In attendance was Senator the Hon. Nick Bolkus, representing the Minister for Immigration, Local Government and Ethnic Affairs, accompanied by the following officers:

Mr W. Gibbons, Deputy Secretary .

Mr I. Simington, Principal Adviser, Refugee and International Affairs Mr A. Struik, Deputy Director, Bureau of Immigration Research

Mr D. Wheen, First Assistant Secretary, Migration Division Mr P. Hughes, Assistant Secretary, Migrant Entry and Citizenship Branch

Ms J. Gordon, Assistant Secretary, Legislation and Review Branch Mr M. Sullivan, First Assistant Secretary, Temporary Entry Compliance and Systems Division Mr E. Joseph, Assistant Secretary, Visitor and Temporary

Entry Branch Mr D. Storer, First Assistant Secretary, Settlement and Ethnic Affairs Division Mr D. Page, Assistant Secretary, Settlement Branch Mr T. Griffiths, Assistant Secretary, Determination of

Refugee Status Branch Mr M. Lynch, First Assistant Secretary, Office of Local Government Division Ms P. McCahey, First Assistant Secretary, Corporate

Operations Division Mr E. Brookbanks, Assistant Secretary, Resource Management Branch Mr B. Strangio, Director, Resources Section

Mr D. Gastello, Assistant Secretary, Executive Support Branch Mr J. Godfrey, Director, Parliamentary Committees and Public Information Section

Mr G. Short, Director of Research, Immigration Review Tribunal

29

162

Department of Finance

Ms K. Woods, Chief Finance Officer, Labour and Culture Division

The Chair called on the following programs and sub-programs of proposed expenditure for consideration of the Committee:

1. Migration and Visitor Entry

1.1 Immigration and Population Research 1.2 Permanent Entry 1.5 Review

1.6 Compliance 1.7 Program Management, Evaluationand Support

2. Settlement

2.1 Language 2.3 Access to Services

3. Corporate Services

3.3 Adminstrative Support and Services

The Committee concluded its examination of the proposed additional expenditure for the Department of Immigration, Local Government and Ethnic Affairs, 1990-1991, subject to the undertaking by the Minister and the officers of the Department to provide additional information to the Committee.

6. ADJOURNMENT: The Committee adjourned at 11.45pm.

7. ATTENDANCE: Senators Zakharov (Chair), Kemp, Loosley, Maguire, Parer, Teague and Tierney. Senators O'Chee and Tambling also attended.

CONFIRMED:

Senator Olive Zakharov Chair

30

163

THE SENATE

ESTIMATES COMMITTEE D

MINUTES OF PROCEEDINGS

NO. 10

THURSDAY, 18 APRIL 1991.

1. MEETING: The Committee met in private session at 6.05pm in the office to Senate Committee Room 2S1. Senator Zakharov took the Chair.

2. The Committee considered the attitude of the Minister for Administrative Services, Senator Nick Bolkus, to questions ranging beyond the scope of programs covered in the additional Estimates.

3. The Committee agreed, after discussion, and after consultation with the Minister, to limit the number of general questions on the understanding that the Minister would agree to answer them. The Committee also agreed, after discussion, to accept the Chair's ruling on

matters of relevance in the line of questioning pursued by the members of the Committee.

4. ADJOURNMENT: The Committee adjourned at 7.35pm.

5. ATTENDANCE: Senators Zakharov (Chair), Kemp, Loosley, Maguire, Teague and Tierney. Senator O'Chee also attended.

CONFIRMED:

Senator Olive Zakharov Chair

31

■

165

THE SENATE

ESTIMATES COMMITTEE D

MINUTES OF PROCEEDINGS

N O .ll

TUESDAY, 7 MAY 1991

1. MEETING: The Committee met in deliberative session at 1.55pm in the government advisers annex to the Senate Chamber. Senator Zakharov took the Chair.

2. MINUTES: The Committee confirmed the minutes of meetings Nos 9 and 10 held on 18 April 1991.

3. REPORT: The draft report of the Committee, previously circulated to members, was adopted as a report of the Committee, subject to an amendment by Senator Teague which was agreed to.

4. ADJOURNMENT: The Committee adjourned at 1.59pm.

5. ATTENDANCE: Senators Zakharov, Kemp, Parer, Teague and Tierney. An apology was received from Senator Maguire.

6. CERTIFIED CORRECT:

Senator Olive Zakharov Chair

167

AUSTRALIAN SENATE

ESTIMATES COMMITTEE E

REPORT TO THE SENATE

May 1991

169

ESTIMATES COMMITTEE E

REPORT TO THE SENATE

Recommendation that Additional Expenditure be approved

1. Estimates Committee E presents its report to the Senate.

2 . On 1 4 March 1 9 9 1 the Senate referred to the Committee t h e

Particulars of proposed additional expenditure for the s e r v i c e

o f the year ending on 30 June 1 9 9 1 , the Particulars of c e r t a i n

proposed additional expenditure in respect of the year ending o n

3 0 June 1 9 9 1 and the votes contained in the Schedule t o t h e

Appropriation Act (No. 3 ) 1 9 9 0 - 9 1 in relation to the f o l l o w i n g

Departments:

- Attorney-General's

- Community Services and Health

- Veterans' Affairs

3 . These proposed additional expenditures were considered b y

the Committee, which took into account the explanatory n o t e s

provided by the portfolios and the information obtained t h r o u g h

its hearing on 1 8 April 1 9 9 1 .

4. The Committee recommends that the Senate approve, without

amendment or request for amendment, expenditure in accordance

with the additional estimates referred to the Committee.

ATTORNEY-GENERAL'S DEPARTMENT

Security of Family Court Buildings in Adelaide

5. The Committee noted with considerable concern that the

Family Court premises in Adelaide are inadequate and may present

a security threat to the safety of Family Court Judges, court

staff, lawyers and clients. The Chief Executive Officer of the

Family Court informed the Committee that it was correct that the

building is fundamentally not able to be secured adequately.

tl

170

6. The Committee considers that improvement of the security of the Adelaide court should be accorded a high priority.

DEPARTMENT OF COMMUNITY SERVICES AND HEALTH

Secrecy provisions of the National Health Act and Parliamentary

Scrutiny

7. The Committee is concerned there is potential for privacy provisions in legislation to be used to avoid proper

parliamentary scrutiny of government expenditure. Two instances where the Committee was prevented from scrutinising aspects of

public expenditure on secrecy grounds occurred during examination of the additional estimates for the Department of Community

Services and Health. These were the approval of a new pharmacy

in the Port Macquarie area and administration of the vocational

register of general practitioners.

Approval of new pharmacy in the Port Macquarie area

8. The Pharmacy restructuring scheme came into effect on 17

December 1990. The purpose of this scheme is to reduce the number of pharmacies operating in areas where too many currently exist.

A once only payment is made to pharmacies dispensing under the

pharmaceutical benefits scheme (PBS) which close or amalgamate with another pharmacy.

9. For the period of operation of the restructuring scheme, the

closure or amalgamation of a PBS pharmacy precludes approval for a new PBS pharmacy’ within. a five kilometre radius of that closure.

10. The Committee's attention was drawn to a possible anomaly in the administration of this scheme in the Port Macquarie area.

Although a closure payment was made, a new pharmacy approval has

been granted. Departmental officials informed the Committee that the new approval was granted under the sunset provisions of the legislation, that is, a financial commitment to open a new PBS pharmacy had been made before 8 August 1990, and was therefore

171

assessed under the old rules.

11. This information conflicted with information possessed by

Committee members, who had received information that the

developer of the complex in which the new pharmacy is located was

still negotiating with other pharmacists in the area as late as

23 August, whereas the person who was granted permission to open

the new pharmacy had allegedly entered into a firm financial

agreement with the developer concerning the new pharmacy prior

to 8 August.

12. The Committee accordingly requested that documentation

relating to the approval of the application be provided. However,

the Department was reluctant to provide the information on the

grounds of a probable conflict with the secrecy provisions of the

National Health Act.

13. Departmental representatives proposed to seek the approval

of the individual concerned for the release of the information.

However, while this particular question may be resolved if

permission to release the information is granted, it is an issue

proper for consideration whether public scrutiny of the

administration of government programs should be restricted by law

in a way that leaves important questions unanswered.

14. The Committee was informed that following representations

on this matter by other pharmacies in the area, the matter was

investigated by the Health Insurance Commission together with a

representative from the Office of the Australian Government

Solicitor, and it was found that the approval was properly given

to the pharmacist.

15. However, information put before the Committee conflicts with

the findings of the Government solicitor.

16. The Committee raises as a matter of importance the issue of

how Estimates Committees can best examine government expenditure

when secrecy provisions limit their access to all relevant

information.

172

Vocational register of General Practitioners

17. The vocational register is a system through which general

practitioners meeting certain criteria, as determined by the

Royal Australian College of General Practitioners, can register

with the Health Insurance Commission, so that their patients are

eligible for a higher rebate. The HIC is responsible for

providing patients with a list of vocationally registered

practitioners in their area on request. A list of all the

vocationally registered general practitioners in up to five

postcode areas is provided.

18. The Committee was concerned that to date, insufficient

attention has been devoted to ensuring that the information on

the register is accurate. A spot check done by a member of the

Committee showed that the register contained much incorrect

information. For example, when an attempt was made to contact a

doctor on the register, it was found that the doctor had not been

at the address given for some years.

19. Representatives of the HIC acknowledged that many of the

practice locations are not active. A process has now been

implemented to identify only the most active of the doctors’

practices.

20. The Committee requested that a copy of the vocational

register be provided, but was informed that access to the

complete register was restricted on the grounds that it would

breach secrecy provisions. It was stated that the section under

which information was released is a section put into the

legislation to assist members of the public to know who are the

medical practitioners from whom they might seek treatment.

21. The Minister undertook to examine further the statutory

requirements for secrecy surrounding the vocational register to

see if it could be provided.

173

Conclusions

22. The Committee considers that public expenditure s h o u l d b e

subject to Parliamentary scrutiny. It is also conscious o f t h e

need in some circumstances for privacy and secrecy. I t s e e s a

need to have these two competing requirements properly b a l a n c e d

and respectfully suggests that the Senate deal with the i s s u e a t

an appropriate time.

Appreciation for assistance given

23. The Committee is grateful for the assistance given by the

Minister for Justice and Consumer Affairs, and officers o f the

departments examined. Written answers to questions taken o n

notice during the public hearing will be tabled in the Senate.

Recommendation that some matters be further examined

24 . The Committee recommends that unanswered questions taken o n

notice during the public hearing for which replies have y e t t o

be received, as listed in Attachment A, be open to f u r t h e r

examination by the Senate.

B .Cooney

Chairman

174

PARLIAMENT OF AUSTRALIA ■ THE SENATE

SENATOR AMANDA VANSTONE, 150 HINDLEY STREET. ADELAIDE 5000. PH. (08) 212 1744

7 May 1991

Mr Peter Hallahan Secretary Estimates Committee E Parliament House CANBERRA ACT 2600

Dear Mr Hallahan,

By way of reservation I recommend that the following matters arising from the Committee's consideration of the Additional Estimates 1990-91 for the Attorney-General's Department on 18 April 1991 be subject to further consideration by the Senate:

. The contribution to the cost of justice made by the cost of transcripts in Federal jurisdictions;

. The need to ensure that the Australian Securities Commission is properly defining those activities which amount to dealing in securities for the purpose of identifying those persons who consequently need to be licensed.

AMANDA VANSTONE

H a l l a h a n .1

PARLIAMENT OF AUSTRALIA · T H E S E N A T E

SENATOR IAN G. CAMPBELL LIBERAL WESTERN AUSTRALIA

7th May 1991

Mr Peter Hallahan Secretary Estimates Committee E Parliament House

CANBERRA ACT 2600

Dear Mr Hallahan,

By way of reservation I recommend that the following matter arising from the Committee's consideration of the Additional Estimates 1990-91 for the Attorney-General's Department on 18 April 1991 be subject to further consideration by the Senate:

■ The contract between the Australian Securities

Commission and Holding Redlich.

• The application of the Australian Companies Number.

• And other matters relating to the establishment and administration of the Australian Securities

Commission.

Yours sincerely

SENATOR IAN G. CAMPBELL

SUITE 4. 1340 ALBANY HIGHWAY

JAMENT HOUSE CA NN IN G TO N . W A 6107

BERRA A.C.T. 2600 P .0 BOX 803 TEL. 09 356 2000

06 277 3955 CA N N IN G TO N , W A . 6107 008 191 033

06 277 3958 FAX 09 356 2377

176

PARLIAMENT OF AUSTRALIA · T H E S E N A T E

S EN A T O R IAN M A C D O N A L D

LIBERAL SENATOR FOR Q U E EN SLA N D

7th May, 1991.

Mr. Peter Hallahan, Secretary, Senate Estimates Committee Έ' , Facsimile No. 3899, Parliament House.

Dear Peter,

By way of reservation I recommend that matters in the Attorney General's Department relating to the lease of Kindersley House and the new lease of the City Centre building by the

Administrative Appeals Tribunal, and all subsidiary or associated matters related thereto (referred to pages E46, E47 & E49 of the Hansard recordings of the committee) be referred to the Senate for further consideration by the Senate.

Yours sincerely,

IAN MACDONALD. Senator for Queensland.

TOWNSVILLE (C77) 71 3066

CANBERRA

Telephones:

Addresses Facs-miies. ,077) 71 34'!

PO Box 2155 Townsville 4 " L

fO?C· ;I4 503 75 AdBctt Street -070 3' 005

PO Bex 2A5

,;C6 277 3665 Roor· Si55 -0 6 ; 277 395-

Parliament House Car β·~ 3 26:r

PARLIAMENT OF AUSTRALIA · T H E S E N A T E

S E N A T O R IAN M A C D O N A L D

LIBERAL SEN ATOR FOR Q UEEN SLA N D

7 May 1991

Mr Peter Hallahan Secretary Estimates Committee E Parliament House CANBERRA ACT 2600

Dear Mr Hallahan,

By way of reservation I recommend that matters in the Attorney General's Department relating to the Special Investigations Unit established under the War Crimes Act 1945 arising from the

changed financial circumstances in the period between the Budget and the Additional Appropriations be subject to further

consideration by the Senate.

Yours sincerely,

IAN MACDONALD

Telephones:

Addresses:

Facsimiles·

TOWNSVILLE

P O Be* 2*95 7 - w·'-· .··'■·e 4 Ci.

CAIRNS i0 7C' 314 303 75 Abbott Stree:

• 070 3i :i06

PC· B·:» 2i4 t

CANBERRA : 06 · 277 3665 Room SIRS ,06) 277 335R Parliament H?u· e

PARLIAMENT OF AUSTRALIA · THE SENATE

SENATOR JOCELYN NEWMAN SENATOR FO R TASMANIA

SH A D O W MINISTER FO R VETERANS' AFFAIRS SH A D O W MINISTER FOR DEFENCE SCIENCE A N D PERSONNEL

SH A D O W MINISTER ASSISTING THE LEADER O N THE STATUS OF W O M EN

7th May 1991

Mr Peter Hallahan Secretary Estimates Committee E

Parliament House CANBERRA ACT 2600

Dear Mr Hallahan,

By way of reservation I recommend that the following matters arising from the Committee's consideration of the Additional Estimates 1990-91 for the Department of Veterans' Affairs on 18 April 1991 be subject to further consideration by the Senate.

E n t r y F e e - A u s t r a l i a n W a r M e m o r i a l

1. With respect to the introduction of an entry fee at the

Australian War Memorial it is a matter of great concern that such a sensitive decision could be taken with so little formal consultation with interested parties. These interested parties include ex-service organisations, the Liberal and National Parties and the Democrats.

2. It is also of great concern that the Memorial Council only commissioned an overall review of options for raising money after the decision was taken by the Senate to disallow an entry fee. It strongly suggests that the decision to charge an entry fee was based on inadequate research and a lack of a thorough

consideration of other revenue raising options.

E x - S e r v i c e R e p r e s e n t a t i o n O n T h e A u s t r a l i a n W a r M e m o r i a l C o u n c i l

3. Correspondence incorporated during the hearings (Hansard pp E79-E81) highlighted the issue of Council membership.

4. Responding to proposals from the Minister regarding

membership the Chairman of Council, Dame Beryl Beaurepaire, suggested a compromise arrangement, with one of the

justifications for the compromise being that it would not again raise the question of ex-service association representation.

. . , / 2 .

I ELRHIN ROAD. LAUNCESTON. TAS. 7250 TELEPHONE '0 0 3 ' 3 4P 55 FACSIMILE C003> 341624

PARLIAM ENT h o u s e . CANBERRA. A C T 2 6 0 i 0 6 ’· : τ 7 3 « · : O c 277344=

5. That the ex-service community should be so deliberately marginalised is regrettable. Senator Tate acknowledged that such organisations have a very strong and legitimate interest in the affairs of the Memorial (Hansard p E84). It is almost certainly

the case that the issue of an entry fee would not have been

handled so badly had there been a member of Council formally representing the ex-service community.

Y o u r s s i n c e r e l y ,

180

THE SENATE

SENATOR JOHN HERRON LIBERAL SENATOR FOR QUEENSLAND

7 May 1991

Mr Peter Hallahan Secretary Estimates Committee E Parliament House CANBERRA ACT 2600

Dear Mr Hallahan,

By way of reservation I recommend that the initiative to

establish alternative birthing centres, funded by the

Commonwealth through the Department of Community Services and Health, be subject to further consideration by the Senate.

Under this initiative, the services of midwives are to be

promoted and remunerated up to a level exceeding the remuneration of general practitioners and obstetricians.

During consideration of the Additional Estimates on 18 April 1991, I asked whether procedures had been put in place whereby the outcome of that initiative in relation to maternal and foetal morbidity and mortality could be determined. My understanding is

that procedures have not been put in place, which is a matter for considerable concern.

Yours sincerely,

JOHN HERRON

P O . BOX 658, SPRING HILL. QLD 4004

G R OU ND FLOOR, 67 ASTOR TERRACE. SPRING HILL. QLD 4004. TEL (07) 832 3072. FAX (07) 832 3089 PARLIAMENT HOUSE. CANBERRA. ACT 2600. AUSTRALIA. TEL (06) 277 3440 FAX (06) 277 3709

P A R L IA M E N T O F A U S T R A L IA T H E S E N A T E

SENATOR KAY PATTERSON SENATOR FOR VICTORIA

6 May 1991

Mr P Hallahan Secretary Estimates Committee E The Senate Parliament House

Dear Mr Hallahan

By way of reservation, I recommend that the following matters relating to estimates of expenditure by the Department of Community Services and Health be further examined by the Senate:

1) Re-issue of Medicare Card; 2) Eligibility checking within the Pharmaceutical Benefits Scheme; 3) Introduction of the compulsory Claims Transmission

System; and 4) Those programs where the Department has given a

commitment in the hearings that they will answer a question or provide information on notice and have not done so to date.

Yours sincerely

(Dr^ Kav Patterson Senator for Victoria

KPtnr

ID FLOOR. 270 CLAYTON ROAD. CLAYTON. VIC 3168

1ENT HOUSE. CANBERRA. A C T 2600

TEL

TEL

(03) S44 7 4 1 (03) S44 55?r.

(06) 2 7 ' -a-

fish 182

P A R L IA M E N T O F A U ST R A L IA · T H E S E N A T E

SENATOR SHIRLEY WALTERS SENATOR FOR TASMANIA

PARUAMEN' h O.'SE CANBERRA -CT >.:·:■ TEL 06- Z " 3b9C

FAX 10 6 , l ~ ~ 3 6 70

- f ’ *R HOL'RS 002 · 25 1 3 ? 4 - - / 002! 2 : Z2RI

m a r ·.-; BOARD BUILDING

-'RANKLIN W H A r =

G PO B O / - HOBART 70C

Έ . (002) 34 I4C9 FA.* 0C2) 3i 0 9 0

7 May 1991

The Secretary Senate Estimates Committee E Parliament House CANBERRA ACT 2600

Dear Sir,

By way of reservation I recommend that the following matters relating to the estimates of additional expenditure referred to the Committee be subject to further consideration by the Senate.

Attorney-General's Department Appointment of Family Court Judges.

Department of Community Services and Health Assistance for people with disabilities; Health Promotion and Disease Prevention (AIDS); Financial Support for Individuals (Midwives);

Pharmaceutical Benefits Scheme; Supported Accommodation Assistance Program.

Yours sincerely,

Shirley Walters Senator for Tasmania.

J k rfe i 183

P A R L IA M E N T O F A U S T R A L IA T H E S E N A T E

PARLIAMENT HOUSE CANBERRA ACT 2600

TEL. >.061 277 '6 8 0 FAX; i0 6 ϊ 2"’ .·' j 6 /9

SENATOR SHIRLEY WALTERS S E N A T O R F O R TA SM A N IA

AFTER HOURS: TEL: (002) 25 2 »

FAX: (002) 25 229i

MAR 'Mf RQARD 5UHDINC

• RANKUN vA/HARF

U FO BO* - -OBART 700i

*■0 2 ; 34 1409

FAa 3 1 0904

The Secretary Senate Estimates Committee E Parliament House CANBERRA ACT 2600

8 May 1991

Dear Sir,

By way of reservation I recommend that the following matters relating to the estimates of additional expenditure referred to the Committee be subject to further consideration by the Senate.

Department of Community Services and Health Health Insurance Commission

Yours sincerely,

M __y

Shirley Walters Senator for Tasmania.

184

Addendun

PARLIAMENT OF AUSTRALIA T H E S E N A T E

PARLIAMENT HOUSE CANBERRA. ACT. 2600 TEL: (06) 277 3680

FAX: ,06) 277 3679

SENATOR SHIRLEY WALTERS SENATOR FOR TASMANIA

AFTER HOURS: T E L :(002) 25 2384 FAX: (002) 25 2291

MARINE BOARD BUILDING I FRANKLIN WHARF GPO BOX 760H. HOBART. 7001 TEL: (002) 34 1409

FAX: (002) 31 0904

8 May 1991

The Secretary Senate Estimates Committee E Parliament House CANBERRA ACT 2600

Dear Sir,

By way of reservation I recommend that the following matters relating to the estimates of additional expenditure referred to the Committee be subject to further consideration by the Senate.

Department of Community Services and Health Health Insurance Commission

Yours sincerely,

Shirley Walters Senator for Tasmania.

185

ATTACHMENT A

QUESTIONS TAKEN ON NOTICE

FOR WHICH NO WRITTEN REPLY

HAS BEEN RECEIVED

AS AT 7 MAY 1991

186

ATTORNEY GENERAL'S DEPARTMENT

Income maintenance payments made to State Government employees joining the Australian Securities Commission, broken down by region

Australian Federal Police overtime broken down by region

187

Sub-program 5.2 Collections

- Date for change to the implementation program

Sub-program 5.4 Corporate Services

- New cost to War Memorial

- New costs to War Memorial since ACT Gov't came to power

- Assistance provided to War Memorial

- Wage costs attributed to fees

- Information on those who accepted fees for admission to War M em orial

- Staff working at War Memorial in each section

- Cost of education section at War Memorial

- Information on appointment of people eg: Chairman of Council

- List of years RSL National President has not served on Council of W a r Memorial

- Documents dealing with acquisition policy of War Memorial bookshop over 5 years

- Revenue raised by War Memorial bookshop over 5 years

D E PA R T M E N T O F V E T E R A N S' A FFA IR S

Program 5 War Memorial

188

List of questions on War Memorial put on notice supplied to Department but not incorporated into Hansard.

- priorities for expanding collection

- existence of a restoration or curatorial policy

- basis used to determine level of restoration carried out

- variation of treatments

- policy concerning restoration priorities

- use of other museums for restoration

- does Memorial do work in exchange for money or use of its own facilities

- affect of such arrangements on duplication and funds

- cooperation with the Australian National Gallery

- updating of policy in line with Corporate Plan

- existence of display policy

- affect restoration policy may have on acquisition policy

189

DEPARTMENT OF COMMUNITY SERVICES AND HEALTH

Sub-program 1.3 - Health Promotion and Disease Prevention

- use of interim grant of $40 000 by the States for the setting up of consultation units

Sub-program 4.1 - Accommodation

- rate of indexation for special nursing homes

- figures for the relative contributions from the Commonwealth and the States for the provision of administration and funding of disabled services

- proportion of $36m spent on transitional programs that has been allocated to capital funds

Sub-program 6.1 - Financial Support to Individuals

- cost of compilation of the vocational register

- grants for the evaluation of the vocational register

- grant recipients

- aims and objectives of the research project

- copy of the vocational register

- percentage of Doctors on the register who have provided at least one home visit

- number of home visits by Doctors not on the register

- amount paid to independent midwives for home births

- cost of indemnity arrangements as provided by the Australian College of Midwives for its members

190

Sub-program 6.2 - Pharmaceutical Benefits Scheme

- tabling of documentation used by applicant to justify approval for the opening of a pharmacy in Pt Macquarie

- basis used by DCSH to approve the opening of a new pharmacy

- date the HIC approved the new pharmacy

- Government Solicitor's report concerning the application for the new pharmacy in Pt Macquarie

- resume of the 81 applications received for restructuring

- savings made since the introduction of the $2.50 pensioner charge

- reduction in the number of items dispensed

- number of PBS items dispensed to pensioners

- Location of the Newcastle Mail Centre in Tasmania

Sub-program 6.3 Financial Support to Service Providers

- the effect of CPI and award wages on hospital funding grants

- an increase of $68m for program expenditure

- criteria for appointments to the advisory committee of the national health strategy

- funds provided by DCSH to peak bodies

- list of peak bodies

191

E S T IM A T E S C OM M ITTEE E

T A B L E OF C O N T E N T S

f o r

H A N SA R D O F H E A R IN G S

T h u r s d a y , 1 8 A p r i l 1 9 9 1

193

TABLE OF CONTENTS FOR HANSARD OF HEARINGS

T hursday, 18 April 1991

ATTORNEY GENERAL’S DEPARTMENT

p a g e

Chairman's welcoming Statement ................................................................................. 2

Opening statement by Senator T a te ...............................................................................2

Legal services to the Commonwealth............................................................................ 2

- Costs of Royal Commission into Aboriginal Deaths in C ustody....................................................................................................................2

- estimated completion date of the inquiry................................................... 2-3

Insolvency and Trustee Service ......................................................................................3

- increase in bankruptcies ......................................................................................3

- staffing of service ........................................................................................... 3-4

Australian Securities Commission .................................................................................4

- requirements for dots in the ACN num bers.......................................... 4-5, 8

- requirement for ACN number in classified advertisements ......................................................................................................5

- staff numbers in the Commission ..................................................................... 6

- number of staff used in searches of State company docum ents...............................................................................................................6

- staff involved in transfer of information off old State system s................................................................................................... 6

- time required to access old reco rd .....................................................................6

- number of people from State CAC's which have joined the Commission ........................................................................................6

- differences in wages and conditions between Commission and State authorities..................................................................... 7

- additional staff taken on by the Commission...................................................7

- administrative expenses of the Commission..................................................... 7

- revenue from the sale of records ....................................................................... 7

194

- placement of staff and expenses in relation to insolvency matters ................................................................................... 7-8

- geographically placed additional staff related to bankruptcies................................................................................................. 8

- validity of documents in relation to a moratorium............................................................................................................ 8

- slow passage of legislation........... - consolidation of financial accounts - consultation with the States . . . . - drafting of legislation ..................

- agreement between States and Commonwealth ..........................................10

- businesses dealing in securities ............................................................... 10-11

- State government employees accepting employment with the Commission.......................................................................................... 11

- salary maintenance of these employees .......................................................... 11

- date of transfer of staff to the Commission in Western A ustralia...............................................................................................12

- involvement of Commission in WA Royal Commission.................................12

- inquiry into Custom C red it............................................................................ 12

- making complaints to the Commission.............................................................12

- payment to counsel by the Commission................................................. 12-13

- contract with Holding R edlich.......................................................................... 13

- recruitment of staff for the Commission ..................................................... 13

- division of revenue between the States and the Commonwealth.............................................................................................13

- formula for distribution of money to S ta te s.......................................... 13-14

- administrative fees collected by the Commission .......................................... 14

Trade Practices Commission ........................................................................................ 14

- BTR Nylex and Smorgon Glass Containers litigation................................... 14

- salaries in relation to BTR Nylex c a s e ............................................................ 14

- administrative expenses......................................................................................14

- payment to counsel ............................................................................................ 15

Administrative law and human rights ........................................................................15

- contribution to the processing of refugee and humanitarian claim s................................................................................... 15

- refugee committee system ........................................................................ 15-16

Human Rights and Equal Opportunity Commission.................................................16

- credit reference reporting .................................................................................16

- funds for the Privacy Commissioner ...............................................................16

- employment of solicitors by the Human Rights and Equal Opportunity Commission ...............................................................17

- funding of the Privacy Commissioner by the Department of Social Security.................................... 18

- arrangements between the Human Rights and Equal Opportunity Commission and N S W ............................................ 18-19

CD CD CD GO

195

- complaints about service in N SW ................................................................... 19

- Privacy Act and Members of Parliament .............................................. 19-20

Federal Court of A ustralia...........................................................................................20

- creation of SES band 1 p osition............................................................... 20-21

- cost of High Court and other court transcripts ............................ 21, 22, 51

- bulk transcripts of court hearings .................................................................22

- the issue of copyright and court transcripts.......................................... 23-24

Family C ourt.................................................................................................................. 24

- security at the family court building in Adelaide ....................................... 24

- lack of accommodation at the family court building in Adelaide.................................................................................... 24-25

- priority of Melbourne over Adelaide for new court building ................................................................................. 25-26, 28-29

Answers to questions asked earlier in the hearing by Senators Vanstone and MacDonald................................................................... 27-28

Question put on notice by Senator Tambling dealing with special packages of redundancy payments ..................................................... 28

- The effect of uncontested divorces on the capacity of Adelaide Family Court ...............................................................................28

- number of cases handled by courts in Melbourne....................................... 29

- free standing court in Townsville................................................................... 29

Family Court of Australia .............................................................................................29

- transfer of administrative functions.................................................................. 30

- review negotiated with the Department of Finance ............................ 30-31

- recommendations from r e p o r t.......................................................................... 31

- rental accommodation............................................................................... 31-32

- increased charges for interpreter services ...................................................32

Administrative Appeals Tribunal ........................................

- employer superannuation productivity supplementation ..........................................................

- administrative expenses, establishment and salaries relating to establishment of new Tribunal registry at Parramatta.................................................

- calculation of administrative expenses and salaries

32

32

33 33

Ancillary services...............................................................

- how $711,000 was made up and calculated with reference to the number of ju d g e s .....................

- judges' superannuation .......................................

- salaries of ACT m agistrates................................

. . 33

. . 33

33-34 . . 34

196

Maintenance of law, order and secu rity................................................................... 34

- additional salaries paid to Australian Federal Police ................................................................................................................... 34

- compensation and legal expenses..................................................................... 34

Australian Federal P olice.............................................................................................. 35

- plain clothes allowance/spending allow ance...................................................35

- character checks for Australia P o s t .................................................................35

- cost of character checks and number performed.................................... 35-36

- impact of Middle East crisis on salaries and administrative co sts............................................................................................ 36

- level of protection provided during Middle East c r isis ............................................................................................................. 36-37

- unified work force agreement ................................................................. 37-38

- transfer b o n u s..................................................................................................... 38

- reduced expenditure on overseas liaison p o s ts .............................................. 38

- increase in Comcare prem ium ..........................................................................38

- charge by the Department of Community Services and Health ..........................................................................................................38

- relocation of Sydney regional headquarters.......................................... 38-39

- payment of $1 million for wet weather d e la y .............................................. 39

- increased cost of membership in Interpol....................................................... 40

- former ACT Police Commissioners receiving p en sio n .................................................................................................................40

Common police services.................................................................................................40

- Manager of the Australian Drug Database..................................................... 40

- SES package ........................................................................................................40

National and protective security - purchase of overseas products................................................................. 40-41

- "parameter adjustment"..................................................................................... 40

Criminal law and law enforcement policy and administration.................................................................................................................41

- costs involved in recruitment of Professor Chapman to Australian Institute of Criminology..........................................41

- Qantas airfares .......................................................................................... 41-42

- new academic structure and extra cost of $2000 at Institute .............................................................................................. 42

Provision of legal aid and family services...................................................................42

- criticism of quality of legal aid provided by solicitors and barristers in ACT (Eastman)..................................... 42-43

- list of legal representatives provided to David Eastman .......................................................................................... 43-44

197

Corporate Services - Australia's contribution to Berne U nion........................................................44

- fit out in Sydney building for Administrative Appeals Tribunal (AAT) ...................................................................... 44, 45-46

- problems faced by AAT in Kindersley H o u s e ........................................ 44-45

- involvement of Ozton Pty Ltd/Desaro Pty Ltd in AAT fitou t................................................................................................45, 49

- arrangement with Ozton for fitting out of AAT accommodation in S y d n e y ............................................................ 46-47, 49-50

- issue of tendering for the Sydney fitout and the Australian Construction Services..................................................... 47-48

- negotiations with Ozton regarding AAT lease ............................................ 49

A nsw er from Mr Skehill concerning formula used in making payments between the Commonwealth and States under the national com panies scheme .................................................................................................................... 50-51

198

TABLE O F C O N T E N T S FO R H A N SA R D OF H E A R IN G S

Thursday, 18 April 1991

D E PA R T M E N T OF V ETERANS' AFFAIRS

Corporate Plan ............................................................................................................... 52

- application process for disability pensions and review ...........................................................................................................52

- Repatriation Commission annual report ..................................................... 52

Objection by Senator Tate to Committee starting without him being p resen t.............................................................................................53

- inequalities faced by war widows involving Department of Social Security................................................................. 53-54

Income support ............................................................................................................... 54

- Data-matching Program (Assistance and Tax) Bill 1 9 9 0 /V e te r a n s Affairs Legislation Amendment Bill (No. 2) ................................................................................... 54

- provision of tax file number...................................................................... 54-56

- savings from use of tax file num ber........................................................55, 56

- role of the Privacy Commissioner in respect to the use of the tax file num ber................................................................... 57

Health Care S ervices......................................................................................................56

- day surgery in hospitals............................................................................ 56-57

- palliative care services ......................................................................................57

Community based health care ......................................................................................57

- pharmaceutical services......................................................................................57

- the use of the medicine T agam et................................................................... 57

- Auditor-General's report No. 16 of 1990-91 ................................................. 58

- issue of fraud, TSC activities................................................................... 58-59

- Departmental fraud control p la n ..................................................................... 59

- prosecutions for fr a u d ........................................................................................59

Australian War Memorial

Collections........................................................................................................................ 59

- collection management computer s y ste m .............................................. 59-60

- structural efficiency principle increase............................................................ 60

- repair of War Memorial boilers .............................................................. 60-62

- savings of $361,000 .......................................................................................... 62

- entry fee in relation to "extras" ..................................................................... 62

- new costs carried by the Memorial.......................................................... 63-64

199

- Government financial support for the Memorial ................................. 63-65

- purpose of the entry f e e .................................................................................... 65

- letters from Ros Kelly and Dame Beryl Beaurepaire.................................................................................................. 65-66

- private sponsors for the M em orial...................................................... 67-67,68

- conservation activities and funding ................................................................. 68

- issue of the entry f e e ............................................................................. 68-69, 70

- arrangements for the introduction of the entry fee and staff associated costs ...............................................................69

- equipment associated with the introduction of the entry fee ................................................................................................ 69-70

- consultations regarding the entry fee eg: RSL, opposition parties ...................................................................... 70-72

- income from entry f e e ............................................................................... 72-73

- staffing at the War Memorial.............................................................................73

- voluntary guides at the Memorial .......................................................... 73-74

- corporate plan and mission statem en t................................................... 74, 75

- purpose of the Memorial and the corporate p lan................................................................................................................ 75-76

- allocation of resources.........................................................................................76

- education section ..................................................................................................76

- issue of the appointment of Chairman of the Memorial's Council ............................................................................. 76-77

- Secretary of Department of Veterans Affairs as ex-officio member of the council ............................................................ 77

- amendments to Australian War Memorial Act ........................................................................................................... 77, 78-79

- correspondence between the Minister (Mr Humphreys) and the Chairman of the War Memorial Council .................................................................................................... 78, 79-81

- appointment of the President of RSL as an ex-officio member of co u n cil........................................................................ 82

- appointment of members and ex-officio members of the Memorial C ouncil.......................................................... 82-83

- representation of ex-service organisations ............................................ 83-84

- Memorial's acquisition p o licy .................................................................... 84-85

- corporate sponsorship ............................................................................... 85-86

- marketing of the Memorial ...............................................................................86

- Friends of the Australian War M em orial........................................................86

- the Memorial's bookshop.......................................................................... 86-87

- booksale ............................................................................................................... 87

- self-guiding ta p es.................... 87-88

- decline in visitors to the Memorial................................................................... 88

200

TABLE O F C O N T E N T S FO R H AN SA R D O F H E A R IN G S

Thursday 18 April 1991

D epartm ent o f C om m unity Services and H ealth

p a g e

In Attendance ......................................................................................................... 88-89

Chairman's welcoming statem ent............................................................................ 89

Incorporation of questions on notice ................................................................. 89-91

Pharmaceutical Benefits Scheme - number of pharmacies applying for restructuring ............................................................................ 89

- number of applications to open new pharmacies ................................... 89

Strategic Direction and Resource Management - number of - projects being undertaken under the Locational Disadvantage Pilot Project ........................................................ 90

- where these studies are located ................................................................. 90

- timetable and proposed report release date ............................................ 90

- objectives, staffing and resources of the Rural and Remote Services Unit ............................................................................ 90

Quality of Residents Care - cost estimates for the operation of the Advocacy Advisory Service in Alice S p rin gs................................................................................. 90

- rationale for establishment of the service................................................ 90

- support of the Alice Springs Senior Citizens Assoc and the NT Council for Ageing ....................................... 90

- grants made to those organisations.......................................................... 90

Health Promotion and Disease Prevention - reservations expressed by AMA on the Australian Aboriginal Health Strategy............................ 90

Residential Care for Older People - status and outcomes of the Review of Aged Care in itiatives..................................................................................... 90

- regional recommendations under consideration in the N T .................. 90 Housing - Mortgage and Rent Relief S ch em e....................................................... 90

- First Home Owners Scheme ..................................................................... 90

- Public Housing ............................................................................................ 91

Nurses re-entry program ................................................................................... 91-92

Commonwealth funding to the States for hospitals ....................................... 91-92

Assistance for People with Disabilities - services for disabled persons ......... 92-9 - employment of disabled persons ............. 94-99

- funding of new services....................................................................... 97-101

- turnover of staff ........................................................................................ 100

- accommodation for the disabled....................................................... 100-101

- project officers............................................................................................ 102

- transfer of responsibility for accommodation services from the Commonwealth to the States ..................................... 102

201

- number of disabled persons not reached by the disability service program .............................................................

- population eligible for DSA ...............................................................

- rate of indexation for special nursing homes .................................

- allocation of transitional funds ........................................................

- amount of transitional fu n d s ............................................................

- the amount allocated to capital funds ............................................

- new employment services targeted at the young .........................

- accommodation for persons who have never been in a service provider ...................................................................

Breast screening - savings from the original program ..............................

- interim grant of $40 000 to States/Territories for the setting up of consultation units ..........................................

- operation of the consultation units ..............................................

- use of grants by States/Territories ..............................................

- mobile mammography units in rural and remote areas ........... - possible link between synthetic derivative of vitamin A and breast cancer ........................................................

- operation of mammogram screening mobile units ..................... National screening program for cervical cancer .......................................

Papnet computer aided cancer diagnosis system ............................

- improvement in the correct diagnosis rate of cervical cancer from traditional methods .......................................

HIV virus - compulsory testing of prisoners ............................................

Drug program - delay in the setting up of the confiscated assets trusc funds ...............................................................................

- confiscation of funds under State and Territorial la w s .............. National Food Authority - proposed operation, costs, elimination of the varying packaging legislation in the States and Territories - extension of the pilot phase of the

Linkage projects - Victorian linkages program ..........................................

- extension of linkage projects on a national basis, evaluation . . - guidelines and conditions of grant under the linkages projects . Residential Care for Older People - assessm en t.......................................

- changes relating to instalments for the capital hostel program - deeming provisions for the aged care program, hostel residents and nursing home residents............................................................

Home and Community Care Program - statement of expected savings National Acoustics Laboratories - joint venture with Australian Hearing Aids ................................................................

- in-the-ear hearing aids for NAL's clients ..................................

- royalties from the exportation of hearing a id s .........................

Therapeutic Goods - senior management positions in the Therapeutic Goods Administration ..............................................

- number of staff to process applications to export products . . . - standardisation of approved names for ingredients in Australian products..........................................................................

- scrutiny of exported products .....................................................

- financing arrangements for therapeutic g o o d s .........................

102-103 . . 103

. . 103

. . 103

. . 103

. . 103

. . 104

1 0 4 - 105

. . 105

. . 105

. . 105

10 5 - 106

. . 106

. . 107

109-110 10 6 - 107

. . 107

1 0 7 - 108

. . 108

. . 108

. . 109

. . 109

.. no

.. no

. . I l l

111-114 . . . I l l

. . . 113

. . . 113

. . . 114

. . . 115

. . . 115

. . . 115

. . . 116

. . . 116

. . . 117

. . . 117

202

- compliance with the Australian Goods Manufacturing Practice . . . . 117 - Pharmaceutical Inspection Convention of the European Free Trade 117 - monitoring of imported goods ................................................................. 120

- Commonwealth funding of cyclosporin and erythropoietin................ 120 Health Care Access - number of applications for closure, amalgamation and opening of pharmacies ........................................................................ 121

- location of the Newcastle Mail Centre in Tasm ania............................ 122

- criteria on which the Pharmacy Restructuring Authority recommends approval for a new pharmacy.......................................... 123-12

- basis used by the Department to approve a new pharmacy in Pt Macquarie......................................................................................124- 130

- confidentiality of applicant ............................................................... 126-130

- total cost of pharmacy restructuring..................................................... 131

Independent midwives - payment........................................................................ 133-1

- basis for the provision of birthing centres ............................................ 134

- funding to the States for birthing centres ..................................... 136-141

- evaluation of morbidity rate with regards to home births . . . 137 - indemnity arrangements for independent m idw ives............................ 137

-States funding for birthing cen tre s.......................................................... 138

Vocational register - costs incurred by the HIC with the compilation of vocational register........................................................................................ 142

- criteria used to determine eligibility to participate in the vocational register............................................................................ 142

- evaluation of adherence to the conditions of vocational registration ............................................................................................. 142-143

- access to names of registered Dr's in local area ................................... 144

- evaluating productivity in general practice and issues related to the vocational register............................................................... 145

- updating the register.......................................................................... 145-146

- percentage of vocationally registered Dr's who have provided 1 home visit ................................................................................. 146

- number of home visits by Dr's not on the reg ister.............................. 147

Pharmaceutical Benefits Scheme - incorporation of questions on notice - savings made since the introduction of the $2.50 charge .................. 148 - reduction in the number of items dispensed.......................................... 148

- number of PBS items dispensed in Dec, Jan, Feb and for the same months 1989/90 ................................................................................. 148

Medicare Cards - reissuing of cards by H I C ................................................. 148-150

- degradation of the magnetic strip ................................................... 150-151

National Health Care strategy, reporting, appointments to advisory committee ............................................................................... 151-152

- funding of peak bodies by D C S H ............................................................ 152

- funding of nationally funded medical speciality centres .............. 152-153 - Diagnosis Related G roups........................................................................ 153

Compulsory claims transmission system ..................................................... 153-155

- projected savin gs........................................................................................ 155

- standardising of payment to pharmacists....................................... 155-156

- savings resulting from tighter eligibility checking ....................... 156-157 - minimum pricing system, savings, affect on consumers,

203

use of generic brands............................................................................ 157-158

- regulation of under $15 prescription drugs, monitoring of agreement between Govt and G u ild .............................................. 158-159

Pharmaceutical Benefits Scheme - eligibility for pharmaceutical benefits, use of social security number, address, date of b ir th ..................... 159-161 - safety net scheme ............................................................................... 160-161

- time involved in carrying out eligibility checks, siting of unit, administration by pharmacists................................... 161-164

- monitoring Dr's prescribing habits by the H IC ..................................... 162

- monitoring prices charged by pharmacists............................................ 162

- establishing clients identity for eligibility.............................................. 163

Draft policy covering medical data, Medicare, pre-Medicare, pharmaceutical b en efits..................................................... 164

- unlawful disclosure of Medicare information, investigation by Federal Police, preventive m easures..................... 164-166 - establishment of an auditing system .............................................. 166-167

Health Care Access - funding grants to hospitals, savings, indexation of grant ...................................................................................... 167

- effect of CPI and award wages on grant .............................................. 167

- $68m increase in program expenditure ................................................. 167

ESTIMATES COMMITTEE 'E '

Minutes of Meeting No. 36/7 Monday, 15 April 1991

PRIVATE MEETING:

The Committee met at 6.37 pm in the Opposition Advisers' area adjacent to the Senate Chamber. The Chairman, Senator Cooney, took the Chair.

RESOLUTIONS:

The Committee agreed to the following resolutions:

That the Committee agrees to commence its examination of the Additional Estimates at 8.00am on Thursday, 18 April 1991. (Moved: Vanstone, Seconded: West)

That unless otherwise ordered, the order in which the Committee considers the departmental Estimates be: Attorney-General's Department, Department of Veterans' Affairs, Department of Community Services and Health.

(Moved: Vanstone, Seconded: West)

That the Committee authorises the recording, broadcasting and re-broadcasting of its public proceedings in accordance with the rules contained in Order of the Senate of 23 August 1990. (Moved:

Vanstone, Seconded: West)

ADJOURNMENT:

The Committee adjourned at 6.40pm.

ATTENDANCE:

Senators Cooney (Chairman), Giles, Herron, Patterson, Walters, West.

Confirmed

Γ. Cooney Chairman

206

Minutes of Meeting No. 36/8 Thursday, 18 April 1991

ESTIMATES COMMITTEE Έ '

1. PUBLIC MEETING:

The Committee met at 8.02am in Senate Committee Room 2S3. The Chairman, Senator Cooney, took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1990-91 - ATTORNEY-GENERAL'S DEPARTMENT

In attendance: Senator the Hon. Michael Tate, Minister for Justice and Consumer Affairs, accompanied by the following officers:

Attorney-General's Department -Mr A .D . Rose Secretary

Mr N.S. Reaburn Deputy Secretary Mr S.F. Skehill Deputy Secretary Mr B. McMillan Legal Services Coordinator Ms N. Fredrickson First Assistant Secretary

Corporate Services Division

Mr T.L. Gallagher Assistant Secretary Financial Management and General Services Branch

Mr 0. Winder First Assistant Secretary

Office of Legal Aid and Family Services

Mr G. Blewitt Director

Special Investigations Unit

Australian Bureau of Criminal Intelligence - Mr K. Askew Director

Mr A. Luther Executive Officer

Mr S. Dixon Administrative Officer

Australian Federal Police -Mr P. Dawson Assistant Commissioner

Mr S.B. Gavin Associate Commissioner

Australian Institute of Criminology -Mr D. Biles Deputy Director

Mr J. Millar Executive Officer

Australian Securities Commission -Mr B. Robinson Commission Member

Mr I. Cameron Director, Resources

Human Rights and Equal Opportunity Commission -Mr C. Sidoti Secretary

Mr B. Chapman Assistant Secretary, Management Mr Nhan Vo Van Acting Head, Privacy Branch

207

National Crime Authority -Mr D. Lenihan Chief Executive Officer

Mr G. Sant Acting Director, Finance

Trade Practices Commission -Mr H. Spier First Assistant Commissioner

Enforcement and Legal Division

Ms G. Barnwell Assistant Commissioner Corporate Services

Family Court of Australia -Mr L. Glare Chief Executive Officer

Mr I. Loughlan Principal Registrar

Mr B. Franklin Acting Principal Director of

Administration

Mr P. Murphy Finance Officer

Federal Court of Australia -Mr J . Torpy Manager, Financial Services

Administrative Appeals Tribunal - Mr David Schulz Registrar

Department of Finance - Mr S . Edwards Mr B . White, Senior Finance Officer

Finance Officer

The Committee examined the proposed expenditure by p r o g r a m as set out in the Explanatory Notes 1990-91: A t t o r n e y - General's Department. Explanation of Additional E s t i m a t e s 1991. March 1991.

The Committee suspended its consideration of the p r o p o s e d additional expenditure for the Attorney-General's Department.

3. ADJOURNMENT:

The Committee adjourned at 9.54am.

4 . ATTENDANCE:

Senators Cooney (Chairman), Campbell, Giles, Macdonald, Vanstone and West.

Confirmed

B . Coone; Chairman

208

Minutes of Meeting No. 36/9 Thursday, 18 April 1991

ESTIMATES COMMITTEE Έ '

1. PUBLIC MEETING:

The Committee met at 1.30pm in Senate Committee Room 2S3. The Chairman, Senator Cooney, took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1990-91 - ATTORNEY-GENERAL'S DEPARTMENT

The Committee resumed its consideration of Proposed Additional Expenditure 1990-91 for the Attorney-General's Department.

In attendance: Senator the Hon. Michael Tate, Minister for Justice and Consumer Affairs, accompanied by the following officers:

Attorney-General's Department -Mr A.D. Rose Secretary

Mr N.S. Reaburn Deputy Secretary

Mr S.F. Skehill Deputy Secretary

Mr B . McMillan Legal Services Coordinator Ms N. Fredrickson First Assistant Secretary Corporate Services Division Mr T.L. Gallagher Assistant Secretary

Financial Management and General Services Branch

Mr 0. Winder First Assistant Secretary

Office of Legal Aid and Family Services

Mr G. Blewitt Director

Special Investigations Unit

Australian Bureau of Criminal Intelligence -Mr K. Askew Director

Mr A. Luther Executive Officer

Mr S. Dixon Administrative Officer

Australian Federal Police -Mr P. Dawson Assistant Commissioner

Mr S.B. Gavin Associate Commissioner

Australian Institute of Criminology -Mr D . Biles Deputy Director

Mr J. Millar Executive Officer

Australian Securities Commission -Mr B . Robinson Commission Member

Mr I . Cameron Director, Resources

209

Human Rights and Equal Opportunity Commission - Mr C. Sidoti Secretary

Mr B . Chapman Assistant Secretary, Management Mr Nhan Vo Van Acting Head, Privacy Branch

National Crime Authority -Mr D. Lenihan Chief Executive Officer

Mr G. Sant Acting Director, Finance

Trade Practices Commission -Mr H . Spier First Assistant Commissioner

Enforcement and Legal Division

Ms G. Barnwell Assistant Commissioner Corporate Services

Family Court of Australia Mr L.

Mr I.

Mr B.

Glare Loughlan Franklin

Mr P . Murphy

Chief Executive Officer Principal Registrar Acting Principal Director of Administration

Finance Officer

Federal Court of Australia -Mr J . Torpy Manager Financial Services

Administrative Appeals Tribunal - Mr David Schulz Registrar

Department of Finance - Mr S . Edwards Mr B. White Senior Finance Officer

Finance Officer

The Committee examined the proposed expenditure by program as set out in the Explanatory Notes 1990-91; Attorney- General's Department. Explanation of Additional Estimates 1991, March 1991. " ’ ............. . "

The following documents were tabled and incorporated:

. Question placed on notice by Senator Tambling relating to Program 3.5: Provision of legal aid and family services . List of legal representation for David Eastman at the

Winchester inquest 28 July 1989 to 11 April 1991 . Formula for revenue equalisation payments between the Commonwealth and the States under the National Companies scheme.

The Committee concluded its consideration of the proposed additional expenditure for the Attorney-General's Department., subject to undertakings to provide additional

written information to the Committee.

210

3. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1990-91 - DEPARTMENT OF VETERANS' AFFAIRS

In attendance: Senator the H o n . Michael Tate, Minister for Justice and Consumer Affairs, accompanied by the following officers:

Department of Veterans' Affairs Mr K. Lyon Deputy President

Repatriation Commission

Mr G. O'Connor National Program Director Corporate Services Mr R. Bear Assistant Secretary, Budget

Mr P. Hawker National Program Director Benefits

Mr J. Dalton Assistant Secretary

Compensation and Review

Mr M. Galt Director

Policy Development and Implementation

Mrs F . Barr Assistant Secretary

Defence Service Homes

Mr T. Ashford National Program Director

Health

Mr M. Goldstein Deputy National Program Director Health Mr B. Maxwell Assistant Secretary

Hospital Services

Ms A. Turner Assistant Secretary

Community-based Health Care

Mr B. Manning Assistant Secretary

Health Program Management and Services

Mr A. Edgar Assistant Secretary

Hospital Transfer

Mr P. Lowen Acting Assistant Secretary

Health Planning

Mr T. Fear Acting National Director

Vietnam Veterans' Counselling Service

Dr D. Smith Chief Executive Officer

Repatriation General Hospital, Concord

Mr F. Woodhouse Principal Registrar

Veterans' Review Board

Mrs M. Hodge Acting Director (Operations)

Veterans' Review Board

Mr B. Kelson Director, Australian War Memorial

Mr J. Pearson Assistant Secretary Administration Branch Mr P. Carpay GAA Project Officer

Budget Branch

Department of Finance Mr P. Neal Chief Finance Officer

Social Welfare Branch

The Committee examined the proposed additional expenditure by program as set out in the Exolanatorv Notes 1990-91:

211

Attorney-General's Department. Explanation of A d d i t i o n a l Estimates 1991. March 1991.

The following documents were tabled and incorporated:

. Letter dated 28 March 1991 from the Hon. Ros Kelly,

M.P. to Ms H. Bell, letter from the Hon. Ros Kelly to

Dame Beryl Beaurepaire, DBE, attached . Letter dated 26 October 1990 from Dame Beryl Beaurepaire, D B E , to the Hon. Ben Humphreys, M . P . , Minister for Veterans' Affairs . Letter dated 12 February 1991 from Dr John Hewson,

M.P., Leader of the Opposition to Dame Beryl Beaurepaire, DBE . Letter dated 11 October 1990 from the H o n . Ben

Humphreys, M.P., Minister for Veterans' Affairs to Dame Beryl Beaurepaire, DBE . Letter dated 26 October 1990 from Dame Beryl Beaurepaire, DBE, to the H o n . Ben Humphreys, M . P . ,

Minister for Veterans' Affairs . Letter dated 29 November 1990 from Dame Beryl Beaurepaire , DBE, to the Hon. Ben Humphreys , M . P . , Minister for Veterans' Affairs.

The Committee concluded its consideration of the proposed additional expenditure for the Department of Veterans' Affairs subject to undertakings to provide additional written information to the Committee.

4. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1990-91 DEPARTMENT OF COMMUNITY SERVICES AND HEALTH

In attendance: Senator the Hon. Michael Tate, Minister for Justice and Consumer Affairs, accompanied by the f o l l o w i n g officers:

Department of Community Services and Health Mr M. Roche Deputy Secretary

Dr J. Loy Acting Deputy Secretary

Dr C. Mead For Chief Medical Adviser

Ms M. Murnane First Assistant Secretary Aged and Community Care Division Mr B. Wight First Assistant Secretary

Child Care Division

Ms J. Blazow Assistant Secretary

Child Care Strategic Planning Branch

Mr N. Mersiades Acting First Assistant Secretary Corporate Services Division Mr B. Scammell Acting Director, Budgets Section Budget Management Branch

Dr J. Harmer First Assistant Secretary

Disability Services Division

Mr W. Butler Assistant Secretary

Hearing Services Branch

Mr B. Macdonald Assistant Secretary Rehabilitation Services Branch

212

Mr T. Slater First Assistant Secretary

Health Advancement Division

Ms M. Scott Assistant Secretary

AIDS Policy and Programs Branch

Mr I. McNeil First Assistant Secretary

Health Care Access Division

Ms D. Ariotti Assistant Secretary

Health Care Evaluation Branch

Ms M. Ford Principal Adviser

Pharmaceutical Benefits Branch

Ms J. Lipscombe Assistant Secretary Health Care Strategies Branch

Mr B . Candler Assistant Secretary

Hospitals and Health Services Branch

Mr G. James Acting First Assistant Secretary

Health Research and Services Division

Mr I. Campbell First Assistant Secretary

Housing Service Division

Mr I . Wingett Acting First Assistant Secretary

Policy Development Division

Ms C . Thame, Assistant Secretary

Policy Analysis and Review Branch

Dr D. Graham Acting National Manager Therapeutic

Goods Administration

Dr. N.. Mitchell Head, Evaluation Unit 4

Drug Evaluation Branch

Health Insurance Commission Mr J. Murray Acting General Manager

Mr K. Hazell Assistant General Manager

Health Benefits

Dr J. Nearhos Medical Director

Mr w. Turk Manager

Pharmaceutical Benefits Branch

Mr c . McGregor Manager, Program Support Branch Mr M. Whelan Manager, Accounting Branch

Australian Institute of Health and Welfare Statistics Dr D. Hailey Acting Director

Ms C. Fuso Head, Corporate Services

Department of Finance Mr A . P . Richardson Chief Finance Officer

The following documents were tabled and incorporated:

. Two questions placed on notice by Senator Walters concerning the Pharmaceutical Benefits Scheme • Four questions placed on notice by Senator Tambling relating to Program 9.2: Strategic Direction and

Resource Management . Four questions placed on notice by Senator Tambling relating to Program 3.3: Quality of Residential Care • One question placed on notice by Senator Tambling

relating to Program 1.3: Health Promotion and Disease Prevention

213

. Two questions placed on notice by Senator Tambling relating to Program 3: Residential Care for Older People . Twentysix questions placed on notice by Senator Bishop

relating to Program 7: Housing . Three questions placed on notice by Senator Patterson relating to Program 6.2: Pharmaceutical Benefits Scheme.

The Committee examined the proposed additional e x p e n d i t u r e in program sequence as set out in the Explanatory N o t e s 1990-91: Community Services and Health Portfolio ( D e p a r t m e n t of Community Services and Healths Explanation of A d d i t i o n a l Estimates 1990-91. March 1991.

The Committee concluded its consideration of the p r o p o s e d additional expenditure for the Department of Community Services and Health, subject to undertakings to p r o v i d e additional written information to the Committee.

5. ADJOURNMENT:

The Committee adjourned at 1.58am on Friday, 19 April 1991.

6. ATTENDANCE:

Senators Cooney (Chairman), Giles, Herron, Newman, Patterson, Walters, Vanstone and W e s t . Senator Watson a l s o attended.

rr"Cpmiey Chairman

214

ESTIMATES COMMITTEE E

Minutes of meeting No. 36/10 Tuesday, 7 May 1991

1. Meeting:

The Committee met in deliberative session at 6.31 pm in the

Oppositions adviser's area adjacent to the Senate Chamber. The Chairman (Senator Cooney) took the Chair.

2. Confirmation of Minutes:

The minutes of meetings N o s . 36/7, 36/8 and 36/9 were confirmed.

3. Consideration of Draft Report:

The Committee considered the draft report. Discussion ensued. It was agreed that an extra section concerning the Family Court in Adelaide should be added to the report.

On the motion of Senator Giles, seconded by Senator Macdonald, the rest of the report was agreed to.

4 . Ad j o u m m e n t :

The Committee adjourned at 6.50pm.

5. Attendance: Senators Cooney (Chairman), Campbell, Giles, Herron, Macdonald, Newman, Vanstone and Walters.

Confirmed

215

ESTIMATES COMMITTEE E

Minutes of meeting No. 36/11 Wednesday, 8 May 1991

1. Meeting:

The Committee met in deliberative session at 9.55 am in t h e

Oppositions adviser's area adjacent to the Senate Chamber. T h e Chairman (Senator Cooney) took the Chair.

2. Confirmation of Minutes:

The minutes of meeting No. 36/10 were confirmed.

3. Consideration of amendment to Draft Report:

The Committee considered and agreed to an amendment to the draft report dealing with the Family Court in Adelaide.

4. Adjournment:

The Committee adjourned at 10.00am.

5. Attendance: Senators Cooney (Chairman), Campbell, Giles, Macdonald, and Vanstone.

Certified Correct

B . C o o Q ^ y

Chairman

217

E ST IM A T E S C O M M ITTEE F

R E P O R T TO T H E SE N A T E

M ay 1991

219

ESTIMATES F

REPORT TO THE SENATE

Estimates Committee F presents its Report to the Senate.

A. INTRODUCTION

1. On 14 March 1991 the Senate referred to the Committee the Particulars of

Proposed Additional Expenditure for the service of the year ending on 30

June 1991 and the Particulars of Certain Proposed Additional Expenditure

in respect of the year ending 30 June 1991 relating to the following

portfolios:

• Department of Industrial Relations

• Department of Primary Industries and Energy

• Department of Transport and Communications

2. The Committee has considered the additional estimates of these portfolios

as presented in the respective explanatory notes and has received

explanations of the additional estimates from the Minister for Industrial

Relations, the Minister for Shipping and Aviation Support, the

Parliamentary Secretary to the Treasurer, and officers of the departments

and authorities concerned.

3. The Committee tables for the information of the Senate in connection with

Appropriation Bills No 4 and No 5 (Additional Estimates) copies of the

Minutes of Proceedings, Hansard transcripts of evidence of Committee

proceedings and a table of contents to the Hansards. The answers taken on

notice at the Committee’s hearings will be tabled in the Senate under

separate cover in a volume entitled "Additional Information Provided

220

During Estimate Committee F’s Examination of Proposed Additional

Expenditure for 1990-1991".

4. The Committee wishes to bring certain matters of interest to the attention

of the Senate:

B. DEPARTMENT OF INDUSTRIAL RELATIONS

M atters o f general con cern not covered in individual item s in explanatory

n otes for additional appropriations.

Annual Report

5. The committee spent considerable time seeking additional information

about programs referred to in the Department’s 1989-90 Annual Report,

particularly addressing the relationship between the portfolio mission

statement and the various performance standards and indicators for each

program area.

6. The Committee places on record its appreciation of the difficulties that

would be experienced in developing these measures of effectiveness and

urges the Department to continue its developmental work in this area. It

is essential that future developments target the more concrete aspects of

industrial relations policy and operations, for example, the cost of

conducting certain policy initiatives, the cost of hearing cases in the AIRC,

the level of industrial disputation from year to year, the impact of new

policy initiatives, movements of wages and salaries consequent to changes

in government policy and landmark decisions of the AIRC.

7. Further, consistent with the principles of the Financial Management

Improvement Plan and program budgeting, it is recommended that the

221

Department focus its efforts on developing more effective measures of

outcomes as opposed to measures of activity.

8. In the previous round of estimate’s hearings for the portfolio mention was

made of the Committee’s concern that the Department take a more

proactive role in monitoring the movement of executive salaries with a view

to providing the government with appropriate advice covering the range of

Government Business Enterprises. During these hearings the Committee

maintained its interest in this matter and recommends that the

Department, consonant with the Government’s position that wage and

salary movements should be in line with national trends, enterprise

profitability and changes in structural efficiency, should bolster its work in

this area, especially now that the introduction of performance pay for SES

officers is imminent. The Committee expects that the Department’s next

annual report will endeavour to report on these vital aspects of industrial

relation’s policy and operations.

Federal Award Text Retrieval System

9. The Committee commends the Department on its development of electronic

database information on over 2000 industry awards. It notes the problems

which have been experienced in developing software for the system during

the transfer from manual records, and looks forward to the system

becoming available to industry users, trade unions and researchers in a

package which is commercially viable. The Committee also believes that

there exists a need for extension of the database to facilitate coverage of

other public sector salaries not covered under the award structure e.g GBE

salaries and Remuneration Tribunal determinations.

222

R ecom m endations

10. Estim ates C om m ittee F recom m ends that all o f the m atters of

in terest raised in this report, in relation to th e D epartm ent of

Industrial R elations, be further exam ined by th e Senate.

11. Estim ates Com m ittee F recom m ends that all q u estion s taken on

n otice before and during the Com m ittee’s hearings, as listed in

A ppendix 1, and not answ ered before the con clusion o f hearings, be

further exam ined by the Senate.

12. E stim ates Com m ittee F recom m ends that the Senate approve,

w ith ou t am endm ent or req u est for am endm ent, expenditure in

estim ates con sid ered by the Committee.

C. DEPARTMENT OF PRIMARY INDUSTRIES AND ENERGY

M atters o f general concern not covered in individual item s in explanatory

n otes for additional appropriations.

Senior Officer Pay Structure

13. The Committee noted with interest the impact of the revised pay structure

for AS07 and AS08 officers on the Department’s estimates. The minister

at the table, Senator the Hon. Peter Cook, explained that, whilst the new

structure did not incorporate performance pay provisions, there was work

occurring in his Department, to implement this system of remuneration.

In making this statement the Minister said that any developments within

this area would be in line with decisions of the AIRC, the need to assess

relative performances of officers eligible as well as the need to recognise

"better performance" (Hansard F 31). The Minister made mention of the

fact that the initiative would be likely to increase the Department’s overall

223

salary vote but went on to stress the policy of reducing public service staff

numbers "over the years of our government" (Hansard F 31).

Portfolio Expenditure Figures

14. In examining the portfolio expenditure summary on page 3 of the

Explanatory Notes the Committee experienced some difficulty clarifying

actual totals and reconciliations. The departmental officers explained that

the confusion was the result of a "transposition of figures" (Hansard F 32)

on page 21 and undertook to rectify the problem.

Program 1 : Industrial D evelop m en t

Sub program 1.1 : P astoral and L ivestock

Sheep Slaughter Scheme

15. The Committee took a special interest in the performance of the sheep

slaughter scheme and received advice from officers about the

appropriateness or otherwise of its termination when the government

suspended the minimum reserve price scheme for wool. The Committee is

of a view that there is a need for the Department and its appropriate

outrider agencies to conduct a rigorous analysis of the scheme with a view

to coming to a more informed position about its value for use in the future.

Livestock Trade

16. The Committee maintained its interest in livestock trade observing that

steps had been taken to enhance trade in both sheep meat and live sheep

following the cessation of hostilities in the Gulf. The potential for trade

with Italy and South Africa in these commodities was also raised.

224

Su b p rogram 1.2 : Crops

Orange Juice Exports

17. The Committee, in its examination of additional estimates to enhance the

export of fresh juice and fresh oranges, was advised that the funds had been

allocated on the basis of a broad objective rather that a detailed program.

The Committee understands the need for such an approach but places on

record its preference for detailed planning and assessment to be undertaken

before a decision to spend funds of the magnitude proposed is taken.

Sub program 1.3 : F isheries

Australian Fisheries Management Authority

18. Evidence was given about developments relating to the establishment of the

Australian Fisheries Management Authority (AFMA) and the arrangements

which are proposed to ensure that overlap and unnecessary duplication of

effort does not occur between AFMA and the Department. The Committee

will monitor developments in this initiative to ensure that public

expenditure is not directed at maintaining the operation of two agencies

which have overlapping functions.

Program 2 : Infrastructure and Support

Sub progam 2.1 : N atural R esource M anagem ent

Whole Farm Planning

19. In its previous report to the Senate, the Committee expressed its concern

that administrative bottlenecks had occurred in the whole farm planning

program, which is part of the Government’s Land Care program, that have

225

worked against landholders having access to the scheme as well as its tax

deductibility provisions.

20. The Committee has noted that considerable progress has been made

towards rectifying this anomaly and looks forward to seeing legislation

which will increase substantially the number of agencies that can approve

whole farm plans. The Committee commends the Government on its plans

to make the changes retrospective.

21. The Committee went on to hear evidence in response to questions about

possible overlap between the activities of Landcare Australia and the

National Soil Conservation Program.

22. Whilst the Committee agrees with officers from the Department that there

are two separate administrative arrangements, it is unable to agree that

their functions are mutually exclusive. It recommends that a review be

undertaken to ascertain the degree of overlap with a view to recommending

the rationalisation of overlapping functions.

Sub program 2.3 - Q uarantine and Inspection

Trepang Harvesting

23. The possible development of a joint venture for trepang harvesting between

Aboriginal interests in Groote Eylandt, in the Northern Territory, and

fishing operators in northern Australia and Indonesia and the possible

quarantine and inspection implications was raised in the hearings but the

departmental officers were unable to provide advice, preferring to take the

question on notice. The Committee is of a view that the development, if not

managed properly, has the potential to place at risk the nation’s quarantine

arrangements and may have significant foreign relations implications.

Accordingly, it will monitor developments in this area closely.

226

R ecom m endations

24. E stim ates C om m ittee F recom m ends that all o f th e m atters of

in terest raised in the report, in relation to the D epartm ent o f

Prim ary In dustries and Energy, be further exam ined by the Senate.

25. E stim ates C om m ittee F recom m ends that all q u estion s taken on

n otice before and during the C om m ittee’s h earings, as listed in

A ppendix 1, and not answ ered before the con clu sion o f the

hearings, be fu rth er exam ined by th e Senate.

26. E stim ates C om m ittee F recom m ends that the Sen ate approve,

w ith ou t am endm ent or req u est for am endm ent, exp en d itu re in

accordance w ith th e additional estim ates con sid ered by the

Committee.

D. DEPARTMENT OF TRANSPORT AND COMMUNICATIONS

M atters o f general con cern not covered in individual item s in explanatory

n otes for additional appropriation.

Program 4 : Telecom

Remote Area Communication and Phone Books

27. Following a special request from one of the Committee members, the

Minister, Senator the Hon. Bob Collins, arranged for two officers from the

Australian Telecommunications Commission to be present at the hearings

to answer questions on the use of satellite technology to facilitate

communications in remote areas. The Committee was informed that

Telecom does not offer "satellite cellular services" (Hansard E 65) but that

227

it, along with its future partner, OTC, has been pursuing the matter with

great interest.

28. In view of the recent tragedies in remote areas involving people living,

working and travelling in harsh locations, the Committee is of the opinion

that Telecom should maintain its impetus in the development of this form

of communications.

29. The matter of the consolidation of country phone books in WA was also

raised.

Special B road castin g S ervice (SBS)

30. The Committee heard evidence from officers in SBS relating to the following

aspects of its operations and policy;

• rights to broadcast World Cup Soccer 1990

• production and financial arrangements relating to the Book

Show, Vox Populi, and the Sports Machine.

A ustralian B roadcasting C orporation (ABC)

31. The Committee heard evidence from officers of the ABC in respect of the

following matters;

• Proposal to gain rights for the World Cup Soccer 1990

• Resignation of the Director of Sport in 1988

• Sporting telecasts - payment of fees vis a vis the

organisation’s charter

• Auditor General’s Report Number 20

• Stocktake preparatory to introduction of accrual

accounting - unused equipment.

228

F ederal Airports Corporation (FAC)

32. The Committee heard evidence from the FAC officers in respect of the

following matters;

« Tender process to acquire new baggage handling facilities at

Sydney airport

• Contractual relationship between earthmoving and

gravel crushing company and the FAC- problems with licence.

Program 5 - M aritime

Sub program 5.3 - M aritime Safety

Sub program 5.8 - The A ustralian M aritim e Safety A uthority

33. The Committee discussed at length the steps which the Government had

taken to establish an effective program to safeguard maritime activities.

The Minister at the table, Senator Collins, and members of the Committee

agreed that the AMSA could not function without the assistance of an army

of volunteers who are prepared to risk their own lives in order to preserve

the lives of others.

34. The Committee was advised that the introduction of EPIRB’s, the

emergency beacon that the Government is urging boat owners to purchase,

has in broad terms saved some 70 lives.

35. The Committee acknowledges that maritime safety is an essential yet

expensive, area of government activity and urges the government to

continue its campaign to increase the level of safety exercised by boat

owners around the Australian coastline.

229

R ecom m endations

36. E stim ates C om m ittee F recom m ends th at all o f t h e m a t t e r s o f

in tere st raised in th e report, in relation to the D e p a r t m e n t o f

Transport and C om m unications, be further exam ined by the S e n a t e .

37. E stim ates C om m ittee F recom m ends th at all q u estion s t a k e n o n

n o tice before and du rin g th e C om m ittee’s hearings, as l i s t e d in

A ppendix 1, and n ot an sw ered before th e con clu sion o f h e a r in g s , b e

fu rth er exam ined by th e Senate.

38. E stim ates Com m ittee F recom m ends th at the S e n a t e a p p r o v e ,

w ith o u t am endm ent or req u est for am endm ent, e x p e n d i t u r e in

accordan ce w ith the ad d ition al estim ates con sid ered b y th e

C om m ittee.

E. QUESTIONS ON NOTICE NOT PUBLISHED IN THE HANSARD PROOF

39. Q u estio n s on notice agreed to be incorporated in H a n sard b u t n o t p u blished

in th e H a n sa rd P roof h a v e b een included in A ppendix 2 o f th is report.

F. ACKNOWLEDGMENTS

40. T he C o m m ittee ta k e s th e opportunity to th a n k th e M in ister for Industrial

R ela tio n s, S en a to r th e H on. P eter Cook, th e M in ister for S h ip p in g and

A v ia tio n Support, S en a to r th e H on. Bob C ollin s, an d th e P arliam en tary

S ecreta ry to th e T reasu rer, S en ator th e H on. Bob M cM ullan, for their

a ssista n c e d u rin g th e h earin g. T he C om m ittee also th a n k s th e officials of

th e th r e e d ep artm en ts for th e ir a tten d a n ce an d cooperation in an sw erin g

q u estio n s, an d for providing d etailed w ritten resp o n ses w h ere sought.

M ichael B ea h a n C hairm an

230

PARLIAMENT OF AUSTRALIA · T H E S E N A T E

John H. Panizza Senator for W estern Australia

3rd Floor. Durack Centre. 263 Adelaide Terrace.

Parliament House. CANBERRA ACT. 2600

PERTH W A 6000

(062) 77 3625

Telephone: (09) 325 8449 Facsimile. (09) 325 5943 Telephone: Southern Cross (090) 401080

19th A pril, 1991.

Mr. R i c h a r d Gil b e r t ,

S e c r e t a r y E s t i m a t e s C o m m i t t e e F .

D e a r R i chard,

B y r e s e r v a t i o n I w i s h to r e s e r v e the r i g h t to d e b a t e f u r t h e r , in

the C o m m i t t e e Stages, the f o l l o w i n g m a t t e r s r a s e d in Es t i m a t e

H e a r i n g s F .

T r a n s p o r t a n d C o m m u n i c a t i o n s

P r o g r a m 5.6 W a t e r f r o n t I n d u s t r y R e f o r m A u t h o r i t y

P r o g r a m 5.7 S h i p p i n g I n d u s t r y R e f o r m A u t h o r i t y

P r o g r a m 5.8 A u s t r a l i a n M a r i t i m e S a f e t y A u t h o r i t y

T h e s e w e r e n ot i tems for w h i c h a d d i t i o n a l funds w e r e sort but

s h o u l d be c o n s i d e r e d as g eneral q u e s t i o n s r e l a t i n g to the

p o r t f o l i o a n d t h e r e f o r e c o n s i d e r e d at the b e g i n n i n g of the

D e p a r t m e n t a l Esti m a t e s .

Y o u r s s i n c e r e l y ,

J ____ Z Z A

S E N A T O R F O R W E S T E R N AUSTRALIA.

231

ESTIMATES COMMITTEE F

QUESTIONS TAKEN ON NOTICE BY DEPARTMENTAL OFFICERS BEFORE AND DURING THE HEARINGS

Appendix 1

SENATE ESTIMATES COMMITTEE F

QUESTIONS TAKEN ON NOTICE BY DEPARTMENTAL OFFICERS BEFORE AND DURING THE HEARINGS ANSWERS RECEIVED AS AT 8 MAY 1991

Senator Subject Date to Dept./ Answer Provided

Hansard Page Received to Senator Remarks

D epartment of Industrial R elations

General Questions Taken on Notice at hearing

Chapman Workplace Reform Program - industries and companies strategically important to the economic agenda.

Chapman Workplace Resources Scheme and Workplace Resources Centres - financial details of operations of centres - consultants.

18.04.91/F7

18.04.91/F8 18.04.91/F8

Chapman Structural Efficiency Principle - major reforms achieved - development of effectiveness of performance based pay

- progress of review.

18.04.91/F9

18.04.91/F9 18.04.91/F9

Chapman Parental leave 18.04.91/F9

Senator Subject D ate to D e p t/

Hansard Page Answer Received

Chapman Workplace Industrial Relations Survey - cost - number of employees expected to participate - survey - responses to survey - report.

18.04.91/F9 18.04.91/F9 18.04.91/F9 18.04.9l/F10 18.04.91/F10

Chapman Work change assistance scheme - projects - consultancy costs.

18.04.91/F10 18.04.91/F10

Chapman Workplace reform program - revenue. 18.04.91/F10

Chapman Union amalgamation - cost of education. 18.04.91/F12

Chapman Breach of Federal Awards - worst offenders. 18.04.91/F12

Chapman Senior Executive Service - government business enterprises - performance based pay.

18.04.91/F13 18.04.91/F15

Chapman Overseas posts - visits by Departmental staff. 18.04.91/F14

Chapman Changes recommended by internal auditors. 18.04.91/F14

Chapman Programs affected by streamlining of service delivery as a consequence of changes recommended by internal auditors. 18.04.91/F14

Provided to Senator Remarks

233

Senator Subject Date to Dept/ Answer Provided

Hansard Page Received to Senator

Chapman Staffing losses - others. 18.04.91/F14

Chapman International conferences and meetings - cost - attendees - documents tabled or delivered.

Chapman Consultants engaged 1989-90 - Waterhouse Urwick/Noble Lowndes report on performance based pay for the SES. - DWM Consulting Pty Ltd: implementation of

training module - AGB McNair consultancy - Hardwood Communications: booklet, principals

of company - Dr C. Edwards consultancy

Program 1 - Industrial Relations Wages, Incomes and Labour Market Development

Sub-program 1.2 Industrial Relations Development

Chapman Review of building industry superannuation, redundancy and long service leave funds - results 18.04.91/F20

Crane - terms of reference. 18.04.91/F22

Crane Union amalgamation

- application of funding. 18.04.91/F23

18.04.91/F15 18.04.91/F15 18.04.91/F15

18.04.91/F15

18.04.91/F15-F16 18.04.91/F16

18.04.91/F16 18.04.91/F16

Remarks

234

Senator Subject Date to DeptV Answer

Hansard Page Received Provided to Senator

Chapman FATEXT

- present clients - Federal Awards on database - anticipated clients.

Sub-program 1.5 Australian Industrial Relations Commission

Crane Australian Industrial Relations Commission - total costs 1988-89, 1989-90, 1990-91. - total cost of operations of Commission - new Deputy Commissioner and support staff:

yearly cost 1991-91

Sub-program 1.7 Australian Trade Union Training Authority

Crane Australian Trade Union Training Authority - current staff numbers

18.04.91/F21 18.04.91/F21 18.04.91/F21-F22

18.04.91/F17 18.04.91/F18

18.04.91/F19

18.04.91/F20

Remarks

235

Senator Subject D ate to DeptV Answer Provided

Tambling

D epartment of Primary Industries and E nergy

Questions Placed on Notice prior to hearing

Conference on Transport needs of people living in Remote and Rural Australia - when will report of conference be publicly released

Hansard Page

15.04.91/F5-F6

Received

17.04.91

to Senate

17.04.91

- cost of conference and fees charged to participants. 15.04.91/F5-F6 17.04.91 17.04.91

Tambling

Sub-Program 2.1 - Natural Resource Management

Control of the noxious Mimosa Pigra weed in Kakadu National Park. 28.03.91/F3 12.04.91 15.04.91

Tambling Landcare - grants made available or committed to Aboriginal organisations in Northern Territory to promote understanding of soil conservation practices and/or landcare projects. 28.03.91/F4 12.04.91 15.04.91

Tambling

Sub-Program 23 - Quarantine and Inspection

Illegal fishermen in North Australian waters and arrival of refugees by boat - funding and programs for surveillance, apprehension, prosecution and repatriation 28.03.91/F4-F5 12.04.91 15.04.91

- departmental liaison and consultation 28.03.91/F5 12.04.91 15.04.91

- results of contact with Indonesian and other Asian authorities. 28.03.91/F5 12.04.91 15.04.91

Remarks

Answers incorporated in Estimates Hansard pp. F5-F6

Answer incorporated in Estimates Hansard p. F3

Answer incorporated in Estimates Hansard p. F4

Answers incorporated in Estimates Hansard pp. F4-F5

Senator Subject D ate to D e p t / Answer Provided

Hansard Page R eceived to Senator

Questions Placed on Notice at bearing

Program 1 - Industries Development

Sub-program 1.1 Livestock and Pastoral

Chapman Australian Meat and Livestock Corporation - value of consultancies 18.04.91/F27

- recipients 18.04.91/F27

- relationship of the Chairman to these recipients - value of farm-gate related research carried out 18.04.91/F27 by the Corporation as opposed to total expenditure

by the Corporation. 18.04.91/F27

Sub-program 13 Fisheries

Archer AFMA consultant - salary. 18.04.91/F44

Remarks

Senator Subject Date to Dept./ Answer

Hansard Page Received Provided to Senator

Panizza

Sub-program 1.4 Petroleum

Resource Rent Tax - payment for May and June 1991 18.04.91/F47 26.04.91

- under or over estimation 18.04.91/F48 26.04.91

- allocation in budget if legislation delayed 18.04.91/F48 26.04.91

- allocations required for previous months 18.04.91/F48 26.04.91

- sharing of royalties 18.04.91/F48 26.04.91

- discrepancies between payments made and amount required under legislation 18.04.91/F48 26.04.91

- delay of the resource rent tax 18.04.91/F48 26.04.91

- affect of delay on investment in Bass Strait and Government revenue 18.04.91/F48 26.04.91

- gas royalty: how much, how calculated. 18.04.91/F48 26.04.91

Chapman

Sub-program 1.6 Nuclear

Atomic testing on Monte Bello - Commonwealth indemnified by WA Government for future claims by individuals affected by atomic testing

- Ex-Servicemen's Association - responsibility for compensation - rehabilition of site - further payments.

18.04.91/F27 18.04.91/F27 18.04.91/F27 18.04.91/F27

30.04.91 30.04.91 30.04.91 30.04.91

30.04.91

30.04.91 30.04.91

30.04.91 30.04.91

Remarks

238

Senator Subject D ate to D e p t /

Hansard Page Answer Received

Program 2 - Infrastructure and Support

Sub-program 2.1 Natural Resource Management

Chapman Murray-Darling Basin Commission - purchase of computer accounting software - final payment re Burdekin Dam. 18.04.91/F27

18.04.91/F27

Chapman Whole farm plan. 18.04.91/F27 30.04.91

Sub-program 2.2 Rural Adjustment Services

Chapman What particular services will received the additional funds and how will they be applied. 18.04.91/F27

Tambling Conference on Transport needs of people living in Remote and Rural Australia - details reconciliation of costs and fee structures. 18.04.91/F56

Sub-program 23 Quarantine and Inspection

Chapman Rent increases - nature - premises affected - moving premises rather than paying higher rent - competitive rent.

18.04.91/F27 18.04.91/F27 18.04.91/F28 18.04.91/F28

Provided to Senator

1.05.91

Remarks

Senator Subject D ate to D e p t/ Answer Provided

Hansard Page Received to Senator

Remarks

Chapman

Tambling

AQIS - supplementation for superannuation for the salary components of AQIS payments to the States - progress in recovering costs of providing inspection

and quarantine services - percentage of total cost of each segment of coastal surveillance, air, sea, land or other paid by AQIS - joint venture arrangements between Aboriginal

interests on Groote Eylandt, fishing operators in northern Australia and interests in Indonesia.

18.04.91/F28

18.04.91/F28

18.04.91/F28

18.04.91/F56-F57

Crane

Chapman

Sub-program 2 5 Plague Locust Control

Coordination between the Commonwealth and the Western Australia Government on identification, research, etc - outcome 18.04.91/F58

- financial assistance. 18.04.91/F58

Program 3 - Research Assessment

Sub-program 3 3 Rural Research

Rural research effort coordinated by Department - current structure - industry contributions to research - maintenance of 1990-91 estimate

- projected reductions in industry contributions over next financial year due to declining prices or falling volumes - effect on the Government matching contributions

in each case

18.04.91/F28

18.04.91/F28

18.04.91/F28

18.04.91/F28

240

Senator Subject D ate to D ept./ Answer Provided

Hansard Page R eceived to Senator

Remarks

Rural research effort coordinated by Department (continued) Chapman - industry levy and Government contribution: prediction of sum total

- comparable figures for last four years - Government's annual contribution to various rural research industries - industry levy in each industry - constant

dollars - affect of declining prices and falling volumes on financial resources available to each group - commitments curtailed or withdrawn owing to

declining financial resources - predicted commodity groups who will cut short their rural research commitments - commodities mostly affected by decline in

rural research - affect of declining government and industry contribution to reseach efforts - funding research at State levels

- breakdown of State funding for last three years - funding syndicated research efforts of agencies at State and Federal levels - opportunities for funding syndicated research

- regional oriented research.

18.04.91/F28 18.04.91/F28

18.04.91/F28

18.04.91/F28

18.04.91/F28

18.04.91/F28

18.04.91/F28

18.04.91/F28

18.04.91/F28 18.04.91/F28 18.04.91/F28

18.04.91/F28 18.04.91/F28 18.04.91/F28

Chapman Photocopying machines - justification for purchase - purchasing reform guidelines - increasing workload of machines with copying from

other Departments.

18.04.91/F28 18.04.91/F28

18.04.91/F29

241

Received

Provided to Senator Remarks

Senator Subject D ate to D ept./ Answer Provided

Hansard Page R eceived to Senator

D epartment of T ransport and C ommunications

Questions Placed on Notice prior to hearing

Tambling Conference on Transport needs of people living in Remote and Rural Australia - when will report of conference be publicly released - cost of conference and fees charged to

15.04.91 26.04.91 26.04.91

participants 15.04.91 26.04.91 26.04.91

Program 1 - Aviation

Crane Qantas

- status of debt 11.04.91/F3 17.04.91 17.04.91

- action taken to bring debt under control - effect of Gulf war and world-wide recession 11.04.91/F3 17.04.91 17.04.91

on Qantas trade - has financial outlook been revised given 11.04.91/F3 17.04.91 17.04.91

Gulf war and world-wide recession 11.04.91/F3 17.04.91 17.04.91

- steps taken to turn financial position around 11.04.91/F3 17.04.91 17.04.91

Sub-Program 1.6 - Federal Airports Corporation

Tambling Darwin and Alice Springs airports - proposed changes in 1990/91 to security and safety arrangements. 28.03.91 22.04.91 22.04.91

Remarks

Questions not incorporated in Hansard - See Estimates Report Appendix 2

Answers incorporated in Estimates Hansard p. F3

Questions not incorporated in Hansard - See Estimates Report Appendix 2

Senator Subject D ate to Dept./ Answer Provided

Hansard Page Received to Senator

Tambling New airport facilities - Darwin and Alice Springs - construction timetable and proposed expenditure 28.03.91 22.04.91 22.04.91

- timetable for completion of projects - approved re-design in each project since original 28.03.91 22.04.91 22.04.91

contracts and financial variations - proportion of sub-contracts for supply, services 28.03.91 22.04.91 22.04.91

and labour let to contractors/suppliers outside the Northern Territory. 28.03.91 22.04.91 22.04.91

Tambling Parking fees at old Darwin airport terminal - average weekly income - cost of installation of voucher machines and 28.03.91 22.04.91 22.04.91

estimated cost of relocation of machines to new terminal 28.03.91 22.04.91 22.04.91

- cost of servicing and maintaining machines. 28.03.91 22.04.91 22.04.91

Tambling Baggage conveyor facilities Darwin airport - what contracts have been let or anticipated for facilities at new Darwin airport - costs associated with transferring and

28.03.91 22.04.91 22.04.91

incorporating old conveyor systems and integrating them at new terminal. 28.03.91 22.04.91 22.04.91

Tambling Darwin Airport - extent of fire damage to lighting facilities/ tarmac and taxiways on 28 February 1991. - estimated cost of repairs and timetable for

28.03.91 26.04.91 26.04.91

completion of remedial works. - why was the damage not capable of repair from 28.03.91 26.04.91 26.04.91

existing FAC maintenance programs. 28.03.91 26.04.91 26.04.91

Remarks

Questions not incorporated in Hansard - see Estimates Report Appendix 2

Questions not incorporated in Hansard - see Estimates Report Appendix 2

Questions not incorporated in Hansard - see Estimates Report Appendix 2

Questions not incorporated in Hansard - see Estimates Report Appendix 2

Remarks Senator Subject D ate to D e p t/

Hansard Page Answer R eceived

Sub-Program 1.7 - Civil Aviation Authority

Tambling Search and Rescue - co-ordination changes implemented - number of staff transferred, retrenched or retired. 28.03.91

28.03.91

22.04.91 22.04.91

Provided to Senator

22.04.91 22.04.91

Questions not incorporated in Hansard - see Estimates Report Appendix 2

Tambling

Program 3 - Telecommunications

Subsidies for Imparja television - ongoing commitment. 28.03.91/F3 17.04.91 17.04.91

Panizza

Sub-Program 3.1 Telecommunication Policy

Position of policy development and/or implementation in relation to the installation of telecommunications networks for remote areas using satellite technology. 11.04.91 22.04.91 24.04.91

Tambling

Sub-Program 3.2 - Telecom

Telecom offices in the Northern Territory - expenditure in 1990/91 for scaling down of offices 28.03.91 22.04.91 22.04.91

- timetable and staff resources involved in scaling down. 28.03.91 22.04.91 22.04.91

Tambling Roebourne exchange and Carnarvon repeater station - technical problems 28.03.91/F2-F3 17.04.91 17.04.91

- extent technical problems have affected telecommunication services to North-West Western Australia. 28.03.91/F2-F3 17.04.91 17.04.91

Answer incorporated in Estimates Hansard p. F3

Questions not incorporated in Hansard - see Estimates Report Appendix 2

Questions not incorporated in Hansard - see Estimates Report Appendix 2

Answers incorporated in Estimates Hansard pp. F2-F3

Senator Subject Date to Dept/ Answer Provided

Hansard Page Received to Senator Remarks

Tambling

Sub-Program 4.1 - Road and Rail Policy and Development

Barkly Highway - proposals for realignment of the highway at the intersection with the Stuart Highway. 28.03.91 26.04.91 26.04.91

- financial provision or commitment given to this project. 28.03.91 26.04.91 26.04.91

Tambling Alice-Darwin Railway - proposals under consideration for construction of railway. 28.03.91 26.04.91 26.04.91

- financial provision or commitment given to this project. 28.03.91 26.04.91 26.04.91

Questions not incorporated in Hansard - see Estimates Report Appendix 2

Questions not incorporated in Hansard - see Estimates Report Appendix 2

246

Senator Subject Date to Dept/

Hansard Page Answer Received

Questions Taken on Notice at the hearing

General Questions

Telecom

Panizza Western Australia telephone directories 18.04.91/F65

Special Broadcasting Service

Bishop World Cup Soccer 1990

- negotiations with ABC - fixed price - actual versus estimated cost

18.04.91/F66-F67 18.04.91/F68 18.04.91/F68

Bishop Book Show

- fee for Mr Sommers - above and below line costs to produce show 18.04.91/F70 18.04.91/F71-F72

Bishop Vox Populi

- cost of producing show 18.04.91/F72

Bishop Beijing bid for Olympic Games 2000 - cost of covering launch - program planning for story 18.04.91/F73

18.04.91/F73-F74

Crane Auditor-General's Report No 20

- fixed asset stock-take: what over-looked for two years, when will stock-take be completed, action to be taken if discrepancies show up 18.04.91

Provided to Senator Remarks

Questions not incorporated in Hansard - see Estimates Report Appendix 2

Bishop

Bishop

Crane

Bishop

Senator

Bishop

Subject

Australian Broadcasting (Corporation

World Cup Soccer 1990 - original agreement with SBS

Broadcasting of sport - who sets fees

Auditor-General's Report No 20 - communications and plant: list of missing assets, items taken by staff - accuracy of assets register

Federal Airports Corporation

Date to Dept/ Answer Hansard Page Received

18.04.91/F75-F76

18.04.91/F79

18.04.91/F84 18.04.91/F84 18.04.91/F84-F85

New baggage handling equipment Sydney Airport - tenderers - number of Australian tenderers - number of companies who tendered for component

parts - Australian content - Australian tender: origin of construction of

equipment - FAC officers visit to Germany - civil offsets

18.04.91/F86 18.04.91/F86

18.04.91/F86-F87 18.04.91/F87

18.04.91/F87 18.04.91/F87-F88 18.04.91/F88

Sydney Earthmoving Pty Ltd - fill for third runway Sydney Airport 18.04.91/F89

Provided to Senator Remarks

248

Senator Subject Date to DepL/ Answer Provided

Hansard Page Received to Senator Remarks

Crane

Program 1 - Aviation

Sub-program 1.1 International Aviation

Qantas - definition of Valuable assets' 18.04.91/F103

Crane

Sub-program 1.7 Civil Aviation Authority

Auditor-General's Report No 20 - procedures and controls in relation to foreign exchange contracts: action taken to rectify problem identified by Auditor-General, how do

new procedures differ from old 18.04.91

- internal review of fixed assets: progress, expected completion date, decision on implementation of recommendations 18.04.91

- problems in levying of aviation charges: action taken to rectify problem with flight records, will it alleviate problem. 18.04.91

Crane

Program 3 - Telecommunications

Sub-program 3.1 Telecommunications Policy

Telecom share of AUSSAT - how valued 18.04.91/F96

- how many values 18.04.91/F96

- private and/or government valuation 18.04.91/F96

- value in market place 18.04.91/F96

Questions not incorporated in Hansard - see Estimates Report Appendix 2

249

Senator Subject Date to Dept/ Answer Provided

Hansard Page Received to Senator

Program 4 - Land Transport

Sub-program 4.1 Road and Rail Policy and Development

Panizza Australian Land Transport Development A ct 1988 - ministerial discretion for allocating funds 18.04.91/F102 - ministerial accountability 18.04.91/F102

- ministerial veto re road toll 18.04.91/F102

- indexation of road funding 18.04.91/F102

- accountability of States 18.04.91/F102

- allocation to Urban Public Transport - conditions 18.04.91/F102 - divertion of funds from Eastern Freeway in Melbourne to 'public transport' 18.04.91/F102

Sub-program 4.2 Road Safety

Panizza Charging regime for heavy vehicles 18.04.91/F103

Panizza Road rules and regulations - uniform 18.04.91/F103

- problems if agreement to standardise not reached 18.04.91/F103 Panizza Regional impact statement - effect of increased charges in rural and remote areas 18.04.91/F103

- cost of new regime in these areas 18.04.91/F103

Panizza Sales tax on truck parts, tyres, etc 18.04.91/F103

Panizza 'Lights on' on motorcycles - impact on road safety 18.04.91/F103

Panizza Development of full-operational quality management systems 18.04.91/F103

Remarks

250

Senator Subject Date to Dept/ Answer

Hansard Page Received Provided to Senator

Panizza

Panizza

Panizza

Panizza

Panizza

Panizza

Panizza

Road construction costs - monitoring

Serious injuries - database

Child safety campaign - outcome

Provincial Cities and Rural Highways Program - projects funded in 1990-91

Black Spots Program - projects funded in 1990-91

Urban Public Transport Program - projects funded in 1990-91

Sub-program 4 3 Australian National

18.04.91/F103

18.04.91/F103

18.04.91/F103

18.04.91/F103

18.04.91/F103

18.04.91/F103

National Rail Freight Corporation - Headquarters site - decision - appointment of Chief Executive - State shareholdings - ownership of track or signalling and communications

systems - operation of Australian National - funding of operating deficit - industrial structure of Corporation

- operational date of Corporation - money set aside for establishment of Corporation - redundancies in State rail systems - taxation provisions

- trade practices provisions - Commonwealth funding

18.04.91/F102 18.04.91/F103 18.04.91/F103

18.04.91/F103 18.04.91/F103 18.04.91/F103 18.04.91/F103

18.04.91/F103 18.04.91/F103 18.04.91/F103

18.04.91/F103 18.04.91/F103 18.04.91/F103

Remarks

251

Senator Subject Date to Dept/ Answer Provided

Hansard Page Received to Senator

Crane

Crane

Crar>-

Program 5 - Maritime

Sub-program 5.6 Waterfront Industry Reform Authority

Redundancies - WLA program - number - total expenditure - pay-out - number accepting offers - number paid out so far - shortfall in number of acceptances and processing - Department of Finance saving - nature of savings

- total expenditure to date

18.04.91/F94 18.04.91/F94 18.04.91/F94 18.04.91/F94 18.04.91/F94

18.04.91/F94 18.04.91/F94 18.04.91/F94 18.04.91/F94

Sub-program 5.7 Shipping Industry Reform Authority

Redundancies under program - expenditure so far this year - total number - number in pipeline for payment this year (1991)

- savings in the allocations for this financial year - savings not identified in Financial Paper

18.04.91/F94 18.04.91/F94 18.04.91/F94 18.04.91/F94 18.04.91/F94

Sub-program 5.8 Australian Maritime Safety Authority

Australian Maritime Safety Authority - funds spent before decision made not to move to Newcastle: breakdown 18.04.91/F101

Remarks

252

253

ESTIMATES COMMITTEE F

QUESTIONS AGREED TO BE INCORPORATED IN HANSARD BUT NOT PUBLISHED IN THE HANSARD PROOF OF PROCEEDINGS ON APRIL 8, 1991

254 Appendix 2

Question from Senator Tambling

91/12

Lodged 28/03/1991

O N N O T I C E

ESTIMATES COMMITTEE F

APRIL 1991

D E P A R T M E N T O F T R A N S P O R T A N D C O M M U N I C A T I O N S

Program 1.6: Federal Airports Corporation

1. What changes are proposed in 1990/91 with regard to the security and safety arrangements at Darwin and Alice Springs airports?

255

Question from Senator Tambling 91/14

Lodged 28/03/1991

ON NOTICE

ESTIMATES COMMITTEE F

APRIL 1991

DEPARTMENT OF TRANSPORT AND COMMUNICATIONS

Program 1.6: Federal Airports Corporation

1. Please provide full details of the construction timetable and proposed expenditure for the new airport facilities at Darwin and Alice Springs?

2. When will the projects be completed? Have the original timetables been delayed - if so, please give details.

3. What re-design has been approved in each project since the original contracts were let, and what are the

financial variations to the projects?

4. What proportion of sub-contracts in respect of Darwin and Alice Springs airports for supply, services and labour have been let to contractors/suppliers outside the Northern Territory? Full details please.

256

Question from Senator Tambling

91/33

Lodged 28/03/1991

O N N O T I C E

ESTIMATES COMMITTEE F

APRIL 1991

DEPARTMENT OF TRANSPORT AND COMMUNICATIONS

Program 1.6: Federal Airports Corporation

1. What has been the average weekly income generated from the installation of parking fees at the old Darwin

airport terminal?

2. What were the costs of installing the voucher machines and what is the estimated cost for the relocation of these machines to the new terminal facilities?

3. What is the cost of servicing and maintaining these

machines?

2 5 7

Question from Senator Tambling

91/34

Lodged 28/03/1991

ON NOTICE

ESTIMATES COMMITTEE F

APRIL 1991

DEPARTMENT OF TRANSPORT AND COMMUNICATIONS

Program 1.6: Federal Airports Corporation

1. What contracts have been let or are anticipated for the provision of baggage conveyer facilities at the new Darwin airport terminal?

2. What are the costs associated with transferring and

incorporating the old conveyer systems and integrating them at the new terminal?

258

Question from Senator Tambling

91/11

Lodged 28/03/1991

O N N O T I C E

ESTIMATES COMMITTEE F

APRIL 1991

DEPARTMENT OF TRANSPORT AND COMMUNICATIONS

Program 1.7: Civil Aviation Authority

1. What changes have been implemented for the co-ordination of search and rescue?

2. What staff numbers have been transferred, retrenched or retired?

259

Question from Senator Tambling

91/63

Lodged 28/03/1991

O N N O T I C E

ESTIMATES COMMITTEE F

APRIL 1991

DEPARTMENT OF TRANSPORT AND COMMUNICATIONS

Program 3.2: Telecom

1. What expenditure has been given or is proposed in 1990/91 or in forward estimates for the scaling down of Telecom offices in the Northern territory?

2. Please give details relating to the timetable and staff resources involved.

260

Question from Senator T ambling

91/02

Lodged 28/03/1991

ON NOTICE

ESTIMATES COMMITTEE F

APRIL 1991

DEPARTMENT OF TRANSPORT AND COMMUNICATIONS

Program 4.1: Road and Rail Policy and Development

1. What proposals are under consideration for the

realignment of the Barkly Highway at the intersection with the Stuart Highway?

2. What financial provision or commitment has been given for this project?

261

Question from Senator Tambling

91/42

Lodged 28/03/1991

ON NOTICE

ESTIMATES COMMITTEE F

APRIL 1991

DEPARTMENT OF TRANSPORT AND COMMUNICATIONS

Program 4.1: Road and Rail Policy and Development

1. What proposals are currently under consideration for the construction of the Alice-Darwin railway?

2. What financial provisions or commitments have been given to this project?

2 6 2

Q u e s t i o n f r o m S e n a t o r T a m b l i : g

9 1 / 7 1

L o d g e d 1 5 / 0 4 / 1 9 9 1

O N N O T I C E

E S T I M A T E S C O M M I T T E E F

A P R I L 1991

D E P A R T M E N T O F T R A N S P O R T A N D C O M M U N I C A T I O N S

P r o g r a m 1.6: F e d e r a l A i r p o r t s C o r p o r a t i o n

1. W h a t w a s t h e e x t e n t of t h e d a m a g e b y fire to the l i g h t i n g

f a c i l i t i e s / t a r m a c and t a x i - w a y s at D a r w i n a i r p o r t on the

28 F e b r u a r y 1991?

2. W h a t is t h e e s t i m a t e d c o s t o f repairs a n d t h e t i m e t a b l e

for c o m p l e t i o n of r e m e d i a l w o r k s ?

3. W h y w a s t h e d a m a g e not c a p a b l e of r e p a i r f r o m e x i s t i n g

F A C m a i n t e n a n c e prog r a m s ?

263

Q u e s t i o n f r o m S e n a t o r T a m b l i n g

9 1/72

L o d g e d 15/04/1991

ON NOTICE

ESTIMATES COMMITTEE F

APRIL 1991

DEPARTMENT OF TRANSPORT AND COMMUNICATIONS

P r o g r a m 4.1: Road a n d R a i l P o l i c y D e v e l o p m e n t

1. W h e n wil l the r e p o r t of the r e c e n t c o n f e r e n c e o n

T r a n s p o r t needs o f p e o p l e livi n g in R e m o t e a n d R u r a l

A u s t r a l i a be p u b l i c l y r e l e a s e d ? C a n a c o p y b e m a d e

a v a i l a b l e to the c o m m i t t e e .

2. W h a t w a s the c o s t o f t h e c o n f e r e n c e and w h a t fees w e r e

c h a r g e d to p a r t i c i p a n t s ?

264

T r e a s u r y A c t i v i t i e s

Pag e - 148

P a r a g r a p h - 15.10.3

The A u d i t o r - G e n e r a l found that p r o c e d u r e s and c o n t r o l s in

r e l ation to fore i g n e x c h a n g e contracts, and th e r e c e i p t

of, and p a y m e n t f o r , fore i g n c u r r e n c i e s , w e r e not s t r o n g

enough. A c t i o n has b e e n t a k e n to r e c t i f y this.

Ql. What action has b een taken?

Q 2 . H o w is this d i f f e r e n t to p r o c e d u r e s in p l a c e b e f o r e ?

Fixed A s s e t s :-

Pag e - 149

P a r a g r a p h - 15.10.5

An internal r e v i e w t e a m has been e s t a b l i s h e d to look at

r e c o n c i l i a t i o n and p r o c e d u r e s for the a c q u i s i t i o n and

reti r e m e n t of fixed assets after the A u d i t o r - g e n e r a l

iden t i f i e d p r o b l e m s .

Q l . H o w is the r e v i e w p r o g r e s s i n g ?

Q 2 . When will it be c o m p l e t e d ?

When will a d e c i s i o n be m a d e on i m o l e m e n t a t i o n of any

r e c o m m e n d a t i o n s ?

Q3 .

A v i a t i o n Charges:-

Page - 149

P a r a g r a p h - 15.10.8

2 6 5

T h e A u t h o r i t y h a s m o v e d t o p u t i n p l a c e a p p r o p r i a t e

c o n t r o l s o v e r f l i g h t r e c o r d s a f t e r t h e A u d i t o r - G e n e r a l

i d e n t i f i e d p r o b l e m s i n t h e l e v y i n g o f a v i a t i o n c h a r g e s .

Ql. W h a t a c t i o n has b e e n taken?

Q 2 . W i l l t h i s a c t i o n a l l e v i a t e the p r o b l e m ?

266

“S P E C I A L B R O A D C A S T I N G S E R V I C E

F i x e d A s s e t S t o c k - t a k e : -

Page - 152

P a r a g r a p h - 15.15.9

T h e r e h a d not bee n a c o m p l e t e v e r i f i c a t i o n of S B S ' f ixed

assets for o v e r two y e a r s . It was u n d e r t a k e n that a full

s t o c k - t a k e w o u l d be c o m p l e t e d d u r i n g 1990-91 a n d that

this w o u l d not h a p p e n in the future.

Ql. W h y has this bee n o v e r - l o o k e d for two years?

Q 2 . W h e n wil l the s t o c k - t a k e be c o mpleted?

Q 3 . W hat a c t i o n will be t a k e n if any d i s c r e p a n c i e s s h o w up,

g i v e n the e l a p s e d tim e since the last s t o c k - t a k e ?

2 6 7

ESTIMATES COMMITTEE F

INDEX TO HANSARD THURSDAY, 18 APRIL 1991

269

ESTIMATES COMMITTEE F HANSARD INDEX

Thursday, 18 April 1991

S u b je c t P a g e

DEPARTMENT OF INDUSTRIAL RELATIONS

General Questions

Annual Report 1989-90 performance indicators to measure success of mission statement F7 definition of ‘fair wages and conditions’ in mission statement F7

workplace reform program : industries and companies strategically important to the economic agenda F7

review of licensing arrangements in electrical and building trades : fewer demarcation disputes F7

workplace resources scheme and workplace resources centres : departmental involvement, financial details of operation of centres, consultants F8

structural efficiency principle : major reforms achieved, development of effectiveness of performance based pay, progress of review F9

parental leave F9

workplace industrial relations survey : cost, survey, response to survey, report F9-F10

work change assistance scheme : projects, gains, consultancy costs F10

workplace reform program : revenue F10

labour market reform strategies : grants F10-F12

union amalgamation : funding of legal costs, relocation expenses, cost of education F12

breach of Federal Awards : worst offenders, most serious breaches, prosecutions F12

SES : monitoring of remuneration F12

performance based pay F13.F15

government business enterprises F13

overseas posts : how many Department administers F13

: visits by Departmental staff F14

changes recommended by internal auditors F14

programs affected by streamlining of service delivery as consequence of those changes F14

staffing losses : other F14

trade tests : cost, trade sectors with skills in short supply, fast track recruitment F14-F15

270

international conferences and meetings : cost, attendees, documents tabled or delivered, OECD conference in Paris F15 consultants engaged 1989-90 : Waterhouse, Urwick/Noble Loundes Report on performance based pay for SES F15

DWM Consulting Pty Ltd training module, training schedule, implementation of module F15-F16

AGB McNair consultancy F16

Hardword Communications : booklet, principals of company F16 Dr C. Edwards consultancy F16

Program 1 - Industrial Relations Wages, Incomes and Labour Market Development

Sub-program 1.2 : Industrial Relations Development

Review of building industry superannuation, redundancy and long service leave funds : nature of review, conduct, results, salaries, terms of reference, objective F20-F22

Government and Western Australian business and trade union advisory groups : liaison, funds F21-F23

Union amalgamations : application of funding, F21.F23

run-down in expenditure F23

Federal award text retrieval system : nature of software problems, clients, Federal awards on database, anticipated clients F21-F22

Sub-program 1.4 -.Affirmative Action Agency

Increased outgoings of $8,500 F17

Rates disputes F17

Sub-program 1.5 : Australian Industrial Relations Commission

Cost increases by Australian Property Group F17

Australian Industrial Relations Commission : total costs 1988-89, 1989,90, 1990-91 F16-F17

total costs of operations of Commission F18

Hearings : decisions, costs F18-F19

2 7 1

New Deputy Commissioner and support sta ff: yearly cost 1991-92, filling of positions F19

S u b - p r o g r a m 1 . 7 : A u s t r a l i a n T r a d e U n i o n T r a i n i n g A u t h o r i t y

Redundancy and resignation payouts F19-F20

Replacements F20

Current staff numbers F20

P r o g r a m 2 - A u s t r a l i a n G o v e r n m e n t E m p l o y m e n t : R e m u n e r a t i o n ,

S t r u c t u r e s a n d C o n d i t i o n s

S u b - p r o g r a m 2 . 3 : R e m u n e r a t i o n T r i b u n a l s

Pharmaceutical Benefits Remuneration Tribunal inquiry : expected date of completion F23-F24

S u b - p r o g r a m 2 . 4 : C O M C A R E

Computer upgrade program : funds, completion date, contractors, interest rate F24

Late premium payments to agencies classified as government business enterprises : progress of legislation to remove requirement to bring amount into COMCARE accounts F24

P r o g r a m 3 - C o r p o r a t e M a n a g e m e n t a n d S u p p o r t

S u b - p r o g r a m 3 . 4 : C o r p o r a t e S e r v i c e s

Additional funds of $200,000 F24-F25

Projected revenue : seminars F25

Semi-official phone receipts F25

Sale of staff housing F25

Appropriations Bill No. 4 F25

2 7 2

DEPARTMENT OF PRIMARY INDUSTRIES AND ENERGY

A nsw ers to Q uestions Placed on N otice Prior to the H earing

Program 2 - Infrastructure and Support

Sub-Program 2.1 : Natural Resource Management

Mimosa Pigra : control of weed in Kakadu National Park

Landcare : grants to Aboriginal organisations in Northern Territory to promote understanding of soil conservation

Sub-Program 2.3 : Quarantine and Inspection

Surveillance and apprehension of illegal fishermen in North Australian waters and arrival of refugees : funding and programs in 1991

Report on Conference on Transport needs of people living in Remote and Rural Australia : availability of Report, cost and fees charged

General Q uestions

Revised senior officer structure : what it is, achievements gained, officers affected, representation, award

Performance based pay : introduction, AIRC decision, affect on salary budget, affect on staff numbers, offsets, savings, reallocation of resources

Program 1 - Industries Development

Sub-program 1.1 -.Livestock and Pastoral

Australian Meat and Livestock Corporation : value of consultancies, recipients, relationship of the Chairman to these recipients, value of farm-gate related reseach carried out by the Corporation as opposed to total expenditure by the Corporation

F3-F4

F4

F4-F5

F5-F6

F29-F30

F30-F33

F27

273

Sheep slaughter scheme : termination of scheme, supply and demand for wool, economic effectiveness of program, termination without analysis, grower levy, assessment of program, wool stockpile, analysis

of problem with wool market, stage of Department’s planning, flow of wool onto market, benefit analysis of program, number of sheep slaughtered through abattoirs

Vines Committee and marketing mission : cost, results from selling mission, stage of Committee’s task, countries visited

Interim Wool Policy Council : representative of wool interests, consultants, expenditure until 30 June, progress of work, terms of reference for consultants

Live sheep trade : re-establishment in the Middle East, replacement of markets lost, other countries approached, South Africa, Italy

Sub-Program 1.2 : Crops

Fresh orange juice and fresh oranges : special marketing projects, application of funds, companies benefiting from the projects, identification of potential export markets, expenditure

Wheat Board : examination of Board by United States Department of Agriculture

Sub-Program 1.3 : Fisheries

AQIS : Indonesian fishing boats - analysis of impact

Fisheries management arrangement: cost, division of operations, advice to Minister

AFMA legislation : introduction

AMFA : cost of administration, consultant - daily rate of pay, appropriation, transfer of staff

F33-F36

F36.F38 F37-F38

F36-F38

F39-F40

F40-F41

F42

F42

F42-F43

F43

F43-F45

274

Australian-Japanese Joint Tuna Farming Project : stage of project, interest attracted, Commonwealth involvement, proposal for funding over next few years F46

Shark : participation in Fishery, total fees of previous quotas F46

Tuna and Billfish Research : fees charged to recover costs, access charge F47

Sub-Program 1.4 : Petroleum

Resource Rent Tax : payment for May and June 1991, under or over estimation, allocation in budget if legislation delayed, allocations required for previous months, sharing of royalties, discrepancies between payments made and amount required under legislation, delay of resource rent tax, affect of delay on investment in Bass Strait and Government revenue, gas royalty - how much, how calculated F47-F48

Sub-Program 1.5 : Coal

Coal Memorandum of Understanding with China : expiration, savings, grant-in-aid to Miners Federation, check inspectors, cost recovery, nature of Miners Federation F48-F51

Sub-Program 1.6 : Nuclear

Atomic testing on Monte Bello : Commonwealth indemnified by WA Government for future claims by individuals affected by atomic testing, Ex-Servicemen’s Association, responsibility for compensation, rehabilitation of site - further payments F27

allocation of funds, establishment of marine park, use, Commonwealth grant, British Government’s contribution, British use of Monte Bello, responsibility of British Government, potential risk for people of Western Australia F51-F52

Program 2 - Infrastructure and Support

G eneral Q uestions

National Soil Conservation : tax deductibility, approval of farm plan, liaison to access on-farm programs, Bureau of Statistics F53-F54

2 7 5

Sub-Program 2.1 : National Resource Management

National Soil Conservation Program : transfer of funds, duplication of role with Land Care Program F54-F55

Control of the noxious mimosa pigra weed in Kakadu National Park F27

Murray-Darling Basin Commission : purchase of computer accounting software, final payment relating to the Burdekin Dam F27

Whole farm plan F27

Sub-Program 2.2 : Rural Adjustment Service

Rural Adjustment Scheme : funds sought F56

Conference on Transport needs of people living in Remote and Rural Australia : reconciliation of fees charged, reimbursement of fees charged F56

B Program : discussion with states F56

Rural Adjustment Services : additional funds F27

Sub-Program 2.3 : Quarantine and Inspection

Rent increases : nature, premises affected, moving premises rather than paying higher rent, competitive rent F27-F28

Surveillance : joint venture arrangements, department discussion with industry F56-F57

Sub-Program 2.5 : Plague Locust Control

Australian Plague Locust Commission : operational budget, appropriation for this year, chemical lent to Western Australia for 1990 plague F58

Coordination between the Commonwealth and Western Australia Government on identification, research, etc : financial assistance ^58

2 7 6

Orange peel chemical : alternative chemicals F58

Program 3 - Research and Assessment

Sub-Program 3.1 : Geoscience Research and Resource Assessment

Non-recurring commitment and carry forward of obligation of $229,000 F59

Sub-Program 3.2 : Agricultural and Resource Economic Analysis

Revision of Rental Charges : increased floor space, rent per square metre F59-F60

Sub-Program 3.3 : Rural Research

Increase in salaries F60

Rural research effect coordinated by Department : current structure, industry contributions to research - maintenance of 1990-91 estimate, projected reductions in industry contributions over next financial year due to declining prices or falling volumes, effect on the Government matching contributions in each case, industry levy and Government contribution - prediction of sum total,

comparable figures for last four years, Government’s annual contribution to various rural research industries, industry levy in each industry - constant dollars, affect of declining prices and falling volumes on financial resources available to each group, commitments curtailed or withdrawn owing to declining financial resources, predicted commodity groups who will cut short their rural research commitments, commodities mostly affected by decline in rural research, affect of declining government and industry contribution to research efforts, funding research at State levels, breakdown of State funding for last three years, funding

syndicated research efforts of agencies at State and Federal levels, opportunities for funding syndicated research, regional oriented research F28

Photocopying machines : justification for purchase, purchasing reform guidelines, increasing workload of machines with copying from other Departments F28-F29

2 7 7

Sub-Program 3.4 : Energy Research and Development

Energy management : allocation of funds F60

Program 4 - Corporate Management and Policy

Additional funds of $218,000 : percentage allocated to salaries F29

Sub-Program 4.1 : Corporate Policy

Community participation : organisation and administration F60

Funds for research into reduction of Greenhouse gas emission : relationship with energy management initiative, terms of reference of consultancies F60-F61

Greenhouse Gas Emissions : allocation of funds, sustainable working groups, allocations to organisations F61-F62

DEPARTMENT OF TRANSPORT AND COMMUNICATIONS

A nsw ers to q u estion s p laced on n otice prior to th e hearing

Roeboume Exchange and Carnarvon Repeater Station : rectification by Telecom of technical problems, telecommunication service to North-West Western Australia affected by these faults F2

Subsidies for Imparja Television : ongoing commitment F3

Program 1 - Aviation

Qantas : status of debt, action taken to bring debt under control, effect of Gulf War and world-wide recession on Qantas trade, financial outlook, action taken to turn financial position around F3

278

General Q uestions

T e le c o m

T elecom m u n ication s n etw ork s for rem ote areas : policy and/or im p lem en ta tio n o f sa te llite technology F 64-F 65

W estern A u stra lia telep h o n e directories F65

S p e c i a l B r o a d c a s t i n g S e r v ic e

W orld Cup Soccer 1990 : cost for righ t to broadcast, original b udget, n eg o tia tio n s w ith ABC, cost to p u t to air, fixed price, actu al v ersu s estim a te d cost, break-dow n o f n egotiation s w ith ABC - rea so n s F 66-F 68

A llocation o f funds F67

A n n u al b u d get for sp ortin g a ctiv ities : current year, previous year, reduction o f allocation in current year F 67-F 69

Book Show : n am e o f producer, fee for Mr Som m ers, cost o f producing show , above and below lin e costs F 70-72

Vox P opuli : cost o f producing show F72

Face th e P ress : above lin e cost, ch an ge o f presen ter F 72-F 73

B eijin g’s bid for O lym pic G am es 2000 : cost o f covering lau n ch , program p la n n in g for story - finance, cutbacks F 73-F 74

A u s t r a l i a n B r o a d c a s t i n g C o r p o r a tio n

W orld Cup Soccer 1990 : original a g reem en t w ith S B S, tim e ABC pulled out F 75-F 76, F 78

Soccer :

cigarette and tobacco ad vertisin g F 77

279

B ro a d ca stin g o f sport : w ho s e ts fe e s, b a sis on w h ich fees se t F79

S p on sorsh ip for b ro a d ca stin g o f sp ort : in c id e n ta l a d v ertisin g , w h o s e ts ru les F80

A u s t r a l i a n B r o a d c a s t i n g A c t 1 9 8 3 :

le g a l op in ion o f in te r p r e ta tio n o f A ct F80

A u d itor-G en eral’s R eport N o 20 : a ltera tio n o f procedures r e la tin g to w ork-in-progress, u nder recoveries in te le v isio n p rogram costin g, d eficien t sy stem for su b sid ia ry data, o u tsta n d in g recon ciliation ite m s, m inor

p rocedural an d control d eficien cies - concert rev en u e, etc, co m m u n ication s and p la n t - d eficien cies in th e recording o f a s s e ts , procedures to overcom e, m issin g a sse ts, ite m s ta k e n b y ABC staff, accuracy o f reg ister F 81-F 85

E q u ip m en t b o u g h t an d n o t u se d b eca u se o f w ork p ractice : w h e n b ou gh t, v a lu e o f e q u ip m en t F 85-F 86

F e d e r a l A i r p o r t s C o r p o r a tio n

N ew b a g g a g e h a n d lin g eq u ip m en t - S yd n ey A irport : te n d e r s, n u m b er o f A u str a lia n ten d ers, n u m b er o f com panies ten d ered for com p on en t p a rts, A u stra lia n con ten t, A u str a lia n ten d er - origin o f con stru ction o f eq u ip m en t, b a sis for d ecisio n o f su ccessfu l tender, FAC officers

v is it to G erm any, u p grad e o f oth er airports w ith sim ilar b a g g a g e h a n d lin g eq u ip m en t, civil offsets F 86-F 88

S y d n ey E a rth m o v in g P ty L td : fill for th ird ru n w ay S y d n ey A irport F89

E n te r ta in m e n t o f FAC officers by contractors F 90-F 91

P r o g r a m 1 - A v i a t i o n

S u b - P r o g r a m 1 .1 : I n t e r n a t i o n a l A v i a t i o n

Q an tas : d efin itio n o f ‘va lu a b le a s s e ts ’, dem and F 103-F 104

280

S u b - P r o g r a m 1 .2 : D o m e s t i c A v i a t i o n

ALO P M ain ten an ce P rogram : slip p age in sch ed u le

Land acq u isition for S y d n ey ’s second airport

Increased airport secu rity due to G u lf W ar : allocation o f fu n d s, a d ju stm en t o f u n d ersp en d , secu rity em ployed, outcom e, lev el o f th rea t d u rin g th a t tim e, p osition sin ce end o f G u lf W ar

P r o g r a m 2 - B r o a d c a s t i n g , R a d i o c o m m u n i c a t i o n s a n d T e c h n o lo g y

D e v e l o p m e n t

S u b - P r o g r a m 2 . 5 : C o m m u n i c a t i o n s P o lic y a n d P l a n n i n g

N a tio n a l B ro a d castin g Service : fu n d s for op eration and m a in ten an ce, w h y n ot included in ABC budget

T ra n sm issio n fa cilities in A u stra lia : how m any, coverage, extra costs to cover M iddle E a st d uring G u lf War

P r o g r a m 3 - T e l e c o m m u n ic a tio n s

S u b - P r o g r a m 3 .2 : A u s t r a l i a n T e l e c o m m u n ic a tio n s C o r p o r a tio n

T elecom share o f A U SSA T : how valued, how m a n y v a lu es, p rivate and/or govern m en t v a lu ation , v a lu e in m ark et place

S u b - P r o g r a m 3 .4 : A U S S A T P t y L t d

A U SSA T : d eb t o f $5 1 5 m reported in T h e A u s t r a l i a n , affect on sale, sta g e o f sale - exp ected fin a lisa tio n , confidential docum ent - debt outlined

S u b - P r o g r a m 3 . 6 : A u s t r a l i a n T e l e c o m m u n ic a tio n s A u t h o r i t y

A U S T E L :

fu n d in g in crease, sta ffin g in crease, new functions, role

F 91-F 92

F 92-F 93

F 93-F 94

F95

F 96

F 96

F 96-F 97

F 97-F 98

281

P rogram 4 - L and T ran spor t

Sub -P rog ram 4 .1 : R oad an d R a il Po licy and D eve lopm en t

A u s tra lian L an d T ran spo r t D eve lopm en t A c t 1988 :

discretion for allocating funds, m inisterial accountability, m inisterial veto re road toll, indexation of road funding, accountability of States, allocation to Urban Public Transport - conditions, diversion of funds from Eastern Freeway in Melbourne to ‘public transport’ F102

Sub -P rog ram 4 .2 : R oad Sa fe ty

Charging regime for heavy vehicles F103

Road rules and regulations :

uniform , standardisation - problems if agreement not reached F103

Regional impact statement : effect of increased charges in rural and remote areas, cost

of new regime in these areas F103

Sales tax on truck parts, tyres, etc. F103

‘L ights on’ on motorcycles : impact on road safety F103

Development of full-operational quality management system s F103

Road construction costs : monitoring F103

Serious injuries: database F103

Child safety campaign : outcome F103

Provincial C ities and Rural H ighways Program : projects funded in 1990-91 F103

Black Spots Program : projects funded in 1990-91 F103

Urban Public Transport Program :

projects funded in 1990-91 F103

282

S u b - P r o g r a m 4 .3 : A u s t r a l i a n N a t i o n a l

N a tio n a l Rail F reig h t C orporation : H eadquarters site, ap p oin tm en t o f C h ief E xecu tive, S ta te sh areh old in gs, ow n ersh ip o f track or sig n a llin g and com m u n ication s sy stem s, op eration o f A u stralian N a tio n a l, fu n d in g o f op eratin g deficit, in d u stria l structure of C orporation, operational date o f C orporation, m oney se t asid e for esta b lish m e n t o f Corporation, red u n d an cies in S ta te rail sy ste m s, ta x a tio n provisions, trade practices p rovision s, C om m onw ealth fu n d in g

P r o g r a m 5 - M a r i t i m e

S u b - P r o g r a m 5 .3 : M a r i t i m e S a f e t y

Search and R escu e : in crease in funds, recovery o f costs

S u b - P r o g r a m 5 . 6 : W a te r f r o n t I n d u s t r y R e f o r m A u t h o r i t y

R ed u n d an cies - W IA program : num ber, to ta l expenditure, pay-out, num ber accep tin g offers, num ber paid ou t so far, sh ortfall in num ber o f accep tan ces and processing, D ep artm en t o f F in an ce saving, n a tu re o f sa v in g s, to ta l exp en d itu re to date

S u b - P r o g r a m 5 . 7 : S h i p p i n g I n d u s t r y R e f o r m A u t h o r i t y

R ed u n d an cies u n d er program : exp en d itu re so far th is year, total num ber, num ber in p ip elin e for p aym en t th is year (1991), sa v in g s in th e allocation s for th is fin an cial year, sa v in g s n ot id en tified in F in an cial P ap er

S u b - P r o g r a m 5 . 8 : A u s t r a l i a n M a r i t i m e S a f e t y A u t h o r i t y

A u stra lia n M aritim e S a fety A u th ority : in crease in funds, expenditure from preparation o f proposed relocation o f A M SA to N ew ca stle, AM SA Canberra - sa v in g s on b u d get allocation, funds sp en t before decision m ade n ot to m ove to N ew ca stle - breakdow n

F 102 -F 1 0 3

F 98-F 100

F 94

F 94

F 100-F 101

283

P r o g r a m 6 - C o r p o r a t e D i r e c t i o n a n d S u p p o r t

S u b - P r o g r a m 6 .2 : M a n a g e m e n t S u p p o r t a n d A d v i c e

O ut o f court se ttle m e n t on G rogan Road, N e w b u m : leg a l co sts F101

285

ESTIMATES COMMITTEE F

MINUTES OF PROCEEDINGS

287

THE SENATE

ESTIMATES COMMITTEE F

MINUTES OF PRIVATE MEETING

NO. 1

T hursday, 18 April 1991

1. MEETING: T he C o m m ittee m e t in p rivate se ssio n a t 2.00p m in th e M ain C o m m ittee Room. T he C h airm an , S en a to r B ea h a n , took th e C hair.

2. PROGRAM FOR THE DAY: T he C o m m ittee agreed to th e program for p u b lic p roceedings.

3. BROADCASTING MOTION: S en ator S h erry m oved an d S en a to r P an izza seco n d ed th e m otion "That th e C om m ittee a u th o rises th e recording,

b ro a d ca stin g and re-b road castin g o f its public p roceed in gs in accordance w ith th e ru les co n tain ed in th e order o f th e S e n a te o f 23 A u g u st 1990

con cern in g th e b road castin g o f com m ittee proceedings".

4. ADJOURNMENT: T h e C om m ittee adjourned a t 2 .04 pm .

5. ATTENDANCE: S en a to rs B eah an (C h airm an ), C hapm an, Crane,

M cK iem a n , P a n izza an d Sherry.

06n f i r m e d

M ich ael B ea h a n Chairm an

288

THE SENATE

ESTIMATES COMMITTEE F

MINUTES OF PROCEEDINGS

NO. 2

Thursday, 18 April 1991

1. MEETING: T he C om m ittee m et in public se ssio n a t 2.05p m in th e M ain C om m ittee Room. T he C hairm an, S en a to r B eah an , took th e Chair.

2. OPENING STATEMENT BY CHAIRMAN: T he C h airm an reported th e R esolu tion o f th e S en a te, dated 14 M arch 1991, re la tin g to th e con sid eration o f proposed ad d ition al exp en d itu re for 1990-91 and m ad e a sta te m e n t rela tin g to th e procedure to be follow ed by th e C om m ittee in its ex a m in a tio n o f the A d ditional E stim a te s.

3. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1990-91: DEPARTMENT OF INDUSTRIAL RELATIONS

In attendance: th e m in isteria l resp o n sib ility w as sh ared b etw een S en ator th e H on. P eter Cook, M in ister for In d u strial R elation s, an d S en ator th e H on. Bob M cM ullan. T he M in ister w as accom panied by th e follow ing officers:

D epartm ent o f Industrial R elations -M r B. M arshm an, D ep u ty Secretary Mr P. R eece, A ctin g F irst A ssista n t Secretary, In d u strial R elation s D evelop m en t D ivision

M r R. Stew art-C rom pton, F ir st A ssista n t Secretary, L egal S ervices Group M s M. S ta n ton , A ctin g F irst A ssista n t Secretary, Corporate D evelop m en t D ivision M r T. M unyard, A ssista n t Secretary, R esources B ranch M r G. B rine, A ctin g D irector, F in a n cia l M an agem en t S ection M r R. Condon, A ssista n t D irector, F in an cial M an agem en t S ection Mr M. C oghlan, F ir st A ssista n t Secretary, A P S P a y and S tru ctu res D ivision

289

A ffirm ative A ction Agency:

M s V. P ra tt, D irector M s M. H ill, A ctin g D ep u ty D irector

A ustralian Industrial R elation s Com m ission and Industrial Registry:

Mr M. K elly, E x ecu tiv e D irector, Corporate S ervices Mr J. L eyd en , D irector, A d m in istra tio n

N ation al O ccupational H ealth and Safety Commission:

Mr J. N o la n -N ey la n , D irector, R esou rces M a n a g em en t

A ustralian Trade U nion T rainin g Authority:

Mr P . M a tth ew s, D irector o f S tu d ie s M r C. G annon, M anager, A d m in istra tio n and F in a n ce

R em uneration Tribunal:

Mr T. K en n a, E x ecu tiv e O fficer

Comcare:

M s S. H a lle y , C h ie f E x ecu tiv e Officer Mr P. P h a ra o h , A ctin g G en eral M anager, F in an ce an d S y stem s

D epartm ent o f Finance -Mr R. D e F erra n ti, F in a n ce Officer M s J . P e ttit, F in a n ce Officer

T he C h airm an called on con sid eration o f gen eral ite m s sp a n n in g m ore th a n one program an d th e n th e follow in g P rogram s req u irin g A d d ition al E xp en d itu re for co n sid eration b y th e C om m ittee:

P rogram 1: In d u stria l R ela tio n s W ages, In com es and Labour M arket

D ev elo p m en ts

P rogram 2: A u stra lia n govern m en t Em ploym ent: R em uneration, Stru ctu res and C onditions P rogram 3: Corporate M a n a g em en t and Support

290

T ogether th e exp en d itu re in th ese Program s com prised th e following:

D ivision 365-371 (D ocu m en t A)

D ivision 910 (D ocu m en t B)

4. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1990­ 91: DEPARTMENT OF PRIMARY INDUSTRIES AND ENERGY:

In atten d an ce: the m in isteria l resp o n sib ility w a s sh ared b etw een S en ator th e H on. P eter Cook, rep resen tin g th e M in ister for P rim ary In d u stries and E nergy, and S en a to r th e H on. Bob M cM ullan. T he M in ister w as

accom panied by th e follow in g officers:

D epartm ent o f Prim ary Industries and E nergy -

Mr G.L. L a w less, E x ecu tive D irector, H ead q u arters Group Mr P.T. Core, E xecu tive D irector, M inerals and F ish eries Group Mr B .J. H ill, E x ecu tive D irector, A griculture and F orestry Group P rofessor R.W .R. R utland, E x ecu tive Director, B u rea u o f M ineral R esources D r B .S . F ish er, E xecu tive D irector, A u stralian B u reau o f A gricultural

E conom ics

D r M .J. W illiam s, A ctin g E x ecu tiv e Director, B u reau o f Rural R esources M r P. H u n t, F ir st A ssista n t Secretary, Corporate A ffairs D ivision Mr B. W onder, F ir st A ssista n t Secretary, L and R esources D ivision M r J.F . L andos, S en ior A ssista n t D irector, A u stra lia n Q u aran tin e and

In sp ection S ervices Mr N .L . B lack m an , Principal V eterin ary Officer, N a tio n a l R esid u e Survey, B u reau o f R ural R esources M r G.C. G orrie, D irector, A u stra lia n F ish eries Service Mr A. N ew to n , Principal A dviser, F ish eries Policy and Projects U n it Mr S .E . H earn , A ssista n t S ecretary, Coal and M in erals D ivision Mr J.H . J e n k in s, A cting F ir st A ssista n t Secretary, L ivestock and P astoral

D iv isio n

Mr W.G. M cGregor, L ivestock and P astoral D ivision D r R. R ichardson, G eneral M anager, R esearch a n d Prom otion, A u stra lia n Wool Corporation Mr D. M ortim er, A ctin g A ssista n t Secretary, L and R esources D ivision Mr C. P en n ifold , D irector, In tern ation al W heat Mr J.M . H ew itt, F irst A ssista n t Secretary, Corporate Policy D ivision M s M. H itch en s, A ctin g F irst A ssista n t Secretary, P etroleu m D ivision Mr J.P . W icks, F irst A ssista n t S ecretary, E n ergy P rogram s D ivision Mr D.G . G ascoine, Director, Food Inspection and Support S ervices,

A u stra lia n Q u arantine In sp ection Service M s W .L. F ish er, A ssista n t S ecretary, F inance B ranch Mr B.V. L ilburn, A ssista n t S ecretary, Crops D ivision M s P.A. L ynton, Crops D ivision Mr J.L. W illis, A ctin g A ssista n t Secretary, T est S ite M an agem en t B ranch

291

M r I.G . T hom pson, P rin cip al E xecu tive D irector, W ater B ran ch M r R.H . W alker, P rin cip al E xecu tive D irector, L and B ranch M r R.A. C alder, A ssista n t S ecretary, A griculture and F orestry S ecretariat B ran ch D r G. H ooper, D irector, A u stra lia n P la g u e L ocust C om m ission M r P .J. G oodsell, A ctin g D irector, A griculture an d V eterin ary C hem icals

M r G.M. F la h erty , P rin cip al E x ecu tiv e O fficer, F in a n cia l M a n agem en t, A u stra lia n Q u a ra n tin e In sp ection Service M r J.A . C ah ill, A ctin g A s s is ta n t D irector, R esource M a n a g em en t B ranch, B u rea u o f M in eral R esources

M r R .N . G illin h am , M an ager, Group S u p p ort U n it, M inerals and F ish eries Group M r J. D on ald son , A s s is ta n t M anager, R esou rces and B u d get M an agem en t, B u rea u o f R ural R esou rces M iss E. B ie, O fficer in C harge, F ield O p eration s

D epartm ent o f F in an ce -M r G. P ico, F in an ce O fficer

S e n a to r th e H on. P e te r Cook, M in ister for In d u stria l R elation s, rep resen tin g th e M in ister for P rim ary In d u stries an d E n ergy, m ade an introductory sta te m e n t.

T he C h airm an called on con sid eration o f g en era l ite m s sp a n n in g m ore than on e program an d th e n th e follow ing P rogram s req u irin g A dditional

E x p en d itu re for co n sid era tio n by the C om m ittee:

P rogram 1: In d u stries D evelop m en t P rogram 2: In frastru ctu re Support P rogram 3: R esearch an d A ssessm en t P rogram 4: C orporate M an a g em en t and P olicy

T o g eth er th e ex p en d itu re in th ese P rogram s com prised th e following:

D iv isio n 490 -4 9 4 (D ocu m en t A) D iv isio n 931-932 (D ocu m en t B)

5. SUSPENSION OF MEETING:

T he C om m ittee su sp en d ed its d iscu ssio n s from 6.43 - 7.54pm .

6. RESUMPTION OF HEARING RELATING TO DEPARTMENT OF PRIMARY INDUSTRIES AND ENERGY:

D isc u ssio n resu m ed on th e D ep artm en t’s program s.

292

7. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1990­ 91: DEPARTMENT OF TRANSPORT AND COMMUNICATIONS:

In attendance: th e m in isteria l resp o n sib ility w a s sh ared by S en a to r the Hon. Bob C ollins, rep resen tin g th e M in ister for T ransport and

C om m unications and S en a to r th e Hon. Bob M cM ullan. T he M in ister w as accom panied b y th e follow ing officers:

D epartm ent o f Transport and C om m unications -Mr P. F ield , A ssista n t Secretary, In d u stry and E conom ic P olicy B ranch, In tern a tio n a l A viation D ivision M s A. B u ttsw o rth , Principal A dviser, D om estic A viation D ivision Mr I. R isch b ieth , A ssista n t S ecretary, Second A irport T ask Force, D om estic

A viation D ivision Mr J. W olfe, A ctin g A ssista n t Secretary, Infrastructure B ranch, D om estic A viation D ivision Mr J. O’D ea, P rincipal E n g in eer, ALOP and G overnm ent Aerodrom e Group,

D om estic A viation D ivision M s N . M organ, P rincipal E n gin eer, ALOP and G overn m en t Aerodrom e Group, D om estic A viation D ivision Mr L. B in k s, D irector, R esource M an agem en t U n it, D om estic A viation

D iv isio n

Mr B. E llis, F ir st A ssista n t S ecretary, B road castin g P olicy D ivision Mr T. S layter, A ssista n t S ecretary, Public B road castin g Policy D ivision M r R .N . S m ith , F ir st A ssista n t Secretary, C om m unications P olicy D ivision Mr G. M cAdoo, A ssista n t Secretary, N ation al B road castin g B ranch,

C om m unications O perations D ivision M s V. F a n n in g, F ir st A ssista n t Secretary, T elecom m u n ication s Policy D ivision Mr R.L. S m ith , Director, E n terp rise Policy Section, E nterp rise Policy

B ranch, T elecom m u n cation s Policy D ivision Mr H. H einrich, C hairm an, C om m onw ealth T ask Force on A sset S a les, T elecom m unications Policy D ivision Mr N . W eslin , P rincipal A dviser, L and T ransport P olicy D ivision Mr P. M em er, F ir st A ssista n t S ecretary, M aritim e P olicy D ivision M r B. H en d erson , A cting F ir st A ssista n t S ecretary, M an agem en t Support

and A dvice, Corporate M an agem en t D ivision Mr J. E llio tt, A ssista n t S ecretary, P la n n in g and B u d g etin g B ranch, C orporate M an agem en t D ivision

A ustralian B roadcasting Corporation:

Mr S. R evill, A ctin g M an agin g D irector Mr P. L idbetter, G eneral M anager, Finance

293

A ustralian B road castin g Tribunal:

M s P. M an ser, A ctin g G en eral M anager M s J. Stafford, D irector, L icen sin g M r G. T anner, A ctin g A s s is ta n t D irector, O w n ersh ip and Control

A ustralian M aritim e S afety Authority:

M r A. K inloch, M an ager, Corporate S ervices

A ustralian T elecom m unications Authority:

M r R. D a v ey , C h airm an M r J. S zyd zik , M an ager, S ecreta ria t

A ustralian T elecom m unications Corporation:

M r J. H olm es, C orporate S ecretary M r S. F ish , M anager, E x tern a l R elation s, C orporate S ecreta ria t

F ed eral Airports Corporation:

M r A. R am sey, M an ager, F in a n cia l P la n n in g M r G. G ilch rist, M an ager, G overnm ent L iaison and C orporate S ervices

S p ecial B road castin g Service:

M r R. S to k es, D irector, P olicy and C o-ordination M r A. L loyd -Jam es, H ea d o f T elevision

D epartm ent o f F in an ce -M r P . C onnolly, S en ior F in an ce Officer, T ransport an d C om m unications P olicy B ran ch

T h e C h airm an m ad e a sta tem en t r ela tin g to th e procedure to be followed by th e C om m ittee in its ex a m in ation o f th e A d d ition al E stim a tes.

T he C h airm an th e n called on con sid eration o f g en eral ite m s sp a n n in g more th a n one program and th en th e follow ing P rogram s req u irin g E xpenditure for con sid eration by th e Com m ittee:

P rogram 1: A viation P rogram 2: B r o a d c a s tin g , R a d io c o m m u n ic a tio n s a n d T ech n o lo g y

D ev elo p m en t

P rogram 3: T elecom m u n ication s P rogram 4: L and T ransport

294

P rogram 5: M aritim e P rogram 6: Corporate D irection and Support

T ogether th e exp en d itu re in th e se Program s com prised th e following:

D ivision 660 -6 6 9 (D ocu m en t A) D ivision 9 7 2 ,9 7 5 (D ocu m en t B)

8. A D J O U R N M E N T :

The C om m ittee adjourned a t 11.40pm .

9. A T T E N D A N C E : S en ators B ea h a n (C hairm an), C hapm an, C rane,

M cK iernan, O lsen , P a n izza and Sherry. S en a to rs Archer, B ish op and T am b lin g a lso p articip ated in th e C om m ittee’s p roceedings.

f C O N F IR M E D

M ichael B ea h a n Chairman

295

THE SENATE

ESTIMATES COMMITTEE F

MINUTES OF PRIVATE MEETING

NO. 3

Tuesday, 7 May 1991

1. MEETING: T he C om m ittee m et in p riv a te se ssio n a t 8 .3 3 a m in Senator B e a h a n ’s office. T he C h airm an , S en ator B e a h a n , took th e Chair.

2 . CONFIRMATION OF MINUTES: T he M in u tes o f th e m eetin g s held on 18 A pril 1991 (No. 1 a n d N o. 2) w ere confirm ed.

3. COMMITTEE REPORT: T he C om m ittee considered m a tters in the C h a irm a n ’s draft report an d agreed it sh ou ld becom e th e fin al report and b e ta b led in th e S e n a te on 8 M ay 1991.

4. CONFIRMATION OF MINUTES: T he M in u tes o f th e m eetin g h eld on 7 M ay 1991 w ere confirm ed.

5. ADJOURNMENT: T h e C om m ittee adjourned a t 8.36am .

6. ATTENDANCE: S en a to rs B ea h a n (C hairm an), C hapm an, C rane and S h erry.

7. APOLOGIES: S en a to rs M cK iem an , O lsen and P an izza.

CONFIRMED

M ich ael B ea h a n Chairm an

297

ESTIMATES COMMITTEE F

ADDENDUM TO REPORT

A ppendix 1: L ist o f questions tak en on notice by departm ental officers before and during the hearings

In sert th e Q u estion s on N otice from Senator K ernot on A U SSAT to the list show n at A ppendix 1 o f th is Report.

A ppendix 2: Q uestions agreed to be incorporated in H ansard but not published in H ansard P ro o f of Proceedings on April 18, 1991

T he attach ed Q uestions on N otice from Senator K ernot on AUSSAT should be added to A ppendix 2 o f th is Report.

M ichael B eahan Chairman

8 M ay 1991

SENATE ESTIMATES COMMITTEE F

QUESTIONS TAKEN ON NOTICE BY DEPARTMENTAL OFFICERS BEFORE AND DURING THE HEARINGS ANSWERS RECEIVED AS AT 8 MAY 1991

Senator Subject Date to D ept/

Hansard Page Answer Received Provided

to Senator

Questions Placed on Notice prior to hearing

Sub-program 3.4 AUSSAT Ply Ltd

Kernot Telecom share of AUSSAT

- cost of buying back Telecom's 25% share - value placed on a 100% of AUSSAT 18.04.91 18.04.91

Kernot Leverage lease deal with Satellite No.2 Pty Ltd - Commonwealth or other bank equity - if equity: how is it derived - how will management fees paid to AUSSAT be repaid

18.04.91 18.04.91 18.04.91

Kernot Contract with Channel 10 Television Network - duration - how much capacity purchased - price

18.04.91 18.04.91 18.04.91

Kernot Contracts with Channel 7 and Channel 9 networks - terms (length of time) - capacity purchased - price

18.04.91 18.04.91 18.04.91

Kernot Satellite mobile telephone service - cost of capacity - purchase of ground equipment: cost - expected tariff

18.04.91 18.04.91 18.04.91

Remarks

298

Senator Subject Date to DeptV

Hansard Page Answer Received Provided

to Senator

Kernot Plans to introduce a competitive service in New Zealand - will service be out going (AUS-NZ) and in coming (NZ-AUS) or just Australia to New Zealand - equipment required

- cost to start this service

18.04.91 18.04.91 18.04.91

Kcrnot Debt prior to sale of AUSSAT

- does AUSSAT expect to need a further injection of equity before year 1990-91 can be signed off by the Directors

- expected interest liability and payments for year 1990-91

18.04.91

18.04.91

Kernot Payments made by ABC for the use of AUSSATs major city earth stations, including the microwave links to those earth stations 18.04.91

Kernot Will the Government incur financial penalties from the banks for terminating the bank loans on AUSSAT early 18.04.91

Remarks

301

Questions from Senator Kernot

Thursday, APRIL 1 9 9 1

ESTIMATES COMMITTEE

QUESTIONS ON AUSSAT

How m u c h d i d t h e G o v e r n m e n t p a y w h e n i t

b o u g h t b a c k T e l e c o m ' s 2 5 p e r c e n t s h a r e i n

A u s s a t ?

W h a t v a l u e d i d t h e G o v e r n m e n t p u t o n a 1 0 0

p e r c e n t o f A u s s a t ?

W i t h r e g a r d t o a l e v e r a g e l e a s e d e a l w i t h

S a t e l l i t e N o . 2 . P t y L t d - a c o m p a n y f o r m e d

t o a c q u i r e n e w s a t e l l i t e e q u i p m e n t , d o e s

t h e C o m m o n w e a l t h o r a n y o t h e r b a n k h o l d

e q u i t y i n S a t e l l i t e P r o p r i e t a r y Tw o ?

I f t h i s i s t h e c a s e , i s t h a t e q u i t y d e r i v e d

f r o m b o r r o w i n g s m a d e b y A u s s a t a n d t h e o n

l o a n e d t o S a t e l l i t e N o . 2 . P t y L t d .

A r e t h e m a n a g e m e n t f e e s p a i d b y S a t e l l i t e

N o . 2 . P t y L t d t o A u s s a t - f o r a d v i c e o n

b u i l d i n g a n d c o n s t r u c t i o n - t o b e r e p a i d i n

s o m e f o r m i n t h e s u b s e q u e n t l e a s e p a y m e n t

m a d e t o S a t e l l i t e N o . 2 . P t y L t d .

I n N o v e m b e r 1 9 8 9 ( a r e f e r e n c e g i v e n t o

AUSTEL o n p r e d a t o r y p r i c i n g b y T e l e c o m i n

t h e t e l e v i s i o n d i s t r i b u t i o n m a r k e t ) A u s s a t

r e - s i g n e d a c o n t r a c t w i t h C h a n n e l 10

T e l e v i s i o n N e t w o r k .

302

W h a t i s t h e d u r a t i o n o f t h a t c o n t r a c t ?

How muc h c a p a c i t y w a s p u r c h a s e d b y C h a n n e l

1 0?

A t w h a t p r i c e ?

A u s s a t h a s a l s o r e n e g o t i a t e d i t s c o n t r a c t

w i t h C h a n n e l 7 a n d C h a n n e l 9 n e t w o r k s .

What a r e t h e t e r m s ( l e n g t h o f t i m e ) o f

t h o s e c o n t r a c t s ?

What c a p a c i t y w a s p u r c h a s e d b y t h e

n e t w o r k s ?

A t w h a t p r i c e ?

W hat i s t h e c o s t o f s a t e l l i t e c a p a c i t y a s

b u i l t i n t o p l a n s t o p r o v i d e a p l a n n e d

s a t e l l i t e m o b i l e t e l e p h o n e s e r v i c e ?

H a s A u s s a t p u r c h a s e d a n y g r o u n d e q u i p m e n t ?

I f s o , w h a t w i l l i t c o s t t o p r o v i d e t h i s

s e r v i c e ?

W hat i s t h e e x p e c t e d t a r i f f f o r t h e m o b i l e

t e l e p h o n e s e r v i c e ? What m a r k e t d o e s A u s s a t

e x p e c t t o w i n f o r i t s M o b i l e T e l e p h o n e

S e r v i c e ?

A u s s a t p l a n s t o i n t r o d u c e a c o m p e t i t i v e

s e r v i c e i n New Z e a l a n d . W i l l t h a t s e r v i c e

b e b o t h o u t g o i n g ( A u s - N Z) a n d i n c o m i n g

303

( N Z - A u s ) o r j u s t b e a n A u s t r a l i a t o New

Z e a l a n d s e r v i c e .

W h a t e q u i p m e n t w i l l b e n e e d e d a n d a t w h a t

c o s t t o s t a r t t h i s s e r v i c e ?

G i v e n t h e p r o p o s e d t i m e t a b l e f o r t h e s a l e

o f A u s s a t a n d t h e f a c t t h a t t h e G o v e r n m e n t

h a s a s s u m e d t h e r e s p o n s i b i l i t y f o r A u s s a t ' s

d e b t p r i o r t o t h e s a l e , d o e s A u s s a t e x p e c t

t o n e e d a f u r t h e r

i n j e c t i o n o f e q u i t y b e f o r e t h e y e a r 1 9 9 0 -

1 9 9 1 c a n b e s i g n e d o f f b y t h e d i r e c t o r s .

W h a t i s A u s s a t ' s e x p e c t e d i n t e r e s t

l i a b i l i t y a n d p a y m e n t s f o r t h e y e a r 1 9 9 0 ­

1 9 9 1 ?

W h a t p a y m e n t s d i d t h e ABC m a k e f o r t h e u s e

o f A u s s a t ' s m a j o r c i t y e a r t h s t a t i o n s ,

i n c l u d i n g t h e m i c r o w a v e l i n k s t o t h o s e

e a r t h s t a t i o n s ?

W i l l t h e G o v e r n m e n t i n c u r f i n a n c i a l

p e n a l t i e s f r o m t h e B a n k s f o r t e r m i n a t i n g

t h e b a n k l o a n s o n A u s s a t e a r l y ?