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Estimates Committee - Senate - A - Reports - Budget 1993-94


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The Parliament of the Commonwealth of Australia

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

Reports to the Senate on Departmental Estimates for year 1993-94 and expenditure under the Advance to the Minister for Finance for 1992-93

Australian Government Publishing Service Canberra

Printed by Authority by the Commonwealth Government Printer

CON1ENTS PAGE

1. Resolutions of the Senate ................................. . vi

2. Membership of the Committee .............. ...... ..... , . . . . vii

3. Estimates Committee A

Report, October 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Corrigendum to Report to the Senate, 20 October 1993 . . . . . . . . . . . 13

Minutes of Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Tuesday, 31 August 1993 Tuesday, 31 August 1993 Friday, 3 September 1993 Monday, 20 September 1993

Friday, 24 September 1993 Friday, 24 September 1993 Friday, 24 September 1993 Wednesday, 6 October 1993 Hansard indexes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

4. Estimates Committee B

Report, October 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Minutes of Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Thursday, 31 August 1993 Friday, 3 September 1993 Wednesday, 8 September 1993

Thursday, 7 October 1993 Wednesday, 10 November 1993 Hansard indexes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

5. Estimates Committee C

Report, October 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Minutes of Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

Tuesday, 31 August 1993 Friday, 3 September 1993 Friday, 24 September 1993 Wednesday, 29 September 1993 Thursday, 6 October 1993 Hansard indexes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

iii

6. Estimates Committee D • •• · .. •'i.

Report, October 1993 ............. . . . . ..... · . . .. , ....... '· . .. 85

Reservations ......... .. ... ... . ........... ...... .. ... . , . . 94

Minutes of Proceedings ... . ................. ·. . . . . . . . . . . . . . 98

Thursday, 26 August 1993 , ,.,

Thursday, 26 August 1993 Wednesday, 1 September 1993 Thursday, 2 September 1993 Friday, 24 September 1993 Friday, 1 October 1993 Wednesday, 6 October 1993 Wednesday, 6 October 1993 Thursday, 7 October 1993 Hansard indexes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118

Report on Supplementary Meeting, November 1993 . . . . . . . . . . . . . . 129 Minority Report - Centenary House . . . . . . . . . . . . . . . . . . . . . . . . . . 141

Minority Report - Office of Government Information and Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151

List of Questions taken on notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155

Minutes of Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179

Tuesday, 9 November 1993 Tuesday, 9 November 1993 Thursday, 25 November 1993

7. Estimates Committee E

Report, October 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187

Minutes of Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196

Thursday, 26 August 1993 Thursday, 26 August 1993 Thursday, 2 September 1993 Tuesday, 21 September 1993 Wednesday, 29 September 1993 Wednesday, 6 October 1993 Table of Contents for Hansard of hearings . . . . . . . . . . . . . . . . . . . . . 210

Minutes of Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214

Thursday, 4 November 1993 Thursday, 4 November 1993 Monday, 15 November 1993

iv

l Estimates Committee F

Report, October 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219

Minutes of Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226

Thursday, 26 August 1993 Thursday, 2 September 1993 Wednesday, 6 October 1993 Hansard index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236

Schedules of Questions on Notice asked before or at the Hearings, October 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241

Report on the Supplementary Meetings . . . . . . . . . . . . . . . . . . . . . . . 255

Minutes of Proceedings Friday, 12 November 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264

v

1. RESOLUTION OF TIIE SENA1E AGREED TO ON 19 AUGUST 1993

REFERENCE OF PARTICULARS OF PROPOSED EXPENDITURE FOR 1993-94 AND DEPARTMENTAL EXPENDI11JRE UNDER ADVANCE TO 1HE .MINISTER FOR FINANCE 1992-93 (1)

(2)

That the particulars of proposed expenditure in relation to the Parliamentary Departments in respect of the year ending on 30 June 1994, the particulars of proposed expenditure for the service of the year ending on 30 June 1994 and the particulars of certain proposed expenditure in respect of the year ending on 30 June 1994 be referred

to estimates committees for examination and report. That expenditure under the Advance to the Minister for Finance for the year ended 30 June 1993 be referred to estimates committees for examination and report prior to its consideration in committee of the whole. (3) That the committees consider proposed expenditure and departmental

expenditure under the Advance to the Minister for Finance in the estimates committee groupings agreed to on 5 May 1993. ( 4) That the committees report to the Senate on or before 7 October 1993. (5) That, subject to the sittings of the Senate, the committees meet to hear

evidence in accordance with the following schedule: (a) Estimates Committees A, B and C - 31 August and 3 September; (b) Estimates Committees D, E and F - 26 August and

2 September; and (c) if required, on such other days as are determined by the committees.

vii

2. MEMBERSIDP OF COMMITTEES

Estimates Committee A Senator Archer1 Senator Childs Senator Kemp* Senator Loosely Senator Maguire2. 3 Senator O'Chee t Senator Jones4• 5 Senator Troeth6 Senator Carr7

Senator Kemp was discharged and Senator Panizza appointed for 20 September 1993 only. t Senator McGauran replaced Senator O'Chee for the period 30 August 1993 to 2 September 1993.

Estimates Committee B Senator Aulich8• 9 Senator Burns Senator Carr Senator MacGibbon Senator Teague Senator Tierney Senator C Evans10

Estimates Committee C Senator Giles11 • 12 Senator Newman Senator Patterson Senator Tate Senator Tambling Senator Zakharov13• 14 Senator Sherry15 Senator Murphy16• 17 Senator Reynolds18 Senator Denman19 Senator ZakharoyZO

viii

Estimates Committee D Senator Bishop* Senator Coates Senator Cranet Senator Parer Senator Reynolds21 Senator Walsh22' 23 Senator Colston24• 25 ** Senator Senator Carri7

,. ·,.

Senator McGauran replaced Senator O'Chee for the period 30 August 1993 to 2 September 1993. Senator Minchin replaced Senator Bishop for the consideration of the estimates of the Department of the Arts and Administrative Services and the Department of Industrial Relations. t Senator ,Gibson replaced Senator Crane for the consideration of the estimates of the

Department of Arts and Administrative Services, the Treasury and the Department of Finance. •• Senator Colston was discharged and Senator Sherry was appointed for 2 September 1993 only.

Estimates Committee E Senator Crichton-Browne* Senator Devereux Senator Ferguson Senator Foreman Senator I. Macdonald t Senator West

Senator Tierney replaced Senator Crichton-Browne for the consideration of the estimates of the Department of Transport and Communications. t Senator Chapman replaced Senator Ian Macdonald for the consideration of the estimates of the Department of Transport and Communications and the Department

of Industry, Technology and Regional Development.

Estimates Committee F Senator Beahan Senator Calvert* Senator Cooney Senator Knowles*t Senator McKiernan Senator Short* t

Senators Baume, Ellison and Vanstone replaced Senators Calvert, Knowles and Short for the consideration of the estimates of the Parliamentary Departments. t Senators Ellison and Vanstone replaced Senators Knowles and Short for the consideration of the estimates of the Department of the Attorney-General.

ix

1. Discharged 19 August 1993. 2. Discharged 27 May 1993. 3. R etired 30 June 1993. 4. Appointed 27 May 1993. 5. Discharged 21 October 1993, for period 1 November to 6 December 1993. 6. Appointed 19 August 1993. 7. Appointed 21 October 1993, for the period 1 November to 6 December 1993. 8. Discharged 27 May 1993. 9. Retired 30 June 1993.

10. Appointed 27 May 1993. 11. Discharged 27 May 1993. 12. Retired 30 June 1993. 13. Discharged 10 May 1993. 14. Discharged 30 August 1993. 15. Appointed 10 May 1993. 16. Appointed 27 May 1993. 17. Discharged 27 September 1993. 18. Appointed 19 August 1993. 19. Appointed 30 August 1993. 20. Appointed 27 September 1993. 21. Discharged 19 August 1993. 22. Discharged 27 May 1993. 23. Retired 30 June 1993. 24. Appointed 27 May 1993. 25. Discharged 21 October 1993, for the period 7 November to 14 November 1993. 26. Appointed 19 August 1993. 27. Appointed 21 October 1993, for the period 7 November to 14 November 1993.

X

Estimates Committee A

Report to the Senate

October 1993

1

CHAIR:

MEMBERS:

Secretary: Peter Hallahan

Research Staff: Shane Holt John O'Keefe

Executive Assistant Glenice Castles

MEMBERS OF THE COMMITTEE

Senator B.K. Childs

Senator G. N. Jones Senator R. Kemp Senator S. Loosely Senator W. G. O'Chee Senator J. M. Troeth

(New South Wales)

(Queensland) (Victoria) (New South Wales) (Queensland) (Victoria)

Senator J. H. Panizza replaced Senator Kemp for the hearing held on 20 September 1993

Senator J. J. J. McGauran replaced Senator O'Chee for the period 30 August to 2 September 1993.

2

TABLE OF CONTENTS

Subject

Members of Committee

Report to the Senate

Minutes of Proceedings

Tuesday, 31 August 1993 Tuesday, 31 August 1993 Friday, 3 September 1993 Monday, 20 September 1993 Friday, 24 September 1993

Friday, 24 September 1993 Friday, 24 September 1993 Wednesday, 6 October 1993

Appendix I: Index to Hansard of Public Hearings

Prime Minister and Cabinet Foreign Affairs and Trade Primary Industries and Energy

3

Page

(ii)

1

10 11 13 16 18 21 22 23

24 27 32

ESTIMATES COMMIITEE A

REPORT TO TilE SENATE

Estimates Committee A presents its Report to the Senate.

INIRODUCflON

1. On 19 August 1993, the Senate referred to the Committee, for examination and

report, Particulars of Proposed Expenditure for the Service of the Year ending on 30

June 1994, drawn from Appropriation Bill (No.1) 1993-94, Particulars of Certain

Proposed Expenditure in respect of the year ending on 30 June 1994, drawn from

Appropriation Bill (No. 2) 1993-94 and Expenditure under the Advance to the Minister

for Finance for the year ended 30 June 1993, in respect of the following:

Office of the Official Secretary to the Governor-General

Prime Minister and Cabinet portfolio (including the Aboriginal and Torres

Strait Islander Commission)

Foreign Affairs and Trade portfolio

Primary Industries and Energy portfolio

2. The Committee has considered the proposed expenditure as listed in the program

performance statements for each portfolio area and has received evidence from the

Leader of the Government in the Senate and Minister for Foreign Affairs, Senator the

Han. Gareth Evans and the Minister for Trade, Senator the Han. Peter Cook and

officers of the departments concerned. Copies of the Minutes of Proceedings and

Hansard reports of the evidence taken by the Committee are tabled for the information

of the Senate. Further written explanations furnished by departments will be presented

separately.

3. The Committee draws the attention of the Senate to the following matters which

arose during consideration of the Estimates.

4

GENERAL

Assistance of the Australian National Audit Office

4. The Australian National Audit Office fulfils an important role in assisting the

Parliament and its Committees to effectively scrutinise the processes of government,

ensuring public expenditure is kept responsible and accountable.

5. Under the guidelines developed by Estimates Committee Chairs, the Auditor­

General and his staff in November 1986 and updated in August 1991, Committees may

ask the Auditor-General to nominate ANAO officers to provide them with briefings on

matters included, or to be included, in the Report which may be of interest to

Committees. The Audit Office does not as a matter of course attend hearings of Senate

Estimates Committees.

6. Under the guidelines, it is open to Committees to invite the Auditor-General to

provide comment, at his discretion, on matters relevant to audit reports which are raised

during Committee hearings.

7. Following requests from individual Senators, the Committee invited officers from

the Australian National Audit Office to give evidence on two occasions during

consideration of the Estimates. These occasions were immediately prior to the

consideration of the Estimates of Expenditure for the Aboriginal and Torres Strait

Islander Commission and the Department of Primary Industries and Energy. The later

evidence related to a project audit focussing on travel expenses within the Australian

Quarantine Inspection Service and the former to ATSIC generally.

8. The Committee considers the provision of public evidence by the Audit Office to

have been helpful to the consideration of the proposed estimates of expenditure on this

occasion and thanks the Auditor-General and his officers for their assistance.

5

PRIME MINISfER AND CABINET PORTFOUO

Aboriginal and Torres Strait Islander Collllllimon (ATSiq

9. During the Committee's examination of ATSIC on 20 September, the Commission

was questioned by Senator Panizza concerning the allocation of $2.4 million in relation

to land claims for the period 1993-94. This allocation is set out in A TSIC's Program

Performance Statements 1993-94 under sub-component 1.1.1 of sub-program 1 of the

Commission's program B.

10. The Committee was informed that the $2.4 million would be expended under

guidelines for ATSIC's native title program for such activities as research into

archaeological and anthropological matters and the legal feasibility of specific land claims.

Mr M. Chapman, the Assistant General Manager, Land Heritage and Environment in

ATSIC explained that applications for funding under this allocation were examined by

an advisory committee. However, final decisions on disbursements from the program are

made by the Commission's Board of Commissioners.

11. Senator Panizza sought information whether the Australian Government" ... advise,

command, tell or instruct ATSIC how it can spend its $2.4 million ... " In response to this

query the Minister for Foreign Affairs, Senator Gareth Evans, stressed the independence

of ATSIC when he stated:

The whole point of ATSIC was to establish a body at arms-length from the government which would make its own decisions about the allocation of its global budget and how it spends each subcomponent of that. We are absolutely not in the business of detailed direction, advice, or anything else. It is a matter for A TSIC to sort out itself. That is why we did it.

12. The Minister explained the relationship between the Minister and A TSIC:

The Minister does not instruct it to do anything in terms of its expenditure of the money. The only constraint ATSIC is subject to is observing the overall constraints of the global budget and, of course, auditing and proper processes of that kind. (Evidence, pA173)

6

13. The Minister and representatives from ATSIC denied that there has been any

decision taken on next years financial allocation for activities related to Aboriginal land

claims, refuting media reports concerning $10 million to be spent on Mabo claims in

1994-95 raised by Senator Panizza. The Chief Executive Officer qf ATSIC, Dr P.

Shergold, explained that the $10 million identified in the media reports will go from

ATSIC's global budget to Community Development Employment Projects. According to

Dr Shergold, at the end of 1994 that allocation will cease but the government has agreed

that ATSIC can retain the $10 million within its global allocation. Dr Shergold went on

to state that the $10 million" ... will be a first call upon Mabo related activities. That is

the limit to it."

FOREIGN AFFAIRS AND TRADE PORTFOUO

Settlement with Nauru

14. The Committee asked a number of questions concerning the circumstances of

Australia's recent negotiation of a final settlement with the Government of Nauru

providing for compensation for damage caused by the mining of phosphate. The

agreement with Nauru was signed by the Prime Minister, the Han. Paul Keating MP,

during the South Pacific Forum on 10 August 1993 and provided for a settlement of

$107m.

15. Senators sought information about how the agreed settlement was determined.

16. The Minister for Foreign Affairs, Senator the Hon. Gareth Evans, told the

Committee that the initial procedural rounds of litigation in the International Court of

Justice (ICJ) were unfavourable to Australia and that this was the reason settlement

negotiations had been commenced. The Minister informed the Committee that had

Australia lost the case, as had been judged likely, it would have been liable for a much

heavier payment, estimated to be in the range $300m - $1000m.

7

17. Senator Kemp asked that the Minister make available the legal opinion from his

Dcpanment that the ultimate court decision was likely to go against Australia. The

Minil&.er wu reluctant to do this, arguing that legal advice to the Government was

coafldential and remained so except in the most exceptional of circumstances. However

be dad undenake to give the matter further consideration.

18. The Minister also informed the Committee that contributions to the settlement

were bema sought from New Zealand and the United Kingdom. However, unlike

Aultralia. lbelc countries were not subject to the jurisdiction of the ICJ with respect to

thll matter and could not be sued by Nauru. He acknowledged that:

h may have had less of an impact on our Treasury on occasions if we had not. but we are very strongly committed to the principles of international jurisdiction. (Evidence, pA37)

19. h could be argued that decisions on questions such as the Australian Government

acttUna a djapute with the Government of Nauru or submitting itself to the jurisdiction

tbe ICJ are policy matters and most appropriately debated in forums other than

&tunatea Committees. However, Estimates Committees are required to examine

apcnditure proposals resulting from such decisions. The Committee notes that the

Minister hal agreed to review what information about the decision can be provided and

klob forward to receiving his response before the commencement of the supplementary hcarinp.

JwWtkf:ioa Uaited Natioos in Australia's internal affairs

lO. Coalition Senators expressed concern regarding the influence of the United

ations in lepJ disputes within Australia. The impact on sovereignty of the

decisions to allow complaints to the United Nations Committees concerned with human rights was discussed between the Minister and Coalition Senators.

8

Human Rights in Vtetnam

21. Vietnam's human rights record and Australia's aid to Vietnam were discussed.

The Minister undertook to examine what additional information could be provided about

prisoners named during the Estimates hearing.

Ginespie Case

22. Minister Evans outlined recent developments in the case involving the kidnapping

of the Gillespie children.

Standard of explanatory notes

23. The Committee expresses its concern about the manner in which performance

against some program performance objectives is stated in this portfolio area. The tone

of some could only be described as self congratulatory. For example, on p84, under

outcomes for 1992-93:

Lodged a ''well formulated response" to Nauru's argument on the merits in the Nauru v. Australia ICJ case

24. Other examples abound, including uses of phrases such as "played a helpful role",

and "successful human rights delegation". The Committee believes such an approach

lacks rigour and fails to demonstrate the application of proper criteria for measuring :·

success.

25. The Committee notes that the Minister shared its concern:

You will notice throughout this document that everything is referred to as successful or brilliant or terrific or outstanding. This is new age management principles. (Evidence, pA85)

26. The Minister commented that performance against objectives is not easily

measurable in physical terms. The Committee agrees, but notes that there are also many

good examples of well constructed assessments of performance against set criteria in this

9

and other statements.

27. There is no doubt that in general, progress has been made towards the

development of meaningful measures of performance. It is important that progress

towards achievement of high standards for assessing performance against set criteria

continues. If it is difficult to measure performance with any degree of precision, the

reasons for this should be stated in the program performance statements.

DEPARTMENT OF PRIMARY INDUSIRIES AND ENERGY

AQIS travel irregularities

28. In its last report, the Committee noted that the Australian National Audit Office

(ANAO) had been requested to investigate allegations of travel irregularities in the

Australian Quarantine and Inspection Service (AQIS). This investigation was requested

by the then Minister for Resources in a letter dated 19 March 1993 and followed an

internal review of the administration and cost effectiveness of AQIS travel commenced

in August 1992 and a subsequent examination of the review report by an Authorised

Officer for the purposes of section 61(2) of the Public Service Act 1922.

29. The ANAO examined some 330 individual matters and found that:

. 39% were of no substance . 47% were breaches of regulations which indicated inadequacies in management practices . 13% were breaches of regulations which involved recoveries from officers to the net value of $2000 . 3 cases may have involved misconduct in the terms of the Public Service Act 1922. 1

30. The Committee sought information about the auc;it and its findings from officers

of the Australian National Audit Office.

1 The Auditor General, Audit Report No.3 1993-94, Project Audit • Australian Quarantine and Inspection Service · Review of travel irregularities.

10

31. The ANAO officers informed the Committee that they had reached a different

conclusion to the Authorised Officer on three of the cases, finding possible misconduct

in these cases. However, the Attorney General's Department advised that it was

improbable that a court would overturn the Authorised Officer's findings.

32. The officers informed the Committee that:

On the basis of the Attorney-General's advice, we did not believe the Department could take any meaningful action because it would it would involve an action which the Attorney General's department considers would lead to no different outcome. (Evidence, p192)

33. Senator Brownhill expressed the view that the failure to proceed left a c'loud over

the three people. Officers from the Audit Office agreed with Senator Brownhill's

conclusion that this was not a very satisfactory outcome:

Senator BROWNHll..l.r-So, because it is not proceeded with, it leaves a cloud over three people who supposedly have not had a chance to clear their names or to be convicted of the original allegation of possible misconduct. Mr Riding-HiD--That seems to be the situation. Senator BROWNHll..L-So basically it is a pretty unsatisfactory position. Mr Riding-HiD--We thought so. Mr Williams--That is why we have reported it in this way. We have no

executive power to crystallise or bring things to a result. We could only report the issues as we saw them. It seems to me that it may be open for the department to brief the Attorney-General's Department to see whether it can be resolved. But, given the nature of the advice of the

Attorney-General's Department, I would think--given that when we were discussing the legal issues, both we and the department were speaking to the same people in the Attorney-General's Department--it is unlikely that they would get different advice this time around, and in all likelihood the

recommendation would be that it is not worth pursuing. (Evidence, p190)

34.. The Committee subsequently sought information about this matter from the

Minister For Trade, Senator the Han. Peter Cook, Officers from the Department of

Primary Industries and Energy and AQIS.

11

35. The Minister was clearly of the view that the matter had been handled correctly and

properly concluded by the Department. He stated that:

... a proper concern was raised within the department about whether or not travel was being properly dealt with. There was a departmental inquiry. The Minister, upon receiving that, asked the audit office, an external and independent body which was properly able to do it, to conduct a further official inquiry. That inquiry was conducted. It has been reported. It was warmly received when it did report. The department has responded to that inquiry ... (Evidence, p236)

36. It is equally clear that Senators O'Chee and Brownhill do not agree with the

Minister's views on this matter.

37. The Committee notes that the Auditor's report has had a considerable impact in

the Department, including a rewriting of the Secretary's instructions tightening

procedures. The Committee further notes the conclusions drawn by the Audit Office that

on the basis of the advice provided by the Attorney-General's Department, they did not

believe the Department could take any meaningful action.

38. The Committee considers that it is unlikely that the matter can be resolved to the

satisfaction of all members of the Committee in the Estimates Committee context.

39. The Committee recommends that the Senate approve, without amendment or

request, expenditure in accordance with the estimates considered by the Committee.

· f--. j

Senator B..K.. Childs

Chairman

12

Estimates Committee A

Corrigendum to Report to the Senate

20 October 1993

Page 4 . Paragraph 13

The second sentence currently reads as follows:

"The Chief Executive Officer of ATSIC, Dr P. Shergold, explained that the $10 million identified in the media reports will go from ATSIC's global budget to the Community Development Employment Projects." '

The sentence should be corrected to read as follows:

"The Chief Executive Officer of ATSIC, Dr P. Shergold, explained th at the $10 million identified in the media reports will go from ATSIC's global budget to the Commercial Development Corporation."

13

TIIESENATE FSilMATFS COMMfiTEE A MINUTES OF PROCEEDINGS N0.7

Tuesday, 31 August 1993

1. MEETING

The Committee met at 1.57pm in the Advisor's area adjacent to the Senate Chamber. The Chairman, Senator Childs, took the Chair.

2. ORDER OF PROCEEDINGS

The Committee considered the order in which the Estimates should be considered. It was agreed that the departments be considered in the following order:

Foreign Affairs and Trade portfolio Prime Minister and Cabinet portfolio Primacy Industries and Energy portfolio

It was further agreed that during consideration of the Estimates for the Foreign Affairs and Trade portfolio, programs be considered in the following order: Program 1 - International Relations, Trade and Business Liaison Program 7 - Austrade

Programs 2 - 8

3. ADJOURNMENT

The Committee adjourned at 1.59pm.

6. ATfENDANCE

Senators Childs (Chairman), Jones, Kemp, Loosley, McGauran and Troeth.

CONFIRMED

/

;

B.K. CHll.DS CHAIRMAN

14

1. MEEI1NG

1HESENATE FSTIMATFS COMMfiTEE A MINUIES OF PROCEEDINGS N0.8

Tuesday, 31 August 1993

The Committee met at 5.02 pm in the Main Committee Room. The Chairman, Senator Childs, took the Chair.

2. SfATEMENT BY 1HE CHAIRMAN

The Chairman reported the resolution of the Senate of 19 August 1993 referring matters to Estimates Committees and made an opening statement.

3. PARTICUlARS OF PROPOSED EXPENDrruRE AND CERTAIN PROPOSED EXPENDITURE 1993-94: FOREIGN AFFAIRS AND 1RADE PORTFOUO

The Committee commenced its examination of the proposed expenditure for the Foreign Affairs and Trade Portfolio.

In Attendance: Senator the Han. Gareth Evans, Minister for Foreign Affairs, and Senator the Han. Peter Cook, Ministerfor Trade accompanied by officers of the Department of Foreign Affairs and Trade.

The following officers gave evidence:

Department of Foreign Affairs and Trade

Mr Robert Cotton, First Assistant Secretary, Corporate Services Division Mr Peter Grey, First Assistant Secretary, Asia Division Mr Miles Kupa, First Assistant Secretary, South East Asia Branch, Asia Division Mr Ian Lincoln, Acting Assistant Secretary, South Asia and Indochina Branch,

Asia Division Miss Rosaleen McGovern, Principal Adviser, Personnel Branch, Corporate Services Division Mr Roland Rich, Acting First Assistant Secretary, International Organisation and

Legal Division Ms Penny Richards, Assistant Secretary, Resources Branch, Corporate Services Division Mr Graeme Thomson, Acting First Assistant Secretary, Multilateral Trade

Division Mr Tony Vincent, Assistant Secretary, Corporate Evaluation Branch, Corporate Services Division Mr Geoff Walsh, First Assistant Secretary, Public Affairs Division

15

Mr Greg Wood, First Assistant Secretary, Americas and Europe Division Mr Peter Woolcott, International Organisation and Legal Division

Mr Ralph Evans, Managing Director Mr Ian Chesterfield Mr David Shires

4. CONSIDERATION OF 1HE FSriMATES

The Chairman invited general questions and called on the estimates by subprogram in the following order: 1.1 (suspended), 1.2 (suspended), 1.3, 1.4, 1. 7( suspended).

Consideration of subprograms 1.1, 1.2, 1.3 and 1.4 resumed and were concluded.

The Chairman called on subprograms 1.5, 1.6, 1.7 (suspended) and program 7 (Austrade).

The sitting was suspended between 12.03 and 12.07am.

Consideration of subprogram 1.7 resumed. The Chairman called on subprogram 1.8.

The following document was tabled: The Nauru agreement

Consideration of the Estimates for the Department of Foreign Affairs and Trade was suspended.

5. ADJOURNMENT

The Committee adjourned at 1.33am on Wednesday, 1 September 1993.

6. ATIENDANCE

Senator Childs (Chairman), Senators Jones, Kemp, Loosley, McGauran and Troeth. Senators Brownhill, Calvert, Crane, Harradine, Knowles, Panizza, Sherry, Short and Tambling also attended.

OONFIRMED:

&..--:c· i L L - {_ {-{ · 1

16

1. MEETING:

1HESENATE F.SI1MATES COMMfiTEE A MINUfES OF PROCEEDINGS N0.9

Friday, 3 September 1993

The Committee met at 9.08am in the Main Committee Room, Parliament House, Canberra. The Chairman, Senator Childs, took the Chair.

2. FOREIGN AFFAIRS AND TRADE PORTFOUO

The Committee resumed its consideration of the Estimates for the Foreign Affairs and Trade Portfolio.

In Attendance: Senator the Han. Gareth Evans, Minister for Foreign Affairs, accompanied by officers of the Department of Foreign Affairs and Trade.

The following officers gave evidence:

Department of Foreign Affairs and Trade

Mr G. Allen, Assistant Secretary, Corporate Security Branch Mr R. Cotton, First Assistant Secretary, Corporate Services Division Mr M. Hughes, First Assistant Secretary, Consular Programs and Security Branch

Mr D. Rutter, Assistant Secretary, Consular and Passports Branch Mr T. Skinner, Assistant Secretary, Information Technology Branch Mr G. Walsh, First Assistant Secretary, Public Affairs Division

Australian International Development Assistance Bureau:

Mr R. Barge, Director, Refugees and Disaster, Coordination Section Mr S. Dawson, Director Business Cooperation Section Mr L. Engel, Acting Assistant Director-General, Papua New Guinea Branch, Ms B. Gwynne, Acting Assistant Director-General, · Asia, Africa and Food

Branch Mr E. Huning, Assistant Director-General, Finance and Resource Management Branch Mr R. Irwin, Acting Deputy Director-General, Pacific and International Programs Division Mr T. Kanaley, Deputy Director-General, Corporate Development and Support

Division Mr R. Stensholt, Acting Deputy Director-General, Asia, Africa and Community Programs Division

17

Dr H. Ware, Assistant Director-General, Program Development and Review Branch , AIDAB

Australian Centre for International Agricultural Research:

Dr G . Rothschild, Director Mr A Barden, Manager, Corporate Services

4. CX>NSIDERATION OF TIIE FSfiMATFS

The Chairman called on programs in the following order: 1.9, 2.1, 2.2, 3.1, 3.2, 4.1, 4.2, 5, 6.1, 6.2, 6.3, 6.4, 8.

The Committee concluded its examination of the estimates for the Foreign Affairs and Trade portfolio, subject to an undertaking by the Minister and Officers to provide additional information.

5. PARTICULARS OF PROPOSED EXPENDITIJRE AND CERTAIN PROPOSED EXPENDITIJRE 1992-93: OFFICE OF TIIE OFFICIAL SECREfARY TO TilE GOVERNOR GENERAL

There being no questions, the Committee concluded its examination of the estimates for the Official Secretary to the Governor-General

6. SUSPENSION OF SITTING

The Committee suspended sittings between 12.00 and 1.35pm

7. PARTICULARS OF PROPOSED EXPENDITIJRE AND CERTAIN PROPOSED EXPENDITURE 1992-93: PRIME MINISTER AND CABINET PORTFOUO

The Committee commenced its examination of the Proposed Expenditure for the Prime Minister and Cabinet portfolio.

In Attendance: Senator the Han. Gareth Evans, Minister for Foreign Affairs, accompanied by officers of the Department of Prime Minister and Cabinet.

The following officers gave evidence:

Department of the Prime Minister and Cabinet­ Mr A Henderson, Deputy Secretary Mr A Stretton, Acting First Assistant Secretary, Social Policy Division Mr P. Vaughan, First Assistant Secretary, Corporate Services Division

Mr M. Dillon, First Assistant Secretary, Office of Indigenous Affairs Ms A Tinney, First Assistant Secretary, Cabinet Office Ms C. Astley-Boden, Acting First Assistant Secretary, Office of the Chief Scientist

18

Mr N. Edwards, First Assistant Secretary, Office of Multicultural Affairs Mr P. Rabl, Corporate Management Section, Office of Multicultural Affairs Ms H. Campbell, First Assistant Secretary, Office of the Status of Women Ms A Holmes, Acting Assistant Secretary, Employment and Education Policy Branch, Office of the Status of Women Dr P. Volker, Assistant Secretary, Task Force on Employment Opportunities

Ms A Forward, Director, Merit Protection and Review Agency Mr A Doolan, Associate Director, Corporate and Policy Services, Merit Protection and Review Agency: Mr J. Taylor, Acting Senior Assistant Ombudsman, Office of the Commonwealth

and Defence Force Ombudsman:

Aboriginal and Torres Strait Islander Commission: Dr P. Shergold, Chief Executive Officer Mr M. Chapman

8. CONSIDERATION OF TIIE FSTIMATFS

The Chairman called on programs in the following order: 3.2, 1.1-1.5, 2.1, 2.2, 3.3, 6.1 (considered with 3.3), 3.4, 6.2, 6.3, 6.4, 7.1-7.4, 8 (ATSIC).

The Committee suspended consideration of program 8 (ATSIC)

9. ADJOURNMENT

The Committee adjourned at 4.02pm.

10. ATI'ENDANCE

Senators Childs (Chairman), Jones, Kemp, Loosley, McGauran, Troeth. Senators Harradine, and Short also attended.

CONFIRMED

/

-- /_ c -- -c· ( -;

B.K. CHilDS CHAIRMAN

19

1. MEETING:

TilE SENATE ESfiMATES COMMfiTEE A MINliTES OF PROCEEDINGS N0.10

Monday, 20 September 1993

The Committee met at 12.03pm in Committee Room 2S3, Parliament House, Canberra. The Chairman, Senator Childs, took the Chair.

2 AUSfRALJAN NATIONAL AUDIT OFFICE

The following officers from the Australian National Audit Office were invited to give evidence and were examined:

Mr B. Kimble, Group Director, Welfare, Veterans and Education Group Mr C. McPherson, Executive Director, Welfare, Veterans and Education Group Mr D. Worthy, Executive Director, Welfare, Veterans and Education Group

3. PRIME MINISfER AND CABINEf PORTFOUO ABORIGINAL AND 10RRFS STRAIT ISLANDER COMMISSION

In attendance : Senator the Han. Gareth Evans, Minister for Foreign Affairs, accompanied by officers of the Aboriginal and Torres Strait Islander Commission.

The following officers gave evidence:

Dr P. Shergold, Chief Executive Officer Mr C. Plowman, Assistant General Manager, Community Services Mr R. Beadman, General Manager, Corporate Services Mr G. Scott, Acting Assistant General Manager, Human Resources

Mr J. Eldridge, Assistant General Manager, Budget and Procedures Mr R. Morony, General Manager, Economic Mr M. Chapman, Assistant General Manager, Land Heritage and Environment Mr I. Myers, Assistant General Manager, Health and Community Development Mr S. Hoffman, Assistant General Manager, Regional Support Mr G. Menham, General Manager, Social and Cultural

4. CONSIDERATION OF TilE FSTIMATES

The Chairman called on Program A, subprograms 1-3, Program B, subprograms 1-7 and Program C, subprograms 1- 11.

The Committee concluded its examination of the estimates for the Aboriginal and Torres Strait Islander Commission, subject to an undertaking to provide additional inforrna tion.

20

5. ADJOURNMENT

The Committee adjourned at 3.18pm.

6. A'ITENDANCE

Senator Childs (Chairman), Senators Jones, Loosley and Panizza.

CONFIRMED

B.K.am.DS OIAIRMAN

21

1. MEETING:

Tiffi SENATE ESfiMATFS COMMI'ITEE A

MINUfES OF PROCEEDINGS

NO.ll

Friday, 24 September 1993

The Committee met at 9.07am in the Main Committee Room, Parliament House, Canberra. The Chairman, Senator Childs, took the Chair.

2. AUS'IRALIAN NATIONAL AUDIT OFFICE

The following officers from the Australian National Audit Office were invited to give evidence and were examined:

Mr G. M. Williams, Group Director Mr J. R. Riding-Hill, Executive Director Mr J. Hawley, Director, Audit Operations

The Committee suspended its hearing between 10.07am and 10.35am.

3. PARTICULARS OF PROPOSED EXPENDITURE AND CERTAIN PROPOSED EXPENDITURE 1992-93: PRIMARY INDUSTRIES AND ENERGY PORTFOliO

The Committee commenced its examination of the Proposed Expenditure for the Primary Industries and energy portfolio.

In Attendance: Senator the Han. Peter Cook, Minister for Trade and Officers from the Department of Primary Industries and Energy.

The following officers gave evidence:

Department of Primary Industries and Energy--Mr G. Taylor, Secretary Mr Bob Alderson, First Assistant Secretary, Petroleum Division Mr B. Calder, Assistant Secretary, Rural Division Mr G. Gorrie, First Assistant Secretary, Corporate Affairs Division Mr B. Gasper, Assistant Secretary, Livestock and Pastoral Division Mr B. Hill, Executive Director, Agricultural and Forestry Group Mr T. Mackey, First Assistant Secretary, Crops Division Mr B. Wonder, First Assistant Secretary, Land Resources Division

22

Australian Bureau of Agriculture and Resource Economics

Dr B. Fisher, Executive Director

Australian Quarantine and Inspection Service

Mr G. Murray, Executive Director Mr P. Bisset Mr B. Jones Mr J. Landos Mr B. Page

4. CONSIDERATION OF TilE FSfiMATFS

The Chairman called on Program 2.3 - Quarantine and inspection.

The following documents were tabled:

Public Service Commission Circular 92/00945 Progress report on proactive assignments concerning SES travel and use of motor vehicles

Consideration of program 2.3 was suspended.

The sitting was suspended between 12.35pm and 1.30pm.

The Chairman called on subprograms 1.1, 1.2, 1.3, 1.4, 1.5, 2.land 2.2.

The following document was tabled:

. Agriculture and Resources Quarterly 1993 Vo15 Nos 2 and 3.

Consideration of program 2.2 was suspended.

Consideration of program 2.3 resumed.

Senator Brownhill sought leave to table a letter written by an AQIS officer.

5. ADJOURNMENT

The Committee adjourned at 2.55pm in order to conduct a private meeting.

23

6. ATTENDANCE

Senators Childs (Chairman), Kemp, Loosley and O'Chee. Senator Brownhill also attended.

CONFIRMED

B.K. CHllDS CHAIRMAN

24

1. MEETING:

TilE SENATE

ESTIMATES COMMriTEE A MINUfES OF PROCEEDINGS N0.12 Friday, 24 September 1993

The Committee met in private session at 2.56pm outside the Main Committee Room, Parliament House, Canberra. The Chairman, Senator Childs, took the Chair.

2. lEAVE TO TABlE A DOCUMENT:

The Committee considered whether Senator Brownhill should be granted leave to table a letter written by an AQIS officer.

The Committee voted. The question was resolved in the negative on the Chairman's casting vote.

Senator O'Chee recorded his dissent from the Chairman's view that the Minister has the right to determine which officers answer questions.

3. ADJOURNMENT

The Committee adjourned at 3.07pm

4. ATfENDANCE

Senator Childs (Chairman), Senators Kemp, Loosley and O'Chee.

CONFIRMED

/ l i ' /

;__ / G . i L ..... :c l )

B.K. C1lll.DS CHAIRMAN

25

1. MEEfiNG:

TIIESENATE F.SfiMATFS OOMMITI'EE A MINUfES OF PROCEEDINGS N0.13

Friday, 24 September 1993

The Committee met in public session at 3.12pm in the Main Committee Room, Parliament House, Canberra. The Chairman, Senator Childs, took the Chair and reported the Committee's vote that Senator Brownhill not be granted leave to table the letter written by an AQIS officer.

2. CONSIDERATION OF TIIE FSTIMATFS:

The Committee resumed consideration of subprogram 2.3 of the Estimates for the Department of Primary Industries and Energy.

The following documents were tabled:

Letter dated 1 September from Minister for Primary Industries and Energy to the Secretary, Department of Primary Industries and Energy

Letter dated 1 September from Minister for Primary Industries and Energy to the Auditor General

Media release by Senator Winston Crane, Senator for Western Australia

AQIS movement summary

There being no further questions, the Committee concluded its examination of the estimates for the Department of Primary Industries and Energy, subject to an undertaking by the Minister and Officers to provide additional information to the Committee.

3. ADJOURNMENT:

The Committee adjourned at 4.20pm.

4. ATI'ENDANCE

Senators Childs (Chairman), Kemp, Loosley and O'Chee. Senator Brownhill also attended.

OONFIRMED / / I I .

-- / ---- ) L ' l L

B.K. CHILDS CHAIRMAN

26

1. MEETING:

TilE SENATE FSfiMATES COMMfiTEE A MINUfES OF PROCEEDINGS N0.14

Wednesday, 6 October 1993

The Committee met in deliberative session at 7.42pm in the Advisor's area outside the Senate Chamber, Parliament House, Canberra. The Chairman, Senator Childs, took the Chair.

2. REPORT TO TilE SENATE:

The Committee considered the Chairman's draft report. The report was adopted without amendment.

3. MINUfES OF PROCEEDINGS:

Minutes of Proceedings Nos 7 to 13 were confirmed and signed.

4. DFADUNE FOR SUBMISSION OF ADDIDONAL INFORMATION:

The Committee agreed that the deadline for submission of Additional Information be 18 October 1993.

5. SUPPlEMENTARY HEARINGS:

The Committee agreed that the supplementary hearings would commence on Monday 8 November 1993. It was further agreed that Senators wishing to raise matters at the supplementary hearings would submit notice of matters to be raised to the Committee Secretary by close of business on Thursday 4 November 1993.

6. ADJOURNMENT:

The Committee adjourned at 7.48pm.

7. ATTENDANCE:

Senators Childs (Chairman), Jones, Kemp, Loosley, O'Chee and Troeth. Senators McGauran and Panizza also attended.

CERTIFIED CORRECf

,_.

B..K. CHilDS CHAIRMAN

. I

" (_ ( l

2 7

FSilMATES COMMITIEE A

DEPARTMENT OF TilE PRIME MINISTER AND CABINET

HANSARD INDEX (sorted by program)

Community consultation and report 1.3 A126-127

OECD study 1.3 A126

Running costs and appropriations 1.3 A126

Task force on employment opportunities 1.3 A126

Guests at Kirnbilli House 2.2 A131-132

Nights PM and family spent at Kirribilli House 2.2 A132

Purchases at Kirribilli House and the Lodge 2.2 A127-128

Renovations and repairs at Kirribilli and the 2.2 A128-130

Lodge

Staff at Kirribilli House and the Lodge 2.2 A130-131

Bilingual consultants 3.1 A134-135

Community relations strategy 3.1 A135-136

Community initiatives grants program 3.1 A136-137

Correspondence between OMA and FECCA 3.1 A139-140

Cost recovery 3.1 A134

Cost of bilingual consultants 3.1 A134

Difference between ethnic and multicultural 3.1 A133

affairs

FECCA funding 3.1 A137-138

A140

FECCA function 3.1 A138-139

Operations of OMA 3.1 A134

Reduction in funds 3.1 A133-134

Relationship between the Office of Multicultural 3.1 A133

Affairs and the Department of Immigration and Ethnic Affairs

Research program 3.1 A140-141

28

Review by consultant of FECC funding 3.1 A140

Speaking opportunities for PM 3.1 A138

The Shared Table: Ideas for Australian Cuisine 3.1 A141-142

Forum conducted by National Women's 3.2 A124-125

Consultative Council

Ust of women appointed to committees boards 3.2 A124

and authorities

National agenda for Women grants program 3.2 A124

Register of women database 3.2 A124

Proposed merger of the CSIRO and the 3.3 A142

Australian Institute of Marine Science

Mr John Bell 3.4 A142

Figures related to performance outlook 4.2 A142-143

New industry members of ASTEC 6.1 A142

Performance of ASTEC 6.1 A142

Major investigations 7.2 A143

Promotion of activities by the Office 7.2 A143-144

Recommendations following review of Office of 7.2 A143

the Ombudsman

Workload of Office 7.2 A143

Case load of the Agency 7.3 A144

Commonwealth Bank 7.3 A145

Performance pay 7.3 A144

Role in relation to government authorities 7.3 A145

$10 million mentioned by the press 8 A173-174

29

Accountability in ATSIC 8 A160-161

Allocation of $2.4 million for native title claims 8 A170-172

Baryulgil community and asbestos compensation 8 A162-163

Case of a Mr Bell 8 A145-146

Comparative running costs 8 A166

Comparative salaries 8 A165-166

Dedicated fraud squads 8 A147

Difficulties in delivering health services 8 A175-176

Diverting funds to health expenditure 8 A176

Encouragement of Mabo claims 8 A174-175

Expenditure on health 8 A175

Fraud awareness unit 8 A161

Increase in salaries and running costs 8 A163-164

Industrial relations in ATSIC 8 A169

Lismore Office 8 A161-162

Marbo public awareness program 8 A174

Provision of sewage facilities 8 A176-177

Provision of services Aboriginal Communities 8 A177

compared with the wider community

Recreation and sport 8 A177-178

Relationship between ATSIC and the Minister 8 - A172-173

Resources allocated to Mabo 8 A146-147

Road works in Western Australia and small 8 A166-168

business enterprises

Staff numbers 8 A164

Supplementary funding 8 A169

Women's rugby team in Canberra 8 A178-179

30

FSfiMATES OOMMfiTEE A

FOREIGN AFFAIRS AND TRADE PORTFOUO

HANSARD INDEX (by program)

Ambassador (former) Hon. Brian Burke 1 A14

Ambassador to the USA - observation of protocols 1 A12

Dan case 1 A6, A15

Inspector General of intelligence and security 1 A20

Mabo - resources for investigation of implications 1 A21

Mabo 1 AlO

,,

Ministerial responsibility 1 A4

Nuclear Science and Technology- co-operation with 1 A22

Indonesia

Performance pay 1 A21

Woodhouse, Mr - allegations concerning 1 A18

Workplace bargaining 1 A8

China - PM's visit to 1.1 A24

China - visits by PM, Minister for Trade 1.1 A41

Economic development 1.1 A47

GA TI membership - multilateral vs bilateral trade 1.1 A45

Interests in North Asia -program performance criteria 1.1 A24

Relocation of Australian industry 1.1 A47

Wool promotion 1.1 A24

Wool- development of market in China 1.1 A41-5

Administrative expenses increase 1.2 A30

Christians - treatment of in Pakistan 1.2 A25

Giiiespie case 1.2 A32

Gusmao trial - resources allocated 1.2 A53-4

Human rights issues - determination of response 1.2 A31

31

Interests in South and East Asia 1.2 A25

Live sheep trade 1.2 A54-5

Marshall Islands affair 1.2 A54

Trade project establishment 1.2 A52

Vietnam - trade with 1.2 A48

Vietnam - treatment of religious groups, human rights 1.2 A26 record

Canada - trade relationships (incl. Cairns group) 1.3 A51

Canadian tariff on beef 1.3 A50

Game meat exports 1.3 A49

Interests in Americas and Europe 1.3 A34

London High Commission 1.3 A34

Overseas Posts -expenditure variations 1.3 A35

Prime Ministerial visit to U.K. 1.3 A35

Interests in South Pacific, Africa, Middle East 1.4 A36

Iranian embassy attack - compensation 1.4 A39

Nauru settlement 1.4 A36

Intellectual property rights 1.5 A55-

TRIPS agreement 1.5 A56

Cathay Pacific relocation 1.6 A57

Regionally competitive tax regime 1.6 A57-8

Trade promotion activities 1.6 A56

Legal services - increase in cost of 1.7 A77

Nauru case - response to ICJ argument 1.7 A69

Nauru settlement 1.7 A70-8

Somalia - contribution towards peacekeeping forces 1.7 A39

32

Treaties 1.7 A78

UN activities - Australian involvement in 1.7 A69

Australian Centre for International Agricultural 1.8 A59

Research

China delegation - definition of "successful" 1.8 A85

Human rights - sources of advice on 1.8 A83

International treaties - effect on Australian law 1.8 A81

program performance criteria 1.8 A82-3

UN conventions - signing of optional protocols 1.8 A79-81

Vietnam - harassment and detention of buddihst 1.8 A84

monks

Vietnam - delegation to 1.8 A85

Administrative expense variation 1.9 A59

Australian Television International 1.9 A88

Nauru- trade relationship with 1.9 A60

Nauru - settlement with 1.9 A60-1

Gulf War compensation claims 2.2 A88-9

Computer equipment expenditure increases 4.1 A89

Accomodation and staffing estimates 4.2 A91

Security leaks from embassies 4.2 A89-90

Client service 5.2 A92

Productivity improvement 5.2 A91

Property operating expenses 5.2 A91

China - population control measures 6.1 A106-8

Friendship Bridge between Laos and Thailand 6.1 A100-1

33

Indonesian aid 6.1 A103, A109

Malaysian aid 6.1 A104

Nauru aid 6.1 A99

Papua New Guinea 6.1 AllO

Policy priority objectives 6.1 A93-4

Salary cost increases 6.1 A95

South African aid conditions 6.1 A99

Vietnam - population control measures 6.1 A104-5

Vietnam aid conditions and human rights 6.1 A101-3

Womens' needs 6.1 A92

World Bank facility in Oceania 6.1 A96-8

AIDAB guidelines for food distribution 6.2 A111

Development import finance facility 6.2 A113

International Planned Parenthood Federation 6.2 A115

Ministerial advisory committee 6.2 A116-7

NGOs administration costs 6.2 A112

Population programs in the South Pacific 6.2 A119

Population Development seminar 6.2 A117-8

United Nations- advice to Cambodian refugees 6.2 A113

United Nations Population Fund 6.2 A113-5

United Nations - administration costs 6.2 AllO

Child care centre 6.3 A121

Attorney's- General charges 6.4 A121-2

Workplace bargaining seminars 6.4 A122

Austrade posts in Asia 7.1 A62

Client satisfaction surveys 7.1 A62

Financial services- EMDG, ITES schemes 7.1 A62-5

34

First stop shops 7.1 A65

Impact of new initiatives on Austrade 7.1 A68

Market Australia campaign 7.1 A66-7

National Export Education centre 7.1 A66-7

35

Estimates Committee A

Primary Industries and Energy Portfolio

Hansard Index (By subprogram)

ABARE - market oppotunities, market 1.1 A222- A224

problems (GATT)

ABARE - forecasts for Livestock 1.1 A220

Crops - Effect of US export enhancement 1.2 A225- A226

scheme on Australian traditional markets

Petroleum - Resource rent tax 1.4 A226 -A227

Rural adjustment 2 A228

Value adding in Australia 2 A227

AQIS 2.3 A187, A232,

- Travel Audits A236 -A237,

general A242- A244

AQIS - Travel Budget 2.3 A203- A205

AQIS - Cost recovery of services 2.3 A198

AQIS - Consultancies 2.3 A199- A202

- Attorney-General's advice 2.3 A188- A192

- Departmental 2.3 A231, A245-

response to ANOA A246

audit

- Enquiries by 2.3 A187- A197,

Australian National Audit Office A215,

- Enquiries by 2.3 A206- A212,

internal Task Force A217- A220,

A229- A230,

36

- Obtaining funds 2.3 A237- A241

from the private sector for travel

- Overseas Travel 2.3 A213- A215,

A231-A235, A247

37

ESTIMATES COMMITTEE B

REPORT TO THE SENATE

OCfOBER 1993

39

MEMrnERSOFTHECOMMmnEE

Senator Bryant Burns (Queensland) Chairman Senator Kim Carr (Victoria) Senator Chris Evans (Western Australia) Senator David MacGibbon (Queensland) Senator Baden Teague (South Australia) Senator John Tierney (New South Wales)

Secretary: Andrew Snedden

Research Staff:

The Senate

Sue Blunden Doug Hynd

Parliament House CANBERRA ACT 2600

40

TABLE OF CONTENTS

Report to the Senate

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Department of Defence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Department of Veterans' Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Department of Employment, Education and Training . . . . . . . . . . . . . . . 5 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Minutes of Proceedings -Thursday, 31 August, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Friday, 3 September, 1993 ........ .... . . . ................... '· . 9

Wednesday, 8 September, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Table of contents to Hansard -Department of Defence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Department of Employment, Education and Training . . . . . . . . . . . . . . 15 Department of Veteran's Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

41

ESTIMATES COMMTITEE B

REPORT TO THE SENATE

OCfOBER 1993

Committee B - Report

Estimates Committee B presents its report to the Senate.

INTRODUCfiON

1 On 19 August 1993 the Senate referred to the Committee for examination and report the particulars of proposed expenditure for the service of the year ending on 30 June 1994, and the particulars of certain proposed expenditure in respect of the year ending on 30 June 1994 relating to the following departments:

Defence

Veterans' Affairs

Employment, Education and Training

2 The Committee met on 31 August and on 3 and 8 September 1993 to examine these estimates. The Committee considered the estimates utilising the relevant departmental program performance statements and received evidence from the Minister for Defence (Senator Robert Ray), the Minister for Veterans' Affairs and Minister for Defence Science and Personnel (Senator Faulkner) and officers of the departments and authorities concerned.

3 This report includes the Committee's Minutes of Proceedings and a table of contents to the Hansard reports during the Committee's consideration of the estimates. The Hansard reports and additional information provided in response to the questions taken on notice will be tabled separately.

42

4 The Committee expresses its appreciation for the assistance of the Ministers and the officers of the departments and authorities who appeared before it.

5 A number of the matters discussed by the Committee are referred to in the following sections. A complete list of the subjects considered by the Committee is in the table of contents to the Hansard attached to this report.

DEPARTMENT OF DEFENCE

I Program 1 - Forces Executive

Peacekeeping Activities

6 The current year program performance statements show actual and estimated additional costs to Defence for peacekeeping activities in 1992-93 and 1993-94. The costs include the total or gross additional costs, the level of supplementation received by Defence and the net additional cost. Such costs exclude the direct salaries, allowance and overhead costs of participating Defence personnel as such costs are already provided for in the Defence budget.

7 The extent of supplementation provided by Defence for peacekeeping tasks is determined by the Cabinet on a case-by-case basis. Defence has tended no to seek supplementation for smaller-scale activities such as the Western Sahara; whereas supplementation has been sought for larger scale deployments such as Namibia, Somalia and Cambodia. The cost to the Budget for

supplementing tha additional costs of Australia's participation in United Nations and other internationally sponsored activities is partially offset by subsequent reimbursements from the UN etc which are generally paid into the Consolidated Revenue Fund. In 1992-93 the supplementation was $52.181m and in 1993-94 $20.163m.

8 The Minister was asked whether the cost of this supplementation in 1993-94 to

approximately half. The Minister indicated that if there are no new commitments by Australia to peacekeeping forces during the period, that would continue to be the case. However, potential peacekeeping commitments cannot be programmed in advance due to no real knowledge as to what requests might eventuate, the nature of the request or the urgency of any request. (Hansard,

p21)

9 The Australian Defence Forces Peacekeeping Centre at Williamstown has a role in short­ course training peacekeeping force personnel. To date the courses conducted at the Centre have involved Australian and New Zealand personnel. It is envisaged that, due to greater than expected

43

interest in the Centre, courses may be offered to participants in other regional countries such as Malaysia, Thailand, Singapore, Indonesia and Fiji. (Hansard, pp 44-45)

10 The reimbursement of funding for peacekeeping forces by the UN is handled through the Department of Finance and, the Committee was told, sometimes takes several years to reach the Department of Defence. The Committee was told that for equipment, such as helicopters a rate of reimbursement is struck by the UN. That rate is usually not the full cost of deployment, so that Australia will bear a proportion of the cost.The additional cost is borne by the ADF which is eventually reimbursed to Defence - upon receipt from the UN - by the Department of Finance

(Hansard p. 80)

Program 2 - Navy

11 The Committee questioned the closure of several Navy reserve bases. Principal amongst these are bases are Huon, Moreton and reasons for the Encounter. The Committee was told that the principal functions of the bases in the past has been to: represent the Navy in the State in question, support the Navy Reserve in the State, support and administer the naval reserve cadet organisations in the State, and to provide a 'home' for the personnel services organisation in the State to assist the families of sailors on service who come from the State.

12 The Committee was told that the saving of closing Huon is apprmdmately $700 000, of Moreton some $1.3m, and of Encounter, some $700 000. The intention is also that personnel freed by the closure of the reserve bases would be transferred to State defence centres.

13 The Committee has reported previously on the delays and cost escalations in the refit of the Oberon Class submarines. The Committee was told at these hearings that the final cost of refit of the Onslowwas $100m and, for the final refit in the program, the Otama, the refit contract price is $85.5m with a contract period of 102 weeks.

14 The Committee was told that the original contracted price for refit of Onslowwas $41m with an allowance of some $33m for 'emergent' work. The Committee was also advised that the delay in completing the Onslow refit was again attributed to the change of refitting yard from that at Cockatoo Island in Sydney to the Australian Defence Industries yard at Garden island (Hansard

pp63-68)

Program 3- Army

15 The Committee was told that the second year of the five-year Ready Reserve project was regarded as generally satisfactory. Defence told the Committee that the cost of the scheme is much lower than the cost of the 6th Brigade scheme that it replaced, though the fact that a comparison

44

between the two schemes is difficult, and the relatively early stage of the Ready Reserve scheme made comparison difficult. An indication of the scale of costs is that annual costs of 6th Brigade as a ready reserve formation will be about $75m a year com pared with $104m a year for the 6th Brigade that it replaces, with both brigades having the sa me operational readiness criteria applied to them.

16 Other questions canvassed in relation to the Ready Reserve included the wastage rate, the proyjsion of higher ranks from the Reserve, and the eventual evaluation of the Ready Reserve scheme compared to alternatives (Hansard pp 73-74).

Program 4 - Air Force

17 The Committee was told that the additional F111-G aircraft purchased by Australia are expected to arrive in Australia in September or October 1993. A cadre of pilots, navigators and competent technicians who will be in a position to train other Australian pilots and technicians in being trained. The training course for these personnel was conducted in New MeXJco in the US. The aircraft capital cost is $78m, with a total program cost of $144m. The expected period of the

purchase, delivery and integration of the aircraft the Air force would be some four years.

18 The Committee also received detailed information about the difference in equipment demands, training changes, logistics requirements, extra spares and modifications to existing equipment and some slightly different cockpit configuration relating to the aircraft (Hansard pp 80-83)

DE PARTMENT OF VETERANS' AFFAIRS

Program 2 - Health

19 The Committee discussed the transfer of a number of repatriation general hospitals from DV A to various state public hospital systems during the course of the hearings. The Committee was told that RGH Hobart and RGH Concord had both been transferred effectively to state systems. The Government has recognised that the ageing of the veteran community results in a

need for a sensitive approach to the transfer of the RGH hospital s to state systems, but the watchdog role of state and national monitoring committees, with a charter of ensuring that appropriate standards of care for the veteran community are maintained is adequate to ensure that veteran care is up to standard.

20 The transfer of RGH Greenslopes in Brisbane is currently still a matter for negotiation with the Queensland Government. The Commonwealth made a full financial offer to the Queensland Government for the integration of RGH Greenslopes in February 1993. The Minister told the Committee that negotiations for completion of integration of Greenslopes are progressing satisfactorily at present. The Committee was told that a similar stage of negotiation over RGH

Daw Park in Adelaide had been reached. (Hansard, pp 164-166)

45

Program 3 - War Graves

21 The Committee notes with concern that the care and upkeep of a number of war cemeteries and grave areas in New Guinea, such as those in Madang, Wewak and Kavieng. The Committee was told that it is now difficult to maintain a regime of maintenance in those areas because of the internal security situation. Arrangements made in the past to maintain the graves through local contractors, often Australian expatriate companies and New Guinea authorities, have been short-lived. The Committee was told that the Operations Manager of the Office of Australian War Graves was to assess the current situation during a visit to New Guinea in September, and investigate new arrangements fo r grave The Committee was also told that unless satisfactory in situ arrangements could be made for the long term, it may prove necessary to relocate the graves in question to more seve:e areas. (Hansard, p 169)

DEPARTMENT OF EMPWYMENT, EDUCATION AND TRAINING

Program 2 - Higher Education

22 The Committee discussed the operation of the Higher Education Contribution Scheme (HECS) at the hearings. The Committee asked the proportion of students paying the new fo ur level of HECS payments (discounted advance payment; normal full HECS; 1% HECS; and twice HECS). The Committee was told that 21 per cent were paying the discounted advance paymen t. The Committee was also given details of how the trigger for 1112 HECS was top be implemente d. The implementation of the scheme will be in the regulations and administrative guidelines which will be promulgated after the enactment of appropriate amendment of the Higher E ducation

Funding Act later in the current Parliamentary session.

23 In relation to potential loss of revenue due to failure to pay HECS, the Committee was told that the original estimate of students who would not repay HECS was 30 per cent. The Auditor­ General has asked the Department to provide an estimate of the amount that might never be collected against the then existing level of HECS debt. To accurately fix this amount, the Department has commissioned th e national centre for social and economic modelling at the

University of Canberra to construct a model for estimating future HECS revenue which derives from work on simulation of lifetim e earnings of individuals. The Department has also commissioned the Australia n Gove rnm ent Actuary to provide an estimate of the amount that might not be collected in current HECS debts. An estimate is that against total HECS debt outstanding at 30 June 1993 of $2.3b an amount of $376.5m would not be recovered, represent ing about 16 per cent of the total current debt. (Hansard pp 119-121)

46

RECOMMENDATIONS

Estimates Committee B recommends:

That the proposed expenditure, in accordance with the estimates referred to the Committee, be approved by the Senate without amendment or requesL

Senator B R Burns

(Chairman)

47

MINUTES OF PROCEEDINGS

48

1 MEEilNG-

TilE SENATE

ESTIMATES COMMITfEE B

MINUfES OF PROCEEDINGS

N0.4

TIIURSDAY, 31 AUGUST 1993

The Committee met in public session at 8.05 pm in Committee Room 2S1, Parliament House.

2 PARTICULARS OF PROPOSED EXPENDfiURE 1993-94- DEPARTMENT OF DEFENCE-In attendance - Senator Robert Ray, Minister for Defence accompanied by officers of the Australian Defence Force and of the

Department of Defence

The Committee called on the following programs of proposed expenditure for the Committee's consideration. The expenditure proposed for these programs is set out in the Program Performance Statements for the Defence Portfolio as follows -

Program 1 - Forces Executive Program 2- Navy Program 3 - Army Program 4- Air Force

3 ADJOURNMENT-The Committee adjourned at 11.02 pm. The s1ttmg of the Committee was also adjourned from 6.32 pm until 8.05 pm. 4 ATTENDANCE-

Senators Burns (Chairman), Carr, Evans, Teague, Tierney. Senators Hill and Sandy MacDonald also attended.

CONFIRMED

Senator B R Burns (Chairman)

49

1 MEETING-

TilE SENATE

ESTIMATES COMMITIEE B

MINUTES OF PROCEEDINGS

N0.5

FRIDAY, 3 SEPTEMBER 1993

The Committee met in public session at 9.04 am in Committee Room 2Sl, Parliament House.

2 PARTICUlARS OF PROPOSED EXPENDITURE 1993-94 DEPARTMENT OF DEFENCE -

In attendance - Senator Robert Ray, Minister for Defence accompanied by officers of the Australian Defence Force and of the Department of Defence

The Committee called on the following programs of proposed expenditure for the Committee's consideration. The expenditure proposed for these programs is set out in the Program Performance Statements for the Defence Portfolio as follows -

Program 5 - Strategy & Intelligence Program 6 - Acquisitions & Logic Program 7 - Budget & Management Program 8 - Science & Technology

3 ADJOURNMENT -

The Committee adjourned at 1.12 pm. The sitting of the Committee was also adjourned from 10.30 am until 10.45 am.

4 ATTENDANCE -

Senators Burns (Chairman), Carr, Evans, Teague, Tierney. Senator Hill also attended.

CONFIRMED

Senator B R Burns (Chairman)

50

1 MEETING-

THE SENATE

ESTIMATES COMMfiTEE B

MINUTES OF PROCEEDINGS

N0.6

The Committee met in public session at 9.08 am in Committee Room 2S1, Parliament House.

2 PARTICULARS OF PROPOSED EXPENDITURE DEPARTMENTOFEMPLOYMENT,EDUCATION AND TRAINING-In attendance - Senator Robert Ray, Minister for Defence accompanied by officers of the Department of Employment,

Education and Training

The Committee called on the following programs of proposed expenditure for the Committee's consideration. The expenditure proposed for these programs is set out in the Program Performance Statements for the Employment, Education and Training portfolio as follows ·

Program 1 - Schools Program 2 - Higher Education Program 3- Vocational Education and Training Program 4 - Employment Program 5 - Education Assistance and Income Support Program 6 - Corporate Services, Portfolio Advising and International Participation

3 PARTICULARS OF PROPOSED EXPENDITURE DEPARTMENT OF VETERANS' AFFAIRS

In attendance - Senator John Faulkner, Minister for Veterans' Affairs and Minister for Defence Support accompanied by officers of the Department of Veterans' Affairs

51

The Committee called on the following programs of proposed expenditure for the Committee's consideration. The expenditure proposed for these programs is set out in the Program Performance Statements for the Veterans' Affairs Portfolio as follows-

Program 1 - Benefits Program 2 - Health Program 3 - War Graves Program 4 - Corporate Servict:s Program 5 - Australian War Memorial

4 ADJOURNMENT-The Committee adjourned at 5.48 pm. The sitting of the Committee was also adjourned from 12.57 pm until 2.00 pm.

5 ATfENDANCE-Senators Burns (Chairman), Carr, Evans, Teague, Tierney, MacGibbon.

CONFIRMED

Senator B R Burns (Chairman)

52

TABLE OF CONTENTS

TO

HANSARD OF PUBLIC HEARINGS

Thursday, 31 August, 1993 Friday, 3 September, 1993 Wednesday, 8 September, 1993

53

ESTIMATES COMMITfEE B

TABLE OF CONTENTS TO HANSARD

Index to issues raised during public hearings on 31 August and 3 and 8 September 1993

DEPARTMENT OF DEFENCE- 31 AUGUST AND 3 SEPTEMBER 1993

OVERVIEW

Personnel .................................................. 3-8,14-19

Workplace bargaining .......................................... 8-19,39

Peacekeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19-25

1993 Strategic Review/White Paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25-28

Commercial support program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28-39,39-40

Logistics development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40-41

Defence centres . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41-42

Unacceptable sexual behaviour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42-43

Review of women in combat positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43-44

PROGRAM I-FORCES EXECUTNE

ADF Peacekeeping Centre . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44-45

United Nations staffing ............................................. 45

1.3 Personnel Defence International Training Centre/Wing Commander Kenyon .......... 45-47 Performance based pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47-50,52-56

Defence attaches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56-57

Japan .......................................................... 57

Defence Force School of Languages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57-58

Recruitment of submariners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58-59

1.5 Executive support Electronic media coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

1. 7 Defence housing Improvement .................................................... 59

PROGRAM 2-NA VY

2.1 Combat Forces Closure of reserve bases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59-63,67

Onslow refit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,68

Otama contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64-67,68

54

22 Executive Hydrographic office relocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68-69

Hydrographic and oceanographic objectives . . . . . . . . . . . . . . . . . . . . . . . . . . 69-71

Hydrographic vessel project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71-72

Minehunting project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72-73

PROGRAM 3-ARMY

Ready Reserve .................... . ................... ..... ... .. . 73

Relocation to North Australia ............................ ... . ... 74-76,80

3.1 Combat Forces Levels of preparedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76-80

PROGRAM 4-AIR FORCE

4.1 Combat forces Reimbursement by UN ............. ... ................. ....... ..... 80

F111 G purchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80-83

4.2 Executive Maintenance contracts (ANAO report) .... ....... ............... . ... 83-84

4.4 Training ADF helicopter school relocation 84-85

PROGRAM 5-STRATEGY AND INTElLIGENCE

New Zealand relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85-86

Bougainville .................................... .. ..... ......... . 86

PROGRAM 6-ACQUISffiON AND LOGISTICS

6.1 Major capital equipment Collins submarines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86-87,88-89

Telecom audit ................................................... 87

Jindalee .................................. . ............ ......... 87

ANZAC ship project ................................. ...... ...... . 89

Electronic support measures ......................................... 89

Light armoured vehicle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89-90

Orion aircraft ........ . ....... .. ........ . ........ ....... ...... ... . 90

6.2 Facilities Compensation payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87-88

6.3 Logistics Cockatoo Island: environmental study .................. . .. .. .. ..... . .. . 88

55

DEPARTMENT OF EMPWYMENT, EDUCATION AND 1RAINING-8 SEPTEMBER 1993

OVERVIEW

NBEET review (Prof. Wiltshire) ........ .. .................... ........ 93

PROGRAM I-SCHOOLS

Socio-economic categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93-96

1990-91 retention rates ............................................. 96

Retention rates for years 10, 11 and 12 ................................. 96

Language study enrolments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97-98

Capital grants program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98-99

Quality, Competencies and Technological Support Element .. ....... . ... . .. .. 99

One Nation supplement . ..... . .. ... ... ................. . ..... .... .. 99

National Collaborative Curriculum and Profiles Development . . . . . . . . . . . . 99-101 State maintenance programs .... . ......... . .......... .. ...... . ... 101-102

Advanced Skills Teacher classification ............................. . 102-103

New non-government school recurrent funding . . . . . . . . . . . . . . . . . . . . . . . . . . 103

1.1 General Assistance Key competencies development .................................. 103-104

Non-Government School Financial Questionnaire ................... .. 104-107

1.2 Targeted Assistance Future equity program accountability .............................. 107-108

NEPS expenditure in Victoria .................................... 108-110

English as a Second Language (ANAO report) ....................... 110-111

Students at Risk .. . ................................ . ............ . 111

Gifted and Talented students .................... .. ........ . .... . 111-113

Broadbanding for country area program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

National Equity Program objectives in Victoria ....................... 113-115

PROGRAM 2-HIGHER EDUCATION

2.1 Higher Education System EFTSUs ..... . ..................... . . ... ................. 115-117,122

External income for universities ... ...... ............... . ......... 117-119

HECS: Up-front payments .................................. . . .. . 119-120

Second undergraduate degrees ............................ . .. .. 120

Progress rules .......................................... 120-121

Non-repayment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121

Hotline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121

Committee for Quality Assurance in Higher Education ............ . ... . 122-124

James Cook University-Cairns campus ................. .. .. . .......... 124

Libraries . ... ..... ...... ... .... . ............................ 125-126

56

Open Learning ............................................... 126-128

22 Targeted Research and Scientific Development Research proposal guidelines .................. .. .. ...... . ....... 128-129

Australian Research Council .. .. .... . . ... ................ . .. . . ... 129-130

PROGRAM 3-VOCATIONAL EDUCATION AND TRAINING

Commonwealth support increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130

T AFE resources agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130

Australian National Training Authority (ANTA) . . . . . . . . . . . . . . . 130-134,138-140

3.1 Vocational Education and Training System Competency Standards Bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

3.2 Workforce Development Training guarantee levy (EPAC report) ........ ... ......... .. ...... 134-137

TAFE grants to Adelaide College ............... .. ..... ..... . .... . 137-138

3.3 Australian National Training Authority Industry training authority board review ................... ... ...... 140-141

Transfer of operations from DEET to ANTA ..... ...... .... ......... ... 141

Industry training advisory bodies in Victoria . . . . . . . . . . . . . . . . . . . . . . . . 141--142

PROGRAM 4-EMPLOYMENT

4.1 Employment Access Jobtrain ............................... . ..... .. ......... .. . 147-148

Landcare and Environment Action Program .................. . .. .. .... . 148

Accredited Training for Youth .. .. . ...... .... . ..... .. ... ..... .... 148-150

New Enterprise Incentive Scheme ...................... .. ...... .. .... 150

Post program monitoring .... . .. . .. . .............. . .... ... ... .. . 150-151

Income support payments ......................... .... .... ........ . 151

4.2 Labour Adjustment Assistance Outcomes for labour adjustment program ........ . .... . .......... .. .... 151

4.4 Employment Services Disabilities Reform Package advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143-145

Newstart work tests ........ . . .. .. . . . ... . ..... . ...... .... .. . . .. 145-146

National profile .................................... . . . .... . .. 146-147

PROGRAM 5-EDUCATION ASSISTANCE AND INCOME SUPPORT

5.1 Education Income Support Austudy for 16 year old secondary students ....... . .. . ......... .. .... 151-152

57

PROGRAM 6--

6.1 Executive Management and National Corporate Services Program Finance direction 25F-property management ......................... 154-155

Reporting to parliament . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155-156

6.3 Language, Asian Studies and International Participation Key directions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152-153

Beijing new education centre .......... .... . ... .... ... .... .. ..... 153-154

DEPARTMENT OF VETERANS AFFAIRS- 8 SEPTEMBER 1993

OVERVIEW

Performance based pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157

Fraud control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157

Client's needs and attitudes survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157

Hostel development scheme ..................................... 157-158

PROGRAM 1-BENEFITS

1.1 Income Support Payments to service pensioners widows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158,164

Appeals against determinations ................................... 158-160

Carer service pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160

Service pension decreases ....................................... 160-161

1.2 Compensation Claims granted to BCOF members (Hiroshima/Nagasaki) .................. 161

Compensation claim forms -privacy provisions ....................... 161-162

Mortality of Vietnam veterans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162

Claims of Vietnam veterans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162

Younger veterans (ANAO report) ................................... 162

Vocational rehabilitation pilot study ............................... 162-163

1.4 Housing Assistance Westpac monthly subsidy claims verification .. . ......................... 163

Westpac- additional housing loans .................................. . 163

Fringe benefit tax ..... ....... ..... ........ ...... .............. 163-164

PROGRAM 2-HEALTI-1

22 DVA Health Care Services Repatriation general hospital transfer to state system .............. . ... 164-165

Greenslopes, Queensland ...................... . ................ 165-166

Daw Park, South Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166

58

Hobart and Concord 0 0 0 0 o o o o o o 0 0 0 0 0 0 0 0 0 0 0 0 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 166-167

Waiting lists at integrated hospitals 0 0 0 0 0 0 0 0 0 0 0 0 0 o o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 167

23 Community-based Health Care Domiciliary nursing care 0 0 0 o o o o o 0 0 0 0 0 0 0 0 0 0 0 0 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 167

Provision of home nursing care o o o 0 0 0 0 0 0 0 0 0 0 0 0 0 o o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 167-168

Contract counselling services o o o o 0 0 0 0 0 0 0 0 0 0 0 0 0 o o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 168

Nursing home contribution fee o o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 168-169

PROGRAM 3-WAR GRAVES

3.2 Care and Maintenance Papua New Guinea 0 0 0 0 0 0 0 0 o o o 0 0 0 0 0 0 0 0 0 0 0 0 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o o o o o 0 0 169

PROGRAM 4-CORPORATE SERVICFS

Resources Summary-corporate Services Program 0 0 o o 0 0 0 0 0 0 0 0 0 0 0 0 o o 0 0 0 169-170

4.3 Financial and Assets Management Queensland departmental office fitout 0 0 0 0 0 0 0 0 0 0 o o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o 0 170-171

4.4 Human Resource Management Staff involvement in industrial disputes

PROGRAM 5-AUSTRALIAN WAR MEMORIAL

5ol National Collection

170

Maintenance of collection 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o o o 0 0 0 0 0 0 o 171

Modernisation of displays 0 0 0 0 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o o 0 0 0 0 0 0 171-172

New technology pavilion, Mitchell 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o o o 0 o 172-173

5.4 Corporate Services A WM review into organisation structure and staffing 0 0 0 0 0 0 0 0 0 0 o o 0 0 o 0 o o 0 o 0 173

59

AUSTRALIAN SENATE

ESTIMATES COMMITTEE C

REPORT TO THE SENATE

October 1993

61

MEMBERSHIP OF THE COMMITTEE

Senator M. Reynolds (Chair) (Q ueensland)

Senator K. Denman (Tasmania)

Senator S. Murphy (Tasmania) (until 27 September 1993)

Senator J. Newman (Tasmania)

Senator K. Patterson (Victoria)

Senator G. Tambling (Northern Territory)

Senator 0 . Zakharov (Victoria) (from 27 September 1993)

62

ESTIMATES COMMITTEE C

REPORT TO THE SENATE

Estimates Committee C presents its Report to the Senate.

Introduction

1. On 19 August 1993 the Senate referred to the Committee:

• the particulars of proposed expenditure for the service of the year ending on 30 June 1994; • particulars of certain proposed expenditure in respect of the year ending on 30 June 1994; and • expenditure under the Advance to the Minister for Finance for the year ended

30 June 1993

relating to the following portfolios:

• Health, Housing, Local Government and Community Services; and

• Social Security.

2. The Committee has considered the expenditures of these portfolios as presented in their respective Program Performance Statements and has received explanations of the estimates from Senator the Hon G. Richardson, Minister for Health and Minister representing the Minister for Housing, Local Government and Community Services, and Senator the Hon R. Crowley, Minister for Family Services and Minister Assisting the Prime Minister for the Status of Women, and officers from the portfolios concerned.

3. The Committee expresses its appreciation for the assistance of the Ministers and officers who appeared before it

4. The Committee tables for the mformation of the Senate in conJunction with Appropriation Bills No 1 and No 2, copies of the Mi nutes of Proceedings and the Hansard transcripts of evidence of Committee proceedings. Answers to questions taken on notice prior to and at the Committee's hearings wil l be tabled in the Senate under

separate cover in volumes entitled "Additional Information Received"-

5. The Committee wishes to bring the followmg matters to the attention of the Senate.

63

ISSUES RELATING TO BOTH THE PORTFOLIOS EXAMJNED

Officer.> Attending - Gender Balance

6 . When the Health, Housing, Local Government and Community Services Portfolio appeared before the Committee on 31 August, the Committee asked why the officers attending were predominantly male. In response, the Secretary of the Department tabled data showing the representation of Equal Employment Opportunity Groups within occupational groups for the Department (excluding the Office of Local Government, for which data was not immediately available). Most officers appearing before Estimates Committees are from the Senior Executive Service (SES). The table showed that in the category "Secretary and Senior Executive Service" one-third of the Department's officers were female. The Committee was told that the average in this category across the Australian Public Service was only 13 per cent. The table showed that 61.9 per cent of the Department's 5,870 staff were female.

7. The Committee considers it a matter of concern that the gender balance of the officers appearing did not come even close to reflecting the fact that the Department is one of the more successful ones in implementing EEO principles.

8 . The Department of Social Security's draft Annual Report 1992-93 provided to the Committee showed that 22 percent of the Department's SES officers were female on 30 June 1993. The Committee notes that this is well above the average across the Public Service for this category. Of its total staff of 20,075, nearly 59 per cent were female. Of the 31 witnesses nominated by the Department on its witness list for its first day of examination (2 September), eight were female . A rough count of those attending from the Department on that day, which included supporting officers as well as witnesses, showed an equal number of males and females.

9. The Committee would like to think the gender balance of those attending was further evidence of a commitment to EEO by the Social Security Portfolio, not merely an artificial arrangement to counter the Committee's concerns expressed at the hearing on 31 August in regard to the Health, Housing, Local Government and Community Services Portfolio.

Use of Consultants

10. The Committee is concerned at the number of consultants being used by Departments. It recognises that there are occasions where the use of a consultant is both necessary and effective. However, the Committee believes that consultants are now being used to excess. This prevents the development within Departments of the expertise and skills that the Committee believes they ought to possess.

64

Marketing of the Disability Reform Package

II. Members of the Committee raised a number of matters relating to the marketing of the Disability Reform Package, the ongoing management of which was administered by a Management Committee comprising officers from the Departments of Social Security, of Health, Housing, Local Government and Community Services and of

Employment, Education and Training and chaired by the Office of Government Information and Advertising.

12. The Committee is concerned that the liquidation of Corporate Impacts, a company that was employed to undertake the major part of this marketing, resulted in an unspecified number of unsecured creditors who provided services related to this contract not being paid.

Evidence from the Department of Health, Housing, Local Government and Community Services

13. The Committee notes the comments by an officer of the Department of Health, Housing, Local Government and Community Services that two of the three Departments on the Management Committee believed that the contract with Corporate Impacts should be terminated in May and June 1992. (Hansard, p. Cl69) The Health, Housing, Local Government and Community Services Department's member on the Management Committee believed at that time that the contract should be terminated. However it was decided not to terminate because the Management Committee contended that such an important decision should be a consensus decision. (Hansard,

p. Cl70)

14. The Committee also notes that the Department's member of the Management Committee stated that her concerns about Corporate Impacts' conduct of this contract were :::onveyed to her Minister and to senior Departmental officers. (Hansard, p. C 162)

I 5. The Committee is concerned that an independent evaluation of Corporate Impacts' role in the marketing of the Disability Reform Package has been delayed and that one possible reason for this delay may be the threat of legal action against the evaluator by Corporate Impacts.

16. The evidence given to the Committee indicated that the officer who signed the Corporate Impacts contract assumed that all the necessary financial checks had been undertaken by the Office of Government Information and Advertising. (Hansard, pp. C 177-7 8) It is not known if these checks were undertaken. The Committee is concerned that there may be insufficient safeguards in place to ensure that such checks have been undertaken when the letting and managing of a contract involves more than one Government agency.

65

Evidence from the Department of Social Security

17 . The Committee notes that the Social Security Department's officer on the Management Committee which managed the marketing of the Disability Reform Package believed that the contract with Corporate Impacts should be terminated in May and June 1992.

18 . The Committee notes that this officer stated that she had informed her Secretary of her concerns relating to Corporate Impacts' conduct of this contract. (Hansard, p. C224) She also stated that the Minister was kept informed during the period when termination was being considered by the Management Committee. (Hansard, p. C224)

19. The Committee notes that the contract with Corporate Impacts stipulated that the total fee for service was to be paid in equal instalments payable on the first working day of each month in advance. This does not appear to have occurred. It is a matter of concern that all but $60,000 of the contract was paid out when the contract had four months still to run.

20. The Department of Social Security still appears to be uncertain about who was responsible for checking the bona fides and capacity of the company that was chosen to undertake the contract. Evidence was provided that the Management Committee, the Ministerial Committee or the officers advising the Ministerial Committee may have

been responsible. This is a matter of concern to the Committee. It indicates a need for guidelines outlining the devolution of responsibilities in the letting of a contract that involves more than one Government agency. The Committee notes that the Secretary has approached the Secretary of the Department of Arts and Administrative Services in relation to the adequacy of the current guidelines.

OTHER ISSUES RELATED TO THE HEALTH, HOUSING, LOCAL GOVERNMENT AND COMMUNITY SERVICES PORTFOLIO

Sub-Program 2.1 - Medicare Benefits

Health Insurance Commission

21 . The Committee expresses its concern about the manner in which the Health Insurance Commission has responded to the Government's 1987 requirement that all Commonwealth instrumentalities were to develop a fraud control plan.

22. The Committee was not satisfied with the past inadequate management of overservicing and welcomed the Minister's advice that new legislation is to be introduced to improve the situation. (Hansard, pp. C28-29)

66

23. Given the absence of the General Manager of the Health Insurance Commission from the proceedings of Senate Estimates C on 31 August 1993, the Committee believes that it be a requirement that chief executives of Departments and related organisations attend relevant Senate Estimates Committees unless there are extenuating circumstances for their absence.

Sub-Program 2.2 - Pharmaceutical Benefits

Generic Prescribing

24. Discussion of the mmimum pncing policy revealed that the Government is considering the need to amend legislation so that pharmacists may substitute generic drugs for prescribed brand name drugs, except in cases where a doctor indicates there is to be no substitution.

25. The Government has been considering changes to genenc drug prescribing policy since at least 1987.

26. The Committee believes that the Government should resolve the Issue of legislative change as soon as possible.

27. Senator Newman raised a number of questions concerning the pending prosecution of a Wingham pharmacist for allegedly substituting generic drugs for brand name drugs without first consulting the prescribing doctor, and investigations by the Health Insurance Commission in relation to this case. (Hansard, pp. C45-53)

28. These issues were highlighted in a story featured on the 7.30 Report in July of this year. The 7.30 Report forwarded to Senator Richardson allegations concerning investigations being carried out by the Health Insurance Commission under false pretences.

29. Senator Richardson gave an undertaking to provide the Committee with further information on his response to these allegations. (Hansard, p. C52) At this time the Committee is yet to receive this information.

Sub-Progmm 2.3 - Hospitals, Insurance and Other Health Services

Employment of Consultants

30. The Committee is concerned that the Department of Health, Housing, Local Government and Community Services be most scrupulous in ensuring that a range of consultants are given the opportu nity to tender and to undertake work for the Department so that a w id er number of consultants gain the necessary expertise.

67

Representation of Departmental Officen; on outside bodies

31 . The Committee believes that the Department of Health, Housing, Local Government and Community Services should look very seriously at the representation of its officers on the management and advisory committees of outside bodies, including research institutes, to ensure that no conflict of interest occurs.

Sub-Progmm 3.2 - Family Services

International Year of the Family

32. The Committee notes with concern that planning for the International Year of the Family (IYF) has been seriously disrupted by changes in Departmental arrangements, and that planning since final arrangements were settled on in April of this year has been proceeding too slowly. (Hansard, pp. C73-78)

33. At the time of the Committee's hearing of 31st August 1993 the IYF Council was yet to meet for the first time. (Hansard, p. C74)

34. No conference facilities have been booked by the IYF Branch for a major conference on Australian families. (Hansard, pp. C75-76)

Consultation to be completed by the end of November of this year was to have involved the IYF Council visiting every State and Territory. The Committee was informed that consultation had not yet begun, and that it would now be by letter only. (Hansard, pp . C74-75)

35. Taking these facts into account, and given the significant reduction in the number of Departmental staff positions allocated to the IYF program in the recent Budget, the Committee expresses its concern at the lack of priority being accorded to the IYF by the Government.

Progmm 4 - Aged Care

Nun;ing Homes - Resident Oassification lnstmment

36. Arrangements for providing Commonwealth funding to non-government nursing homes are intended to allocate the funding according to the specific care needs of each of their residents. As part of these arrangements, nursing homes submit detailed applications for each resident in order to have the resident placed in the appropriate funding category under the Resident Classification Instrument. Classifications are subject to audit and also to periodic review to cater for the fact that a resident's needs may alter over time.

68

37 . It is recognised that the design and administration of the funding arrangements require a balance to be struck. On the one hand there is the need to ensure that the Commonwealth obtains value for its expenditure. On the other hand, the staff of nursing homes are there primarily to care for the residents and should not have to spend excessive amounts of time on complex and detailed documentation unless it can

be shown to be absolutely necessary . The Committee is not convinced that this balance has yet been achieved, and believes that the documentation required may well be excessive. Documentation-related concerns are frequently expressed to Committee members when they visit nursing homes.

38. The Committee was told by representatives of the Department of Health, Housing, Local Government and Community Services that this issue is addressed in a review of the nursing home funding structure by Professor Gregory, the report of which is expected to be released shortly . It is also addressed in a report commissioned from Mrs Susan Macri which is due to be released with the Gregory review. (Hansard,

p. C206) The Secretary of the Department, Mr Tony Cole, responded to the Committee's concern:

I think that we are getting the same message from the industry, that the documentation requirements are excessive. We have been telling them for quite some time that they document rather more than they need to. But, for whatever reason, they are still doing it and they are still complaining about the documentation requirements. We do take it seriously, and the fact that Gregory is looking at it and the fact that Macri has looked at it are really an earnest of how seriously we are taking it. I would hope that around this time next year, when we are

examining this program, we will have fewer complaints about this matter. (Hansard, p. C209)

39. The Committee will continue to monitor this issue. It expects to receive the reports of Professor Gregory's review and Mrs Macri's study as soon as they are released.

Dementia Specific Units

40. The Committee was informed about the financial problems faced by dementia specific aged care facilities. While noting the comments of the Department of Health, Housing, Local Government and Community Services about pro blems with economies of scale faced by such facilities, the Committee recogni ses th at th e number of people with dementia is rising and encourages the Government to continue to take action on this issue.

69

Program 6 - Housing and Urban Development

llousing Industry Association

41 The Committee raised the issue of the Government's refusal to deal with the

Housang Industry Association since the 1993 election. It was told by the Secretary of the Department of Health, Housing, Local Government and Community Services, Mr Tony Cole:

The government has made a decision that it is not going to deal with the Housing Industry Association. I have been instructed that the department should not deal with the Housing Industry Association. Accordingly, where the Housing Industry Association as such was represented on the various consultative committees that we have with the industry, its representatives have stood down from those positions. (Hansard, p. CIJO)

42 Mr Cole said that the instruction he received was an oral one. He was asked if at , .. ·as based on Cabinet consideration of the matter and he replied: 11 1 know that it was a dc: casaon made after ministerial and caucus discussion, but I do not know more than

that " (Hansard, p. C 130)

43 Mr Cole also said, in response to a question, that he was not aware of any

other organisations which traditionally his Department has dealt with as a major voice for the community or industry, and which it is now precluded from dealing with. Officers told the Committee that the Department had not had any .difficulties in its dealings with the Housing Industry Association. (Hansard, p. C 132)

The Committee has yet to be told of the Minister's reasons for his instruction.

Responses have yet to be received to a written question put on notice prior to the hearangs or to the undertaking given by Senator Crowley, who represented the Minister at the relevant hearing, to seek further from the Minister.

4 5 In the absence of any cogent explanation, the Committee regards it as a matter

f consaderable regret that the Government has decided not to deal with the Assocaation and to ban the Departmental officers from such dealings, given the Assocaataon's status as the major body in the community dealing with the housing mdustry .

ht-ltered \Voriuhops

46 The Committee noted the significant policy changes and shift in emphasis announced by the t\·tinister, Mr Howe, in July 1993, in relation to sheltered workshops, the achievement of open employment for people with disabilities, and the transition

70

arrangements between the two. The Committee asked the Department of Health, Housing, Local Government and Community Services whether consultations are taking place with various peak organisations on the development of standards and guidelines to govern who is and is not expected to make the transition from sheltered workshops to open employment. (Hansard, p. Cl86-87) The Committee was told:

We intend to [consult]. We are not in the process at the present time, although they have seen an early draft and have asked some questions. We do intend to be making sure that the policy is workable and is understood by the community. (Hansard, p. C187)

47. The Committee was also told by another officer:

Our very first action, virtually the day after - it may have been a few days after- the minister's announcement was to meet with ACROD and DPI [Disabled Peoples' International] so that we could agree on a communications process, form of words, et cetera. We decided that the first step was to make sure that we had our description of the decision

right so that people would understand it. That has been achieved with ACROD and DPI. We have always had it right up-front, as a part of our intention that, as soon as we have achieved that, we will develop a process for consultation which will lead to implementation. (Hansard, p. Cl87)

48. The Committee urges that changes in this area take place only after there has been thorough consultation and agreement with the peak organisations representing with the disabled.

OTHER ISSUES RELATED TO THE SOCIAL SECURITY PORTFOLIO

Program 3 - Income Security for the Unemployed

49. A number of matters were raised with respect to the Department's Youth Homeless Allowance (YHA) guidelines. (Hansard, pp . C298-307)

50 . Concerns were expressed in relation to serious allegations made against parents by young people seeking YHA, which under present arrangements are not adequately investigated. (Hansard, p. C303)

51 . Another concern is that there IS not enough emphasis on keeping families together where possible.

71

52. In the light of public comment, and in concert with the establishment of youth service units, the Department indicated that it is looking at the appropriateness of the guidelines for YHA. (Hansard, pp. C30!)

53. The Committee considers that such a review should take into account all of the concerns which were raised at the Committee hearing on 29th September.

Senator Margaret Reynolds (Chair)

72

Minutes of

Proceedings

73

PRIVATE MEETING

ESTIMATES COMMITTEE C

Minutes of Meeting No. 4 of 37th Parliament Tuesday, 31 August 1993

1. The Committee met in private session in Committee Room 2S3 at 5.06 pm.

Election of Chair

2. The secretary called for nominatio ns for the position of Chair. Senator Murphy nominated Senator Reynolds. There being no other nominations, Senator Reynold was elected and took the Chair. The meeting then continued in public, commencing at 5.09 pm.

PUBLIC MEETING

Particulars of Proposed Expenditure for 1993-94, and Expenditure under the Advance to the Minister for Finance for I 992-93 - Health, Housing, Local Government and Community Services Portfolio

3. In attendance: Senator the Hon G. Richardson, Minister for Health and Minister representing the Minister for Housing, Local Government and Community Services, and Senator the Hon R. Crowley, Minister for Family Services and Minister assisting the Prime Minister for the Status of Women. The Ministers were accompanied by the following officers who also responded to questions from the Committee:

Mr Tony Cole, Secretary Mr Mick Roche, Deputy Secretary Mr Alan Bansemer, Deputy Secretary Dr Tony Adams, Chief Medical Adviser Health A dvancemen/ Division

Dr John Loy, First Assistant Secretary, Ms Marion Powall, Assistant Secretary, Health Development Health Care Access Division Ms Fiona Howarth, Principal Adviser, Dental

Ms Dallas Ariotti, Principal Adviser, Health Care Access Division Mr David Graham, Assistant Secretary, Pharmaceutical Benefits Dr Vi n McLoughlin, Assistant Secretary, General Practice .tv1r Warren Talbot, Assistant Secretary, Casemix

74

Mr Chris Sheedy, A/g Assistant Secretary, Hospitals Branch Mr Brian Candler, Assistant Secretary, Health Services Branch Mr Mike Mossop, A/g Assistant Secretary, Health Services Branch Family and Children's Services Division

Ms Sue Kerr, Assistant Secretary Mr Mark Johnson, Assistant Secretary, Strategic Planning Ms Isabel Frean, International Year of the Family Therapeutic Goods Administration

Dr Geoff Vaughan, National Manager Dr M. Wright, Director, Drug Evaluation Health Insurance Commission Mr Ken Hazell, General Manager, Government Programs Division

Dr John Nearhos, General Manager, Professional Review Division

4. The following programs were called on for consideration:

• Program 1 - Health Advancement;

• Program 2 - Health Care Access; and

• Program 3 - Family and Children's Services.

Tabled Documents

5. The following documents were tabled by the Department of Health, Housing, Local Government and Community Services: • the Department's Equal Opportunity Program 1993-96; and • tables showtng for the Department "Representation of EEO

Groups withtn Occupational Groups" and "Representation of EEO Groups within Salary Levels".

Adjournment

6. The Committee adjourned at 12 .28 am on Wednesday, 1 September 1993

Attendance

7. All members of the Committee (Senators Reynolds, Denm an. t\1urphy,

Newman, Patterson and Tambling) Senators Harradine, Herron and Pa ni zza also attended .

Confirmed

' / f t' ( I/

;! f(ftlftJ0T0 ( . !(__, I t./ . I l Senator the Hon M . Rey no lds (Chair)

75

Meeting

ESTIMATES COMMITTEE C

Minutes of Meeting No. 5 of 37th Parliament Friday, 3 September 1993

1. The Committee met in public session in Committee Room 2S3 at 8.34 am.

Particulars of Proposed Expenditure for 1993-94, and Expenditure under the Advance to the Minister for Finance for 1992-93 - Health, Housing, Local Government and Community Services Portfolio

2. In attendance: Senator the Hon G . Richardson, Minister for Health and Minister representing the Minister for Housing, Local Government and Community Services, and Senator the Hon R. Crowley, Minister for Family Services and Minister assisting the Prime Minister for the Status of Women. The Ministers were accompanied by the following officers who also responded to questions from the Committee:

Mr Tony Cole, Secretary Ms Mary Murnane, Deputy Secretary Mr Mick Roche, Deputy Secretary Disability Programs Division Mr Brian Corcoran, First Assistant Secretary Ms Janet Murphy, Disability Planning and Quality Assurance Mr Brendon Kelly, Australian Government Health Services Ms Jennifer Thomas, Assistant Secretary Housing and Urban Development Division Mr Mark Johnson, First Assistant Secretary Mr Bruce Gemmell, Principal Adviser Ms J Bryant, Assistant Secretary, Housing and Urban Policy Office of Local Govemment Mr Mark Lynch, First Assistant Secretary National Capital Planning Authority Mr Gary Pratt ley, Acting Chief Executive Ms Sue Kesteven, Executive Director

3. The following programs were called on for consideration:

• Program 6 - Housing and Urban Development; • Program 7 - National Capital Plannmg;

76

• Program 8 - Local Government;

• Program 5 - Disability Programs; and • Program 9 - Corporate Direction and Support

Adjournment

4. The Committee adjourned at 3.26 pm.

Attendance

5. All members of the Committee (Senators Reynolds, Denman, Murphy, Newmari, Patterson and Tambling). Senator I. McDonald also attended.

Confirmed

')

t l

Senator the Hon M. Reynolds (Chair)

77

Meeting

ESTIMATES COMMITTEE C

Minutes of Meeting No. 6 of 37th Parliament Friday, 24 September 1993

I. The Committee met in public session in Committee Room 1 RI at 9.07 am .

Particulars of Proposed Expenditure for 1993-94, and Expenditure under the Advance to the Minister for Finance for 1992-93 - Health, Housing, Local Government and Community Services Portfolio

2. In attendance: Senator the Hon R. Crowley, Minister for Family Services and Minister assisting the Prime Minister for the Status of Women. The Minister was accompanied by the following officers who responded to questions from the Committee:

Mr Tony Cole, Secretary Ms Mary Murnane, Deputy Secretary Mr R Griew, Acting First Assistant Secretary, Aged and Community Care Division Mr D. Stevenson, Residential Care Quality and Rights Branch, Aged and

Community Care Division

3. The following program was called on for consideration :

• Program 4 - Aged Care

Consideration of this program completed the Committee's examination of the proposed expenditure for the Portfolio.

Particulars of Proposed Expenditure for 1993-94 - Social Security Portfolio

4. In attendance: Senator the Hon R. Crowley, Minister for Family Services and Minister assisting the Prime Minister for the Status of Women. The Minister was accompanied by the following officers who responded to questions from the Committee:

Mr A . Blunn, Secretary Mr J. Bowdler, Deputy Secretary, Programs Mr B. Godfrey, Deputy Secretary, Corporate

78

Branch

Mr I. Carnell, First Assistant Secretary, Security Fraud and Control Division Mr C . Butel, First Assistant Secretary, Program Delivery Division Mr D. Tune, Assistant Secretary, Retirement Program Branch Mr T . Schell, Assistant Secretary, Disability Program Branch Mr T . Field, Assistant Secretary, Labour Force ProgramBranch Ms C. Zanetti, Assistant Secretary, Sole Parent Program Branch Ms L. Briggs, First Assistant Secretary, Social Policy Division

Mr G . Leeper, Assistant Secretary, Family Assistance and Housing Policy Branch Ms J . Davidson, Assistant Secretary, Labour Market and Disability Policy Branch Mr J. Wadeson, First Assistant Secretary, Corporate Services Division Mr H. Jongen, Assistant Secretary, Information and Public Relations

Mr G . Jensen, Director, Satellite Coordination, Training Branch Ms K. Barfoot, Assistant Secretary, Budget Coordination and Corporate Planning Branch

5. The following programs were called on for consideration:

• Program 1 - Income Security for the Retired • Program 2 - Income Security for People with Disabilities and the Sick • Program 4 - Income Security for Families with Children • Program 5 - Provisions for Special Circumstances • Program 6 - Corporate and Other Services

6. The Department tabled a page containing corrections to the table on p. 361 of its Program Performance Statements, and to associated tables on pp . 302, 369, 376 and 377.

Adjournment

7. The Committee adjourned at 4 01 pm.

Attendance

8. Senators Reynolds, Denman and Patterson.

Senator the Hon M . Reynolds (Chair)

79

Meeting

ESTIMATES COMMITTEE C

Minutes of Meeting No. 7 of 37th Parliament Wednesday, 29 September 1993

1. The Committee met in public session in Committee Room 2S3 at 8.33 pm.

Particulars of Proposed Expenditure for 1993-94 - Social Security Portfolio

2. In attendance: the following officers who responded to questions from the Committee:

Mr A. Blunn, Secretary Mr J. Bowdler, Deputy Secretary, Programs Mr B. Godfrey, Deputy Secretary, Corporate Mr I. Carnell, First Assistant Secretary, Security Fraud and Control

Division

Mr J. Humphreys, National Manager, Operations Mr J. Wadeson, First Assistant Secretary, Corporate Services Division Mr H. Jongen, Assistant Secretary, Information and Public Relations Branch Mr G. Jensen, Director, Satellite Coordination, Training Branch Ms L. Briggs, First Assistant Secretary, Social Policy Division Ms K. Barfoot, Assistant Secretary, Budget Coordination and Corporate

Planning Branch Mr T. Field, Assistant Secretary - Labour Force Program Mr M. Sassella, Principal Adviser Legal Service-s Group Mr P Fitzgerald

3. The following programs were called on for consideration:

• Program 6 - Corporate and Other Services • Program 3 - Income Security for the Unemployed

Consideration of these programs completed th e Committee's examination of the proposed expenditure for the Portfolio.

80

Adjournment

4. The Committee adjourned at I 0.43 pm .

Attendance

5. Senators Reynolds, Denman, Newman, Patterson and Zakharov.

Confirmed

Senator the Hon M . Reynolds (Chair)

81

ESTIMATES COMMITIEE C

Minutes of Meeting No. 8 of 37th Parliament Thursday, 6 October 1993

I . The Committee met in private session in the advisers waiting area outside the Senate Chamber at 4.08 pm .

Minutes of Meetings

2. The minutes of meetings 4 (31 August), 5 (3 September), 6 (24 September) and seven (29 September) were approved on the motion of Senator Patterson.

Adoption of Report

3. The Committee considered the draft of its report to the Senate. Amendments were approved to paragraphs 36 and 41 . Alternative versions were proposed for a further section dealing with sub-program 3.2 in the Health Portfolio. After discussion, the Committee agreed to adopt the version proposed by Senator Newman. On the motion of Senator Tambling, the Committee then agreed to adopt the draft report as amended.

Date for Supplementary Hearings

4. The Committee fixed 15 October 1993 as the day for submission to it of any written answers or additional information. It fixed 25 October 1993 as the day for commencement of its supplementary meetings. The Committee agreed to hold a further such meeting on 2 November 1993.

Adjournment

5. The Committee adjourned at 4.27 pm.

Attendance

6. Senators Reynolds, Denman, Newman, Patterson, Tambling and Zakharov.

CertifieJ;:r Senator the Hon M. Reynolds (Chair)

82

ESTIMATES COMMITTEE C

TABLE OF CONTENTS TO HANSARD

Subject Page

Tuesday, 31 August 1993

Health, Housing, Local Government and Community Services Portfolio

Program I - Health Advancement Sub-program 1.2 - Environmental Health Standards ........ . .. ... C3-7

Sub-program 1.3 - Health Promotion and Disease Prevention ....... C7-14 Sub-program 1.4- Health Research . . . . . . . . . . . . Cl4-17

Sub-program 1.5 - Therapeutic Goods . ... ... . ..... ... . . ... . Cl7-23

Program 2 - Health Care Access Sub-program 2.1 - Medical Benefits . . . . . . . . . . . . . . . . . . . . . . C24-43

Sub-program 2.2 - Pharmaceutical Benefits . . . . . . . . C43-53

Sub-program 2.3 - Hospitals, Insurance and other Health Services .. C53-63 Program 3 - Family and Children's Services Sub-program 3.1 - Children's Services . . . . . . . . . . . . . . . . . . . . . . C63-72

Sub-program 2.2 - Family Services . . . . . . . . . . . . . C72-79

Questions Placed on Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C79-113

Friday, 3 September 1993

Health, Housing, Local Government and Community Services Portfolio

Program 6 - Housing and Urban Development Program 7 -National Capital Planning .... ...... .

Program 8 - Local Government -Program 5 - Corporate Impacts contract ......... . ... .... .. .. .

Disability Programs ..... . .. . . . .. . .. .... . . . .. . . .

Friday, 24 September 1993

Health, Housing, Local Government and Community Services Portfolio

Program 4 - Aged Care Sub-program 4.1 - Assessment

Social Security Portfolio

83

Cll5-34 CI34-39 CI39-57 CI57-81 Cl81-94

Cl95-2ll

Program I - Income Security for the Retired .... . ............. . . .

Program 2 - Income Security for People with Disabilities and the Sick Contract with Corporate Impacts Other parts of Program 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Program 4 - Income Security for Families with Children .... ... . .. . . .

Program 5 - Provisions for Special Circumstances ...... ... . ... . . . .

Program 6 - Corporate and Other Services Interactive broadcasting network contract . .. ...... ......... .

Wednesday, 29 September 1993

Social Security Portfolio

C212-23

C223-48 C249-58 C258-6I C261-64

C264-73

Program 6 - Corporate and Other Services . . . . . . . . . . . . . . . . . . . . . . . C282-98

Program 3 - Income Security for the Unemployed . . . . . . . . . . . . . . . . C298-31 0

84

FSTIMATES COMMITIEE D

REPORT TO 1HE SENATE

October 1993

85

Members:

Secretary:

Research:

MEMBERS OF THE COMMITIEE

Senator John Coates (Tasmania)

Senator Bronwyn Bishop (New South Wales)' Senator Mal Colston (Queensland) Senator Winston Crane (Western Australia)" Senator Shayne Murphy (Tasmania) Senator Warwick Parer (Queensland)

'Senator Nick Minchin (South Australia) replaced Senator Bishop for the consideration of the estimates of the Arts and

Administrative Services portfolio and the Industrial Relations portfolio

"Senator Brian Gibson (Tasmania) replaced Senator Crane for the consideration of the estimates of the Arts and Administrative Services portfolio, the Treasurer's portfolio and the Finance portfolio

Richard Gilbert

Barbara Allan Liz Carter

86

CONTENTS

Page

Report 1

Reservation: Senators Bishop, Parer, Gibson, Minchin and Crane 7

Reservation: Senator Minchin 10

Minutes of proceedings 11

Hansard index 31

87

FSTIMATES COMMTITEE D

REPORT TO TilE SENATE

Introduction

On 19 August 1993 the Senate referred to the Committee, for examination and report, the Particulars of Proposed Expenditure for the Service of the Year Ending on 30 June 1994 and the Particulars of Certain Proposed Expenditure for the Year Ending 30 June 1994 for the following portfolios:

• Arts and Administrative Services • Treasury

• Finance

• Industrial Relations.

The Committee considered these estimates, together with the Program Performance Statements, and received evidence from the Minister for the Arts and Administrative Services, Senator McMullan, and officers of the departments and authorities concerned. Copies of minutes of proceedings are appended to this report. The Hansard report of the evidence taken by the Committee is tabled for the information of the Senate in connection with Appropriation Bill (No. 1) 1993-94 and Appropriation Bill (No. 2) 1993-94. Further written explanations provided by departments will be tabled when received,

in volumes entitled Additional Information.

The Committee conducted public hearings on six days and sat for 31 hours and 56 minutes. The Committee records its appreciation of the cooperation and assistance provided by the Minister and officers of the departments and agencies which appeared before it. The Committee also acknowledges the work of the staff of Hansard and of the Sound and Vision Office.

The Committee draws the attention of the Senate to the following matters of interest which arose during the consideration of estimates.

Arts and Administrative Services portfolio

The Committee examined proposed expenditure of $920 293 000 in Appropriation Bill (No. 1) and $336 753 000 in Appropriation Bill (No.2).

88

Arts Expenditure

Whilst the Committee was generally satisfied with the level of detail provided in the Program Performance Statements (PPS), additional information could have been provided to show the changes in expenditure for sub-programs in the Cultural Development program mentioned in post Budget press releases as being the subject of significant increases in funding.

National Media Liaison Service

Similarly, the Committee would have been assisted had specific details of the staffing and fu nding of the National Media Liaison Service (NMLS) been included in the PPS. Now that both the administration and salary costs are under the Arts and Administrative Services portfolio, in the opinion of the Committee it would be appropriate that there

be a clearly identifiable single reference to NMLS in the PPS.

Office of Government Information and Advertising

The Committee examined in detail problems which the Department had experienced with Corporate Impacts, the contractor for the promotion of the Disabilities Reform Package (DRP) initiative. The Office of Government Information and Advertising gave evidence that Corporate Impacts, now in liquidation, was given a contract to provide goods and

services valued at $4.94 million. The Committee noted the Department's dissatisfaction regarding Corporate Impact's discharging of its contractual obligations. In this regard, the Committee was advised that Corporate Impacts had not delivered certain educational tapes for disabled persons, had not presented a contract list relating to the project and

had not prepared a final report on the contract. The Committee was advised that there were a number of DRP-related unsecured creditors, with estimates of the total owed by the contractor ranging from $30 000 to $114 000, and that it was possible that legal action might be taken against the Commonwealth.

Australian Construction Services (ACS) and COMCAR

Amongst the Department's business enterprises there were two for which substantial losses were reported. In each case, it was explained how the organisation was acting to reduce the level of losses. However, the Committee noted that ACS and COM CAR had both experienced past difficulties in estimating and containing losses.

The Treasurer's portfolio

The Committee examined proposed expenditure of $1 500 546 000 in Appropriation Bill (No. 1) and $841 794 000 in Appropriation Bill (No. 2).

89

Pnsmod

Considerable time was spent exammmg the macroeconomic policy subprogram in Treasury and the development of the Prismod distributional model. Prismod was used to assess the full year effects of the 1993 Budget. According to Treasury, the model took into account all budget measures and their impact on certain household types. Discussion ensued on the limitations of Prismod. The Statax model, which was used by Dr Neil

Warren used to examine the distributional impact of the Budget, was also discussed. Treasury undertook to seek the guidance of the Treasurer regarding the provision of advice to the Committee comparing the Statex and Prismod models and their assessment of the impact of the 1993 Budget.

Simplification of the Income Tax Assessment Act

During the Estimates hearings for the 1992 Budget, Estimates Committee B was advised that the Australian Taxation Office (ATO) had formed a small team to work on the development of a project plan to put forward options to simplify the Income Tax Assessment Act (ITAA). During this round of budget estimates the Committee was informed that within the current sittings 'at least some outline proposals' to simplify the

IT AA would be discussed with the Treasurer or the Assistant Treasurer.

Compliance with the Superannuation Guarantee Charge (SGC)

The A TO was unable to give the Committee any statistics on the extent of non­ compliance by employers with the SGC. The ATO advised that its compliance activities during 'coming weeks' would show whether there were areas where there had been a low level of SGC compliance.

Fmance portfolio

The Committee examined proposed expenditure of $206 462 000 in Appropriation Bill (No. 1) and $128 252 000 in Appropriation Bill (No.2).

Compensation arising out of the Joint Committee of Public Accounts (JCP A) Inquiry into the Midford Paramount Case

The Committee questioned departmental officers about provisions in the estimates to make payments to persons entitled to compensation arising out of the JCPA inquiry into the Midford Paramount case. The Committee was advised that the Prime Minister had written to the Minister for Finance asking that an inter-departmental committee (IDC)

be established to examine the claims for compensation. The Committee was further advised that the IDC had commissioned Coopers & Lybrand to conduct an analysis of business valuations relevant to the case. Senator McMullan undertook to allow interested members of the committee to have access to the Coopers & Lybrand report, as it was agreed that it should not become a public document.

90

Commonwealth Superannuation Policy Participation by CSS and PSS in Investment Performance Surveys

The desirability of the CSS and PSS superannuation funds participating in public surveys on superannuation fund performance was raised with an officer from the Retirement Benefits Office (RBO). (This matter was also examined by Estimates Committee B during the Budget 1992 hearings.) The RBO officer agreed that the point was a valid one and undertook to discuss the matter with the boards responsible for administering

the CSS and PSS superannuation schemes.

Australian National Audit Office (ANAO)

The Auditor-General informed the Committee of difficulties which the ANAO had experienced in appointing new graduate staff. A decision of the Industrial Relations Commission had prevented the ANAO from appointing or promoting new staff until a log of claims was resolved.

Another difficulty facing the ANAO related to the lease of its offices in Centenary House. Evidence to the Committee indicated that the lease provided for annual increments in rental of nine per cent. When this matter was raised during evidence from the Department of Finance, it was explained that Finance had agreed to a financing arrangement on the basis of a one per cent increment. This issue was also examined in some detail under the Australian Valuation Office subprogram in the Arts and Administrative Services portfolio, with the AVO strongly defending the appropriateness

of a level of escalation of nine per cent in this case. The Auditor-General said that the ANAO was discussing its total funding with the Department of Finance, and that the ANAO would be 'in an untenable situation if this [the rent increases without the necessary funding adjustments] continues'.

Industrial Relations portfolio

The Committee examined proposed expenditure of $163 732 000 in Appropriation Bill (No . 1) and $1 970 000 in Appropriation Bill (No. 2).

Program Performance Statements (PPS)

During the hearing, it became clear that the DIR PPS contained several significant errors in the presentation of financial data. The Committee expressed its concern that these errors had not been detected by the Department and notified to the Committee before the taking of evidence.

In examining the estimates for Comcare the Committee experienced some difficulty in identifying a single figure representing the net outlays required to fund that agency. Comcare advised that Department of Finance reporting requirements required it to present the information in the way that it did. However, it undertook to consider

including an additional table in future PPS which would clearly show the 'bottom line' for Comcare outlays.

91

General

The Committee thanks the following departments and agencies for providing it with draft annual reports:

Arts and Administrative Services portfolio

Department of the Arts and Administrative Services Australia Council Australian Electoral Commission Australian Film Commission Australian Film, Television and Radio School Australian National Maritime Museum Commonwealth Grants Commission National Film and Sound Archive National Gallery of Australia National Museum of Australia National Science and Technology Centre

Treasurer's portfolio

Department of the Treasury Australian Bureau of Statistics Australian Taxation Office Industry Commission Prices Surveillance Authority

Finance portfolio

Department of Finance Commissioner for Superannuation

Jndustnal Relations portfolio

Department of Industrial Relations Australian Trade Union Training Authority Affirmative Action Agency Australian Industrial Registry Com care Construction Industry Development Agency (six-monthly reports and financial

statements)

National Occupational Health and Safety Commission Remuneration Tribunal.

92

Questions on notice and supplementary hearing

The Committee has agreed to the following dates for the receipt of responses to questions on notice and for a supplementary hearing:

Chair

Tuesday 26 October 1993 - responses to questions on notice to be received

Wednesday 3 November 1993- senators to advise the Secretariat of matters they wish to raise at a supplementary hearing

Tuesday 9 November 1993- supplementary hearing.

93

THE SENATE CANBERRA. A.C.T.

FSTIMATFS COMMfiTEE D - RESERVATION

AUSTRAliAN TAXATION OFFICE

a Affairs of Mr Charles Wright

Officials of the Australian Taxation failed to properly answer questions about the taxation affairs of a recent Labor appointee to head the ACT tourism commission, one Charles Wright.

Mr Wright was named in the "Report of the Royal Commission into Commercial Activities of Government and Other Matters" in Western Australia in the following terms:

''The other payments of particular concern were made to Mr Charles Wright, who operated a fundraising and business relations consultancy. He had done work for the ALP since 1976 in assisting with fundraising at a Federal level... Subsequently, Mr Wright made payments to Mrs Brush for which he was recompensed from the No. 1 account. In essence, Mr Wright was a conduit for $80,000 that was paid from the No. 1 Account to Mrs Brush. Mr Burke gave a similar explanation."

A company of which Mr Wright was the principal is currently subject to investigations by the Australian Securities Commission and records of the Commission indicate that the Tax Office has submitted a preferential claim in relation to the liquidated concern for $176,960.55 in unremitted group tax and an unsecured claim for penalties of $75,853.29.

In light of the examinations of the Joint Committee on Public Accounts into allegations of bias the question which remains unanswered is why the ATO failed to collect from a "conduit" of funds to the Labor Party an amount of over $250,000 over a period of up to three years.

The Minister, Senator McMullan, denied any knowledge of the Wright matter. He stated with reference to Senator Bishop:

"She does not have any idea how this circumstance developed; nor do I."

Since the hearing Senator McMullan has not sought to qualify his statement.

The onus also remains on the Tax Office to explain its conduct in failing to collect the outstanding tax and justify why other taxpayers are not afforded the same apparent latitude.

94

For instance and in contrast to the above case, the Committee heard of how a taxpayer was pursued by the Tax Office for an amount of unpaid tax of $2.00. In a Jetter to the taxpayer the ATO wrote:

" ... unless you pay this amount immediately we will start legal action to recover the debt without further notice to you. This may take the form of a garnishee ... "

b. Extension of the Application of the Capital Gains Tax

The Committee heard how the capital gains tax is being extended to new areas. It was noted that the NSW Law Society had warned that all settlements of legal actions, with the exception of personal injury and defamation cases are subject to capital gains tax.

For instance, a case was brought before the committee of where the Tax Office in Western Australia billed 15 farmers for tax amounting to almost half of a $3 million compensation payout received from the Water Authority of Western Australia to impose a clearing ban on their properties.

The case highlighted the problem of rulings making and expanding the Jaw. Rulings were only adding to confusion on the part of taxpayers and apparent absurdities on the part of the courts.

In one court case an individual receiving damages was awarded an extra amount to cover any capital gains tax that might have to be paid with the proviso that he return the extra amount should such tax not be levied.

DEPARTMENT OF FINANCE AND DEPARTMENT OF TilE ARTS AND ADMINISfRATIVE SERVICES

Centenmy House

Important questions concerning the Centenary House lease between the Commonwealth and John Curtin House Limited remain unanswered.

An agreement for lease for the building was signed in April 1992 and provided terms for a 15 year lease, with a ratchet clause of 9 per cent annual increments in rent and no reviews to market.

An appraisal by Price Waterhouse in 1992 was of the view that:

"the arrangement is extremely generous to the owner and we have difficulty, unless there are facts of which we are not aware, concluding the arrangement is a good commercial proposition for the Government."

Since that time the Government has resisted due scrutiny of the lease.

It was revealed in the Estimates hearings that the Department of Finance was clearly not satisfied with the terms of lease and has informed the Australian National Audit Office that the DOF will finance only a 1 per cent annual increment and not the 9 per cent increment as agreed with the Labor Party.

95

This has put the Audit Office in the position of being required to fund some $34 million out of other resources over the term of the lease. ·The Audit Office will be required to curtail its activities, sack staff or both.

In the Auditor General's own words:

"prospectively it is going to be absolutely disastrous if there is not a change."

'

The Auditor General also testified that the knowledge that the Australian Labor Party was the owner of the building was withheld from him during the relevant period of negotiations for the building.

Since the Estimates hearing on the matter Ministers have declined to answer questions of who in the Government made the relevant decisions on the lease or under what authority they were acting. The declaration from the Government that all documents on the lease had been tabled in the Senate must now also be brought under serious question.

The other serious implication from the contract relates to the possible jeopardy in which certain members of the Parliament may be placed in relation to section 44 of the Constitution.

These and other matters warrant urgent consideration and pursuit.

4 fl (

1 4727 kNATOR BRONWYN BISHOP Senator for New South Wales

/

' I

' / ' /

SENATOR NICK MINCHIN Senator for South Australia

SENATOR WARWICK PARER Senator for Queensland

SENATOR BRIAN GIBSON Senator for Tasmania

----­ SENATOR WINSTON CRANE Senator for Western Australia 96

7 October 1993

Mr Richard Gilbert Secretary Estimates Committee D SG-64 T20.1

Dear Mr Gilbert

THE SENATE CANBERRA. A.C.T.

I refer to the Committee's examination of the Industrial Relations portfolio and the sub-program which included an activity entitled 'Financial Assistance to Promote Union Rationalisation'.

Accordingly, under Standing Order 26(14) I wish to make the following reservations:

• I have grave reservations about providing grants to unions in advance of amalgamation and in advance of expenses actually having occurred.

• I urge the Government to consider merits of adopting methods used for public funding of political parties' campaign expenses, so that unions involved in an amalgamation initiative would seek reimbursement for agreed classifications of expenditure up to the agreed level.

Yours sincerely

Senator Nick Minchin Senator for South Australia

97

TIIESENATE

FSTIMATES COMMfiTEE D

Minutes of Proceedings

No.4

Thursday, 26 August 1993

1. MEETING: The Committee met in public session at 10.07am in the Main Committee Room. Senator Coates took the Chair.

2. PARTICUlARS OF PROPOSED EXPENDITURE FOR 1993-94: ARTS AND ADMINISIRATIVE SERVICES PORTFOliO. The Committee commenced its consideration of the proposed expenditure of the Arts and Administrative Services portfolio. In attendance was Senator McMullan, Minister for the Arts and Administrative Services, accompanied by the following officers:

Department of the Arts and Administrative Services: Cultural Development: Ms C. Santamaria, Convener, Australian Cultural Development Office Mr N. Smail, Assistant Secretary, Arts, Australian Cultural Development Office Mr L. Neilson, Assistant Secretary, Film International and Education, Australian

Cultural Development Office Dr K. Daniels, Assistant Secretary, Heritage and Industry Development, Australian Cultural Development Office Mr B. Linehan, Finance Officer, Australian Cultural Development Office Mr J. Heffernan, Finance Officer, Australian Cultural Development Office

Art bank: Mr L. Alway, Director, Artbank, Australian Cultural Development Office

Australian Archives: Mr G. Nicholls, Director-General Mr M. Wood, Assistant Director-General

Mr S. Perry, Acting Assistant Secretary, Information and Advertising

Australia Council: Ms D. Temby, Acting General Manager Mr G. Chan, Acting Director, Corporate Services Ms S. Gardner, Public Information Manager

Australian Film Commission: Ms C. Robinson, Chief Executive Mr R. Neale, Director, Finance and Systems

Australian Film, Television and Radio School: Mr J. O'Hara, Director Ms P. Carl, Head of Business Affairs

98

National Gallery of Australia: Mrs B. Churcher, Director Mr A. Froud, Deputy Director Ms J. Ford, Manager, Finance and Information Systems

Australian National Maritime Museum: Dr K. Fewster, Director Mr Q. Howarth, Assistant Director, Corporate Services Mr P. Pryce, Manager, Finance

National Film and Sound Archive: Mr R. Brent, Director Mr J. Logue, Senior Manager, Resource Management

National Library of Australia: Mr E. Wainwright, Deputy Director-General Mr P. Batho, Assistant Director, Financial Management

National Museum of Australia: Ms M. Coaldrake, Director

National Science and Technology Centre: Dr M. Gore, Director Ms C. Bee, Deputy Director

Government Services: Mr P. Taylor, Acting Executive General Manager Ms J. McKinnon, General Manager, Ministerial and Parliamentary Services Mr P. O'Neill, Assistant General Manager, Ministerial and Parliamentary Services Mr G. Robinson, Acting Deputy Director, Ionospheric Prediction Service

Mr R. Williams, General Manager, Australian Estate Management Mr G . Weir, Assistant General Manager, Australian Estate Management Mr P. Atkinson, Director, Financial Management, Australian Estate Management Mr I. Lynch, Assistant Director, Business Management Mr J. Kent, General Manager, Overseas Property Group Mr D. Dahlberg, Assistant General Manager, Overseas Property Group Mr A. Lyristakis, Business Manager, Overseas Property Group Mr B. Franklin, Director, Construction Management, Overseas Property Group

Mr D. Rome, General Manager, Support Services Mr R. Emerton, Assistant General Manager, IT Services Branch

Business Services: Mr R. Divett, Executive General Manager, Commercial Mr C. McAlister, Executive General Manager, Business Development Mr I. Woonton, General Manager, Asset Services Mr K. Sweeny, Assistant General Manager, Business Management Mr T. Halestrap, General Manager, Australian Construction Services

Mr H. El-Ansary, National Finance Manager, Australian Construction Services Mr C. Dahl, General Manager, Australian Government Analytical Laboratories Mr A. Law, General Manager, Australian Government Publishing Service Mr D. Drew, Assistant General Manager, Australian Government Publishing

Service

99

Ms A Thorpe, Manager, Business Services, Australian Government Publishing Service -

Ms J. Wolfe, Assistant General Manager, Client Services, Australian Government Publishing Service Mr P. Mullins, Manager, Business Development, Australian Government Publishing Service Ms C. Argall, General Manager, Australian Property Group Ms J. Lobo, Financial Controller, Australian Property Group Mr G. Bashford, General Manager, Australian Surveying and Land Information

Group Mr D. White, Assistant General Manager, Business Management, Australian Surveying and Land Information Group Mr D. Oarke, Assistant General Manager, Business Development, Australian

Surveying and Land Information Group Mr M. Coleman, General Manager, Australian Valuation Office Mr T. Groube, Director, Business Management, Australian Valuation Office Mr I. Williams, Director, Marketing/National Projects, Australian Valuation Office Mr R. Robinson, Acting General Manager, Comcar Mr G. Cattanach, Acting National Manager, Service Development, Comcar Mr D. Medley, National Manager, Finance, Comcar Mr N. Van Den Berg, National Manager, Systems and Operations, Comcar Mr B. Collins, ACT State Manager, Comcar Mr Y. Khan, Victorian State Manager, Comcar Mr D. Fink, NSW State Manager, Comcar Mr M. Wright, General Manager, DAS Distribution Mr S. Palywoda, General Manager, DASFLEET Mr C. Allen, National Leasing Manager, DASFLEET Ms J. Greenhalgh, Senior Finance Manager, DASFLEET Mr E. Hazeldine, General Manager, DAS Interiors Australia Ms G. Roper, General Manager, DAS Removals Ms L. Ooi, Director, Finance, DAS Removals Mr R. Lansdowne, Acting General Manager, Business Support Mr D. Baguley, General Manager, AOSS, Business Support Mr J. Dickenson, General Manager, DASCEM, Business Support Ms A Duffy, Acting Director, Property Rationalisation

Purchasing Australia: Mr T. Butler, General Manager, Purchasing Australia Mr S. Skrzypek, Assistant General Manager, Strategic Planning and Marketing, Purchasing Australia Mr R. Webb, Assistant General Manager, IT Contracts and Standards, Purchasing

Australia Mr L. LeFevre, Assistant General Manager, Promotions and Policy Projects, Purchasing Australia Ms J. Mills, Assistant General Manager, General Operations, Purchasing Australia

Corporate Management: Mr M. Clarke, Acting Executive General Manager, Corporate Management Mr T. Barrell, General Manager, Corporate Planning and Finance, Corporate Management Mr H. Hoefnagels, Manager, Planning and Budgets, Corporate Management Mr G. Semmens, Acting General Manager, Corporate Centre, Corporate

Management

100

Mr B. Peel, Acting General Manager, Corporate Policy and Government Relations, Corporate Management Mr H. Keen, Assistant General Manager, Awards and National Symbols, Corporate Management Mr P. Grills, Assistant General Manager, Performance Review and Audit,

Corporate Management Mr C. Jones, Director, GMAC, Corporate Management

Commonwealth Grants Commission: Mr B. Searle, Acting Secretary

Australian Electoral Commission: Mr B. Cox, Electoral Commissioner Dr R. Bell, Deputy Electoral Commissioner Mr P. Skinner, Assistant Commissioner, Corporate Services

Mr P. Dacey, Assistant Commissioner, Development and Research Mr P. Anderson, Assistant Commissioner, Information and Education Ms K. Rehn, Assistant Commissioner, Industrial Elections Mr B. Fahy, Director, Resources Management

Ms M. Neilson, Assistant Director, Resources Management Mr T. Pickering, Director, Enrolment Ms L. Gladwin, Director, Funding and Disclosure Mr A Wall, Director, Internal Audit

Mr A Brideson, Director, Information

Department of Finance: Mr B. Hackett, Acting Chief Finance Officer, Arts and Construction Section, Transport and Government Division Ms S. Williams, Finance Officer, Arts and Construction Section, Transport and

Government Division Mr R. Kiek, Graduate Assistant, Arts and Construction Section, Transport and Government Division Ms M. Messner, Chief Finance Officer, Consumer Service Business Section,

Transport and Government Division

The Chair called on the following programs of proposed expenditure for consideration by the Committee:

Program 1: Cultural Development Program 2: Government Services Program 3: Business Services - subprograms 3.1 , 3.2, 3.4, 3.5, 3.9-3.14.

The Committee ordered the incorporation in the Hansard transcript of evidence questions on notice from Senators Campbell, Kemp, Patterson and Minchin.

3. PRN ATE MEETING: The Committee adjourned its consideration of the proposed expenditure for the Arts and Administrative Services portfolio at 10.26am for a brief private meeting. It resumed its public hearing at 10.27am.

4. ADJOURNMENT: The Committee adjourned its consideration of the proposed expenditure for the Arts and Administrative Services portfolio at 11.58pm.

101

5. ATTENDANCE: Senators Coates, Colston, Gibson, Minchin, Murphy and Parer. Senators Baume, Campbell, Hill, Kemp and Patterson also attended.

OONFIRMED:

Chair

102

'IHESENATE

FSTIMATES COMMfiTEE D

Minutes of Proceedings

No.5

Thursday, 26 August 1993

1. MEETING: The Committee met in private session at 10.26am outside the Main Committee Room. Senator Coates took the Chair.

2 MoTION: Senator Parer proposed the motion that the Committee adjourn until Thursday 2 September to allow for the notes to the unaudited DAS accounts to be provided. The motion was lost.

3. ADJOURNMENT: The Committee adjourned at 10.27am.

4. ATfENDANCE: Senators Coates, Colston, Gibson, Minchin, Murphy and Parer.

CONFIRMED:

John Coates Chair

103

TilE SENATE

FSTIMATFS COMMITTEE D

Minutes of Proceedings

No.6

Wednesday, 1 September 1993

1. MEETING: The Committee met in public session at 8.05pm in Senate Committee Room 2Sl. Senator Coates took the Chair.

2. P ARTICUI.ARS OF PROPOSED EXPENDITURE FOR 1993-94: TREASURER'S PORTFOUO. The Committee commenced its consideration of the proposed expenditure of the Treasurer's portfolio.

[n attendance was Senator McMullan, Minister for the Arts and Administrative Services, representing the Treasurer, accompanied by the following officers:

Department of the Treasury: Mr E. Evans, Secretary Mr N. Hyden, Acting Deputy Secretary, Financial Mr G. Potts, Acting Deputy Secretary, Economic Mr B. Cassidy, Acting Deputy Secretary, Structural and Taxation Mr G. Smith, First Assistant Secretary, Financial Institutions Division Mr R. Shogren, First Assistant Secretary, Fiscal Policy Division Mr A. Hinton, First Assistant Secretary, Investment and Debt Division Dr P. Boxall, Acting First Assistant Secretary, Taxation Policy Division Mr M. Callaghan, Acting First Assistant Secretary, International Economy Division Mr A. Sinodinos, Acting First Assistant Secretary, Economic Division Mr D. Parker, Acting Assistant Secretary, Economic Conditions Branch, Economic

Division Dr B. Gray, Senior Adviser, Economic Division Mr T. O'Brien, Assistant Secretary, International and Quantitative Analysis Branch, Taxation Policy Division Mr J. Jepsen, Assistant Secretary, Personal and Indirect Taxation Branch Ms J. Harris, Acting Assistant Secretary, Finance and Taxation Review Branch,

Taxation Policy Division Mr J. Dick, Assistant Secretary, Competition Policy Branch, Structural Policy Division Mr J. Wright, Assistant Secretary, State and Local Government Finances Branch,

Fiscal Policy Division Dr J. Horne, Assistant Secretary, Budget Policy Branch, Fiscal Policy Division Mr W. Mayo, Assistant Secretary, Public Sector Policy Branch, Fiscal Policy Division Mr P. Gallagher, Director, Retirement Income Modelling Unit Ms M. Wilson, Acting Executive Director, DAA Secretariat .\1r R. Judd, Acting Director, DAA Secretariat Mr A. Gray, Director, DAA Secretariat .\1s K. Spindler, Annual Report Coordinator .\1r G. Bowditch, Director, State Finances Section, Fiscal Policy Division \1r M. Kooymans, Director, Loan Council Section, Fiscal Policy Division

104

Ms J. Aked, Director, Accounting and Finance Directorate Ms R. Hindley, Director, Human Resource· Development Directorate Mr M. Taylor, Manager, LAN Support, IT Services Directorate Mr A Alexander, Assistant Director, Human Resource Development Directorate

Mr P. Mcinerney, Assistant Director, Accounting and Finance Directorate

Prices Surveillance Authority: Mr T. Lee, Director of Surveillance Mr J. Carin, Corporate Services Manager

Royal Australian Mint: Mr I. Hamilton, Acting Manager, Finance and Supply

Department of Finance: Mr E. Wojcik, Chief Finance Officer

The Chair called on the following program of proposed expenditure for consideration by the Committee:

Program 1: Economic Policy

The Committee ordered the incorporation in the Hansard transcript of evidence questions on notice from Senator Harradine.

3. ADJOURNMENT: The Committee adjourned its consideration of the proposed expenditure of the Treasurer's portfolio at midnight.

4. ATfENDANCE: Senators Coates, Bishop, Colston, Gibson, Murphy and Parer. Senators Boswell, Kemp, Harradine, Short and Watson also attended.

OONFIRMED:

John Coates Chair

10')

FSI1MATES COMMfiTEE D

Minutes of Proceedings

No.7

Thursday, 2 September 1993

1. MEETING: The Committee met in public session at 2.05pm in the Main Committee Room. Senator Coates took the Chair.

2. PARTICUlARS OF PROPOSED EXPENDITURE FOR 1993-94: TREASURER'S PORTFOUO. The Committee resumed its consideration of the proposed expenditure of the Treasurer's portfolio.

In attendance was Senator McMullan, Minister for the Arts and Administrative Services, representing the Treasurer, accompanied by the following officers:

Australian Bureau of Statistics: Dr R. Madden, Acting Australian Statistician, Co-ordination and Management Division Mr F. von Reibnitz, First Assistant Statistician Mr H. Kriegel, Assistant Statistician, Resource Management Branch Social and

Labour Division Mr G. Cocking, Acting First Assistant Statistician, Computer Services Division Mr B. Pink, First Assistant Statistician Mr B. Fitzpatrick, Assistant Statistician, Technology Research, Economic Accounts

Division Mr R. Edwards, First Assistant Statistician

Australian Taxation Office: Mr B. Nolan, Second Commissioner Mr R. Matthews, First Assistant Commissioner, Revenue Collection Ms P. Lane, Manager, Debt Collection Mr B. Stacey, Assistant Commissioner, Taxpayer Assistl!nce Mr R. Mulligan, Manager, Taxpayer Assistance Mr A. Verick, Assistant Commissioner, Appeals and Review Mr V. Mitchell, First Assistant Commissioner, Taxpayer Audit Mr J. Growder, First Assistant Commissioner, Information Technology Services

Group Mr J. Landau, First Assistant Commissioner, Business Tax Mr M. Monaghan, Assistant Commissioner, Superannuation Guarantee Team Mr V. Tetley, Assistant Commissioner, Business Tax Mr C. Walker, Manager, Business Tax Legislative Service Mr R. Foster, Manager, Business Tax Ms C. Field, Project Manager, SGC-RBL Mr G. Mills, Chief Tax Counsel Mr J. Crotty, First Assistant Commissioner, Legislative Services Mr J. Killaly, Assistant Commissioner, International Tax Branch Mr C. Hood, Assistant Commissioner, Rulings Unit Mr G. Back, Assistant Commissioner, Personal Tax Branch Mr R. McNicol, Assistant Commissioner, Business Tax Branch Mr G. Miller, Executive Officer, Legislative Services Personal Tax

106

Mr E. Killesteyn, Senior Assistant Commissioner, Corporate Services Mr C. Mobbs, Assistant Commissioner, Corporate Management Support Mr J. Body, Manager, Corporate Management Support Mr P. Duffus, Assistant Commissioner, People and Structures

Mr R. O'Connell, Assistant Commissioner, Decentralisation and Accommodation Mr D. Lewis, First Assistant Commissioner, Child Support Agency Mr R. Johnston, Director, Child Support Systems

Industry Commission: Mr R. Kerr, First Assistant Commissioner, Inquiry Division Mr H. Tys, Manager, Re-location Task Force Mr E. Beans, Director, Finance and Services Section

Trade Practices Commission: Dr J." Tamblyn, Acting General Manager Ms G. Barnwell, Senior Assistant Commissioner, Corporate Planning Resources Mr Roger Leggott, Director, Management Services

Department of Finance Mr E. Wojcik, Acting Assistant Secretary, Public Administration and Accounting Development Branch

The Chair called on the following programs of proposed expenditure for consideration by the Committee:

Program 5: Australian Bureau of Statistics Program 6: Australian Taxation Office Program 7: Industry Commission Program 8: Trade Practices Commission.

The Committee ordered the incorporation in the Hansard transcript of evidence questions on notice from Senator Harradine.

The Committee concluded its consideration of the proposed expenditure for Programs 5-8 of the Treasurer's portfolio.

3. PARTICULARS OF PROPOSED EXPENDITURE FOR 199>-94: FINANCE PORTFOUO. The Committee commenced its consideration of the proposed additional expenditure of the Finance portfolio.

In attendance was Senator McMullan, Minister for the Arts and Administrative Services, representing the Minister for Finance, accompanied by the following officers:

Department of Finance: Mr E. Thorn, Deputy Secretary Mr H. Heinrich, Chairman, Task Force on Asset Sales A Mr R. Smith, Chairman, Task Force on Asset Sales B

Mr I. McPhee, First Assistant Secretary, Financial Management Division Mr P. Saunders, First Assistant Secretary, Transport and Government Divisio n Mr M. Crompton, Principal Adviser, General Expenditure Division Mr G. Feeney, Deputy Chairman, Task Force on Asset Sales A Ms 0. Fijalkowski, Assistant Secretary, Information and Technology Branch

107

Mr J. Galloway, Assistant Secretary, Resource Policies and Management Branch Mr M. Kennedy, Assistant Secretary, FinanCial Administdration Advisory Branch Mr D. Lindsay, Assistant Secretary, Commonwealth Superannuation Branch Mr G. Millar, Assistant Secretary, Retirement Benefits Branch Mr R. Pegler, Assistant Secretary, Primary Industries and Resource Branch Mr P. Richardson, Acting Assistant Secretary, Transport and Communications

Branch Mr I. McRae, Director, Social Security Division Mr S. Watson, Director, Resource Policies and Management Branch Ms A Whitehead, Director, Information Technology and Systems Group Mr T. Wilson, Director, Financial Management Division

Retirement Benefits Office: Mr J. McCullagh, Assistant Commissioner, Business Management Mr R. Jackson, Director, Finance and Accounts

Australian National Audit Office: Mr J. Taylor, Auditor-General Mr J. Meert, Executive Director, Executive Support Branch Mr W. Cochrane, Acting National Business Manager, Performance Audit

The Chair called on the following program of proposed expenditure for consideration by the Committee:

Program 1: Budget Development and Management Program 2: Resource Management Framework Program 4: Retirement Benefits Program 5: Specific Payments and Receipts Program 6: Asset Sales Program 8: Australian National Audit Office.

The Committee ordered the incorporation in the Hansard transcript of evidence questions on notice from Senator Parer.

The Committee concluded its consideration of the proposed expenditure of the Finance portfolio. -

4. ADJOURNMENT: The Committee adjourned at 11.27pm.

5. A1TENDANCE: Senators Coates, Bishop, Gibson, Murphy, Parer and Sherry. Senators Harradine, Hill and Watson also attended.

mNFIRMED:

Chair

l OR

ESTIMATES COMMfiTEE D

Minutes of Proceedings

No.8

Friday, 24 September 1993

1. MEEfiNG: The Committee met in public session at 11.03am in Senate Committee Room 2Sl. Senator Coates took the Chair.

2. PARTICUlARS OF PROPOSED EXPENDITURE FOR 1993-94: ARTS AND ADMINISfRATIVE SERVICES PORTFOUO. The Committee resumed its consideration of the proposed expenditure of the Arts and Administrative Services portfolio.

In attendance was Senator McMullan, Minister for the Arts and Administrative Services, accompanied by the following officers:

Department of the Arts and Administrative Services Mr R. Divett, Executive General Manager Commercial, Business Services Mr C. McAlister, Executive General Manager Business Development, Business Services Dr C. Dahl, General Manager, Australian Government Analytical Laboratories

Mr G. Bashford, General Manager, Australian Surveying and Land Information Group Mr D. Clarke, Assistant General Manager Business Development, Australian Surveying and Land Information Group Mr D. Hobson, Manager, Corporate Support, Australian Surveying and Land

Information Group Mr M. Coleman, General Manager, Australian Valuation Office Mr T. Groube, Director Business Management, Australian Valuation Office Mr I. Williams, Director Marketing/National Projects, Australian Valuation Office Mr T. Robinson, Acting General Manager, Comcar Mr G. Cattanach, Acting National Manager Service Development, Comcar Mr D. Medley, National Manager Finance, Comcar Mr N. Van Den Berg, National Manager Systems and Operations, Comcar Mr Y. Khan, Victorian State Manager, Comcar

Mr D. Fink, NSW State Manager, Comcar Mr T. Butler, General Manager, Purchasing Australia Mr S. Skrzypek, Assistant General Manager, Strategic Planning and Marketing, Purchasing Australia Mr R. Webb, Assistant General Manager, IT Contracts and Standards, Purchasing

Australia Mr L. LeFevre, Assistant General Manager, Promotions and Policy Projects, Purchasing Australia Ms J. Mills, Assistant General Manager, General Operations, Purchasing Australia

Mr L. Suur, Acting Assistant Secretary, Awards and National Symbols Branch Mr J. Mellors, Executive General Manager Corporate, Corporate Management Mr P. Taylor, Acting Executive General Manager, Government Services,

Corporate Management

Mr M. Oarke, General Manager Corporate Policy and Government Relations, Corporate Management Mr R. Emerton, Assistant General Manager, IT Services, Corporate Management Mr T. Barrell, General Manager, Corporate Planning and Finance, Corporate

Management Mr H. Hoefnagels, Manager, Planning and Budgets, Corporate Management Mr G. Semmens, Acting General Manager, Corporate Centre, Corporate Management Mr B. Peel, Assistant General Manager, Corporate Policy Branch, Corporate

Management Mr P. Grills, Assistant General Manager, Performance Review and Audit, Corporate Management Mr C. Jones, Director, Genetic Manipulation Advisory Council Secretariat,

Corporate Management Mr R. Lansdowne, Acting General Manager, Customer Services and Marketing, Corporate Management

Commonwealth Grants Commission: Mr B. Searle, Acting Secretary Mr M. Nicholas, Assistant Secretary

Australian Electoral Commission: Dr R. Bell, Deputy Electoral Commissioner Mr B. Nugent, Acting Deputy Electoral Commissioner Mr P. Dacey, Assistant Commissioner, Development and Research Mr T. Wilson, Assistant Commissioner, Information and Education Ms A. Smith, Acting Assistant Commissioner, Corporate Services Mr B. Fahy, Director, Resources Management Ms L. Gladwin, Director, Funding and Disclosure Mr A. Wall, Director, Internal Audit

Department of Finance: Mr B. Hackett, Acting Chief Finance Officer, Arts and Construction Section, Ms M. Messner, Chief Finance Officer, Consumer Service Business Section, Transport and Government Division

The Chair called on the following programs of proposed expenditure for consideration by the Committee:

Program 3: Business Services - sub-programs 3.3, 3.6-3.8 Program 4: Purchasing Australia Program 5: Corporate Management Program 6: Commonwealth Grants Commission Program 7: Australian Electoral Commission.

The Committee ordered the incorporation in the Hansard transcript of evidence of a question on notice from Senator Campbell.

The Committee concluded its consideration of the proposed expenditure of the Arts and Administrative Services portfolio.

llO

3. ADJOURNMENT: The Committee adjourned at 5.21pm.

4. A1TENDANCE: Senators Coates, Colston, Gibson, Minchin, Murphy and Parer. Senators Bishop and Campbell also attended.

OONFIRMED:

{;John Coates Chair

111

FSI1MATES COMMITfEE D

Minutes of Proceedings

No.9

Friday, 1 October 1993

1. MEETING: The Committee met in public session at 9.07am in Senate Committee Room 2S1. Senator Coates took the Chair.

2. PARTICUlARS OF PROPOSED EXPENDITURE FOR TRFASURER'S PORTFOUO. The Committee resumed its consideration of the proposed expenditure of the Treasurer's portfolio.

In attendance was Senator McMullan, Minister for the Arts and Administrative Services, accompanied by the following officers:

Department of the Treasury: Dr A Preston, Deputy Secretary, Structural and Taxation Mr G. Smith, Acting Deputy Secretary, Financial Mr R. Shogren, First Assistant Secretary, Fiscal Policy Division Mr A Hinton, First Assistant Secretary, Investment and Debt Division Mr B. Cassidy, First Assistant Secretary, Structural Policy Division Mr M. Callaghan, Acting First Assistant Secretary, International Economy Division

Division Mr W. Mayo, Assistant Secretary, Public Sector Policy Branch, Fiscal Policy Division Mr M. Kooymans, Acting Assistant Secretary, State and Local Government

Finances Branch, Fiscal Policy Division MrS. Blumer, Acting Assistant Secretary, International Finance and Development Branch, International Economy Division Ms M. Wilson, Acting Executive Director, DAA Secretariat Mr R. Judd, Acting Director, DAA Secretariat Mr A Gray, Director, DAA Secretariat Ms K. Spindler, Annual Report Coordinator Mr G. Bowditch, Director, State Finances Section, Fiscal Policy Division Ms J. Aked, Director, Accounting and Finance Directorate Ms R. Bindley, Director, Human Resource Development Directorate Mr C. Waldron, Director, IT Services Directorate Mr A Alexander, Assistant Director, Human Resource Development Directorate Mr P. Mcinerney, Assistant Director, Accounting and Finance Directorate

Royal Australian Mint: Mr A Willis, Assistant Financial Manager

The Chair called on the following programs and sub-programs of proposed expenditure for consideration by the Committee:

Sub-program 1.5: Investment Sub-program 1.6: International Economy Program 2: Financial System Program 3: Payments to or for Other Levels of Government

112

Program 4: Corporate Services - Departmental.

The Committee concluded its consideration of the proposed expenditure for the Treasurer's portfolio.

6. ADJOURNMENT: The Committee adjourned at 9.50am.

1. ATIENDANCE: Senators Coates, Colston, Murphy and Parer. Senator Crane also attended.

OONFIRMED:

Chair

FSI1MATFS COMMITfEE D

Minutes of Proceedings

No.10

Wednesday, 6 October 1993

1. MEETING: The Committee met in private session at 2.54pm in the Government Advisers' Lobby. Senator Coates took the Chair.

2. MINUIFS: The Committee confirmed the minutes of meetings nos. 4-9 inclusive, held on 26 August, 26 August, 1 September, 2 September, 24 September and 1 October 1993, respectively.

3. REPORT: The Committee approved the Chair's draft report, subject to the following: the checking of the accuracy of the sentence concerning the industrial dispute at the Australian National Audit Office; the addition of material relating to two loss-making DAS businesses; and, the addition of material resulting from the examination of the estimates of the Industrial Relations portfolio.

4. ADJOURNMENT: The Committee adjourned at 2.59pm.

5. ATTENDANCE: Senators Coates, Colston, Gibson, Minchin, Murphy and Parer.

CONFIRMED:

John Coates Chair

114

ESfiMATES COMMfiTEE D

Minutes of Proceedings

No.ll

Wednesday, 6 October 1993

1. MEETING: The Committee met in public session at 8.05pm in Senate Committee Room 2Sl. Senator Coates took the Chair.

2. P ARTICUIARS OF PROPOSED EXPENDITURE FOR 1993-94: INDUSTRIAL RElATIONS PORTFOUO. The Committee commenced its consideration of the proposed expenditure of the Industrial Relations portfolio. In attendance representing the Minister for Industrial Relations were, in tum, Senator Crowley, Senator McMullan and Senator Schacht, accompanied by the

following officers:

Department of Industrial Relations: Mr Malcolm Gray, Acting Secretary Mr Brendan Preiss, Deputy Secretary Mr Edward Cole, Principal Adviser, Policy Development and Planning Mr Rex Hoy, First Assistant Secretary, Private Sector Mr Derren Gillespie, Assistant Secretary, Infrastructure & Manufacturing Branch

Mr Ian Canney, Assistant Secretary, Metals & Trade Recognition Branch Mr Trevor Cook, Acting Assistant Secretary, Best Practice & Resources Branch Mr Graham Burke, Assistant Secretary, Workplace Reform & Services Branch

Ms Gail Finlay, Assistant Secretary, Awards Management Branch Mr Barry Leahy, Acting First Assistant Secretary, Australian Public Service Remuneration, Structures and Conditions Ms Dianne Hawgood, Acting Principal Adviser, Australian Public Service

Remuneration, Structures and Conditions Mr Mark Jasprizza, Acting Assistant Secretary, Remuneration Policy and Structure Ms Meryl Stanton, First Assistant Secretary, Government Authorities and Defence Mr Tom Kenna, Acting Secretary, Remuneration Tribunals Mr Jim Dollimore, Assistant Secretary, Parliament & Public Affairs Branch

Mr David McDonald, Assistant Secretary, International Services Ms Kathy Lee, Assistant Secretary, Legal Services Mr Simon Ash, Acting Assistant Secretary, Financial & Information Management Branch Mr Gerry Brine, Director, Financial Management Section

Affirmative Action Agency: Ms Margaret Hill, Deputy Director Ms Cindy Marsh, Administrative Officer

Australian Industrial Relations Commission and Australian Industrial Registry. Ms Barbara Deegan, Industrial Registrar Mr John Leyden, Director, Administration Mr Michael Kelly, Executive Director, Corporate Services

115

Commission for the Safety, Rehabilitation and Compensation of Commonwealth Employees (COMCARE) Ms Jenni Neary, Chief Executive Officer Mr Robert Knapp, Deputy Chief Executive Officer Ms Deborah Todd, General Manager, Policy Development Mr Gary Thomas, General Manager, Resource Management (COMCARE)

National Occupational Health and Safety Commission: Ms Helen L'Orange, General Manager Mr Jeremy Nolan-Neylan, Director, Corporate Services Mr Warwick Pierce, Director, Chemical Assessments Mr Fred Maestrelli, Manager, Finance and Services

Construction Industry Development Agency. Mr Michael Johnston, Ng Chief Executive Officer

Trade Union Training Authority. Ms Kate Wood, Executive Officer Mr Graham Russell, Commercial Manager

Department of Finance: Mr Steven Somlyay, Director, Aboriginals and General Branch Ms Julie Pettit, Assistant Director, Aboriginals and General Branch

The Chair called on the following programs of proposed additional expenditure for consideration by the Committee:

Program 1:

Program 2: Program 3:

Industrial Relations Policy Development, Workplace Reform and Best Practice Public Sector Workplace Development and Services Corporate Direction and Support.

The Committee ordered the incorporation in the Hansard transcript of evidence questions on notice regarding sub-program 3.1 from Senator Chapman.

The Committee concluded its consideration of the proposed additional expenditure for the Industrial Relations portfolio.

3. ADJOURNMENT: The Committee adjourned at 11.04pm.

4. ATTENDANCE: Senators Coates, Colston, Crane, Minchin, Murphy and Parer. Senators Chapman and Margetts also attended.

OONFIRMED:

Chair

TilE SENATE

FSilMATF.S COMMITTEE D

Minutes of Proceedings

No.12

Thursday 7 October 1993

1. MEETING: The Committee met in deliberative session at 6.32pm in the Government Advisers' Lobby. Senator Coates took the chair.

2 MINUTES: The Committee confirmed the minutes of meetings nos. 10-11, held on 6 October 1993.

3. REPORT: The additional paragraphs to the Chair's draft report, previously circulated to members, were adopted as part of the report of the Committee.

4. SUPPlEMENTARY HEARING: The Committee agreed to the following dates:

Tuesday 26 October 1993 - provision of responses by portfolios

Wednesday 3 November 1993 - notification to Secretariat of matters to be raised at supplementary hearing

Tuesday 9 November 1993 - supplementary hearing.

5. ADJOURNMENT: The Committee adjourned at 6.34pm.

6.. A'ITENDANCE: Senators Coates, Crane, Colston, Gibson and Murphy.

Apologies were received from Senators Bishop, Minchin and Parer.

CERTIFIED CORRECT:

..

Chair

117

FSTIMATES OOMMITfEE D HANSARD INDEX

Thursday, 26 August 1993

Arts and Administrative Services Portfolio

General

Chair's opening statement Attenders Minister's opening statement Order of programs Adjournment of committee Increase in funding

Program 1 - Cultural Development

Subprogram 1.1 -Australian Cultural Development Office

Film Australia Film Finance Corporation Art bank Financial assistance to the Australian Opera Children's Development Foundation Funding to states Foundation for Australian Cultural Development Film Finance Corporation Australian Ballet School and NIDA Legal settlement Australian Film, Television and Radio School Redevelopment of Circular Quay

Subprogram 1.4- Australia Council

Transfer of funds Reduction in funding Grants to trade unions 2000 Olympics Performing Arts Board Visual Arts and Crafts Board Australian Chamber Orchestra Grants to writers from non-English speaking background

Efficiency of Australia Council

Subprogram 1.5 - Australian F1im Commission

Staffing Reduced revenue Marketing activities

118

Page

Dl D2 D5 D6 D6 DB

DlO Dll D12 D13 D15 D16 D18

D19 D20 D21 D22

D22 D23 D24 D25 D25 D26 D28 D29 D31

D33 D33 D34

Information and Advertising

Advertising of Disability Reform Package Corporate Impacts

Subprogram 1.6 Australian Film, Television and Radio School

Decreases in revenue Employment rates International promotions

Subprogram 1.8 - Australian National Maritime Museum

Number ofvisitors Reduction in staff years Attendance by schools Restaurant lease

Subprogram 1. 7- National Gallery of Australia

Major exhibitions Outreach program Indemnities Capital works

Vandalism

Subprogram 1.9 - National Film and Sound Archive

Minor capital works Preservation Increase in attendances

Subprogram 1.10- National Library of Australia

National portrait gallery Increase in running costs New warehouse at ANU

Subprogram 1.11- National Museum of Australia

Old Parliament House Increases in staffing Cataloguing Outreach programs

Marketing

Subprogram 1.12 - National Science and Technology Centre

Cost recovery Exhibitions

11 9

D34 D36

D55 D55 D56

D58 D60 D60 D61

D62 D64 D65 D65 D66

D67 D67 D70

D72 D73 D73

D74 D74 D76 D76 D77

D78 D80

Program 2 - Government Services

Subprogram 2.1 -Ministerial and Parliamentary Services

ALP members' staff Telephone companies Computerised electoral role data National prices network

Subprogram 2.3- Australian Estate Management

Government property Increases in staffing Capital works Occupancy rates for Commonwealth properties Commonwealth land

Return rates

Subprogram 2.4 - Overseas Property Group

Leasing of furniture in the United States Control of overseas properties Building maintenance

Subprogram 2.5- Support Services

Advertising Customer service National Media Liaison Service

Program 3 - Business Services

Subprogram 3.1 - Asset Services

Jaymel airconditioning Assets register Excess staff Profit and loss statement OASFLEET Competition between government services and private enterprise

Subprogram 3.13- Business Support

Loan facility

Subprogram 3.2- Australian Construction Services

Losses Staff costs Assets Auditor-General's report

120

081 083 085 086

088 089 090 092 094 096

097 098 099

0100 0101 0102

0105 0108 0108 0109 0110 0111

0113

0115 0115 0116 0117

Subprogram 3.4 - Australian Government Publishing Service

Hobart Commonwealth Government Bookshop Prices Surveillance Authority report Sales per employee Administrative costs

Subprogram 3.5- Australian PropenyGroup

Leasing arrangements Cash incentive

Subprogram 3.9 - DAS distn"bution

Losses Competition in private sector Staff reductions

Subprogram 3.11 - DAS Interiors Australia

Consultancies

Subprogram 3.12 - DAS Removals

Storage of goods of former Prime Minister Hawke

Subprogram 3.14- Property Rationalisation

Selling of properties

Subprogram 3.10- DASFLEET

Improved profitability Australian Capital Auctioneers Untying of clients

Questions on Notice by Senators Campbell, Kemp and Minchin

121

D118 D119 D120 Dl21

D122 D123

D125 D126 D126

D127

D128

D128

D129 D130 Dl31

D133

Wednesday, 1 September 1993

Department of the Treasury

General

Attenders Minister's opening statement

Program 1- Economic Policy

Subprogram 1.1 - Macroeconomic

Costs of variations to the Budget Petroleum excise Prismod model Bracket creep Price elasticity of petrol Impact on particular industries of policy measures The use of quintiles in modelling results Statax model

Impact of indirect tax rises Budget deficit Budget growth forecasts Employment trends

Subprogram 1.2(a)- Structural policy

Structural reforms Committee to promote the development of northern Australia FitzGerald report on national savings Interest rates

Subprogram 1.3 - Debt management

Increases in public sector debt Foreign debt Internal controls of budget sector debt

Subprogram 1.4 - Taxation policy

Simplification of the tax system Competitiveness of Australian business tax regime Increase in salary estimate Rebate to low income earners Changes to the tax system Complexity of the taxation system

Questions on Notice by Senator Harradine

D141 D142

D142 D144 D144 D145 D153 D154 D155 D159 0162 D164 D164 D167

D170 D171 D171 0173

D173 0174 D177

D178 D179 D181 D181 D182 D183

D184

Thursday, 2 September 1993

Treasury Portfolio

General

Attenders Chair's opening statement

Program 5 - Australian Bureau of Statistics

Protection of commercially sensitive information Sale of statistical products Availability of publications to libraries Provision of publications to members of parli ament

Program 6- Tuation Administration

Subprogram 6.1- Income Tax

Taxation (Deficit Reduction) Bill 1993 Increase in salary costs Rewriti ng of tax act Anti-avoidance provisions of taxation law Fringe benefits tax on car parking Taxation advice to community Statistical information in draft annual report

Outstanding debts Mr Charles Wright Accrual accounting Superannuation Guarantee Levy

Education funds Capital gains tax on compensation payments Debts written off Raids on prominent fund-raising sportspersons

Letters of final notice

Subprogram 6.3 - Corporate Support

Performance pay Tabling of a document - Chair's ruling

Program 7 - Industry Commission

Increases in administration costs

123

0 141 0191

0191 0194 0195 0196

0 197 0 205 0205 0 209 0 210 0212 0214 0 215

0 217 0222 0 223 0229

0 230 0235 0235 0236

0237 0239

0240

Program 8 - Trade Practices Commission

Subprogram 8.1- Compliance with the Act

Increases in staff costs Links with Hilmer committee Non-appearance of senior officers Effect of changing portfolios

List of attenders

Department of Fmance

Finance Portfolio

Program 1 - Budget Development and Management

Subprogram 1.1 - Budget Coordination

Position on cuts to government expenditure Mabo compensation Midford Paramount compensation - Coopers & Lybrand report

Subprogram 1.2- Estimates and Evaluation

Program of reviews Australian National Audit Office lease of Centenary House Finance directive re presentation of efficiency gains in PPSs

Program 2 - Resource Management Framework

Subprogram 2.5- Regional Training and Advisory Services

Increases in staffing costs

Program 4 - Retirement Benefits

Subprogram 4.1 -Retirement Benefits Office

Participation of superannuation funds in surveys

Subprogram 4.3 - Other Superannuation Schemes

Superannuation option on performance pay

Program 5 - Specific Payments and Receipts Activities

Subprogram 5.1 -Administration of Act of Grace Payments and Waivers

Voyager appropriations

124

0240 0241 0242 0242

0242

0243 0244 0244 0245

0249 0250 0254

0255

0255

0257

0257

Subprogram 5.2 - Natural Disaster Relief- Arrangements and Other Payments Scheme

Drought

Program 6 - Asset Sales

Subprogram 6.1 - Commonwealth Task Force on Asset Sales A Subprogram 6.2 - Commonwealth Task Force on Asset Sales B

Qantas float Sale of ANL Further sale of Commonwealth Bank shares Housing Loans Insurance Corporation Sale of Snowy Mountains Engineering Corporation

Program 8 - Australian National Audit Office

Subprogram 8.1- Financial Statement Audits

Independence of Australian National Audit Office Staffing Internal audit committees Targets

Recruitment of new staff Centenary House Fraud

Questions on notice from Senators Harradine and Parer

Friday, 24 September 1993

Arts and Administrative Services Portfolio

List of attenders Chair's opening statement

Program 3 - Business Services

Subprogram 3.3 - Australian Government Analytical Laboratories

Continued funding of loss Costs per employee English classes for employees

Subprogram 3.6- Australian Surveying and Land Information Group

AUSLIG leases at Fern Hill Park Losses Duplication of work

125

0259

0260 0262 0262 0264 0264

0264 0265 0266 0267 0268

0272 0279

0281

0283 0284

0284 0286 D286

0287 0288 0290

Subprogram 3. 7 - Australian Valuation Office

Centenary House Increase in income - fees

Subprogram 3.8 - Comcar

Comcar computer system Downsizing of Comcar Targets for 1993-94 Increase in costs per employee

Redundancy packages Superannuation Independent contractors

Program 4 - Purchasing Australia

Program to encourage purchase of Australian, New Zealand goods Increase in salary, administrative, costs Government purchasing index Use of the Australian coat of arms in advertising Systems information technology Credit cards

Program 5 - Corporate Management

Women's desk officer Property adjustment program Increase in salary and administrative costs Liquidation of ACT auctioneering firm Briefing paper on new flag Mr Grant Nihill's contract Mr Henry Bosch's removal from the DAS board Grants-in-aid Affirmative Action Agency references to non-complying companies Multifunction polis expenditure Payment of legal fees to Attorney-General's Department Property adjustment program Change from divisions to businesses Legal advice on disagreements between businesses

Program 6 - Commonwealth Grants Commission

Funding of local government and fiscal equalisation

126

D290 D308

D310, D314 D311 D312 D313 D315 D3 15 D316

D317 D320 D320 D321 D321 D322

D323 D323 D324 D325 D328 D328 D330 D331 D332 D333 D334 D336 D338 D342

D345

Program 7 - Aust:ralian Electoral Commission

Disclosure by candidates of gifts in kind Disclosure of use of campaign material Overseas electoral services ATSIC elections

Post election reviews - study of return-to-sender mail Appointment of public relations consultants Soundex name-matching system

Questions on notice by Senator Campbell

Friday, 1 October 1993

Department of the Treasury

List of attenders Chair's opening statement

Program 1 - Economic Policy

Subprogram 1.5 - Investment

Monitoring of investments in Australian economy Development Allowance Authority

Program 2 - Fmancial System

Subprogram 2.1 - Financial sector policy and administration

Insurance and Superannuation Commission

Subprogram 2.2 - Currency- Royal Australian Mint

Five dollar note

Program 4 - Corporate Services - Departmental

Subprogram 4.1- Executive Services

Advice to government

Subprogram 4.2- Support Services

Credit cards

127

D346 D347 0349 0350 0351

0352 0352

0353

0355 0356

0356 0357

0360

0 362

0362

D363

ESTIMATES COMMITTEE D

REPORT ON

SUPPLEMENTARY MEETING

November 1993

129

Chair.

Members:

Secretary:

Research:

MEMBERS OF TilE COMMTITEE

Senator John Coates (Tasmania)

Senator Bronwyn Bishop (New South Wales)* Senator Mal Colston (Queensland)** Senator Winston Crane (Western Australia)*** Senator Shayne Murphy (Tasmania) Senator Warwick Parer (Queensland)

*

**

***

Senator Nick Minchin (South Australia) replaced Senator Bishop for the consideration of the estimates of the Arts and Administrative Services portfolio and the Industrial Relations portfolio.

Senator Kim Carr (Victoria) replaced Senator Colston for the period 7-14 November 1993.

Senator Brian Gibson (Tasmania) replaced Senator Crane for the consideration of the estimates of the Arts and Administrative Services portfolio, the Treasurer's portfolio and the Finance portfolio.

Richard Gilbert

Barbara Allan Liz Carter

130

CONfENTS

Page

Committee members iii

Report 1

Minority report: Centenary House 11

Minority report: Office of Government Information and Advertising 21

Schedule of questions taken on notice 25

Minutes of proceedings 49

131

FSTIMATES COMMfiTEE D

REPORT TO TIIE SENATE ON SUPPLEMENTARY MEETING

1. Estimates Committee D presents its report to the Senate on matters arising from the conduct of a supplementary meeting by the Committee.

Introduction

2. On 19 August 1993 the Senate referred to the Committee, for examination and report, the Particulars of Proposed Expenditure for the Service of the Year Ending on 30 June 1994 and the Particulars of Certain Proposed Expenditure for the Year Ending 30 June 1994 for the following portfolios:

• Arts and Administrative Services

• Treasury

• Finance

• Industrial Relations

3. The Committee considered these estimates, together with the Program Performance Statements, and received evidence from the Minister for the Arts and Administrative Services, Senator McMullan, and officers of the portfolios concerned in public sessi on and tabled its report on 7 October 1993.

4. The Committee presented the following volumes of written explanations provid ed by departments consequent to its first round of hearings:

• 27 October (Vols 1-3 and supplementary information); • 28 October (Volume 4); and

• 16 November 1993 (Volumes 5-7).

5. In its report, in accordance with the Senate's order of 6 May 1993 providing for the conduct of supplementary meetings by estimates committees, the Committee announ ced that it had set Tuesday, 26 October 1993 as the day for submission to it of written answers or additional information relating to the proposed expenditure under examination.

6. The Committee's report set Tuesday, 9 November 1993 as the day for its supp lementary meeting and Wednesday, 3 November 1993 as the last day for Senators to advise the secretariat of matters they wished to raise at this meeting. Accordingly, notices were lodged by Senators Bishop, Campbell, Crane, Parer and Patterson. The Committee completed its examination of these matters at the supplementary meeting on 9 November 1993. On this day it received evidence from Senator McMullan and officers on the following matters:

132

Arts and Administrative Services Portfolio

Sub-program 1.3: Office of Government Information and Advertising The contract to market the DisabJJity Reform Package

Program 3: Business Services Ernst & Young review, June 1992

Sub-program 3.1: Asset Services Commercial competitiveness/business costs (building insurance)

Sub-program 3.2: Australian Construction Services Overseas operations

Sub-program 3.5: Australian Property Group Staffing

Sub-program 3.6: AUSLIG Property adjustment program

Sub-program 3.7: Australian Valuation Office Performance indicators

Sub-program 3.14: Property Rationalisation General operation of program

Program 5: Corporate Management Staff adjustment, property adjustment, programs

Sub-program 2.3 Australian Estate Management Centenary House lease

Sub-program 3.5: Australian Property Group Centenary House lease

Sub-program 3.7: Australian Valuation Office Centenary House lease

Program 5: Corporate Management Centenary House lease

Finance Portfolio

Program 2: Resource Management Framework Centenary House lease

133

Program 8: Australian National Audit Office Centenary House lease The adequacy of Audit Office funding

Sub-program 5.1: Administration of Act of Grace Payments and Waivers, and Program 7: Corporate Services Compensation ansing out of the JCPA Inquiry into the Midford Paramount case

Non-program specific Response to Senator Patterson regarding women's publications

Treasurer's Portfolio

The Committee agreed to the incorporation in Hansard of questions on notice from Senator Bishop relating to the administration of the capital gains tax.

Program 1: Economic Policy. Economic modelling The financial and economic implications of Mabo The Budget deficit Economic conditions

Minutes and additional information

7. Copies of the Minutes of Proceedings are appended to this report. Also appended is a schedule of questions taken on notice during hearings which details the date on which responses were received (up to and including 22 November 1993) and reference to where the response may be found in the volumes of additional information.

8. Further written explanations will be presented to the Senate in volumes of additional information.

Acknowledgments

9. The Committee records its appreciation of the cooperation and assistance provided by the Minister and officers of the departments and agencies which appeared before it. The Committee also acknowledges the work of its own staff, and the staff of Hansard and of the Sound and Vision Office.

134

10. Two matters are appropriate for special mention in this report, the contract to market the Disability Reform Package and the Centenary House lease.

THE CONTRACf TO MARKET THE DISABILITY REFORM PACKAGE

11. This matter again received substantial attention during the Committee's meeting, with Senator Patterson directing questions about the involvement of the Office of Government Information and Advertising in the letting and management of the DRP contract.

12. Attention is drawn to the attached minority report on this matter by Opposition members of the Committee.

CENIENARY HOUSE

13. The matter of the Centenary House lease between the Commonwealth, on behalf of the Australian National Audit Office, and John Curtin House Limited was again the subject of intensive examination by the Committee, taking up the bulk of the supplementary hearing. The matter involved several parts of the Department of the Arts and Administrative Services,

the Department of Finance and the Australian National Audit Office.

14. The ostensible cause of concern in this matter has been whether the terms of the lease are "commercially sound". Underlying this are allegations and imputations of, in effect, impropriety: that the lease was negotiated at other than arm's length in order to provide advantage to the lessor.

Australian Property Group and Australian Valuation Office

15. In evidence to the Committee, officers of the Australian Property Group (APG), supported by officers of the Australian Valuation Office (AVO), asserted that, on the basis of information available at the time of negotiation of the lease, the lease was transparently commercial.

16. The officer handling this matter for APG has since retired. However, current officers advised that they had the benefit of a briefing from him. According to these officers, the key parameters of the agreement- that is, the rent level and annual escalators - had been agreed, based on long term annual growths measured over 10-15 years to 1991 and market information on equivalent rents. Nevertheless, they conceded that at some time during the term of the lease, the agreement would favour the lessor, while at other times it would favour ANAO. They continued to assert, however, that over the term of the lease the agreement would provide "good value" to the ANAO.

17. Among the documents tabled was an independent review of the lease, conducted in December 1992 by Baillieu Knight Frank at the request of the ANAO. This review supported, though not unqualifiedly, the evidence of APG and AVO officers, to the extent that it concluded:

135

"We are of the opinion that at the time of entering into the lease the base rent of $280/m2 and maintenance allowance of $40Im2 were commercially realistic ..... Having regard to the various factors which impact on rental growth the escalation rates, whilst not unreasonable, we considered to be towards the maximum."

18. The officers expressly and emphatically refuted any allegations of impropriety, collusion and/or fraud.

19. Other points made by the officers were:

at all times, APG were operating under the instructions of ANAO, and that APG met with ANAO at least weekly;

APG offered to assist ANAO in its negotiations with the Department of Finance on a resource agreement but that this offer was declined.

20. The details and implications of the resource agreement on the Centenary House accommodation have emerged as a critical issue in this matter and the source of some dispute between agencies.

Department of Finance

21. In their appearance before the Committee, officers of the Department of Finance (DoF) explained the basis on which the resource agreement with ANAO was negotiated and the operation of the property index on which the Department calculates rent supplementation for departments and agencies.

22. According to DoF, the resource agreement extended to all costs associated with the ANAO's move to Centenary House, including rent. Specifically, the Department of Finance testified that:

"In the course of correspondence, we reminded ANAO that the terms it came to with the developer or whoever was a management decision for it. It had to take account of the fact it had only so much money. It was in essence at its risk." ...... . if the ANAO were to enter into an arrangement that cost more than the funds being provided it would have to make up the difference from its other running costs moneys." (Hansard D494)

23 . As to the implications of this:

" ....... if it did transpire - it has not transpired yet - that the Auditor-General could not manage within his available funds, then it was up to him to come to the government and explain why and then it was the government's decision what it would do about it." (Hansard D499)

136

24. DoF apparently was not convinced about ANAO's analysis of the benefits that would accrue from the proposed move. It had suggested that ANAO should seek additional funds from the Government as a new policy proposal. ANAO had responded that Centenary House should not be considered as new policy but as a proposition that would actually save

money over time. It was on this basis that the DoF and ANAO proceeded to negotiate a resource agreement.

25 . The present difficulty had arisen because, according to DoF, the resource agreement did not cover the terms of the lease for Centenary, with its built-in escalator of 9% pa. The DoF, in both oral evidence and in documents tabled in relation to the matter, indicated that this did not indicate an objection to the particular lease nor a judgement on its commercial basis:

"Our. objection is that we negotiated a resource agreement under which it was clearly understood that the audit office would only get compensation according to the movement in market rates." (Hansard D494)

26. For the purposes of calculating the supplementation that it will provide departments and agencies, DoF uses an index which records quarter to quarter the movements in rent in government occupied buildings across the country. In 1993-94, DoF estimates that the index will be 1%, as opposed to the 9% to which the ANAO is committed. The index, of course, will vary from year to year and, so, it is not correct to assume a continuing 8% shortfall

between the additional rent Finance is prepared to supplement and the additional rent to which ANAO has committed under the terms of the lease (and from that extrapolate an overall "shortfall").

27. As noted above, APG and AVO are of the view that over the medium to long term, the "market" in the Parkes/Barton area of the ACT will come into balance, providing benefit to ANAO. While that remains to be seen, it is clear that in the short to medium term, the substantial surplus office space available nation-wide will serve to depress the index and that

there will be a shortfall between the index and the agreed escalator for Centenary House.

28. DoF did acknowledge that a single indicator for adjusting the property element of running costs according to price movements could create difficulties for smaller agencies, such as ANAO, with accommodation concentrated in one market and where property expenses comprise a high proportion of their total budget. For this reason, an agency in this position can seek an exemption from the general rule and have property considered in isolation. However, this would require that DoF be advised of the details of any lease negotiations.

In the event, ANAO and DoF opted for the negotiation of a resource agreement. According to DoF, at no stage was it involved in the lease negotiations nor was it advised of the details of the lease before ANAO committed itself to it.

Australian National Audit Office

29. The Australian National Audit Office's (ANAO) testimony is in conflict with that of APG, AVO and DoF on a number of significant issues and so raises a number of serious questions.

137

30. In an opening statement, the Auditor-General referred to press reports that suggested he may have misled the Committee at a previous hearing, to the extent that comments he made may have been interpreted to the effect that he was not personally aware of the ALP's ownership of Centenary until after an irrevocable commitment was made to lease the building. As the record now shows, the Auditor-General was aware of this fact in April1991, at the latest, some 12 months before such a commitment was made. The Auditor-General expressed regret that an incorrect interpretation may have been drawn from his previous testimony. The Committee acknowledges the Auditor-General's clarification of this point.

31. On the matters of substance, the Auditor-General raised at this hearing, for the first time, the possibility that ANAO may not have been aware of the 9% escalation until after the precommitment lease had been signed (in April 1992):

"My view, on the basis of a review of our files - I have no doubt it will be contested - is that we did not know about the nine per cent escalation until after the pre-commitment. We have come to the conclusion that some

information, in particular the nine per cent escalation, was not passed on to ANAO." (Hansard D501)

32. This possibility was also canvassed in a document dated 4 November 1993 which was tabled by the Auditor-General and subsequently incorporated in Hansard. At paragraph 4 of that document, it is stated that:

"4. The APG:

Delayed telling the ANAO of ALP involvement.

There is no written record that the APG sent details of the 9% escalation factor or discussed it with ANAO. In fact the September 1991 letter given to McCann and Associates and the draft given to the ANAO indicates the possibility that APG intentionally failed to notify the ANAO of the 9% escalation."

33. However, this same note does allow, at paragraph 21, that the ANAO may have received the AVO valuation report, recommending that the escalator be set no higher than 9%, in November 1991. Evidence from ANAO officers on the point is less emphatic than the Auditor-General's and admits to "doubt" as to when the ANAO became aware of the 9% escalator.

34. This proposition that the ANAO may not have been aware of this vital matter is based on a review of ANAO's own files. The Auditor-General informed the Committee that the relevant senior officer of the ANAO involved in negotiations was on stress leave at the time of the hearing and unable to assist in the matter.

35. The general import of ANAO's evidence is seriously to question the assertion by officers of the Australian Property Group that ANAO was fully consulted on all matters of fundamental detail relating to the negotiation of the lease and that APG acted on the instructions of ANAO. For example:

138

ANAO officers were unaware of a letter of 13 August 1991 from APG to ANAO outlining various options relating to the lease structure a nd seeking ANAO's "agreement before entering any commitment".

in relation to a letter of 3 April 1992 from ANAO to APG authorising APG to enter into a pre-commitment agreement on ANAO's b ehalf, the relevant ANAO officer advised that "in our view it certainly was not a commitment under the finance act to expend money" (Hansard D511) The effect of entering into such

a n agreement was precisely to e nter into a legally bindi ng commitment.

36. With regard to the negotiation of the lease, the Auditor-General stressed, on a number of occasions in his evidence, that he had not been directly involved in negotiations and had been at pains to "keep an arm's length away by putting it with the experts" (that is, APG and AVO). When pressed on the point of his own obligations, as head of the agency, to satisfy

himself about the details of a ny financial commitments, the Auditor-General again emphasised that he had relied expressly upon "the government expert's advice".

37. As to the matter of the resource agreement, the Auditor-General and his officers were empha tic that, in contrast to the Department of Finance's testi mony, it we nt only to matters to do with the fit-out of Centena ry House and not to rent. Alternatively, the Auditor-General argued that, if it did go to the question of rent, then it was market rent:

" ... .. market price is willing seller and willing buyer. It is not what the Department of Finance says as a result of some arcane across-the-board index." (Hansard D502)

Conclusions

38. As far as this Committee is aware, a ll relevant documents relating to the negotiation of the lease for Centenary H ouse have been tabl ed, eithe r in the Senate or before th is Committee.

39. Officers have been exhaustively examined on several occasions. The Committee does note, however, that the officer from APG most directly involved in the negotiation of the lease has since retired and the offic e r from ANAO most directly invo lved is currently on stress leave. Accordingly, neither person was avfi ilable to appear before the Committee.

40. On the basis of the evidence before the Committee, allegations a nd imputations of impropriety (or worse) cannot be substantiated. Nevertheless, there are questions of serious moment that remain unresolved. It would not appear likely that these questions can be satisfactorily resolved through the process of the examination of the annual estimates of expenditure.

139

41. The current state of this matter leaves serious allegations standing against the conduct and professionalism of the Australian Property Group and the Australian Valuation Office. Equally, it leaves serious questions relating to the Australian National Audit Office's management of the move into new accommodation and so has the potential to detract from the credibility of this important institution.

42. In the circumstances, the Committee considers that the public interest would best be served by a full and wide-ranging independent inquiry, under the auspices of the Audit Act. The Committee notes that the Auditor-General has requested that such an inquiry be conducted by the Auditor-General for South Australia. The Minister for Finance has suggested that such an inquiry would best be conducted by the Independent Auditor of th e ANAO.

43. The Committee sees merit in an inquiry comprising both the Auditor-General for South Australia and the Independent Auditor. It may even be appropriate for consideration to be given to adding a third independent person to ensure there was an outcome in which all parties could be satisfied. The terms of reference of such an inquiry should be broad enough

to encompass all matters examined by this Committee, especially those issues which remain in doubt.

44. Attention is drawn to the attached minority report on this matter by Opposition members of the Committee.

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AUSTRALIAN SENATE CANBERRA. A .C.T

Centenary House Minority Report

We dissent from the findings and conclusions reached in the majority report on the lease of Centenary House to the ANAO for the following reasons.

The evidence tendered to the Committee raises serious questions about the competence and professionalism of the Australian Property Group (APG) and Australian Valuation Office (AVO) officer s who processed the Centenary House lease.

Terms of Lease

The lease does not conform to the standard lease arrangement used by the Commonwealth.

Independent reports indicate that the lease cannot be supported as being commercial. The APG officers who appeared before the Committee consistently claimed that the lease represented good value for the Commonwealth. The majority report cites an independent report by Baillieu

Knight Frank, which gives only qualified support for this view. Significantly, the report states that: (

Having regard to the various factors which impact on rental growth the escalation rates, whilst not unreasonable, are considered to be towards the maximum.

Among the documents tabled was a report by Price Waterhouse, dated 25 June 1992, on the results of a survey of the terms of lease of five new quality buildings in the Barton area. They concluded their report by commenting on the very favourable terms of the lease to the owner of Centenary House as

follows:

The above would seem to ·indicate that the arrangement is extremely generous to the owner and we have difficulty, unless there are facts of which we are not aware, concluding the arrangement is a good commercial proposition for the Government.

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Rent Level and Annual Escalators

The majority report does not cover the range of evidence that was before the Committee as to the extra commercial nature of the rental terms. The nine per cent annual rent escalator with an upward review to market at years five and ten, but without any provision for reduction to market rents over the initial lease period of 15 years, is not one that could be supported by lease terms of comparative commercial lease rentals.

In evidence provided to the Committee on 9 November 1993 the General Manager of the APG indicated that the APG did not have any other leases of 15 years with a five year renewal option and a fixed escalation of nine per cent.

The Price Waterhouse report also found that the average market base rent was around $320 per square metre as against $325 for Centenary House. In all cases surveyed by Price Waterhouse, base statutory charges were included in the base rent with only increases in statutory charges being paid by the tenants. However in the case of Centenary House the statutory charges are to be paid by the tenant in addition to the base rent. This would result in an adjusted base rent of $386 per square metre for Centenary House as against $320 for comparative leases in the Barton area.

It is clear that the ANAO too was working on the assumption that the base rent for the n ew building at Section 22 Barton, the locality where Centenary House was eventually constructed, would be in the vicinity of $315- 320 per square metre per month. In letter dated 27 May 1991 to the Secretary, Department of Finance, the Acting Auditor-General stated:

It is difficult a t this point in time to give precise information in respect of cost comparisons since little information is forthcoming at this early stage in respect of detailed expenditure demands of the new building.However advice has been received that the rent for the new building will be in the vicinity of $315-320 per month , while a refurbishing of Medibank House rent-wise would fall into the same category.

In a letter dated 11 June 1991 from the Executive Director, Executive Support Branch, ANAO to the Secretary, Department of Finance seeking support for the move to Centenary House, there was included an attachment which gave the Cost Comparison over 10 years stay in Medibank and other Canberra locations vs Move to Section 22. A footnote to this document stated as follows :

Note; Rent and outgoings are assumed to remain constant over the 10 years in both options, unless otherwise indicated. Prospective rent at Section 22 is in accordance with the range advised by APG.

14 2

The comparison showed that the Medibank option would have cost the ANAO $966,000 more than the Centenary House option over the 10 years on the understanding that the rent escalator that applies to the properties involved in both options would be identical. However if ANAO had been informed by

the APG at that stage that the rent escalator for the Centenary House option would be nine per cent per annum, a figure which would clearly not have applied to the properties involved in the Medibank option, the basis for this comparative study would have been unfounded.

It would have been apparent to the Department of Finance too, which scrutinised this comparative study, that ANAO's conclusion, that the move to Centenary was financially justified, rested on the assumption of equivalence in rent escalations of the properties involved in the comparative study. The question therefore arises why the Department of Finance did not raise this

question with the ANAO and APG at this early stage of negotiations.

One factor that weighed heavily in the move to Centenary House, apart from comparable market rents, was that all areas of the ANAO would be in one building and that the ANAO would be the sole tenants. In the letter dated 27 May 1991 to the Department of Finance, the Acting Auditor-General states:

In the first place it is now proposed to draw all areas of the ANAO into one building at Section 22, Barton. This building will provide a n area of approximately 6,000 square metres, which represent a reduction of some 1,400 square metres of total office space held by the ANAO in Medibank house, Tasman House and Treasury Building, which together equates to some

7,400 square metres. At the same time, the ANAO will be the sole tenants of the new building and having co-located, could have expected to have resolved accommodation concerns well into the future.

It therefore appears that the ANAO were acting on the basis of

representations made to it by the APG, on the rent as well as the sole tenancy of the building which did not prove to be correct. The actual effective base rent exceeded by far the market rent, with no reference to the rent escalator and little appears to have been known at that stage that the building was to be shared with the Australian Labor Party.

(

Concerns for Security

Security of premises occupied by the ANAO was also of great concern to the ANAO in view of the nature of its operations which was quite

understandable. ANAO did not consider the Medibank House option satisfactory in view of the fact that it had to share that tenancy with DEET. This is evident from letter dated 4 March 1991 from the Deputy Auditor­ General to the Secretary, Department of Finance.

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Funding Shortfall

6 .... The option that remained as a possible solution was the long term occupancy of the Medibank house by the ANAO. Although recognised as a possible solution, the Medibank House solution has inherent problems including:

the inability of the ANAO to totally secure the building due to the presence of DEET

The Department of Finance has agreed to fund the lease only to the extent of a one per cent annual increment, whereas the ANAO has committed itself to a nine per cent increment. The difference is a cost that the Auditor­ General said was 'catastrophic' and would force the ANAO to consider leaving Centenary House by 1996 if audit activities and funding were to be maintained at present levels.

The table attached to this Minority Report reveals the financial implications of the rent agreed to by the Audit Office and that which the Department of Finance has agreed to fund.

Over the period of the lease there is a total shortfall of $34.1 million which the ANAO will have to find from its own resources. This figure amounts to the windfall that the Australian Labor Party will receive from this project.

As indicated above it is evident that the ANAO was acting on the basis that any advantages arising from its search for new accommodation must be matched with resources it could secure from the Department of Finance without risk to its audit program. In a letter dated 9 August 1991 from the Deputy Auditor-General to the Secretary, Department of Finance this has been clearly emphasised.

2. A major issue which appeared to be hindering progress in this matter [move to permanent accommodation] was the need for the ANAO to enter a resource agreement for POE funding. I now wish to confirm that the ANAO is willing to enter such an agreement so that positive planning commence on the much needed move of the AN AO to Section 22 at Barton. The funding implications of such an application are understood and accepted and I would ask that detailed requirements for the agreement be conveyed as soon as practicable to the ANAO.

3. The ANAO is now in the situation whereby immediate commitment to section 22 could provide the necessary savings to fund the resource agreement without excessive risk to our audit program. It will enable negotiations to be entered into with APG and the developers, hence ensuring specific ANAO needs and requirements are taken into consideration at the initial stage of

144

the development. In this way it is felt the maximum in economies and efficient usage of the premises will be achieved.

In view of the stance taken by the ANAO that its move to Centenary House could only be justified on the basis that its audit program must continue without curtailment there are serious questions that remain to be resolved as to the subsequent developments which lead to the situation where its programs may have to be curtailed.

What is primarily at stake is the accountability of the Executive Government to Parliament and it is the duty of the Senate, where this matter has been raised in its Estimates Committee, to ensure that there has been no attempt either directly or indirectly by any interested party to undermine the process

of accountability.

Knowledge of the Rent Escalator

The Resource Agreement between the ANAO and the Department of Finance was signed on 27 March 1992 . The Resource Agreement detailed the terms and conditions for funding the ANAO's accommodation move in Canberra. It formalised agreements previously reached through the interchange of

correspondence and meetings of officers of the ANOA and the Department of Finance. There was no clear definition as to what was intended to be 'market rates' and both parties to the Agreement would appear to have left it to the Australian Estate Manager to determine rent revisions that exceed 'market

rates' as could be inferred from clause 10 of the Agreement.

To the extent that the arrangements in the accommodation contract fall within the accepted (by the Australian Estate Manager) norms for accommodation standards and fitout, and within rent revisions that do not exceed market rates, the ANAO will recover that proportion of the related

Property Operating Expenses that relate to financial statement auditing through the normal fee structure developed by ANAO .

As the Agreement for Lease of Centenary House was entered into·· on 23 April 1992 it must be assumed that this vital information of the size of the escalator was known to the Australian Estate Manager around the time the Resource Agreement was being finalised. But there is no evidence of

disclosure to the ANAO. Subsequent evidence suggests that in October 1991 the nine per cent escalator by the AEM but without the knowledge of the ANAO.

It is clear from subsequent correspondence between the ANAO and the Department of Finance that had the details of the nine per cent escalator been known to the parties to the Resource Agreement there would have been

145

delay in finalising it with the consequence that the Agreement for Lease of Centenary House would not have been entered into on 23 April 1992.

Thus in a letter dated 5 August 1993 from the Secretary, Department of Finance to the ANAO the point is made that a fixed rent escalator over a long term lease cannot be expected to reflect the 'market rate'.

Your contention that the "market rate' for Centenary house" is 9% seems to misunderstand what "market" means. A lease which has flxed indexation rate cannot claim to be related to "market rate" as for example, rents in similar areas would have no impact on the fixed rate, and there is no provision for such adjustment to "market rates". As you are aware the indexation rate of

1% reflects the general movement in ACT rentals, including in the Barton area.

It is apparent that at this stage the ANAO was merely relaying the views of the APG. This is seen from a letter dated 19 August 1993 from the ANAO to the Acting Secretary, Department of the Arts and Administrative Services.

DoF argues that in Commonwealth leases, the rent escalator is tied to normal market rates. This is certainly the basis on which DoF funds Property Operating Expenses(POE). For this round of budget negotiations, DoF has agreed to an increase of 1% in the funding lease for POE covering Centenary House. The 1% is based on current CPI flgures. Based on DoF's agreed rent escalator(CPI), the ANAO's funding for Centenary House will be 8 % in arrears this financial year and faces similar ongoing reduction in its funding over the terms of the lease which is 15 years.

I am sure APG would agree that it was representing the Commonwealth's interests in negotiating the lease terms. This responsibility is certainly borne by the Minister for the Arts and Administrative Services or his delegate under section 40 of the Lands Acquisition Act 1989.

From an analysis of the available evidence given to the Committee it would seem that the only instructions given to APG by the ANAO were in broad terms and provided the APG with details of its accommodation requirements. It is accepted that APG and ANAO met regularly but it would appear that

these meetings concentrated on accommodation and fitout re'quirements, rather than the detail of any lease agreement. It would even appear that the ANAO did not obtain a copy of the final agreement to lease until some time after the agreement to lease had been signed on behalf of the Commonwealth. It is understood that the Auditor General has still not been provided with a copy of the final lease document recently signed on the Commonwealth's behalf.

It could be expected that the APG would have closely liaised with its client, the ANAO, given the unusual nature of the lease. Indeed, the APG officers at the hearing claimed that they consulted with the Office on a weekly basis. (Hansard D466).

146

According to the ANAO however, the APG did not advise the Office that the lease included a nine per cent escalation factor until after June 1992 - after the ANAO had signed a legally binding precommitment agreement (in April 1992), and after the terms of the lease had become a matter of public controversy.

The ANAO alleged that the APG sent a letter to McCann and Associates (the ALP's valuer) in September 1991 that referred to a rental escalator that would not exceed 9.75 per cent. The ANAO was sent a draft of the letter in October 1991, which:

excludes any mention of the paragraph included in the letter of intent in relation to the 9.75%.

An Internal Minute of the ANAO which was incorporated in the Hansard of 9 November 1993 stated in the following form how the nine per cent escalator may have been intentionally withheld:

There is no written record that the APG sent details of the 9% escalation factor or discussed it with the ANAO. In fact the September 1991 letter given to McCann & Associates and the draft given to the ANAO indicates the possibility that APG intentionally failed to notify the ANAO of the 9% escalation. (Hansard D505)

The letter of intent from the APG excluding mention of the 9 per cent escalation clause of October 1991 differed from its original draft according to evidence provided to the Committee on 9 November 1993 in the following terms: -

the draft given to the ANAO excludes any mention of the paragraph included in the letter of intent in relation to the 9.75%. It is clear that, while APG had entered into a letter of intent on a 9%+ rental escalation, ... the

information was not passed on to the ANAO. (Hansard D506)

The APG offered, on a number of occasions, to assist the ANAO in negotiating its resource agreement with the Department of Finance. (Hansard D451) There is no evidence, however, that it consulted with either the Department of Finance or the ANAO abop.t the extent to which the resource

agreement limited its scope for negotiation.

Knowledge of the Ownership of Centenary House

The majority report points out that the ANAO was not irrevocably committed to the lease until April 1992. It is, nonetheless, disturbing that the APG did not recognise the sensitivity of the matter and inform the ANAO of the identity of the building's owner as early as possible.

14 7

The property was referred to as the "Lend Lease Site" and reference was made to the "Joint Venturers". The as to why the Auditor General

was not immediately told that ownership rested with the Australian Labor Party through John Curtin House Ltd remains unanswered.

Formalities required by the Lands Acquisition Act

It is also relevant to note that this non-commercial lease was entered into under the Lands Acquisition Act 1989 (Cth). A question of significance is why was the agreement not laid before each House of Parliament within 15 sitting days after the agreement was entered into as required by section 40(3) of the Act. The answer to this question may either indicate incompetence or the

inability to subject the terms of the lease to parliamentary scrutiny or more seriously lack of good faith.

Further Matters

The Australian Estate Management (AEM) withdrew its objection to the ANAO moving to Barton without satisfactory explanation. This was despite the fact that it was initially insisted that the APG market the proposed York Park building to the ANAO. Such marketing did not occur.

The conclusion is irresistible that a concerted effort was made to withhold information relating to the rent escalator from the parties to the Resource Agreement as was the case with withholding the tabling of the Agreement for Lease of Centenary House in both Houses of Parliament as required under the Lands Acquisition Act 1989. However as the Estimates Committee did not have the benefit of examining the officers from the APG and AVO most directly involved in negotiating the lease, who has since left the organisation, and the officer in the ANAO directly concerned with the search for new accommodation, who is on stress leave, this inquiry cannot be taken to have resolved this matter of grave public concern having regard to the fact that the main beneficiary of all these arrangements has been the Australian Labor Party which is in control of the Executive Government of the Commonwealth.

Recommendation

In view of the dispute that has arisen between the Minister of Finance and the Auditor-General as to who should conduct the wide-ranging inquiry proposed by the Auditor-General under the auspices of the Audit Act, it would be in the public interest to ensure that not only should the inquiry be independent but must appear to be so. As the ANAO and the Department of Finance are involved in the dispute the acceptance of the nominee of the ANAO and the Minister in charge of the Department of Finance to conduct the inquiry should be avoided.

148

This public interest could best be served at this stage by r eferring this matter to a Senate Standing Committee which would be required to appoint an investigator to be assisted by Counsel. This procedure, which will result in a report being tabled at the conclusion of the inquiry, has been resorted in the

past on matters of grave public concern and we recommend the adoption of this procedure on this occasion.

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Senator Bronwyn Bishop Senator for New South Wales

Senator Brian Gibson Senator for Tasmania

Senator Nick Minchin Senator for South Australia

Senator Warwick Parer Senator for Queensland

CENTENARY HOUSE

SCHEDULE OF ESTIMATED RENT AND OUTGOING

Year Agreed Terms of Lease DoF Funding for Lease

Rent Outgoing Total Rent Outgoing Total Cumulative

9Z 5% Cost 1% 1% Cost Shortfall Total of

Escalation Escalation (A) Escalation Escalation (B) (A-B) Shortfall

$'000 $'000 $ ' 000 $ ' 000 $ '0 00 $ ' 000 $'000 $'000

1993-94 2,384 450 2,834 2,384 450 2 ,834 0 0

1994-95 2 , 598 472 3,070 2,408 455 2,863 20 7 207

1995-96 2 , 832 496 3 , 328 2,432 460 2,892 436 643

1996-97 3,087 521 3 ,608 2 , 456 465 2,921 687 1,330

1997-98 3,367 546 3' 913 2,481 470 2,951 962 2 , 292

1998-99 3 , 670 573 4 ,24 3 2,506 475 2,981 1,262 3,554 V1 0 1999-00 4,000 602 4 ,6 02 2,531 480 3 , Oll 1,591 5,145

2000-01 4, 360 632 4,992 2,556 485 3,041 1,951 7,096

2001-02 4,753 663 5,416 2,582 490 3' 072 2,344 9,440

2002-03 5 ,180 697 5, 877 2 ,608 495 3,103 2, 774 12,214

2003-04 5,646 731 6 . 3 77 2 , 634 500 3 ' 134 3, 243 15,457

2004-05 6,155 768 6 ,9 23 2 , 660 505 3 ,165 3 , 758 19,215

2005-06 6,708 806 7 , 514 2,687 510 3 ,197 4,317 23,532

2006-07 7. 313 846 8,159 2, 714 515 3 , 229 4,930 28 ,462

2007-08 7,971 889 8,860 2,741 520 3,261 5,599 34,061

Source: ANAO

SENATE ESTIMATES COMMITTEE D MINORITY REPORT

OFFICE OF GOVERNMENT INFORMATION AND ADVERTISING

This minority report is submitted on behalf of Senators Parer, Minchin and Gibson, each of whom has examined it and agrees with its contents.

The Coalition members of Senate Estimates Committee D and Senator Kay Patterson note that the following issues relating to the marketing of the Disability Reform Package (DRP) which was conducted under the auspices of the Office of Government Information and Advertising (OGIA) are matters of concern:

* that the Working Committee of the Ministerial Council on Information and Advertising only sought one alternative to the mainstream advertising approach, a fact that may have resulted in that chosen alternative, namely Corporate Impacts, having an unfair advantage during the final selection process for a contractor to market the DRP;

* that the method used by OGIA to choose an alternative to the mainstream advertising approach (inserting three key words in a data base of 1,500 potential contractors and obtaining two oral references for the selected company) may not have been conducive to ensuring that the chosen alternative was the best possible alternative available;

* that Senator Bob McMullan who chaired the Working Committee of the Mi nisterial Council that awarded the DRP contract to Corporate Impacts stated during the Estimates hearings that he may have met its Director Ms Anne Gorman before the contract was let and that he did meet her after the contract was let to discuss matters

pertaining to the contract;

* that no checks were undertaken of the financial capabilities of Corporate Impacts by the Commonwealth prior to awarding it $4.95 million to market the Disability Reform Package (DRP) and that if Corporate Impacts' last Annual Return to the Australian Securities Commission (ASC) prior to the letting of the contract had been checked it would have revealed that the company was trading at a loss, that its liabilities exceeded its assets and that it was probably balance sheet insolvent;

* that the liquidation of Corporate Impacts in July this year resulted in an unspecified number of unsecured creditors (of a total of 229 unsecured creditors) who provided services that were related to this contract not being paid an unspecified amount of money (estimated in an OGIA audit to be $114,000) ;

* that it is contended that the Commonwealth has no financial responsibility to these unsecured creditors although it was recognised by creditors that Corporate Impacts was working on behalf of the Commonwealth and in some cases actually using Commonwealth facilities to execute this contract;

151

* that despite the fact that two of the three Departments that were represented on the Management Committee which was responsible for managing the contract being of the view during May and June 1992 that the contract should be terminated, no effective action appears to have been taken at a Ministerial or a departmental level to protect the public purse or debts owed to unsecured creditors;

* that while the contract stipulated that Corporate Impacts be paid on a monthly basis (i .e. $200,000 per month), all except $62,000 of the $4.95 million designated for the contract had been paid to Corporate Impacts by February 1993 even though the contract was due to run until 30 June 1993;

* that an officer from OGIA gave evidence that two designated persons to the contract may have mischarged the Commonwealth in excess of $220,000 between them;

* that despite the fact that these two designated persons are the directors of a company Yardmont Pty Ltd which according to the Form 507 lodged with the Australian Securities Commission by the liquidator has a damages claim of $1.88 million against Corporate Impacts, the Commonwealth does not seem to have seen fit to examine this matter;

* that an officer from OGIA has given evidence that network facilitators employed to carry out this contract worked 13,000 fewer head hours than the 55,000 head hours stipulated in the contract;

* that the Form 507 lodged with the Australian Securities Commission (ASC) by the liquidator of Corporate Impacts indicates that 16 of the network facilitators who were employed by Corporate Impacts to implement its network marketing approach to the DRP contract (which was endorsed by the Working Committee of the Ministerial Council) are owed entitlements by Corporate Impacts;

* that an officer from OGIA has given evidence that Ms Gorman may have mischarged the Commonwealth for travel costs entailed in the execution of the DRP contract;

* that to date, an undisclosed number of deliverables with an undisclosed value have not been provided to the Commonwealth by Corporate Impacts;

* that in spite of the concerns expressed about the financial viability of Corporate Impacts by the Management Committee from November 1992 onwards, a further contract with a value of $29,500 was awarded by the Commonwealth Environmental Protectio n Agency of the Department of the Environment, Sport and Territories to Corporate Impacts in April 1993 , a matter of weeks prior to its application fo r voluntary liquidation in May 1993;

* that an officer from OGIA has expressed concern about the objectivity of the liquidator appointed to Corporate Impacts;

152

* that the Commonwealth's concerns about the execution of this contract are of such gravity that it is currently considering legal action;

* that evidence was provided in another Estimates Committee that a company contracted by the Commonwealth to evaluate this contract has been threatened with legal action by Corporate Impacts resulting in a delay in its evaluation report;

* that evidence was provided in another Estimates Committee that a former member of the Management Committee that managed the contract is taking legal action against Corporate Impacts and its principal arising out of allegations made about him in the context of the DRP contract which he considers to be defamatory;

* that evidence provided in another Estimates Committee shows that it has cost two of the three-Departments represented on the Management Committee, namely Social Security and Health, Housing, Local Government and Community Services over $247,000 and in excess of 9,900 staff hours to supervise this contract which an officer

from OGIA described in Estimates as having "always been a troublesome, difficult relationship ....... more and more troublesome as it has gone on.";

* that evidence provided by officers appearing before this and another Estimates Committee indicates that there is a lack of clear guidelines stipulating who has responsibility for checking the bona fides of a contractor when a contract crosses a number of Commonwealth agencies;

* that evidence provided by officers appearing before both this and another Estimates Committee indicates that there is a lack of clear guidelines for the procurement of marketing and advertising related services; and

* that evidence provided by officers appearing before this and another Estimates Committee indicates that there is a lack of clear guidelines outlining how decisions relating to the management of a contract are made if the contract crosses a number of Commonwealth agencies;

The fact that the appropriations to market the DRP relate to three Commonwealth Departments (Department of Social Security, Department of Health, Housing, Local Government and Community Services and Department of Employment, Educati on and Training) under the auspices of the Office of Government Information and

Advertising (OGIA) has meant that Senators have had considerable difficulty ascertaining all of the facts that are relevant to this matter. It also needs to be pointed out that the Estimates process cannot provide the significant number of people who have been mentioned in the Committee's hearings th e opportunity to answer questions or reply to statements in regard to their conduct in relation to the execution of this contract.

153

Given the significant concerns that Committee members have in regard to a large number of matters relating to this contract and given that the Senate Estimates process is ill-equipped to examine fully an issue that crosses four Commonwealth agencies (five including the Environmental Protection Agency), it is recommended that all matters relating to the marketing of the Disability Reform Package (DRP) be referred to a Senate Select or Standing Committee for further inquiry. In particular, the following matters need to be given further consideration by a Senate Committee:

a) the letting of the DRP contract; b) the management of the DRP contract; c) specifically why advice from two of the three Departments on the Management Committee that the DRP contract be terminated was ignored; d) debts owed to unsecured creditors from the DRP contract; e) mischarging of the Commonwealth by Corporate Impacts; e) accusations about the objectivity of the liquidator; f) why a further contract was let to Corporate Impacts in April 1993 although the

Commonwealth must have had significant doubts about its financial viability; and g) the effectiveness of current purchasing guidelines.

Senator Kay Patterson (Senator for Victoria)

154

......

lJ1 lJ1

Q. number (parts)

1 (3)

2 (5)

3 (5)

4 (2)

5

6 (2)

7 (4)

8 (6)

9 (3)

10 (5)

11 (3 )

12

13

Senator

Short

Short

Short

Short

Colston

Colston

Al ston

Patte rson

Patterson

Patterson

Ke mp

Kemp

Kemp

ESTIMATES COMMITTEE D- BUDGET ESTIMATES 1993-94

Questions taken on notice by the Arts and Administrative Services portfolio

Subject Program Date Date reply Additional

number received or received Information

Hansard vol: page

page/column

Consultants engaged by ministers 1992-93 - numbers, costs, 2.1 16.08.93 17.09.93 1:69

con tract details

Research studies, o pinion polls commissioned nps 16.08.93 21.10.93 3:746-

Advertising, promotional projects undertaken nps 16.08.93 21.10.93 3:769-

G ran ts to trade unions or comm uni ty groups nps 16.08.93 24.09.93 2:374-

Correspond ence re possible relocati on of Senator Co lston's 2.1 20.08.93 26.08.93 2:449-

Southport office

Staffing of Ministerial and Parliamentary Services Division; 2. 1 20.08.93 26.08.93 2:497-

correspond ence re travel by official cars

Details of Minister Beddall's trip to Japa n, USA 2.1 24.08.93 17.09.93 1:99

Consultancies on women's issues nps 24.08.93 25 .10.93 3:876

Advance availability, notification, of publications re women's nps 24.08.93 22.09.93 1:231

iss ues

Australia Co uncil moves to advance the statu s of women; 1.4 24.08.93 22.09.93 1:232-

Wome n and the Arts committee

Numbers, cla ssification, of sta ff pos itio ns for ministers, 2.1 26.08.93 17. 09.93 1:216-

shadow ministers and oth er MOP(S) Act staff 0134

Cos t of mini sterial staff 1992-93, estimated for 93-94 2.1 26.08.93 17.09.93 1:224

Ministerial co nsultant s, sa lary ranges 2.1 26.08.93 17.09.93 1:225-

14 Kemp NMLS numbers, location, names 2.1 26.08.93 17.09.93 1:227

15 Kemp Salary scales, ent itlement s, of mini steria l staff 2.1 26.08.93 17.09.93 1:228

16 Ke mp Additional staff positions assigned to poli tica l parties, 2.1 26.08.93 17.09.93 1:229

ind epend ents, 1992-93 and projected for 199 3-94

17 (5) Campbell Staff travel allowance - conditions, rates , use by min is terial 2. 1 26.08.93 17.09.93 1:104-

co nsultant s, use beyond 182 days D1 33

18 (3) Ca mpb ell Travel allowance details for ministers Bolkus, Bedd all and 2.1 26.08.93 17.09.93 1:120-

Snowdon D133

19 (3) Campbell Details, costs, of overseas travel by 8 ministers/parliamentary 2.1 26.08.93 17.09.93 1:130-

secretaries D133 26. 10.93 8:

20(14) Ca mpbell MO P(S) Act staff names , designation, pay, home base, 2. 1 26.08.93 17.09.93 1:146-

entit lements D133

21 Ca mpbell Ex tra staff posi ti ons assigned, by poli tical party 2.1 26.08.93 17.09.93 1:214-

22 (5) Ca mpbell Details of tra nsfer of Hotel Kurrajong to ACf Government 2.3 26.08.93 22.09.93 1:275

23 (5) Minchin Costs, staff structure, aims, etc of NM LS (see also Q87) 2.1 26.08.93 22.09.93 1:240

24 Patterson No tice, details, invitatio n to launch of, fo rthcoming 1.1 26.08.93 23.09.93 1:28 1

publi ca tio ns D134 r

25 Patterso n Marke t research re Australian Na tional Mari time museum 1.1 26.08.93 23.09.93 1:318

D134 r 30.09.93 2:542

26 Patterson Projected increase in salaries, admin cos ts of Australian 1.1 26.08.93 24.09.93 2:435

Cu ltura l Development Office (ACDO) D134 r

27 Patterson Nature of $1.1m AFTRS lega l settlement 1.1 26.08.93 27.09.93 2:503

D134 r

28 Patterson Ex pendi ture for Cultural Min isters' Trust Account 1.1 26.08.93 24.09.93 2:436

D134 r

29 Patterson Reaso n fo r increase in ACDO staff 1.1 26.08.93 24.09.93 2:437

30 Patterson ACOO staff sick leave, 1990- 1.1 26.08.93 24.09.93 2:438

0134 r

31 Pa tterson ACOO training cos ts 1992-93 1.1 26. 08.93 26.08.93 2:444

0134 r

32 (7) Patterson ACOO staff suppli ed with laptops, faxes, credit cards, t1ight 1.1 26.08.93 23.09.93 1:282-

deck subscriptions, mob ile phones, cars 0134-5 24.09.93 2:442

33 (6) Patterson Overseas travel by ACOO staff 1.1 26.08.93 23.09.93 1:285

0135 I

34 (6) Patterson Overseas travel by arts ministers 1.1 26.08.93 27.09.93 2:504

0135 I

35 Patte rson Green paper o n Australian cultural development 1.1 26.08.93 23.09.93 1:286

0135 I

36 (2) Patterson Artbank loa ns to the private sector 1.1 26.08.93 23.09.93 1:287

0135 I

37 (5) Patterson Review of Australi an Opera 1.1 26.08.93 23.09.93 1:288

- 0135 I

38 Patterson Cu ltura l tourism report 1.1 26.08.93 23.09.93 1:289

0135 I

40 Patterso n Reports on copyright-related issues 1.1 26.08.93 23.09.93 1:289

0135 I

41 Patterson List of eligible cultural organisations on register 1.1 26.08.93 23.09.93 1:289-

0135 I

42 Patterson Final report of Heritage Collections Working Group 1.1 26.08.93 23.09.93 1:310

... 0135 r

43 (6) Patterson Consultants for cultural development polky 1.1 26.08.93 29.09.93 2:535-

0135 r

44 Patterson Consultants engaged by ACOO since 1 July 1993 1.1 26.08.93 23.09.93 1:311

0135 r

45 Patterson Co nsu lt an ts engaged over last five years; percentage change 1.1 26.08.93 24.09.93 2:441

D135 r

46 Patterson Redefinition of information and data bases of cultural 1.1 26.08.93 23.09.93 1:312

industries D135 r

47 (4) Patterson Work on moral rights, CD rentals, PLR, copyright collection 1.1 26.08.93 29.09.93 2:533-

agencies D135 r

48 (2) Patterson Arts centres which pay rent from annual federal allocation 1.1 26.08.93 23.09.93 1:313

D135 r

49 (4) Patterson National Museum of Austral ia funding 1.1 26.08.93 23.09.93 1:315

D135 r 25.10.93 3:852

50 (2) Patterson Work on the establishment of the Foundation for Cultural 1.1 26.08.93 29.09.93 2:531-

Development; ACDO role D136 1

51 (3) Patterson In vitations to Shadow Minister to Australi an Archives 1.2 26.08.93 22.09.93 1:238

functions; copies of newsletter; tour repository D136l

52 Patterson Reason for Archives' running costs increase 1.2 26.08.93 22.09.93 1:239

Dl361

53 (2) Patterson Office of Government Information & Advertisi ng (OGIA) 1.3 26.08.93 27.09.93 2:507

sick leave Dl361

54 Patterson OGIA training costs 1.3 26.08.93 27.09.93 2:508

Dl36 r

55 (7) Pa tterson OGIA staff with laptops, faxes, credit cards, flight deck 1.3 26.08.93 27.09.93 2:509-

subscriptions, mobil e phones, cars D136 r

56 (7) Patterson Overseas travel by OGIA staff 1.3 26.08.93 27.09.93 2:510

D136 r

57 Patterson Invitations to shadow minister to Australia Council official 1.4 26.08.93 29.09.93 2:519

fu nctions D136 r

58 (6) Patterson Details of the general manager position; Mr Bou rke's 1.4 26.08.93 29.09.93 2:519

activities

59 (2) Patterson To tal prog ram costs of Australia Coun cil 1.4 26.08.93 29.09.93 2:521

0137 I

60 Patterson Reason for admi nist ration, sa lary, cost movements 1.4 26.08.93 29.09.93 2:522

01371

61 Patterson Invitation to Film Commission official func tions 1.5 26.08.93 23.09.93 1:316

0137 l

62 Patterson Fi lm Commission program costs 1.5 26.08.93 27.09.93 2:512

0137 l

63 Patterson Reason for Film Commiss ion administration, salary, cost 1.5 26.08.93 27.09.93 2:513

movements 0137 1

64 Patterson Invitations to AFTRS official functions 1.6 26.08.93 27.09.93 2:514

01371

65 (3) Patterson AFTRS eval uation, financing 1.6 26.08.93 27.09.93 2:514

0137 1

66 Patterson Reason for AFTRS administration, salary cost movements 1.6 26.08.93 27.09.93 2:514

0137 l

67 Patterson Invitations to National Gallery official functions 1.7 26.08.93 24.09.93 2:439

0137 r

68 (3) Patterson National Gallery reduction in staff; effects 1.7 26.08.93 24.09.93 2:439

0137 r

69 (4) Patterson Explanation for movements on sa lary, administrative, 1.7 26.08.93 24.09.93 2:439-

program costs, National Gallery 0137 r

70 Patterson Invit ation to National Maritime Museum (NMM) official 1.8 26.08.93 24.09.93 2:445

functions 0137 r

71 (4) Patterson Review of NMM revenue potential; market research; ACDO 1.8 26.08.93 23.09.93 1:317

assistance 0137 r 24.09.93 2:445

11.10.93 3:667

72 (3) Patterson NMM involvement in historic shipwrecks campaign, 1.8 26.08.93 23.09.93 1:319

protection, register D1381 29.09.93 2:518

73 Patterson Invitation to National Film & Sound Archive official 1.9 26.08.93 23.09.93 1:320

functions D1381

74 Patterson Invitation to National Library official functions 1.10 26.08.93 11.10.93 3:667

D1381

75 (3) Patterson Staff years reduction at National Library; effects 1.10 26.08.93 11.10.93 3:668

D1381

76 (2) Patterson National Library strategic plans 1.10 26.08.93 11.10.93 3:668

Dl381

77 Patterson National Library contribution to National Preservation Office 1.10 26.08.93 11.10.93 3:669

D1381

78 Patterson Invitation to National Museum of Australia (NMA) functions 1.11 26.08.93 29.09.93 2:524

D1381

79 (2) Patterson Increase in NMA staff years; reasons 1.11 26.08.93 29.09.93 2:524

D1381

80 (5) Patterson Details of NMA strategic plan consultancies 1.11 26.08.93 29.09.93 2:525-

D138 r

81 Patterson Report on NMA organisation, structure 1.11 26.08.93 29.09.93 2:526

D138 r

82 (3) Patterson SES officers employed 1.11 26.08.93 29.09.93 2:526

D138 r

83 (2) Patterson NMA staff training 1.11 26.08.93 29.09.93 2:527

D138 r

84 (8) Patterson NMA funding 1.11 26.08.93 27.09.93 2:506

D138 r 29.09.93 2:527-

85 Patterson Invitation to NSTC official functions 1.12 26.08.93 23.09.93 1:321

01391

86 Patterson NSTC expenditure on lega l services 1.12 26.08.93 23.09.93 1:319

Dl391 29.09.93 2:518

87 (4) Minchin NMLS salaries, adm inistrative costs, numbers, structures, 2.1, 2.5 26.08.93 22.09.93 1:240

aims D139 r

88 (3) Patterson Australia Counci l funding of 'Bright Young T ree Green' 1.4 6.09.93 22.09.93 1:243

89 Baume Funding for all fi lm 1.1 Dll r 22.09.93 1:244

90 Baume Funding for opera and ballet orchestras 1.1 D14 r 22.09.93 1:245

91 Kemp State breakdown of bodies receiving arts grants 1.1 D16 r 21.10.93 3:797

92 Kemp Details of Australian cultural development foundation 1.1 D19 r 21.10.93 3:800

93 Baume Film Finance Corporation revenue 1992-93 1.1 D20 r 21.10.93 3:801

94 (2) Baume Allocations to Arts Council boards; rises, falls 1.4 D231 27.08.93 1:277

23.09.93

95 Baume Australia Council participation in cultural commission for 1.4 D25 r 23.09.93 1:277

year 2000 O lympics

96 Baume Continuation of Asia-Pacific fellowships 1.4 D27 r 23 .09.93 1:277

97 Baume Why Hello Down There a success 1.5 D30 1 23.09.93 1:278

100 Patterson Outstanding items required from Corporate Impacts on DRP 1.3 D351 30.09.93 3:597

contract

101 Patterson Whether concern about Corporate Impacts' acquittals was 1.3 D361 30.09.93 3:598

reported to minister

102 Patterson Cost of Artcraft Research tracking study on DRP 1.3 D361 30.09.93 3:599

103 Patterson Availability of evaluations of DRP marketing 1.3 D391 30.09.93 3:600

104 Patterson Cost of Keys Young evaluation of Corporate Impacts' 1.3 D37 r 30.09.93 3:599

networking

105 Patterson Cost of Irving Saulwick evaluation 1.3 D37 r 30.09.93 3:599

106 Patterson Payments/acquittals to Corporate Impacts, dates, companies 1.3 038 r 30.09.93 3:601; Suppl.

involved

107 Patterson Copy of receipts/invoices provided to ORP Management 1.3 038 r 30.09.93 3:601; Suppl.

Committee by Corporate Impacts

109 Patterson Corporate Impacts representatives at April meeting to discuss 1.3 039 r 30.09.93 3:604

financial difficulties

110 Patterson Assurances sought from Corporate Impacts at 5 April 1.3 039 r 30.09.93 3:605

meeting

111 Patterson Whether OGIA or Management Committee was informed 1.3 040 I 30.09.93 3:607-

that Corporate Impacts not paying bills; if so, when

112 Patterson Copy of the Corporate Impacts contract to market ORP 1.3 040 r 30.09.93 3:613; Suppl.

113 Patterson Whether Corporate Impacts advised OGIA or Management 1.3 040 r 30.09.93 3:614-

Committee it was in financial trouble

114 Patterson When Commonwealth aware Michael Ward had left i.3 040 r 30.09.93 3:618-

Corporate Impacts - - - . 4-- . - . . ..... - ' ""-· · . . . -- . -T":t.: . ..

115 Patterson Copy of correspondence, fil e notes, re conversations between 1.3 0441 30.09.93 3:622-

OGIA or Management Committee and Corporate Impacts liquidator

116 Patterson Which department(s) wanted to retain the Corporate Impacts 1.3 047 r 30.09.93 3:631

contract

117 Patterson Concerns of Management Committee which led to discussion 1.3 0481 30.09.93 3:632

on breaking of contract with Corporate Impacts

118 Patterson Corporate Impacts network facilitators who worked out of 1.3 048 r 30.09.93 3:653

Commonwealth premises

119 Patterson Network facilitators on leave from federal agencies 1.3 048 r 30.09.93

interim

120 Patterson Largest previous contract with Commonwealth by Corporate 1.3 D50 r 30.09.93 3:655

Impacts

121 Patterson Previous Commonwealth contracts with Corporate Impacts 1.3 D521 30.09.93 3:657

a nd Social Impacts

122 Baume Amount of nitrate fi lm copied 1.9 D68 r 22.09.93 1:246

123 Baume Changed work practi ces in copying ni trate film 1.9 D691 22.09.93 1:247

124 Colston Expenditure on a poss ible move of National Museum to 1.11 D77 r 21.10.93 3:803

parli amentary triangle

125 Baum e Fox consultancy on Aboriginal protests in s-e Australia 1.11 D781 23 .09.93 1:280

126 Baume Whether Mr Fox once employed by Mr Co lin Hollis 1.11 D781 23.09.93 1:280

127 Colston Number of senators, members, receiving letters about official 2.1 D851 17.09.93 1:101

transport

128 Kemp Pay ments to National Prices Network 2.1 D86 r 17.09.93 1:102

129 Parer Es tima te of the cost of clean in g vacant property 2.3 D88 r 22.09.93 1:272

130 Campbell Lease expiry information for departments, agencies 2.3 D92 r 22.09.93 1:273

131 Campbell Government buildings in which th ere will be vacant space 2.3 D931 22.09.93 1:248

132 Campbell Properties on AEM assets register 2.3 D93 r 24.09.93 2:324

133 Parer Cost of servicing A ustral ia n property in Washington & New 2.4 D97 r 22.09.93 1:249

York

134 Parer Press clippin gs service 3.13 D100 r etc 22.09.93 3:664

135 Par<:r Duplica te ads .. for Ministerial Media Group staff 2.5 Dl01 1 17.09.93 1:103

08.10.93 3:664

136 Kemp NMLS monitoring of opposition activity in election period 2.5 Dl02 r 22.09.93 1:252

137 Kemp Fate of NMLS tapes, transcripts, of opposition activity 2.5 D102 r 22.09.93 1:252

138 Kemp Overtime paid to NMLS staff during election period 2.5 D1031 22.09.93 1:253

139 Gibson Notes to the accounts 3.1 Dl08 r 15.09.93 1:2

140 Campbell Building insurance paid by Asset Services on rented 3.1 D111 r 08.10.93 3:665

properties

141 Campbell Availability of Ernst & Young report on DAS businesses 3.1 D112 r 25.10.93 3:853

142 Campbell Response to ANAO comments on Sydney Central 3.2 D117 r 18.10.93 3:672

143 Campbell Rental on AGPS shop, Hobart 3.4 Dl191 24.09.93 2:443

144 Parer CPI/property costs relativities over last four years 3.5 D122 r 22.09.93 1:254

145 Parer Transport of goods to, from, the Lodge etc since December 3.9 D1271 22.09.93 1:271

1991

146 Parer Storage undertaken for former PM Hawke 3.9 D128 r 17.09.93 1:68

147 Campbell 29 properties targetted for sale; those sold 3.14 D1291 24.09.93 2:446

148 Minchin Contract with Australian Capital Auctioneers 3.10 D130 r

149 Campbell A TO advice on revenue implications of DASFleet v leasing 3.10 D1321 27.09.93 2:516

151 Parer Reconciliation of AGAL community service obligation 3.3 D285 r 18.10.93 3:691

funding

152 Parer Documentation re leasing of Centenary House nps D2871 04.11.93 7:1553-

153 Parer Who in APG arranged lease of Scrivener Bldg for AUSLIG 3.5 D2881 21.10.93 3:804

154 Parer Documentation re leasing of Scrivener Bldg 3.5 D288 r 21.10.93 3:810-

155 Campbell Details of property adjustments 3.5 D2891 21.10.93 3:805

...

156 Parer Regional manager who allocated the Centenary House 3.7 D291 r 26.10.93 3:889

valuation job

157 Parer Date officer concerned with AVO work on Centenary House 3.7 D2951 26.10.93 3:889

left the Department i

158 Parer Owner's request for 10.5% rental escalation rate 3.7 D2961

159(4) Parer 9% escalation for space in MLC building; valuer; date; length 3.7 D2961 26.10.93 3:890

of lease

160 Gibson Whether APG has entered into other 15-year leases 3.6 D296 r 26.10.93 3:891

161 Gibson 10-year plus leases without market reviews 3.7 D2971 26.10.93 3:89 1

162(2) Campbell Centenary Ho use rental - implication of graphs; starting point 3.7 D304-5 18.10.93 3:692

163 Minchin Decision to rent prem ises for ANAO rather than build 3.7 D306 r 21.10.93 3:807

164 Parer Internal A YO review of Centenary House rental decision 3.7 D307 r 26.10.93 3:891

165 Kemp Review of computer booking system 3.8 0315 I 18.10.93 3:693

166 Parer Comcar staff within 12 months of retirement offered 3.8 D3151 18.10.93 3:693

redundancy packages

167 Pa rer Details of Comcar redundancy package 3.8 D315 r 18.10.93 3:694

168 Parer Per hour Comcar costs compared with hire cars 3.8 D3171 18.10.93 3:708

169 Ca mpbell Women's desk officer position - salary; occupant 5 03231 25.10.93 3:835

170 Campbell Property adjustment program activities in last 2 years 5 0323 r 25.10.93 3:836

171(6) Campbell Reports on business activities by: Coopers & Lybrand; BIS 5 D3241 25.10.93 3:841

Shrapnel; Mciver; Deloittes; Ray Edwards; John White interim

172 Minchin Briefing paper on new t1ag 5 D3281 18.10.93 3:709-

173 Parer Activities since election re new t1ag, links with Britain 5 D330 r 18.10.93 3:744

174 Minchin Companies not awarded contracts for failure to comply with 5 D3331 26.10.93 8:

affirmative action guidelines

175 Bishop When Centenary House lease signed 3.5 D3351 25.10.93 3:842

176 Bish op Properties for which APG pays rent as a business 3.5 03371 25.10.93 3:843

177 Bishop Chronology of commercialisation of DAS divisions 3 D339-40 21.10.93 3:808

178 Bishop AEM funding for legal fees 2.3 D3411 25.10.93 3:845

179 Bishop Break-up of $2.5m legal fees 5 D3441 25.10.93 3:846

180(2) Bishop Provision of legal advice to the minister 5 D345 I 26.10.93 8:

181 (2) Bishop Role of Australian Government Sol icit or in leases 5 D345 I 25.10.93 3:849

182 Parer Person-hours spent on policing disclosure returns 7 D3481 22.10.93 3:818

183 Minchin Study of return-to-sender mail 7 D351 r 22.10.93 3:819

184 Minchin Survey of voter attitudes; exit poll 7 D3521 21.09.93 3:811; Suppl.

185 Parer/Minchin Consultancies 7 D3521 21. 09.93 3:812

186 Minchin Benefits of Soundex name-match ing system 7 D352 r 22.10.93 3:824

187 Campbell Last valuation of the Hotel Kurrajong 3.7 D353 r 26.10.93 8:

188 Minchin Electoral roll review 7 24.9.93 22.10.93 3:826

189 Patterson Keys Young evaluation of the marketing of the disability 1.3 D4041

reform package by Corporate Impacts

190 Patterson Saulwick review of the marketing of the disability reform 1.3 D4041

packa ge by Corporate Impacts

191 Patterson Disparity between Arthur Anderson figure and that submitted 1.3 D408 r

by Corporate Impacts to ASC re moneys outstanding

192 Patterson Commonwealth's intentions re moneys owed by Corporate 1.3 D410 1

Impacts to unsecured creditors

193 Patterson Corporate Impacts' employees working out of departmental 1.3 D410 I

offices

194 Patterson Correspondence between OGIA, liquidator of Corporate 1.3 D410 r

Impacts

195 Campbell Building insurance difference between government- owned and 3 D419 1

private property

196 Campbell Difference between long-term bond rate and prime lending 3 D4211

rate

197 Bishop Rent paid by ATO in Perth D424 r

198 Campbell Details of fees and commissions not part of service agreement 3.2 D4281

199 Campbell Will Finance provide supplementation for higher property 3.7 D430

adjustment

200 Campbell Rental valuation of ATO's Northbridge premises 3.7 D430 r

201 (2) Campbell Expected timetable, outcomes, of property rationalisation 3.14 D431 r

program; involvement of property adjustment program

202 Parer Why Centenary House lease no t to be a model for others 3.5 D4471

203 Bishop, Details of other leases with fixed escalator of 9%; of 3.5 D447 r

Campbell Tasmanian lease a t 9.5 %

204 Bishop Date ANAO provided fitout specification 3.5 D451 r

205 Bishop Whether signing of Centenary House lease delayed over 3.5 D4551

number of car spaces

206 Bishop Copy of Centenary House lease, as signed 3.5 D455 r

207 Parer AVO advice on APG lease terms 3.5 D460 r

208 Bishop Progress payments since 23 April 1992 on variations to 3.5 D4641

building documentation

209 (4) Bishop Centenary House fitout costs, changes, documentation 3.5? D465 I

210 Campbell Example of effec tive net rental higher than Centenary House 3.5 D472 r

211 Campbell Capit ali sation rate in recent sa les 3.5 D480 r

212 Parer Rental paid a t John McEwen House 3.7 D484 r

213 Campbell Details of rentals of significant size in Canberra over last 12 3.7 0490 I

months

214 Parer Contact between minister or his office to facilitate Centenary 5 0 490 r

H o us e lease

215 Parer Any internal DAS investigation into Centenary House lease; 5 0491 I

if so, o utcome

ESTIMATES COMMITfEE D- BUDGET ESTIMATES 1993-94

Questions taken on notice by the Treasury portfolio

r=;. Senat or Subject Program Date Date reply Additional

number number received or received lnfonnation

(parts) Hansard vol: page

page/column

1 Short Breakdown of cost of revised budget measures 1.1 D142 r 30.09.93 4:894

2 Harradine Impact of petrol prices due to CPI ind exa tion & state taxes 1.1 D1441 30.09.93 4:895-

3 Short Rate of indexation used for determining pension, benefit, rises 1.1 D151 I 30.09.93 4:900

in modelling

4 Sho rt Impact of tobacco excise rises on low income earners 1.1 D152 r 30.09.93 4:901

5 Short Basis for PM's statement to ACTU most households would be 1.1 D1581 30.09.93 4:923

better off under budget

6 (2) Short Differences between Prismod figures and Treasurer's statements 1.1 D1591 30.09.93 4:924

re effect of ori ginal budget on pensioners, certain A WE groups; effects if bracket creep included

7 Short Comparison of Warren, Prismod analyses 1.1 D161 r 30.09.93 4:925-

8 Gibson Increase in revenue by 1996-97 deriving fr om bracket creep 1.1 D1621 30.09.93 4:927

9 Short Budget de fi cit if cert ain exclu sions made: asset sales; special 1.1 D164 r 30.09.93 4:928-

divid e nds ; nega tive contingency reserve; bond premium; increase in Rese rve Bank pro fits

10 Sh ort Reasons fo r anticipated rea l in crease in tax revenue 1.1 Dl66 1 30. 09.93 4:930

11 Short Effec t o n unempl oyment if 500,000 jo bs created in 3 years 1.1 D1 67 r 26.10.93 4:1015

12 Pa rer Comm itt ee to fo ste r Darwin as Australia's ga teway to 1. 2 D1 71 I 30.09.93 4:933

13 Short Dr FitzGerald or his consulting group commissioned for savings 1.2 D171 r 30.09.93 4:938

study

14 (2) Short Treasury staff involved in savin gs study; cost of staff time 1.2 Dl721 30.09.93 4:939

15 Parer Es tim ate of total Commo nwealth debt at end 1996-97 1.3 D1741 30.09.93 4:940

16 Parer Comparative income tax rates fo r companies, individuals, in 1.4 D180 1 30.09.93 4:941-

Australia and 8 As ian countries

17 Gibson Apparent discrepancy between staffing and sa laries es timate 1.4 D1811 26.10.93 4:1012

18 (5) Harradine Impact of policies on family per capita income (access to nps D184 r 30.09.93 4:946-

superannuation; in come sha rin g for tax purposes)

19 Harradine Impact o n petrol prices due to CPI, state taxes 1.1 D184 r 30.09.93 4:895

20 Harradine Marginal cos t pricing of public utilities 1.2 D184 r 30.09.93 4:952

2 1 Harradine Welfare gains from priva tisi ng natural monopoli es 1.2 D184 r 30.09.93 4:953

22 Harradine Fin a ncing of dividends from statutory authorities 1.2 D1851 30.09.93 4:954-

23 Harradine Impact of user charges o n cost structure of economy, on 1.2 D185 1 30.09.93 4:956

di st'ribution of income between individuals and families

24 Harradine Productivity gains from GBE refo rms not passed on to 1.2 D185 1 30.09.93 4:957

cus tomers

25 (2) Harradine PSA view o n charging full cost recovery for essential servi ces 1.2 Dl85 1 30.09.93 4:958

26 Harradine Social justice o f public debt interes t e tc be ing a lega l li ability of 1.3 D185 1 30.09.93 4:960-

the Commo nwealth

27 (4) Harradine Eq uity of taxa tio n arrangements for individ ua ls/families 1.4 Dl85 r 30.09.93 4:963

28 Harradine Impact of Budget measures o n one-income Tasmani a n families 1.4 Dl85 r 30.09.93 4:896

29 Harradine Acc uracy of Prismod predictions of effect of Budget on ou tlyi ng 1.4 D185 r 30.09.93 4:964

states, rural areas

30 (7) Harradine Impact of higher petrol prices on urbanisa ti on; economic, 1.4 0185 r 30.09.93 4:967

environ mental costs of urba ni sa tion

31 Harradin e Extension of zone a ll owa nces to regional centres 1.4 0185 r 30.09.93 4:968

32 (6) Harradine Choice of individ ual as tax uni t a neutral benchmark? 1.4 0186 1 30.09.93 4:965,969

33 Harradine Equity of reba tes of chi ld care expenses 1.4 0 186 30.09.93 4:970

34 (6) Ha rradine Im pact of economic poli cy measures on fertili ty ra tes 1. 4 01861 30.09.93 4:974

35 Harradi ne Denial of first $250 self-education expenses 1.4 0186 r 30.09.93 4:975

36 Harradine Research on incentive effects of tax deductions for gifts to 1.4 01 86 r 30.09.93 4:976

charities

37 Harradine Proportion of total direct, indirect, tax borne by fami lies 1.4 0186 r 30.09.93 4:977

38 Harradine Ratio of tax to per capita income for diffe rent classes of 1.4 0186 r 30.09.93 4:977

taxpayers

39 (2) Harradine Proportion of GOP earned by capital, labour, land, and 1.4 0186 r 30.09.93 4:978

percentage of income pa id in tax 1982-83 and projected for 1993-94

40 (6) Harradine Tax treatment of lump sum payments of unused annual leave, 1.4 01861 30.09.93 4:980-

long service leave; Asprey Committee recommendations; workers affected;

41 (2) Harradine Average equivalent marginal tax rate pre-, post, Budget 1.4 01871 30.09.93 4:1001

42 Harradine Application of the $150 low income earner reba te 1.4 0187 l 30.09.93 4:1002

43 Harradine Loss to efficiency of economy of Budget tax changes 1.4 01871 30.09.93 4:1003

44 Harradine Factors considered in OECD tax comparisons 1.4 01871 30.09.93 4:1004

45 (3) Harradine Consequences o f retrospective tax legislation; investment in 1.5 0187 r 30.09.93 4:1007

human capital

46 Harradine World Bank assert ions that population growth an impediment 1.6 0187 r 30.09.93 4:1008

to development

47 (2) Harradine Listing of archived files; where held 4.2 0187 r 26.10.93 4:1013

48 (3) Harradine SES cars; fringe benefit implications 4.2 0187 r 30.09.93 4:1009

49 (5) Short Research studi es, opinion polls commissioned nps 16.08.93 24.09.93- 4:1023,1027,

1044,1180,1188

50 (5) Short Advert isin g, promotional projec ts undertake n nps 16.08.93 24.09.93- 4:1023,1028

1038,1177,1187

51 (2) Short Grants to trade unions or community gro ups nps 16.08.93 24.09.93- 4:1030,1185,

1187

52 (6) Patterson Consultancies re women's iss ues 4.1 24.08.93 01.09.93- 4:1033,1046,

1058,1167

53 (3) Patterson Information on, copies of, invitati ons to launch of, publica tions 4.1 24.08.93 01.09.93- 4:1034,1047

etc. on women's issues 1025,1059,1168

54 (3) Patterson Reports to OSW on eq ual opportunity appointments 4.1 24.08.93 01.09.93- 4:1032,1025,

1048,1060,1069

56 Harradine User charge fees paid by Parliamentary Library 5.1 0195 r 27.09.93 4:1051

57 Harradine Access to the Parliamentary Library database 5.1 0196 r 27.09.93 4:1052

58 Parer Cost of provision of statistical services to federal parliament 5.1 0196 r 27.09.93 4:1053

59 Parer Satisfaction with current pricing policy re provision of 5.1 0196 r 27.09.93 4:1053

information to parliament

60 Parer Avail ability of ABS information to the media 5.1 01971 27.09.93 4:1054

61 Hill Timing, content, of instructions to OPC re Taxation (Deficit 5.1 0198 r 18.10.93 4:1064

Reduction) Bill 1993

62 Hill When OPC advised ATO there were no constitu tional problems 5.1 0203 r 18.10.93 4:1066

with Taxation (Deficit Reduction) Bill 1993

63 Bishop Graph, figures, showing most successful profi t centres 5.1 0214 r 18.10.93 4:1067

64 Bishop Table showing the agei ng of deb t, inso lven cy 5.1 0215 I 18.10.93 4:1069

65 Bishop Breakdown of income tax debt 5. 1 0216 r 18.10.93 4:1069

66 Bishop Unpaid PAYE instalments by Mr Charles Wright 5.1 02171 18.09.93 4:1063

67 Watson Provision for doubtful HECS debts 5.1 0222 r 05.10.93 4:1070-

18.10.93

68 Bishop Penalty interest rate 5.1 0234 r 18. 10.93 4:1073

69 (2) Gibson Average size of debts written off, per category; di strib utio n 5.1 0 235 I 18. 10.93 4:1074

70 Bishop Reciprocity as a solution to trade practices di ffere nces between 8.1 0241 r 26.10.93 4:1175

Australia New Zealand

71 Harradine Equivalent marginal tax ra tes va ri ations fo ll owi ng $150 low 6.1 02811 18.10.93 4:1077-

income rebate

72 Harradine Tax treatment of expenses incurred by family day carers 6. 1 0 281 1 18.10.93 4:1114-

73 Harradine Deductibi lity of cleaning expenses for nurses' uniforms 6.1 02811 18.10.93 4:1117-

74 Harradine Ruling on limitation of liabil ity in a limited partnership 6.1 02811 18.10.93 4:1120-

75 Harradine Representations re tax treatment of friendly society scholarship 6.1 02811 18.10.93 4:1133-

funds

76 Harradine Tax deductibility of employee contributions for superannuation 6.1 0281 r 18.10.93 4:1152

pensions

77 Harradine Social justice implications of fringe benefits tax on employer 6.1 0281 r 18.10.93 4:1010

payments for spouse child care 4:1153

78 Harradine Tax position of non-resident superannuation pensioners 6.1 0281 r 18.10.93 4:1154

79 Harradine Tax deductibility of Australian donations to UK charitable trust 6.1 02811 18.10.93 4:1156

80 Harradine Industry Commission advocacy of full cost recovery for public 7 0282 29.09.93 4:1164

utilities

81 Parer OAA indicative figures for expenditure on a yearly basis 1.5 0359 r 01.10.93 8:

82 Parer Number of government credit cards on issue in Treasury 4.2 0363 r 26.10.93 4:1021

83(11) Boswell Consequences of proposed changes to charter of 2.1 1.10.93 26.10.93 4:1017-

Commonwealth Development Bank

84(9) Patterson Group tax owed by Corporate Impacts 6 30.09.93 4:1056

85(6) Bishop Capital gains tax 6 0537

ESTIMATES COMMITrEE D - BUDGET ESTIMATES 1993-94

Questions taken on notice by the Finance portfolio

Q. Senator Subject Program Date Da te reply Additional

number no. received o r received Information

(parts) Hansard vol: page

page/ column

1 Bishop Letter to Coopers & Lybrand commissioning analysis of 1.1 D245 r 24.09.93 5:1228·

Midfo rd Paramount com pensa tion claim

2 Watson CSS/PSS participation in surveys 4.1 02571 24.09.93 5:1225

3 Bishop Letter from Mr Mellors to Mr Taylor defending terms of 8 0275 r 08.10.93 5:1235-

Centenary House lease

4 (5) Parer Sale of the uranium stockpile 6 0283 l,r 24.09.93 5:1226-

5 (5) Short Research studies, opinion polls commissioned nps 16.08.93 31.08.93 5:1192-

6 (5) Short Advertising, promotional projects undertaken nps 16.08.93 31.08.93 5:1195-

7 (2) Short Grants to trade unions, community groups nps 16.08.93 31.08.93 5:1197

8 (6) Patterson Consultancies re women's issues nps 24.08.93 01.09.93 5:1199-

9 (3) Patterson Information on, copies of, invitations to launch of, nps 24.08.93 01.09.93 5:1201-

publications etc on women's issues

10 (3) Patterson Reports to OSW on equal opportunity appointments nps 24.08.93 01.09.93 5:1223

11 Parer Centenary House correspondence 2 17.09.93 03.11.93 7:1429-

12 Parer Payment to APG for negotiating Centenary House lease 8 0512 r 26.11.93 8:

13 (4) Patterson Opposition access to publications on women's issues nps 0524 r

ESTIMATES COMMITrEE D- BUDGET ESTIMATES 1993-94

Questions taken on notice by the Industrial Relations portfolio

Q. Senator Subject Program Date received Date reply Additional

number number or Hansard received Information

(parts) page/column vol: page

1 (5) Short Research studies, opinion polls commissioned nps 16.08.93 07.09.93 6:1320-

2 (5) Short Advertising, promotional projects undertaken nps 16.08.93 07.09.93 6:1348-

3 (2) Short Grants to trade unions or community groups nps 16.08.93 07.09.93 6:1331-

4 (6) Patterson Consultancies on women's issues nps 24.08.93 07.09.93 6:1294

5 (3) Patterson Publications on women's issues nps 24.08.93 07.09.93 6:1295

6 (5) Patterson Details of the Australian Women's employment strategy 30.08.93 07.09.93 6:1296

7 (9) Patterson Details of the Department of Labour Advisory Committee 1.1 30.08.93 07.09.93 6:1297-

Working Party on Women's Issues

8 (2) Patterson Affirmative Action Agency - publications; consultancies 1.1 24.08.93 07.09.93 6:1300-

9 (5) Patterson Expenditure of Work and Family Unit 1.1 24.08.93 07.09.93 6:1309-

10 (7) Patterson Expenditure of Equal Pay Unit 1.1 24.08.93 07.09.93 6:1313-

11 Minchin Staffing level 1991-2 in Policy Development and Advice sub- 1.1 D367l 26.10.93 6:1365

program

12 Crane Copy of ILO convention 156 1.1 D369 r 26.10.93 6:1357-

13 Crane Expenditure on BLF amalgamations in SA, Qld 1.2 D377l 26.10.93 6:1363-

14 Crane Average time-frame for union amalgamations 1.2 D377 r 26.10.93 6:1387-

15 Crane Derivation of estimate to actual expenditure, Workplace 1.2 D381 r 26.10.93 6:1393

Reform and Best Practices Program

16 Crane TUTA's chargin g po licy fo r co urses 1.7 0 386 1 26.10.93 6: 1394-

17 Crane Co py of Training Profile of F ull Time Union Offici:Jis 1.7 03871 26.10.93 6: 1397-

18 Crane Terms of reference for research into trainin g needs of trad e 1.7 0387 1 26.10.93 6: 141 9-

un io n o ffi cials

19 Crane Copy of re port into training needs of trade union o ffi ci al s 1.7 0387 I not ye t

ava ilable

20 Minchin Co mca re's acco un ts 2.4 0393 r 26.10.93 6:1423-

21 Minchin Ti ming of expenditure on info rmation campaign on new IR 3.1 03971 26.10.93 6:1425

leg islation

22 Minchin Cost, 1992-93 , of departmental overseas travel; es timate 1993- 3.2 0397 r 26.10.93 6:1426

94

23 (6) Chapm an Ma nagement of redundancies 3 0399 r 26.10.93 6:1427

\

FSI1MATES COMMIITEE D

Minutes of Proceedings

No.13

Tuesday, 9 November 1993

L MEETING: The Committee met in public session at 9.33am in Senate Committee Room 2S3. Senator Coates took the Chair.

2. PARTICUlARS OF PROPOSED EXPENDITURE FOR 1993-94: ARTS AND ADMINISTRATIVE SERVICES PORTFOliO. The Committee commenced its supplementary consideration of the proposed expenditure of the Arts and Administrative Services portfolio.

In attendance was the Minister for the Arts and Administrative Services, Senator McMullan, accompanied by the following officers:

Department of the Arts and Administrative Services Mr N. Smail, Assistant Secretary, Arts, Cultural Development Mr S. Perry, Former Assistant General Manager, Office of Government Information and Advertising Mr P. Rutledge, Assistant General Manager, Office of Government Information

and Advertising Mr R. Williams, General Manager, Australian Estate Management Mr P. Atkinson, Manager, Finance, Australian Estate Management Mr I. Lynch, Assistant Director, Business Development, Australian Estate

Management Ms C. McFadden, Senior Property Manager, Australian Estate Management MrS. Palywoda, Executive General Manager, Commercial Mr I. Woonton, General Manager, Asset Services Mr T. Halestrap, General Manager, Australian Construction Services Mr M. Prior, National Director, International Marketing, Australian Construction

Services Ms C. Argall, General Manager, Australian Property Group Mr A. Gallery, Adviser on Property, Australian Property Group Mr G. Bashford, General Manager, Australian Surveying and Land Information

Group Mr D. Hobson, Manager, Corporate Services, Australian Surveying and Land Information Group Mr M. Coleman, General Manager, Australian Valuation Office Mr B. Hurrell, Regional Manager ACT, Australian Valuation Office Mr R. Gibson, Acting General Manager, D asfleet Mr C. Allen, National Leasing Manager, Dasfleet Mr G. Williams, General Manager, Commercial Treasury, Business Support Mr T. Barrell, General Manager, Corporate Resources, Property Rationalisation

Mr J. Mellors, Executive General Manager, Corporate Management Mr T. Barrell, General Manager, Corporate Resources Mr B. Peel, Acting General Manager, Corporate Policy and Government Relations

Mr P. Ferrari, Acting Assistant General Manager, Corporate Policy Branch

179

Mr H. Hoefnage!s, Acting Assistant General Manager, Portfolio Finance and Corporate Planning Mr C. Brinkley, Acting Assistant General Manager, Staff Adjustment Program

Department of Finance: Ms M. Messner, Chief Finance Officer, Consumer Service Business Section, Transport and Government Division

The Chair called on the following matters of which notification had been provided to the Committee secretariat by 3 November:

Sub-program 1.3: Office of Government Information and Advertising The contract to market the Disability Reform Pa ckage

Program 3: Business Services Ernst & Young review, June 1992

Sub-program 3.1 : Asset Services Commercial competitiveness/business costs (building insurance)

Sub-program 3.2: Australian Construction Services Overseas operations

Sub-program 3.5: Australian Property Group Staffing

Sub-program 3.6: AUSLIG Property adjustment program

Sub-program 3.7: Australian Valuation Office Performance indicators

Sub-program 3.10: DAS Fleet Leasing arrangements to the public and private sectors

Sub-program 3.14: Property Rationalisation General operation of program

Program 5: Corporate Management Staff adjustment, property adjustment, programs

Sub-program 2.3: Australian Estate Management Centenary House lease

3. PRIVATE MEEI1NG: The Committee suspended its supplementary consideration of the proposed expenditure for the Arts and Administrative Services portfolio at 1.46pm for a brief private meeting to consider the question of media access to the hearing.

180

4. RESUMYfiON OF PUBUC HEARING: The Committee resumed its public hearing at 1.58pm. The Chair announced the decisions of the Committee. It was agreed that each print organisation with a still photographer be allowed to take photos for a five minute period each, one at a time. The Committee did not agree

to permit cameras from the television networks but decided that the networks be reminded of the service provided by the Sound and Vision Office.

The Chair called on the following matters:

Sub-program 3.5 : Australian Property Group Centenary House lease

Sub-program 3.7: Australian Valuation Office Centenary House lease

The Committee concluded its supplementary consideration of the estimates of the Arts and Administrative Services portfolio.

5. PARTICULARS OF PROPOSED EXPENDITURE FOR 1993-94: FINANCE PORTFOUO. The Committee commenced its supplementary consideration of the proposed expenditure of the Finance portfolio.

In attendance was the Minister for the Arts and Administrative Services, Senator McMullan, representing the Minister for Finance, accompanied by the following officers:

Department of Finance: Mr E. Thorn, Deputy Secretary Mr I. McPhee, First Assistant Secretary, Financial Management Division Mr J. Galloway, Assistant Secretary, Resource Policies and Management Branch Mr M. Kennedy, Assistant Secretary, Financial Administration Advisory Branch Mr B. Cooney, Director, Arts and Administrative Services Branch Mr W. Turner, Assistant Director, Public Administration and Accounting

Development Branch

Australian National Audit Office: Mr J. Taylor, Auditor-General Mr W.J. Cockrane, Acting National Business Director, Performance Audit Mr John Meert, Acting Group Director, Performance Audit

Ms Lucy Bitmead, Acting Executive Director, Executive Support Branch

The Chair called on the following matters of which notification had been provided to the Committee secretariat by 3 November:

Program 2: Resource Management Framework Centenary House lease

Program 8: Australian National Audit Office Centenary House lease The adequacy of Audit Office funding

181

Sub-program 5.1: Administration of Act of Grace. Payments :and Waivers, and Program 7: Corporate Services .

Compensation arising out of the JCPA rnquiryinto the .Midford Paramount case

Program 8: Australian National Audit Office

Non-program specific Response to Senator Patterson regarding women's publications The financial and economic implications of Mabo The Budget deficit

The Committee concluded its supplementary consideration 9f the estimates of the Finance portfolio.

6. PARTICUlARS OF PROPOSED EXPENDITURE FOR 1993-94: TREASURER'S PORTFOUO. The Committee commenced its supplementary consideration of the proposed e)(penditure of the Treasurer's portfolio.

In attendance was the Minister for the Arts and Administrative Services, Senator McMullan, representing the Treasurer, accompanied by the following officers:

Department of the Treasury: Dr A. Preston, Deputy Secretary, Fiscal Mr D . Borthwick, Deputy Secretary, Structural and Financial Mr N. Hyden, Acting Deputy Secretary, Economic Mr R. Shogren, First Assistant Secretary, Fiscal Policy Division Mr T. Hinton, First Assistant Secretary, Investment and Debt Division Mr B. Cassidy, First Assistant Secretary, Structural Policy Division Mr A. Sinodinos, Acting First Assistant Secretary, Economic Division Mr J. Jepsen, Acting First Assistant Secretary, Taxation Policy Division Mr M. Callaghan, Acting First Assistant Secretary, International Economy Division Dr M. Parkinson, Assistant Secretary, Economic Conditions Branch, Economic

Division Dr B. Gray, Assistant Secretary, Senior Adviser, Economic Division Mr T. O'Brien, Assistant Secretary, Indirect Taxation and Quantative Analysis Branch, Taxation Policy Division Ms K. Chester, Acting Assistant Secretary, Investment Policy Branch, Investment

and Debt Division Ms J. Aked, Director, Accounting and Finance Directorate Mr P. Mcinerney, Assistant Director, Accounting and Finance Directorate Mr T. Urbanski, Acting Assistant Secretary, Budget Policy Branch, Fiscal Policy

Branch Mr P. Garson, Director, Budget Review Section, Fiscal Policy Division

The Chair called on the followipg matters of which notification had been provided to the Committee secretariat by 3 November:

Sub-program 6.1: Income Tax and Sub-program 6.3: Corporate Support The affairs of Mr Charles Wright Extension of the application of the Capital Gains Tax.

182

Program 1: Economic Policy Economic modelling The financial and economic implications of Mabo The Budget deficit Economic conditions.

The Committee ordered the incorporation in the Hansard transcript of questions on notice from Senator Bishop.

The Committee concluded its supplementary consideration of the estimates of the Treasurer's portfolio.

7. ADJOURNMENT: The Committee adjourned at 11.53pm.

8. ATTENDANCE: Senators Coates, Bishop, Carr, Gibson, Murphy and Parer. Senators Campbell, Hill, Patterson and Short also attended. An apology was received from Senator Minchin.

CONFIRMED:

/ '--:ev-1;:; 1 " - '"'-' l---0 ' J lj T John Coates Chair

183

TilE SENATE

FSTIMATES COMMITfEE D

Minutes of Proceedings

No.l4

Tuesday 9 November 1993

1. MEEI1NG: The Committee met in private session at 1.46pm outside Senate Committee Room 2S3. Senator Coates took the chair.

2. MOTIONS: Senator Parer moved that both moving and still media be permitted to attend the Committee hearing without restriction. After discussion, Senator Parer withdrew the motion.

Senator Parer moved that each print organisation with a still photographer be allowed to take photos for a five-minute period each, one at a time. The motion was put and carried.

Senator Parer moved that cameras from the television networks be permitted to record the hearing, provided that they did not interrupt the proceedings of the Committee. Debate ensued. The motion was put and lost.

Senator Carr moved that the television networks be reminded of the service provided by the Sound and Vision Office. The motion was put and carried.

3. ADJOURNMENT: The Committee adjourned at 1.58pm.

4. ATTENDANCE: Senators Coates, Carr, Gibson, Murphy and Parer.

CONFIRMED:

/} / (/

. -(L '-i..- "''""'. - c•n .. . t;:; i

/I .. John Coates Chair

184

TilE SENATE

ESfiMATES COMMTITEE D

Minutes of Proceedings

No.15

Thursday 25 November 1993

1. MEEfiNG: The Committee met in deliberative session at 9.41am in Senate Committee Room 2Sl. Senator Coates took the chair.

2. MINUTES: The Committee resolved to confirm the minutes of meetings nos. 13 and 14, held on 9 November 1993.

3. CONSIDERATION OF CHAIR'S DRAFT REPORT: The Chair informed the Committee that it had not been his intention to prepare a draft report on the supplementary meeting but, following receipt of a letter from Senator Parer, he had done so.

Senator Murphy moved that the Chair's draft report be adopted as the report of the Committee. There being three votes for the motion and three votes again st, the Chair exercised his casting vote in favour of the motion, which was therefore carried.

To allow time for the completion of the foreshadowed Opposi ti on minority report, the Committee agreed that the report be either presented to the President during the week of 29 November 1993 or tabled on Monday 6 December, at the discretion of the Chair.

4. ADJOURNMENT: The Committee adjourned at 9.53am.

5. ATTENDANCE: Senators Coates, Bishop, Colston, Gibson, Murphy and Parer. An ar.ology was received from Senator Minchin.

CERTIFIED CORRECT:

John Coates Chair

185

AUSTRALIAN SENATE

ESTIMATES COMMfl"IEE E

REPORT TO THE SENATE

OCfOBER 1993

187

Table of Contents

Members of the Committee

Report to the Senate

Minutes of Meetings

TABLE OF CONTENTS

Table of Contents for Hansard of Public Hearings

188

Page

iii

1

9

27

Chairperson:

Members:

MEMBERS OF THE COMMTITEE

SenatorS. West

Senator N. Crichton-Browne Senator J. Devereux Senator A Ferguson Senator D. Foreman Senator I. Macdonald

(New South Wales)

(Western Australia) (Tasmania) (South Australia) (South Australia) (Queensland)

Senator J. Tierney (New South Wales) replaced Senator Crichton-Browne for the consideration of the Estimates for the Department of Transport and Communications.

Senator G. Chapman (South Australia) replaced Senator Macdonald for the consideration of the Estimates for the Department of Transport and Communications and the Department of Industry, Technology and Regional Development.

Secretary:

Research Staff:

Mr Frank Nugent

Ms Virginia Buring Ms Cheryl Scarlett Ms Veronica Strkalj

189

&timates Committee 'E'

REPORT TO TIIE SENATE

1. Estimates Committee 'E' presents its report to the Senate.

INTRODUCTION

2. On 19 August 1993, the Senate referred to the Committee the particulars of proposed expenditure for 1993-94 and the expenditure under the advance to the Minister for Finance for the year ending 30 June 1993 in relation to the following portfolios:

Transport and Communications Industry, Technology and Regional Development Tourism Environment, Sport and Territories

3. These expenditures were considered by the Committee which took into account the Program Performance Statements provided by each Department and the information obtained through its hearings on 26 August, 2, 21 and 29 September 1993. The Committee has heard evidence from the Minister for Science and Small Business (Senator the Han Chris Schacht) and from officers of the Departments and agencies concerned on the estimates for the Tourism, Industry Technology and Regional Development. and Environment Sport and Territories Portfolios. The Committee also

heard evidence from the Minister for Transport and Communications (Senator the Han. Bob Collins) and from officers of the Department and agencies on the estimates for the Transport and Communications portfolio.

4. The Committee tables for the information of the Senate 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 volumes entitled "Additional

Information Provided During Estimates Committee E's Examination of Expenditure for 1993-94". Bulky bound documents not suitable for inclusion in the Additional Information

190

which were furnished as part of answers have been listed in the Additional Volumes, tabled separately and are available for viewing on request.

5. The Committee wishes to bring certain matters of interest to the attention of the Senate.

TOURISM PORTFOLIO

Australian Tourist Commission

6. During the hearing concerns were raised by Senator Macdonald about the membership of the Australian Tourist Commission being concentrated in New South Wales. Of the nine members of the Board seven are based in New South Wales, one in Victoria and one in the Australian Capital Territory. In response Senator the Han Chris Schacht said:

I will certainly ensure that your view .... is considered and that in future

consideration be given to people with the expertise - that is the first criterion -from other areas of Australia. (Hansard E 8)

INDUSTRY, TECHNOLOGY AND REGIONAL DEVELOPMENT PORTFOLIO

Office of Northern Development

7. Senator Tambling suggested that an inter-departmental committee be established

to help co-ordinate the activities in Darwin of the Office of Northern Development, the new Department of Foreign Affairs office, the Wran committee and North Australian Export Unit. The Minister, the Han Chris Schacht, agreed that the suggestion was not unreasonable and would be considered. (Hansard E 78)

Diesel Fuel Rebate Levy

8. On Thursday, 26 August, Senator Ferguson raised concerns about the amount of the levy and the manner in which it was being imposed. According to his preliminary calculations the cost of administering the scheme was only about half the amount to be collected through the levy. He suggested that, if this were the case, the levy could not be charac terised as an administrative fee and it was in fact a tax which could only be

imposed through legislation. In response, the Minister, the Han Chris Schacht, advised that he understood that legislation was not necessary.

191

9. On Thursday, 2 September 1993, the Committee re-opened this issue for further discussion at the request of the Minister, the Han Chris Schacht. The Minister tabled a document setting out the Department's estimate of the costs of administering the Diesel Fuel Rebate Scheme. The Minister also stated that he had sought further information from Departmental officers on the question of whether legislation was necessary and had been advised that drafting instructions had been issued. Departmental staff explained that they had formed the opinion that, whether the charge was characterised as a tax or as a fee-for-service, legislation would be necessary in any case. This opinion was supported by parliamentary counsel and drafting instructions had been issued prior to the hearing on 26 August 1993.

10. The question of whether misleading information was provided to the Committee on 26 August 1993 has been referred to the Committee of Privileges.

TRANSPORT AND COMMUNICATIONS PORTFOUO

Complaints Against Telstra

11. Senators Alston and Boswell raised concerns about Telecom's handling of complaints by the Casualties of Telecom group. Telstra and Austel officers were examined at length about these complaints, the amount of compensation paid to the complainants, Telecom's attitude towards complainants and the powers of Austel to take action in these cases. The Senators acknowledged that the Minister, the Han Bob Collins, had done all that he could have done on this issue. The Minister advised the Committee that the Minister for Communications, the Han David Beddall, would be meeting the Chairman of the Board of Telstra the following day about a different matter and that he would ensure that this matter was raised at that meeting. (Hansard E 259-264 & 267-269)

GENERAL MATTERS

Form of answers to questions on notice

12. Answers to questions on notice are required by Committee members as soon as possible after they have been made available by Departments and agencies. Many departments facilitate the prompt distribution of answers by providing multiple copies of answers. The Committee considers that this practice should become universal and th at, wherever possible, 10 copies of any information should be provided to enable its

immediate distribution to members.

192

Hearings Timetable

13. This year's hearings began on 26 August 1993. This was only seven days after the Senate finalised the membership of the Committee and referred the appropriations to the Committee and approximately three weeks earlier than usual. Consequently, Senators were given very little time to examine the Program Performance Statements and draft

Annual Reports and to prepare for the hearings. Some of these documents were only delivered to Senators offices two days before the first hearing and were not seen by the Senators until the day of the hearing.

14. The Committee considers that more time must be allowed for Senators to prepare for estimates hearings. On several occasions Committee members sought information already made available to the Committee in draft annual reports which members had not had time to examine before the hearings. The Committee considers that at least two weeks be allowed for the distribution and examination of these documents before the

Committee's first hearing.

Explanation of abnormal expenditure changes

15. The Program Performance Statements often reveal changes in expenditure which far exceed the normally expected range. Questioning by Committee members frequently reveal that these variations arise from inter program funding transfers. For example, page 113 of the Program Performance Statement for the Environment, Sport and Territories

Portfolio showed overall falls in expenditure for scientific development of 40% and falls in administrative expenses of 73%. When Departmental staff were questioned about these variations they stated that they were due to some activities being moved into other programs (Hansard E 355). Similarly there was an apparent increase of 80% in

administrative expenses for sub-program 9.6, Customs - Passenger Processing, on page 220 of the Industry, Technology and Regionalr Development Program Performance Statements. It was explained that this increase was largely the result of funding for the fit-out of international airports being rolled over from the previous year. (Hansard E 106)

16. The Committee believes that such variations should be briefly explained in the Statements. This would reduce the duration of Committee hearings and enable members to focus their questioning on those matters of most concern. The Minister for Science and Small Business, Senator the Han Chris Schacht, agreed that this was a valid concern

and undertook to bear it in mind in future years.

17. This issue was previously raised in the Report of Estimates Committee F in November 1992. However, it appears that no action has been taken on that report.

193

RECOMMENDATIONS

18. Estimates Committee E recommends that the Senate approve, without amendment or request for amendment, expenditure in accordance with the estimates referred to the Committee.

QUESTIONS ON NOTICE AND SUPPLEMENTARY HEARINGS

19. The Standing Orders require the Committee, after considering the proposed expenditure and agreeing on its report to the Senate, to fix a date for the submission of any written answers or additional information and for the commencement of supplementary hearings.

20. The Committee has decided that written answers and additional information shall be submitted by Monday, 18 October 1993. The Committee will commence its supplementary hearings on Thursday, 4 November 1993.

ACKNOWLEDGMENTS

21. The Committee is grateful for the assistance given by the Minister for Transport and Communications (Senator the Hon. Bob Collins), the Minister for Science and Small Business (Senator the Hon. Chris Schacht) and from officers of the Departments and agencies concerned.

S West Chairperson

194

ESTIMATES COMMTITEE E

MINUTES OF MEETINGS

FOR ,

Thursday, 26 August 1993 Thursday, 2 September 1993 Tuesday, 21 September 1993 Wednesday, 29 September 1993

Wednesday, 6 October 1993

195

FSfiMATES COMMITfEE 'E'

Minutes of Meeting No. 37/4 Thursday 26 August 1993

1. PRIVATE MEETING:

The Committee met from 9.30 am till 9.35 am outside Committee Room 2Sl.

2. ORDER OF DEPARTMENTS

The Committee agreed, time permitting, to examine the portfolios in the following order:

26 August Tourism

Industry, Technology and Regional Development Environment, Sport and Territories

2 September Transport and Communications

3. ATfENDANCE

Senators West (Chairperson), Ferguson, Foreman, Macdonald.

Confirmed /

S. West CHAIRPERSON

196

ESTIMATES COMMITI'EE 'E'

1. PUBUC MEEITNG

Minutes of Meeting No. 37/5 Thursday 26 August 1993

The Committee met at 9.36 am till 2.07 am in Senate Committee Room 2Sl. The Chairperson, Senator West, took the Chair.

2. PARTICULARS OF PROPOSED EXPENDITURE 1993-1994- TOURISM PORTFOUO

Senator the Hon. Chris Schacht, Minister for Science and Small Business, answered questions on the estimates for this portfolio. The following departmental and agency staff assisted the Minister by providing information directly to the Committee:

Department of Tourism

Ms Helen Williams Mr David Mazitelli Mr Geoff Strang Mr Ray Spurr Ms Lorraine Peachey

Mr Barry Jones

Secretary, Executive Director Assistant Secretary, Regional Development Branch Acting First Assistant Secretary, Tourism Division Assistant Secretary, Corporate Management Branch

Director, Bureau of Tourism Research

Australian Tourist Commission

Mr Jon Hutchison Mr John Hopwood Managing Director Manager, Finance and Administration

3. PARTICUlARS OF PROPOSED EXPENDITURE 1993-1994- INDUSTRY, TECHNOLOGY AND REGIONAL DEVELOPMENT PORTFOLIO

Senator the Hon. Chris Schacht, Minister for Science and Sm all Business, answered questions on the estimates for this portfolio. The following departmental and agency staff assisted the Minister by providing information to the Committee:

197

Department of Industry, Technology and Regional Development

Mr N Stevens Dr J Bell Mr R Trenberth Mr R Palfreyman

Mr D McCarthy Mr D Stafford Mr Farrow Mr W Gray

Ms B Clarke

Dr J Boyd

Mr R Samarcq

Mr J Ryan

Mr Daine

Secretary Science Adviser Deputy Director First Assistant Secretary, Enterprise Development Division Acting Head, Office of Regional Development Director, Export Credit Operations Section Executive Director, Australian Space Office Chief Executive Officer, Office of Northern Development Assistant Secretary, Aerospace and Biological

Industries Branch Deputy Executive Director, Remote sensing and Operations, Australian Space Office First Assistant Secretary, Engineering Construction and Resource Processing Industries Division First Assistant Secretary, Business Environment Science and Industry Policy Division Director, Resources Section

National Standards Commission

Dr G Harvey Deputy Director

Australian Manufacturing Council

Mr W Mountford Director, Australian Manufacturing Council

Secretariat

Textiles Oothing and Footwear Development Authority

Mr A Caddy Chief Executive

Automotive Industry Authority

Mr M Wynne-Hughes Chief Executive

198

Australian Institute of Marine Science

Dr M Williams Director

Australian Nuclear Science and Technology Organisation

Dr D Cook Prof H Garnett Mr R Baker Mr MAllen

Anti-Dumping Authority

Mr J McGuire

Australian Customs Service

Mr F Kelly Mr P Burns

Executive Director Deputy Executive Director Director, Business Administration Acting Director, Nuclear Safety Bureau

Executive Director

Comptroller-General National Manager, Coastwatch

Commonwealth Scientific and Industrial Research Organisation

Dr J Stocker Mr R Garrett

4. ATfENDANCE:

Chief Executive General Manager, Corporate Finance

Senators West (Chairperson), Chapman, Devereux, Ferguson, Foreman, Macdonald.

Also in attendance were Senators Hill, Kemp and Tambling.

CONFIRMED

/

_ _

S. West

CHAIRPERSON

199

ESTIMATES COMMITTEE 'E'

l. PUBUC MEETING

Minutes of Meeting No. 37/6 Thursday 2 September 1993

The Committee met from 1.46 pm till 1.39 am in Senate Committee Room 2Sl. The Chairperson, Senator West, took the Chair.

2. PARTICUlARS OF PROPOSED EXPENDITIJRE 1993-1994- INDUSTRY, TECHNOLOGY AND REGIONAL DEVELOPMENT PORTFOLIO

At the request of the Minister, Senator the Han. Chris Schacht, sub-program 9.3 of the portfolio was re-opened for further examination. The following departmental staff assisted the Minister by providing information directly to the Committee:

Australian Customs Service

Mr F Kelly MrS Holloway

Comptroller-General Director, Parliamentary Services

3. PARTICULARS OF PROPOSED EXPENDITIJRE 1993-1994- TRANSPORT AND COMMUNICATIONS PORTFOUO

Senato r the Hon. Bob Collins, Minister for Transport and Communications, answered questio ns on the estimates for this portfolio. The following departmental and agen cy staff assisted the Minister by providing information to the Committee:

200

Department of Transport and Communications

Mr M Hutchinson Ms V Fanning Mr J Kerr

Mr R Turner

Mr B Smith

Dr R Lee Mr J Pike

Mr J Neil

Mr C Thorpe

Mr P Makeham

Deputy Secretary, Communications First Assistant Secretary, Aviation Division Assistant Secretary, International Relations branch, Aviation Division Assistant Secretary, Aviation Security Branch,

Aviation Division Manager, Canberra Based Operational Unit, Aviation Division Director, Bureau of Air Safety Investigation Deputy Director (Operations), Bureau of Air Safety

Investigations Assistant Secretary, Public Broadcasting Policy Branch, Broadcasting Policy Division First Assistant Secretary, Land Transport Policy

Division First Assistant Secretary, Federal Office of Road Safety

Federal Airports Corporation

Mr P Robson

Civil Aviation Authority

Mr D Roser Mr M Mayoh Mr B Brooksbank Mr G Macionis

Corporate Secretary and General Counsel

Chief Executive and Managing Director General Manager, Corporate Finance General Manager, Air Traffic Services Acting Air Safety Regulation

Australian Broadcasting Corporation

Mr D Hill Managing Director

Special Broadcasting Service

Mr M Long Managing Director

201

Australian Broadcasting Authority

Mr P Webb

Telstra Corporation Ltd

Mr J Stanton Mr C Von Willer

Deputy Chairman

Group Manager, Corporate Relations Director, Corporate Affairs

Australian Postal Corporation

Mr G Ryan Mr J Power

Secretary Group Manager, Letters

Australian Telecommunications Authority

Mr R Davey Chairman

Australian National Railways Commission

Mr J Hallion Director, Corporate Services

4. PRIVATE MEETING

The Committee met privately from 1.10 am till 1.15 am to discuss the order of the remaining programs and the time for adjournment of the hearing. -It was agreed that the Committee would adjourn after examining program 4 of the Transport and Communications portfolio and would examine any remaining programs on which members wished to ask questions on Wednesday, 29 September 1993.

5. ATTENDANCE:

Senators West (Chairperson), Ch apma n. Devereux, Ferguson, Forema n, Macdonald and

Tierney.

202

Also in attendance were Senators Alston, Boswell, Calvert, Crane, Harradine, Hill, Kemp, Knowles and Panizza.

CONFIRMED

o L ..,-S. West CHAIRPERSON

20 3

FSfiMATES COMMITfEE 'E'

1. PUBUC MEETING

Minutes of Meeting No. 37n Tuesday 21 September 1993

The Committee met from 9.35 am till 5.20 pm in Senate Committee Room 2Sl. The Chairperson, Senator West, took the Chair.

2. PARTICULARS OF PROPOSED EXPENDITURE 1993-1994

ENVIRONMENT, SPORT AND TERRITORIES PORTFOUO

Senator the Hon. Chris Schacht, Minister for Science and Small Business, answered questions on the estimates for this portfolio. The following departmental and agency staff assisted the Minister by providing information to the Committee:

Department of the Environment, Sport and Territories

Mr D Buckingham Ms J A DiSano Dr A Turner

Dr A McCusker Mr G Crawford Mr J Whitelaw

Mr C Gallagher

Dr G Riley

Mr M Hill

Mr R Moncur

Deputy Secretary, Communications Deputy Director, Environment Strategies Directorate Assistant Secretary, Environment Coordination and Liaison Assistant Secretary, World Heritage Assistant Secretary, Sustainable Land Use Acting Executive Director, Commonwealth Environment Protection Agency Acting Assistant Secretary, Environmental Assessment Acting Supervising Scientist, Office of the Supervising Scientist Deputy Director, Australian Nature Conservation Agency Director, Antarctic Division

204

Mr G Dempster

Mr G Early Mr I Carruthers

Executive director, Office of Sport and Recreation and Principal Adviser, Territories Office Executive Director, Territories Office Assistant Secretary, Climate Change and

Environmental Liaison Branch

Great Barrier Reef Marine Park Authority

Mr R Hebblewhite Dr W Craik

Bureau of Meteorology

Dr J Zillman

4. ATTENDANCE:

Director, Administration Executive Officer

Director of Meteorology

Senators West (Chairperson), Devereux, Ferguson, Foreman and Macdonald.

Also in attendance was Senator Calvert.

CONFIRMED

S. West CHAIRPERSON

205

ESTIMATES COMMITIEE 'E'

Minutes of Meeting No. 37/8 Wednesday 29 September 1993

·. ·"

1. PUBUC MEETING

The Committee met from 8.00 pm till 10.25 pm in Senate Committee Room 2Sl. The Chairperson, Senator West, took the Chair.

2. PARTICUlARS OF PROPOSED EXPENDITURE 1993-1994- TRANSPORT AND COMMUNICATIONS PORTFOLIO

Senator the Hon. Bob Collins, Minister for Transport and Communications, answered questions on the estimates for this portfolio. The following departmental and agency staff assisted the Minister by providing information to the Committee:

Department of Transport and Communications

Mr M Hutchinson Mr T Shaw Mr V Jones Mr B Henderson

Ms F Holthuyzen Ms C Goode

Mr R Smith

Deputy Secretary, Communications First Assistant Secretary, Broadcasting Policy General Manager, National Transmission Agency First Assistant Secretary, Telecommunications Policy Division Assistant Secretary, Regulatory Policy Branch Acting Spectrum Manager, Spectrum Management Agency Executive Manager, Business Directions Group, Spectrum management Agency

206

4. ATI'ENDANCE:

Senators West (Chairperson), Devereux, Ferguson, Foreman, Macdonald and Tierney.

Also in attendance was Senator Alston. Apologies were received from Senator Chapman.

CONFIRMED

/,./

S. West CHAIRPERSON

207

ESTIMATES COMMTITEE 'E'

MINUTES OF MEETING NO 37/9 Wednesday, 6 October 1993

1. PRIVATE MEETING

The Committee met in deliberative session at 2.50 pm in the Government Advisers' Area outside the Senate Chamber. The Chairperson, Senator West, took the Chair.

2. MINliTES

The Committee's Minutes of Proceedings for Meetings No. 37/4,37/5,37/6,37/7 and 37/8 were confirmed. (Moved: Senator Ferguson)

3. CONSIDERATION OF DRAFT REPORT

The Committee considered the revised Chairman's draft report. The report was agreed to. (Moved: Senator Ferguson )

4. SUBMISSION OF ADDillONAL INFORMATION

The Committee agreed to fix Monday, 18 October 1993 as the day for the submission to the Committee of any written answers or additional information relating to the proposed expenditure. ( Moved: Senator Ferguson)

5. SUPPLEMENTARY HEARINGS

The Committee agree to commence supplementary meetings of the Committee on Thursday, 4 November 1993. (Moved: Senator Foreman)

208

6. ADJOURNMENT

The Committee adjourned at 2.55 pm.

7. ATfENDANCE

Senators West (Chairperson), Devereux, Ferguson and Foreman.

CERTIFIED CORRECT

S West Chairperson

209

ESTIMATES COMMITTEE E

TABlE OF CONTENfS

FOR

HANSARD OF HEARINGS

FOR

Thursday, 26 August 1993 Thursday, 2 September 1993 Tuesday, 21 September 1993 Wednesday, 29 September 1993

210

ESTIMATES COMMITfEE E

HANSARD INDEX

Thursday, 26 August 1993

Program

TOURISM PORTFOLIO

1

2

3

4

Tourism Bureau of Tourism Research Australian Tourist Commission Executive and Support

Page

E 2-32 E 32-36 E 36-42 E 42-49

INDUSTRY, TECHNOLOGY AND REGIONAL DEVELOPMENT PORTFOLIO

1 Dept of Industry, Technology and Regional Development E 123-156 3 Australian Manufacturing Council E 53-57

4 National Standards E 50-52

5 Textiles Oothing and Footwear E 57-59

6 Automotive Industry E 59-60

7 Anti-Dumping Authority E 94-95

8 Marine Science E 60-70

9 Customs E 95 -117

10 Nuclear Science and Technology E 84-95

11 Scientific and Industrial Research E 117-123

12 Office of Northern Development E 70-84

Thursday, 2 September 1993

INDUSTRY, TECHNOLOGY AND REGIONAL DEVELOPMENT PORTFOLIO

9.3 Inland Revenue E 159-173

211

TRANSPORT AND COMMUNICATIONS PORTFOLIO

1

2

3

4

Aviation Broadcasting Communications Land Transport

Tuesday, 21 September 1993

ENVIRONMENT, SPORT AND TERRITORIES PORTFOLIO

General 1 Environment

2 Antarctica

3 Meteorology

5 Territories

Wednesday, 29 September 1993

TRANSPORT AND COMMUNICATIONS PORTFOLIO

2

3

Broadcasting Communications

212

E 175-209 E 209-245 E 245-277 E 277-282

E 284-295

E 295-333, 345-355 E 333-345 E 355-356 E 356-360

E 362-383 E 383-394

AUSTRALIAN SENATE

ESTIMATES COMMI'I.I'EE E

MINUTES OF MEETINGS

December 1993

Minutes for Meetings on:

Thursday 4 November 1993 Monday 15 November 1993

213

ESTIMATES COMMITfEE 'E'

MINUTES OF MEETING No. 37/10 Thursday, 4 November 1993

1. PRIVATE MEETING

The Committee met from 9.05 am till 9.09 am outside Committee Room 2Sl.

2. ORDER OF DEPARTMENTS

The Committee agreed, time permitting, to examine the portfolios during the supplementary meetings in the following order:

Industry, Technology and Regional Development; Tourism; Environment, Sport and Territories; Transport and Communications.

3. ADDITIONAL MEETING

The Committee agreed to hold a further hearing from 3.00 pm to 4.30 pm on Monday, 15 November 1993, to examine the Bureau of Air Safety Investigations and the Civil Aviation Authority.

4. ATIENDANCE

Senators West (Chairperson), Devereux, Ferguson and Foreman.

CERTIFIED CORRECT

S. West CHAIRPERSON

214

ESTIMATES COMMfiTEE 'E'

1. PUBUC MEEfiNG

Minutes of Meeting No. 37/11 Thursday, 4 November 1993

The Committee met from 9.09 am till 7.33 pm in Senate Committee Room 2Sl for the purpose of conducting a supplementary meeting of the Committee. The Chairperson, Senator West, took the Chair.

2. PARTICUlARS OF PROPOSED EXPENDITURE 1993-1994

Senator the Han. Chris Schacht, Minister for Science and Small Business, answered questions on the estimates for the Industry, Technology and Regional Development, Tourism and Environment, Sport and Territories portfolios. The following departmental and agency staff assisted the Minister by providing information directly to the Committee:

Department of Industry, Technology and Regional Development

Mr R Trenberth Mr J Beever Mr S Holloway Mr F Kelly Mr P English

D eputy Director Assistant Secretary, Multifunction Polis Projects Director, Parliamentary Services Comptroller-General, Customs Assistant National Manager, Inl and Revenue

Australian Tourist Commission

Mr J Hutchison Managing Director

Department of the Environment, Sport and Territories

Dr W Nicholls Ms J A DiSano Mr I Carruthers

Mr A Haines Mr G Kelleher Mr J Ashe

Director, World Heritage Unit Deputy Director, Environment Strategies Directorate Assistant Secretary, Climate Change and

Environmental Liaison Branch Director, Marine and Coastal Management Section Chairman, Great Barrier Reef Marine Park Authority Assistant Secretary, Environment Assessment

215

Senator the Han. Bob Collins, Minister for Transport and Communications, answered questions on the estimates for the Transport and Communications portfolio. The following departmental and agency staff assisted the Minister by providing information to the Committee:

Department of Transport and Communications

Mr M Hutchinson Mr T Shaw Mr P Lidbetter Mr P Conroy Mr Buchanan Mr P Webb Mr B Henderson

Mr J Grant

Mr J Doherty Mr P McGra th Mr B Wyers

4. ATI'ENDANCE

Deputy Secretary, Communications First Assistant Secretary, Broadcasting Policy General Manager, Corporate Services, ABC Director, Television, ABC General Manager, Regional Radio, ABC Deputy Chairman, Australian Broadcasting Authority First Assistant Secretary, Telecommunications Policy Division Acting Executive Manager, Corporate Support Group, Spectrum Management Agency Assistant Secretary, Legal and General Branch Chief Executive, Australian Maritime Safety Authority Group Manager, Maritime Safety Services, Austral ian

Maritime Safety Authority

Senators West (Chairperson), Devereux, Ferguson, Foreman, and Tierney. Also in attendance were Senators Alston, Boswell and Vanstone.

CERTIFIED CORRECT

S West CHAIRPERSON

216

ESTIMATES COMMITTEE 'E'

Minutes of Meeting No. 37/12 Monday, 15 November 1993

1. PUBLIC MEETING

The Committee met from 3.01 pm till 10.11 pm in Senate Committee Rooms 2S3 and 2S2 for the purpose of conducting a supplementary meeting of the Committee. The Chairperson, Senator West, took the Chair.

2. PARTICUlARS OF PROPOSED EXPENDITURE 1993-1994

Senator the Han. Bob Collins, Minister for Transport and Communications, answered questions on the estimates for the Transport and Communications portfolio. The fo ll owing departmental and agency staff assisted the Minister by providing information to the Committee:

MrD. Hill

Mr P. Conroy

Mr J. Pike Mr D. Roser

Mr B. Brooksbank

Mr G. Macionis

Mr D. Williams Mr C. Tarkington

4. ATTENDANCE

Managing Director, Australian Broadcasting Corporation Director, Television, Australian Broadcasting Corporation

Deputy Director (Operations), Bureau of Air Safety Chief Executive and Managing Director, Civil Aviation Authority General Manager, Air Traffic Services, Civil Aviation Authority Acting Director, Directorate of Aviation Safety

Regulation, Civil Aviation Authority Legal Manager, Civil Avi ation Authority l\'1anager, Airworthiness and Operations Branch,

Directorate of Aviation Safety Regulation, Civil Aviation Authority

Senators West (Chairperson), Devereux, Foreman and Macdonald. Also in attendance were Senators Alston and Kemp.

CERTIFIED CORRECT

S West CHAIRPERSON

217

ESTIMATES COMMITTEE F

REPORT TO THE SENATE

OCTOBER 1993

219

CHAIRMAN:

MEMBERS:

Secretary:

Research Staff:

MEMBERS OF THE COMMI'ITEE

Senator Michael Beahan (Western Australia)

Senator Paul Calvert (Tasmania)* Senator Barney Cooney (Victoria) Senator Susan Knowles (Western Australia)* # Senator Jim McKiernan (Western Australia) Senator James Short (Victoria)*#

* Senators Baume, Ellison and Vanstone replace Senators Calvert, Knowles and Short for the consideration of the estimates of the Parliamentary Departments.

# Senators Ellison and Vanstone replace Senators Knowles and Short for the consideration of the estimates of the Attorney-General's portfolio.

Michael McLean

Claire Shepherd Peter Short

220

TABLE OF CONTENTS

List of members

Report to the Senate

Minutes of Proceedings

Public hearing - Thursday, 26 August 1993 Public hearing- Thursday, 2 September 1993 Private meeting- Wednesday, 6 October 1993

Index to Hansard of public hearings

221

Page

iii

1

5

11 14

15

ESTIMATES COMMI'ITEE F

REPORT TO THE SENATE

Estimates Committee F presents its report to the Senate.

INTRODUCTION

1. On 19 August 1993 the Senate referred to the Committee for examination and report the particulars of proposed expenditure for the service of the year ending on 30 June 1994 and the particulars of certain proposed expenditure in respect of the year ending on 30 June 1994 of the following portfolios:

Parliament;

Immigration and Ethnic Affairs; and

Attorney-General.

2. The Senate also referred to the estimates committees expenditure under the Advance to the Minister for Finance for the year ended 30 June 1993. However, there was no expenditure under the Advance by the portfolios under examination by the Committee.

3. The Committee has considered the estimates for the year ending 30 June 1994 together with Program Performance Statements (PPSs) and has received evidence from the President of the Senate, Senator the Hon. Kerry Sibraa and the Minister for Immigration and Ethnic Affairs, Senator the Hon.

Nick Bolkus and officers of the departments and agencies concerned. The Committee met in public session on 26 August 1993 and 2 September 1993. Copies of the Minutes of Proceedings and an index to the two Hansard transcripts are incorporated in this report. The two Hansard volumes are also tabled in conjunction with this report. Further written explanations furnished by departments will be presented separately in volumes of additional information.

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

222

MATTERS RELATING TO THE COMMITTEE'S REVIEW OF THE ESTIMATES

New procedures

5. This is the first report of the Committee under the new procedures adopted by the Senate on 6 May 1993 for the conduct of the estimates committees. At this stage the Committee has only completed the first round of hearings under the new procedures. Accordingly, it is too early for the Committee t o pass judgement about the concept for the conduct of supplementary hearings by the estimates committees as a means of reducing the time spent in debate in committee of the whole on the appropriation bills.

6. Paragraph 7 of the new procedures provides for the estimates

committees to report to the Senate any recommendations for further action by the Senate arising from the supplementary hearings. The Committee will utilise this provision if there are any matters it wishes to raise with the Senate about the efficacy of the new procedures.

Hearings timetable

7. Hearings this year were scheduled some three weeks earlier than usual, prompted by the withdrawal of committee rooms in relation to the conduct of the Inter-Parliamentary Conference in Parliament House between 13 and 17 September 1993. The Senate's reference of the particulars of proposed expenditure to the estimates committees and their memberships were finalised on 19 August 1993, only seven days before this Committee's first hearing on 26 August 1993.

8. One consequence of this timetable was that Senators had minimal opportunity to analyse the information contained in PPSs and draft annual reports and thus limited time in which to prepare for the hearing on 26 August. In recognition of this time constraint, Senator Bolkus offered to extend the period for the receipt of written questions on notice in relation to the Attorney-General's portfolio beyond the day of the hearing, which is the traditional deadline for the placing of such questions on notice. The Committee wishes to record its appreciation for the Minister's gesture in this respect.

Explanation of abnormal expenditure changes

9. In its report to the Senate in November 1992 in relation to the 1992-93 budget estimates the Committee commented on the absence of explanation in the PPSs of changes in expenditure which far exceeded the normal range of expectation, often arising from inter-program

funding transfers. An unnecessarily large amount of the Committee's time had been spent in seeking oral explanations from officers about such matters. The Committee commented that more attention should

223

be paid in the compilation of the PPSs to ensuring that the obviously abnormal changes are properly explained. It is noted with regret that this suggestion was not taken up by the Government in relation to the 1993-94 PPSs.

Supplementary derivation tables

10. Also in its November 1992 report the Committee expressed its disappointment that tables showing the derivation of the revised estimates of expenditure for 1992-93 for each program element of the Employment, Education and Training portfolio were made available on the day of the hearing. The Committee noted that clarification sought on a number of points would have been unnecessary if the information contained in the derivation tables had been provided to Senators in advance of the hearings. The Secretary of the Department of Employment, Education and Training had given an undertaking to provide the material in advance of the hearings in future.

11. As was the case last year, the inclusion of the derivation tables in the PPSs was optional under the Department of Finance guidelines for the preparation of the 1993-94 PPSs. The guidelines provide that if accurate derivation tables are not able to be produced by a PPS's tabling date, agencies should make the derivation tables available to the estimates committee hearings. While several of the agencies examined by the Committee included the derivation tables in their PPSs, the delivery of derivation tables on the day of hearings continued.

12. The Committee considers that if the derivation tables are to be of any benefit to the processes of the estimates committees, there is little merit in their submission to committees on the day of the agency's hearing.

Representation of officials at hearings

13. The Committee notes that once again all six departments and several agencies examined were represented by their most senior executive officer, most notably the appearance for the first time before an estimates committee of the Director-General of the Australian Security Intelligence Organisation. The Committee appreciates their attendance and commends these officials for fulfilling their accountability responsibilities to the Parliament in this respect.

DATES FOR THE SUBMISSION OF ADDITIONAL INFORMATION/ SUPPLEMENTARY HEARINGS

14. Pursuant to paragraph (1)(a) of the Senate's order of 6 May 1993, the Committee has set 18 October 1993 as the day for the submission to

22 4

it of any written answers or additional information relating to the proposed expenditures examined by the Committee. Senators would be aware that it is traditional for estimates committees to include as part of their report to the Senate schedules of the questions placed on

notice either before or at the hearings. The schedules were included in the past as an aid to the committee of the whole process, which is now largely replaced by the new procedures. This report accordingly does not include those schedules, especially since answers to questions on notice do not have to be provided until the date now set by the Committee, 18 October 1993. For the benefit of Senators who are not Committee members and who may wish to involve themselves in the Committee's supplementary hearings, the Committee proposes to table a report as soon as possible after 18 October 1993 which will contain

the schedules and which will indicate the location of particular answers to questions on notice in the volumes of additional information.

15. Pursuant to paragraph (1)(b) of the Senate's order of 6 May 1993, the Committee has set 12 November 1993 as the day for the

commencement of supplementary meetings to consider matters relating to the proposed expenditures examined by the Committee. On that day, the Committee proposes to hold a supplementary hearing of the Immigration and Ethnic Affairs and Attorney-General's portfolios. Senators should note that, in accordance with paragraph (3) of the Senate's order, notice of matters to be raised at this hearing should be

lodged with the Committee not less than three days before the hearing date, i.e. by 9 November 1993.

ACKNOWLEDGMENTS

16. The Committee expresses its appreciation of the assistance given during its hearings by the President of the Senate, Senator the Hon. Kerry Sibraa, and the Minister for Immigration and Ethnic Affairs, Senator the Hon. Nick Bolkus. The Committee also thanks the officials of the departments and agencies examined for their attendance and

cooperation in answering questions, for providing detailed written responses where sought.

(!

Michael Beahan Chairman

225

THE SENATE

ESTIMATES COMMITTEE F

MINUTES OF P ROCEEDINGS N0.4

THURSDAY, 26 AUGUST 1993

1. MEETING: The Committee met in public session at 9.06 a.m. in Committee Room 2S3. Senator Beahan took the Chair.

2. STATEMENT BY THE CHAIRMAN: The Chairman reported the resolution of the Senate of 19 August 1993 referring mat ters to the Committee and made an opening statement.

3. PARTICULARS OF PROPOSED EXPENDITURE FOR 1993-94: PARLIAMENT: The Committee commenced its consideration of the proposed expenditure of the parliamentary depar tments.

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

Department of the Senate:

Mr H. Evans, Clerk of the Senate Ms A. Lynch, Deputy Clerk Mr J. Vander Wyk, Clerk-Assistant (Corporate Management) Mr P . O'Keeffe, Clerk-Assistant (Procedure) Ms R. Laing, Clerk-Assistant (Committees) Mr C. Elliott, Clerk-Assistant (Table) Mr R. Alison, Usher of the Black Rod Mr G. Nankervis, Director, Finance Management Section Ms H. Donaldson, Director, Human Resource Management Section

Department of the Parliamentary Library:

Mr J.W. Templeton, Acting Parliamentary Librarian Mr M.J . Brudenall, Deputy Parliamentary Lib rarian Dr J. Verrier, Head, Parliamentary Research Service Mr R.McL. Johnston, Adviser, Evaluation and Audit Ms J.A. Hutchinson, Executive Assistant Mr J. Little, Acting Manager, Finance Mr S. Selva-Kulendran, Assistant Manager, Finance Ms J. Clarke, Manager, Personnel Mr L. Downs, Acting Manager, General Services Mr C. Bareham, Manager, Information Systems and P lanning

226

Department of the Parliamentary Reporting Staff:

Mr J .W. Templeton, Secretary Mr B. Harris, Chief Hansard Reporter Ms C. Upton, General Manager, Parliamentary Information Systems Office Mr B. Sharp, Manager, Sound and Vision Office Mr J. Walsh, Assistant Secretary, Corporate Management Branch

Joint House Department:

Mr M. Bolton, Secretary Mr J. Porter, Deputy Secretary Mr J. Rankin, Assistant Secretary, Personnel and Supply Services Mr R. Wedgwood, Assistant Secretary, Commercial Services Mr F . Bradley, Assistant Secretary, Property Management Mr A. Guilfoyle, Chief Engineer Mr G. Coulston, Director, Finance and Management Review Mr P. Richardson, Director, Supply Services Mr P. Moonie, Director, Contracts and Procurement Policy Ms V. Laletin, Legal Officer Mr M. Jones, Manager, Artworks Mr M. Laugesen, Manager, Commercial Finance

DepartmentofFinanre:

Mr G. Adams Mr M. Shannon

4. CONSIDERATION OF THE ESTIMATES: The Chairman called on the estimates of the parliamentary departments in the following order: Department of the Senate; Department of the Parliamentary Library; Department of the Parliamentary Reporting Staff; Joint House Department. The Chairman invited questions in relation to general issues spanning the program structure and then questions in respect of the programs and sub-programs for which appropriation was being sought as they appeared in the Program ' Performance Statements.

The following documents were tabled:

. copy of the submission by the Department of the Senate to the Standing Committee on Finance and Public Administration in relation to its inquiry into Performance-Based Pay; and

. Department of the Senate Industrial Democracy Plan 1993-95.

227

The Committee concluded its examination of the particulars of proposed expenditure for the service of the year ending on 30 June 1994 in relation to the Parliament, subject to undertakings by the President and officers to provide additional information to the Committee.

5. SUSPENSION OF SITTING: The Committee suspended its sitting between 12.36 p.m. and 1.42 p.m.

6. PARTICULARS OF PROPOSED EXPENDITURE FOR 1993-94: ATTORNEY-GENERAL'S PORTFOLIO: The Committee commenced its consideration of the proposed expenditure of the Attorney-General's portfolio.

In attendance was Senator the Hon. Nick Bolkus, Minister for Immigration and Ethnic Affairs, representing the Attorney-General, accompanied by the following officers:

Attorney-General's Department:

Mr A. Rose, Secretary Mr S. Skehill, Deputy Secretary Mr N. Reaburn, Deputy Secretary Mr D. Boucher, Australian Government Solicitor Mr T. Gallagher, General Manager, Resources Mr M. Fish, Manager, Finance and Property Branch Mr R. Moss, Inspector-General in Bankruptcy, Insolvency and Trustee Service, Australia Mr J . Wood, First Assistant Secretary, Federal Bureau of Consumer Affairs Mr M. Cramsie, First Assistant Secretary, Office of Legal Aid and Family Services Mr G. Weeks, Acting Director, Australian Bureau of Criminal Intelligence Mr G. Roberts, Acting Deputy Director, Australian Bureau of Criminal Intelligence Mr S. Dixon, Executive Officer, Australian Bureau of Criminal Intelligence Mrs A. Matthews, Administrative Officer, Australian Bureau of Criminal Intelligence Mr J . Mackay, Director, Australian Protective Service

Office of Parliamentary CoUDBel:

Ms H. Penfold, First Parliamentary Counsel Mr T. Perkins, Executive Officer

Australian Securities Commission:

Mr B. Robinson, Acting Deputy Chairman Mr I. Cameron, Director, Resources

228

Human Rights and Equal Opportunity Commission:

Ms S. Varova, Executive Director Ms S. Tongue, Assistant Secretary, Law, Policy and Conciliation Mr N. Waters, Head, Privacy Branch

Law Reform Commission:

Ms C. Watts, Secretary Mr B. Looyen, Administrative/Finance Officer

Office of Film and Literature Classification:

Mr J . Dickie, Chief Censor

Federal Court of Australia:

Mr J. Howard, Registrar Mr J . Torpy, Manager, Court Resources Ms L. Faulder, Manager, Financial Services

Family Court of Australia:

Mr L. Glare, Chief Executive Officer Mr I. Loughnan, Principal Registrar Mr B. Frankland, Director

Administrative Appeals Tribunal:

Mr D. Shulz, Registrar

Australian Transaction Reports and Analysis Centre:

Mr W. Coad, Director Mr G. Pinner, Deputy Director Ms J. Stubbing, Executive Officer

High Court of Australia:

Mr R. Rose, Clerk of the High Court of Australia Mr L. Howard, Senior Deputy Marshal

Australian Federal Police:

Mr A. Whiddett, Deputy Commissioner Mr B. Bates, Deputy Commissioner Mr S. Gavin, Associate Commissioner Mr A. Hoitink, Assistant Secretary Mr G. Thompson

229

National

Mr P. Lamb, General Manager, · . · -;:·· · '¥' ' ' ;

Mr D. Hawke, General Manager, ·Corporate Support. :·

Australian Institute of CriminC!logy:

Mr D. Biles, Acting Director Mr J. Millar, Executive Officer Director of Public Prosecutions:

Mr E . Lorkin, Associate Director Mr I. Bermingham, First Assistant Director

f .•

Mr G. Delaney, Principal Adviser, Corporate Prosecutions Mr T. McKnight, Senior Executive,

Australian Security Intelligence Organisation:

Mr D. Sadleir, Director-General Mr G. Walsh, Deputy Director-General

.' .. '

Mr G. Batchelor, First Assistant Director-General, Corporate Support Mr R. Morris, Manager, Executive

Department of Finance:

Mr P . Adams, Chief Finance Officer Mr M. Shannon, Senior Finance Officer

7. CONSIDERATION OF THE ESTIMATES: The Chairman called on the estimates of the Attorney-General's portfolio. The Chairman invited questions in relation to general issues spanning the program structure and then questions in respect of the programs and sub­ programs for which appropriation was being sought as they appeared in the Program Performance Statements. -

The Committee resolved to incorporate in the transcript a

memorandum received from the Joint House Department providing a response to a question asked earlier in the hearing by Senator Calvert.

The following document was tabled:

. Membership of the National Advisory Committee on Discrimination in Employment and Occupation.

The Committee suspended its sitting between 3.15 p.m. and 3.22 p.m.

The Committee concluded its examination of the particulars of proposed expenditure for the service of the year ending on 30 June 1994 in relation to the Attorney-General's portfolio, subject to ·mdertakings by the Minister and officers to provide additional

information to the Committee.

230

8. ADJOURNMENT: The Committee adjourned at 6.34 p.m.

9. ATI'ENDANCE: Senators Beahan (Chairman), Baume, Calvert, Cooney, McKiernan, Short and Vanstone.

Senators Kemp and Tambling also participated in the Committee's proceedings.

CONFIRMED:

Michael Beahan Chairman

231

THE SENATE

ESTIMATES COMMITTEE F

MINUTES OF PROCEEDINGS N0.5

THURSDAY, 2 SEPTEMBER 1993

1. MEETING: The Committee met in public session at 1.41 p.m. in Committee Room 2S3. Senator Beahan took the Chair.

2. STATEMENT BY THE CHAIRMAN: The Chairman made an opening statement.

3 . PARTICULARS OF PROPOSED EXPENDITURE FOR 1993-94: IMMIGRATION AND ETHNIC AFFAIRS PORTFOLIO: The Committee commenced its consideration of the proposed expenditure of the Immigration and Ethnic Affairs portfolio.

In attendance was Senator the Hon. Nick Bolkus, Minister for Immigration and Ethnic Affairs, accompanied by the following officers:

Department of Immigration and Ethnic Affairs:

Mr C. Conybeare, Secretary Mr D. Richardson, Deputy Secretary Mr M. Sullivan, Deputy Secretary Dr J. Nieuwenhuysen, Director, Bureau of Immigration and Population Research Mr A. Struik, Deputy Director, Bureau of Immigration and Population Research Mr D. Wheen, First Assistant Secretary, Migration DiVision Mr V. McMahon, Assistant Secretary, Migration Planning Branch Mr E. Brookbanks, Assistant Secretary, Overseas Operations Branch Mr L. Bugden, Assistant Secretary, Refugees, Asylum and International Branch Ms S. Ingram, Acting First Assistant Secretary, Entry, Compliance and Systems Division Mr D. Adcock, Acting Assistant Secretary, Compliance Branch Mr E. Joseph, Assistant Secretary, Entry Branch Mr D. Castello, Assistant Secretary, Executive Support and Review Branch Ms P. O'Neill, Principal Member, Immigration Review Tribunal Mr. P. Hughes, Assistant Secretary, Migrant Entry and Citizenship Branch Ms J. Bedlington, First Assistant Secretary, Onshore Refugee Division Ms J. Gordon, Assistant Secretary, DORS Program Support Branch Ms P. Leehey, Registrar, Refugee Review Tribunal

232

Mr D. Storer, First Assistant Secretary, Settlement and Ethnic Affairs Division Mr D. Page, Assistant Secretary, Languages Branch Ms P. McCahey, First Assistant Secretary, Corporate and International Division Mr A. Rizvi, Assistant Secretary, Resource Management Branch Mr P. Freeman, Director, Budget Management Section Mr B. Mowbray, Assistant Secretary, Litigation and Refugee Law Branch Mr A. Metcalfe, Assistant Secretary, Advisings, Legislation and Legal Policy

Branch Mr L. Westcott, Director, Ministerial and Parliamentary Business Section

Attoiney-Gi!neral's Department:

Mr H Burmester, Principal International Law Counsel

Department of Finance:

Mr P . Antcliff

4. CONSIDERATION OF THE ESTIMATES: The Chairman called on the estimates of the Immigration and Ethnic Affairs portfolio. The Chairman invited questions in relation to general issues spanning the program structure and then questions in respect of the programs and sub-programs for which appropriation was being sought as they appeared in the Program Performance Statements.

The following documents were tabled:

. schedule of corrections to the Program Performance Statements for the Immigration and Ethnic Affairs portfolio;

. Overseas Operations Branch Global Statistics; and

. copies of two Attorney-General's Department memorandums to the then Department of Immigration, Local Government and Ethnic Affairs dated 26 January 1992 and 3 June 1992, a record of an interdepartmental meeting signed on 26 October 1990 and a Possible

Parliamentary Question brief dated 6 May 1992.

The Committee suspended its sitting between 3.03 p.m. and 3.18 p.m. and 6.16 p.m. and 8.07 p.m.

The Committee concluded its examination of the particulars of proposed expenditure for the service of the year ending on 30 June 1994 in relation to the Immigration and Ethnic Affairs portfolio, subject to undertakings by the Minister and officers to provide

additional information to the Committee.

233

10. ADJOURNMENT: The Committee adjourned at 10.39 p.m.

11. ATTENDANCE: Senators Beahan (Chairman), Calvert, Cooney, Knowles, McKiernan, and Short.

Senator Harradine also participated in the Committee's proceedings.

CONFIRMED:

Michael Beahan Chairman

234

THE SENATE

ESTIMATES COMMITTEE F

MINUTES OF PROCEEDINGS N0.6

1. MEETING: The Committee met in private session at 2.48 p. m. in the Government Advisers' Lobby. Senator Beahan took the Chair.

2. CONFIRMATION OF MINUTES: The Minutes of Proceedings of the meetings held on 26 August and 2 September 1993 (Nos. 4 and 5) were confirmed.

3. COMMITTEE REPORT: The Committee considered matters in the Chairman's draft report and agreed that the report be adopted as the report of the Committee for tabling in the Senate on 7 October 1993.

4. QUESTIONS ON NOTICE: The Committee authorised the Chairman to table a report in the Senate as soon as possible after 18 October 1993 containing the index of questions placed on notice prior to and during the Committee's hearings.

5. ADJOURNMENT: The Committee adjourned at 2.59 p.m.

6. ATTENDANCE: Senators Beahan, Calvert, Ellison and Short.

Apologies were received from Senator Baume.

CERTIFIED CORRECT:

Michael Beahan Chairman

235

ESTIMATES COMMITTEE F HANSARD INDEX

Thursday, 26 August 1993

General

Attendees Chairman's statement

Department of the Senate

General

Statement by the President Senate funding Details of Senate activities Compensation payment to former Speaker Senate funding Funding of Inter-Parliamentary Conference Performance pay Industrial democracy Program evaluation

Program 1 - Clerk's Office

Program 2 - Table Office

Program 3- Procedure Office

Program 4 - Committee Office

Program 5 - Corporate Management Office

Program 4 - Committee Office

Program 5 - Corporate Management Office

Program 6- Black Rod's Office

Department of the Parliamentary Library

General

Statement by the President Library Materials Management System

236

Fl

F2

F3 F3 F7 F7 FB FlO F12 F13 F15

F15

F19

F20

F21

F22

F22

F22

F24

F25 F26

Program 1 - Information Resources and Services

Subprogram 1.2 - MICAH Subprogram 1.3 - Information Services

Program 2 - Parliamentary Research Service

Program 3 - Corporate Services

Department of the Parliamentary Reporting Staff

General

Statement by the President Client satisfaction survey

Program 1 - Hansard

Subprogram 1.1 - Senate reporting Subprogram 1.3 - Editorial Support

Program 2 - Information Systems

Subprogram 2.1- Client Support and Training Subprogram 2.3 - Applications Subprogram 2.4 - Communications and Certification

Program 4 - Corporate Development

Joint House Department

General

Statement by the President Workplace bargaining Parliament House shop

Program 1- Property Management

Subprogram 1.2 - Property Services Subprogram 1.1 - Engineering Services Subprogram 1.2 - Property Services

Program 2 - Commercial Services

Subprogram 2.1 - Public and Market in g Activities

237

F27 F28

F28

F28

F29 F30

F30 F33

F33 F34 F34

F35

F36 F36 F36

F37 F37 F38

F39

Program 3 - Personnel amd Supply Services

Subprogram 3.2 - Contracts and Procurement Policy

General

New capital works program Gymnasium use

Attorney-General's Portfolio

General

Attendees Chairman's statement Resources devoted to Mabo legislation

Program 3 - Community Affairs

Subprogram 3.1 -Human Rights and Equal Opportunity Commission

General

User pays system

Program 1 - Legal Services to the Commonwealth

Subprogram 1.1 - Legal Practice

Program 2 - Business and Consumer Affairs

Subprogram 2.1 - Insolvency and Trustee Service, Australia Subprogram 2.2 - Business Mfairs -

Subprogram 2.3 - Consumer Affairs

Program 3 - Community Affairs

Subprogram 3.1 -Human Rights and Equal Opportunity Commission Subprogram 3.2 - Law Refonn 3.2.1- Family Law Council

3.2.1- Law Refonn Commission Subprogram 3.3 - Office of Film and Literature Classification Subprogram 3.4 - Provision of Legal Aid and Family

Services

238

F40

F40 F41

F42 F43 F43

F45

F46

F47

F60 F60 F61

F67

F73 F73

F74

F75

Program 4- Administration of Justice

Subprogram 4.1 - Federal Court of Australia Subprogram 4.2 - Family Court of Australia

Program 6 - Maintenance of Law, Order and Security

Subprogram 6.1 -Australian Federal Police

General

Copyright payments for music

Program 4- Administration of Justice

Subprogram 4.5 - Auscript Subprogram 4.6 - Courts Building Services Program 5 - High Court of Australia

Subprogram 5.1- Management of the Business of the High Court of Australia

Program 6- Maintenance of Law, Order and Security

Subprogram 6.2- National Crime authority Subprogram 6.4 - Community Protection and Security 6.4.4 - Australian Protective Service 6.4.1 - Federal Justice Office

6.4.2 - Australian Institute of Criminology Program 6 - General: Review of law enforcement agencies Subprogram 6.6 - Office of the Director of Public Prosecutions Subprogram 6.7- War Crimes Prosecutions Support Unit Subprogram 6.6 - Office of the Director of Public

Prosecutions

Subprogram 6.8 - Australian Security Intelligence Organisation

239

F75 F78

F79

F84

F85 F86

F87

F88

F89 F90 F92 F92

F93 F94

F95

F96

ESTIMATES COMMITTEE F HANSARD INDEX

Thursday, 2 September 1993

General

Attendees Chainnan's statement

Immigration and Ethnic Affairs Portfolio

General

Financial statements Transfer of Deputy Secretary

Program 1 - Population and Immigration Research

Subprogram 1.1

Program 2 - Entry

Subprogram 2.1 Subprogram 2.2 Subprogram 2.4 Subprogram 2.5

- Bureau of Immigration & Population Research

- Migration and Temporary Entry - Refugee and Humanitarian - Investigation and Enforcement - Internal Review

Program 3 - Citizenship

Subprogram 3.1 - Citizenship

Program 4 - Determination of Refugee Status

Subprogram 4.1 Subprogram 4.2 - Determination and Services - Refugee Review Tribunal

Program 5 - Settlement and Ethnic Affairs

Subprogram 5.1 Subprogram 5.2 - Ethnic Affairs - Settlement

Program 6- Corporate Services

Subprogram 6.1 - Management Services

240

F99 F100

F100 F102

F111

Fl14 F133 F139 F144

F147

F151 F157

F163 F164 F170

F167

ESTIMATES COMMITTEE F- BUDGET ESTIMATES 1993-94

DEPARTMENT OF THE SENATE

Questions on Notice requested prior to/during hearing

Senator Program Subject Date received/ Date reply Comments Additional

No. Hansard page received/date information

to Senators (VoiJpage)

Short General Grants to trade unions and community groups in 16.8.93 26.8.93 Written prior 1,19

1992-93

Short General Research studies and opinion polls in 1992-93 16.8.93 26.8.93 Written prior 1,20

Short General Advertising or promotional projects in 1992-93 16.8.93 26.8.93 Written prior 1,21

Calvert 5 Fringe benefits tax liability F22 8.9.93 1,23

ESTIMATES COMMITfEE F - 13UDGEf ESTIMATES 1993-94

DEPARTMENT OF TilE PARLIAMENTARY LffiRARY

Questions on Notice requested prior to/during hearing

Senator Program Subject Date received/ Date reply Comments Additional

No. Hansard page received/date information

to Senators (Vol/page)

Short General Grants to trade unions and community groups in 16.8.93 24.8.93 Written prior 1,25

1992-93

Short General Research studies and opinion polls in 1992-93 16.8.93 24. 8.93 Written prior 1,26

Short General Adve rti sing or promotional projects in 1992-93 16.8.93 24.8.93 Written prior 1,27

2

ESTIMATES COMMITfEE F- BUDGET ESTIMATES 1993-94

DEPARTMENT OF TI-lE PARLIAMENTARY REPORTING STAFF

Questions on Notice requested prior to/during hearing

Senator Program Subject Date received/ Date reply Comments Additional

No. Hansard page received/date information

to Senators (VoVpage)

Short General Grants to trade unio ns and community gro ups in 16.8.93 25.8.93 Written prior 1,28

1992-93

Short General Research studies and opinion polls in 1992 -93 16.8.93 25. 8.93 Written prior 1,28-9

Sho rt General Advertisin g o r promo ti o nal pro jects in 1992-93 16.8.93 25.8.93 Written pri or 1,29

Calvert 4 Ou tdoor training ac ti vi ti es F35 29.9.93 1,30 -1

3

ESTIMATES COMMITTEE F- BUDGET ESTIMATES 1993-94

JOINT HOUSE DEPARTMENT

Questions on Notice requested prior to/during hearing

Senator Program Subject Date received/ Date reply Comments Additional

No. Hansard page received/date information

to Senators (VoUpagc)

Short General Grants to trade unions and community groups in 16.8.93 6.9.93 Wrinen prior 1,33

1992-93

Short General Research studies and opinion polls in 1992-93 16.8.93 6.9.93 Wrillen prior 1,34

Short General Advertising or promotional projects in 1992-93 16.8.93 6.9.93 Wrinen prior 1,35

Calvert Genera l Parliament Shop - receipts F36 26.8.93 Answer

incorporated in proof Hansard at page F60

4

ESTIMATES COMMlTfEE F- BUDGET ESTIMATES 1993-94

DEPARTMENT OF IMMIGRATION AND EIHNIC AFFAIRS

Questions on Notice requested prior to/during hearing

Senator Program Subject Date received/ Date reply Comments Additional

No. Hansard page received/date information

to Senators (VoVpage)

Patterso n Gene ral Consultancies - wo men's issues 24.8.93 2.9.93 Written prior 1,11 5-6

Patterson Gene ral De tails of women's publicatio ns 24.8.93 2.9.93 " 1,108

Patterson Gene ral Co py of Natio nal Agenda for Multicultural Australi a 24.8.93 2.9.93 " 1, 109

Patte rson General "Blue Coll ar & Beyo nd" - imple menta tio n 24.8.93 2.9.93 " 1, 110-11

Patterson Gene ral Women's Iss ue pl an 24.8.93 2.9.93 " 1, 113-1 4

Patterson General APPOINT system -quarterly reports 24.8.93 2.9.93 " 1,112

Short General Details of portfolio bodies 16.8.93 2.9.93 " 1,100-06

Short General Grants to ethnic organisations since April 1993 16.8.93 2.9.93 " 1,58-9

Short General Grants to trade unions/community groups 16.8.93 2.9.93 " 1,60-88

Short General Research studies undertaken 16.8.93 2.9.93 " 1,94-98

Short General Advertising or promotional projects 16.8.93 2.9.93 " 1,89-93

Short General Migrant Resource Centre - computers 2.9.93 18.10.93 1,181-83

Short General "Post Migration" maga zine 2.9.93 ' 1,186

Short 1.1 Lon gitudinal mi grant survey 2.9.93 ' 1,119-21

5

Senator Progr.un Subject Date received/ Date reply Olmments Additional

No. Hansard page received/date information

to Senators (Yol/page)

Short 2.1 Temporary entrant s - applica tions for re fu gee statu s 16.8.93 2.9.93 1,99

Sh o rt 2.1 Seri al spo nso rship - overseas practi ce F116 18. 10.93 1,125

Sho rt 2.1 Ass urances of support - breaches/prosecutio ns F116&119 " 1,126

Short 2.1 Multiple re-entry provisio ns - busin ess res id ent s Fl27-8 " 1,122-24

Short 2.2 Humanita ri an appl ica ti o ns -details of 22 applica nt s 2. 9. 93 1,158-162

Short 2.2 Former Yu gos lav ia - mi grant numbers F134 " 1,135

Sh o rt 2.2 Chinese TEP stude nt s - travel to China F138 " 1, 127,136,138

Short 2.2 Voluntary student returnees to China F138 " 1,137

Short 2.4 Report on overstays F141 " 1,128-134

0

Short 2.4 Departmental officers - fraud ch arges F142 " 1,142

Short 2.4 Migration Agents Registration Scheme " 1,140

-cost - Mr Hand's application F143

Harradine 2.4 Migration Agents Registration Scheme 2.9.93 " 1,139

- operatio ns of Scheme

Sho rt 2.6 IRT - operations details 2.9.93 " 1,143

Short 3.1 Revoca tion of citi ze nship case F148 " 1,146

Short 3.1 Eli gibility fo r citi zenship - cases Fl49-50 " 1,147-5 0, 153

Short 3.1 Sheikh Hilaly - applica ti o n fo r citi ze nship F150 " 1,151

6

Senator Program Subject Date received/ Date reply Comments Additional

No. Hansard page received/date information

to Senators (VoVpage)

3.1 Renunciation of citizenship . overseas practice F150 18.10.93 1,152

Short

Short 4.1 Federal Court case · refu gee sta tus F155

. 1,157

Sh o rt 4.2 RRT - details o n membership F159 . 1,163

Short 5.1 Operati ons of IDWG on settlement iss ues F1 64

. 1,175

Short 5.1 Operations of National Settlement Advisory Council F164

. 1,176-180

Short 5.2 Grants to ethnic organisations (last 5 years) F164

. 1,167-8, 172

Short 5.2 Funding criteria - ethnic organisations F164 . 1,169-71

Tambling 5.2 Details of Telephone Typewriter Relay Service 30.8.93 2.9.93 1,117-18

Short 5.2 Guidelines: gra nts-i n-aid program F165 18.10.93 1,173-74

Short 5.2 AMEP tuition - co ncess ional category F167 . 1,184

Sho rt 6.1 Lease arra ngements - Dandenong office F168 . 1,185

7

ESTIMATES COMMI1TEE F- BUDGET ESTIMATES 1993-94

ATTORNEY GENERAL'S DEPARTMENT

Questions on Notice requested prior to/during hearing

Senator Program Subject Date received/ Date reply Comments Additional

No. Hansard page received/date information

to Senators (Vollpage)

Short General Grants to trade unions and community groups in 16.8.93 18.10.93 Written prior 2,5-13

1992-93

Short General Research studies and/or opinion polls in 1992-92 16.8.93 18.10.93 Written prior 2,14-19

Short General Advertising or promotional projects in 1992-93 16.8.93 18.10.93 Written prior 2, 20-30

Patterson General Consultants engaged in relation to women's issues 24.8.93 18.10.93 Written prior 2,30-33

Patterson General Notice of release of publications on women's iss ues; 24.8.93 18.10.93 Written prior 2,34-57

Discussion paper on superannuation in family law

Patterson 1.1 Age discrimination working party and taskforee 20.8.93 18.10.93 Written prior 2,58-60

Patterson 1.1 Funding of Australian Institute of Judicial 24.8.93 18.10.93 Written prior 2,61

Administration for gender awareness courses

Patterson 1.1 APPOINT system 24.8.93 18.10.93 Written prior 2,62

Tambling 1.1 Resources applied to Mabo legislation F 44 18.10.93 2,63-126

Tambling 1.1 Paper on legal implications of Mabo F 44 18.10.93 2,63-126

Tambling 1.1 Resources made ava ilable to RAC, especially Office of F 45 18.10.93 2,127

International Law for coastal zone inquiry

Calvert 1.1 Resources for promotion of user pays system F 47 18.10.93 2,128

Calvert 1.1 LOIS system contract 26.8.93 31.8.93 Tabled at hearing, F 48 2,129-30

8

Senator Program Subject Date received/ Date reply Comments Additional

No. Hansard page received/date information

to Senators (Vol/page)

Vanstone 1.1 Cost and detai ls of delegations to Paris and Singapore F 51 18.10.93 2,131-3

Calvert 1.1 Expectation of outcome of cases about recovery of F 53 18.10.93 2,134

mo nies paid by overseas students

Vanstone 1.1 Arguments in case on freedom of speech F 54 18.10.93 2,135-57

Vanstone 1.1 Legal Practice Briefing Bulletins F 54 18.10.93 2,158-96

Vanstone 1.1 Media release about access to legislation F 55 18.10.93 2,197-206

Vanstone 1.1 Simplification of procedures for individuals dealing F 55 18.10.93 3,1-9

with Commonwealth law

Vanstone 1.1 List of law reform priorities F 56-7 18.10.93 3,10-74

Vanstone 1.1 Copy of corporate plan F 56 18.10.93 3,10

Vanstone 1.1 A-G's sta tement about time frame for law reform F 57 18.10.93 3,10-74

Vanstone 1.1 Legis la tio n covering prosecution of Australians for F 58 18.10.93 3,75-80

offences committed overseas

Vanstone 1.1 Number and cost of prosecuti ons for offences F 58 18.10.93 3,75-80

committed overseas

Kemp 1.1 Papers about workings of optional protocols F 69 18.10.93 3,81-105

Kemp 1.1 Impact on Australian law and legal processes of F 69 18.10.93 3,81-105

international conventions

Vanstone 1.1 Copyright fees, origin of request to agencies for details F 85 18.10.93 3,106-7

Short 2.3.1 Australian Consumer's Council, membership and costs 26.8.93 18.10.93 Tabled at hearing, F 60 3,108

Short 2.3.1 International Union of Consumer Organisations, 26.8.93 18.10.93 Tabled at hearing, F 60 3.109

payments to, attendance and costs

q

""' U1 0

Senator

Short

Vanstone

Kemp

Patterson

Patterson

Patterson

Patterson

Tambling

Tambling

Short

Vanstone

Calvert

Kemp

Program No.

2.3.1

2.3.1

2.3.1

3.1

3.1

3.1

3.1

3.1

3.1

3.1

3.1

3.1

3.1

Subject

Funding of Public Interest Advocacy Centre and Cashman & Partners

Copy of correspondence abo ut Dr Frank Peters

Membership of Board of National Prices Network

Sex Discrimination Commissioner - notice of release of publications on women's issues - cons ultants engaged in relation to women's issues - cost of SDC for last 3 financial yea rs

Sex Discrimination Commissioner, consultants engaged in last 5 financial years

Sex Discrimination Commiss ioner, budget in 1993-94; provis ion of speeches in future

Increase in HREOC budget

ATS I Social Justice Unit - en titlements and resources, 1992-93, 1993-94 - terms of reference

HREO Commissioner, criticisms of Government

HREOC liaison wit h DIEA abo ut detention of boat people

Report on police and racist violence, and cost

Com pl ai nts about Telecom

Cons ultations on signing of optional protocols, responses of governments

10

Date received/ Dale reply Comments Additional

Hansard page received/date information

to Senators (Vol/pagc)

26.8.93 18.10.93 Tabled at hearing, F 60 3,110

F 65 18.10.93 3,111-15

F 65 18.10.93 3,116

24.8.93 26.8.93 Written prior 3,117-204

24.8.93 26.8.93 Written prior 3,205-6

25.8.93 18.10.93 Written prior 3,207

25.8.93 18.10.93 Written prior 3,208-9

F46 18.10.93 3,210- 11

F 46 18.10.93 3,212

26.8.93 18.10.93 Tabled at hearing, F 60 3,213-27

F 67 18.10.93 4,1

26.8.93 18.10.93 Tabled at hearing, F 68 4,2-3

F71 18.10.93 4,4-19

Senator Program Subject Date roccM:d/ Date reply Comments Additional

No. Hansard page roccived/date information

to Senators (VoVpage)

Kemp 3.1 Copies of documents - human rights fact sheet, F71 18.10.93 4;4-19

pamphlet on eliminati on of discrimination in workplace, training packages, Signposts

Kemp 3.1 Human rights committee, processes and appeals F 71 -2 18.1 0.93 4,4-19

Kemp 3.1 Nature of two complaints under consideration by F72 18.10.93 4,4-19

human rights committee

Calvert 3.1 Signing of instruments, Convention on Rights of 30.8.93 18.10.93 Written 4,20-33

Child; effects on Australian law

Vanstone 3.1 Program slippage in new policy program elements 31.8.93 18.10.93 Written 4,34-8

Vanstone 3.1 ATSI Social Justice Commissioner, relationship to 31.8.93 18.10.93 Written 4,34-8

ATSIC and PM&C

Vanstone 3.1 Recommendation by HREOC about Convention on 31.8.93 18.10.93 Written 4,34-8

the Rights of the C.hi ld

Vanstone 3.1 Resource impact of input to reports to international 31.8.93 18.10.93 Written 4,34-8

forums

Patterson 3.2. 1 LRC Report 54 and speeches about women's iss ues 24.8.93 18.10.93 Written prior 4,39-40

Patterson 3.2.1 LRC Report 55, expenditure, 1992-92, 1993-94 25.8.93 18.10.93 Written prior 4,41-2

Calvert 3.2.1 Cost of relocating Law Reform Commission offices F 73 18.10.93 4,43

Newman 3.2.1 LRC Report 55, copy and response 2.9.93 18.10.93 Written 4,44-7

Newman 3.2.1 Review of children's services legislation 2.9.93 18.10.93 Written 4,48-50

Patterson 3.3 Violent video games 24.8.93 18.10.93 Written prior 4,51

11

Senator Program Subject Date received/ Date reply Comments Additional

No. Hansard page received/date information

to Senators (Vol!page)

Patterson 3.3 OFLC - budget; film and video research report; LRC 25.8.93 18.10.93 Written prior 4,62-226

Report 54 on censors hip procedure; regula•ion of video games; provision of reports in future

Newman 3.3 Film and video research report 2.9.93 18.10.93 Written 4,227

Short 3.4 Legal aid to boat people, costs and legal basis 26.8.93 18.10.93 Tabled at hearing, F 60 4,228-9

Calvert 3.4 Legal aid, particular cases 26.8.93 18.10.93 Tabled at hearing, F 75 4,230-31

Newman 3.4 Family services, peak agency funding 2.9.93 18.10.93 Written 5,1-266

McKiernan 4.1 Costs of travel by Justice Einfeld F 78 18. 10.93 4,232

McKiernan 4.1 Details and costs of travel by Federal Court judges 26.8.93 18.10.93 Tabled at hearing 4,233-41

Vanstone 4.5 Auscript response to audit findings F 85 18.10.93 4,242

Calvert 4.6 Cost of and reasons for delay in construction of Perth F 87 18.10.93 4,243

court buildings

Vanstone 4.6 Funds for Federal Court, Melbourne; in adequacies, 31.8.93 18.10.93 Written 4,244

Melbourne and Adelaide Federal Court buildings

Vanstone 6.1 ANAO recommendations not agreed by AFP F 80 18.10.93 4,245-6

Calvert 6.1 Complaints to AFP about Telecom F 82 18.10.93 4,247

Calvert 6.1 Ex-protected witnesses - victims of crime F 83 18.10.93 4,248

Vanstone 6.2 NCA, breakdown and forecast of travel costs F88 18.10.93 4,249-50

Vanstone 6.4.1 'White Report' on law enforcement F 93 18.10.93 4,25 1

12

"' (J1 w

Senator

Patterson

Calvert

Calvert

Vanstone

Vanstone

Program No.

6.4.2

6.4.2

6.4.4

6.6

6.6

Subject

Australia n Institute of Criminology - Notice of release of publications on women's issues - Budget for research, conferences etc. - Co py of publications

AIDAB report on justice agencies in PNG

Changes to arrangements after Iranian embassy incident

DPP, number of and resources for tax evasio n cases

Corporate crim e targets, progress on cases

Date received/ Date reply Comments Additional

Hansard page rcceM:d/date information

to Senators (Vol/page)

25.8.93 18.10.93 Written prior 4,252-6 1

F92 18.10.93 4,262

F90 18.10.93 4,263

F94 18. 10.93 4,264-6

F 94 18.10.93 4,264-6

ESTIMATES COMMITTEE F

REPORT ON THE SUPPLEMENTARY MEETINGS

NOVEMBER 1993

255

CHAIRMAN:

MEMBERS:

Secretary:

Research Staff:

MEMBERS OF THE COMMITTEE

Senator Michael Beahan (Western Australia)

Senator Paul Calvert (Tasmania)* Senator Barney Cooney (Victoria) Senator Susan Knowles (Western Australia)*# Senator Jim McKiernan (Western Australia) Senator James Short (Victoria)*#

* Senators Baume, Ellison and Vanstone replace Senators Calvert, Knowles and Short for the consideration of the estimates of the Parliamentary Departments.

# Senators Ellison and Vanstone replace Senators Knowles and Short for the consideration of the estimates of the Attorney-General's portfolio.

Michael McLean

Claire Shepherd Peter Short

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TABLE OF CONTENTS

List of members

Report to the Senate

Minutes of Proceedings

Public hearing- Friday, 12 November 1993

Private meeting- Thursday, 18 November 1993

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ESTIMATES COMMITTEE F

REPORT TO THE SENATE

Estimates Committee F presents its report to the Senate on matters arising from the conduct of a supplementary meeting by the Committee.

Introduction

1. On 19 August 1993 the Senate referred to the Committee for examination and report the particulars of proposed expenditure for the service of the year ending on 30 June 1994 and the particulars of certain proposed expenditure in respect of the year ending on 30 June 1994 of the following portfolios:

Parliament;

Immigration and Ethnic Affairs; and

Attorney-General.

2. The Committee considered the particulars of proposed expenditure referred to it in public session on 26 August 1993 and 2 September 1993, and tabled its report on 7 October 1993. In its report, in accordance with the Senate's order of 6 May 1993 providing for the conduct of supplementary meetings by estimates committees, the Committee announced that it had set 18 October 1993 as the day for the submission to it of written answers or additional information relating to the proposed expenditures examined by the Committee. The Committee received all written answers or additional material on or before that date, which enabled the Committee to table a report containing schedules of the questions taken on notice before or at the hearings and five volumes of additional information on 21 October

1993 .

3 The Committee's report also set 12 November 1993 as the day for the commencement of supplementary meetings and 9 November 1993 as the last day for Senators to give notice of matters to be raised at the meetings. Notices of matters were lodged with the Committee by six Senators by the deadline. One matter was raised in relation to Parliament's Joint House Department and several matters were raised in relation to the Immigration and Ethnic Affairs and Attorney­ General's portfolios.

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4. The Committee completed its examination of the matters of which notice had been given at a supplementary meeting held in public session on lf November 1993 and received evidence from the President of the Senate, Senator the Ron. Kerry Sibraa and the Minister for Immigration and Ethnic Affairs, Senator the Ron. Nick Bolkus and officers of the departments and agencies concerned. Copies of the Minutes of Proceedings are incorporated in this report. The Hansard volume is also tabled in conjunction with this report. Further written explanations furnished by departments will be presented separately in volumes of additional information.

5. The Committee draws the attention of the Senate to the following matters arising from the Committee's supplementary meeting.

New procedures

6. This is the first report of the Committee following the conduct of a supplementary meeting as provided for in the new procedures adopted by the Senate on 6 May 1993. The Committee wishes to express its support for the concept of supplementary meetings, which has enabled Committee members and other Senators to seek clarification of matters canvassed at the initial round of hearings and to raise new matters with Ministers and officials. The Committee considers the new procedures preferable to the former Committee of the Whole system under which questioning was restricted to the Minister.

7. The Committee experienced difficulty with one aspect of the new procedures. Paragraph (3) of the Senate's order requires Senators to lodge notices of matters for discussion at the supplementary meetings of an Estimates Committee not less than three days before the day

fixed by the Committee for the commencement of supplementary meetings. After consulting with Senator Sibraa and Senator Bolkus about their availability to attend a supplementary meeting, the

Committee had provisionally scheduled one day of hearings for each of their respective portfolio responsibilities, '14 days apart. However, the practical effect of paragraph (3) of the Senate's order was that Senators would have been required to lodge notices of matters to be raised at the second supplementary meeting at least 17 days earlier. In these circumstances, the Committee opted to commence its

supplementary meetings on the second date. Fortunately, both Senator Sibraa and Senator Bolkus were available to attend the supplementary hearing held that day.

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8. The intent of the Senate order was to provide at least three days

notice to Ministers and officials of the matters to be discussed at the supplementary meeting. The Committee believes that the intent of the Senate's order could be met, in circumstances where discussion of different portfolios is scheduled for different dates, by varying the order to enable notices of matters to be given not less than three days before the first day of hearing of a particular portfolio. The Committee recommends that the Procedure Committee give consideration to this issue.

Adverse reflection

9. In the course of the Committee's supplementary hearing, evidence was given which could be construed as reflecting adversely on Mr Gerry Hand, the former Minister for Immigration and Ethnic Affairs, in connection with his application for registration as a migration agent.

10. In accordance with the requirements of the procedures for the protection of witnesses before Senate committees, adopted by the Senate on 25 February 1988, the Committee has provided Mr Hand with a copy of the relevant transcript of evidence and has invited him to respond to that evidence in a written submission.

Recommendations

11. The Committee recommends:

1. that the Senate approve, without amendment or request. expenditure in accordance with the estimates considered by the Committee; and

2. that the Procedure Committee give consideration to paragraph (3) of the order of the Senate of 6 May 1993 with a view to recommending an amendment to the order which would allow notices of matters to be lodged with estimates committees at least three days before the first day of the supplementary meeting in relation to the portfolio in question.

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Acknowledgments

12. The Committee expresses its appreciation of the assistance given during its supplementary hearing by the President of th e Senate, Senator the Hon. Kerry Sibraa, and the Minister for Immigration and Ethnic Affairs, Senator the Hon. Nick Bolkus, and by the officials of

the departments and agencies who appeared before the Committee.

Mich ael Beahan Chairman

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om . Gerry Hand &. Assocu..tes Pty Ud I o : Mr hlh cru•el Mct..ea.n Uate. 1 t:Jtll/-... 1 un• . u:. .:>o . .JoO

\lr \fichad \[cLean

Senate Estimates Committee F

Parliament House Cantx:rra .-\CT 2600

\!r \!clean

Hand

PO Box332 Broadford Vic 3658

I refer to YOUr letler o f 15 :'\o\ ember 1993 in relation to the matters raised at a of the Estimates Committee F on 12 :\ 1993.

I understand fr om tran script of that Short about

gi' en in in Federal Court of :\!o Gek Buoy and Ors v \{inister for

Immigration and Ethnic .-\ffairs in relation to my stated occupation, as in The Age on 12 June 1993 .

I note that the has no t provided me with a copy of that article.

On 11 June 1993 I appeared on subpoena in the \lok case. I was asked by Counsel:

Question: \1r Hand , present occupation°

Answer: Primary consultant but not doing a lot because I ha\·e been on the stand for this case.

Question: The consultant's - is that the migration consultant or. .. 'l

Answer: I ha,·e registered as a migration consultant to witi1 law because you are unable to gi,·e ad,·ice to am body. as you would be aware. \Yith ou t regi stering: that is nO\\ ti1e Ia'' · (ppl683 -1684 transcript).

The C ommittee should no te that I stated that" I ha,·e regi stered" not" I am registered" .

The details of my regi stra ti on are as follows:

1. On 6 \fay 1993 I lodged an application for registration as a \figration

2 . On 12 \fay 1993 notice of my application \va s gazetted . 262

-rom :, G"eny Hand&. Auoci &tet Pry Ud To: Mr Mich ael Mclean Oat• : 18/11/93 n,.: 22:59:29

3. On 9 July 1993 my application for as a was

In my I also that I was a consultant. I confim1 that this was

I did work as a consultant on not within ambit of Act and I

conscious[\" did not gi ,·o: an\" in contra\·<:! nti on ofth<:! .-\ct as m,· application ''as not fulh · pr1."1C<:!Ssed.

artie!<:! in Age stated:

\lr Hand. no" a migration consultant and primary \\as gi,·ing e\·idence in an applic ati on by Cambodian to the Department of Immigrat1on and

Ethnic Affairs of their applicati ons for refugee status.

Any implication in th at ar1 icle that I \\·as alrea dy practising as a mi gra ti on agent is incorrect.

I ha\"e alwa ys acted in accordan ce with the law and am concemed nO\\ to protect my personal and reputation.

Short's question to as to I or for that matter the Depar1ment took

a.JI;.' action to "correct" the used i11 1l1e Age a.tiicle is. with re spect. irrekYant I

did not commence my \\·orh: as a migration agent until after I \\·as registered.

If the Committee ha s infonnati on to the contrary then of course th e prOJXr course of action would be for Committee to provide it to me. so that I may respond. and to the D<:!par1mcnt so that it rn a;• take any appropriate action.

Gerry Hand

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Page 3 of a

THE SENATE

ESTIMATES COMMITTEE F

MINUTES OF PROCEEDINGS N0.7

FRIDAY, 12 NOVEMBER 1993

t. Mfo:J<:J'ING: The Committee met in public session at 9.16 a.m. in Co mmittee Room 2Sl. Senator Beahan took the Chair.

BY THE CHAIRMAN: The Chairman made an opening

statement.

:J . PARTICULARS OF PROPOSED EXPENDITURE FOR 199.3-94:

.JOINT IIOUSE DEPARTMENT: The Committee commenced its su pplementary consideration of the proposed expenditure of the Joint I louse Department.

In attendance was the President of the Senate, Senator the Hon. Kerry S1 hraa, accompanied by the folk officers:

.Joinl House Department:

Mr M . Bolton, Secretary r It Wedgwood, Assistant Secretary, Commercial Services

M r M . Jones, Manager, Artworks

Department of Finance:

Ms R Collins Ms L \Vest

4. CONSIDERATION OF A MATTER: The Chairman invited questions on a matter raised in relation to the Joint House Department.'·

The following document was tabled:

· copy of a minute from Ms Ann Stewart, Senior Adviser, Speaker of t he House of Representatives to Mr M Bolton, Secretary, Joint House Department dated 22 October 1992 entitled Artworks for Cabinet Room- Submission No 278.

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The Committee concluded its supplementary examination of the proposed expenditure of the Joint House Department, subject to undertakings by the President and officers to provide additional information to the Committee.

5. SUSPENSION OF SI'M'ING: The Committee suspended its sitting betwee n 10.15 a .m. and 10.25 a.m.

6 PARTICULARS OF PROPOSED EXPENDITURE FOR 1993-94: IMMIGRATION AND ETHNIC AFFAIRS PORTFOLIO

The Committee commenced its supplementary consideration of the proposed expenditure of the Immigration and Ethnic Affairs portfolio.

In attendance was the Minister for Immigration and Ethnic Affairs, Senator the Hon. Nick Bolkus, accompanied by the following officers:

Department of Immigration and Ethnic Affairs:

Mr C. Conybeare, Secretary Mr D. Richardson, Deputy Secretary Mr M. Sullivan, Deputy Secretary Mr D. Wheen, First Assistant Secretary, Migration Division Mr V. McMahon, Assistant Secretary, Migration Planning Branch

Mr E. Brookbanks, Assistant Secretary, Overseas Operations Branch Mr L. Bugden, Assistant Secretary, Refugees, Asylum and Internationa l Branch Ms S. Ingram, Acting First Assistant Secretary Entry, Compliance a nd Systems Division Mr D. Crennan, Director, Immigration Detention Centres, Project Section Mr E. Joseph, Assistant Secretary, Entry Branch Mr D. Castello, Assistant Secretary, Executive Support and Review Branch Mr P. Hughes, Assistant Secretary, Migrant Entry and Citizenship Branch Ms J. Bedlington, First Assistant Secretary, Onshore Refugee Division

Ms P . Godwin, Acting Assistant Secretary, DORS Program Support Branch Professor L. Certoma, Principal Member, Refugee Review Tribunal Ms P. Leehy, Registrar, Refugee Review Trihunal Mr D. Storer, First Assistant Secretary, Settlement and Ethnic Affairs Division Mr D. Page, Assistant Secretary, Languages Branch Ms P. McCahey, First Assistant Secretary, Corporate and International Division Mr A. Rizvi, Assistant Secretary, Resource Management Branch Mr P. Freeman, Director, Budget Management Section

Mr G. Mowbray, General Counsel .

Mr A. Metcalfe, Assistant Secretary, Advisings, Legislation and Legal Polley Branch

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Mr P Antcliff MrJ Ryan

7. CONSIDERATION OF THE MATTERS: The Chairman invited questions on the matters raised in relation to the Immigration and Ethnic Affair s por tfolio .

8. SUSPENSION OF SI'ITING: The sitting was suspended between 12.33 p.m. and 1.07 p.m.

9. RESUMPTION OF SI'ITING: The sitting resumed. Senator Cooney, Acting Chairman, took the Chair.

Senator Beah an r esumed the Chair at 1.40 p.m.

Questions wer e placed on notice by Senator Short on behalf of Senator Knowles.

The Com mittee concluded its supplementary examination of the proposed expenditur e of the Immigration and Ethnic Affairs portfolio, subject to un der takings by the Minister and officers to provide addition a l in for mation to the Committee.

10. SUSPENSION OF SITIING: The Committee suspended its sitting between 3.08 p.m. and 3.12 p.m.

11. PARTICULARS OF PROPOSED EXPENDITURE FOR 1993-94: ATTORNEY-GENERAL'S PORTFOLIO:

The Committee commenced its supplementary consideration of the proposed expenditure of the Attorney-General's portfolio.

In attendance was Senator the Han. Nick Bolkus, Minister for Immigration and Ethnic Affairs, representing the Attorney-General, accompanied by th e following officers:

Attorney-General's

Mr S. Skeh ill, Acting Secretary Mr N. Reaburn, Deputy Secr etary Mr D. Bouch er , Austr alian Government Solicitor Mr T . Gallagher, General Manager , Resources Mr J . Wood, Director, Federal Bureau of Consumer Affairs Mr R. Orr, Deputy General Counsel Mr M. F ish, Manager, Finance and Property Branch

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Mr H. Burmester, Principal International Law Counsel, Office of International Law Ms R. Frost, Senior Counsel, Civil Law Division Mr E. Lorkin, Associate Director, Office of the Director of Public Prosecutions Ms S . Walker, Acting Senior Assistant Director, Administration, Office of the

Director of Public Prosecutions Mr G. Gray, Senior Assistant Director, Office of the Director of Public Prosecutions

Office of Parliamentary Counsel:

Ms H. Penfold, First Parliamentary Counsel Mr T. Perkins, Executive Officer

Human Rights and Equal Opportunity Commission:

Ms S. Varova, Executive Director Mr N. Waters, Head, Privacy Branch Mr T. McKnight, Acting Assistant Secretary, Management Mr M. Nicholls, Director, Legal Services

Law Reform Commission:

Ms C. Watts, Secretary

Department of Finance:

Ms L West

12. CONSIDERATION OF THE MATIERS: The Minister made an opening statement. The Chairman invited questions on the matters raised in relation to the Attorney-General's portfolio.

The Committee resolved to incorporate in the transcript a

memorandum received from Mr E Lorkin, Associate Director, Commonwealth Director of Public Prosecutions dated 11 November 1993 forwarding responses to questions foreshadowed by Senator Ellison.

The Committee concluded its supplementary examination of the proposed expenditure of the Attorney-General's portfolio, subject to undertakings by the Minister and officers to provide additional information to the Committee.

13. ADJOURNMENT: The Committee adjourned at 5.13 p.m.

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THE PAAUAMENT OF THE COMMONWEALTH OF AUSTRALIA

PARLIAMENTARY PAPER No. 456 of 1993

ORDERED TO BE PRINTED JSSN 0727-418