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Estimates - Senate Committees - Reports - Particulars of proposed additional expenditure in respect of year ending 30 June - 1989 - Committees A, B, C, D and F - Reports


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The Parliament of the Commonwealth of Australia

/

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

Reports to the Senate on Departmental Additional Estimates 1988-89 May 1989

The Parliament of the Commonwealth of Australia Parliamentary Paper No. 475 of 1989

Ordered to be printed ISSN 0727-4181

The Parliament of the Commonwealth of Australia

ESTIMATES COMMITTEES

A, B, C, D, E AND F

Reports to the Senate on Departmental Additional Estimates 1988-89

May 1989

Australian Government Publishing Service Canberra

© Commonwealth of Australia 1990

ISBN 0 644 09971 2

Printed in Australia by R. D. RUBIE, Commonwealth Government Printer, Canberra

1. Resolution of the Senate v

2. Estimates Committee Groups vi

3. Estimates Committee A Membership of Committee 2

Report 3

Reservation 11

Minutes of Proceedings 3 April 1989 (2 meetings) 19

11 April 1989 27

20 April 1989 31

2 May 1989 33

Hansard Index to issues raised in public hearings 35

4. Estimates Committee B Membership of Committee 58

Report 59

Minutes of Proceedings 3 April 1989 63

13 April 1989 67

Hansard Index to issues raised in public hearings 69

5. Estimates Committee C Membership of Committee 76

Report 77

Minutes of Proceedings 3 April 1989 83

11 April 1989 88

3 May 1989 91

Hansard Index to issues raised in public hearings 93 6 * * * * *

6. Estimates Committee D Membership of Committee 102

Report 103

Minutes of Proceedings 13 April 1989 l11

14 April 1989 H 8

3 May 1989 125

Hansard Index to issues raised in public hearings 127

CONTENTS PAGE

iii

140 141 153

7. Estimates Committee E Membership of Committee Report Reservation Minutes of Proceedings

11 April 1989 165

13 April 1989 167

14 April 1989 170

3 May 1989 171

9 May 1989 172

10 May 1989 Hansard Index to issues raised in

173

public hearings 175

Estimates Committee F Membership of Committee 188

Report Minutes of Proceedings

189

13 April 1989 193

14 April 1989 (2 meetings) 198

3 May 1989 (2 meetings) Hansard Index to issues raised in

202

public hearings 205

iv

RESOLUTION OF THE SENATE PASSED ON 9 MARCH 1989

1. Extract from Senate Journals, 9 March 1989, pages 1465-6.

15 PA RT IC U L A R S O F P R O P O S E D A D D IT IO N A L E X P E N D IT U R E 1988-89— PAPERS— R E F ER E N C E T O E S T IM A T E S C O M M IT T E E S : The Manager of Government Business (Senator Ray) tabled the following Papers: Particulars of Proposed Additional Expenditure for the Service of the year

ending on 30 June 1989 in relation to the Parliamentary Departments. Particulars of Proposed Additional Expenditure for the Service of the year ending on 30 June 1989. Particulars of Certain Proposed Additional Expenditure in respect of the year

ending on 30 June 1989. Senator Ray, by leave, moved— (1) That the Particulars of Proposed Additional Expenditure for the Service of the year ending on 30 June 1989 in relation to the Parliamentary

Departments, the Particulars of Proposed Additional Expenditure for the Service of the year ending on 30 June 1989 and the Particulars of Certain Proposed Additional Expenditure in respect of the year ending on 30 June 1989, be referred forthwith to Estimates Committees for examination and

report.

(2) That the Committees consider Proposed Additional Expenditure in the Estimates Committee groupings agreed to by resolution of the Senate of 1 September 1988. (3) That the Committees report to the Senate on or before Thursday, 4 May

1989.

(4) That, subject to the sittings of the Senate, the Committees meet to hear evidence in accordance with the following schedule: (a) Committees A, B and C (i) Tuesday, 11 April

(ii) Monday, 17 April (b) Committees D, E and F (i) Thursday, 13 April (ii) Friday, 14 April

(c) if required, on such other days as determined by the Committees. Senator Lewis moved an amendment: Leave out subparagraphs 4 (a) (i) and (ii), insert: (i) Friday, 7 April

(ii) Tuesday, 11 April Debate ensued. Senator Lewis, by leave, withdrew his proposed amendment. Senator Ray, by leave, amended paragraph 4 (a) of his proposed motion to read

as follows: (a) Committees A, B and C (i) Monday, 3 April (ii) Tuesday, 11 April Question put and passed.

V

Estimates Committee Groups

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

Industrial Relations

Estimates Committee B Transport and Communications Foreign Affairs and Trade

Estimates Committee C Finance Treasury Primary Industries and Energy 1

Employment, Education and Training 2

Estimates Committee D Employment, Education and Training 1 Community Services and Health 3 Immigration, Local Government and

Ethnic Affairs 3 Veterans' Affairs 3 Primary Industries and Energy 2<3 Arts, Sport, the Environment,

Tourism and Territories 4 Defence 4

Estimates Committee E Attorney-General 3 Aboriginal Affairs 3 Defence 3 Administrative Services

Immigration, Local Government and Ethnic Affairs 4 Veterans' Affairs 4 Social Security 4 - 5

Estimates Committee F Social Security 3-6 Arts, Sport, the Environment, Tourism and Territories 3 Attorney-General's 4

Aboriginal Affairs 4 Primary Industries and Energy 4 Community Services and Health 4

1 2 3 4

5 6

Considered by this Considered by this Considered by this Considered by this Considered by this

Considered by this

Committee up until 25 March 1988. Committee after 25 March 1988. Committee up until 31 August 1988. Committee after 31 August 1988. Committee up until 1 September 1988.

Committee after 1 September 1988.

vii

η

ESTIM ATES COM M ITTEE A

R E PO R T

Membership of Estimates Committee A

Senator Childs (Chairman) Senator Alston Senator Bishop Senator Burns 1 2 3 »6 Senator Chapman Senator Cook 1 Senator McMullan 2 Senator McKiernan 4 > 5

1 Discharged on 18 March 1988. 2 Appointed on 18 March 1988. 3 Discharged on 29 September 1988. 4 Appointed on 29 September 1988. 5 Discharged on 9 March 1989. 6 Appointed on 9 March 1989.

2

ESTIMATES COMMITTEE Ά

REPORT TO THE SENATE

MAY 1989

Estimates Committee Ά' presents its Report to the Senate.

1. On 9 March 1989 the Senate referred the following matters

to the Committee for examination and report:

. Particulars of Proposed Additional Expenditure for the

Service of the year ending on 30 June 1989 in relation to the Parliamentary Departments;

. Particulars of Proposed Additional Expenditure for the

Service of the year ending on 30 June 1989; and

. Particulars of Certain Proposed Additional Expenditure

in respect of the year ending on 30 June 1989;

in relation to the Department of Industry, Technology and Commerce, the Department of the Prime Minister and Cabinet

and the Department of Industrial Relations.

The Committee met on 3, 11, 20 April and 2 May 1989, to

examine these departments' estimates. At the Committee hearings the Parliamentary departments were represented by

the President of the Senate, Senator the Honourable Kerry W. Sibraa, and officers of the Parliamentary departments.

The other departments were represented by the Minister for

Industry, Technology and Commerce, Senator the Honourable

John Button, the Minister for Arts, Sport, the Environment,

Tourism and Territories, Senator the Honourable Graham F.

Richardson and officers of the departments.

3

The committee's Minutes of Proceedings and the Issues Contents of the Hansard transcript of evidence are included

in this report. The Hansard transcripts of evidence taken

by the Committee concerning Appropriation (Parliamentary

Departments) Bill (No. 2) 1988-89, Appropriation Bill

(No.3) 1988-89 and Appropriation Bill (No. 4) 1988-89 are

tabled in the Senate with this report.

The Committee, from its examination of the estimates, draws

to the attention of the Senate the following matters:

2. EXPLANATORY NOTES

In explanatory notes for additional estimates the Committee has encountered several instances where expenditure has

been apportioned over programs in Section Four, the reconciliation statement, without an indication there that

in Section Two, the portfolio overview, it has been indexed

as expenditure not allocated as arising from a particular

program. This omission has been apparent in explanatory notes provided by the Department of Industrial Relations

(Hansard, p. A138) and the Department of the Prime Minister

and Cabinet, although the latter were amended for the

hearings (Hansard, p. A109).

Department of Finance guidelines indicate that costs not

allocated by program should be indexed at the start of Section Two of the notes and included in Section Four.

Where this is done the Committee consider it essential to

indicate expenditure not allocated to programs, to avoid the impression that the programs have been omitted from

consideration in working through the explanation of program specific variations.

4-

3. PARLIAMENTARY DEPARTMENTS

3.1 Consultation with Parliament on Estimates

The Committee wishes to draw the Senate's attention to

correspondence, provided by the President of the Senate,

and incorporated in the Hansard of 3 April 1988. This correspondence indicates that the present Additional

Estimates were able to be determined by the Senate Standing

Committee on Appropriations and Staffing on the

understanding that no further reductions to the

Appropriations would be proposed by the Minister for

Finance (Hansard, pp. A3-6).

The correspondence also shows that the Department of finance have agreed to pursue the establishment of a continuing base level of outlays for the Parliamentary

Departments (Hansard, p. A4).

3.2 Program Budgeting

The Committee noted that, of the Parliamentary Departments seeking additional funding and examined, only the

Department of the Senate provided estimates in program

budgeting format. The Committee recognises the work being done to derive performance indicators by the Department of

the Parliamentary Library (Hansard, p. A30) and the

Department of the Senate (Hansard, p. A18).

The Committee expects that the indicators being developed

will aim to present an overview of the efficiency and

effectiveness of efforts to meet the objectives that have

been established.

5

3.3 Department of the Senate

The Committee is aware of the level of additional funding

required to cover the printing of Notice Papers and

Journals (Hansard, p. A 9 ) and notes that the Department of

the Senate is considering doing more in-house publishing

(Hansard, p. A10).

The Committee is aware that the office structures

implementation has inter alia led to an increase in the

flexibility of staff (Hansard, p. A12). It recognises that

this is one factor which has facilitated the redeployment

of staff to serve new inquiries in the Committee Office

(Hansard, p. A7 ) and notes that these measures will need to

be complemented by the acquisition of supporting equipment

(Hansard, p. A16).

3.4 Department of the Parliamentary Library

The Committee notes that the maintenance of two service

points was identified as an important cause of the need for

increased overtime payments to staff (Hansard, p . A20). The Committee recognises that firm patterns of library use have

not been established in the new building.

The Committee is aware of plans to review levels of

staffing and library opening times during the present session (Hansard, p. A21) and to conduct a user needs

survey in the next financial year (Hansard, p. A29).

3.5 Department of the Parliamentary Reporting Staff

The Committee noted that the Department is engaged in

consultation with the Department of Industrial Relations

over action on salary levels which were identified as the

main cause of recruitment difficulties (Hansard, pp. A36-7).

6-

3.6 Joint House Department

The Committee appreciates that officers of the Joint House

Department made themselves available to provide details of

several matters affecting the condition of the building

which have yet to be resolved by the Parliament House

Construction Authority

The Committee is aware of defects in the building's

air conditioning system, the inadeguate closure and sound

insulation of doors (Hansard, pp. A38-9) and the need for extra data communications cabling (Hansard, p. A22); it is

concerned by these problems and by the fact that

negotiations with the Parliament House Construction

Authority have yet to resolve the guestion of liability.

The Committe is also concerned that the sound reinforcement

system in the chambers is affected by acoustical problems in the building and notes that this matter is also being

pursued with the Parliament House Construction Authority

(Hansard, p. A27).

4. DEPARTMENT OF INDUSTRY, TECHNOLOGY AND COMMERCE

4.1 Provision of Bounty Assistance to Industry

The Committee is concerned that there was delay in the

submission of a final bounty application from Carrington

Shipways Ltd, and apparently some confusion over whether

such an application was submitted as required (Hansard,

p. A51). The Committee is aware that the administration of

bounties is currently being reviewed (Hansard, p. A69) and it anticipates that the review will identify any measures

that may be necessary to simplify the procedures involved

and ensure that applicants comply with them.

7

4.2 Offsets and the Partnership Development Program

The Committee is aware that at its previous hearing the

Department undertook to provide a list of contracts and

associated offsets obligations required, over the previous

twelve month period (Hansard, p. A5, October 1988). The

Committee notes that no such list has yet been supplied and

notes the Department's undertaking to provide this

information and details of fulfilment of the offsets

obligations (Hansard p. A69).

The Committee is concerned by the delay in providing this

information and by its apparent confusion with the content

of the planned annual report on the Offsets Scheme

(Hansard, p. A70).

4.3 Australian Institute of Marine Science

The Committee is aware of information provided on action taken to co-ordinate the study of rising sea levels. Whilst

it appreciates that effects upon land use are likely to be

a major focus of such studies, the Committee nevertheless

notes that since this matter was raised at its previous

hearings the involvement of the Australian Institute of

Marine Science has not been sought and has not apparently been the subject of initiatives by the Institute itself

(Hansard, p. A62).

5. DEPARTMENT OF THE PRIME MINISTER AND CABINET

5.1 Explanatory Notes

The Committee notes that the Department provided further information in the form of annotations to the explanatory

notes, indicating sums sought for national wage case

settlement and apportioned over appropriation bill

divisions.

8

5.2 Australian Bicentennial Authority

The Committee does not wish to comment on the complaint

against the ABA by Mr Leticq which is currently under investigation by the Commonwealth Ombudsman (Hansard,

p. A98).

5.3 Government Support Services

The Committee notes that an additional appropriation is

sought for fees due to the Australian Construction Authority, based upon a budget estimate for such payments

which was prepared by the Department of finance and did not

take account of advice from the Department of the Prime

Minister and Cabinet (Hansard, p . A121).

6. DEPARTMENT OF INDUSTRIAL RELATIONS

6.1 Affirmative Action Agency

The Committee is aware that additional funding is being

sought for extra staff to deal with information from

smaller companies during the third year of the Affirmative Action (Equal Employment Opportunity for Women) Act (1985)

(Hansard, p. A131). The Committee notes that the need for

extra staff at this stage was not foreshadowed during its

previous hearings (Hansard, p. A186, October 1988).

The Committee recognises that monitoring and evaluation

work by the Agency bears upon the performance of the Agency and upon measures in response to the legislation. The Committee expects that performance indicators for the

Agency will focus the distinction between its

administration of the legislation and longer term data on

the effectiveness of prescribed programs.

9

6.2 Trade Union Training Authority

The Committee notes that appropriate measures have been

taken in response to issues raised in the March 1988 report

of the Auditor-General (Hansard, p. A142).

6.3 COMCARE

The Committee notes that explanatory notes provided by the Department contain an arithmetical error in the order of

$300 thousand and it accepted an assurance that this would be clarified in additional information (Hansard, p . A146).

Bruce Childs (Chairman)

Kay 1989

10

ESTIMATES COMMITTEE A

RESERVATION BY SENATORS BISHOP, ALSTON AND CHAPMAN

11

ESTIMATES COMMITTEE A

RESERVATION BY SENATORS BISHOP, ALSTON AND CHAPMAN

During its hearings on the 3, 11, 20 April and 2 May, 1989, the Committee received evidence on a number of matters we view with concern.

DEPARTMENT OF INDUSTRY. TECHNOLOGY AND COMMERCE

OFFSETS AND THE PARTNERSHIP IN DEVELOPMENT PROGRAM

The hearing concluded with the knowledge that a draft annual report on the Civil Offsets Program existed but that it had not been provided to the Committee because, the Secretary of the Department, Dr D. T . Charles told the Joint

Parliamentary Committee of Public Accounts last month, "the document at this stage does not pass the Charles test of excellence".

In the October 1988 hearings the Committee was told that the Department was in the process of preparing an Annual Report for 1987-88 and that the Department would try to made it available to the Committee before the additional

appropriations hearings.

The Guidelines for the Preparation of Departmental Annual Reports tabled in the Senate on 18 November 1987 state that draft reports should be provided when the report itself is not available.

It is of the utmost concern that the Department did not provide the Committee with a copy of the draft report. Parliamentary Committees can not fulfil their proper functions if government agencies continue to withhold, or

excessively delay the production of, material relevant to the deliberations of the committees and the parliament.

At the hearing on the 3 April 1989 the Minister, Senator the Hon. John Button, undertook to provide the Committee "by the end of the month" (page A70) a list of offsets contracts entered into in the last twelve months, together with a

separate list of the offsets required and whether fulfilment had occurred. The Minister also said that a copy of the Annual Report would be provided by the end of the month.

The Committee has received no further information on this matter from the Minister or the Department even thought another parliamentary committee has been provided with a

copy of the draft annual report.

It is not acceptable for a government agency, let alone a major Department, to take over nine months to produce an

13

annual report on a major government program. The

sloppiness which has occurred in the production of the report is of great concern when considering the ability of the Department to effectively manage the controversial offsets program - a program involving billions of dollars.

DEPARTMENT OF PRIME MINISTER AND CABINET

AUSTRALIAN BICENTENNIAL AUTHORITY

(i) INTELLECTUAL PROPERTY

The Committee heard evidence concerning two cases where the ABA appears to have used other peoples developed ideas for the benefit of the ABA and to the detriment of the people whose ideas they used. We feel that sufficient evidence was given to raise concern that the ABA dealt, at the very

least, unfairly, if not improperly, with intellectual property belonging to a third party.

We disagree with the majority report decision not to comment on these matters because the matter is "currently under investigation by the Commonwealth Ombudsman". This decision was reached because the ABA informed the Committee that the

Commonwealth Ombudsman is currently investigating the matters surrounding one of the cases. However the

Commonwealth Ombudsman advises that on 17 February 1987 he thought the matter more appropriate for determination by a court of law, and advises by letter of today's date that he will not be investigating the matter any further.

The first case involved the publication of a book entitled 'Unsung Heroes and Heroines of Australia'. Evidence given to the Committee showed that in January 1986 Mr Robert Liticq wrote to the ABA asking for support and endorsement

for a book he intended to publish entitled 'Who's Who of Unsung Heroes'.

The Committee was provided with no evidence that prior to January 1986 the ABA had considered the publication of a book on Australia's unsung heroes. The Committee was however presented with evidence that showed that while the ABA quickly developed a proposal after this date, which was

remarkably similar to Mr Liticq's, they continued to request more and more information from Mr Liticq.

In publicity material produced by the ABA it was claimed that the idea for the program was the idea of the ABA

Chairman, Mr Jim Kirk. Yet the ABA has not provided the Committee with any evidence that anyone at the ABA, let alone the Chairman, had thought of the concept prior to Mr Liticq's contact with the authority.

14

The second case involved the computer communications strategy for schools which was called Network 88. This program attempted to establish international computer links between high school students. The program was administered by the ABA and in evidence presented to the committee was based on a project already operated by a number of

Australian teachers and schools called Computer Pals Across the World. Yet the ABA refused to give any funding or support this group.

The success of the ABA's program appears to be very

disappointing whereas the Computer Pals Across the World now involves schools in South America, New Zealand, Japan, Germany, France, the Soviet Union, the United Kingdom and South East Asia. This occurred with no support from the ABA.

We believe that these matters warrant further investigation particularly as the ABA has made no provision in their accounts for actions that may lie in damages.

(ii) REDUNDANCY AGREEMENTS

The Committee heard evidence that the ABA has made provision for redundancy agreements in such a way that employees are actively encouraged not to seek other employment. In our opinion the cost to the Commonwealth of this arrangement is unwarranted and should be reviewed.

SENATOR BISHOP SENATOR ALSTON SENATOR CHAPMAN

3 May 1989

15

ESTIM ATES COMM ITTEE A

M INUTES OF PR O C EED IN G S

M ay 1989

THE SENATE

ESTIMATES COMMITTEE Ά'

MINUTES OF PROCEEDINGS

PRIVATE MEETING

NO. 17

3 April 1989

1. MEETING: The Committee met in private session at

2.10 p.m. in Senate Committee Room No. 10.

2. ATTENDANCE: Senator B.K. Childs (Chairman) Senator B.K. Bishop Senator B.R. Burns

Apologies: Senator R.K.R. Alston Senator H.G.P. Chapman Senator R.F. McMullan

3. NOTIFICATION OF REPLACEMENT MEMBER OF THE COMMITTEE:

The Chairman informed the Committee that, pursuant to the motion tabled in the Senate on Thursday, 9 March 1989 Senator McKiernan had been discharged from the Committee and Senator Burns appointed as his replacement.

4. MANNER OF EXAMINING THE ESTIMATES:

The Committee agreed to examine Departments in the following order: the Parliamentary Departments, the Office of the Official Secretary to the Governor-General, the Department of Industry, Technology and Commerce, the Department of the

Prime Minister and Cabinet and the Department of Industrial Relations. The Committee agreed to use Thursday, 20 April 1988 for a third day of hearings if necessary.

5. PREPARATION OF MATERIAL BY THE SECRETARIAT:

The Secretary notified the Committee that the Secretariat would be available to undertake research work for the Committee prior to the hearings, and reported that responses outstanding from previous hearings were being sought from

Departments.

19

6. ADJOURNMENT:

The Committee adjourned at 2.15 p.m.

CONFIRMED:

Bruce Childs (Chairman)

20

THE SENATE

ESTIMATES COMMITTEE Ά'

MINUTES OF PROCEEDINGS

PUBLIC HEARING

MEETING NO. 18

3 April 1989

1. MEETING:

The Committee met in public session at 2.11 p.m. in Senate Committee Room No. 10. The Chairman, Senator Childs, took the chair.

2. PARTICULARS OF PROPOSED EXPENDITURE 1988-89; PARLIAMENTARY DEPARTMENTS.

In Attendance:

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

Department of the Senate

Mr H. Evans Clerk of the Senate

Mr C. Elliott Clerk-Assistant (Management) Mr P. O'Keeffe Clerk-Assistant (Procedure) Mr J. Vander Wyk Clerk-Assistant (Table) Ms M. Cornwell Clerk-Assistant (Committees)

Mr R. Alison Usher of the Black Rod

Mr G. Nankervis Principal Parliamentary Officer (Management) Mr P. Keele Senior Clerk of Committees

Department of the Parliamentary Library

Mr H. MacLean Parliamentary Librarian

Mr J. Brudenall Deputy Parliamentary Librarian Mr D. Argali Head, Legislative Research Service

Mr J. Domitrak Assistant Director, Personnel Services Mr M. Watson Assistant Director, Financial

Services

Mr B. Sweeney Assistant Director, General Services

21

Parliamentary Information Systems Office

Mr M. Goodall Manager, Information Systems

Mr G. Harber Manager, Computers and

Communications

Mr M. Mullane Director, Planning and

Administration

Mr N. MacLean Director, Technical Services

Mr B. Gonzales Director, Sound and Vision

Mr E. Dobson Director, Telecommunications

Mr J. Gilliland Director, Training and Support Mr H. Simon Director, Applications Development

and Maintenance

Department of the Parliamentary Reporting Staff

Mr J.M. Campbell Mr B.A. Harris

Mr M.J. Farrelley

Principal Parliamentary Reporter Assistant Principal Parliamentary Reporter Administrative Officer

Joint House Department

Mr M. Bolton Mr F.W. Bradley Mr D .A . Hood

Mr R.M. Wedgwood

Department of Finance

Secretary Assistant Secretary Assistant Secretary (Property Management) Acting Assistant Secretary

(Corporate Services)

Mr A. Hoitink

The Chairman called for consideration of the following divisions:

Division 101 - Senate Division 102 - Advance to the President of the Senate Division 105 - Parliamentary Reporting Staff Division 106 - Parliamentary Library Division 107 - Joint House Department

The Committee concluded its consideration of the Particulars of Proposed Additional Expenditure 1988-89 subject to an undertaking by the President and his officers to provide additional information to the Committee.

22

3. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE AND PARTICULARS OF CERTAIN PROPOSED ADDITIONAL EXPENDITURE 1988-89; OFFICE OF THE OFFICIAL SECRETARY TO THE

GOVERNOR-GENERAL

In Attendance:

Senator the Hon. G.F. Richardson, Minister for the Arts, Sport, the Environment, Tourism and Territories, accompanied by the following officers:

Office of the Governor-General

Mr D. Smith Commodore P . Landon Mr C. Bell Ms E. Sanderson

Official Secretary Comptroller to the Governor-General Senior Executive Officer Administrative and Finance Officer

Department of Finance

Mr A. Hoitink

The Chairman called for consideration of the following division:

Division 516: Governor-General's Office

The Committee concluded its consideration of the proposed additional expenditure 1988-89 for the Office of the Governor-General, subject to an undertaking by officers to provide additional information to the Committee.

4. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE AND PARTICULARS OF CERTAIN PROPOSED ADDITIONAL EXPENDITURE 1988-89; DEPARTMENT OF INDUSTRY, TECHNOLOGY AND COMMERCE

In Attendance:

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

Department of Industry, Technology and Commerce

Mr N. Stevens Dr J. Bell

Mr G. Hallinan

Dr M. Fitzpatrick

Deputy Secretary First Assistant Secretary Policy and Corporate Services Division First Assistant Secretary

Innovation and International Division First Assistant Secretary Light Industries Division

23

Mr A. Bain First Assistant Secretary

Heavy Industries Division

Professor B. Johns Director Bureau of Industry Economics Dr I. McCay Senior Assistant Commissioner

Patents, Trade Marks and Designs Offices

Dr P. Ellyard Director Commission for the Future

Mr R. PaIfreyman Acting Principal Adviser Corporate Services and Information Mr M. Farrow Principal Adviser Innovation

Mr P. Constable Assistant Secretary Information Industries Dr J. Hagan Assistant Secretary Food and

Forest Products

Mr J. McLucas Assistant Secretary Building

Industry Efficiency

Mr F. Kovachevich Acting Assistant Secretary Corporate Services Mr G. Carlos Acting Director Resource Planning

and Services

Mr P. Collas Director Planning Patents, Trade

Marks and Designs Offices

Mr D. Stafford Director Export Credit Policy

Australian Customs Service

Mr D. O'Connor Deputy Comptroller-General Mr J. Hawkesworth National Manager Services Coordination and Mr V. Stretton National Manager Industry Assistance Mr G. Steele National Manager Inland Revenue

Mr J. Drury National Manager Coastwatch

Ms N. Fredrickson National Manager Systems Mr B. Docherty Manager Resource Management Ms M. Grant Acting Director Budget and

Accounting

Australian Trade Commission

Mr J. Bennett General

Group

Manager Corporate Services

Mr R. Webb General

Group

Manager Export Development

Dr D. Fisher General Manager Finance, Insurance

and Projects Group

Mr G. McLelland Manager Export Grants Division Mr R. Anderson Manager National Operations

Commonwealth Scientific and Industrial Research Organisation

Mr P. Langhorne Director Corporate Services Department Dr T. Heyde Principal Secretary, Office of the

Chief Executive

24

Mr I. Farrer

Mr B. Mithen

Mr I . Lowth Mr H. Kwong

General Manager Corporate Resources Branch Assistant General Manager Finance and Services, Corporate Resources

Branch Acting Manager Resource Budgeting Manager Capital Resources

Australian Nuclear Science and Technology Organisation

Dr D. Cook Mr D. Wilson

Executive Director General Manager Corporate

Australian Institute of Marine Science

Dr J . Baker Director

Textiles, Clothing and Footwear Development Authority

Mr D . McCarthy Executive Director

National Standards Commission

Mr J . Birch Executive Director

Automotive Industry Authority

Mr M. Wynne-Hughes Mr P . Woodham Executive Director Executive Officer

Anti-Dumping Authority

Mr J. McGuire Executive Director

Australian Manufacturing Council Secretariat

Mr B. Spencer Assistant Director

Department of Finance

Mr R. Henderson

The Chairman called for consideration of the following programss

Program Is Industry Policy and Development Program 2 s Customs Program 3 s AUSTRADE Program 4s Nuclear Science and Technology Program 5s CSIRO

The Committee concluded its consideration of the proposed additional expenditure, subject to an undertaking by the Minister and officers to provide additional information to the Committee.

25

5. ADJOURNMENT:

The Committee adjourned at 12.40 a.m.

6. ATTENDANCE: Senator B.K. Childs (Chairman) Senator B.K. Bishop Senator B.R. Burns Senator H.G.P. Chapman Senator R.F. McMullan

Apologies: Senator R.K.R. Alston

Senators B.R. Archer, M . Baume, the Hon. P.E. Baume, and the Hon. F.M. Chaney also attended.

CONFIRMED:

Bruce Childs (Chairman)

26

THE SENATE

PUBLIC HEARING

MEETING NO. 19

11 April 1989

ESTIMATES COMMITTEE Ά'

MINUTES OF PROCEEDINGS

1. MEETING:

The Committee met in public session at 8.07 p.m. in Senate Committee Room No. 10. The Chairman, Senator Childs, took the chair.

2. PARTICULARS OF PROPOSED EXPENDITURE AND PARTICULARS OF CERTAIN PROPOSED ADDITIONAL EXPENDITURE 1988-89; DEPARTMENT OF THE PRIME MINISTER AND CABINET.

In Attendance:

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

Department of the Prime Minister and Cabinet

Dr P. Shergold Acting Deputy Secretary

Mr G. Nichols First Assistant Secretary,

Corporate Services Division

Mr T. O'Sullivan First Assistant Secretary, Social Policy Division Ms A. Tinney Acting First Assistant Secretary

Parliamentary and Government Division

Ms A. Leahy Acting Assistant Secretary,

Corporate Support Branch

Mr G. Linehan Acting Director, Finance and

Services Section

Miss D. Wilson Finance Officer

Mrs A . Watts Acting Assistant Finance Officer

27

Public Service Commission

Dr J . Baker

Dr G. Radford

Mr P. Jones

Mr B. Minns

Ms R. Oxer

Ms M. Edwards

First Assistant Commissioner

Principal Adviser, Equal Employment Opportunities

Assistant Secretary, Staff Development Branch

Assistant Secretary, Staffing Branch

Assistant Secretary, Selection and Placement Branch

Acting Assistant Secretary, Recruitment Branch

Merit Protection and Review Agency

Mr P. Gifford Director

Australian Science and Technology Council

Ms J . Stewart Assistant Secretary, Briefing and Administration

Mr G. Tomlinson Executive Officer, Administration

Office of National Assessments

Dr D. Robertson Deputy Director General Mr D. Triffett Acting Chief Executive Officer

Australian Bicentennial Authority

Chairman General Manager, Finance and Management Services Budget Manager

Department of Finance

Mr J. Kirk Mr B. Fairbanks

Mr R. Fenton

Mr K. Henry Chief Finance Officer

Mr P . McCarthy Senior Finance Officer

The Chairman called for consideration of the following programs:

Program 5: Program 1: Program 2: Program 3: Program 6s

Australian Bicentenary Policy Advising Government Support Services Public Administration and Accountability Corporate Services

28

The Committee concluded its consideration of the proposed additional expenditure, subject to an undertaking by the Minister and officers to provide additional information to the Committee.

3. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE AND PARTICULARS OF CERTAIN PROPOSED ADDITIONAL EXPENDITURE 1988-89; DEPARTMENT OF INDUSTRIAL RELATIONS.

In Attendance:

Department of Industrial Relations

Mr R. Marshman Deputy Secretary

Ms R. Campbell Acting First Assistant Secretary

Industrial Relations Develoment Division

Mr D. McDonald Assistant Secretary, Development Services Branch Mr T. Munyard Assistant Secretary, Corporate

Services

Mr R. Pickette Principal Executive Officer,

Industry Development Branch No. 1

Mr J. Walker Director, Resources Management

Mr G. Brine Senior Finance Officer,

Resources Management

Office of the Industrial Registrar

Mr J. Leydon Manager, Administration

Mr P. Parry Assistant Manager, Finance

Affirmative Action Agency

Ms V. Pratt Director

Ms J . Anderson Administrative Officer

Australian Trade Union Training Authority

Mr T. Prabhakaran Administrative Officer, Operations Mr P. Matthews Director, Studies

National Occupational Health and Safety Commission

Ms M. Stanton Acting Deputy Director

Mr I. Cameron Assistant Director, Resources Branch

Commission for the Safety, Rehabilitation and Compensation of Commonwealth Employees

Ms S. Halley Mr R . Knapp

Chief Executive Officer Assistant Commissioner, Premiums and Budget Branch

29

Ms S. Hamilton First Assistant Secretary, Program Division Mr P. Pharoah Director, Finance and Evaluation

Department of Finance

Mr J. Buckley Mr P. Willis Mr P. McCarthy

Chief Finance Officer Senior Finance Officer Senior Finance Officer

The Chairman called for consideration of the following program:

Program 1: National Industrial Relations, Wages and Incomes

4. ADJOURNMENT:

The Committee adjourned at 11.17 p.m. without completing its examination of the Department of Industrial Relations.

5. ATTENDANCE: Senator B.K. Childs (Chairman) Senator R.K.R. Alston Senator B.K. Bishop Senator B.R. Burns Senator H.G.P. Chapman Senator R.F. McMullan

Senators R. Hill and the Hon. A.J. Messner also attended.

CONFIRMED:

Bruce Childs (Chairman)

30

THE SENATE

PUBLIC HEARING

MEETING NO. 20

20 April 1989

ESTIMATES COMMITTEE Ά '

MINUTES OF PROCEEDINGS

1. MEETING:

The Committee met in public session at 10.13 a.m. in Senate Committee Room No. 10.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE AND PARTICULARS OF CERTAIN PROPOSED ADDITIONAL EXPENDITURE 1988-89; DEPARTMENT OF INDUSTRIAL RELATIONS.

In Attendance:

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

Department of Industrial Relations

Mr R. Marshman Deputy Secretary

Mr R. Stewart-Crompton First Assistant Secretary, Legislation and Review Division Mr T. Munyard Assistant Secretary,

Corporate Services

Mr J. Walker Director, Resources Management

Office of the Industrial Registrar

Mr J . Leyden Manager Administration

Trade Union Training Authority

Mr P. Matthews Director, Studies

Mr T. Prabhakaran Administrative Officer, Operations

Comcare

Ms S. Halley Chief Executive officer

Mr R. Knapp Assistant Commissioner,

Premiums and Budget Branch

31

Μ

Department of Finance

Mr P. Willis Ms K. Barfoot

Senior Finance Officer Senior Finance Officer

The Chairman called for resumed consideration of the following program:

Program 1: National Industrial Relations, Wages and Incomes

The Committee concluded its consideration of the proposed additional expenditure, subject to an undertaking by the Minister and officers to provide additional information to the Committee.

3. ADJOURNMENT:

The Committee adjourned at 11.14 a.m.

4. ATTENDANCES Senator B.K. Childs (Chairman) Senator B.R. Burns Senator R.F. McMullan

Apologies: Senator R.K.R. Alston Senator B.K. Bishop Senator H.G.P. Chapman

Senator M. Baume also attended.

CONFIRMED:

Bruce Childs (Chairman)

32

J

THE SENATE

ESTIMATES COMMITTEE Ά '

MINUTES OF PROCEEDINGS

PRIVATE MEETING

NO. 21

2 May 1989

1. MEETING: The Committee met in private session at

12.49 p.m. in Senate Committee Room No. 18.

2. ATTENDANCE: Senator B.K. Childs (Chairman) Senator B.K. Bishop Senator B.R. Burns Senator R.F. McMullan

Apologies: Senator R.K.R. Alston Senator H.G.P. Chapman

3. MINUTES OF PREVIOUS MEETINGS:

The Committee endorsed the Minutes of the previous meetings Nos. 1-4.

4. OUTSTANDING RESPONSES:

The Secretary advised the Committee of questions taken on notice at its hearings for which answers had not yet been supplied.

5. CONSIDERATION OF DRAFT REPORT:

The Committee considered the Chairman's draft report to the Senate.

The Chairman's draft report was adopted as the Committee's report by vote. Senators Childs, Burns and McMullan voted for adoption of the amended report. Senator Bishop dissented.

33

6. RESERVATION TO THE REPORT:

In accordance with Standing Order 36AB(17), Senator Bishop indicated that a reservation would be added to the report.

The Committee was informed by the Secretary that the deadline for preparation in final format for any reservation was 2.00 p.m. Wednesday, 3 May 1989; The Committee's report could then be tabled on 4 May 1988, in accordance with the

resolution of the Senate of 9 March 1989, and be circulated at the time of tabling.

7. ADJOURNMENT:

The Committee adjourned at 12.58 p.m.

CERTIFIED CORRECT:

Bruce Childs (Chairman)

34

ESTIM ATES COM M ITTEE A

H A N SA R D IN D E X TO ISSUES R A ISE D AT

THE COM M ITTEE’S PUBLIC H E A R IN G S

May 1989

SENATE

ESTIMATES COMMITTEE A

TABLE OF CONTENTS FOR HANSARD OF HEARINGS

Monday, 3 April 1989

Page/s

Chairman's Opening Statement 1

PARLIAMENTARY DEPARTMENTS

Opening statement by the President of the Senate 2

Letter from the President and Speaker to the Minister for Finance dated 15 February 1989 3-4

Letter from the Minister for Finance to the President dated 2 March 1989 4

Letter from Clerk-Assistant (Management) to Mr Kimball, Department of Finance, dated 8 March 1989 4-5

Letter from the President to the Minister for Finance dated 9 March 1989 5

DEPARTMENT OF THE SENATE

Funding for committees 6

System for determining appropriations 7

Staffing in Committee Office 7

Staffing of the Ministerial Wing 7-8

Security staff in Ministerial Wing 8

Delivery system in the new Parliament House 8

Staffing in Registry Office 8-9

Car transport costs 9

P

37

9 Sub-program 1.2 - Table Office

Government printing service costs 9-10

Senate in house printing 10

Offsetting activities by the Table Office 10

Printing through the private sector in relation to the AGPS 11

Cost of the schools' kit 11

AGPS's 'establishment cost' fee 12

Making staff multi-skilled 12

Second tier agreement and staffing 13

Office requisites and equipment 13

Hiring of office equipment (photocopiers) 17

Security equipment 14

Subprogram 1.5 - Management Office 14

Hospitality costs for opening new Parliament House 14

Hospitality costs for school children 14-15

Educational services 15

Cost of photographs 15

Budget allocation for compensation 15

Comcare 15-16

Senate's annual report 16

Expenditure involved in retraining 16

Consultative arrangements between the Parliament and the Government regarding Senate appropriations 17,18

Reduction in appropriations for Senate 17-18

Expenditure on photocopiers and shredders 18

Goal objectives and performance indicators 18

38

Act of grace payments 19

One off payment in 1987-88 to other office holders of the Senate 18

DEPARTMENT OF THE PARLIAMENTARY LIBRARY

Division 10.6 19

Statement by the President 19

Inoperative staff 19

Staff on long service leave 19-20

Overtime payments 20

Staffing for overtime arrangements 20

Setting aside money for long service leave 20-21

Two library outlets 21

Payment for Executing Wing telephone calls 21

Microphone in telephone 21-22

Taping of telephone calls 22

Data communications network 23

Reception of new TV stations in Parliament House 23-25

The 'fourth computer' 25

Sound and vision cell 25-26

Administrative expenses 26

Televising of Parliament 26

Quality of sound in the two Parliamentary chambers 26-27

Radios used in Parliament 27

Security of computer system 27-28

Second terminals in Parliament House offices 28

Modem link between electorate offices and Parliament House offices 28

39

Executive Wing telecommunications security system 28-29

Library use 29

Availability of newspapers 29

Parliamentary program for libraries in the South West Pacific (Fiji, Tonga) 29

Library's corporate strategy plan 30

Library services to the press gallery 30

Use of the library 30

Performance indicators in respect to goals 30-31

Staff turnover in the library 31, 32

Number of staff 31-32

PISO overtime 32

Average overtime payment in library 32

Costs associated with PABX in old Parliament House 32

Increased use of telephones in the new Parliament House 32

Replacement of House monitoring systems 32

The library on two floors 33

DEPARTMENT OF THE PARLIAMENTARY REPORTING STAFF

Division 105 33

Statements by the President 33

Overtime 34

Use of private sector printers 34, 35, 37

AGPS 34, 35, 37

Recruitment of staff 35-36

Wages of Hansard reporters 36-37

40

JOINT HOUSE DEPARTMENT

Statement by Chairman 38

Airconditioning problems 38, 38-39, 39

Doors 38

Ceiling tiles 38, 39

Black marble 39, 39-40

Removal of equipment for subsidiary kitchens 40

Cleaning of windows 40

Warming Ovens 40-41

Cost of running the building 41

Use of PHCA 41

Multi-skilling in catering service 41-44

Problem solving in engineering services branch and catering operation 44

Problem with Venetian blinds 44-45

DEPARTMENT OF THE PRIME MINISTER AND CABINET

Governor-General' s Office and Establishment

Division 516 45

Attendance at Hirohito' s funeral 45-46

Work on swimming pool 46

Fees charged by the Australian Construction Service 46

Repairs at Government House/Admiralty House 46-47

Renovations at Government House 47

Cost of carpeting 47

Removal of trees 47

Staffing levels at Government House 47

41

Travelling by Qantas 48

Use of the Australian Construction Service 48

DEPARTMENT OF INDUSTRY, TECHNOLOGY AND COMMERCE

Chairman's Opening Statement 49

Error in level of savings 49

Second tier wage agreement 49-50

Program 1 - Industry Policy and Development

Special adviser on the development of the multifunction Polis project 50

Sarich Orbital Engine Company, consultancy arrangement 50-51

Grant offer to the Sarich Company 51

Sarich Company investment in Cairns 51

Act of grace payment to Carrington Shipways Pty Ltd 51-51, 52-53

Wilson Electric Transformers Pty Ltd application under the heavy engineering assistance scheme 52,53

Subprogram 6 - Policy 53

Membership of the Industry Research and Development Board 53

Commercial interest of members/conflict of interests 53-55

Science adviser with DITAC 55-56

Chief science adviser 56-57, 57, 59

Role of ASTEC 57

42

Departmental science and research advice 57-58

Level of scientific research support 58

Hungerford investigation 58-59

Bureau of Industry and Economics evaluating tax concession grant scheme 59

Science and technology statement 59

MIT survey 59

Automative Authority report 59-60

' Meeting the Challenge s What Award Restructuring Really Means' 60

ACTU recommendations 60-61

Wage negotiations 61

Second hand cars from Japan 61-62

Premier Dowding' s views 62

AIDC 62

Subprogram 1. 9 - Australian Institute of Marine Science 62

Committee co-ordinating research into rising sea levels 62-63

Development of a breeding prawn 63

Search for anti-viral and anti-cancer agents 63

Oceanographic measurements in reef and coastal areas 63

Major tourist developments in Queensland 63

Replacement of equipment 63

Sunscreen operation 63-64

Use of oceanographic measurement equipment 64

Result of greenhouse effect 64

Research outside Queensland 64

McKinnon Committee 64-65

43

65Textiles, Clothing and Footwear Development Authority

Wesley Vale 65-66

Potential for paper and pulp exports 66

Investment in pulp and paper activities 66-67

Guidelines for investment 67

Footwear protection in Australia 67

IAC recommendation 67-68

Werner International Report 68

Wool and cotton production 68

Loan from AIDC 68

AIDC commercial investments ( TCF industries) 68-69

Offsets and record keeping by DITAC 69-70, 71-72

Department' s annual report 70

Offset program information 70-71, 72

Spot audit checks 72-73

The use of large auditing firms 73

Administration of offset program 73-74

Program 2 - Australian Customs Service 74

Opening statement by the Minister 74

Blenkinsop affair 74-75

Barrier structure change at Geelong 75

Downgrading of Custom Officers at Newcastle 75, 76

Seizures by GET teams 76

Morale in the service 76

Movement of staff 76-77

44

Inspection of containers 77

Subprogram 2 - Import Export Control 77

Reimbursement of duties and taxes 77

Subprogram 10 - Systems 77

Community Network Management Company 77, 79, 80

EXIT system 77-78, 79

Australian Federal Police 78

Co-operation with AFP 78-79

Inter-State Commission 79

OTC 79-80

CSIRONET 80

KEY-LINK and SITA 80

Success rate of combating the importation of drugs 80

People who import drugs 81

Mafia and Triads 81

Role of Customs 81

Drug seizures 81

Port security 82

Need for greater resources 82

Tarmac patrols 82

National council for drug strategy 82

The performance of Mr Jones 82

Relations with state police 82-83

Surveillance of Mr Blenkinsop 83

45

Division 384 - Australian Trade Commission

Export market development board 83

Review of export development assistance by Professor Hughes 83

Misunderstanding between Ministry of Finance and Austrade - EFIC 83-84

Austrade' s representation in Fiji 84, 85

Austrade' s representation in Egypt 84-85

DFAT' s relations with Austrade 85

Taiwanese investment in Fiji 85-86

Australian fashion designers and Austrade 86

Austrade links with European negotiators in respect to 1992 86

Assistance to companies setting up in Europe 86

Trasfer of Austrade to DFAT 86-87

An Austrade office in Taiwan 87

Project 5 - Commonwealth Scientific and Industrial Research Organisation

Overrun of budget 87

Oceanography work by CSIRO 87

Percentage of CSIRO funds coming from Government 87-88

Overestimation of revenue 88

Sale of CSIRONET 88-89, 90-91

Property in Rockeby Street, Melbourne 89

Properties for sale 89

Purchase of new eguipment 89-90

Carrying of insurance 90

46

Accident at Adelaide Soils Laboratory

The issue of tax in respect to the sale of CSIRONET

CSIRO's failure to tender for contract to assess the effectiveness of the NSW State Government's ocean outfall

Significant contributions by CSIRO to Australian industries

90

90-91

91-92, 93

92-93

47

SENATE

ESTIMATES COMMITTEE A

TABLE OF CONTENTS FOR HANSARD OF HEARINGS

Tuesday, 11 April 1989

Page/s

Chairman's Opening Statement

DEPARTMENT OF THE PRIME MINISTER AND CABINET

Proqram 5 - Australian Bicentenary

96

Sub-program 5.1 - Australian Bicentennial Authority 96

'Unsung Heroes'/'Heritage 200' program 96-104

Publication of book 96-97

Origins of program 97

Dispute with Mr Leticq regarding publication '200 Greatest Stories Never Told' and 'Unsung Heroes' 97--104, 105

Payment to John Singleton's agency 104,105

Choice of John Singleton's agency 105

Legal advice from Attorney-General's Department regarding Leticq dispute 105-106

Legal 'scraps' of ABA 106

Dispute over buy back of caravans 106

Legal costs 106-107

Termination of previous Chief Executive 107

Intellectual property usurped 107

48

107,108 School mates program/schools across Australia

Mr Malcolm Beazley 107

Program financing 107-108

Children's programs 108

Australaskan program 108

Retirements benefits 108-109

Provision by the ABA for damages 109

Macedonian exhibition 109-111

Money spent on community arts events 111

Grants made without discussion with the ABA Board 111

Gaye Hart redundancy package 111

Multicultural foundation 111,117-118

Function held on November 28, 1988 112-113

Ethnic Communities Council of Australia 113

Number of people employed by the ABA 113

Redundancy packages 113-114

Sale of eguipment from travelling exhibition 114-115

Cost of travelling exhibition 115

Attendance at travelling exhibition 115

Sale of Honeywell computer 115

Licensing 115-117

Inquiry into the operation of the ABA 117

Program 1 - Policy Advising

Grants to organisations and individuals 118

Grant to Federation of Ethnic Communities Councils 118

ASTEC 118-119

49

Sub-program 1.3 - Office of National Assessments 119

Security of communications and computing facilities 119

Soviet embassy antennae systems 120

Need to remove US source material from the intelligence it passes to New Zealand 120

Program 2 - Government Support Services

Sub-program 2.1 - Governor-General 120

Retiring allowance for former Governor-General 120

Sub-program 2.3 - Support Services 120

Charges by the Australian Construction Service 120-121, 122-123

Work at Kirribilli House and the Lodge 121-122

Interior decorator Mr Spode 121-122

Official Establishment Trust 123

Program 3 - Public Administration and Accountability

Sub-program 3.1 - Public Service Commissioner 123

Three per cent superannuation benefit 123

SES officers voluntary redundancy package 123

Public Service Commission consultancy service 124-125

Lump sum compensation payment 125

50

Sub-program 3.3 - Merit Protection and Review Agency 125

Running costs of $78,000 inqury requested by the Hon. Peter Morris 124-126

Compensation and legal expenses 126

Lump sum payments 126-127

Program 6 - Corporate Services

Sub-program 6.3 - Program Support 127

Multiskilling 127

DEPARTMENT OF INDUSTRIAL RELATIONS

Chairman's Opening Statement 128

Program 1 - National Industrial Relations. Wages and Incomes

Claim concerning the Australian Wheat Board's Ceres House project 128-129

Other claims received by the Department 129-130

Sub-program 1.4 - Working Environment

Workplace reform program 130

51

Sub-program 1.5 - Affirmative Action Agency 131

Additional administrative cost 131

Staffing 131

Returns from companies and educational institutions, monitoring and evaluation 131-132, 133-136

Audit of returns 132-133, 134

Compliance 134-135

Strategy document 135

Equal Employment Opportunity Unit of the Public Service 136

Liaising with other government departments 136

52

SENATE

ESTIMATES COMMITTEE A

TABLE OF CONTENTS FOR HANSARD OF HEARINGS

Thursday, 20 April 1989

DEPARTMENT OF INDUSTRIAL RELATIONS (continued)

Program 1 - National Industrial Relations Wages and Incomes

Page/s

Sub-program 1.3 - Special Industry Legislation

Complaint regarding the setting out of the explanatory notes 137-138

Sub-program 1.6 - Conciliation and Arbitration Commission 139

Retirement of Mr Justice Staples 139

- lump sum 139

- pension 139

Administrative costs associated with new appointments to the Industrial Relations Commission 139

Cost of abolishing the Conciliation and Arbitration Commission and establishing the Industrial Relations Commission and the Australian Industrial Registry 139

Reclassification of existing staff in the Australian Industrial Registry 139-140

Additional staff 140

Cost of support for Mr Staples 140-141

Trade unions annual financial accounts 141

53

Travel costs for new members of the Commission 142

Sub-program 1.8 - Trade Union Training Authority 142

Various State centres in the sub-program 142

Auditor-General's report 142

Investments over $100,000 142

Clyde Cameron College building 142

Inadequacies in data processing 142

Increased demand for training at TUTA 142

Reductions in funding 143

Presentation of annual reports 143

Savings in TUTA move to Melbourne 143

State of the accounts 143

Revamping and potential transfer to the ACTU 144

TUTA move to Melbourne 144

Role of TUTA in award restructuring 144

Compensation claims under COMCARE 144

Expenditure on advertising/public relations/ opinion surveys 144

Travel overseas 144

Current cost for TUTA training 145

Award restructuring 145

Sub-program 9 - COMCARE 145

Transfer to ACT of $1.6 million 145

Need to clarify figures 145-146

Early retirement and COMCARE request 146

National wage case 146

54

Payment to Health Insurance Commission 146

Move to ANZ Centre 146

Purchase of software system for an accounting package 147

Internal audit 147

Selection of auditing firm 147

New auditing arrangements 147-148

Common law negligence proceedings 148

Public servants entitled to partial compensation 148

55

\

ESTIMATES COMMITTEE B

R E P O R T

Membership of Estimates Committee B

Senator Gietzelt (Chairman) 8 Senator Brownhill Senator Devereux 1 2 Senator MacGibbon 3 Senator Maguire 1 Senator Panizza Senator Schacht 3 - 7 8 9 Senator Hamer 5 Senator Morris 4 < 6 Senator Alston 5 Senator Coates 7 (Chairman) 9

1 Discharged on 7 October 1987. 2 Appointed on 7 October 1987. 3 Discharged on 29 September 1988. 4 Appointed on 29 September 1988. 5 Senator Hamer appointed on 29 September 1988, with

Senator Alston to replace Senator Hamer for the

consideration of the estimates of the Department of Transport and Communications. 6 Discharged on 9 March 1989. 7 Appointed on 9 March 1989. 8 Resigned 27 February 1989. 9 Elected Chairman 3 April 1989.

58

ESTIMATES COMMITTEE B

REPORT TO THE SENATE

Estimates Committee B presents its Report to the Senate.

1. On 9 March 1989 the Senate referred to the Committee: . the Particulars of Proposed Additional Expenditure for the Service of the year ending on 30 June 1989, and . the Particulars of Certain Proposed Additional

Expenditure in respect of the year ending on 30 June 1989

relating to the Department of Foreign Affairs and Trade, and the Department of Transport and Communications.

2. The Committee has considered this expenditure, making use of the Explanatory Notes provided by the respective Departments. The Committee received explanations of the expenditure from the Minister for Foreign Affairs and Trade, Senator the Hon G. J .

Evans, QC, and from officers of the Departments concerned.

3. Copies of the Minutes of Proceedings, the Hansard reports of the evidence taken by the Committee, and a table of concents to the Hansard reports are tabled for the information of the Senate in connection with its consideration of Appropriation Bill (No.

3) 19 88-89 and Appropriation Bill (No. 4) 1988-89. Written answers to questions taken on notice during the Committee's hearings will be tabled separately in the Senate.

4. The Committee expresses its appreciation for the assistance given b> the Minister and the officers of the Departmen s who appeared before it.

John Coates (Chairman) 4 May 1989

59

ESTIMATES COMMITTEE B

M INUTES OF PR O C EED IN G S

May 1989

THE SENATE

ESTIMATES COMMITTEE B

MINUTES OF PROCEEDINGS NO. 10

MONDAY, 3 APRIL 1989

1. MEETING: The Committee met in private session at 1.58 pm in Senate Committee Room 14. The Committee Secretary took the chair.

2. ELECTION OF CHAIRMAN: Senator Coates was nominated by Senator Devereux for the position of chairman and was elected unopposed.

3. PUBLIC MEETING: Following a short adjournment, the Committee met in public session a 2.10 pm. The Chairman, Senator Coates, took the chair.

4 . PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1988-89 - DEPARTMENT OF FOREIGN AFFAIRS AND TRADE In attendance: Senator the Honourable G.J. Evans QC, Minister for Foreign Affairs and Trade, accompanied by the following officers -

Department of Foreign Affairs and Trade

Mr R. J. Smith Mr D.C. Goss

Mr G.J. Forrester

Mr I.H. Cousins Mr R.A. Burns

Ms P.C. Wells

Mr P.E. Fergus Mr G.J. Thompson Mr P.J. Hattam Mr P.R. Kosseck

Deputy Secretary Acting First Assistant Secretary Corporate Management Division Acting First Assistant Secretary

International Organisations, Information and Cultural Division Assistant Secretary, Nuclear Policy Branch Assistant Secretary

South Asia, Africa and Middle East Branch Acting Assistant Secretary New Zealand and Papua New Guinea Branch

Director, Administrative Law Section Director, Budget and Resources Sect'on Executive Officer, Financial Resources Executive Officer, Protocol Branch

Australian International Development Assistance Bureau

Dr P. McCawley Acting Director General Mr R. Irwin Assistant Director General Pacific and PNG Branch

63

Mr E. Huning

Mr M. Commins Mr A. Kelloway

Mr J . Wilson Mr M. Rice

Acting Assistant Director General Financial and Resource Management Branch Acting Director, Papua New Guinea Section Director Refugee and Disaster Co-ordination Section Acting Director, Indochina & Burma Section

Acting Director, Finance Accounting and Management Support Section

Australian Centre for International Agricultural Research

Dr J.R. Ryan Mr A. Barden Mr C.D. Thurlow

Deputy Director Manager, Corporate Services Centre Secretary

Department of Finance

Mr T. Williams Chief Finance Officer Ms H . Berry Finance Officer

The Committee considered the proposed expenditure set out under the heading ' Not Allocated To Program' on page 10 of the Department's Explanatory Notes. The Committee also considered the expenditure proposed in relation to Programs 1 through 6.

The expenditure considered comprised all the particulars of proposed additional expenditure relating to the Department that were referred to the Committee.

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

5. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1988-89 - DEPARTMENT OF TRANSPORT AND COMMUNICATIONS In attendance: Senator the Honourable G.J. Evans QC, Minister representing the Minister for Transport and Communications, accompanied by the following officers -Department of Transport and Communications

Ms C. Wiltshire Acting First Assistant Secretary International Aviation Policy Mr R. Phillip Acting Director Statistical Analysis and Forecasting Mr D. Buckingham First Assistant Secretary

Domestic Aviation

Mr P. Merner First Assistant Secretary Special Projects Mr R. Elder Assistant Secretary Domestic Aviation Industry Policy Branch

64

Mr D. Scorpecci Assistant Secretary, Infrastructure Branch Mr R. Turner Assistant Secretary, Security Branch Mr C. Lane Director, Resource Management Unit Dr R. Lee Acting Director, Air Safety

Mr G. Nadal Acting Executive Officer Bureau of Air Safety Investigation Mr R.N. Smith First Assistant Secretary Broadcasting Policy Division Mr V., Jones First Assistant Secretary

Communications Operations

Mr D.. Large Acting Assistant Secretary Enterprise Policy Branch Mr P.. Crone First Assistant Secretary Maritime Policy Division Mr P,. Eccles First Assistant Secretary

Maritime Operations Division

Ms D,. Mildern First Assistant Secretary Corporate Management Mr L,. Smith Acting Assistant Secretary Planning and Budgeting Branch

Australian Airlines

Mr B. Porter Manager, Policy and Planning

Federal Airports Corporation

Mr A. Ramsey Finance Controller

Civil Aviation Authority

Mr B . Gemmel Mr M . Dunn

Mr B . Whiteley

Mr B . O'Connell

Assistant General Manager Assistant General Manager Safety Regulatory Group

Manager Operational Control and Search and Rescue Assistant General Manager Airways Operations Group

Independent Air Fares Committee

Mr A. Bassett Director

Australian Broadcasting Tribunal

Ms R. Medd Acting General Manager Mr R. See Director, Corporate Services

Inter-State Commission

Mr F.C. Keith Mr 0. Rodda Mr C . Sayers

Secretary Executive Officer, Secretariat Assistant Secretary Information and Research Branch

65

Department of Finance

Mr G. Dodgson Senior Finance Officer Ms H. Berry Finance Officer

The Committee considered the proposed expenditure set out under the heading 'Not Allocated To Program' on page 14 of the Department's Explanatory Notes. The Committee also considered the expenditure proposed in relation to Programs

1, 2, 3, 5, 6 and 7.

The expenditure considered comprised all the particulars of proposed additional expenditure relating to the Department that were referred to the Committee.

The Committee concluded its consideration of the proposed additional expenditure for the Department of Transport and Communication, subject to undertakings to provide additional information to the Committee.

6. ADJOURNMENT: The Committee adjourned at 9.40 pm.

7. ATTENDANCE: Senators Coates (Chairman), Brownhill, Devereux, Hamer, Panizza and Schacht. Senators M. Baume, Hill and Lewis also attended.

Confirmed:

John Coates (Chairman)

66

THE SENATE

ESTIMATES COMMITTEE B

MINUTES OF PROCEEDINGS NO. 11

THURSDAY, 13 APRIL 1989

1. MEETING: The Committee met in private session at 9.56 am in the advisers waiting area outside the Senate Chamber. The Chairman, Senator Coates, took the chair.

2. APOLOGIES: Apologies were received from Senators Brownhill, Hamer and Schacht.

3. CONFIRMATION OF MINUTES: On the motion of Senator Devereux, the minutes of meeting no. 10 of 3 April 1989 were confirmed.

4. ADOPTION OF REPORT: On the motion of Senator Panizza, the draft report on the Additional Estimates for 1988-1989 was adopted.

5. ADJOURNMENT: The Committee adjourned at 9.57 am.

6. ATTENDANCE: Senators Coates (Chairman), Devereux and Panizza.

Certified correct:

John Coates (Chairman)

67

ESTIM ATES COMM ITTEE B

H A N SA R D IN D E X TO ISSUES R A ISE D AT

THE COM M ITTEE’S PUBLIC H E A R IN G S

May 1989

ESTIMATES COMMITTEE B

ISSUES RAISED DURING COMMITTEE HEARING

MONDAY, 3 APRIL 1989

Subject Page

Chairman's Opening Statement B1

DEPARTMENT OF FOREIGN AFFAIRS AND TRADE

Transfers of embassy staff B2-B3

Costs/benefits of agriculture specialist in Washington B3 Early retirements B3

Aid programs in Burma - savings and effects B3-B4

- unsuitable motor-bikes B4-B5

- water project B5

- effect of hiatus in aid B5-B6

- reactivation of programs B6

Aid as proportion of GDP B6-B7

Re-allocation of aid between projects B6-B7

Washington embassy - agricultural lobbyists B7-B8

- Congressional lobbyist B7-B8

Australian embassy in China - extra costs B9

Commonwealth Foundation - reason for funding B9-B12 UN Transitional Advisory Group in Namibia - cost B12-B13 - reimbursement from UN/net cost to Australia B13-B14 Aid to Ethiopia - effect of civil war B14

African locust plague - requests for aid B15-E15

Sudan - food and medical aid El 5

Mozambique - humanitarian aid E^5

Aid to Southern Africa - increase in costs B15-B16

AIDAB staff- early retirements B16- 17

- multi-skilling B17

Aid to South Pacific - distribution between countries B17 Passports - technological improvements B17-B18

Vietnam - need for consular officer in Ho Chi Minh City B18 Overseas Support Services - places needing extra staff B18-B19 ASIS - extra funds/National Safety Council collapse B18-B19

DEPARTMENT OF TRANSPORT AND COMMUNICATIONS

Sydney airport - provision for development funding B20-B21 - legality of higher charges for small aircraft B21 Adelaide airport - infrastructure improvements 21

Aviation Resources Review - further effects B21-B22 Amann litigation - current status, cost B22

Qantas/Australian Airlines - estimate of revenue if sold B22 Qantas aircraft purchase - financing arrangements B22-B23

71

t

Badgerys Creek airport - land acquisition B23

- provision of utilities B23

- off-Budget costs B24

Exmouth airport - purchase of real estate B24

Confidential aviation incident reporting system - budget B24-B25 Accident investigation - computer system B25

Review of 1983 Bass Strait accident - recommendations B26 Use of single-engine helicopters for off-shore rescues B26 Aviation safety regulatory function - costs B26-B27 Air traffic controller training/posting B27-B29

Independent Air Fares Committee - salaries increase B29

Australian Broadcasting Tribunal

ABT decisions - review by AAT, Federal Court, Ombudsman B29-B30 FCI requests B30

Complaints made to ABT B31

Australian music quota B31-B35

'Broadcasting in Australia' - relation to annual report B35-B36 - sales, costs B36

- ABT expertise in publication B36-B37

ABC shops - costs, profits B37

John Laws cases B37

Bond inquiry - when decision due B37-B38

Efficacy of power to revoke licences B38

Security of data held in ABT databases B38

Public radio financial database B39

Bond inquiry - legal costs, timetable B39

Legal costs - inclusion under 'Corporate Services' B39 Licensee provision of information to the ABT - objections B40 - audits of information provided B40

Actions for contempt of ABT B40-B41

Recent appointments to the ABT B41-B42

Westerway defamation action B42

Relocation of ABT office from Melbourne to Sydney B42

Questions on Notice

Aviation - adequacy of resources, aircraft maintenance overseas, effect of deregulation on safety, ALOP program, radar upgrades, shortage of air traffic controllers, air safety investigation B43

Retirements, use of retirees as consultants B43-B44

Telecommunications

Act of grace payment to former OTC managing director B44 Ojtic fibre cable connections B44-B45

OTC staff pay rises B45-B47

National Safety Council - links with Department B47

72

Maritime

umber/functions of Department staff B47

ccountability of ANL once it becomes a public company B47-B48 ational Shippers Forum B48

asmanian Freight Equalisation Scheme B48

il spills - pollution, recovery of clean-up costs B48-B49

Corporate Management

ational Safety Council - Department's provision of services, advice, etc., representative on the Council, information provided to the Department B49-B50

Questions on Notice

elecom subsidiaries and joint ventures B50

USTEL staffing, costs B50

Broadcasting

Public Broadcasting Foundation - controls to prevent fraud B50 - lack of private sector support B50-B51

- administration costs B51

ABC youth network - state of development B51

- clearing of frequencies B51-B53

- provision of transmitters B53-B55

Promotion of Australian contemporary music B55

Adelaide transmitter - interference B55-B56

Frequency allocation - automation, growth B56-B57

TV aggregation - Canberra completion B5 7

- other areas Î’57-ΒΓ.8

Future direction of pay TV - report rr >8

Reception interference - charging for investigations B59-B60 - correction when caused by power lines b6°

Delay, etc in provision of material to Senator Lewis B50-B61 Metropolitan radio plan - progress B61

Private microwave networks - statistics B61- '62

Public broadcasting - policy statement -62

Stereo radio - availability for ABC broadcasts B62

Questions on Notice

Aviation - overseas airlines' applications for landing rights, grants, etc.

73

It '

ESTIM ATES COMM ITTEE C

R E PO R T

Membership of Estimates Committee C

Senator Crowley (Chairman) Senator Archer 1»3 Senator Collins Senator Devlin Senator McGauran Senator Parer 3 Senator Watson 1 2 Senator Messner 4 Senator Teague 4

1 Discharged for the period 24 March 1988 to 17 May 1988. 2 Appointed for the period 24 March 1988 to 17 May 1988. 3 Discharged on 29 September 1988. 4 Appointed on 29 September 1988.

76

ESTIMATES COMMITTEE C

REPORT TO THE SENATE

Estimates Committee C presents its Report to the Senate

INTRODUCTION

1. On 9 March 1989 the Senate referred to the Committee the

Particulars of Proposed Additional Expenditure for the Service of

the year ending on 30 June 1989 and the Particulars of Certain Proposed Additional Expenditure in respect of the year ending on

30 June 1989 relating to the following portfolios:

Finance

Treasury

Employment, Education and Training

2. The Committee has considered the additional estimates of

the three portfolios as presented in the respective explanatory

notes and has received explanations of the additional estimates from the Minister for Finance and officers of the departments and

authorities concerned. 3

3. The Committee tables for the information of the Senate-

in connection with Appropriation Bills No. 3 and No. 4

(Additional Estimates) copies of the Minutes of Proceedings,

Hansard transcripts of evidence of Committee proceedings and a

table of contents to the Hansards. Those answers taken on notice

at the Committee's hearings will be tabled in the Senate under

separate cover in a volume entitled Additional Information

Provided During Estimates Committee C's Examination of Proposed

Additional Expenditure for 1988-89. This volume will also contain an additional document provided by the Department of

Finance and some outstanding answers to questions arising from

the Committee's Estimates hearings in October 1988.

77

4. The Committee wishes to bring to the attention of the

Senate some areas of concern:

PROVISION OF ANSWERS TO QUESTIONS ON NOTICE

5. The Committee is concerned at the time being taken to

provide answers to some questions on notice.

6. At the hearings of Estimates Committee C held on 10 and

11 October, 1988 the Department of Employment, Education and

Training undertook to provide answers to questions taken on

notice. A number of those questions were not answered until 22 March 1989. One question is still to be answered.

7. The Committee believes that the length of time taken by

the Department to answer the questions is unacceptable. The Committee hopes that all answers to questions taken on notice in

Additional Estimates will be provided promptly to enable those answers to be tabled in the Senate this session.

OFFICERS IN ATTENDANCE AT ESTIMATES COMMITTEE HEARING

8. The Committee raises the matter of early exit of

departmental officers once their program has been heard. The

questioning of those additional estimates not allocated to

programs but which are running costs associated with programs may

not be possible if officers have departed once the hearing of

their program has finished. The Committee wishes to ensure that

the relevant officers remain present until all of the

apartment's evidence is concluded.

USTRALIAN TAXATION OFFICE

. Under the Taxation estimates a number of questions were aised on tax file number letters being mailed to dead people and

ople at the wrong address. The Committee discovered that the

78

letters contained no information which would be embarrassing or which could be effectively used by another party and the

Committee takes note of the efforts of the Taxation Office to

ensure as much as possible that no further mailing errors occur.

ACKNOWLEDGEMENTS

10. The Committee takes this opportunity to thank the

Minister for Finance, Sen_tor Peter Walsh, and the Minister for

Immigration, Local Government and Ethnic Affairs, Senator Robert

Ray, for their assistance.

11. The Committee also thanks the officials of the three departments for their co-operation and attendance.

12. I place on record my appreciation of the secretariat

assistance provided to the Committee.

Rosemary Crowley Chairperson

ESTIM ATES COMMITTEE C

M INUTES OF PR O CEEDING S

May 1989

THE SENATE

ESTIMATES COMMITTEE C

MINUTES OF PROCEEDINGS

NO. 15

MONDAY, 3 APRIL 1989

1. MEETING: The Committee met at 2.40 p.m. in Committee Room No. 16. The Acting Chairperson, Senator Collins, took the chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1988-89 FINANCE PORTFOLIO:

3. IB ATTENDANCE: Senator the Hon. R. Ray, Minister for Immigration, Local Government and Ethnic Affairs, representing the Minister for Finance, accompanied by the following officers:

Department of Finance

Mr P.J. Barrett

Mr J.V. Galloway

Mr M.W. Crompton

Mr M.R. Holmes

Mr J. Walsh

Mr G . Hope

Mr H. Campbell

Mr J . Nicholson

Deputy Secretary

Assistant Secretary Resource Policies and Management Branch

Assistant Secretary Retirement Benefits Branch

Assistant Secretary Financial Management Improvement Branch

Director Finance and General Services Section

Chief Finan:e Officer Primary Industries and Energy Branch

Senior Finance Officer Financial Management and Accounting Policy Division

Chief Finance Officer Financial Management and Accounting Policy Division

83

Australian Government Retirement Benefits Office:

Mr K.J. McCullagh Acting Assistant Commissioner Resources Management

Mr R.R. Jackson Acting Director

Finance, Planning and Review

Australian Audit Offices

Acting First Assistant Auditor-General Corporate Management Division

Assistant Auditor-General Planning and Resource Management Branch

Assistant Auditor-General Audit Division C

Director Management Section

Finance Officer Management Section

The Chairperson called on for consideration the following programs:

Program 3: Government Financial Administration and Accounts Program 4: Retirement Benefits Program 6: Corporate Services Program 7: Australian Audit Office

and non-program specific variations.

Together the expenditure in these programs comprised the following Divisions: 304, 305, 306.

The Committee concluded its consideration of Particulars of Proposed Additional Expenditure 1988-89 subject to an undertaking by the Minister and by officers to provide additional information to the Committee..

The following document was provided by the Department and is to be incorporated in the volume of Additional Information to be tabled in the Senate:

* Letter to Chairperson on Advance to the Minister for Finance

Mr E.M. Hay

Mr C.M. McPherson

Mr A.S. Minchin

Mr D.C. McKean

Mr F.P. Campbell

84

4 . PARTICULARS OF PROPOSED ADDITIONAL· EXPENDITURE 1988-89 TREASURY PORTFOLIOi

5. IN ATTENDANCE; Senator the Hon. P. Walsh representing the Treasurer, accompanied by the following officers:

Department of the Treasury

Dr C.I. Higgins (Economic)

Deputy Secretary-

Mr B.J. Gleeson Assistant Secretary

Coordination and Management Branch

Dr I.J. Watt Assistant Secretary

Capital Markets Division

Mr D . Traynor Administrative Service Officer

Capital Markets Division

Mr A.G. Henderson Assistant Secretary Fiscal Policy Division

Mr A.G. Dolan Administrative Service Officer

Taxation Policy Division

Mr D.W. Holmesby Director

Coordination and Management Branch

Mr R. Eaton Assistant Director

Coordination and Management Branch

Mr P. Webb Administrative Service Officer

Coordination and Management Branch

Mr R. McDonald Assistant Commissioner

Corporate Management Support Branch

Mr R. Highfield Senior Assistant Commissioner Audit Strategic Planning, Audit Group

Ms J. Hurditch Assistant Commissioner

Tax File Number Project

Mr C . Mobbs Executive Officer

Corporate Budgeting Section

Mr M. Gosney Director

Security, Corporate Services Group

85

Industries Assistance C o m m i s s i o n :

Mr A. Lawson First Assistant Commissioner

Mr J. Day Assistant Commissioner

Corporate Services Branch

Mr J. Moore Finance Officer

Finance and Services Section

Australian Bureau of Statistics:

Mr R.W. Edwards First Assistant Statistician Coordination and Management Division

Mr I. King Assistant Statistician

Resource Management Branch

Ms B . Dunlop Assistant Statistician

International Accounts Branch

Mr T. Skinner First Assistant Statistician

Social and Labour Division

Mr D. Trewin First Assistant Statistician

Statistical and Information Services Division

Mr B .M. Fitzpatrick Assistant Statistician Operations Branch

Ms M.C. Jones Director

Resource Management and Systems Section

Ms P. Guy Senior Inspector

Finance Management Subsection

Insurance and Superannuation Commission:

Mr G.L. Burns Assistant Commissioner

Corporate Services

Mr R.H. Dean Deputy Commissioner

Superannuation

Ms D.A. Hart Director

Corporate Services

Mr T.J. Thomas Director, Policy

86

Department of Finance:

Mr E. Wojcik Senior Finance Officer

Financial Management and Accounting Policy Division

The Chairperson called on for consideration the following programs:

Program Is Economic Policy Program 3: Payments to or for the States, the Northern Territory and Local Government Authorities Program 5: Australian Bureau of Statistics Program 6 s Taxation Administration

and non-program specific variations.

Together the expenditure in these programs comprised the following Divisions: 670, 671, 672, 673, 675, 977, 978, 979, 980.

The Committee concluded its consideration of Particulars of Proposed Additional Expenditure 1988-89 subject to an undertaking by the Minister and by officers to provide additional information to the Committee.

6. ADJOURNMENT: The Committee adjourned at 5.40 p.m. until 3.30 p.m. Tuesday, 11 April 1989 when the Committee will call on the Department of Employment, Education and Training.

7. TN ATTENDANCE: Senators Crowley (Chairperson), Collins, Devlin, Messner and Teague. Senators M. Baume and Watson also attended. Apology: Senator J. McGauran

Confirmed:

Rosemary Crowley Chairperson

87

THE SENATE

ESTIMATES COMMITTEE C

MINUTES OF PROCEEDINGS

NO. 16

MONTAY, 11 APRIL 1989

MEETING: The Committee met at 6.00 p.m. in Committee Room No. 16. The Chairperson, Senator Crowley took the chair.

ADDITIONAL EXPENDITURE 1988-89

EMPLOYMENT. EDUCATION

3. IN ATTENDANCE: Senator the Hon. P. Walsh, Minister for Finance, representing the Minister for Employment, Education and Training, accompanied by the following officers:

Department of Employment. Educati n and Training

Mr K. Power

Mr A. Kaspura

Mr M. Gallagher

Mr B . Milligan

Mr J . Muir

Mr B. McNamara

Mr J . McCarthy

Mr J . Parr

Mr C . Robinson

Deputy Secretary

First Assistant Secretary Schools and Curriculum Division

First Assistant Secretary Community and Aboriginal Programs Division

First Assistant Secretary Higher Education Division

First Assistant Secretary Management Division

Principal Adviser Client Services Division

Assistant Secretary Training and Adjustment Assistance Branch

Assistant Secretary Aboriginal Programs Administration Branch

Acting Assistant Secretary Aboriginal Programs Development Branch

88

Mr M. Cusack Assistant Secretary

Community Programs Branch

Ms L. Hale Assistant Secretary

Resources Management Branch

Mr R. Harvey Assistant Secretary

Program Review and Income Support Branch

Dr K. Keogh Acting Assistant Secretary

Liaison and Communications Branch

Dr A. Gordon Assistant Secretary

Languages Policy and Asian Studies Branch

Mr D. Fisher Director

National Board of Employment, Education and Training

Mr W. Pritchard Acting Director

Resources and Accountability Section Schools and Curriculum Division

Mr L. Malezer Director

Community Based Strategy Section Community and Aboriginal Programs Division

Ms F. Hinton Director, Analysis

Administration and Special Programs Section TAFE and Skills Formation Division

Mr R . Brown Acting Director

Program Resources Section Resources Management Branch

Dr P. Whitney Director

Higher Education Contribution Scheme Section Higher Education Division

Mr B. Peck Acting Assistant Secretary

Student Services Branch

Department of Finance

Mr J . Dun Senior Finance Officer

Education and Employment Division

Mr I . McRae Chief Finance Officer

Education and Employment Division

89

Ms W. Jarvie

Mr A . Hunt

Chief Finance Officer Education and Employment Division

Senior Finance Officer Education and Employment Division

4 .

5.

The Chairperson called on for consideration the following programs:

Program 1: Schools Program 2: Higher Education Program 3: Skills Formation Program 4s Special Employment, Education and Income

Support

Program 5: Labour Market Operation Program 6s Corporate Services and Portfolio Advising

and non-program specific variations.

Together the expenditure in these programs comprised the following Divisions s 270, 271, 275, 848, 849, 850, 851.

The Committee concluded its consideration of the Particulars of Proposed Additional Expenditure 1988-89 subject to an undertaking by the Minister and officers to provide additional information to the Committee.

ADJOURNMENTs The Committee adjourned at 9.22 p.m.

IN ATTENDANCES Senators Crowley (Chairperson), Collins, Devlin, McGauran, Messner and Teague.

Confirmeds

Rosemary Crowley Chairperson

90

THE SENATE

ESTIMATES COMMITTEE C

MINUTES OF PROCEEDINGS

NO. 17

WEDNESDAY, 3 MAY 1989

1. MEETING: The Committee met in deliberative session at 1.15 p.m. in Committee Room No. 18. The Chairperson, Senator Crowley, took the chair.

2. CONFIRMATION OF MINUTES: On the motion of Senator Collins the Minutes of Meetings No.15 and No.16 were read and confirmed.

3. DRAFT REPORT: The Committee agreed to the following amendments:

(a) by Senator Crowley to delete paragraph 8;

(b) by Senator Crowley to delete and insert words in first line of new paragraph 8;

(c) by Senator Crowley to insert paragraph on Australian Taxation Office;

(d) by Senator Crowley to insert final paragraph.

On the motion of Senator Collins, it was agreed that the draft report as amended be adopted.

4. T.ETTER FROM AUSTRALIAN STATISTICIAN ON QUESTIONS ON NOTICE:

The Committee agreed that a copy of the correspondence should be forwarded to the President of the Senate and the Clerk of the Senate for their information.

5. ADJOURNMENTi The Committee adjourned at 1.32pm.

6. IN ATTENDANCE: Senators Crowley (Chairperson), Collins, McGauran.

Confirmed:

Rosemary Crowley Chairperson

91

ESTIM ATES COMMITTEE C

H A N S A R D IN D E X TO ISSUES R A ISE D AT

THE COM M ITTEE’S PUBLIC H E A R IN G S

May 1989

SENATE

ESTIMATES COMMITTEE C

Table of Contents for Hansard of Hearing

Monday, 3 April 1989

Pages

Chairman's Opening Statement 1-2

DEPARTMENT OF FINANCE

Retirement Benefits

2

Pensions for former State railway employees in South Australia and Tasmania 2

Collection of employment declarations from AGRBO pensioners 3-4

Treatment of deductions for taxation from AGRBO pensioners in the period before declarations recieved 4

Superannuation Fund Investment Trust - leasing arrangements in ANZ Centre building 10

- future liability 10-11

- arrangements required in the event of a change of policy regarding the Commonwealth superannuation scheme 12

- liability in relation to commercial operations - 2

Cost to Government superannuation fund of recent early retirement schemes 12-13

Retirements on grounds of invalidity - 3

Return of invalid retirees as consultants or independent contractors 13-14

Australian Audit Office

Audit on Department of Aboriginal Affairs :

Control by Auditor-General of audits of Government authorities

95

- adequacy of staffing 5

- possibility of using other firms of auditors under contract 5-6

- level of involvement of the Australian Audit Office in contract situations 6

Australian Airlines audit 6

Audit arrangements for subsidiaries of government-owned instrumentalities that Australian Audit Office unable to be auditors of 7-8

Superannuation Fund Investment Trust audit 8

Trade Union Training Authority audit 9

Costs of relocation from Silverton Centre 9-10

Audit on Aboriginal Affairs - follow-up on report 10

DEPARTMENT OF THE TREASURY

Economic Policy

Inflation and balance of payments estimates 15

Overseas debt 15

Interest rates 16

Commodity prices 16

Payments to the States

Assistance to New South Wales and Queensland re current flood disasters 16

Australian Bureau of Statistics

Household expenditure survey 16

Taxation Administration

Staff recruitment 16-18

Tax file numbers - mistakes and errors in mailing 18

- information on deaths 19

- contents of letter from Tax Office 20

Pages

96

Pages

- possibilities of fraud 20-21

- file validation program 21-22

- time required to obtain one from Taxation Office 26

Employment declarations - multiple employers 22

- cost of printing 24

- deadline for the return of 25

- rate of disclosure of tax file numbers 25-26

Raid on Citicorp Bank 26

Lockhart decision 27

Clerk's union strike 27

Penalties for late lodgment of group income tax returns 28

Appointment of Governor of the Reserve Bank 28

Graduate Tax - administration 28

- High Court challenges 29

- annual increase for inflation 30

- information collected 30

- privacy provisions 31

- sources of information 31

Taxation Office corporate plan -1

Taxpayer service performance 32

Improvement of relations with tax agents 2

Tax field auditors 32-3.'

Automated envelope equipment in Melbourne office

Section 69 of the Income Tax Assessment Act 11

97

SENATE

ESTIMATES COMMITTEE C

Table of Contents for Hansard of Hearing

Tuesday, 11 April 1989

Pages

Chairman's Opening Statement 36

General

Higher education funding - reports on profiles and on HECS 36

- HECS arrangements 36

- money amounts for individual institutions 36-37

- HECS liability in particular case 37

- funding for Swinburne Film and Television School 37-38

Asian Studies Council 38-39

Australian education centres overseas 39-40

National Centre for English Language Training and Research 40

Schools

Ethnic schools - accountability 40

- grants to groups/organisations 41

Establishment grants 41

Retention rates 41-42

Australian Education Council meeting agenda - national curriculum guidelines 42-43

- school commencement ages 43

- assessment methodology 43

- consultation with non-government schools 43-44

Rural education 'fair go' package 44

98

Pages

Higher Education

Austudy for students in remote areas 44

Proposed merger of ANU with the CCAE 45-46

Interim report from the Amalgamations Task Force 46; 56

Review of research funding under Professor Smith 46

Unmet demand 47

Overseas students - absolute numbers - quotas - countries of origin

47 47 48

Science students 48-50

Final report of Task Force on Higher Education Amalgamations 56

Merger of Ballarat CAE with Deakin University in Victoria 56

Higher education institutions in Queensland

Skills Formation

57

Non-government business colleges 50-51

Industry Training Seminars 51

ABS survey of employers re training

Special Employment, Education and Income Support

52-53

Additional estimate for benefits controls unit 53-54

Childcare assistance for students seeking training 54

Employment training for aborigines

Management Services

54-55

Additional running costs for training activities 55

Early retirement for ASO classifications 6 to 8 55

99

I

1

ESTIM ATES COMMITTEE D

R EPO R T

May 1989

Senator Colston (Chairman) 1 2 3 Senator Peter Baume 3 Senator Giles 3 Senator Sheil 1,3 Senator Walters 3 Senator Zakharov 3 Senator Bjelke-Petersen 2 Senator Black (Chairman) 4 Senator Coates 4'6 Senator Cooney 4 - 8 Senator Hill 4 Senator Puplick 5 Senator Reid 5 Senator MacGibbon 5 Senator Newman 5 Senator Maguire 7 Senator Faulkner 9

Membership of Estimates Committee D

1 Discharged for the period 24 March 1988 to 17 May 1988. 2 Appointed for the period 24 March 1988 to 17 May 1988. 3 Discharged on 29 September 1988. 4 Appointed on 29 September 1988. 5 Senators Puplick and Reid appointed on 29 September

1988, with Senators MacGibbon and Newman to replace Senators Puplick and Reid for the consideration of the estimates of the Departments of Defence and Veterans' Affairs. 6 Discharged on 9 March 1989. 7 Appointed on 9 March 1989. 8 Discharged for 14 April 1989 only. 9 Appointed for 14 April 1989 only.

102

ESTIMATES COMMITTEE D

REPORT TO THE SENATE

Estimates Committee D presents its Report to the Senate.

1. On 9 March 1989 the Senate referred to the Committee, for

examination and report, the Particulars of Proposed Additional Expenditure for the Service of the year ending on 30 June 1989,

and the Particulars of Certain Proposed Additional Expenditure

in respect of the year ending on 30 June 1989 , relating to the

following departments:

The Arts, Sport, the Environment, Tourism and Territories

Defence

Veterans' Affairs

2. The Committee has considered these Estimates and has received

explanations of them from the Minister for the Arts, Sport, the Environment, Tourism and Territories (Senator the Hon. Graham Richardson) and officers of the departments concerned. A copy of

the Minutes of Proceedings, a document received during the public

hearings, Hansard reports of the evidence taken by the Committee

and an index of issues raised during the public hearings are

tabled for the information of the Senate in connection with

Appropriation Bill (No. 3) 1988-89 and Appropriation Bill (No. 4)

1988-89 . Additional information provided to the Committee will

be tabled separately in the Senate and be available from the

Senate Table Office. 3

3. The Committee draws the attention of the Senate to the following matters arising from its consideration of the

Estimates:

103

Departmental groupings

In its November 1988 Report, the Committee expressed concern

at the way in which departments were allocated to Committees for estimates hearings and urged a re-arrangement of departments into

relevant groupings.

The Committee is still finding its present departmental

grouping, with interchangeable membership, to be an

unsatisfactory arrangement and again requests that a more

relevant allocation of departments be adopted before the next

estimates hearings.

Department of Defence - Performance Indicators

The Committee noted in its previous Report the failure by the Department of Defence to provide performance indicators in any

section of its estimates.

The Committee acknowledges the effort by the Department in providing information on performance indicators which it had

indicated at the previous hearings was not likely to be available until the 1989-90 Budget hearings.

Questions on Notice - Outstanding responses

The Committee notes the number of outstanding responses to questions on notice at the time of preparation of this Report - a

recurrence of the situation existing at the time of preparation

of its November 1988 Report. Delays in responding to questions has been the subject of critical comment by a number of Estimates Committees on previous occasions.

The Committee notes that undertakings have been made by departments to provide outstanding responses before the

Appropriation Bills are debated in Committee of the Whole. This situation will be closely monitored by the Committee.

104

Attendance of Witnesses

Estimates Committees also have commented in recent years on

the attendance of witnesses before Committees and their

expectations in relation to the capacity of witnesses to

satisfactorily respond to questions. In particular, the

Department of Defence has been subject to adverse comment,

although the situation had improved by November 1987 (Estimates

Committee E - Reports 1986 and 1987).

The Committee is concerned that a trend is reappearing

whereby a large number of officers attend the hearings, although

many questions still need to be taken on notice as the officers

present are unable to provide information asked of them.

The Committee believes that in the interests of economy it should be possible for Departments to have fewer officers attend

the hearings, yet maintain a level of seniority with its

officers, who would be capable of authoritatively answering

questions relating to their areas of responsibility.

ACT Administration

With the move towards self-government in the Australian

Capital Territory, the ACT Administration did not have any

appropriation items included in Appropriation Bill (No. 3) and

Appropriation Bill (No. 4) and also, therefore, within the

Particulars of Proposed Additional Expenditure referred to the

Committee for examination. Any funding received from the

Commonwealth is via the relevant departmental item in a manner

consistent with Commonwealth/State financial arrangements.

The Committee wishes to express its appreciation to

Mr A. Blunn, Secretary of the Department of the Arts, Sport, the Environment, Tourism and Territories and the officers from ACT

Administration for their willingness to assist the Committee

105

through the preparation and provision of a document detailing the Revised Estimates of the ACT Administration 1988-89 and their appearance before the Committee.

The Committee also expresses its appreciation of the

assistance given by the Minister for the Arts, Sport, the Environment, Tourism and Territories, Senator the Hon. Graham Richardson and other officers of the various departments and authorities who appeared before the Committee.

John Black Chairman

May 1989

106

DOCUMENT RECEIVED BY THE COMMITTEE

DURING PUBLIC HEARINGS

The following document was received by the Committee during the public hearings and has been included as an attachment to the tabled copy of the Committee's Report to the Senate. Other documents received during the public hearings and

additional information provided to the Committee will be tabled separately and will be available from the Senate Table Office.

Department of Veterans' Affairs - Corporate Plan

ESTIM ATES COMMITTEE D

M INUTES OF PRO CEEDING S

May 1989

THE SENATE

ESTIMATES COMMITTEE D

MINUTES OF PROCEEDINGS

NO. 1

THURSDAY, 13 APRIL 1989

MEETING: The Committee met in public session at 2.07 pm in Senate Committee Room No. 10. Senator Black took the Chair.

STATEMENT BY CHAIRMAN: The Chairman reported resolutions of the Senate dated 9 March and 10 April 1989

relating to the reference of Particulars of Proposed Additional Expenditure 1988-1989 and changes in the membership of the Committee.

PROCEDURE: The Committee agreed to examine the proposed additional expenditure of Departments in the following order:

Department of the Arts, Sport, the Environment, Tourism and Territories Department of Defence Department of Veterans' Affairs ACT Administration

PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1988-89 DEPARTMENT OF THE ARTS, SPORT, THE ENVIRONMENT, TOURISM AND TERRITORIES. In attendance. Senator the Honourable Graham Richardson, Minister for the Arts, Sport, the

Environment, Tourism and Territories, accompanied by the following officers:

Department of the Arts, Sport, the Environment, Tourism and Territories -Mr A.S. Blunn, Secretary

Mr P. Kennedy, Deputy Secretary

Mr J. Ferguson, First Assistant Secretary, Sport and Recreation Division

Ms J . Harrison, Assistant Secretary, Sport and Recreation Branch

Mr R. Moncur, Acting Director, Antarctic Division

Mr G. Dempster, First Assistant Secretary, Corporate Management and External Territories Division

Mr S. Arnaudon, Assistant Secretary, Territories Branch

Mr P. Carmody, Secretary and Management, National Capital Planning Authority

Ms C. Santamaria, First Assistant Secretary, Arts, Film and Cultural Heritage Division

Mr N. Quinn, First Assistant Secretary, Conservation Division

Dr P. Bridgewater, First Assistant Secretary, Natural Heritage and Environment Protection Division

Australian Institute of Sport/Australian Sports Commission:

Dr R. Smith, Acting Director

Mr R. Harvey, Deputy Chairman

Mr P. Crosswhite, Acting General Manager

Mr R . Hobson, Acting Director, Corporate Services

Mr J . Barker, Manager, Finance

Australian Film, Telelvision and Radio School:

Mr J. O'Hara, Director

Mr A. Morrisson, Head, Management Services

Australian National Gallery:

Mr J . Millison, Director

Mr G. Andrews, Administrator

Mr A. Kelly, Financial Manager

Australian National Maritime Museum:

Dr K. Fewster, Director

National Film and Sound Archive:

Mr G. Gilmour, Director

National Library of Australia:

Mr E. Wainwright, Deputy Director-General

Mr A. Cahill, Assistant Director-General

112

National Museum of Australia:

Dr D.F. McMichael, Director

Mr B . Palmer, Assistant Director

National Science and Technology Centre:

Dr M. Gore, Director

Mr G. Bullivant, Business Manager

Australian National Parks and Wildlife Service:

Mr M. Hill, Deputy Director

Mr J . Crennan, Principal Executive Officer

Australian Heritage Commission:

Mr D.C. Griffiths, Director

Supervising Scientist for the Alligator Rivers Region and the Alligator Rivers Regional Research Institute:

Mr R.M. Fry, Supervising Scientist

Mr D. Cotton, Acting Head, Management Services Branch

Department of Finance -Ms H. Berry, Senior Finance Officer, Finance Management Improvement Branch

Mr J . Anderson, Chief Finance Officer, Education and Employment Division

Mr B . Cassimatis, Senior Finance Officer

Mr D . Browne, Investigation Officer, Education and Employment Division

The Chairman called on the following programs for consideration by the Committee. The expenditures proposed for these programs are contained in the Particulars of Proposed Additional Expenditure documents.

Program 3 Program 6 Program 7 Program 9

- Antarctic - Film and Television - Cultural Heritage and Information - Natural Heritage and Environment

Protection

113

Program 8 - Conservation Program 1 - Sport and Recreation Program 4 - Territories Program 10 - Cororate Services

The Committee received the following document:

Australian Institute of Sport - Comments made in response to matters raised in the Auditor's Report of the financial statements of the AIS for the period ending 30 June 1988.

The Committee, having deferred final consideration of Programs 4 and 10, suspended its examination of the Department's estimates.

5. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1988-1989 -DEPARTMENT OF DEFENCE. In attendance, Senator the Honourable Graham Richardson, Minister for the

Arts, Sport, the Environment, Tourism and Territories, accompanied by the following officers:

Department of Defence -Mr R.N. McLeod, Deputy Secretary, Budget and Management

Mr G.F. Jones, Acting Deputy Secretary, Acquisition and Logistics

Mr H .A . D'Assumpcao, Chief Defence Scientist

Rear Admiral A.L. Beaumont, Acting Vice-Chief of the Defence Force

Rear Admiral P.R. Sinclair, Deputy Chief of the Naval Staff

Brigadier I.G.A. Macinnis, Acting Deputy Chief of the General Staff

Air Commodore F.D. Cox, Acting Deputy Chief of the Air Staff

Major-General J.C. Grey, Acting Head of Defence Logistics

Rear Admiral B.L. West, Assistant Chief of Materiel, Navy

Major-General D.M.M. Francis, Assistant Chief of Materiel, Army

Brigadier I.J.C. Hearn, Deputy Assistant Chief, Materiel Army

Air Vice-Marshal H.F. Roser, Assistant Chief, Material, Air Force

114

Major-General B.W. Howard, Director-General, Natural Disasters Organisation

Mr R.B. Finnegan, First Assistant Secretary, Human Resource Divisions

Mr A.D. Powell, First Assistant Secretary, Facilities and Property Division

Dr R.G. Brabin-Smith, First Assistant Secretary, Force Development and Analysis Division

Dr A. Hawke, First Assistant Secretary, Science Corporate Management Services Division

Mr B . Oxley, Acting First Assistant Secretary, Policy Coordination Division

Mr P.G. Terrill, First Assistant Secretary, Project Development and Communications Division

Mr J.E. McMahon, Acting Chief of Defence Production

Mr D. Baritt-Eyles, Acting First Assistant Secretary, Management Improvement and Manpower Policy Division

Commodore D.S. Ferry, Acting First Assistant Secretary, Information Systems Policy Division

Mr D. Hawke, Acting First Assistant Secretary, Resources and Financial Programs Division

Mr J.S. Kelaher, Acting First Assistant Secretary, Budget and Support Division

Mr S.J. Merchant, Acting Special Adviser, International Policy

Brigadier D.L.H. Buring, Director-General, Defence Force Pay and Conditions

Mr R.C. Lane, Assistant Capital Procurement Secretary, Resources Planning

Mr G.H.

Navy

Hansen, Assistant Secretary, Resources Planning,

Mr G.E.

Programs Veitch, Acting Assistant Secretary, Financial

Mr M .F .

Planning Taylor, Acting , Army Assistant Secretary, Resources

115

Λ

Mr Κ. Moore, Acting Assistant Secretary, Resource Planning, Air Force

Mr K. Moran, Acting Assistant Secretary, Resources Planning, Central

Mr R. Templar, General Manager, Operations, Defence Housing Authority

Mr L. Milkovits, General Manager, Finance and

Administration, Defence Housing Authority

Mr M.L. Murdoch, Director, Logistic Resources Programs

Mr G. Clark, Director, Financial Programs

Mr G. Holt, Acting Director, Program Budgeting

Mr B.J. Kelly, Assistant Director, Estimates Management

Mr C. Ford, Assistant Director, Estimates Analysis and Coordination

Mr W. Dodt, Research officer

Department of Finance -Mr P. McCarthy, Senior Finance Officer

The Chairman called on the following programs for consideration by the Committee. The expenditures proposed for these programs are contained in the Particulars of Proposed Additional Expenditure documents:

Program 2 - Defence Development Program 4 - Defence Support Sub-program 5.3 - Strategic Planning Sub-program 5.4 - Logistics

The Committee having concluded its consideration of sub-program 5.4, suspended its examination of the Department's estimates.

6. ADJOURNMENT: The Committee adjourned at 10.35 p.m.

116

7. ATTENDANCE: Senators Black, Cooney, MacGibbon, Maguire, Newman, Puplick and Reid. An apology was received from Senator Hill. Senators Archer, Boswell, Calvert, McGauran and Watson also attended.

Confirmed:

Senator John Black Chairman

117

THE SENATE

ESTIMATES COMMITTEE D

MINUTES OF PROCEEDINGS

NO. 2

FRIDAY, 14 APRIL 1989

1. MEETING: The Committee met in public session at 9.05 am in Senate Committee Room No. 10. Senator Black took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1988-89 - DEPARTMENT OF THE ARTS, SPORT, THE ENVIRONMENT, TOURISM AND TERRITORIES - STATEMENT BY CHAIRMAN: The Chairman made a statement relating to deferred programs 4 and 10 and

concluded the Committee's consideration of the proposed additional expenditure for the Department of the Arts, Sport, the Environment, Tourism and Territories subject to undertakings to provide additional information to the Committee.

3. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1988-89 - DEPARTMENT OF DEFENCE. In attendance. Senator the Honourable Graham Richardson, Minister for the Arts, Sport, the Environment, Tourism and Territories, accompanied by the following officers:

Department of Defence -Mr R.N. McLeod, Deputy Secretary, Budget and Management

Mr G.F. Jones, Acting Deputy Secretary, Acquisition and Logistics

Mr H.A. D'Assumpcao, Chief Defence Scientist

Rear Admiral A.L. Beaumont, Acting Vice-Chief of the Defence Force

Rear Admiral P.R. Sinclair, Deputy Chief of the Naval Staff

Brigadier I.G.A. Macinnis, Acting Deputy Chief of the General Staff

Air Commodore F.D. Cox, Acting Deputy Chief of the Air Staff

Major-General J.C. Grey, Acting Head of Defence Logistics

118

Rear Admiral B.L. West, Assistant Chief of Materiel, Navy

Major-General D.M.M. Francis, Assistant Chief of Materiel, Army

Brigadier I.J.C. Hearn, Deputy Assistant Chief, Materiel Army

Air Vice-Marshal H.F. Roser, Assistant Chief, Material, Air Force

Major-General B.W. Howard, Director-General, Natural Disasters Organisation

Mr R.B. Finnegan, First Assistant Secretary, Human Resource Divisions

Mr A.D. Powell, First Assistant Secretary, Facilities and Property Division

Dr R.G. Brabin-Smith, First Assistant Secretary, Force Development and Analysis Division

Dr A. Hawke, First Assistant Secretary, Science Corporate Management Services Division

Mr B. Oxley, Acting First Assistant Secretary, Policy Coordination Division

Mr P.G. Terrill, First Assistant Secretary, Project Development and Communications Division

Mr J.E. McMahon, Acting Chief of Defence Production

Mr D . Baritt-Eyles, Acting First Assistant Secretary, Management Improvement and Manpower Policy Division

Commodore D.S. Ferry, Acting First Assistant Secretary, Information Systems Policy Division

Mr D . Hawke, Acting First Assistant Secretary, Resources and Financial Programs Division

Mr J.S. Kelaher, Acting First Assistant Secretary, Budget and Support Division

Mr S.J. Merchant, Acting Special Adviser, International Policy

Brigadier D.L.H. During, Director-General, Defence Force Pay and Conditions

Mr R.C. Lane, Assistant Secretary, Resources Planning Capital Procurement

119

Mr G.H. Hansen, Assistant Secretary, Resources Planning, Navy

Mr G.E. Veitch, Acting Assistant Secretary, Financial Programs

Mr M.F. Taylor, Acting Assistant Secretary, Resources Planning, Army

Mr K. Moore, Acting Assistant Secretary, Resource Planning, Air Froce

Mr K. Moran, Acting Assistant Secretary, Resources Planning Central

Mr R. Templar, General Manager, Operations, Defence Housing Authority

Mr L. Milkovits, General Manager, Finance and

Administration, Defence Housing Authority

Mr M.L. Murdoch, Director, Logistic Resources Programs

Mr G. Clark, Director, Financial Programs

Mr G. Holt, Acting Director, Program Budgeting

Mr B.J. Kelly, Assistant Director, Estimates Management

Mr C. Ford, Assistant Director, Estimates Analysis and Coordination

Mr W. Dodt, Research officer

Mr F.R. Harvey, Inspector-General

Captain P.J. Purcell, Mini-Hunter Inshore Project Director

Mr R. Smith, Acting Assistant Secretary, Manager Controls Branch

Department of Finance -Mr S. Macleod, Chief Finance Officer, Defence Estimates

The Committee resumed its examination of the Department's estimates. The Chairman called on the following programs for consideration by the Committee. The expenditures proposed for these programs are contained in the

Particulars of Proposed Additional Expenditure documents.

1 2 0

Program 1 - Current Defence Forces Program 3 - Defence Force Retirement and Death Benefits Sub-program 5.1 - Executive Sub-program 5.2 - Personnel, Management and Support

The Committee concluded its consideration of the proposed additional expenditure for the Department of Defence subject to additional questions from Senator Newman being taken on notice and undertakings to provide additional

information to the Committee.

4. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE FOR THE DEPARTMENT OF VETERANS' AFFAIRS: In attendance, Senator the Honourable Graham Richardson, Minister for the Arts, Sport, the Environment, Tourism and Territories, accompanied by the following officers:

Department of Veterans' Affairs -Mr E. Attridge, Acting Deputy Secretary

Mr P. Hawker, National Program Director, Benefits

Mr P. Rake, Assistant Secretary, Benefits Planning and Management

Ms K. Grimsley, Assistant Secretary, Income Support

Mr P. Callioni, Assistant Secretary, Compensation and Review

Mr J . Dalton, Senior Project Officer, Inquiry into the needs of Australian Mariners, Commonwealth and Allied Veterans' and Allied Mariners

Mr F. Woodhouse, Principal Registrar, Veterans Review Board

Mr T . Tucker, Director, Operations, Veterans Review Board

Ms N. Peck, Director, Management Services and Systems, Veterans' Review Board

Ms S. Pilley, Registrar, Australian Capital Territory Office of Veterans' Review Board

Mr A. Ashford, National Program Director, Health

Mr M. Goldstein, Principal Adviser, Treatment Delivery

Mr R. Somes, Principal Adviser, Repatriation Hospitals

1 2 1

Dr O. Curteis, Chief Executive Officer, RGH Concord

r

Mr B. Flynn, Acting Deputy Commissioner, South Australia Deputy, Chief Executive Officer, RGH Heidelberg

Mr W. Maxwell, Assistant Secretary, Treatment -

Departmental

Ms A. Turner, Assistant Secretary, Treatment -

Non-Departmental

Mr G. Thom, Assistant Secretary, Hospitals Transfer

Mr K. Fredericks, Assistant Secretary, Health Program Administration

Mr R. Marshall, National Director, Vietnam Veterans Counselling Service

Mr G. O'Connor, Acting National Program Director, Cororate Services

Mr D. Gill, Deputy Commissioner, New South Wales

Mr R. Bear, Assistant Secretary, Budgets

Ms H. Swift, Assistant Secretary, Departmental Support

Mr R . Hay, Director, Corporate Services Support

Ms J . Bradley, Director, Equal Employment Opportunity

Mr C. McNeil, Assistant Director, Program Budgets

Mr A. Clarke, Director, Australian War Graves

Mr E. David, General Manager, Defence Service Homes

Mr K. Pearson, Director, Australian War Memorial

Mr J. Pearson, Assistant Secretary, Administration Branch, Australian War Memorial

Department of Finance -Mr K. Flanagan, Chief Finance Officer, Social Security Division

Mr Attridge, on behalf of the Minister, made an opening statement. The Chairman called on the following programs for consideration by the Committee. The expenditure proposed for these programs are contained in the

Particulars of Proposed Additional Expenditure documents:

1 2 2

Program 1 - Benefits Program 2 - Health Program 3 - War Graves Program 5 - Housing Assistance

The Committee received the following documents:

Department of Veterans' Affairs, Corporate Plan, Answers to Questions provided prior to the public hearing.

The Committee concluded its consideration of the proposed additional expenditure for the Department of Veterans' Affairs, subject to undertakings to provide additional information to the Committee.

5. DEPARTMENT OF THE ARTS, SPORT, THE ENVIRONMENT, TOURISM AND TERRITORIES - ACT ADMINISTRATION: In attendance, Mr A. Blunn, Secretary of the Department, accompanied by the following officers:

Department of the Arts, Sport, the Environment, Tourism, and Territories - ACT Administration

Mr B. Harris, Associate Secretary

Dr R . Madden, ACT Treasury

Mr G. Gaskill, Office of City Management

Mr J . Bissett, ACT Community and Health Service

Mr P. Guild, Office of Industry and Development

Mr P. Sadler, ACT Schools Authority

Ms J . Johnman, ACT Treasury

Ms H. Quiggin, ACT Treasury

Department of Finance -Mr T . Monson, Senior Finance Officer, Defence and Government Division

The Committee received the following document:

Revised Estimates of the ACT Administration 1988/89.

The Chairman made an opening statement. The Chairman called on the following programs for consideration by the Committee:

123

6 .

Program 1 Program 2 Program 3 Program 4 Program 5 Program 6 Program 7

Employment, Education and Training Social Infrastructure Law and Justice Industry and Development Physical Infrastructure Natural and Cultural Resources Corporate Management

The Committee concluded its consideration of the revised estimates of the ACT Administration, subject to

undertakings to provide additional information to the Committee.

ADJOURNMENT: The Committee adjourned at 4.11 p.m.

7. ATTENDANCE: Senators Black, Faulkner, Hill, MacGibbon, Maguire, Newman and Reid. An apology was received from Senator Puplick. Senator Michael Baume also attended.

Confirmed:

Senator John Black Chairman

124

THE SENATE

ESTIMATES COMMITTEE D

MINUTES OF PROCEEDINGS

NO. 3

WEDNESDAY, 3 MAY 1989

1. MEETING: The Committee met in deliberative session at 3.18 pm in Suite G45. Senator Black took the Chair.

2. CONFIRMATION OF MINUTES: The Minutes of the meetings held on 13 and 14 April 1989 (Nos 1 and 2) were confirmed.

3. REPORT OF THE COMMITTEE: The Committee considered the Chairman's draft Report to the Senate.

The Committee agreed to the draft Report, subject to the inclusion of a number of amendments.

4. ADJOURNMENT: The Committee adjourned at 3.26 pm.

5. ATTENDANCE: Senators Black, Maguire and Newman. Apologies were received from Senators Cooney, Hill, MacGibbon, Puplick and Reid.

Certified Correct:

Senator John Black Chairman

125

f

I

ESTIM ATES COMMITTEE D

H A N S A R D IN D E X TO ISSUES R A ISE D AT

TH E COMM ITTEE’S PUBLIC H E A R IN G S

May 1989

ESTIMATES COMMITTEE D

Issues raised during Committee hearings held on 13 April 1989 and 14 April 1989 (page references, Hansard, Estimates Committee D)

DEPARTMENT OF THE ARTS. SPORT. THE ENVIRONMENT. TOURISM AND TERRITORIES

Page

PROGRAM 1 - SPORT AND RECREATION 54

Sub-Program 1.4 - Sports Agencies 54

- Tobacco industry sponsorship - attitude of Australian sports Commission 54

- Evaluation of elite athletes for allocation of funds 54

- Adverse auditor's report on Australian Institute of Sport 54

- International drug testing laboratory proposal 55 - Morale impact on Australian Institute of Sport of current Senate inquiry 55

Program 3 - Antarctic 7

- Errors in tender for replacement of Antarctic vessel 7

- Early announcement of name of successful tenderer for Antarctic vessel 7-9

- Progress reports on new vessel 10

- Disposal of rubbish on Australian bases 10-11

- Shipyard chosen to build Antarctic vessel 11-12

- Negotiations with Seamen's Union on crew for vessel 12-13

18

- Purpose of Mr Moncur's visit to Finland in January 1988 13-14

- Offer of Polar Queen as replacement vessel 15

- Use of Hobart as principal supply area for USSR vessels 15-16

- Emergency evacuation procedures in Antarctic USSR assistance 16

- Refuelling facilities for Russian ships in Hobart 16-17 - Air capacity for Australian Antarctic bases - Capacity to deal with oil spills in Antarctic 17-18

- Staff profile of the Antarctic divisions 18

- Lady Franklin's non-compliance with Safety of Life at Sea code 1974 19 ^

- Lady Franklin's helicopter carrying capacity 19-20 - Adequacy of radio communications on the Lady Franklin 20-21

- Safety standards on the Lady Franklin 21-22

- Sledges for Antarctica 24-26

- Assets register and recording processes 27

129

Saving of $100,000 in plant and equipment 27

Sub-program 3.4 - Management and Support 27

- Separation payments to former Director of the Antarctic Division 27-28

Database on environmental impact of tourism in the Antarctic 28

PROGRAM 6 - FILM AND TELEVISION 28

Sub-program 6.3 - Australian Film, Television and Radio School 28

- Comments on new building 28-29

Increase in operating costs of new building 29 Value of facilities to corporate sector 29 Value of facilities to free-lance sector 29-30 - Screen-writing courses 30

- Cost of collecting fees 30-31

Program 7 - Cultural Heritage and Information 31

- Differences between DASETT and Department of Finance on recent report 31-32

Towards a draft statement on Commonwealth policy on museums 33

- Policy on Maritime Museum 33

- Funding of Maritime Museum 33

Cost to Canberra community of institutions with national focus 33-34

Sub-Program 7.3 - Australian National Gallery 36

- Proposed resignation of Director 36

Director's observations on Department of Finance report 'What Price Heritage?' 37

Sub-Program 7.4 - Australian National Maritime Museum 34

- Staffing 34-35

- Role 35

- Funding for United States gallery 35-36

- Legal arrangements 35-36

- Use of volunteers 36

- Current savings 36

- Estimated date of opening 36

Sub-Program 7.5 - National Film and Sound Archive 38

- Staffing re-organisation 38-39

- Storage facilities 39

- Fund-raising activities 39

- Response to report Time on our Hands 39-40

- Cataloguing backlog 40

- Future acquisitions 40

Sub-Program 7.6 - National Library of Australia 40

130

- Apology from director 40

- Re-evaluation of assets 40-41

- Staffing levels 41

- Towards a collection development policy 41

- Ranking of countries for source acquisition 41-42

- Percentage of the budget spent on purchase of overseas material 42

- Influence of exchange rate fluctuations or budgeting 42

Sub-Program 7.7 - National Museum of Australia 42

- Staffing 42-43

- Formation of a Friends of the Museum body 43

- Philosophical position of the Museum 43

- Need for a statement on national institutions 43 - Current state of the collection 43

- Collection of Australian women's needlework 43-44 - Collection of poker machines 44

- Collection of material from ethnic communities 44

Sub-Program 7.8 - National Science & Technology Centre 44

- Delay in opening Centre shop 44

- Number of visitors 44

- Number of organised school tours 44

- Assistance from Department of Employment, Education and Training 45

- Tour of Dinosaurs Alive exhibition 45

PROGRAM 8 - CONSERVATION 46

Sub-Program 8.1 - Policy and Program Support 51

- Impact of recent Queensland cyclones 51

- Permit for and levy on floating hotel 51

Sub-Program 8.4 - Australian National Parks & Wildlife 46 Service

- State kangaroo quotas 46-48

- Responsibility for Darwin/Jabiru powerline 49 - Park fees at Kakadu and Uluru 49-50

- Proposed review of park boundaries 50

- CSIRO report on Stage 3 of park 50

- Feral animals in Northern Territory parks 50

- Environmental impact statement on Coronation HillSO

PROGRAM 9 - NATURAL HERITAGE & ENVIRONMENT PROTECTION 45

Sub-Program 9.1 - Policy and program support 51

- Use to which additional estimate is to be put 51

- Need to educate the bureaucracy on National Conservation Strategy of Australia 51

Sub-Program 9.7 - Environmental Quality Protection 52

131

- Negotiations on Wesley Vale 52

Sub-Program 9.8 - Australian Heritage Commission 52

Heritage nomination for Brisbane Community Arts Centre 52

Impact of capital gains taxes and fringe benefits taxes on work of National Trust movement 52

- Current operation of the National Estates grants program 53

- Delay in producing the annual report of the Heritage Commission 53

PROGRAM 10 - CORPORATE SERVICES 55

Sub-Program 10.2 - Departmental Support Services 55

- Unanticipated separation payments 55

- Future responsibility for National Media Liaison Service ??

DEPARTMENT OF DEFENCE

PROGRAM 1 - CURRENT DEFENCE FORCES

Sub-Program 1.1 - ADF Command 102

- Reduction in real growth in five year defence program 102-03

- Cost of Namibia commitment 103-05

- Projected involvement in Kampuchea 105-06

Allowances for troops serving in Namibia 106 - Progress of work value study 106-07

- Progress of reviews on transport and supply for rapid deployment 107

- Progress of Survey Corps mapping study 107

- Future of Chinook helicopters at Amberley 107-08

126

Sub-Program 1.2 - Navy

1.2.1 Combat Forces 108

- Supply to Parliament of information on standards of operation, readiness capability and training 108 - Patrol boat operations 109

Progress on mine countermeasure force 109

- Employment of amphibious craft 109-10

- Future of frigates 110

- Wastage of marine engineers 110

- Deployment of h m a s Torrens 110

Delayed delivery of Sea Hawks 110

- 132 -

1.2.3 Support 111

Sale of Cockatoo Island dockyard 111

113-4

Development of submarine overhaul facilities in Western Australia 111-12

Refitting of Ovens and Orion submarines 112-13 Refitting of Onslow submarine 113

Refitting of Oberon submarine 113

Sub-program 1.3 Army 114

1.3.1 Combat Forces - Negotiations on the LAV 25 114-15

- Supply of SLR rifle butts 115

- Supply of entrenching tools 115

- Theft of ammunition, arms and explosives 115-16

- Supply of jungle greens 116-17

- Supply of travel bags 117

- Supply of army belts 117-18

- Supply of women's summer dresses 118

- Supply of flying suits for Army pilot trainees 118 - Supply of equipment to the Regular Army Reserve 118-19

1.3.5 Support 119

- Number of Army newspaper printed 119-20

- Injuries to servicewomen 120

- Loss rate of servicewomen from RMC and ADFA due to injuries 121

- Servicewomen recommended for operations for injuries caused by training 121

Sub-program 1.4 Airforce 121

- Contracts with national Safety Council 121-23

- Use of NSC facilities by services 122

- Security checks on NSC employees on Airforce bases 123-24

- Contract for leasing new VIP fleet 124-25

- Tender price for Mystere and BAC111 125-26

- Fate of Chinook helicopters 126

- Transfer of Black Hawks to Army 126

PROGRAM 2 - DEFENCE DEVELOPMENT

Sub-program 2.1 - Procurement of Capital Development 57

- Helicopter procurement delay 59

- Reductions in expenditure on FA18 and PC9 59

- Operating cost of Hornet 59

- Cost of Fill avionics update program 60

- AEWC program costs 60

- Replacement of light armoured fighting vehicles 60 - Ml13 project 60-61

- Australian content of project Jindalee 61

- Lease of A4K Skyhawks from New Zealand 61-62

- Williamstown frigate program 62-63

- Acquisition of a replenishment ship from the Royal Navy 63

133

Sub-program 2.3 - Procurement of Capital Facilities 63

- Accommodation at Townsville and Puckapunyal 63 - RAAF dog compound Townsville 64-65

- Stage 2 of RAAF base, Tindal 65

- Progress on HMAS Coonawarra 66

- Soldiers' Chapel at Kapooka 66

PROGRAM 4 - DEFENCE SUPPORT

Sub-program 4.1 - Natural Disasters and Civil Defence 66

- Funding of Natural Disasters Organisation 66-67

- Use of National Safety Council of Victoria 67-68

Sub-program 4.2 - Defence Housing 68

- Stock of four and three bedroom houses 68

- Repayment of defence housing loans 68-69

Sub-program 4.4 - Defence Production

- Retrenchments resulting from the rationalisation of the Office of Defence Production 69-70

71

- Appointment of Managing Director of Australian Defence Industries 70-71

- Staff entitlements in Australian Defence Industries - Maternity leave 71-72

4.4.2 Ammunition and Explosives 72

- Role and staffing of Bendigo Commonwealth Ordinance factory 72-73

- Production of the 105 millimetre Hamel gun 79-80

4.4.4 General Production - Refitting of Oberon class submarines 80

4.4.5 Budget and Support 81

- Australian Federal Police investigations of fraud in Defence Department contracts 81

Sub-program 4.5 - Defence Science and Technology 82

- Assessment of sonar performance 82

101-02 109

- Sonar buoys 82-83

- Employment of skilled staff in defence laboratories 83

4.5.1 Surveillances Research 85

- Reason for increase in salary expenditure in defence laboratories

PROGRAM 5 - DEFENCE CORPORATE SERVICES

134

Sub-program 5.3 - Strategic Planning 85

- Annual cost of the Strategic and International Policy and Force Development and Analysis programs 85

101

Sub-program 5.4 - Logistics

- Tenders and contracts 86

- Method of accounts payment 88

DEPARTMENT OF VETERANS' AFFAIRS

PROGRAM 1 - BENEFITS PROGRAM 129

PROGRAM 2 - HEALTH PROGRAM 129

Sub-program 2.2 - DVA Health care services sub-program 129

- Assistance to deformed children of Vietnam veterans 129-30

- Transfer of Hobart Pathology Laboratory salaries and operating expenses to the Repatriation General Hospital Trust account 130

- Integration of the Repatriation General Hospital into the State System 130-35

- The free limb scheme 135-6

- Eligible patients refused admission to repatriation hospitals throughout Australia 136

PROGRAM 3 - WAR GRAVES PROGRAM 136

Sub-program 3.1 - War Graves - Care and Maintenance 136

- Lack of signs in Belgium notifying presence of Australian war dead 136

- Closure to public of Australian memorial at Villiers-Bretonneux 137

- Removal of graves which cannot be maintained 137

- War graves in Rookwood cemetery 137

- Care of Tasmanian war graves 137-8

- Care of war graves throughout Australia 138

- Role of advocacy branch in the Department of Veterans' Affairs 138-9

PROGRAM 5 - HOUSING ASSISTANCE PROGRAM 139

- Abolition of defence home loans scheme 139

- Remuneration paid for overseeing sale of defence service home loans portfolio to Westpac 139-40 - FBT and FID establishment and registration fees since portfolio transferred to Westpac 140 - Criteria for obtaining a second defence service

home loan 141

135

ACT ADMINISTRATION

Program

PROGRAM

1 - Employment, Education and Training 142

Nomenclature of 'Revised Budget Estimates' 142 Sources of increased revenue 142-43

Capital devoled to renewal of infrastructure 143 Amount owed to the Commonwealth 143

Negotiations with the Commonwealth on costs 144 Date of the introduction of a separate ACT accounting system 144

Grant negotiations with the Commonwealth 144-45 Timing of review of ACT grant 145

Debt transfer arrangements 145-48

ACT superannuation liabilities 147

Outstanding financial issues 147

Future ACT police force contract 148-49

Responsibility for magistrates court 149

Transfer of major services 150

Supplementary payments to authorities for loss of revenue resulting from weekly funding 150 Transfer of further funds to Comcare 150

Aid to blind tertiary students in the ACT 150-51 The position of the Canberra College of Advanced Education and the Canberra Institute of the Arts upon self-government 151

Cost of transferring the Australian National University to the ACT 151-52

Funding of nurse education 151-52

Termination payments by ACT Institute of Technical and Further Education 152

Improvements in auditing arrangements in ACT Schools Authority 152

Employment of staff by school boards 153

Salary increases in education 153

2 - SOCIAL INFRASTRUCTURE 153

Increases in hospital expenditure 153

Delays in tendering for the Northside and Tuggeranong community centres 153

Review of the Kearney report 153

Appointment of review committee 153-54

Unforeseen termination payments 154

Overdrawn bank accounts 154

Jindalee trust account errors 154

Improvements to accounting system 154-55

Numbers of child-care places needed in the ACT 155 Policy on entitlement to free child-care 155 Role of the ACT Administration in relation to child-care 155

Location of child-care facility within the Parliamentary Triangle 156-58

Role of the Heritage Commission in examining the design of the Parliamentary Triangle

136

child-care facility 158

PROGRAM 3 - INDUSTRY AND DEVELOPMENT 158

- Charges by the Australian Construction services for services provided to the ACT 159

- Supervision of the construction of the Silverton Centre 159

- Supervision of construction of new buildings by the ACT Administration 159

- Work on the casino development 159

- Responsibility for the casino project 159-60

- Administration of the casino project 160

PROGRAM 5 - PHYSICAL INFRASTRUCTURE 160

- Additional staff and administrative costs in ACTION 160-61

- Bus purchase process 161

- Additional cost of Motor Vehicle Registry 161

- Improved payment arrangements at Motor Vehicle Registry 161

- Role of Motor Registry in reducing road accidents 162

- Social implications of compulsory vehicle testing 162

- Income received for recoverable works - budget error 162-63

- Number of houses found to contain asbestos 163

- Criteria for examining houses for asbestos 163

- Funding for asbestos removal 164-65

- Estimated time of completion of asbestos removal from Canberra houses 164

- Legislative provisions for asbestos removal 164-65 - Delays in auditing ACT trust accounts - ACT Transport Authority 165

- Deficiencies in financial statements on ACT trust accounts 165

- Accounts of Electricity Authority 165-66

- Delays in collection of parking fees and penalties 166

PROGRAM 6 - NATURAL AND CULTURAL RESOURCES 166

- Recoverable works expenditure 166-67

- Payment of water rates 167

- Expenditure on netball facilities 167

PROGRAM 7 - CORPORATE MANAGEMENT 167

- Electoral Commission costs I67

- Voluntary retirement funding 167

- Industrial lease fees in West Belconnen 167

- Progress on the national capital plan 168

- Security of computer information · 168

- Income lost by Gaming and Liquor Authority's failure to invest 168-89

137

ESTIM ATES COMMITTEE E

R EPO R T

May 1989

Membership of Estimates Committee E

Senator Senator Senator Senator Senator Senator Senator Senator Senator Senator Senator Senator Senator

Aulich (Chairman) Beahan 1 1 1 - 4 - 9/14 Bolkus 3 Foreman 2 > 5 >13 Newman 9 Short 7 Tambling Morris 6,14,16

Parer 8 Durack 10 >15 Maguire 10,11,13,17 Devlin 12 Michael Baume 15

1 Discharged on 28 October 1987. 2 Appointed on 28 October 1987. 3 Discharged on 18 March 1988. 4 Reappointed on 18 March 1988. 5 Discharged for the period 18 March 1988 to 17 May 1988. 6 Appointed for the period 18 March 1988 to 17 May 1988. 7 Discharged for 27 April 1988 only. 8 Appointed for 27 April 1988 only. 9 Discharged on 29 September 1988. 10 Appointed on 29 September 1988. 11 Discharged for 21 October 1988 only. 12 Appointed for 21 October 1988 only. 13 Discharged on 9 March 1989. 14 Appointed on 9 March 1989. 15 Senator Michael Baume replaced Senator Durack during the

consideration of the estimates of the Department of Aboriginal Affairs after the motion was put on 11 April 1989 . 16 Discharged on 8 May 1989. 17 Appointed on 8 May 1989.

140

ESTIMATES COMMITTEE E

REPORT TO THE SENATE

Estimates Committee E has the honour to present its Report to the Senate.

INTRODUCTION

On 9 March 1989 the Senate referred to the Committee Particulars of Proposed Additional Expenditure for the service of the year ending on 30 June 1989 (being Appropriation Bill [No. 3]

1988/89), and Particulars of Certain Proposed Additional Expenditure in respect of the year ending on 30 June 1989 (being Appropriation Bill [No. 4] 1988/89) for the following Departments:

• Immigration, Local Government and Ethnic Affairs

• Administrative Services • Attorney-General's • Aboriginal Affairs

The Committee has considered the particulars of proposed

additional expenditure and actual expenditure for each of the above Departments, making use of the Departmental Explanatory Notes. The Committee has also received explanations from the

Minister for Immigration, Local Government and Ethnic Affairs (Senator the Honourable Robert Ray), the Minister for Justice

(Senator the Honourable Michael Tate), officers from the Departments and authorities concerned and from the Australian

Audit Office.

141

Copies of the Minutes of Proceedings and Hansard reports of the

evidence taken by the Committee are tabled for the information of

the Senate in connection with its consideration of Appropriation

Bills (Nos 3 and 4) 1988/89.

Written answers to questions taken on notice will also be tabled in the Senate in a volume entitled Additional Information Provided During Estimates Committee E's Examination of Proposed

Additional Expenditure for 1988-89. This volume also contains

some written answers to questions arising from the Committee Estimates hearings in October 1988.

The Committee draws the attention of the Senate to several

matters arising from its consideration of the Estimates. A much larger number of issues was raised by the Committee during the

course of its hearings which were held over four days. For the information of Senators a Hansard index to all of these issues is

attached to this Report.

DEPARTMENT OF IMMIGRATION, LOCAL GOVERNMENT AND ETHNIC AFFAIRS

Immigration Review Fee

In September 1987 the Department of Immigration and Ethnic Affairs started charging a fee of $240 where an application was lodged for review by an Immigration Review panel of an adverse immigration decision.

As explained in this Committee's report of November 1988, a legislative basis for the fee was included in the Migration Amendment Bill 1987. The Bill proposed amendments that would have operated retrospectively and which were deleted by the Senate prior to the passage of the Bill. Notwithstanding the deletion of

the clause the Department continued to collect the fee acting on advice that charging the fee was indeed legal.

142

The Minister for Immigration, Local Government and Ethnic

Affairs, Senator the Hon. Robert Ray, provided copies of various

pieces of legal advice provided to the Department between 6 November 1987 and 1 December 1988.

These show that the validity of the fee was the subject of

considerable dispute and that even those opinions supporting the fee were highly gualified. In February 1988 the then Secretary of

the Attorney-General's Department, Mr P. Brazil, advised the

Secretary of the Department of Immigration and Ethnic Affairs

that:

The matter has been further considered [by the Attorney-General's Department] ... and the conclusion reached that the better view of the matter is that the imposition of the fee

without legislative authority is unlawful.

Advice to the Department from Mr Michael Black QC, on 8 April 1988, was that:

... the overall prospects of a finding that payment of the fee may lawfully be required are reasonable.

However Mr Black went on to note:

... the matter is not free from doubt. For

this reason it might be thought that the

introduction of a legislative basis for the fee is justified.

Mr Black's subsequent opinion of 24 October 1988 on which the

Minister relied has not been provided to the Committee.

In the Committee's view the Department was unwise to rely on legal advice giving qualified support to the fee where there was

a clear conflict among the advices provided to it and

particularly where the Attorney-General's Department had advised

143

that a legislative basis for the fee was desirable. A preferable

course of action would have been to suspend collection of the fee

in early 1988 pending the provision of a secure legislative basis

for it through regulation.

The Committee notes that after the Department received an opinion

from the Attorney-General's Department which convinced it that it was no longer entitled to rely on the opinion of Mr Black, the

Minister for Immigration, Local Government and Ethnic Affairs

moved quickly to resolve the issue. After receipt of a report from the Ombudsman on the same subject the fee was abandoned on 3 March 1989. The Minister has made it clear that all those who paid the fee between 12 December 1988 and 3 March 1989 will be

reimbursed and that their review will proceed.

DEPARTMENT OF ADMINISTRATIVE SERVICES

Royal Commission into Aboriginal Deaths in Custody

The Committee draws the Senate's attention to the basis for payment of Commissioners. A new Commissioner - Commissioner Wyvill - has recently been appointed from the Brisbane Bar. He will be paid a per diem rate of $1850 plus travelling allowance

where applicable. In excess of $300 000 is being sought in these appropriations to meet the costs of Commissioner Wyvill. Commissioner Wyvill's per diem rate is considerably in excess

of those being paid to the other Commissioners, which range from $750 to $1000. All Commissioners may claim their fees for seven days per week.

The Committee also notes evidence given on page E38 of the Committee's Hansard that remuneration of Counsel assisting the Commission in some cases exceeds $200 000 when calculated on an annual basis.

144

The Committee questions whether the appointment of an additional Commissioner with a legal background was justified. The interim

report of the Royal Commission has demonstrated that deaths in custody are symptoms of a much broader social and economic

malaise. Examination of those broader issues should take place outside a narrow legal framework.

The Committee notes that while the cost of the Royal Commission

is met by the Department of Administrative Services, the

negotiation of terms and conditions of Commissioners and Counsel

is the responsibility of the Attorney-General's Department.

The Committee recommends that in future Commissioners be retained on a contract with an agreed salary rather than be eligible for a

per diem rate.

ATTORNEY-GENERAL'S DEPARTMENT

National Companies and Securities Commission

The Committee is concerned that the National Companies and Securities Commission (NCSC) was not represented at the hearings of the Committee. The Committee had given advance notice to the

Department that questions would be directed to the NCSC.

The NCSC was seeking additional appropriations associated with its inquiries into Ariadne Australia Ltd and Rothwell's Ltd. The latter inquiry was a matter of considerable public concern

particularly as the NCSC had not, at the time of the hearings,

published its interim report on Rothwell's.

The NCSC is an independent body which operates with a high degree of autonomy from the Attorney-General's Department. In these

circumstances this Committee should not have to rely on

explanations from Departmental officers who can not be in a position to provide detailed explanations of the work of the

NCSC.

145

Location of Principal Registries

A proposal is currently being considered to move the Principal

Registry of the Family Court of Australia from Sydney to

Melbourne. The Chief Justice of the Court is based in Melbourne.

Similarly the Registry of the Administrative Appeals Tribunal (AAT) has been moved from Canberra to Brisbane. The President of the AAT is based in Brisbane.

The relocation of the AAT and the proposed relocation of the Family Court's Principal Registry have both been justified on grounds of efficiency. However the Committee is concerned that a pattern might emerge where the administrations of Federal courts

and tribunals are relocated, with all the ensuing cost and disruption, to meet the requirements of the head of a court or tribunal at any particular time.

The Committee believes that the Registry and other administrative support for courts and tribunals should have a fixed location.

DEPARTMENT OF ABORIGINAL AFFAIRS

Performance Indicators

Integral to the success of Program Budgeting and the Financial Management Improvement Program is the development of effective performance indicators.

The Department of Aboriginal Affairs acknowledges that it is having difficulties in this area. The Explanatory Notes identify several reasons for this, particularly the broad policy objective

of self-determination for Aboriginal and Torres Strait Islanders and the community-based nature of many Departmental programs.

146

The Committee recognises that problems with the development of

performance indicators are not unique to the Department of Aboriginal Affairs. However, particularly in view of the recent

Special Audit Report on the Department, this Committee is concerned that so little progress is being made in this area.

Many of the comments of the Special Audit Report revealed a

casual approach by the Department to defining the objectives of programs and to the administration of particular projects within programs.

The Committee endorses the comment of the Audit Office:

... the aims and objectives of some projects were defined too broadly for assessment ... Statistics which would be required to enable an objective assessment to be made were not

provided and performance measures used in the assessment of some projects needed to be reviewed ...■*■

The Committee recognises that Department is seeking to remedy these problems and looks forward to seeing the results of its

efforts at the Committee's next hearings.

Public Awareness Program

The 1988-89 Budget allocated a sum of $1.9m to a campaign "To address the question of the public perception of Aboriginal people in [Australia]". At its recent hearings the Committee was told that the allocation to the program had been reduced to

$1.6m. This allocation is in addition to a commitment of $754 000

to an ongoing public awareness program.

The Committee was advised that neither the consultant, "... to assist in a broad strategy", nor a research officer for whom provision have been made have been appointed at this late stage

in the financial year. Despite this, expenditure and commitments 1

1. Special Audit Report, The Aboriginal Development Commission and the Department of Aboriginal Affairs, Canberra, March 1989, p

147

from the program are already $757 000 and the Department is confident that the program will utilise its full expenditure in

this financial year. The Department stated in evidence that "The rest of the program is not contingent on hiring those two

consultants".2

The Committee questions whether consultants hired at this late stage in the financial year can make any worthwhile contribution

to the expenditure of the unallocated portion of the

appropriation for the program - $733 000.

Unacquitted Grants

In the Special Audit Report it was noted that a very significant number of grants by the Department remain unacquitted. According to the Report (p. 105), 783 grants totalling in excess of $67m

remain unacquitted.

The conditions for acquittal are not onerous. The recipient is

required to produce within six months of the end of the financial year an externally audited financial statement plus a certificate from the recipient's managing body stating that the recipient has complied with the grant conditions.

The Committee notes that the number of unacquitted grants has been reduced significantly in the past 12 months. However it remains a matter of concern that grant conditions are not met in such a large number of cases. Consideration should be given to denying funding to organisations which fail to comply with grant

conditions. This should be considered with regard to funding both by the Department and the ADC.

The ADC should also take the initiative in ensuring that

conditions applying to grants are expressed in "plain English", comprehensible to and understood by the recipient.

2. Evidence, p. E126. 148

ABORIGINAL DEVELOPMENT COMMISSION

General Comments

During the Committee's recent hearings the ADC took approximately

80 questions on notice (compared with 30 by the Department).

Questions taken on notice prevent the Committee from pursuing

issues through further questioning and can effectively close off discussion of a subject. There are legitimate reasons for taking

a question on notice, for example, the complexity or obscurity of the question. The Committee is concerned, however, that in the

case of the ADC the number of questions taken on notice was excessive and that the ADC should have been so represented that

more questions could have been answered immediately.

The ADC's response to the special report of the Auditor General is also a cause for some concern. To date the following papers

have been produced:

• the Special Audit Report (March 1989; • the ADC Response (April 1989); ■ two subsequent letters from the Audit

Office to this Committee commenting on the ADC's response (April 1989); and • a comment by the Attorney-General's

Department on the ADC Response (May 1989)

Having considered all these documents, this Committee is of the view that the Audit Office's special report raises very serious and legitimate questions with regard to a number of ADC-funded

projects.

149

The Committee is concerned that the ADC's attitude to the Special

Audit has been unco-operative throughout. The ADC retained

Counsel to deal with the Audit Office. The Attorney-General's Department has rejected some of the grounds on which the ADC

sought to justify Counsel's appointment.

The Audit Office described the ADC's approach as characterised

by:

a relative lack of co-operation not seen before from an official body ...3

The Response prepared by the ADC also seems directed at

confronting the Audit Office rather than giving serious consideration to its findings. The Response, for example,

frequently refers to Audit's rejection of the legal opinion of the Attorney-General's Department in interpreting the Aboriginal

Development Commission Act 1980. The letter from the

Attorney-General's Department to the Audit Office of 1 May 1989 clearly finds that the Audit Office's interpretation of the

legislation was consistent with the advice of the

Attorney-General's Department in the vast majority of examples considered.

The Committee is concerned that the examination of the Special Audit Report is becoming lost in a series of unproductive and pedantic arguments over interpretation.

The Audit Office's criticisms of such projects as the Yeperenye

Shopping Centre in Alice Springs, Alice Travellers' Village and the Woden Town Club raise legitimate questions as to whether the projects genuinely enabled Aboriginals to engage in business

enterprises. Similarly the Audit Office questions the efficiency of the ADC's assessment of the viability of proposals and the

capacity of the people involved. These issues are not properly addressed by the ADC's response.

3. Special Audit Report, The Aboriginal Development Commission and the Department of Aboriginal Affairs, Canberra, March 1989, p. 2.

- 150 -

The problems experienced with project evaluation and monitoring which are at the core of the Audit Office Report are of

continuing relevance to the ADC and must also be considered in

the context of the proposed Aboriginal and Torres Strait Islander Commission.

Mr Michael Adams PC

The ADC retained Mr Adams at a cost of some $125 000 to assist it with the Special Audit. The ADC has justified its action on a

number of grounds:

Due to the serious nature of the allegations and the complexities of the ADC Act* ...

and

[concern] that the solicitor/client

relationship between the Attorney-General and Auditor-General could result in a conflict of interest.5

In its letter of 1 May 1989 the Attorney-General's Department

noted that the second of those considerations is not relevant since the Auditor-General has no interest adverse to that of the ADC. The Attorney-General's Department in fact noted that "in

relation to its powers under the Act the ADC should always seek advice from this Department". The Committee strongly endorses the

view of the Attorney-General's Department.

In answer to a guestion from this Committee the ADC acknowledged that Mr Adams' practice was principally in the area of criminal law, not in the interpretation of the statutory powers of

Commonwealth authorities.

4. Ά Response to the Auditor-General's Special Audit Report', Aboriginal Development Commission, Canberra, April 1989, p. 27. 5. ibid. 151

The committee is concerned that the ADC should have relied on

private legal advice rather than that available within the

Attorney-General's Department. The cost of the advice - $125 000

- would have been better "spent where it is really needed - in

the economic and social development of Aboriginals".

As a general comment the Committee notes that the resort to

external private legal advice by Government Departments and other

public authorities should be avoided where the same service is available from the Attorney-General's Department. A "QC-led

recovery" funded by public revenue is not desirable.

ACKNOWLEDGMENTS

The Committee expresses its appreciation of the assistance given by the Minister for Immigration, Local Government and Ethnic Affairs, Senator the Honourable Robert Ray, the Minister for Justice, Senator the Honourable Michael Tate, and the officers of the various Departments and authorities who appeared before it. The Committee also acknowledges the assistance of the officials of the Australian Audit Office who appeared before it to give evidence on the special audit of the Department of Aboriginal Affairs and the Aboriginal Development Commission.

Terry Aulich May 1989

Chairman

152

ESTIMATES COMMITTEE E

RESERVATION BY SENATORS M. BAUME, SHORT AND TAMBLING

153

- . T

SENATE ESTIMATES COMMITTEE E

RESERVATION BY SENATORS MICHAEL BAUME, SHORT AND TAMBLING.

We endorse the comments contained in the Report of Estimates

Committee E. However we believe that there are significant

matters arising from the hearings of the Committee which have not been discussed or have been given inadequate emphasis.

1. Membership of Committee

We are concerned at the manipulation of the membership of the Committee. Senator J. Morris, who was a member throughout the Committee's hearings, was replaced at very short notice by another Government member prior to consideration of the

Committee's Report.

Estimates Committee E has been considering very complex and

contentious questions with regard to the Aboriginal Affairs portfolio. The newly-appointed member has not heard the evidence

yet his presence has ensured a Government majority on the Committee and therefore a Report which ignores many significant

issues. We therefore are compelled to attach this reservation to

the Committee's Report alerting the Senate to those matters

ignored by the majority Report.

2. Staffing and Financial Constraints

Both the ADC and, to a lesser extent, the DAA, have been prevented from acting efficiently and effectively, largely because of externally imposed constraints on staff numbers and

portfolio funding.

155

2.1 This has included the imposition of staff reductions on

both agencies in the unrealistic belief that ATSIC would

come into operation on 1 January, 1989.

2.2 Those staff reductions were made without proper regard for

the effects this would have on the ability of agencies to

function, the effect on clients, or ability to deliver

services to them.

2.3 These problems have been compounded by the imposition on the ADC of cash limited budgeting which has had the effect

of preventing it from using monies, even its own internal revenues, to overcome the problems arising from staff

reductions by engaging consultants.

2.4 These deleterious effects have been made clear by staff of both the ADC and DAA who have informed Estimates

Committee E that neither agency has the resources necessary to function adequately or as the Parliament would expect.

3. Loss of Experienced Staff

With regard to the ADC, and to a lesser extent, the DAA, the loss

of experienced staff has resulted in the deterioration of:

* Administrative standards * Available management and expertise

* Ability to perform adequately

3.1 It is inevitable that with the loss of experienced staff

and expertise, there has been a decline in the standards of

administration and management.

156

3 . 2 In both the ADC and some extent in the DAA this is

demonstrated by an incapacity properly to assess or monitor

proposals and funding, an inability adequately to

administer programs, or to ensure the most effective use of public monies to reduce the level of Aboriginal

disadvantage.

3.3 Although the DAA is less affected than the ADC by imposed

constraints, it too has suffered from the actions and

decisions of the Minister. Its Regional Office in Alice Springs has lost about half of its 32 staff over the last 12 months and losses or turnover in other offices have also been severe.

3.4 Little wonder that the Department has yet to obtain

acquittal of some $68 million in grant funds, that it has

yet to develop and apply adequate Program and sub-program indicators, or that its general administrative standards

are, to use the Prime Ministers' words, "of an unacceptable standard".

3.5 The new Executive Management of the ADC is largely

inexperienced in public administration at that level, while at Region or State Offices it struggles on with

diminishing, inadequate resources.

3.6 Within the last three months, the ADC in Western Australia has seen the resignation of four senior officers from

critical operational areas where their experience can not be easily or quickly replaced. A similar number has

resigned from the Commission's New South Wales Offices.

3.7 It is important to note that the Commission's best qualified, most experienced officers are the first to leave since they are the people who find it easiest to secure

alternate employment.

157

J

3.8 Consequently the ADC has been unable adequately to monitor

the projects it funds, or ensure that they receive the

initial support or after-care required to secure enterprise success.

3.9 Similarly the ADC has been unable adequately to address the problem of arrears owed by borrowers, particularly in the

area of business loans.

4. Operations of the ADC Board

The problems evident in the ADC have been compounded by the less than responsible Board decisions which have been characterised by:

* ignoring and acting contrary to staff advice, including legal advice;

* decisions taken contrary to published policy and guidelines without justification or reasons being given;

* resolutions passed without assessed written submissions or on the basis of inadequate submissions not prepared by ADC staff;

* approving and seeking the unlawful use of public monies;

* dealing in situations where there has been obvious conflict of interest; and

* acting in a manner which has resulted in the need to refer matters to the Senate Committee of Privileges.

158

4 . 1 This low standard of conduct does not arise from any defect

in the ADC Act but rather from intentionally ignoring the

provisions and spirit of that Act and the responsibility which this imposes on Commissioners.

4.2 Evidence of this laissez faire attitude is provided by many

of the decisions taken by the ADC Board Members. For

example they did not lodge statements of pecuniary interest

until after the matter had been raised by Expenditure Committee E in October, 1988 - despite repeated earlier

reminders by ADC staff over a 6 month period.

4.3 From their very first meeting in May 1988, the present Board embarked on the making of unwise or improper

decisions, among which are the following:

* Reducing the Economic Independence Program by $7 million and allocating those monies to

Social Advancement, contrary to ADC staff advice and Government policy on the use of AEDP funds provided to the ADC specifically to

promote Aboriginal employment.

* Disposal of Nardoola property in the form of an unconditional gift to the Moree Local

Aboriginal Land Council, contrary to ADC staff advice, contrary to s .24 of the ADC Act, and based on a resolution taken without a written submission or professional assessment of the

proposal.

159

* The allocation of $800 000 for consultations on an Aboriginal treaty in a manner contrary to

advice provided by the Commission's own

Principal Legal Officer, when it was clear that

Tranby was no more than a front for an informal body, the National Coalition of Aboriginal

Organisations (NCAO), which was not broadly representative of Aboriginals but which had been selected by those ADC Board Members who

were prominent in the NCAO.

* The engagement of Mr Adams QC, a criminal

lawyer with no experience in audit matters, to advise on those matters and preside

over/respond to the Exit Interview with

Officers of the Australian Audit Office

undertaking a Special Audit of the ADC. The

cost of advisings provided by Mr Adams in this

regard is so far estimated at $125 000 and may well go higher, even though the Attorney

Generals' Department has indicated that advice on the same issues could have been provided by it for $3 500.

* Transfer of the Oasis Hotel in Walgett to an Aboriginal organisation, Barwon, contrary to ADC staff advice and apparently contrary to s.24 of the ADC Act. rather than disposal by

sale which would have enabled the Commission to recover some of its outlay of over $1 million of public monies on purchase and operation of the hotel.

1 6 0

5. ADC Board Meeting, 27 January 1989

5.1 The Audit Office has questioned whether the Board's meeting

of 27 January 1989, which considered the ADC Response to

the Audit Office's Special Audit, was in fact a legally constituted meeting.

5.2 It would appear that the Chairman of the ADC Board had refused to call this meeting, arguing that the scheduled

meeting in early February 1989 could discharge all

outstanding business. The additional $20 000 cost of an

extra meeting could not be justified.

5.3 Preliminary preparations for the meeting went ahead despite the Chairman's views and without her authority.

5.4 Mrs McPherson indicated on 25 January 1989 that she would be absent from Canberra for personal reasons and a notice

of meeting was issued on 26 January 1989 on the authority

of the Deputy Chairman.

5.5 Technically the meeting may have been legally constituted.

However the whole process illustrates the Board's mode of

operation, particularly:

* its desire to circumvent and isolate its

Chairman; * its lack of respect for proper procedures; and * its willingness to incur unnecessary expense.

5.6 The Audit Office has, with some justification, maintained

its position that the legality of the meeting was, at the

very least, questionable.

161

Conclusion 6 .

6.1 We remain concerned that the very serious issues raised at this Committee's hearings in October 1988 remain

unresolved. Indeed the Special Audit Report has given

further ground for concern.

Michael Baume Senator for New South Wales

Jim Short Senator for Victoria

Grant Tambling Senator for the

Northern Territory

162

ESTIM ATES COMM ITTEE E

M INUTES OF PR O C EED IN G S

M ay 1989

I

THE SENATE

TUESDAY, 11 APRIL 1989

ESTIMATES COMMITTEE E

MINUTES OF PROCEEDINGS

NO. 22

1 . MEETING: The Committee met at 6.03 pm in Senate Committee Room No. 14. The Chairman, Senator Aulich, took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE FOR 1988-89 DEPARTMENT OF IMMIGRATION, LOCAL GOVERNMENT AND ETHNIC AFFAIRS.

3. IN ATTENDANCE: Senator the Honourable Robert Ray, Minister for Immigration, Local Government and Ethnic Affairs, accompanied by the following officers:

Department of Immigration, Local Government and Ethnic Affairs Mr A.C. Harris, Deputy Secretary Mr W. Gibbons, First Assistant Secretary, Development

and Systems Division Mr M. Lynch, First Assistant Secretary, Migration and Ethnic Affairs Policy Division Ms P. McCahey, Fist Assistant Secretary, Corporate

Management Division Mr M. Sullivan, First Assistant Secretary, Operations Management Division Mr D. Wheen, First Assistant Secretary, Office of Local

Government Mr V. McMahon, Assistant Secretary, Resource Management Branch

Mr B . Strangle, Director, Resources Section Mr B. Waters, Director, Corporate Planning Policy Section Mr R. Webb, Assistant Director, Resources Section

Department of Finance Mr D. Douglas, Director, Financial Management Improvement Branch Mr J . Buckley, Chief Finance Officer, Immigration and

Industrial Relations Branch Ms A. Phillips, Senior Finance Officer, Immigration and Industrial Relations Branch Ms H. Berry, Senior Finance Officer, Financial Management Improvement Branch

165

4. PARTICULARS ON PROPOSED ADDITIONAL EXPENDITURE FOR 1988-89 - DEPARTMENT OF ADMINISTRATIVE SERVICES.

5. IN ATTENDANCE: Senator the Hon. Robert Ray, Minister for Immigration, Local Government and Ethnic Affairs, accompanied by the following officers:

Department of Administrative Services Mr C.A. McAlister, Deputy Secretary Mr A.A. Hillier, Deputy Secretary Mr S.J. Palywoda, First Assistant Secretary, Business

Development Group

Australian Valuation Office: Mr M. Coleman, General Manager

Australian Government Analytical Laboratories: Dr C. Dahl, Acting Government Analyst

Parliamentary Services: Mr J. Lleonart, General Manager Mr P. O'Neill, Assistant General Manager, Parliamentary and Ministerial Services Branch

Corporate Management Group: Mr P. Taylor, General Manager Mr J. Gavin, Secretary, Royal Commission of Enquiry into Aboriginal Deaths in Custody Ms J . Sheppard, Assistant Secretary, Royal Commission of

Enquiry into Aboriginal Deaths in Custody

Department of Finance Ms H. Berry, Senior Finance Officer, Financial Management Improvement Branch

8. ADJOURNMENT: The Committee adjourned at 11.42 pm.

7. ATTENDANCE: Senators Aulich, Beahan, Durack, Morris, Short and Tambling.

Senators Michael Baume, Hill and Jenkins also attended.

CONFIRMED:

(Terry Aulich) Chairman

166

THE SENATE

THURSDAY, 13 APRIL 1989

ESTIMATES COMMITTEE E

MINUTES OF PROCEEDINGS

NO. 23

1. MEETING: The Committee met at 2.05 pm in Senate Committee Room No. 14. The Chairman, Senator Aulich, took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE FOR 1988-89 - DEPARTMENT OF ADMINISTRATIVE SERVICES.

3. IN ATTENDANCE: The Committee continued its examination of the Department of Administrative Services. Senator the Honourable Robert Ray, Minister for Immigration, Local Government and Ethnic Affairs was accompanied by the officers present at the previous hearing.

The Committee completed its scrutiny of the Department of Administrative Services at 4.00 pm.

4. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE FOR 1988-89 - ATTORNEY-GENERAL'S DEPARTMENT.

5. IN ATTENDANCE: Senator the Honourable Michael Tate, Minister for Justice, accompanied by the following officers:

Attorney-General's Department Mr L. Glare, Deputy Secretary Mr T.A. Sherman, Deputy Secretary Mr S. Skehill, Deputy Secretary

Mr N.S. Reaburn, Acting Deputy Secretary Mr R. Smeaton, Acting First Assistant Secretary, Corporate Services Division Mr B. McMillan, First Assistant Secretary, Legal

Services Co-ordination Division Mr T . McKnight, Acting Senior Assistant Director of Public Prosecutions Ms H. Penfold, Second Parliamentary Counsel Mr P.W. Folbiss, Administrative Officer of Parliamentary

Counsel Mr E. Willheim, First Assistant Secretary, Justice Division Mr W. Chapman, Assistant Secretary, Management, Human

Rights and Equal Opportunity Commission Mr D.C. Edwards, First Assistant Secretary, Business Affairs Division

167

Mr B. 0'Callaghan, Acting Senior Assistant Secretary, Companies and Securities Branch Mr H. Spier, First Assistant Commissioner, Trade Practices Commission Mr S. Malouf, Assistant Commissioner, Corporate Services

Branch, Trade Practices Commission Mr B. Fernando, Senior Assistant Secretary, Office of Legal Aid Administration Mr P. Dingwall, Acting Registrar, Federal Court of Australia Mr C. Spink, Acting Principal Registrar, Family Court of Australia Mr P. Thompson, Clerk of the ACT Magistrates Court Mr T. Meredith, Acting Chief Reporter, Commonwealth Reporting Service Mr R.G. Rose, Clerk of the High Court of Australia Mr S.B. Gavin, Associate Secretary, Australian Federal

Police Mr J.C. Johnson, Deputy Commissioner, Australian Federal Police Mr B. Bates, Assistant Commissioner ACT Region, Australian Federal Police Mr R. Defers, Commander, Australian Federal Police Mr G.R. Mills, Assistant Secretary, Resources Branch, Australian Federal Police Mr D. Lenihan, Chief Executive Officer, National Crime Authority Ms D. Charters-Wood, Executive Officer, Australian

Institute of Family Studies Mr R. Krauss, Director, Budget Management Section Mr D. Boucher, Acting First Assistant Secretary, Commercial and Drafting Division

Department of Finance Mr N. McGladrigan, Senior Finance Officer

6. The Committee completed its examination of the Attorney-General's Department at 10.30 pm.

7. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE FOR 1988-89 - DEPARTMENT OF ABORIGINAL AFFAIRS.

8. IN ATTENDANCES Senator the Honourable Michael Tate, Minister for Justice, accompanied by the following officers:

Department of Aboriginal Affairs: Mr W.J. Gray, Secretary Mr D.J. O'Rourke, First Assistant Secretary, Corporate Development Division Mr W. Miller, Acting First Assistant Secretary, Corporate Services Division Ms P. Turner, First Assistant Secretary, Programs Policy

Division

168

Mr R.J. Beadman, Acting First Assistant Secretary, Heritage and Legal Division Mr G. Bissaker, Acting Assistant Secretary, Budget Branch Mr R. Morony, Acting Assistant Secretary, Employment

Development Policy Branch Mr G. Menham, Assistant Secretary, Public Affairs Branch

Aboriginal and Torres Strait Island Commission Task Force: Mr G. Jones, Chairman

National Aboriginal Health Strategy Working Party: Mr K. Wanganeen, Chairman

Australian Institute of Aboriginal Studies: Mr W. Dix, Principal Mr T. Varga, Finance Officer

Aboriginal Hostels Limited: Mr R.C. Clarke, General Manager Mr J.C. Rooks, Assistant General Manager, Company Secretary

Ms E. Barolits, Assistant General Manager - Operations Ms P. Gilmour, Manager - Finance

Aboriginal Development Commission: Mr M. Stewart, A/g General Manager Mr P. Goggin, Assistant General Manager - Programs Mr M. O'Ryan, Assistant General Manager - Administration

Mr P. Fitzwarryne, Assistant General Manager - Strategic Planning and Review Mr R. Powell, Financial Accountant

Department of Finance Mr Q.W. Perks, Senior Finance Officer, Education and Employment Division

9. ADJOURNMENT: The Committee adjourned at 12.02 am.

10. ATTENDANCE: Senators Aulich, Baume, Beahan, Durack, Morris, Short and Tambling.

Senators Hill and Jenkins also attended.

CONFIRMED:

(Terry Aulich) Chairman

169

THE SENATE

FRIDAY, 14 APRIL 1989

ESTIMATES COMMITTEE E

MINUTES OF PROCEEDINGS

NO. 24

1. MEETING: The Committee met privately at 10.10 am.

2. PRESENT: Senators Aulich, Michael Baume, Beahan, Morris, Short and Tambling.

3. The Committee Resolved that:

(i) the Minister (Senator Tate) be invited to ensure that Mrs S.M. McPherson, Chairman, Aboriginal Development Commission, attended the Committee's hearing; and

(ii) the Committee will hear representatives of the Australian Audit Office at a date to be arranged.

4. The private meeting closed at 10.30 am.

5. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE FOR 1988-89 - DEPARTMENT OF ABORIGINAL AFFAIRS.

6. IN ATTENDANCE: Senator the Honourable Michael Tate, Minister for Justice, accompanied by the officers who assisted the Committee at its previous hearing.

7. ADJOURNMENT: The Committee concluded its examination of the Department of Aboriginal Affairs at 7.35 pm.

8. ATTENDANCE: Senators Aulich, Michael Baume, Beahan, Morris, Short and Tambling.

CONFIRMED:

(Terry Aulich) Chairman

THE SENATE

WEDNESDAY, 3 MAY 1989

ESTIMATES COMMITTEE E

MINUTES OF PROCEEDINGS

NO. 25

1. MEETING: The Committee met at 8.09 am in Senate Committee Room No. 15. The Chairman, Senator Aulich, took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE FOR 1988-89 - DEPARTMENT OF ABORIGINAL AFFAIRS

3. IN ATTENDANCE:

Australian Audit Office: Mr J.S. O'Neill, First Assistant Auditor-General, Audit Division C Mr A. St J. Minchin, Assistant Auditor-General, Audit

Division C Mr C.R. Mason, director, Audit, Audit Division C Mr M.F. Egan, Acting Regional Manager, Queensland Ms L.M. O'Brien, Acting Prinicpal Auditor, Regional

Office, Australian Capital Territory

Department of Finance Mr Q. Perks, Senior Finance Officer

4. ADJOURNMENT: The Committee adjourned at 9.48 am.

5. ATTENDANCE: Senators Aulich, M. Baume, Beahan, Short and Tambling.

CONFIRMED:

(Terry Aulich) Chairman

THE SENATE

TUESDAY, 9 MAY 1989

ESTIMATES COMMITTEE E

MINUTES OF PROCEEDINGS

NO. 26

1. MEETING: The Committee met in deliberative session at 1.55 pm in Senate Committee Room No.18. The Chairman, Senator Aulich, took the Chair.

2. REPORT OF THE COMMITTEE: The Committee considered the Chairman's draft Report to the Senate. After discussion, those parts of the Report dealing with the Departments of Immigration, Local Government and Ethnic Affairs, Administrative Services were adopted. The comments on the Attorney-General's Department were adopted after amendment

to include reference to the lack of representation by the NCSC at the Committee's hearings.

3. CHANGE IN MEMBERSHIP: Opposition members expressed their disagreement with the change in membership of the Committee to include a Government Senator who had not participated in the Committee's deliberation.

4. ADJOURNMENT: The Committee adjourned at 2.00 pm.

5. ATTENDANCE: Senators Aulich, M. Baume, Durack, Maguire, Short and Tambling.

CONFIRMED:

(Terry Aulich) Chairman

172

THE SENATE

WEDNESDAY, 10 MAY 1989

ESTIMATES COMMITTEE E

MINUTES OF PROCEEDINGS

NO. 27

1. MEETING: The Committee met in deliberative session at 12.45 pm adjacent to the Senate Chamber. Senator Beahan took the Chair.

2. REPORT OF THE COMMITTEE: The Report of the Committee was adopted.

3. MINUTES: The Minutes of Meetings Nos. 22-26 were confirmed.

4. ADJOURNMENT: The Committee adjourned at 12.50 pm.

5. ATTENDANCE: Senators Beahan, Maguire, Short and Tambling.

CONFIRMED:

(Michael Beahan) Acting Chairman

1 7 3

i

ESTIM ATES COMMITTEE E

H A N SA R D IN D E X TO ISSUES R A ISE D A T

THE COMM ITTEE’S PUBLIC H E A R IN G S

May 1989

■ 1

ESTIMATES COMMITTEE E

TABLE OF CONTENTS FOR HANSARD OF HEARINGS

Tuesday, 11 April 1989

Subject Page

Chairman's opening statement El

DEPARTMENT OF IMMIGRATION, LOCAL GOVERNMENT AND ETHNIC AFFAIRS

Program - Non-specific

Portfolio savings by programs E2

Defectors' hotline E2

Migrant workers rights scheme E2

Upgrade of IRIS computer system E3

Use of $530 000 computer equipment E3

Bureau of Immigration Research role E3

Entry of homosexuals into Australia E4

Program 1 - Migration and Visitor Entry

Intergovernmental Committee for Immigration - members E4 Foreign exchange expenses, insurance E4

Italian migrant intake E5

Principal adviser for refugees E5

Forms E6

- changes following selection criteria changes E6 - shortages E6

Independent and concessional applications - suspension of lodgement 31 March E6

- changes to criteria E7

- successful applicants using additional concessions E7 Migration officers upgrade to AS06 E8

Staff morale E8

Resignation rates E9

Business migration - agents E9

- follow-up E10

- criteria Ell

- comparison with Canada, New Zealand E13 - no. of applications E13

- advertising E16

- degree of vetting of applicants El6 - agents' fees, accreditation E17

- delays in processing applications E17 Review staff - redundancies, redeployment E17

Immigration review fee E18

- regulations E21

- legal opinions E23,E28

- advertising the availability of refunds E24

- use of unrefunded monies E26

Illegal migrants E29

177

Word processing equipment E31

Program 4 - Citizenship

Year of Citizenship - advertising E32

- impact E32

- citizenship applications E32

DEPARTMENT OF ADMINISTRATIVE SERVICES

Minister's opening statement E34

Program 10 - Meteorology

Forecasting equipment, staff E34

Lord Howe Island relocation E35

Program 14 - Parliamentary Services

Additional ministerial staff E41

Use of 34 Squadron E42

- savings on commercial airlines E42

Ministerial telephone networks E43

Program 15 - Corporate Management

Non-SES special retirement scheme E35

Retrenchments E36

Royal Commission into Aboriginal Deaths in Custody - legal aid for families E37

- engagement of consultants E37

- Commissioner Wyvill E37

- counsel assisting E38

- reporting dates E39

- costs E39

- travel allowances E40

- other Departmental involvement E40

Thursday, 13 April

Minister's opening statement E45

Program 1 - Australian Property Services

Use of consultants in the Northern Territory E47

Program 3 - Australian Construction Services

Use of consultants in the Northern Territory E47

Parramatta Law Courts project E47

Perth Law Courts project E47

Administrative staffing in Darwin E48

Program 2 - Settlement Services

178

Program 8 - Publishing and Printing

AGPS/AG's review of Crown copyright E49

Print brokerage shortfall E49

Ministerial Document Service E50, E53

AGPS policy on contracting work out E50

Formula for ascertaining retail price E51

Program 9 - Purchasing and Sales

Implementation of new procurement arrangements E53 Commonwealth credit card E54

Purchasing arrangements - breaches of regulations E54 - staff savings E56

Program 16 - Electoral Services

Referendum savings E57

ACT election E58

- treatment of non-voters E58

- d'Hondt system E58

- counting E59

- technical problems E60

- single mark voting E62

- availability of resources E64

Habitation reviews E64

Program 18 - Parliament House Construction Authority

Staff pay-outs E64

Leaks E64

Ceiling, tile replacements E65

Program - Non-specific

Staffing reductions E65

ATTORNEY-GENERAL'S DEPARTMENT

Program 1 - Legal Services to the Commonwealth

Senior resignations E67

Remuneration of senior executives E68

Anzac ship project staffing E68

Voluntary retirement scheme E68

Advice to DILGEA on immigration review fee E69

Royal Commission into Aboriginal Deaths in Custody - legal aid E71

- instructing solicitors E71

- recruitment of Commissioner Wyvill E7^

- 10 counsel assisting E73

179

Agencies present at meeting on NSCA E74

Special Investigations Unit E74

- progress E75

- persons interviewed E77

Involuntary retirement, DPP E77

Office of Parliamentary Counsel - staffing E79

- drafting style manual E79

- drafting delays E81

- technical amendments E82

Program 2 - Law Related Services to the Commonwealth

Constitutional Commission - video "Blood on the Wattle" E83

- termination payments E84

National Companies and Securities Commission - timing of request for additional funds E85

- Rothwells investigation E85

- outside legal advice E86

- tabling of report E86

- supply of report to Joint Select Committee E87 NCSC/Ministerial Council relations E88

Australian Institute of Family Studies - evaluation of child support scheme E88

- staffing levels E89

Trade Practices Commission - class actions E91

- resource requirements E91

- priorities E92

- cost-recovery for seminars E92

- transfer of Mr Lindsay Coombs E92

- examination of newspaper distribution system E93

Program 3 - Legal Aid

Indexing of legal aid funding for inflation E93

Program 4 - Administration of Justice

Federal Court - increase in jurisdiction E94

- impact on resources E94

Family Court of Australia - matters transferred from the Federal Court E95

- appointment of judicial registrars E95

- undefended proceedings to Magistrates' Courts E96 - proposal to transfer principal registry to Melbourne E96 - staffing implications E98

- leased HCF premises E99

Administrative Appeals Tribunal - cost of move to Brisbane E100

- reasons for move to Brisbane E102

- location of hearings E103

- criteria for success E103

Commonwealth Reporting Services - retirement payouts El03

180

"Travel scrutiny savings" E104

Program 6 - Maintenance of Law, Order and Security

Australian Federal Police - second tier offsets E105

- ACT - policing costs E108

- close-down of services at Easter E109

- agent provocateur procedures El10

- borrowing against next year's estimates Elll

National Crime Authority - South Australian office E112

ASIO - non-listing of estimates in running order E112 - problems identified by the Auditor-General El13

DEPARTMENT OF ABORIGINAL AFFAIRS

Minister's opening statement E114

Program - Non-specific

Officers attending E114

Department's response to recent reports on Aboriginal Affairs E116

Menzies report - follow-up of items not considered El16 Public Service Commission report E117

- letter from Mr Enfield E117

- recommendations El18

ACOA - letter on DAA, ADC staff concerns, morale E119

- no submission, evidence to Select Committee El22 - report to members on ATSIC El23

Mclver report on proposed structure, staffing of ATSIC E124 New program initiatives - duplication DAA, ADC? E125 - public awareness program E125

Consultancy of Ms Maion E127

Friday, 14 April 1989

Meeting with the Auditor-General E130

DAA policy guidelines - Audit comment El31

Purchase of motor vehicles E132

Land rights amendment legislation not proclaimed E133 Land excisions, stock routes E133

New land councils - requests, action El34

Northern Land Council - breakdown of Chairman's office costs E135

- discrepancy in accounts with CLC El 35

Land councils - travel votes E135

- oversight of grants by DAA El35

- buffalo royalty payments E136

- Land Rights News advertising, funding E136

- budgets, last two years E149

Program 5 - High Court of Australia

181

Central Land Council - royalty management division E137

- delay in tabling annual report El37

ABTA board membership El37

Tiwi Land Council decrease in payments E138

North Australian Aboriginal Legal Aid Service inquiry El39 Legal aid in the Katherine region El39

Stock routes and reserves - excision guidelines E139

- negotiations with NT cattlemen E140

Program 3 - Social and Legal Services

National Aboriginal health strategy E142

Forum to discuss draft health strategy E143

AFP investigations into Mr Hall E143

National Aboriginal Sport and Recreation Advisory Committee E144

Non-compliance with grant conditions E144

QEB legal service - suspension of funding E144

- compliance with grant conditions E145 Mr Robinson's legal costs E145

ALS funds used against ADC, other Commonwealth agency E146 Payments to Pelagic E146

Program 4 - Community Development

Aboriginal Hostels - tariffs E147

- depreciation rate E147

Surveys of Aboriginal housing needs E147

Transfer of funds to ADC for land purchase in WA E148

Aboriginal Employment Development Policy E149

Recently retired officers engaged as consultants E150 Payments to Hostlyn Pty Ltd E151

PM/Minister Hand's meetings together with Aboriginal organisations re treaty E151

Program 5 - Corporate Services

Distribution of the health strategy document E152

Senior officer resignations, retirements - rate E152

- connection with ATSIC E153

- health-related causes E153

ATSIC - transitional arrangements E154

- Task Force salaries, administrative costs E155 - ADP applications E155

Yulgnu Association, Katherine - level of DAA support E156 Non-SES voluntary retirements E157

Minister's hospitality costs E157

182

Program 6 - Aboriginal Development Commission

ADC financial statements in annual report E158

Attorney-General's advice re special audit E158

Australian Audit Office letter to Committee E159

Scope of the Audit Office report E161

ADC internal audit E162

ADC co-operation with Audit Office staff E163

Employment of legal counsel re Audit El64

- fees E164

- connection with resignation of principal legal officerEISS - advice on Tranby College E165

- Mr Adams' speciality in law El65

ADC Board meeting, 27 January 1989 E166

ADC responses to Audit report El66

Qualifications of ADC Commissioners E168

ADC accusation of racism on part of Audit Office E169

Cash limited budgeting controls El69

Aboriginal housing policy conference 21-22 March 1989 E170 Meeting, Port Augusta, 1-2 December 1988 E170

Trefoil Island activities E171

Aboriginal Enterprise Incentive Scheme E171

- budget provisions, eligibility provisions El72 Small business loans scheme applications E173

Enterprise development scheme E173

AEDP job creation E173

Enterprise procedures manual El73

Specific projects on which Ministers were briefed E173 Woden Town Club - present situation E174

Oasis Hotel - leasing arrangements E174

- legal action against Gamilarai directors E175 - profits directed to alcoholism treatment E175 Nardoola plant and stock E175

Downs Aboriginal housing company grants E175

Alma Vale - questions to Mr Menzies El76

Middar Pty Ltd El76

Alice Travellers' Village loan E176

Centrecorp funding arrangements E176

Central Land Council's involvement with CAIC E176

Yeperenye Shopping Centre contingency provisions E177 Townsville Aboriginal and Islander Association consultants E177 Amost-Devon Constructions funding El77

Arnhem Cosmetics El77

Audit criticisms of ADC prior to 1985 E178

Eden canoe and artefacts project E178

ADC annual report delays El78

Audit Office - qualification of ADC accounts E178

- criticism of ADC priorities E179

Enterprise development scheme funding El79

- maintenance of properties El80

- purchase of WA properties E180

- purchase of Atula Station El8 0

- determination of traditional owners El8 0

- ADC consultants John Noon and Ted Bullough E181

- Esperance Caravan Park E182

- assessing the capabilities of directors E182

183

JAMIS - support by ADC E183

- joint venturers E183

- assets E184

Audit criticism of refinancing loan on Zillmere house E184 Warrawulla housing association, Borroloola E185

Tangentyere Council funding from savings realised E185 Charleville Aboriginal Housing Company E186

- Mr Robinson's complaints to the Ombudsman E186

- title to Charleville Community Centre E186

Housing support for Gumatj clan, Nhulunbuy E187

Tranby College and treaty funding - report of ADC subcommittee on treaty consultations El87 - advice from ADC principal legal officer E187

- Cairns, Framlingham, Thursday Island meetings E188 - no payments to date El 8 9

- discussions between Minister, Board E190

- legal opinions on payment to Tranby E190

- actions at the ADC Board meeting, August 1988 El92 - relations with NCAO E193

- timing of legal advice on Tranby's ability to receive funds E197

- refund of monies not spent at Framlingham meeting E199 NCAO - meeting with Minister, Prime Minister on treaty El93 - personnel attending February meeting E194

- ADC questions about the Coalition's role E194

Capital account investment called up early E196

Computing equipment - liaison ADC/ATSIC Task Force E199 ADC Commissioners' declarations of pecuniary interest E199 Discussions on appointment of interim ATSIC commissioners E200 Senior executive staff turnover E200

Wednesday 3 May 1989

Opening statement on behalf of Auditor-General E201 Adequacy of answers received E202

Audit reply to ADC response to special audit report E203 Examination of adequacy of ADC procedures E203

Validity of meeting of 27 January 1989 E203,E219

ADC claims Audit Office racist E203

Yeperenye shopping centre E204

Cash limited budgeting E205

Availability of ADC procedures manuals E205

Attendance at audit exit interview E205,E207

Minutes of ADC meetings E206

Attorney-General's opinion on matters relating to section 24 of the ADC Act E206

Client training E207

Timing of ADC annual report E207

Qualifications of the ADC financial statement E207

Confidentiality of loan recipients E208

Minister's powers to request program estimates E208 Monitoring of section 24 of the ADC Act E208

Voting on purchase of Alma Vale E209

Enterprise procedures manuals E209

184

ADC emphasis on employment E209

Woden Town Club funding E210

Ministerial instrument re vehicle loans to Mr Robinson E210 Charleville Aboriginal Housing Co. - alleged threats by Mr Robinson E210

Viability of Yeperenye E211

Refinancing of loans contrary to ADC guidelines E211

Transfer of Charleville AHC assets E212

Deferred decision on reinvestment of capital fund moneys E212 No. of associations in breach of statutory requirements E212 Aboriginal art controversy E213

Tranby funding for treaty consultations E213

Audit's reliance on Attorney-General's opinions E213 NCAO influence on treaty consultation meetings funded by Tranby E214

ADC payout on Woden Town Club special guarantee to National Bank E215

Mr Adams, QC - fees in conjunction with special audit E215 Delays in provision of information to Audit Office E216 Differences in advice from Mr Adams and the Attorney-General's Department E216

Amost-Devon Constructions E217

Aboriginals Benefit Trust Account reporting E218

Remedial action on overdrawn bank accounts E218

Cyclical approach of the Audit Office E219

185

ESTIMATES COMMITTEE F

R EPO R T

Membership of Estimates Committee F

Senator Black (Chairman) 1 Senator Coates 1 Senator Cooney 1 Senator Puplick 1 Senator Reid 1 Senator Vanstone 1 Senator Peter Baume 1 2 Senator Colston (Chairman) 2 Senator Giles 2 Senator Shell 2 Senator Walters 2 Senator Zakharov 2

1 Discharged on 29 September 1988. 2 Appointed on 29 September 1988.

188

ESTIMATES COMMITTEE F

REPORT TO THE SENATE

Estimates Committee F presents its Report to the Senate

1. On 9 March 1989 the Senate referred to the Committee for examination and report the Particulars of Proposed Additional Expenditure for the Service of the year ending on 30 June 1989 and Particulars of Certain Proposed Additional Expenditure in

respect of the year ending on 30 June 1989 relating to the following Departments:

Primary Industries and Energy Community Services and Health Social Security

2. The Committee has considered the Additional Estimates for the year ended 30 June 1989 together with the Departmental Explanatory Notes and has received evidence from the Minister for Resources (Senator the Honourable Peter Cook), the Minister for Consumer Affairs (Senator the Honourable Nick Bolkus) and

officers of the Departments and authorities concerned. Copies of the Minutes of Proceedings and Hansard reports of evidence taken by the Committee are tabled for the information of the Senate. Revised Explanatory Notes were provided by the Department of

Social Security at the hearings. Written explanations furnished by Departments will be presented separately as they have not all yet been received.

3. Following the recent hearings the Committee makes the following general comment concerning the evidence brought before it by the three departments examined.

The Standard of responses from all Departments was guite high, with most questions answered at the hearing - few questions were required to be taken on notice. Officers provided

information freely and were willing to provide additional information to ensure Committee Members were aware of all information available.

4. The Committee expresses its appreciation for the assistance given by the Minister for Resources, the Minister for Consumer Affairs and the officials of the three departments who appeared before the Committee.

Mai Colston (Chairman)

189

ESTIMATES COMMITTEE F

M INUTES OF PR O CEEDING S

M ay 1989

1

THE SENATE

ESTIMATES COMMITTEE F

MINUTES OF PROCEEDINGS

NO. 12

THURSDAY, 13 APRIL 1989

1. MEETING: The Committee met in public session at 2.03 pm in Senate Committee Room No. 16. The Chairman, Senator Colston, took the Chair.

2. OPENING STATEMENT BY CHAIRMAN: The Chairman reported the Resolution of the Senate, dated 9 March 1989, relating to the consideration of Additional Estimates of expenditure for 1988-89 and made a statement relating to the

procedure to be followed by the Committee in its

examination of the estimates.

3. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1988-89 -DEPARTMENT OF PRIMARY INDUSTRIES AND ENERGY:

IN ATTENDANCE: Senator the Honourable Peter Cook, Minister for Primary Industries and Energy, accompanied by the following officers:

Department of Primary Industries and Energy

Mr D. J. Ives Deputy Secretary

Mr P. T. Core Deputy Secretary

Mr G. L. Lawless First Assistant Secretary, Coal & Minerals Division

Mr P. Hunt First Assistant Secretary,

Corporate Affairs Division

Ms F. M. Cassidy First Assistant Secretary, Crops Division

Mr W. G. Macgregor First Assistant Secretary, Livestock and Pastoral Division

Mr J. P. Wicks Principal Advisor,

Petroleum Division

Mr P. B. Allen Assistant Secretary,

Forestry Branch, Forestry, Land and Water Division

Mr R. N. Rawson Assistant Secretary,

Test Site Management Branch

193

Australian Bureau of Agricultural and Resource Economics

Mr B. Wonder Acting Director

Australian Fisheries Service

Mr D . W. Wesney Assistant Director,

Northern Fisheries Branch

Australian Quarantine and Inspection Service

Mr D. Gascoine Deputy Director

Mr J . F. Landos Senior Assistant Director, Policy Development and Services

Bureau of Mineral Resources

Prof R. W. R . Rutland Director Mr J . Cahill Acting Assistant Director,

Resource Management Branch

Bureau of Rural Resources

Dr G. Burch Acting Director

Department of Finance

Mr G. Hope Chief Finance Officer,

Transport and Industry Division

Mr S. Wood Senior Finance Officer,

Transport and Industry Division

Mr P. T. Core made an introductory statement on behalf of the Minister.

The Chairman called on consideration of general items and items not allocated to a program and then the following Programs requiring Additional Estimates for consideration by the Committee:

Program 1 Program 2 Program 3 Program 4

Industries Development Infrastructure and Support Research and Assessment Co-ordination and Corporate Management.

Together the expenditure in these Programs comprised the following:

Divisions 490-492, 494 (Document A) Divisions 930-932 (Document B)

194

The Committee suspended its consideration of the proposed Additional Expenditure of the Department of Primary Industries and Energy till a later hour of the day to enable departmental officers to provide additional

information to the Committee.

The following document was provided at the hearing by officers of the Department and is to be incorporated in the volume of Additional Information to be tabled in the Senate:

Funds obtained from the Advance to the Minister for Finance pending Additional Estimates 1988-89 .

4. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1988-89 DEPARTMENT OF COMMUNITY SERVICES AND HEALTH:

IN ATTENDANCE: Senator the Honourable Peter Cook,

representing the Minister for Community Services and Health, accompanied by the following officers:

Department of Community Services and Health

Mr M. Roche Dr T . Adams Mr I. McNeil

Mr T . Slater

Mr I. Fletcher

Dr J . Loy

Mr I. Campbell

Mr R. Harvey

Mr C. R. Wilcox Mr K . Hazell Dr G. Dash Mr J. Reid

Mr D. Kelaher

Mr M. Johnson

Mr D. Sinclair

Ms J . Blazow

Deputy Secretary Chief Medical Adviser First Assistant Secretary, Health Benefits

First Assistant Secretary, Health Advancement First Assistant Secretary, Disability Programs First Assistant Secretary,

Health Research and Services First Assistant Secretary, Corporate Services Principal Research Fellow,

Australian Institute of Health Health Insurance Commission Health Insurance Commission Health Insurance Commission Acting First Assistant

Secretary, Information Services Acting First Assistant Secretary,

Hospitals and Residential Programs Assistant Secretary, Policy and Evaluation Assistant Secretary,

Hospitals and Insurance Assistant Secretary, Child Care Strategic Planning and Management

195

Mr W. Taylor Assistant Secretary,

Child Care Program Development

Mr W. Jackson Assistant Secretary,

Home and Community Care

Mr I . Wingett Assistant Secretary,

Community Health and Workforce

Mr M. Johnston Principal Advisor,

Health Benefits

Mr T. Field Assistant Secretary,

Public Housing and Supported Accommodation

Dr B. Ashley Assistant Secretary,

Drug Evaluation

Ms M. Ford Assistant Secretary,

Budgets and Planning

Mr B. MacDonald Assistant Secretary,

Resources Management

Mr L. Scholes Director,

Budgets

Department of Finance

Senior Finance Officer, Social Security Division. Finance Officer, Financial Management and

Planning Division.

The Chairman called on consideration of general items and items not allocated to a program.

The Committee suspended consideration of the proposed Additional Expenditure.

5. DEPARTMENT OF PRIMARY INDUSTRIES AND ENERGY - STATEMENT BY MINISTER - RESUMPTION OF CONSIDERATION OF ADDITIONAL EXPENDITURE 1988-89: The Committee resumed its examination of the Department's proposed Additional Expenditure. The

Minister (Senator Cook) made a statement relating to issues raised earlier this day.

The Committee concluded its consideration of the proposed Additional Expenditure of the Department of Primary Industries and Energy, subject to undertakings made earlier this day by Departmental Officers to provide additional information to the Committee.

6. DEPARTMENT OF COMMUNITY SERVICES AND HEALTH - RESUMPTION OF CONSIDERATION OF ADDITIONAL EXPENDITURE 1988-89: The Committee resumed its examination of general items and items not allocated to a program in the Department's

proposed Additional Expenditure.

Mr M. Rosser

Mr W. Scott

196

The Chairman then called on the following Programs of proposed Additional Estimates for consideration by the Committee:

Program 1 - Health Advancement Program 4 - Assistance for People with Disabilities Program 6 - Health Care Access Program 7 - Housing Program 9 - Corporate Management

Together the expenditure in these Programs comprised the following:

Division 200-201 (Document A) Division 830-831 (Document B)

The Committee concluded its consideration of the proposed Additional Expenditure of the Department of the Community Services and Health, subject to undertakings to provide additional information to the Committee.

The following documents were provided at the hearing by officers of the Department and are to be incorporated in the volume of Additional Information to be tabled in the Senate:

List of 19 pharmaceutical benefits drugs remaining AO from December 1988.

Graph of authority drugs showing the number of prescriptions dispensed from April 1988 to December 1989 and the increase in dispensing over the same months of the previous year.

7. ADJOURNMENT: The Committee adjourned at 11.10 pm.

8. ATTENDANCE: Senators Colston (Chairman), Peter Baume, Giles, Sheil, Walters and Zakharov.

Senators Archer, Messner and Patterson also participated in the Committee's proceedings.

CONFIRMED:

Mai Colston Chairman

197

THE SENATE

ESTIMATES COMMITTEE F

MINUTES OF PROCEEDINGS

NO. 13

FRIDAY, 14 APRIL 1989

1. MEETING: The Committee met in public session at 9.05 am in Senate Committee Room No. 16. The Chairman, Senator Colston, took the Chair.

2. STATEMENT BY CHAIRMAN: The Chairman made statements relating to the procedure to be followed by the Committee in its examination of the Additional Estimates and the provision of the Department's revised Explanatory Notes.

3. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1988-89 -DEPARTMENT OF SOCIAL SECURITY:

IN ATTENDANCE: Senator the Honourable Nick Bolkus, representing the Minister for Social Security, accompanied by the following officers:

Department of Social Security

Mr D. Volker Secretary

Mr J. Humphreys National Manager, Systems Dr M. Edwards First Assistant Secretary,

Social Policy

Mr A. Law First Assistant Secretary,

Applications

Mr C. Butel First Assistant Secretary,

Benefits Delivery

Mr M. Douglas First Assistant Secretary,

Legislation and Review

Mr B. Godfrey First Assistant Secretary,

Resource Management

Mr J. Moore Assistant Secretary,

Resources

Ms D. Shiff Assistant Secretary,

Child Support

Mr T. Murphy Assistant Secretary,

Benefits Control

Mr A. Herscovitch Assistant Secretary, Corporate & Evaluation Planning

198

Mr K. Ogborn Assistant Secretary,

Benefits Director, Staff Budgeting Director,

Finance Estimates

Ms J . Hefford

Mr D . Bayada

Department of Finance

Ms D. Mitchell Senior Finance Officer,

Financial Management and Accounting Division

Mr W.P. Burmester Section Head, Social Security Division

The Minister made an introductory Statement.

The Chairman called on consideration of general items and items not allocated to a program, then the following Programs requiring Additional Estimates for consideration by the Committee:

Program 1 - Pensions, Benefits and Allowances Program 2 - Corporate Services

Together the expenditure in these Programs comprised Division 560 (Document A).

No expenditure was sought under the provisions of Appropriation Bill (No. 4) 1988-89 (Document B ).

The Committee concluded its consideration of the proposed Additional Expenditure of the Department of Social Security, subject to undertakings made by officers of the Department to provide additional information to the

Committee.

The following document was provided at the hearing by officers of the Department and is to be incorporated in the volume of Additional Information to be tabled in the Senate:

Young Homeless Allowance Recipients (Unemployment, Sickness and Special Benefit) - Table showing current numbers at the end of each month in

Australia, July 1986 - March 1989.

The Committee concluded its consideration of the proposed Additional Expenditure of the Department of Social Security, subject to undertakings to provide additional information to the Committee.

4. ADJOURNMENT: The Committee adjourned at 10.25 am.

199

Giles, Shell 5. ATTENDANCE: Senators Colston Walters and Zakharov. (Chairman),

CONFIRMED:

Mai Colston Chairman

200

THE SENATE

ESTIMATES COMMITTEE F

MINUTES OF PROCEEDINGS

NO. 14

FRIDAY, 14 APRIL 1989

1. MEETING: The Committee met in private session at 10.52 am in Senate Committee Room No. 16. The Chairman, Senator Colston, took the Chair.

2. COMMITTEE REPORT: The Committee considered items for inclusion in its Report to the Senate. The Committee agreed that the Report would include a reference to the high quality of responses and information provided by departmental officers. No other items were considered necessary for inclusion.

3. COMMITTEE CORRESPONDENCE: The Committee requested that the Chairman write to the appropriate authority reiterating several of the housekeeping matters raised in the Committee's previous report dated November 1988.

4. ADJOURNMENT: The Committee adjourned at 10.58 am.

5. ATTENDANCE: Senators Colston (Chairman), Giles, Sheil, Walters and Zakharov.

CONFIRMED:

Mai Colston Chairman

THE SENATE

ESTIMATES COMMITTEE F

MINUTES OF PROCEEDINGS

NO. 15

WEDNESDAY, 3 MAY 1989

1. MEETING: The Committee met in deliberative session at 9.15 am in Senate Suite SI 40. The Chairman, Senator Colston, took the Chair.

2. CONFIRMATION OF MINUTES: The minutes of meetings held on 13 and 14 April 1989 (Nos 12-14), were confirmed.

3. REPORT OF THE COMMITTEE: The Committee considered the Chairman's draft Report to the Senate.

The Committee resolved that the draft Report be agreed to.

4. ADJOURNMENT: The Committee adjourned at 9.18 am.

5. ATTENDANCE: Senators Colston (Chairman), Giles and Zakharov.

CERTIFIED CORRECT:

Mai Colston Chairman

202

THE SENATE

ESTIMATES COMMITTEE F

MINUTES OF PROCEEDINGS

NO. 16

WEDNESDAY, 3 MAY 1989

1. MEETING: The Committee met in deliberative session at 8.00 pm in Senate Suite SI 40. The Chairman, Senator Colston, took the Chair.

2. CONFIRMATION OF DECISIONS MADE BY THE COMMITTEE: The Committee considered the decisions made earlier this day relating to its agreement to the Chairman's draft Report.

The Committee resolved that the decision made earlier this day in relation to the Report, subject to alteration agreed to at this meeting, be confirmed.

3. ADJOURNMENT: The Committee adjourned at 8.06 pm.

5. ATTENDANCE: Senators Colston (Chairman), Peter Baume, Giles, Walters and Zakharov.

CERTIFIED CORRECT:

Mai Colston Chairman

2 0 3

ESTIM ATES COMM ITTEE F

H A N SA R D IN D E X TO ISSUES R A ISE D AT

THE COM M ITTEE’S PUBLIC H E A R IN G S

M ay 1989

ESTIMATES COMMITTEE F

Issues raised during Committee hearings held on 13 and 14 April 1989.

(page references, Hansard. Estimates Committee F)

DEPARTMENT OF PRIMARY INDUSTRIES AND ENERGY

Page No■

Opening Statements 1-2

General Questions Departmental goals, objectives and performance indicators 2-3

Australian Quarantine and Inspection Service - Export inspections - Staff resources - Feral pigs

Program 1 - Industries Development Fishing in Northern Australia 4-7

Fishing policy 7

Fishing allocations and guidelines 7-8, 47

Fishing rights, licences 8-10

Program objectives, performance indicators 10-12

Program 2 - Infrastructure and Support Program objectives, performance indicators 12-13 Screw-worm fly 13-14

New Zealand potato growing 14

Prohibited NZ imports from Australia 14

Fire blight disease 14-15

Memorandum of understanding with Papua New Guinea on quarantine co-operation matters 15

Program 3 - Research and Assessment Sheep embryo importation 15

Disease research 15-16

Offsets for oil imports 16-17

Greenhouse effect 17-18

Electricity generation costs 18-19

Bureau of Mineral Resources 19-20

207

OJ w w

Program 4 - Co-ordination and Corporate Management Staffing 20, 47

Retirement packages 20-21

AQIS 21

Travel allowance 21

DEPARTMENT OF COMMUNITY SERVICES AND HEALTH

General Questions Condom testing 22-23

Departmental goals, objectives and performance indicators 23-24

Research funding for diseases 24

Aboriginal child care agency 25

Pharmaceutical Benefits Scheme 25-27

Information capsule promotion device 27-29

47-49

Generic prescribing 29-30

Advertising S4 products 31

Authority drugs 31-32

Home and Community Care Program 32

AIDS 32-33

Attendant care program 33-34

Family support program 34

Emergency relief program 35-36

Pathology fee schedule 36-39

Program structure 39-40

Residential care figures 40

Bush nursing hospitals 40

Consultancy report on nursing home industry 40-43 Drug evaluation branch staffing 43

Drug evaluation 43-46

DEPARTMENT OF PRIMARY INDUSTRIES AND ENERGY

Fishing allocations and guidelines 47

Staffing 47

DEPARTMENT OF COMMUNITY SERVICES AND HEALTH

General Questions (continued) Pharmaceutical benefits scheme Information capsule promotion device 47-49

Medical fraud and overservicing investigations 50-53 Health insurance funds 53-54

Aboriginal Child Care Centre, Mt Isa 54-55

Child care 55-56

Aged care 56-59

208

Program 1 - Health Advancement Heart disease 59-60

Mammogram screening, breast cancer 60-65

AIDS 65-66

National Health and Medical Research Council meetings 66-67

Program 4 - Assistance for people with disabilities Provision of disability services 67-68

Funding 68-69, 70

Work preparation centres 69

Data collection 69

Activity therapy centres funding guidelines 72 Institution administration 72

Numbers of people affected by DSA 74-75

Independent living training 75-76

Employment of people with disabilities within Department 76-78

Program 6 - Health Care Access Case mix measures/diagnostic related groups 78 Health insurance 79

DEPARTMENT OF SOCIAL SECURITY Friday, 14 April 1989

Opening Statements 81-82

Revised Explanatory Notes 82

General Questions Young Homeless Allowance 82-83

Subsidies for pension recipients 83

Sole parent benefit 84-87

Family Allowance payments 87-88

Program 1 - Pensions, Benefits and Allowances Child Support Agency 88-91

Child Support Act registrations 92

Income security for the aged 92

Research expenditure, contracts, staffing 94-95 JET and new start programs 95

209