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The Parliament of the Commonwealth of Australia

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

Reports to the Senate on Departmental Additional Estimates 1991-92

Australian Government Publishing Service Canberra

The Parliament o f the Commonwealth o f Australia

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

Reports to the Senate on Departmental Additional Estim ates 1991-92

Australian Government Publishing Service Canberra

ISSN 0811-0883 ISBN 0 644 25727 X

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Australian Government

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© Commonwealth of Australia 1992

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CONTENTS PAGE

1. Resolution of the S e n a t e ........................................................................... v

2. Estimates Committee G rou ps.................................................................... vi

3. Membership o f C om m ittees...................................................................... vi

4. Estimates Committee A

Report ....................................................................................................... 1

Reservations ............................................................................................. 11

Unanswered Questions ......................................................................... 21

Minutes of Proceedings Friday, 27 March 1992 ...................................................................... 23

Tuesday, 31 March 1992 ................................................................. 28

Wednesday, 1 April 1992 ................................................................. 31

Thursday, 9 April 1992 .................................................................... 34

Tuesday, 28 April 1992 (2 meetings) ........................................... 37,38

Index to Hansard o f public h earin gs.................................................. 39

5. Estimates Committee B

Report ....................................................................................................... 53

Reservations ............................................................................................. 65

Documents tabled dining public hearings or provided with additional information to the C om m ittee............................. 73

Minutes of Proceedings Friday, 27 March 1992 ...................................................................... 77

Tuesday, 31 March 1992 ................................................................. 81

Thursday, 2 April 1992 .................................................................... 84

Friday, 3 April 1 9 9 2 ........................................................................... 88

Tuesday, 21 April 1992 .................................................................... 91

Tuesday, 28 April 1992 .................................................................... 94

Table of contents to Hansard of public hearings............................. 97

Questions taken on notice during the Committee's consideration o f the estimates ....................................................... 109

6. Estimates Committee C

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

Index to Hansard o f public h earin gs.................................................. 137

Minutes of Proceedings Friday, 27 March 1992 ...................................................................... 145

Tuesday, 31 March 1992 ................................................................. 149

Tuesday, 28 April 1992 ................................................................... 155

Questions on notice ................................................................................ 159

Reservations ............................................................................................ 179

i i i

7. Estimates Committee D

Report ........................................................................................................ 187

Unanswered Questions ......................................................................... 191

Reservations .............................................................................................. 193

Hansard in d e x ........................................................................................... 197

Minutes o f Proceedings Tuesday, 31 March 1992 .................................................................. 203

Thursday, 2 April 1992 (2 m eetin gs).............................................. 204,210

Tuesday, 28 April 1992 ..................................................................... 211

8. Estimates Committee E

Report ........................................................................................................ 215

Reservations .............................................................................................. 227

Minutes o f Proceedings Monday, 30 March 1992 .................................................................. 235

Thursday, 2 April 1992 .................................................................... 236

Friday, 3 April 1992 ............................................................................ 242

Wednesday, 29 April 1992 ............................................................... 245

Tuesday, 5 May 1992 ......................................................................... 248

Table of Contents for Hansard o f Hearings .................................... 251

Questions taken on notice before and during the hearings including questions unanswered ................................... 261

9. Estimates Committee F

Report ........................................................................................................ 285

Reservations ............................................................................................. 291

List of questions taken on notice by portfolio officers before and during the hearings......................................... 299

Index to H ansard ...................................................................................... 343

Minutes o f Proceedings Wednesday, 1 April 1992 .................................................................. 351

Thursday, 2 April 1992 .................................................................... 352

Tuesday, 28 April 1992 .................................................................... 358

1. RESOLUTION OF THE SENATE AGREED TO ON 5 MARCH 1992

REFERENCE OF PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1991-92: The Minister for Shipping and Aviation (Senator Collins), by leave, moved-(1) That the particulars of proposed additional expenditure in relation to the

Parliamentary Departments in respect of the year ending on 30 June 1992, the particulars of proposed additional expenditure for the service of the year ending on 30 June 1992 and the particulars of certain proposed additional expenditure in respect of the year ending on 30 June 1992 be referred to

estimates committees for examination and report. (2) That the committees consider proposed additional expenditure in the estimates committee groupings agreed to by the resolutions of the Senate of 9 and 10 May 1990, 11 September 1990,13 February 1991 and earlier this

day.

(3) That the committees report to the Senate on or before Wednesday, 29 April 1992. (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 - Friday, 27 March and Tuesday, 31 March; (b) Committees D, E and F - Thursday, 2 April and Friday, 3 April; and (c) if required, on such other days as determined by the committees. Question put and passed.

2. RESOLUTION OF THE SENATE AGREED TO ON 26 MARCH 1992

REFERENCE OF PARTICULARS OF PROPOSED FURTHER ADDITIONAL EXPENDITURE 1991-92: The Minister for Justice and Consumer Affairs (Senator Tate), by leave, moved-(1) That the particulars of proposed further additional expenditure for the

service of the year ending on 30 June 1992 in respect of the Department of Employment, Education and Training and the Department of Health, Housing and Community Services be referred forthwith to Estimates

Committees F and E for examination during consideration of particulars of proposed additional expenditure for 1991-92. (2) That the committees report to the Senate on or before Wednesday, 29 April 1992.

Question put and passed.

V

2. ESTIMATES COMMITTEE GROUPS

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

Estimates Committee D Administrative Services Immigration, Local Government and Ethnic Affairs Arts, Sport, the Environment Commerce

and Territories Tourism

Estimates Committee B Defence Foreign Affairs and Trade

Estimates Committee E Attorney-General Veterans' Affairs

Finance Treasury

Health, Housing and Community Services

Estimates Committee C Transport and Communications Social Security

Estimates Committee F Employment, Education and Training Industrial Relations Primary Industries and Energy

3. MEMBERSHIP OF COMMITTEES

Estimates Committee A

Senator Bishop Senator Campbell1 Senator Childs (Chairman) Senator Coates Senator O'Chee Senator Short2 Senator Walsh

A p p o i n t e d 5 M a r c h 1 9 9 2

d i s c h a r g e d 5 M a r c h 1 9 9 2

v i

Estimates Committee B

Senator Bums (Chairman) Senator Devereux Senator H ill*+ Senator MacGibbon3

Senator Newman+ Senator Schacht Senator Teague4

* Senator MacGibbon replaced Senator Hill for the consideration of the estimates o f the Department of Defence. + Senators Bishop and Short replaced Senators Hill and Newman for the consideration of the estimates of the Department of the Treasury and the

Department of Finance.

Estimates Committee C

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

* Senators Chapman, Macdonald and Panizza replaced Senators Alston, Patterson and Walters for the consideration of the estimates of the Department o f Transport and Communications.

Estimates Committee D

Senator Kemp* Senator Loosley Senator Macdonald5 Senator Maguire Senator Parer* Senator Teague6 Senator Zakharov (Chairman)

* Senators Baume and Crichton-Browne replaced Senators Kemp and Parer for the consideration of the estimates of the Department of Arts, Sport, the Environment and Territories and the Department of Tourism.

d i s c h a r g e d 5 M arch 1 9 9 2

A p p o i n t e d 5 M a r ch 1 9 9 2

A p p o i n t e d 5 M a r ch 1 9 9 2

d i s c h a r g e d 5 M arch 1 9 9 2

v i i

Estimates Committee E

Senator Calvert+ Senator Campbell7 Senator Cooney (Chairman) Senator Giles Senator Herron* Senator Macdonald8 Senator Vanstone+# Senator West

* Senator Hill replaced Senator Herron for the consideration of the estimates of the Attorney-General's Department. + Senators Patterson and Walters replaced Senators Calvert and Vanstone for the consideration of the estimates of the Department of Health, Housing and

Community Services. * Senator Newman replaced Senator Vanstone for the consideration of the estimates of the Department of Veterans' Affairs.

Estimates Committee F

Senator Beahan (Chairman) Senator Chapman Senator Crane Senator McKieman Senator Panizza*+ Senator Sherry

* Senator Ferguson replaced Senator Panizza for the consideration of the estimates of the Department of Industrial Relations. + Senator Tierney replaced Senator Panizza for the consideration of the estimates of the Department of Employment, Education and Training.

d i s c h a r g e d 5 M a r c h 1 9 9 2

A p p o i n t e d 5 M a r c h 1 9 9 2

v i i i

1

ESTIMATES COMMITTEE A

REPORT TO THE SENATE

Estimates Committee A presents its report to the Senate.

INTRODUCTION

1. On 5 March 1992, 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 1992 and the Particulars of Certain Proposed Additional

Expenditure in respect of the year ending on 30 June 1992, in relation to the following ministerial portfolios:

. Prime Minister and Cabinet (including the Office of the Governor- General)

. Industry, Technology and Commerce

The Senate also referred to the Committee Particulars of Proposed Additional Expenditure in respect of the year ending on 30 June 1992 in relation to the Parliamentary Departments.

2. The Committee has considered the estimates for the year ending 30 June 1992 together with Program Performance Statements and has received evidence from the President of the Senate (Senator the Hon. Kerry Sibraa), the Minister for Industry, Technology and Commerce (Senator the Hon. John Button) and the Parliamentary

Secretary to the Treasurer (Senator the Hon. Bob McMullan), and officers of the departments and authorities concerned. The Committee met in public session on 27 and 31 March and 1 and 9 April 1992. Copies of the Minutes of Proceedings and the Hansard reports of evidence taken by the Committee are tabled for the information of the Senate in connection with Appropriation Bill (No. 3) 1991-92and Appropriation Bill

(No. 4) 1991-92 and the Appropriation (Parliamentary Departments) Bill 1991-92. Further written explanations furnished by departments will be presented separately.

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

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MATTERS RECOMMENDED FOR FURTHER EXAMINATION BY THE SENATE

PARLIAMENTARY DEPARTMENTS

Department of the Senate

Sexual harassment case (GENERAL)

4. The Committee took evidence on the handling by the Department of the Senate of a case of sexual harassment, an issue which was also the subject of questioning at the Budget estimates hearings. Concern was expressed at the delay in finding suitable alternative employment for the complainant. Questions were also raised relating to the nature of the settlement and the disciplinary action taken by the Department in this case.

Department of the Parliamentary Library

Library Implementation Group response to Auditor-Generals Report No. 6/1991-92 (GENERAL)

5. While some areas of concern are still awaiting detailed consideration, the Committee acknowledges progress made by the Library Implementation Group in implementing the Auditor-General's recommendations.

Department of the Parliamentary Reporting Staff

Use ofAGPS by DPRS and other parliamentary departments (Program 1 - HANSARD)

6. Various matters relating to Government policy that parliamentary printing work remain with the Australian Government Publishing Service (AGPS), were raised at the hearing. Committee members may wish further to discuss these issues in Committee of the Whole. A particular point of concern is the possibility of Parliamentary Departments using private sector alternatives for their printing and publishing requirements, an option that the Department indicated it was currently examining.

Staff recruitment and the employment o f casual staff (Program 1 - HANSARD)

7. The Department, while indicating a desire to reduce its reliance on casual staff, informed the Committee of the difficulties it faced in recruiting full-time Hansard reporters. The Committee accepts that the best casual - full-time balance may be difficult to achieve and is interested in the Department's attempts to do so.

4

Savings from use of camera ready format (Program 1 - HANSARD)

8. The Committee indicates its approval of the savings made by the Department from moving to in-house publishing of camera ready material.

Joint House Department

9. Although the Joint House Department was not seeking additional estimates, the President agreed to respond to questions on catering and gardening issues.

Visits to Parliament House b y the Queen and President Bush (GENERAL)

10. Questions were asked at the hearing about the relative costs of catering for the respective visits to Parliament House by the Queen and President Bush and the types of functions that were scheduled in the building. The Department indicated that the costs of the visits were borne by the ceremonial and

hospitality section of the Department of the Prime Minister and Cabinet.

PRIME MINISTER AND CABINET PORTFOLIO

Department of the Prime Minister and Cabinet

Staffing and resources for the ecologically sustainable development program (Program 1 - DEPARTMENTAL POLICY ADVISING, Component 1.1.2 Industries, Trade and Resources Policy)

11. Questions were asked at the hearing about the transfer of the co-ordinating function for the ecologically sustainable development program from the Department of Primary Industries and Energy to the Department of the Prime Minister and Cabinet, and its staffing and funding implications.

PSC Middle Management Development Program (Program 7 - PUBLIC ADMINISTRATION AND ACCOUNTABILITY, Sub-program 7.1: Public Service Commission)

12. Some Senators expressed concern at the hearing on the justification for the size of the appropriation allocated to the middle management development program and the way the program has been managed.

Methodologies used in value assessment o f forest industries (Program 6- PORTFOLIO POLICY ADVISING AGENCIES, Sub-program 6.4: Resource Assessment Commission)

13. The issue of methodologies used by the Commission, in separate inquiries, to assess the value of forest industries, was discussed at the hearing and some Senators may wish further to discuss this issue in the Committee of the Whole.

5

INDUSTRY, TECHNOLOGY AND COMMERCE PORTFOLIO

Department of Industry, Technology and Commerce

14. Whilst the AIDC (Australian Industry Development Corporation) was not seeking additional appropriations (and is not Budget dependent), the Minister agreed to the attendance at the hearing of representatives from the organisation.

Establishment o f Development Capital Ltd (AUSTRALIAN INDUSTRY DEVELOPMENT CORPORATION - GENERAL)

15. Various matters relating to the establishment and records of the existence of the company Development Capital Ltd, were raised at the hearing.

Financial reporting o f the AIDC (GENERAL)

16. Some Senators expressed concern at the manner in which the AIDC presented its accounts in its 1990-91 Annual Report.

AIDC Investment in Dayton Plaza Building (GENERAL)

17. Concern was expressed at the investment by AIDC in the Dayton Plaza Building in Perth and whether that investment was in accord with AIDC's charter.

Import o f used cars from Japan (Program 1 - INDUSTRYSECTORS, Sub-program 12: Heavy Industries)

18. Matters concerning the decision to impose a discretionary tariff on used cars imported from Japan were discussed at the hearing. Some Senators expressed concern about the Department's involvement in, and advice on, this issue.

Possible grant to BWK company (Program 1 - INDUSTRY SECTORS, Sub-program 1.2: Heavy Industries - TEXTILES, CLOTHING AND FOOTWEAR DEVELOPMENT AUTHORITY)

19. Questions were asked at the hearing about an application for assistance under the raw materials processing program by a German company, BWK, for the establishment of a wool processing plant in Australia. Concern was expressed about this application and its possible effect on the wool processing industry.

Senior appointments within the TCFDA (Program 1 - INDUSTRY SECTORS, Sub­ program 12: Heavy Industries - TEXTILES, CLOTHING AND FOOTWEAR DEVELOPMENT AUTHORTTY)

20. Various matters relating to the circumstances of the departure of the former Chief Executive Officer from that position and his subsequent appointment as

6

adviser to the TCFDA, were discussed at the hearing. Some Senators may wish further to discuss this issue in Committee of the Whole.

Consultation between DITAC and CAA on Advanced Air Traffic System tender (Program 1 - INDUSTRY SECTORS, Sub-program 1.3: Light Industries)

21. The Committee sought details of the Department's evaluation of bids for, and consultation with, C M in relation to the Advanced Air Traffic System contract. The Minister took on notice several significant questions in this regard and some Senators may wish to discuss the issue further in Committee of the Whole.

Consultancy awarded to Mr Paul Batchelor (Program 2 - INDUSTRY

INFRASTRUCTURE, Sub-program 2 1 : Innovation)

22. Questions were asked as to the procedure followed in awarding a consultancy to Mr Paul Batchelor and significant questions were again taken on notice. Some Senators may wish to pursue this issue further in Committee of the Whole.

Customs fraud ( Program 4 - CUSTOMS - GENERAL)

23. The Australian Customs Service responded to questions relating to alleged fraud within a Customs office, and indicated that an inquiry has been established to investigate the allegations.

24. Further questions were asked in relation to external fraud and the evasion of duty, including the practice of double invoicing.

25. The issue of fraud may warrant further discussion in Committee of the Whole.

Matters before the Joint Committee o f Public Accounts/Triple dipping and associated matters (Program 4 - CUSTOMS - GENERAL)

26. Reference was made at the hearing to a document compiled by Mr John Richardson in response to information provided at a previous Estimates hearing. A discussion on the practice of triple dipping and related matters followed and some Senators may wish further to discuss these matters in

Committee of the Whole.

Alleged comment b y the Comptroller-General relating to an Adelaide customs agent (Program 4 - CUSTOMS - GENERAL)

27. The Comptroller-General responded at the hearing to allegations that he had made a derogatory statement about a named individual.

7

MATTERS RELATING TO THE COMMRTEE'S REVIEW OF THE ESTIMATES

Time spent considering additional estimates (GENERAL)

28. Estimates Committee A held four hearings during this round of estimates, the same number as for the 1991 Additional Estimates, although it had been allocated two fewer portfolios. Time spent considering the 1992 Additional Estimates was about 21 hours compared with about 25 hours for the 1991 Additional Estimates.

Attendance by officers from parts o f Prime Minister and Cabinet portfolio not seeking additional appropriations (GENERAL)

29. Some Senators expressed disappointment over the non-attendance of officers from those parts of the Prime Minister and Cabinet portfolio not seeking additional appropriations. This was in contrast to the approach taken by the President and Senator Button in allowing the attendance at the hearings of representatives from the Joint House Department and certain elements of the Industry, Technology and Commerce portfolio respectively, that had not sought additional appropriations. The Committee notes recent comments by the Procedure Committee that the appropriate scope of questioning at additional estimates hearings should be confined to those programs seeking additional funding.1 This issue needs to be resolved definitively to avoid future disputes

between committees and Ministers.

Reference to individuals during the hearings (GENERAL)

30. The issue of the right of individuals to reply to statements made about them during the Estimates proceedings, was raised on several occasions.

RECOMMENDATIONS

31. The Committee recommends that matters raised in this report and all questions taken on notice by witnesses at the Committee's hearings and not answered by 27 April 1992, as listed in the Appendix, be subject to further examination by the Senate.

32. The Committee recommends that the Senate approve, without amendment or request, expenditure in accordance with the estimates considered by the Committee.

Australia, Senate, Procedure Committee, Second Report of 1991.1 2 September 1991, p. 2.

8

ACKNOWLEDGMENTS

33. The Committee expresses its appreciation for the assistance given by the President of the Senate, Senator Sibraa, the Minister for Industry, Technology and Commerce, Senator Button and the Parliamentary Secretary to the Treasurer, Senator McMullan together with officers of the departments examined.

Senator Bruce Childs Chair

9

ESTIMATES COMMITTEE A

RESERVATION BY SENATOR BRONWYN BISHOP- SENATOR BILL OCHEE AND SENATOR IAN CAMPBELL

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

We also attach a letter from the Clerk of the Senate, Mr Harry Evans, correcting Senator Button's incorrect statement that Estimates Committees only attract qualified privilege and confirming that they are covered by Parliamentary privilege as it applies to all Parliamentary proceedings.

PRIME MINISTER AND CABINET

Program 2.1 Machinery of Government

Cabinet Office

Cabinet minutes and supporting documents were sought by the Joint Committee of Public Accounts and supplied only on an in-confidence basis, despite their pivotal importance to a public inquiry.

We are concerned that the Cabinet office denied having received a request from the Committee for the public release of the documents. We also note the efforts made by the Department to prevent the release of these documents to the Court examining the Midford Paramount Case.

Sub-program 3.2 Office of the Status of Women

We recommend that the Senate note once more, the extravagance of the Office of the Status of Women in sending staff on overseas trips of dubious relevance to the Office's responsibilities.

Sub-program 6.3 Economic Planning Advisory Council

We note the increasingly evident irrelevancy of EPAC to the decision-making processes of Government.

Sub-program 6.4 Resource Assessment Commission

The paucity of methodological direction which Senator O'Chee identified in his reservation to the Committee's October 1991 report, appears to be continuing within the RAC. The methodology employed in the South East Forests report differs vastly from that used in the Forest and Timber Inquiry. The South East Forests approach was fundamentally flawed, failing to consider the costs of the cessation of the

associated silviculture and horticultural industries and forestry labour.

11

We reiterate the concern expressed by Senator O'Chee in his previous reservation and recommend the Senate note the disparate approach of the RAC to issues of resource value assessment.

Sub-program 12. Office of the Commonwealth Ombudsman

The cost of the increased workload caused by complaints related to the AIDEX arms exhibition was $72 300. A total of 164 complaints were made in relation to the exhibition.

We are concerned that 99 of these were referred through Senator Spindler, and regard this as a careless and wasteful exercise with questionable motives.

DEPARTMENT OF THE PARLIAMENTARY REPORTING SERVICE

Program 1 Hansard

The DPRS were able to inform the Committee of the full extent of the Australian Government Publishing Service's failure to maintain an organised, up-to-date billing service. During this financial year, this resulted in the Department requesting an extra $1.5 million merely to meet the cost of outstanding accounts from years past.

The AGPS has also seen fit to increase the cost of packaging and posting Hansard by some 120%, without any explanation or negotiation.

We believe this is unacceptable professional conduct from the AGPS, particularly in view of the status of the DPRS as one of its larger clients.

We are concerned that despite the repeal of the statutory requirement forcing Government Departments and authorities to use AGPS, there is now a Government policy obligation forcing them to do exactly the same thing.

We recommend that the Senate note the financial and productivity costs of maintaining this obligation and urge the immediate consideration of private contractors.

DEPARTMENT OF INDUSTRY. TECHNOLOGY AND COMMERCE

Sub-program 12. Heavy Industries

Second-hand car tariff

We are concerned that the officers of the Department were not prepared to discuss the means by which they arrived at the figure of $12000 as the tariff, and were unable to provide any detail of the background study conducted to support the case for the tariff.

12

Textile, Clothing and Footwear Development Authority

The Committee was informed that the previous Chief Executive Mr Leach was only in the position for twelve months. We note the reason given for Mr Leach's departure, that he was unable to deal with the concept of public service accountability. As the Department has appointed him as an adviser, such positions do not evidently demand

such levels of accountability, despite attracting a similar salary.

We note also, that despite Mr Leach's apparent indispensability, the exact terms of his advisory contract have not yet been determined.

Sub-program 1,3 Light Industries

TAAATS tender procedure

We note that the Department was unable to exert discernible influence over the Civil Aviation Authority to consider Australian content principles in awarding the contract for The Australian Advanced Air Traffic System.

Australian Industry Development Corporation

We note that it is rare for the AIDC to appear before Senate Estimates Committees and recommend that the Corporation continue to appear before these Committees in the future.

We believe it is proper for the AIDC to so appear as the government guarantee to the Corporation is tantamount to a continuing appropriation because it exposes the consolidated revenue fund in a virtually unlimited fashion to possible claims in the future.

Financial Reporting

We note with concern the way in which profits and losses were reported in the AIDC's Annual Report. We find it extraordinary that the former Prime Minister's employment statement in November 1991 asserted that the AIDC had made a profit of $9.6 million in the last financial year when only a day earlier it was announced that AIDC Ltd made

a loss of $8.8 million. In spite of Mr Hawke's statements the AIDC made an operating loss of $30.6 million in the last financial year when the operating loss of AIDC Ltd for the same period was $32.9 million.

We also find the reporting of contingent liabilities less than satisfactory.

Chief Executive's Position

The way in which the former Chief Executive of the AIDC, Mr O'Sullivan was replaced was replaced by Mr Van de Merwe is of genuine concern as it became apparent in the hearings that headhunters had been engaged to look for a replacement without Mr O'Sullivan's knowledge while he was still in the position.

13

Sub-program 2.1 Innovation

Development Capital Ltd and the Payment of a Consultancy to Mr Paul Batchelor

It was established that Mr Paul Batchelor, a former director of Mr Russell Coward's collapsed Westmex Ltd was paid $169,000 as a consultant by the Department and was also on the board of Development Capital Ltd together with the Secretary to the Department and the Chairman of the Australian Industry Development Corporation.

We note the admission of the Deputy Secretary of the Department, Dr Bell, that if the company was not reported in last year's annual report, it would have been an oversight. We note also the reluctance of Departmental officials to discuss the circumstances surrounding the awarding of the consultancy contract to Mr Batchelor.

Confusing evidence was presented by the Department as to the nature of the report provided by Mr Batchelor. In oral evidence, Dr Bell informed the Committee that no specific written report was presented by Mr Batchelor.

He said:

"My impression is that this is what I call a 'shoe leather' contract. It is one where somebody gets out and does a piece of work. It is not a contract that is intended to produce a glossy report."

In spite of this answer, the Department later gave a written response which contradicted Dr Bell's statements and referred to a "major report emanating from the contract ... in the form of a concept paper." No indication was provided by the

Department of the length of the this concept paper and indeed whether taxpayers had received full value for their $169,000 contribution.

Conflicting evidence was also produced as to the value of legal expenses incurred by Mr Batchelor. Oral evidence referred to a sum of around $3,128 while written answers referred to a sum of four times that amount.

In a document produced to the Committee it was revealed that the intention of Development Capital Ltd was to "raise $1,000 million from a small group of institutional investors, and the Commonwealth Government with a minimum subscription for full participation of $100 million per investor."

We are gravely concerned about the appropriateness of the appointment as a director of Development Capital Ltd of Mr Batchelor given his role in the failed Westmex Ltd and the timing of his appointment as it was only 16 days after he was awarded the consultancy by he Department.

Dr Bell also revealed that the consultancy had not been submitted to any tender process, he was just given the job. This casts further doubt on the propriety on the DITAC contracts for Mr Batchelor.

14

The involvement of the responsible Minister, Senator Button is also under question as a concept paper written by Mr Batchelor stated:

“This paper has been prepared at the request of Senator, The Honourable J. N. Button, The Minister for Industry Technology and Commerce."

Despite this, we find it extraordinary that the Minister said he was unaware that a company of this nature was still in existence considering that the Secretary of his Department was on the board.

Program 4 Customs

Internal Fraud

The Committee was informed of allegations of internal fraud within the Clyde Customs Office, and the inquiry currently underway within the Internal Affairs Unit. We were informed of similar inquiries relating to a Customs Officer allegedly leaving the country in possession of duty-free goods that had been tampered with, and one whose luggage was identified by a sniffer dog.

We recommend that the Senate continue to monitor the outcome of these inquiries. We note that a guarantee was given by the Comptroller that people prepared to give evidence in this inquiry would not be harasses in any way, either privately or professionally.

Submission by Mr John Richardson

The Committee considered the submission tabled in the Senate from an Adelaide Customs agent, Mr John Richardson. The submission detailed allegations that the Australian Customs Service and the Comptroller General, Mr Frank Kelly, in particular, had misled previous Senate Estimates Committees and the Senate in answers to

questions on notice. Evidence given at the hearing attempted to refute the Richardson allegations but instead served to cast further doubt upon the accuracy and honesty of answers provided by the Customs Service.

Particular allegations that the Comptroller General had criticised Mr Richardson were pursued and the evidence of Mr Kelly was found to be directly at odds with evidence provided to the Joint Committee of Public Accounts investigation into the Midford

Paramount matter.

We recommend that the submission of Mr Richardson and the answers provided by the Customs Service be fully considered by the Joint Parliamentary Committee of Public Accounts' Midford inquiry.

15

Program 5 Austrade

Sub-Program 5.4 Export Finance and Insurance Corporation

Subsidised Home Loans

It was revealed that 67 officers in Sydney within EFIC are in receipt of subsidised home loans to an average value of $100,000 totalling some $6.7 million. The largest loan is to the value of $210,000. Information provided that the implicit subsidy totals some $300,000 per annum should be of concern to the Senate.

SENATOR BRONWYN BISHOP Senator for New South Wales

S Senator for Queensland

SENATOR IAN CAMPBELL Senator for Western Australia

16

AUSTRALIAN SENATE

OFFICE OF THE CLERK OF THE SENATE

PARLIAMENT HOUSE

CANBERRA AC.T. 2600

TEL. (06) 277 33SO FAX (06) 277 3199

dhA/1258

13 April 1992

Senator B. Bishop S I.94 Parliament House CANBERRA ACT 2600

Dear Senator Bishop

PARLIAMENTARY PRIVILEGE - ESTIMATES COMMITTEES

You have asked for a brief note on the privilege attaching to proceedings in Estimates Committees, to confirm that such proceedings are absolutely privileged, following the statement by the Leader of the Government, Senator Button, in Estimates Committee A on 31 March 1992 (Hansard, p. A108) th a t "The privilege accorded to this Estimates Committee in terms of defamation is only qualified privilege".

There is no doubt that proceedings in Estimates Committees, as in all parliamentary committees, attract the particularly wide type of absolute privilege known as parliamentary privilege. If there had previously been any doubt about this, any such doubt would have been dispelled by the Parliam entary Privileges Act 1987, which provides in subsection 16(2) that proceedings in Parliament means:

"all words spoken and acts done in the course of, or for purposes of or incidental to, the transacting of the business of a House or of a committee, and, without limiting the generality of the foregoing, includes -

(a) the giving of evidence before a House or a committee, and evidence so given;

(b) the presentation or submission of a document to a House or a committee;

17

and

(d) the formulation, making or publication of a document, including a report, by or pursuant to an order of a House or a committee and the document so formulated, made or published."

Subsection 3(1) of the Act defines a committee as any committee of either or of both Houses and any subcommittee of such a committee. Other provisions of section 16 define the scope of the absolute privilege attaching to proceedings in the Parliament.

The Leader of the Government may have been thinking of the powers of Estimates Committees. Unlike other Senate committees, Estimates Committees do not have the power to summon witnesses or to require the production of documents. Other committees obtain that power by delegation from the Senate under the relevant standing order or resolution of appointment. This, however, is a purely procedural matter, and does not affect the privilege of their proceedings.

Please let me know if I can be of any further assistance.

Yours sincerely

(Harry Evans)

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PA R LIA M EN T O F AUSTRALIA · T H E S E N A T E

SENATOR JIM SHORT LIBERAL SENATOR FOR VICTORIA

SHADOW MINISTER FOR FINANCE l ASSISTING THE LEADER O N CO M M O NW EALTH/STATE RELATIONS

24 April 1992

Mr Peter Hamburger Senate Estimates C om m ittee A Parliament House CANBERRA ACT 2600

Dear Mr Hamburger,

By way of reservation, I recommend that the following m atters be further considered by the Senate:

Prime Minister & Cabinet

1. Role of the Com m onw ealth/State Relations Secretariat, and policy matters with regard to CommonwealthyState relations.

2. Resource A ssessm en t Commission

3. Constituent letters to th e Prime Minister.

Yniira cinrnralv

19

TH E SENATE

ESTIMATES COMMITTEE A

Minutes of Proceedings

No. 31

Friday, 27 March 1992

1. MEETING: The Committee met in public session at 9.03 am in the Main Committee Room. Senator Childs took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE FOR 1991-92; PARLIAM ENTARY DEPARTMENTS: The Committee commenced its consideration of the Proposed Additional Expenditure of the Parliamentary Departments.

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

Department o f the Senate

Mr Harry Evans, Clerk of the Senate Ms Anne Lynch, Deputy Clerk of the Senate Mr John Vander Wyk, Clerk-Assistant (Corporate Management) Mr Peter O'Keeffe, Clerk-Assistant (Committees)

Mr Cleaver Elliott, Clerk-Assistant (Procedure) Ms Michele Cornwell, Clerk-Assistant (Table) Mr Robert Alison, Usher of the Black Rod Mr Graeme Nankervis, Director, Financial Management

Ms Helen Donaldson, Director, Human Resource Development Mr Anthony Curtis, Security Controller

Department o f the Parliamentary Library

Mr John Templeton, Convenor, Library Implementation Group Mr John Brudenall, Deputy Parliamentary Librarian Mr Derek Woolner, Acting Head, Parliamentary Research Service Mr Rob Johnston, Adviser, Evaluation and Audit

Department o f the Parliamentary Reporting Staff

Mr John Templeton, Secretary Mr Bemie Harris, Chief Hansard Reporter, Hansard Division Ms Christine Upton, General Manager, Parliamentary Information Systems Office

Mr Harry Hall, Manager, Sound and Vision Office Mr John Walsh, Assistant Secretary, Corporate Management Branch

23

Joint House Department

Mr M. Bolton, Secretary Mr R. Wedgewood, Assistant Secretary Mr F. Bradley, Assistant Secretary

Department of Finance

Mr B. Hackett Mr R. Fisher

3. STATEMENT BY THE CHAIR: The Chair reported the resolution of the Senate of 5 March 1992 referring matters to the estimates committees and made an opening statement.

4. CONSIDERATION OF THE ADD ITIO NAL ESTIMATES: The Chair called on in turn the estimates of each of the Department of the Senate, the Department of the Parliamentary Library and the Department of the Parliamentary Reporting Staff, inviting general questions and then questions in respect of each program.

The Committee resolved to incorporate in the transcript of evidence, a document entitled "Library Implementation Group Progress Report".

5. SUSPENSION OF SITTING: The Committee suspended its sitting between 11.25 am and 11.30 am.

6. PARTICULARS OF PROPOSED ADD ITIO NAL EXPENDITURE FOR 1991-92; OFFICE OF THE GOVERNOR-GENERAL· The Chair announced that, there being no questions concerning the proposed additional estimates of the Office of the Governor-General, officers of the Governor-General's Office would not be called.

7. CONSIDERATION OF THE ADDITIO NAL ESTIMATES: The Committee resumed its consideration of the additional estimates of the parliamentary departments. The Committee noted the President's agreement to a request that officers of the Joint House Department responsible for certain functions attend, although the Department was not seeking additional funds.

The Committee concluded its examination of the Particulars of Proposed Additional Expenditure for the service of the year ending on 30 June 1992 and Particulars of Certain Proposed Additional Expenditure in respect of the year ending on 30 June 1992 in relation to the parliamentary departments, subject to undertakings by the President and officers to provide additional information to the Committee.

8. SUSPENSION OF SITT ING: The Committee suspended its sitting from 12.05 pm to 2.02 pm.

24

9. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE FOR 1991­ 92: PRIME MINISTER'S PORTFOLIO: The Committee commenced its consideration of the Proposed Additional Expenditure of the Prime Minister's Portfolio.

In attendance was Senator the Hon. Bob McMullan, Parliamentary Secretary to the Treasurer, representing the Prime Minister, accompanied by the following officers:

Department o f the Prime Minister and Cabinet

Mr W. Gray, Chief Executive Officer, Office of Northern Development Ms P. Turner, Deputy Secretary Mr P. Vaughan, First Assistant Secretary, Corporate Services Division Ms M. O'Loughlin, First Assistant Secretary, Social Policy Division

Ms A Tinney, Secretary, Official Establishments Mr N. Edwards, First Assistant Secretary, Office of Multicultural Affairs Mr W.J. Blick, First Assistant Secretary, Government Division Mr M. Waller, First Assistant Secretary, Industries, Trade and Resources

Division Ms A Leahy, Assistant Secretary, Corporate Support Branch Ms P. Mercer, Acting First Assistant Secretary, Office of Status of Women Mr W. Jackson, Assistant Secretary, Commonwealth-State RelationsSecretariat Mr B.V. Cogan, Principal Adviser, Ceremonial and Information Services Group

Office of the Governor-General

Mr D. Sturkey, Official Secretary Mr C. Bell, Acting Deputy Official Secretary Mr B. Edwards Mr G. Johnstone Commander P. Landon

Resource Assessment Commission

Mr R. Mills, Head of Office Ms B. Belcher Mr R. Kenchington Mr P. Clyde

Mr J. Chesson Mr M. Tucker Mr M. Stretting Mr C. Hickey Mr G. Tomlinson

Office of Inspector General

Mr P. Moss, Assistant Inspector General Mr D. Roberts, Executive Officer

25

Merit Protection Review Agency

Ms A. Forward, Director

Office of National Assessments

Mr R. Webb, Acting Deputy Director General Ms M. Burke

Ombudsman

Ms S. Pigeon Mr B. Hugg, Executive Officer

Public Service Commission

Mr P. Kennedy, Deputy Commissioner Mr E. Attridge, First Assistant Commissioner Ms M. Cane, First Assistant Commissioner Mr B. Gleeson, Assistant Commissioner Mr R. Harding, Assistant Commissioner Ms J. West, Acting Assistant Commissioner Ms R. Martindale, Director

Australian Science and Technology Council

Dr G. Burch, Acting Secretary Dr M. Wardrop, Branch Director Ms K. Curtis, Acting Branch Director

Department o f Finance

Mr B. Anderson, Finance Officer Mr G. Schmid, Finance Officer

10. STATEMENT B Y T H E CHAIR: The Chair reported the resolution of the Senate of 5 March 1992 referring matters to the estimates committees and made an opening statement.

11. CONSIDERATION OF TIIE ΛΟΟΠΊΟΝΛΕ ESTIMATES: The Chair called on the additional estimates of the Department of the Prime Minister and Cabinet, inviting general questions and then questions in respect of Programs 1 and 2.

The Committee noted that the Parliamentary Secretary to the Prime Minister, the Hon. L. Brereton, had declined a request that officers with certain responsibilities attend, citing the absence of additional estimates in respect of the programs in which the officers were employed.

26

The Committee resolved to incorporate in the transcript of evidence a question placed on notice by Senator Short concerning overseas travel by officers.

12. ADJOURNMENT: The Committee adjourned at 4.15 pm.

13. ATTENDANCE: Senators Childs (Chair), Bishop, Campbell, Coates, O'Chee, Walsh.

Senators Tambling and Short also attended.

CONFIRMED

Bruce Childs Chair

27

T H E SENATE

Tuesday, 31 March 1992

ESTIMATES COMMITTEE A

Minutes of Proceedings

No. 32

1. MEETING: The Committee met in public session at 7.37 pm in the Main Committee room. Senator Childs took the Chair.

2. PARTICULARS O F PROPOSED ADDITIONAL E X PE N D IT U R E FOR 1991-92; INDUSTRY, TECHNOLOGY A N D COMMERCE PORTFOLIO: The Committee commenced its consideration of the proposed additional expenditure of the Department of Industry, Technology and Commerce.

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

Department o f Industry, Technology and Commerce

Dr J. Bell, Deputy Secretary Mr R. Samarcq, First Assistant Secretary, Resource Processing and Environment Division Mr R. McKeon, Acting First Assistant Secretary, Heavy Industries Division Mr R. Palfreyman, Acting Chief Executive Officer, Textiles, Clothing and

Footwear Development Authority Ms H. Georgopolous, Senior Manager, Textiles, Clothing and Footwear Development Authority Dr R. Badger, Acting First Assistant Secretary, Light Industries Division Dr J. Boyd, Deputy Director, Australian Space Office Mr M. Farrow, First Assistant Secretary, Construction and Service Industries

Division Dr M. Fitzpatrick, First Assistant Secretary, Innovation Division Dr D. Taylor, Acting First Assistant Secretary, International Division Mr D. Stafford, Director, Export Credit Policy Section Dr R. Hawkins, Director, Bureau of Industry Economics Mr K. Besgrove, General Manager, National Industry Extension Service Mr R. Trenberth, Deputy Secretary Mr J. Stanford, First Assistant Secretary, Policy and Projects Division Mr D. McCarthy, General Manager, Multifunction Polis Group Mr P. Smith, Commissioner, Patent, Trade Marks and Designs Offices Dr J. Hagan, Assistant Secretary, Program Services Mr John Birch, Executive Director, National Standards Commission Mr J. McGuire, Executive Director, Anti-Dumping Authority

28

Mr N. Hurst, First Assistant Secretary, Corporate Services Division Mr F. Kelly, Comptroller-General, Australian Customs Service Mr D. O'Connor, Deputy Comptroller-General, Australian Customs Service Mr B. Bissaker, National Manager, Industry Assistance

Mr R. Janeszco, Acting National Manager, Import/Export Control Mr K. Stilling, National Manager, Inland Revenue Mr C. Vassarotti, national Manager, Barrier Control Mr P. Bums, National Manager, Coastwatch

Mr L Jones, National Manager, Passenger Processing Mr J. Hawksworth, National Manager, Investigation Ms V. Stretton, National Manager, Corporate Services Mr P. Watson, National Manager, Systems

Mr J. Jeffrey, Manager, Executive Support Mr M. Brasher, Manager, Resources Management Mrs P. Bridge, Director, Budgets and Accounting Mr AW. Blewitt, Director, Corporate Services Department Dr T.E. Hyde, Principal Secretary, Office of the Chief Executive and Board

Mr R.J. Garrett, General Manger, Corporate Finance Branch Ms L Thorbum, Acting Manager, Ministerial and Government Business, Office of the Chief Executive and Board Mr G. Van der Merwe, Chief Executive

Mr R. McDonnell, General Manager, Corporate Affairs Mr D. Milling, General Manager, Accounting and Planning Mr G. Lawless, Managing Director Mr S. Smith, Divisional Manager (Lending)

Mr G. Nottle, Divisional Manager (Treasury and Loans Administration) Ms C. Flanagan, General Counsel,

Department of Finance

Mr Martin Gallagher, Chief Finance Officer Mr Ismo Rama, Assistant Director, Finance Mr Jeff Hurst, Senior Finance Officer

Mr Hian Yap, Senior Finance Officer

3. STATEMENT BY TEE CHAIR: The Chair reported the resolution of the Senate of 5 March 1992 referring matters to the estimates committees and made an opening statement.

4. CONSIDERATION OF THE ADDITIONAL ESTIMATES: The Chair called on the additional estimates of the Industry, Technology and Commerce Portfolio, inviting general questions and then questions in respect of each program.

The Committee agreed to consider first the additional estimates of programs and parts of programs the officers of which had travelled from interstate for the hearing.

The Committee noted the Minister's agreement to a request for the attendance of officers from parts of the Portfolio not seeking additional estimates.

29

5. ADJOURNMENT: The Committee adjourned at 11.41 pm.

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

CONFIRMED

Bruce Childs Chair

30

THE SENATE

Wednesday, 1 April 1992

ESTIMATES COMMITTEE A

Minutes of Proceedings

No. 33

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

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE FOR 1991-92: PRIME MINISTER’S PORTFOLIO: The Committee resumed its consideration of the Proposed Expenditure of the Prime Minister's Portfolio.

In attendance was Senator the Hon. Bob McMullan, Parliamentary Secretary to the Treasurer, representing the Prime Minister, accompanied by the following officers:

Department o f the Prime Minister and Cabinet

Ms P. Turner, Deputy Secretary Mr P. Vaughan, First Assistant Secretary, Corporate Services Division Ms A Leahy, Assistant Secretary, Corporate Support Branch Ms H. L'Orange, First Assistant Secretary, Office of Status of Women

Mr WJ. Blick, First Assistant Secretary, Government Division Mr R. Whitelaw, Acting Director, Economic Policy Advisory Council Ms Leonie Wing, Executive Secretary

Resource Assessment Commission

Mr R. Mills, Head of Office Ms B. Belcher Mr R. Kenchington Mr P. Clyde Mr J. Chesson

Mr M. Tucker Mr M. Streeting Mr C. Hickey Mr G. Tomlinson

31

Officer of Inspector General

Mr P. Moss, Assistant Inspector General Mr D. Roberts, Executive Officer

Merit Protection Review Agency:

Anne Forward, Director

Office of National Assessments

Mr R. Webb, Acting Deputy Director General Ms M. Burke

Ombudsman

Ms S. Pigeon Mr B. Hugg, Executive Officer

Public Service Commission

Mr P. Kennedy, Deputy Commissioner Mr E. Attridge, First Assistant Commissioner Ms M. Cane, First Assistant Commissioner Mr B. Gleeson, Assistant Commissioner Mr R. Harding, Assistant Commissioner Ms J. West, Acting Assistant Commissioner Ms R. Martindale, Director Mr P. CoUis

Australian Science and Technology Council

Dr M. Wardrop, Acting Secretary Mr J. Madden, Acting Branch Director Ms E. Smith, Acting Branch Director

Department of Finance

Mr B. Anderson, Officer Mr G. Schmid, Officer

3. CONSIDERATION OF THE ADDITIONAL ESTIMATES: The Chair called on Program 3.

The Committee received a document providing a derivation of staffing estimates for the Public Service Commission.

The Committee concluded its examination of the Particulars of Proposed Additional Expenditure for the service of the year ending on 30 June 1992 and

32

Particulars of Certain Proposed Additional Expenditure in respect of the year ending on 30 June 1992 in relation to the Prime Minister's Portfolio, subject to undertakings by the Parliamentary Secretary and officers to provide additional information to the Committee.

4. ADJOURNMENT: The Committee adjourned at 11.20 pm.

5. ATTENDANCE: Senators Childs (Chair), Bishop, Campbell, Coates, O'Chee, Walsh.

Senators Boswell, Tambling and Watson also attended.

CONFIRMED

Bruce Childs Chair

33

THE SENATE

ESTIMATES COMMITTEE A

Minutes of Proceedings

No. 34

Thursday, 9 April 1992

1. MEETING: The Committee met in public session at 9.05 am in the Main Committee room. Senator Childs took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE FOR 1991-92: INDUSTRY, TECHNOLOGY A N D COMMERCE PORTFOLIO: The Committee resumed its consideration of the Proposed Additional Expenditure of the Industry, Technology and Commerce portfolio.

In attendance was Senator McMulIan, Parliamentary Secretary to the Treasurer, representing the Minister for Industry, Technology and Commerce, accompanied by the following officers:

Department of Industry, Technology and Commerce

Dr J. Bell, Deputy Secretary Mr R. Samarcq, First Assistant Secretary, Resource Processing and Environment Division Mr R. McKeon, Acting First Assistant Secretary, Heavy Industries Division Dr R. Badger, Acting First Assistant Secretary, Light Industries Division Dr J. Boyd, Deputy Director, Australian Space Office Mr M. Farrow, First Assistant Secretary, Construction and Service Industries

Division Dr M. Fitzpatrick, First Assistant Secretary, Innovation Division Dr D. Taylor, Acting First Assistant Secretary, International Division Mr D. Stafford, Director, Export Credit Policy Section Mr J. Ryan, Deputy Director, Bureau of Industry Economics Mr K. Besgrove, General Manager, National Industry Extension Service Mr R. Trenberth, Deputy Secretary, Department of Industry, Technology and

Commerce Mr B. Meredyth, Assistant Secretary, Policy Co-ordination and Parliamentary Branch Mr D. McCarthy, General Manager, Multifunction Polls Group Mr P. Smith, Commissioner, Patent, Trade Marks and Designs Offices Dr J. Hagan, Assistant Secretary, Program Services Mr J. McGuire, Executive Director, Anti-Dumping Authority Mr N. Hurst, First Assistant Secretary, Corporate Services Division

34

Australian Customs Service

Mr F Kelly, Comptroller-General Mr D. O'Connor, Deputy Comptroller-General Mr B. Bissaker, National Manager, Industry Assistance Mr R. Janeszco, Acting National Manager, Import/Export Control Mr K. Stilling, National Manager, Inland Revenue

Mr C. Vassarotti, National Manager, Barrier Control Mr P. Bums, National Manager, Coastwatch Mr L Jones, National Manager, Passenger Processing Mr J. Hawksworth, National Manager, Investigation Ms V. Stretton, National Manager, Corporate Services

Mr P. Watson, National Manager, Systems Mr J. Jeffrey, Manager, Executive Support Mr M. Brasher, Manager, Resources Management Mrs P. Bridge, Director, Budgets and Accounting

Mr Richard Miller, Manager, Legal Services Mr L. Roux, Director, Import/Export Control

Commonwealth Scientific and Industrial Research Organisation

Mr AW. Blewitt, Director, Corporate Services Department Dr T.E. Hyde, Principal Secretary, Office of the Chief Executive and Board Mr R. J. Garrett, General Manager, Corporate Finance Branch Ms L. Thorbum, Acting Manager, Ministerial and Government Business, Office

of the Chief Executive and Board

Department of Finance

Dr M. Gallagher, Chief Finance Officer Mr I. Rama, Finance Officer Mr D. Wallace, Assistant Secretary, Industry, Technology and Culture Branch

3. CONSIDERATION OF THE ADDITIONAL ESTIMATES: The Chair called on Programs 1 and 2.

4. SUSPENSION OF SITTING: The Committee suspended its sitting from 1.00 pm to 2.00 pm.

5. CONSIDERATION OF THE ADDITIONAL ESTIMATES: The Chair called on Programs 2, 4 and 7.

6. SUSPENSION OF SITT ING: The Committee suspended its sitting from 6.32 pm to 7.34 pm.

7. CONSIDERATION OF THE ADDITIONAL ESTIMATES: The Chair called on Program 4.

35

The Committee resolved to incorporate in the transcript of evidence questions placed on notice by Senator Boswell concerning anti-dumping and countervailing actions.

The Committee concluded its examination of the Particulars of Proposed Additional Expenditure for the service of the year ending on 30 June 1992 and Particulars of Certain Proposed Additional Expenditure in respect of the year ending on 30 June 1992 in relation to the Industry, Technology and Commerce Portfolio, subject to undertakings by the Parliamentary Secretary and officers to provide additional information to the Committee.

8. ADJOURNMENT: The Committee adjourned at 7.55 pm.

9. ATTENDANCE: Senators Childs (Chair), Bishop, Campbell and Coates.

CONFIRMED

Bruce Childs Chair

36

THE SENATE

Thursday, 28 April 1992

ESTIMATES COMMITTEE A

Minutes of Proceedings

No. 35

1. MEETING: The Committee met in private session at 12.32 pm in Committee Room 1S6. Senator Childs took the Chair.

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

Senator Coates moved that the Committee adopt paragraphs 1, 2, 32 and 33 of the draft previously circulated as the report of the Committee.

The Committee resolved to meet to further consider the report at 1.55 pm, 28 April 1992 in the Government Advisers' Waiting Area adjacent to the Senate Chamber.

3. ADJOURNMENT: The Committee adjourned at 12.37 pm.

4. ATTENDANCE: Senators Childs (Chair), Coates and Walsh.

CONFIRMED

Bruce Childs Chair

37

ESTIMATES COMMITTEE Λ

Minutes o f Proceedings

No. 36

Thursday, 28 April 1992

1. MEETING: The Committee met in private session at 1.56 pm in the Government Advisers' Waiting Area adjacent to the Senate Chamber. Senator Childs took the Chair.

2. MINUTES: The Committee adopted the minutes of meetings 31 to 35, held on 27 and 31 March and 1, 9 and 28 April 1992.

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

Senator Coates withdrew his motion that the Committee adopt paragraphs 1, 2, 32 and 33 of the draft previously circulated as the report of the Committee.

The Committee resolved to adopt amendments previously circulated in the name of Senator Campbell.

The Committee resolved to adopt the draft report, as amended, as a report of the Committee.

Senators Bishop and O'Chee indicated their dissent from the report and that they would attach a reservation to the report.

4. ADJOURNMENT: The Committee adjourned at 1.59 pm.

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

CERTIFIED CORRECT

Bruce Childs Chair

38

ESTIMATES COMMiTTEE A HANSARD INDEX BY PROGRAM

27 March 1992 A1-67

31 March 1992 A69-118

1 April 1992 A119-161

9 April 1992 A163-266

PARLIAMENT Senate General A2

Program 1 Principal Advisers A8

Program 4 Committee Office A10

Department of Parliamentary Library General A12

Department of Parliamentary Reporting Staff General A21

Program 1 Hansard A22

Program 2 Information Systems A32

Joint House Department General A37

PRIME MINISTER'S PORTFOLIO Office of the Governor-General General A32

Department of the Prime Minister and Cabinet General A41

Program 1.1.2 Industries, Trade and Resources Policy A47

1.1.5 Commonwealth-State Relations A57

1.1.6 Office of Northern Development A45

Program 2.2 Support Services A62

Program 3.1 Office of Multicultural Affairs A120

3.2 Status of Women A65

Program 4 Corporate Services A122

Program 6.3 Office of the Economic Planning Advisory Council A129 6.4 Office of the Resource Assessment Commission A133

Program 7.1 Public Service Commission A143

7.2 Office of the Commonwealth Ombudsman A152

7.4 Office of the Inspector General of Intelligence and Security A159

INDUSTRY, TECHNOLOGY AND COMMERCE PORTFOLIO General A164

Program 1.2 Heavy Industries A70.A166

1.3 Light Industries A177

1.4 Construction and Service Industries A184

39

Program 2 Industry Infrastructure A188

2.1 Innovation A189

2.5 Policy and Projects A203

2.6 Industrial Property A207

2.9 National Standards Commission A87

2.10 Anti-Dumping Authority A210

Program 4 Customs A211

4.1 Industry Assistance A222.A261

4.5 Coastwatch A221

Program 5.4 Export Finance and Insurance A87

Program 7 Commonwealth Scientific and Industrial Research Organisation A242

40

ESTIMATES COMMITTEE A HANSARD INDEX, BY SUBJECT

Friday, 27 March 1992

Subject Page

PARLIAMENT

Attendees A1

Chairman's opening statement A1 -2

Department of the Senate

General Statement by the President A2

Reduction in funding for Procedure Office's seminar program A2-3

Review of sexual harassment case A3-7

Training of security attendants A5-6

Sexual harassment policy guidelines A6

Variation in revenue from sale of surplus assets A7

Parliamentary Education Office teaching fellowship program A7

Parliament Stack - IBM compatibility A7-8

Sale of parliamentary education material A8

Program 1 - Principal Advisers Appointment of legal counsel to Privileges Committee A8-10

Program 4 - Committee Office Funding of Standing Committee on Rural and Regional Affairs A10

Standing Committee on Environment, Recreation and the Arts secretariat A10-12

Department of the Parliamentary Library

General Statement by the President A12

Implementation of recommendations of Audit Report A t2-18

Severance pay A18-19

Surveys - discussions with Senators A19-20

Return of overdue books A20-21

Earth Summit in Rio de Janeiro - support by Research Service A21

Department of the Parliamentary Reporting Staff

General Statement by the President A21-22

41

Program 1 - Hansard Delay in lodgement of accounts by AGPS Bound volumes of Hansard Proposed arrangement with Department of Finance for additional

funding for committee costs Travel costs Staff recruitment Removal expenses Use of staff during non-sitting weeks Casual staff Borrowing against 1992-93 Forward Estimates Hansards - increase in requests, packaging and postage Statutory requirement to use AGPS Printing volume for both Houses Preparation costs Editorial support - subcontractor

Program 2 - Information Systems Increase in number of telephone calls Fax machines - Fax stream

- Cost of IDD calls - A4 printing facility Telephone system - savings measures

- lightning strike - savings on telecommunications subprogram - cost of call forward facility from telephones in Parliament House - E-mail - Use by cleaning contractors

Joint House Department

General Use of telephones by cleaning contractors Visit by President Bush Visit by Queen Elizabeth II

PRIME MINISTER'S PORTFOLIO

Office of the Governor-General Statement by Chairman

Department of the Prime Minister and Cabinet

Attendees Statement by the Minister

A22-23 A23

A23-24

A24-25.A31 A25-26 A26 A26 A26-27

A27

A27-28 A28-31 A31 A31-32

A32

A32-33

A33 A35 A35

A33-34 A34-35 A35

A35

A35-36 A36-37

A37

A37-40 A38-40

A32

A40-41 A41

42

General Mr Codd's departure from Department A41 -42

Auditor-General's Report: accounting of assets A42

Release of Cabinet documents A42-44

Appearance of departmental officials A44-45

Overseas travel or secondment by officers of the department in 1991/92 A67

Program 1 - Departmental Policy Advising

Sub-program 1. /_£?; Industries, Trade and Resources Policy Ecologically sustainable development program - funds appropriated from DPIE A47-48

- coordination responsibility A48-49

- staffing A49-50

- participation in UNCED, Brazil A50.A52

- coordination of State and Territory briefings A50-51

- Allocation of balance of $388,000 A51

- consultants A52

- establishment of committees to deal with outstanding issues A54-55 - DASET representation on committees A55

Role of PM&C in deliberations of Expenditure Review Committee A53-54 Resource Security Unit - resources, establishment, role A55.A57

- negotiations with States - role A56

- relationship with RAC A56

- Forest Conservation and Development Bill - input into policy, IDC A56

- approaches to unit in relation to types of projects A57

Negotiations with States on resource security issues - responsibility of line departments A55

Sub-program 1.1.5: Commonwealth-State Relations Effect of cancellation of Special Premiers Conference A57-59

Commonwealth's response to proposals from Premiers and Chief Ministers A57-58 One Nation - consultation with States A59-60

Premiers' proposals - tax sharing A60-61

- council for the Australian federation A62

Proposed Special Premiers Conference A61-62

Briefings by secretariat A61

Tax compensation to NSW for sale of GIO A62

Sub-program 1.1.6: Office of Northern Development Office of Northern Development - budgeting provisions A45-46

43

- economic development strategy - social justice strategy - coordination between the two strategies

Program 2 - Government Support Services

Sub-program 2J>: Support Services Visit by President Bush Visit by Queen Elizabeth II Correspondence

- handling when politicians retire or resign and whether correspondence to former Prime Minister was released by present Prime Minister

Program 3 - Special Policy and Program Functions

Sub-program 3.2: Status of Women Actions plans - National Agenda for Women and Second Periodic Report o f Australia under the United Nations Convention on the

Elimination o f All Forms of Discrimination Against Women Attendance at the Global Assembly of Women in the Environment and World Women's Congress for a Healthy Planet

Tuesday, 31 March 1992

INDUSTRY, TECHNOLOGY AND COMMERCE PORTFOLIO

Attendees Chairman's opening statement

General Statement by the Minister

A46

A46-47 A47

A62

A62-64

A64-65

A65-66

A66-67

A69-70 A70

A70

Program 1 - Industry Sectors

Sub-program /_2: Heavy Industries Textile, Clothing and Footwear Development Authority Raw materials processing program - wool processing A70-74, A84-87

Employment of Mr Leach A74-79

Allocation of additional funds for development assistance strategy A79-81

Education program - award restructuring - grant to the Amalgamated Footwear and Textile Workers Union of Australia A81

- resource material A83-84

44

- management - grants for training

A84 A84

Industry's infrastructure program - grants to unions - increase in funding

A81-82 A82-83

TCF tariff reductions A83

Program 2: Industry Infrastructure

Sub-program 2 9 - National Standards Commission Daylight saving A87

Program 5: Austrade

Sub-program 5.4 - Export Finance and Insurance

Export Finance and Insurance Corporation (EFIC) - consultants A87

- Dr Fisher A87

- home loans for senior officers A87-89

- borrowings, concessional rates, loans A90-93

- Runmere contract, performance bond to Mr Cantor, legal advice A93-95 - defence equipment exporter A95-96

Australian Industry Development Corporation (AIDC) - attendance of representatives A96

- appointment of Chief Executive A96-97.115

- profit and loss statements, financial viability, government guarantee A98-100,105,115-117

- Dayton Plaza A100-101,103,110-112

-Charter A101-102,112

- venture capital A103

- appointments to boards and companies A104,108-109

- contingent liabilities A104-105

- fund for loans to industry A106

- Mr Paul Batchelor's relationship with AIDC; shelf companyA106-110,112-114 - accountability A110

- Development Capital Ltd A115

- corporatisation of AIDC, banking licence A115-117

- AIDC and EFIC A117-118

45

Wednesday, 1 April 1992

Department of the Prime Minister and Cabinet

General Attendees Chairman's opening statement

Program 3: Special Policy and Program Functions

Sub-program 3.1 - Office of Multicultural Affairs Coordination of community relation strategy Aboriginal medium resource groups - community speaker's program and media monitoring Future structure of Office Aboriginal Deaths in Custody report

Program 4 - Corporate Services Redundancy payment to Mr Codd Change to departmental structure Expenditure Review Committee: PM&C function Auditor-General's Report No.23

- assets - quality of advice to ERC Release of Cabinet documents - Public Accounts Committee

- conclusive certificates

Program 6: Portfolio Policy Advising Agencies

Sub-program 6.3 - Office of the Economic Planning Advisory Council (EPAC) Restructuring, mission statement, federalism policy, publications

Sub-program 6.4 - Office of the Resource Assessment Commission Allocation of a car to Dr James United Nations conference on the environment and development - staff resources used in preparation South-east forests: paper, media release and abstract Mr Nicolson: employment; appearance before Committee Forests: research project on free market environmentalism

Program 7: Public Administration and Accountability

Sub-program 7.1 - Public Service Commission Human resource management - middle management development courses; SEP training initiative; audit by Auditor-General

A119-120 A120

A120-121

A121 A121

A121-122

A122 A122

A122-124

A123

A124-126

A126-128 A128

A129-133

A133-135

A135

A135-140 A140-142 A142-143

A143-149

46

Categories of staff Applications under Freedom of Information Act Consultants

A150 A150

A150-152

Sub-program 7J? - Office o f the Commonwealth Ombudsman Secondment of departmental staff to the Ombudsman's Office AIDEX complaints Tax issues: resources Allocation of cases

Record of outcome of complaints

A152-154

A154-155,158-159 A155-156 A156-157 A157-158

Sub-program 7.4 - Office o f the Inspector General o f Intelligence and Security New inquiries A159-160

Jursidiction A160-161

Thursday, 9 April 1992

Errata to page A13: Department of the Parliamentary Library Implementation Group Progress Report Errata to page A93: loans in Indonesia

Department of Industry, Technology and Commerce

Attendees Chairman's opening statement

A163-164 A164

General Internal fraud A164-165

Program 1: Industry Sectors

Sub-program 1 2 - Heavy Industries Importation of used cars from Japan A166-177

Sub-program 1.3 - Light Industries Aerospace and Biological Industries Branch - advice to CAA on the Advanced Australian Air Traffic system A177-183

Sub-program 1.4 - Construction and Service Industries Building and Construction Industry Reform Council A184-188

Program 2: Industry Infrastructure Pool development funds A188-189

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Sub-program 2 1 - Innovation Development Capital Ltd - money paid to form company - Mr Batchelor's consultancy IR&D Board

- discretionary grants - applications for advances under the Advance to the Minister for Finance - grants to industry: appeal - review of conflict of interest guidelines

Sub-program 2.5 - Policy and Projects Best practice program

A189

A190-191,193-203

A190-191

A190-191 A191-192 A192-193

A203-207

Sub-program 2 6 - Industrial Property Property rents and expenses, assets register A207-208

Australian Government Property Group A208-210

Sub-program 2 1 0 - Αηϋ-Dumping Authority Increased workload A210-211

Dumping application - Taiyo, Japan A211

Anti-dumping application - reconditioned engines from Japan A211

Anti-dumping and counter/ailing actions - financial assistance A265

- time limit on Minister's decision after ADA's findings A265

- causal link A265

- material injury from dumped and subsidised imports A265

Program 4: Customs

General Internal fraud: Clyde Customs office External fraud: double invoicing Exportation: procedure when goods in duty free bag do not match

declaration Sniffer dogs: examination of baggage for drugs

Sub-program 4.1 - Industry Assistance Document concerning false and/or misleading statements made to Estimates Committee A - triple dipping system: Topper, Oxford and Walker cases

- alleged statements made about Mr Richardson Compile system: electronic transfer of information

A211-213 A213-214

A214-219 A219-221

A222-242 A263-265 A242-261

Sub-program 4.5 - Coastwatch Search for suspected illegal entrants A221 -222

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Auditor-General's Report No.22 - postal control - prohibited goods containerised sea cargo - ADP environment Legislation to authorise negotiation of contracts or agreements Representation for clients during investigations Alleged statements made about Mr Richardson

Program 7: Commonwealth Scientific and Industrial Research Organisation Entomology division

A261

A261-262 A262 A262-263 A263 A263-265

A242

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.

ESTIMATES COMMITTEE B

REPORT TO THE SENATE

Estimates Committee B presents its report to the Senate.

INTRODUCTION

On 5 March 1992 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 1992, and the particulars of certain proposed additional expenditure in respect of the year ending on 30 June 1992 relating to the following portfolios:

. Foreign Affairs and Trade . Defence

. Finance

. Treasury

The Committee met on 27 and 31 March and 2, 3 and 21 April to examine these estimates. The Committee considered the estimates utilising the departmental program performance statements and received evidence from the Minister for Foreign Affairs and Trade (Senator Gareth Evans), the Minister for Defence (Senator Robert Ray), the Parliamentary Secretary

to the Treasurer (Senator McMullan) and officers of the departments and authorities concerned.

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

Senate.

The Committee expresses its appreciation for the assistance of the Ministers, the Parliamentary Secretary and the officers of the departments and authorities who appeared before it The Committee would like to particularly thank Senator McMullan for agreeing to requests for the attendance of certain witnesses and in allowing questions to be asked within certain programs which had not sought any specific additional estimates.

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

DEPARTMENT OF DEFENCE

Ready Reserve

The Committee’s October 1991 report referred to a number of issues which had been discussed at the budget hearings relating to the establishment of the Ready Reserve. Members of the Committee followed up these issues at the recent hearings.

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The Department advised that it was in the process of establishing a definitive figure on the cost of the Ready Reserve. Since the initial costings had been prepared for the force structure review announcement, which were discussed in October 1991, the Department has refined its model using slightly different costing criteria and attribution. The initial costings had been based on a direct comparison of a regular versus a reserve. The Committee was informed that the refined model was more comprehensive by developing costs for Ready Reserve units in comparison with Regular, and eventually General Reserve, units. This approach will include the costs of Regular personnel posted to those units which will enable the Department to say that to have a particular capability either in the Regular, General Reserve or Ready Reserve will cost a certain amount, thereby enabling comparison of existing capability against the capability being developed.

Two factors which would impinge upon this costing model are wastage rates and the extent to which members will take up Education assistance instead of Job Search assistance. The Department advised that currently it appears that wastage rates will be lower than planned and

that a greater percentage of members are taking up the Education assistance package. It is estimated at the moment that the cost of a Ready Reserve is 0.56 of the full cost of a regular. The total funds appropriated in 1991-92 for the Ready Reserve is $14.212m (see Hansard, PP 5-7).

The Committee was informed that in respect of initial recruitment there had been 22 300 inquiries across the three services with 4 800 formal applications being received of which 1 069 were enlisted into the Army component of the Ready Reserve and 90 into the Air Force. Navy, which is recruiting directly from discharging or former Permanent Naval Force personnel, has enlisted 12. Navy indicated that it expects to reach its budgeted target of 48

by June 1992 and an overall target of 450 by 1996-97 (see Hansard, pp 7-8, 32).

The Committee also discussed the impact upon the General Reserve of the introduction of the Ready Reserve (see Hansard, pp 9-11) and expenditure on additional accommodation and its usage at Enoggera (see Hansard, p 57 and additional information, Q.31).

Defence exports

The Committee referred to the sale of Mirage aircraft to Pakistan in its May 1991 Report. The Committee was informed that since this sale the following items of equipment have been sold: HMAS COOK to Gulfwitch Shipping, Cyprus, as a going concern, HMAS

PARRAMATTA to Silooka Steels of Pakistan as scrap, EX-RAAF aircraft - a CT4B Trainer Airframe to Pacific Aerospace Corp., NZ and items of army material given under The Defence Cooperation Program to various Pacific Islands (see additional information, Q.32).

During the current hearings, the Committee was provided with a booklet on guidelines for exporters relating to Australian controls on the export of defence and related goods. The document was subsequently tabled in the Senate on 31 March 1992. The guidelines were prepared to assist exporters to familiarise themselves with the Government’s policy and controls on the export of defence and related goods. They also provide information on how exporters should seek approval to export such goods.

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LAV25 - Acquisition

In October 1991, the Committee heard evidence on perceived limitations with the LAV which arose during evaluation trials in northern Australia. The cost of the evaluation was approximately $A28.423m, excluding certain salaries and other fixed overheads.

The Committee has now been advised that a contract on the LAV's will be signed by mid 1992 and that the problems identified in the evaluation would be solved in replies to the Department’s request for tender {see Hansard, pp 49-51).

Oberon Class submarines - Refit

The Committee received additional information to that provided in October 1991 relating to the delays in the refits of the HMAS ONSLOW and OTAMA.

In respect of ONSLOW there has been an unexpected increase in emergent work (currently estimated at $52m) together with delays in progression of survey activities and other problems associated with the establishment of a new capability within AD I-NED. In October 1991 it was indicated to the Committee that the expectation was that ONSLOW would be accepted

back into service by January 1993. However, on current planning the earliest date is now May 1993.

OTAMA remains non-operational being moored at HMAS PLATYPUS. It has now been out of service since September 1990. The Committee was advised in October 1991 that the commencement date of its refit would not be until February 1992, this date is now subject to negotiation with ADI-NED {see additional information, Q.53).

Redundancy provisions - military v commonwealth service

The Committee heard evidence regarding a seemingly anomalous situation whereby military service under the Defence Act is not counted towards Commonwealth service for redundancy purposes, unlike certain superannuation schemes which contain portability provisions. Attention has been focused upon this anomaly by members of the Air Force who have

transferred into civil aviation and are now being made redundant and do not have their total service years with the Commonwealth counted for redundancy. The dilemma of whether there should be similar portability arrangements with superannuation and redundancy, or a mixture of the two was recognised. The Minister indicated that it was hoped there would be

a resolution of this matter this year, although such a resolution was not simply within the ambit of Defence {see Hansard, pp 13-14).

Accommodation management - dead rent

The Committee referred to matters relating to accommodation management raised in the Auditor-General’s report on Ministerial Portfolios Autumn Sittings 1992 - Audit Report No. 22 (pp 47-9), in particular $2.9m rent paid for unoccupied accommodation in Melbourne between 1986 and 1991.

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The Committee was informed that the original tied lease arrangements had been made through the Australian Property Group and the former Office of Defence Production (ODP). The original intention had been to provide a site for a computer centre to support ODP activities

in Victoria and to use some area for archival storage. With the breakup of the former ODP the computer centre requirement evaporated and the property passed to the responsibility of the Department.

Difficulties then encountered by the Department involved the original issue of a certificate of occupancy and its compliance with building code requirements, whether the certificate had been issued on false and misleading information supplied by the building’s agent, advice from the Attorney-General’s Department relating to terms and conditions of the lease and the legal difficulties of withdrawing from the lease. The result was that Defence had entered into a lease which did not protect its interests and ended costing $2.9m in dead rent (see Hansard, pp 44-6).

This matter should be balanced against the Auditor-General’s comment that in the majority of cases selected, the Auditor found the accommodation in he Melbourne city area to be managed efficiently.

Materials Research Laboratory - Scottsdale, Tasmania

The Committee debated at some length the DSTO Committee of Review’s recommendation to transfer the functions of the food science laboratory at Scottsdale to Maribymong. The Committee was informed that the review concluded that cost savings would accrue through the absorption of support costs at Maribymong and that there would be benefits for staff development and career prospects if staff were to exist within a broader scientific community. During debate certain figures used by the Review and premises upon which certain conclusions were based were challenged. In its additional information the Department conceded ‘it is agreed, however, that MRL-Tasmania is an efficiently operated site given the nature of its R&D program and the constraints of its size’ (see additional information, Q.35).

DEPARTMENT OF FOREIGN AFFAIRS AND TRADE

United Nations Transitional Authority in Cambodia (UNTAC)

During the hearings for both the Departments of Foreign Affairs and Trade and Defence a number of questions were asked relating to Australia’s contributions to the UNTAC and the United Nations Advance Mission in Cambodia (UNAMIC) in terms of personnel support and costs and the provision of bilateral aid to Cambodia (see Hansard, pp 30-32, 34-35, 86-94).

The Minister for Defence, Senator Ray, confirmed in a statement to the Senate on 1 April 1992 that Australia would provide 495 Defence Force personnel (including 65 already deployed with UNAMIC), 6 headquarters staff and a civilian component still to be determined. The estimated cost by UN for an 18 month operation is $US 1.9 billion of which Australia’s share of assessed contributions is 1.51% or $US28.7m. Australia will also be providing over the next four years approximately $A49m in development assistance to

Cambodia which includes $A23m for new bilateral aid. In addition $A7.7m is being provided this financial year for disaster relief and assistance to displaced Cambodians (see Senate

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Hansard, 1 April 1992, pp 1509-12).

Australia’s assessed contribution to UNTAC’s budget will be partially offset by reimbursement from UN of approximately $A19.7m. However, as was indicated during the DFAT hearings, there is a chronic problem with the prompt payment of assessed contributions

by some countries right across the UN system, particularly with peacekeeping operations. This may have the effect of significandy delaying the reimbursement by UN.

Bilateral Relations - Burma

The Committee discussed matters relating to bilateral relations with a number of Asian nations.

In respect of Burma matters discussed included the provision of aid to non-govemment organisations for refugees on the Thai and Bangladesh borders, maintaining a presence in Rangoon through the retention of an Australian embassy and the role of two locally engaged staff working for Austrade.

In response to questions on Australia’s expression of disapproval at human rights and related issues in Burma, the Committee was informed that a constant stream of representations are made directly by the Ambassador to the military regime in Burma, at international fora such as the UN and its committees and the Commission on Human Rights in Geneva and at meetings of ASEAN Foreign Ministers, particularly as ASEAN countries are now acknowledging that problems exist in Burma and they can apply peer group pressure. Australia is also engaged in a series of bilateral consultations on the possible application of arms embargoes and trade sanctions on a broad scale {see Hansard, pp 95-102).

GATT - Uruguay Round o f Negotiations

The Committee received evidence on the progress of the Uruguay Round of negotiations and the possibilities of acceptance of the Dunkel proposals within the EEC.

Senator Evans indicated that active discussions were taking place which would hopefully lead to key political breakthroughs in the near future that would assist in bringing a conclusion of the Round. The Minister further noted that Australia’s trade policy was multi-dimensional

with an international focus on the Uruguay Round, a regional focus primarily on the Asian Pacific Economic Cooperation Group (APEC) and a bilateral dimension working with numerous countries. Joining various free trade agreements that are presently under negotiation was discussed as an option that could be further developed should there be problems in

concluding the Uruguay Round.

DEPARTMENT OF FINANCE

Appropriation Bill (No. 5) 1991-92

The Committee questioned the unusual precedent of introducing an additional appropriation bill which combined elements from appropriation bills already before Parliament with an additional amount of funds.

57

The Committee was informed that the requirement for the additional bill was due to the timing of expected payments in the areas of residential care for older people, child care fee relief and labour market program assistance. An assessment by the supply areas of Finance indicated that funds would be needed for payments of contractual obligations and

commitments in these areas prior to the likely passage of Appropriation Bills (No. 3) and (No. 4).

The Department advised that alternative measures to introducing an additional appropriation bill, such as using the Advance to the Minister for Finance or not fulfilling contractual obligations, were considered. It was proposed that the AMF would have been placed under considerable pressure if requests from the three programs involved were received simultaneously, as was anticipated and, together with Parliament’s expressed opinions on the use of the AMF, the view was adopted that it was preferable to be specific so that Parliament knew exactly the purpose of the appropriation (see Hansard, pp 138-144, 150-153).

The content of Appropriation Bill (No. 5) has been referred for separate consideration and report by Estimates Committees E and F.

Australian National Audit Office (ANAO)

The Committee heard evidence that it was still the intention to have the rewritten Audit Act operative by July 1993. Its introduction into Parliament is now likely in the budget sittings this year. Although it was initially envisaged that the legislation would be available for public

consideration 12 months before enactment, this period will now be reduced due to the wide range of consultations that will by then have taken place, including a consideration of the profiles of the proposed legislation by the Public Accounts Committee (see Hansard, pp 183­ 184).

The ANAO indicated to the Committee that the concerns with the proposed legislation which had been expressed by the Auditor-General in the Annual Report, relating to the establishment of the ANAO as a statutory authority and oversight by a Parliamentary Committee, remain

valid, (see Hansard, pp 190-191, 194-195).

An area where this legislative uncertainty is creating problems is with pressure being placed by organisations to use auditors other than the Auditor-General. This problem has been raised in the Senate in respect of recent legislation, including that establishing the Australian Wool Realisation Commission and the National Rail Corporation. The Committee has noted that the Public Accounts Committee recommended, and the Auditor-General supported, that the Auditor-General should have an audit mandate in regard to not only departments but also Government Business Enterprises, statutory marketing authorities and their subsidiaries. Although the Government has agreed that this audit mandate will be included in the new legislation, it has also decided that the Minister for Finance may provide exemptions in special circumstances (see Hansard, pp 190-192).

The Committee noted that Reports Nos. 22 and 23 of the Auditor-General contained a considerable number of criticisms and qualified financial statements. ANAO indicated that the rise in qualifications this year was due to more departments moving to the full set of

accrual information required by Finance guidelines. ANAO anticipates that as departments adjust to revised accounting systems there will be a decline in the number of qualifications.

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ANAO is currently undertaking a performance audit across departments surveying the levels of accounting skills in each department to check whether skills are sufficient to support the financial reforms.

Commonwealth Task Force on Asset Sales

The Committee heard evidence on the Task Force’s progress with its program of asset sales.

The process for the trade sales of Australian Airlines and 49 percent of QANTAS is expected to reach the conclusion of the second of three phases by the end of April. The Task Force was hopeful of then finalising the trade sale of at least one of the airlines this calendar year (see Hansard, pp 228-234).

In respect of the sale of ANL, the Task Force and the Department of Transport and Communications are jointly engaged in an initial scoping study. This involves a detailed investigation of ANL to ensure there is a full understanding of its situation so that specific proposals can be formulated and put to government (see Hansard, pp 234-236).

Delays in the completion of the sale of the HLIC referred to in the budget hearings of Estimates Committee A relating to the granting of trustee status to the purchaser from the Victorian and Tasmanian governments still remain, although with Tasmania approval is regarded as only a formality (see Hansard, pp 236-239).

DEPARTMENT OF THE TREASURY

The Committee expended a considerable amount of time during the consideration of both the Departments of the Treasury and Finance in discussing the cost of and departmental resources used in the appraisal of Fightback and the preparation of the One Nation economic packages.

During the consideration of the Treasury, much debate centred on the use of the recently developed micro-economic model, which had also been the subject of considerable debate during the budget hearings of Estimates Committee A.

Prices Surveillance Authority (PSA)

The Committee heard evidence of the increasing workload of the PSA as it becomes involved in the monitoring of various micro-economic reform issues. The Committee discussed 3 projects: the monitoring of coastal shipping, domestic interstate average air fares - including the impact of the Compass collapse, and the withdrawal of lc and 2c coins (see Hansard, pp 222-225).

Australian Taxation Office (ATO)

The Committee was concerned at evidence from the ATO of the extent of personnel charged with criminal behaviour. In 1991, 35 matters were referred to the Director of Public Prosecutions or the Australian Federal Police, although action was not taken on all cases because the DPP and AFP believed there was insufficient evidence to gain a conviction.

However the ATO conceded that there were about 15 prosecutions per year. The Committee was surprised to hear that details of such prosecutions were not included in the annual report

59

and believes that the ATO, subject to privacy guidelines, should include in its annual report information on prosecutions, their outcomes and what disciplinary action was taken.

The Committee was also informed that in 1991, 20 ATO officers were disciplined internally, with 17 being for fraud. In such cases where disciplinary charges are laid under the Public Service Act, penalties range from counselling, fines, reduction in classification or dismissal (see Hansard, pp 311-314).

The Committee discussed matters relating to the prosecution by ATO of taxation offenders. The Committee considered types of offences committed, whether prosecutions were launched under the Taxation Administration Act or the Crimes Act, the procedures leading to a prosecution and the oversight of these procedures by ATO central office. The Committee was advised that within the ATO audit group there are prosecution units located in each branch office. Each unit has responsibility for administering guidelines which identify the nature of which cases should be referred to the DPP. Although there is an ATO committee which generally oversights audit group activities to ensure consistent application of the guidelines across Australia, the Committee was concerned that as the ATO decentralises through its establishment of additional branch offices there is a need for an appropriate system of coordination and monitoring to ensure uniformity in application of not only prosecution law but also all taxation law in terms of its administration (see Hansard, pp 324-326).

During its consideration of the ANAO on 2 April the Committee was informed that the ATO had requested a 12 month delay on a full audit because their accounts and systems were not yet in conformity with the guidelines. The ANAO noted that, at a practical working level, with the ATO systems not yet in a position to be smoothly audited there would be problems for the ANAO in terms of the resources that would be required to do a full audit. However, when the Committee met the ATO on 21 April, the ATO advised that the request for a deferral of a full audit had been withdrawn due to what it believed to be misunderstandings in the portrayal of the ATO’s current systems being in a mess and not performing what they were developed to do and perceptions that it was trying to avoid audit. The ATO conceded that if a full audit was undertaken whilst it was implementing a program of modernisation of its systems, the audit would conclude that the existing systems were not developed to report in the manner required under the new guidelines (see Hansard, p 363).

The Committee was also concerned to hear of a number of privacy breaches including the release of private taxation information to other taxpayers by the Parramatta tax office and the release from several offices of other sensitive taxpayer information including tax file numbers. The ATO has undertaken to provide a comprehensive response to the Committee outlining its arrangements for ensuring the privacy of sensitive information, so that it is not leaked or otherwise released to unauthorised people by tax offices (see Hansard, pp 364-365).

Industry Commission

The Committee discussed the current and forward inquiry program of the Industry Commission and the effects of delays in the formal transmission of references. The Committee was informed that what is regarded as the normal variation in the receipt of references is not considered to have a major affect upon expenditure, rather it affects the nature of an inquiry and how much public participation is given to an inquiry.

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In respect to the productive employment of staff when there are delays with references, the Commission indicated that staff commence work on a reference well before it is formally transmitted by the Government. This work includes building up a background on the proposed reference and visiting and forming links with people who are likely to be important during

the inquiry.

The Committee was also advised that the nature of the work had changed since that of its predecessor, the Industries Assistance Commission, which undertook quicker, more specific references in comparison to current references which are broader and utilise more resources per inquiry (see Hansard, pp 240-242).

RECOMMENDATIONS

Estimates Committee B recommends:

(1) That the proposed additional expenditure, in accordance with the estimates referred to the Committee, be approved by the Senate without amendment or request

(2) That matters raised in this report may be further examined by the Senate.

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

Senator B.R. Bums (Chairman)

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

SENATOR ROBERT HILL

l e a d e r o f t h e o p p o s i t i o n i n t h e s e n a t e

SHADOW MINISTER FOR FOREIGN AFFAIRS

PARLIAMENT HOUSE CANBERRA. A.C.T. 2600

PHONE (06) 277 3170

FACSIMILE (06) 277 3177

Mr Elton Humphrey Secretary Estimates Committee B The Senate Parliament House

Dear Mr Humphrey,

I refer to the draft report of the Estimates Committee B which was circulated prior to consideration at the meeting scheduled for 28 April 1992 at 3:30 pm in Committee Room 1S2.

By way of reservation, I recommend that the following matters be further examined by the Senate:

Locally engaged staff numbers in the London High Commission (Non-Program Specific Variations)

Structural Efficiency Principle related salary increases (Non-Program Specific Variations)

Funding of UNTAC and associated activities (prog 3.1)

Cambodia and Vietnam aid programs (prog 5.1)

Mekong Bridge - Thailand and Laos Aid Programs (prog5.1)

Burma - Australian bilateral relations, aid, trade and human rights issues (progs 1 and 5)

Relations with Taiwan (progs 1 6.3 and 8)

Australian media and breaches of laws of neighbouring countries (prog 1)

ADCNET tender (prog 6)

Classified waste disposal (prog 6)

Yours sincerely,

L I k U -

ROBERT HILL

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ESTIM ATES COMMITTEE B

RESERVATION BY SENATOR BRONWYN BISHOP A N D SENATOR JIM SHORT

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

FINANCE PORTFOLIO

Department of Finance A ssessm ent o f th e Fifdithack Package

Officers of the Department were questioned on their involvement in the analysis of the Fightback document carried out by the Department of Finance. Witnesses before the Committee revealed that the Department had a standing brief to give

Ministerial advice on m atters which may be of budgetary significance. This implies that any Opposition policy is open to political scrutiny by the Department. This could compromise well meaning officers of the bureaucracy and is therefore a matter of concern.

This concern is well illustrated by the fact that the Department undertook no similar analysis of the Government's One Nation Statement. The failure so to do raises grave fears for the political neutrality of the Department's analyses.

N etting o f Reserve Bank Fees & Charges

We express our concern that Finance had not implemented the legal advice it had received some time ago which found th a t its practice of netting Reserve Bank fees and charges was in breach of the Constitution.

Task Force on A sset Sales

We reiterate our concern that the Task Force on Asset Sales continues to have very little success in implementing the Government's asset sales program. HLIC is still to be resolved. Although some of this may be due to factors beyond the Task Force's control, the Government's direction of how particular asset sales are conducted

needs to be clarified.

Other Matters

Other matters we wish to include as worthy of following up include:

. Retirement benefits . Commonwealth superannuation.

AUSTRAIJAN NATIONAL AUD IT OFFICE

Independence of the Audit Office

The consistent delays in the preparation of the new audit legislation is of concern. Of importance in the need to maintain the mandate of the Audit Office, not only in

66

relation to Government Departments but government business enterprises as well. The recent experience of the Australian Wool Realisation Commission and the Australian Wool Corporation demonstrated this need. We recommend that the Senate ensure that the recommendations of the Joint Committee on Public Accounts report entitled "The Auditor-General: the Ally of the People and the Parliament" are fully carried out.

TREASURY PORTFOLIO

DEPARTMENT O F THE TREASURY

Treasury Consideration of the Fightback and One Nation Packages

Treasury officers refused to provide full information on the state of the Budget deficit, or the implications of the high growth figures used to underpin the Government's One Nation statement.

We express concern that while Treasury spent considerable time analysing the Opposition's Fightback! proposals, it appeared not to have undertaken a detailed examination of the economic implications of the One Nation statement. In particular, officials refused to say whether they had modelled the distributional

impact of the personal income tax changes announced in the One Nation statement. Given that the model was developed at a cost of some $300,000 to provide a permanent modelling capacity to analyse the distributional impact of policy changes, we are strongly critical of Treasury and the Minister for refusing to answer questions on whether it was used or not, and if so, what the results were.

The Committee questioned Treasury officials on assumptions used to model the Opposition's policies. In particular, Treasury was not able to explain to our satisfaction why it had assumed an inflation rate of 6.7% when its own analysis showed a one-off impact on the price level of about 3.5% and the Fightback! package clearly stated a longer term price level increase of 0-2%. Treasury also admitted that its assumed inflation rate of 6.7% would imply a real wage decline of 3.5% and that this would not be realistic.

We are concerned th a t the Treasury analysis is not even-handed and impartial, and is seen as favouring the Government. We express our strong concern at the evidence of political interference displayed by the Minister and his staff in the production of Treasury's published response to the Opposition's policies.

We are critical of Treasury for only conducting an analysis of part of Fightback! and thereby not taking into account the major national benefits proposed. For example, it did not model the impact of major reductions in business taxes which are central elements of the Fightback! package.

We are concerned th a t when the Treasury documents were tabled on 2 March 1992, an assurance was given that the set of papers contained all material relevant to the instructions from the Treasurer (or his office) to the Department. However, officers of the Treasury revealed that "normal" instructions were passed by telephone and

that no record of the instructions existed. It is now clear to us that the scope for interference by the Treasurer's office in the analysis of Fightback! conducted by Treasury was potentially much greater than a reading of the tabled documents

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would suggest.

AUSTRALIAN TAXATION OFFICE

Forecast Revenue Collections

We were concerned to be informed that revenue collections by the Australian Taxation Office were just over $600 million less than had been forecast to the end of February 1992. The ATO said that it and the Treasury expect to have an agreed

revised revenue forecast for 1991/92 available for the Treasurer by the end of April. We urge the Government to make these revised forecasts available as soon as possible.

Alleged Criminal Behaviour

Evidence was presented to the Committee that the Australian Taxation Office last year referred 35 cases of suspected criminal behaviour to either the Australian Federal Police or the Director of Public Prosecutions. Twenty tax officers were disciplined internally in 1991.

In spite of this, however, it was revealed th at it was possible for someone who was convicted of criminal charges to continue to work as a tax official. Also the failure to keep adequate records is not satisfactory and we recommend to the Senate that future Annual Reports of the Tax Office detail the number of officers who face criminal charges, with what they have been charged and whether there have been any convictions.

The Committee was also concerned to ascertain whether any taxpayer other than Mr Phillip Smiles MP had been prosecuted by way of criminal proceedings rather than under the Taxation Administration Act 1953 on a m atter of apportionment.

Operations of th e Perth ATO

The Committee considered a submission currently before the Joint Committee on Public Accounts which revealed the failure of the Perth Tax Office to prosecute the an alleged $400,000 evasion involving 124 false accounts, using 52 different names

with 16 institutions. The witnesses displayed scant knowledge of the case. Given that the submission was on the public record the lack of familiarity of the case demonstrated insufficient preparation on the part of the Tax Office for questions which reasonably could be expected to be asked. Attempts by the Parliamentary Secretary to prevent questions being asked on such an important m atter are also of

concern.

It became apparent from the testimony of the witnesses that insufficient guidelines are in place to ensure that cases of such a magnitude are pursued.

Leaked ATO Memorandum

The Committee considered the publicised memorandum from Mr Rick Matthews,

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Assistant Commissioner, Revenue Analysis, to the Commissioner which detailed numerous deficiencies including debt management, the overpayment by the ATO of its fringe benefit tax liabilities, inaccurate records of business taxpayers and the lack of a proper register of assets as well as outdated systems, and the maintenance of substantial quantities of inactive and redundant information.

The issues raised by the memorandum are serious indeed but of equal concern is the fact that the memorandum was w ritten on the eve of, and perhaps, in fear of the first major audit of the Taxation Office's operations.

Prosecution of Mr Phillin Smiles

The leaking of documents to the press in relation to the prosecution of Mr Phillip Smiles was considered by the Committee. It became evident that the ATO conducted an internal inquiry into the leak. The source of the leak was not identified although the information gained by the internal investigators was supplied to the Australian Federal Police.

We consider it most extraordinary th a t the officer who commissioned the investigation of the leak had not even read the report of the investigation. In such a serious breach of privacy involving a public figure we find the care taken by the Tax Office in discharging their duties in this area quite unsatisfactory.

Privacy Breaches

Privacy breaches at the Parram atta Taxation Office were considered by the Committee where a fault with the loading of computer paper had resulted in approximately eighty provisional tax variation notices containing the details of two different taxpayers were issued. The Privacy Commissioner was brought in to

investigate the breach but it was revealed that the Tax Office was not presented with a copy of the report.

We note with concern that the breach was only discovered after a complaint was received by a tax agent. Only then was the extent of the error identified and corrective action put in place.

The ATO could not provide any assurance th a t a similar breach of privacy could not occur in the future.

Other Matters

Other matters we wish to include as worthy of following up in the Senate include:

Sales tax changes.

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P A R L I A M E N T O F A U S T R A L I A · THE SENATE

SENATOR JOCELYN NEWMAN

SHADOW MINISTER FOR VETERANS' AFFAIRS SHADOW MINISTER FOR DEFENCE SCIENCE AND PERSONNEL SHADOW MINISTER ASSISTING THE LEADER OF THE OPPOSITION ON THE STATUS OF WOMEN

JMN:JC 28 April 1992

Mr Elton Humphrey Secretary Estimates Committee B The Senate Parliament House

Dear Mr Humphrey,

I recommend that the following matters relating to the estimates of expenditure referred to the Committee be further examined by the Senate.

* Programs 1 & 3 - M atters relating to the Cambodia peacekeeping force

* Program 7 - Matters relating to property rental and acquisition

* Program 8 ,

- Matters relating to DSTO and MRL Scottsdale - M atters relating to DSTO and professional officer career structures.

Yours sincerely,

Α ^ Ι Χ λ- xvO -

JOCELYN NEWMAN

11 ELPHIN ROAD. LAUNCESTON. TAS. 7250 TELEPHONE (003) 34 1 7 5 5 FACSIMILE (003) 3 4 1 6 2 4

PARLIAMENT HOUSE. CANBERRA. A.C.T. 2600 (06) 2773660 (06) 2 7 7 3 4 4 9

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

SENATOR BRIAN HARRADINE

MARINE BOARD BUILDING I FRANKLIN WHARF

HOBART 7000

POSTAL ADDRESS:

G .P.0 BOX 896) HOBART 7001

TELEPHONE: HOBART (002) 34 5122 FAX. (002) 34 5865

PARLIAMENT HOUSE CANBERRA. A C T . 2600

TELEPHONE:

CANBERRA (062) 77 7111

LAUNCESTON (003) 31 1064 BURNIE (004) 31 5247

28 April 1992

Mr E Humphery, Secretary, Estimates Committee B, The Senate, Parliament House,

CANBERRA ACT 2600

Dear Mr Humphery,

Estimates Committee B Report to the Senate

RESERVATION BY SENATOR HARRADINE

By way of reservation I recommend that the following matters relating to the estimates of expenditure referred to the Committee be further examined by the Senate.

Those subjects for which written answers have been provided, or for which further information is to be provided, including the following specific subject areas relating to the Department of Foreign Affairs and Trade:

5.1 AID: Country programmes: PNG 6 Corporate and Public Services: Computer contracts

Yours sincerely,

'(Senator Brian tiarradine)

71

ESTIMATES COMMITTEE B

DOCUMENTS TABLED DURING PUBLIC HEARINGS OR PROVIDED WITH ADDITIONAL INFORMATION TO THE COMMITTEE

The following is a list of documents tabled during the public hearings or provided to the Committee with additional information but which are too voluminous for reproduction as part of the volumes of additional information.

The documents have been included as an attachment to the tabled copy of the Committee’s report.

Department of Defence

. Australian controls on the export of defence and related goods - guidelines for exporters, March 1992.

Department of Finance

. Copies of commonly used standard form agreements utilised in the administration of programs covered by the items in Appropriation Bill (No. 5):

- Residential Care for Older People - Child Care Fee Relief - Labour Market Program Assistance

Department of the Treasury

. Equal Employment Opportunity and Affirmative Action Program, December 1989.

Australian International Development Assistance Bureau

. Papua New Guinea: Population Study - Pre-feasibility study, October 1990.

Prices Surveillance Authority

. Monitoring of coastal shipping freight rates, Report No. 1, February 1992. . Monitoring of movements in average air forces. Report No. 1, February 1992.

73

75

THE SENATE

ESTIMATES COMMITTEE B

MINUTES OF PROCEEDINGS

NO. 16

FRIDAY, 27 MARCH 1992

1. PUBLIC MEETING: The Committee met in public session at 9.04 a.m. in Committee Room 2S1. Senator Bums took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1991-92 - DEPARTMENT OF DEFENCE: In attendance -Senator Robert Ray, Minister for Defence, accompanied by the following officers:

Department of Defence

Vice Admiral A L Beaumont Rear Admiral E G Stubington

Rear Admiral K A Doolan

Air Vice-Marshall L B Fisher

Major General B N Nunn

Air Vice-Marshal M D Miller

Commodore C J Littleton

Brigadier D B Ferguson

Brigadier A S D’Hage Commodore G S Sloper

Mr L Rayner

Mr P Skinner

Mr K E Dean

Mrs G Carlisle

Captain M W Warrington

Vice Chief of Defence Force Assistant Chief of the Defence Force (Personnel) Assistant Chief of the Defence Force

(Development) Assistant Chief of the Defence Force (Operations) Assistant Chief of the Defence Force

(Reserves) Surgeon General, Australian Defence Force Director General, Natural Disasters

Organisation Director General, Defence Force Plans and Programs Director General, Public Information Director General, Defence Force

Recruiting Director, Defence Force Services Conditions Assistant Secretary, Military

Superannuation Benefit Scheme Implementation Scheme Director, Budget and Financial Services, ADFA Director, Program Coordination,

Forces Executive Director, Defence Force Plans

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Colonel G I Kollar Director, Communications

Colonel J Benton

Development Head of Ready Reserve Program Implementation Team

Mr E David Senior Manager, Corporate Services

and Special Capital Projects

Mr J Rosser Manager, Policy and Plans, Defence

Housing Authority

Rear Admiral R G Taylor Mr C Tolano

Deputy Chief of Naval Staff Assistant Secretary, Resources Planning - Navy

Major General J C Grey Colonel P J Abigail

Deputy Chief of the General Staff Director General, Corporate Planning and Management

Mr M Taylor Assistant Secretary, Resources

Planning - Army

Air Commodore F D Cox Air Commodore D J S Riding

Acting Deputy Chief of the Air Staff Director General, Programming and Resource Management

Mr K L Moore Assistant Secretary, Resources

Planning - Air Force

Dr A Hawke Deputy Secretary, Strategic and

Intelligence

Dr S Pearce Acting First Assistant Secretary,

Force Development and Analysis Division

Dr R G Brabin-Smith First Assistant Secretary, International

Policy Division

Mr J Nockles Mr A S Podger

Assistant Secretary, Pacific Branch Deputy Secretary, Acquisition and Logistics

Major-General S N Gower Assistant Chief of the Defence Force (Logistics)

Rear Admiral A L Hunt Assistant Chief of the Naval Staff

Major-General P M Jeffery

(Materiel) Assistant Chief of the General Staff (Materiel)

Air Vice-Marshall B J Graf Assistant Chief of the Air Staff

Mr R K Thomas

(Materiel) First Assistant Secretary, Capital Equipment program

Mr M Ives First Assistant Secretary, Facilities

Mr D D Wood

and Property Division First Assistant Secretary, Industry Policy and Operations Division

Mr A D Powell First Assistant Secretary, Project

Development and Communications

78

Dr G F Ashton

Mr P R Liddicoat

Mr G Veitch

Commodore P B Cashier

Mr R N McLeod

Mr A G Thompson

Mr F R Harvey Mr C Neumann

Mr I Hagan

Mr G Clark

Mr G F Jones

Mr R Tonkin

Mr D R Irvine

Mr W L MiUer

Mr B Chapman

Department of Finance

Mr S Salale

Mr G Van Dijk

Mr G Hehir

- 3 -

Assistant Secretary, Logistics Resources Assistant Secretary, Program Coordination and Management Director, Program Coordination

Acquisition and Logistics Director General, Commercial Support Program Deputy Secretary, Budget and

Management First Assistant Secretary, Human Resources and Management Division Inspector General

Assistant Secretary, Manpower Structures First Assistant Secretary, Science Policy Division Director, Science Resource

Management First Assistant Secretary, Resources and Financial Programs Division Assistant Secretary, Resources Policy

and Programs Director, Program Evaluation and Analysis Assistant Director, Program

Evaluation and Analysis Program Evaluation and Analysis

Senior Officer Grade B, Defence and Industry Division Senior Officer Grade C, Defence and Industry Division

Senior Officer Grade B, Labour and Culture Division

79

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The Chairman called on the following programs of proposed expenditure for consideration by the Committee. The expenditure proposed for these programs is contained in the particulars of proposed additional expenditure documents -Program 1 - Forces Executive Program 2 - Navy Program 3 - Army Program 4 - Air Force Program 5 - Strategy and Intelligence

Program 6 - Acquisitions and Logistics Program 7 - Budget and Management Program 8 - Science and Technology

The Committee received the following document:

Australian controls on the export of defence and related goods - guidelines for exporters.

Questions were placed on notice by Senators Childs, Durack, O’Chee, Parer, Short and Tambling.

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

3. ADJOURNMENT: The Committee adjourned at 4.00 p.m.

4. ATTENDANCE: Senators Bums (Chairman), Devereux, MacGibbon, Newman, Schacht and Teague. Senator Chamarette also attended.

CONFIRMED:

senator B.R. Bums (Chairman)

80

THE SENATE

ESTIMATES COMMITTEE B

MINUTES OF PROCEEDINGS

NO. 17

TUESDAY, 31 MARCH 1992

1. PUBLIC MEETING: The Committee met in public session at 7.32 p.m. in Committee Room 2S1. Senator Bums took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1991-92 - DEPARTMENT OF FOREIGN AFFAIRS AND TRADE: In attendance -Senator Gareth Evans, Minister for Foreign Affairs and Trade, accompanied by the following officers:

Department of Foreign Affairs and Trade

Mr G Forrester

Mr M Hughes

Mr K Boreham

Ms P Wens ley

Mr P Varghese

Mr J Buckley Mr R Rigby Ms P Richards

Mr I Porter Mr D Kenyon

Mr K Oakman Mr A Skinner

First Assistant Secretary, Corporate Services Division First Assistant Secretary, Systems, Programs and Consular Division Acting First Assistant Secretary, Asia

Division Acting First Assistant Secretary, International Organisations and Legal Division Assistant Secretary, Corporate

Services Division Assistant Secretary, Resources Branch Director, Indo-China Section Director, Budget and Resources

Section Assistant Secretary, Personnel Branch Acting First Assistant Secretary,

Multilateral Trade Division Director, Diplomatic Security Section Assistant Secretary, Information Technology Branch

81

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A us trade

Mr R Evans Mr P Langhome

Mr M Johnson

Mr D Oliver

Mr B Friend

Mr D Shires

Managing Director Executive General Manager, Corporate Affairs Executive General Manager,

Australian Operations Executive General Manager, International Trade Enhancement Scheme Manager, Corporate Finance and

Property Manager, Government and Economic Affairs

Australian International Develpment Assistance Bureau

Mr E Huning

Dr H Ware

Mr K Aspinall

Mr L Engel

Mr B Stensholt

Assistant Director-General, Finance and Resource Management Branch Deputy Director-General, Corporate Development and Support Division Assistant Director-General,

Community, Commercial and Refugee Programs Branch Assistant Director-General, Pacific and Papua New Guinea Branch Assistant Director-General, South

East Asia Branch

Department of Finance

Mr M Admans Mr T Singer Mr A Baker Mr P Bodegraven

Finance Officer Finance Officer Finance Officer Finance Officer

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

Program 1 - Bilateral Relations Program 2 - Trade Relations and Economic Issues Program 3 - Global Issues Program 5 - Aid Program 6 - Corporate and Public Services Program 8 - Austrade

82

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The Committee received the following document:

. Export development grant - Light ‘n Easy Agencies Pty Ltd - Copy of document referred to by Senator O’Chee.

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.

3. ADJOURNMENT: The Committee adjourned at 12.14 a.m., Wednesday, 1 April 1992.

4. ATTENDANCE: Senators Bums (Chairman), Devereux, Hill, Newman and Schacht An apology was received from Senator Teague. Senators Boswell, Colston, Harradine, Kemp and O’Chee also attended.

CONFIRMED:

Senator B.R. Bums (Chairman)

83

THE SENATE

ESTIMATES COMMITTEE B

MINUTES OF PROCEEDINGS

NO. 18

THURSDAY, 2 APRIL 1992

1. PUBLIC MEETING: The Committee met in public session at 3.03 p.m. in Committee Room 2R1. Senator Bums took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1991-92 - DEPARTMENT OF FINANCE: In attendance -Senator Bob McMullan, Parliamentary Secretary to the Treasurer, accompanied by the following officers:

Department of Finance

Mr E Thom Mr I McPhee Mr M Kennedy

Mr J Galloway

Mr A Pearson

Mr I Butt

Mr I Briggs

Mr P McMahon

Mr M Bowen

Retirement Benefits Office

Mr J McCullagh Assistant Commissioner, Resources

Management Branch

Mr R Jackson Director, Finance and Accounts

Ms B Malbon Assistant Director, Finance Planning

Deputy Secretary Acting Deputy Secretary Acting First Assistant Secretary, Financial Management Division Assistant Secretary, Resource Policies

and Management Branch Assistant Secretary, Public Administration and Accounting Development Branch Director, Management and Operations

Section Acting Director, Finance and Services Section Chief Finance Officer, Social Security

Division Finance Officer

84

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Australian National Audit Office

Mr Μ J Jacobs Mr J E Meert

Deputy Auditor-General Executive Director, Executive Support

Mr W J Cochrane

Branch Executive Director, Policy and

Mr R J Morison

Development Branch Senior Director, Financial

Mr F P Campbell

Administration Section Director, Financial Administration

Mr D Lennie

Section Executive Director

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

Program 1 - Budget Development and Management Program 2 - Resource Management Framework Program 3 - Government Financial Administration and Accounts Program 5 - Specific Payments and Receipts Activities Program 6 - Corporate Services Program 4 - Retirement Benefits Program 7 - Australian National Audit Office

The Committee received the following documents:

. Precis of 1991/92 AMF Applications received to c.o.b. 23 March 1992 by BDEBT. . Service Provider Agreements - Recurrent and operation of service grants agreements. . Attorney-General’s Department - Copies of advice re Constitution ss 81

and 83: Audit Act 1901: Commonwealth overdraft facilities with the Reserve Bank: New accounting arrangements - dated 23 June and 15 September 1987.

The Committee, having concluded its consideration of these programs, suspended its examination of the Department’s estimates to enable the Commonwealth Task Force on Asset Sales to be examined.

3. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1991-92 - DEPARTMENT OF THE TREASURY: In attendance - Senator Bob McMullan, Parliamentary Secretary to the Treasurer, accompanied by the following officers:

Insurance and Superannuation Commission

Mr R M Beetham Commissioner

Mr R Dean Deputy Commissioner, Occupational

Superannuation

85

- 3 -

Mr N Stuparich

Mr M O’Neill

Mr R Glading Mr R Smith

Mr G L Bums

Mr D Duval Mr T Thomas Miss D Hart

Australian Bureau of Statistics

Assistant Commissioner, Compliance and Reporting Assistant Commissioner, Standards and Determinations Deputy Commissioner, Life Insurance Deputy Commissioner, General

Insurance Assistant Commissioner, Corporate Services Australian Government Actuary Assistant Commissioner, Policy Director, Corporate Services

Mr F von Reibnitz Mr H Kriegel

Mr P McCarthy

Mr K Blackburn

Mr R Green

Mr G Cocking

Industry Commission

Mr J Spasojevic Mr E Beens

Department of Finance

Mr W Turner Mr B Reid Mr E Tong

Acting Deputy Australian Statistician Acting First Assistant Statistician, Coordination and Management Division Assistant Statistician, National

Accounts Branch Assistant Statistician, Prices and Household Finance Branch Assistant Statistician, Information

Services Branch Assistant Statistician, Population Census and Surveys Branch

Head of Office Director, Finance and Services

Finance Officer Finance Officer Finance Officer

The Chairman called on the following programs of proposed expenditure for consideration by the Committee. The expenditure proposed for these programs is contained in the particulars of proposed additional expenditure documents -Sub-Program 2.1 - Aspects relating to the Insurance and Superannuation

Commission Program 5 - Australian Bureau of Statistics

The Committee, having concluded its consideration of these agencies, suspended its examination of the Department’s estimates.

86

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4. ADJOURNMENT: The Committee adjourned at 11.31 p.m.

5. ATTENDANCE: Senators Bums (Chairman), Bishop, Devereux, Schacht, Short and Teague. Senators Alston, Colston and Watson also attended.

CONFIRMED:

Senator B.R. Bums (Chairman)

87

THE SENATE

ESTIMATES COMMITTEE B

MINUTES OF PROCEEDINGS

NO. 19

FRIDAY, 3 APRIL 1992

1. PRIVATE MEETING: The Committee met in private session at 9.06 a.m. in Committee Room 2S1 to consider a date to examine the Australian Taxation Office and any Treasury matters not concluded this day.

The Committee agreed to meet on Tuesday, 21 April 1992 at 10.30 a.m.

Senators Bums (Chairman), Devereux, Schacht, Short and Teague were in attendance.

The private meeting adjourned at 9.08 a.m.

2. PUBLIC MEETING: The Committee met in public session at 9.10 a.m. in Committee Room 2S1. Senator Bums took the Chair.

3. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1991-92 - DEPARTMENT OF THE TREASURY: In attendance -Senator Bob McMullan, Parliamentary Secretary to the Treasurer, accompanied by the following officers:

Prices Surveillance Authority

Dr B Menzies Chief Executive Officer

Mr J Corin Administrative Officer

The Committee resumed its consideration of the Department’s estimates.

The Chairman called on those aspects of program 1 which relate to the Prices Surveillance Authority for consideration by the Committee. The expenditure proposed for this program is contained in the particulars of proposed additional expenditure

documents.

The Committee, having concluded its consideration of the estimates for the Prices Surveillance Authority, suspended its examination of the Department’s estimates.

8 8

- 2 -

4. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1991-92 - DEPARTMENT OF FINANCE: In attendance -Senator Bob McMullan, Parliamentary Secretary to the Treasurer, accompanied by the following officers:

Department of Finance

Mr E Thom Deputy Secretary

Commonwealth Task Force on Asset Sales

Mr H Heinrich Chairman

Mr C Roe Senior Officer

The Committee resumed its consideration of the Department’s estimates.

The Chairman called on the Commonwealth Task Force on Asset Sales for consideration by the Committee.

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

5. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1991-92 - DEPARTMENT OF THE TREASURY: In attendance -Senator Bob McMullan, Parliamentary Secretary to the Treasurer, accompanied by the following officers:

Department of the Treasury

Dr A Preston

Mr J Fraser Mr E Waterman Mr A Hinton

Mr G Pooley

Mr B Cassidy

Mr G Smith

Mr J Larum

Mr P Biggs

Mr B Rowse Mr A Sinodinos Mr D Holmesby

Deputy Secretary (Structural and Taxation) Deputy Secretary (Economic) Deputy Secretary (Financial) Acting First Assistant Secretary,

Capital Markets Division First Assistant Secretary, Finance and Investment Division First Assistant Secretary, Fiscal Policy

Division First Assistant Secretary, Taxation Policy Division Assistant Secretary, Domestic

Economy Branch, Economy Division Acting Assistant Secretary, Primary Industries, Trade and Environment Branch, Structural Policy Division

Fiscal Policy Division Economic Division Director, Accounting and Finance

8 9

- 3 -

Mr P Mclnemey Mr A Woodman

Accounting and Finance Accounting and Finance

Industry Commission

Mr J Spasojevic Mr E Beens

Head of Office Director, Finance and Services

Department of Finance

Mr W Turner Mr B Reid Mr E Tong

Finance Officer Finance Officer Finance Officer

The Committee resumed its consideration of the Department’s estimates.

The Chairman called on the following programs of proposed expenditure for consideration by the Committee. The expenditure proposed for these programs is contained in the particulars of proposed expenditure documents -Program 7 - Industry Commission

Program 1 - Economic Policy

The Committee suspended its consideration of Program 1.

6. ADJOURNMENT: The Committee adjourned at 5.03 p.m.

7. ATTENDANCE: Senators Bums (Chairman), Bishop, Devereux, Schacht, Short and Teague. Senators Boswell and Kemp also attended.

CONFIRMED:

Senator B.R. Bums (Chairman)

90

THE SENATE

ESTIMATES COMMITTEE B

MINUTES OF PROCEEDINGS

NO. 20

TUESDAY, 21 APRIL 1992

1. PUBLIC MEETING: The Committee met in public session at 10.36 a.m. in Committee Room 2S1. Senator Bums took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1991-92 - DEPARTMENT OF THE TREASURY: In attendance -Senator Bob McMullan, Parliamentary Secretary to the Treasurer, accompanied by the following officers:

Department of the Treasury

Mr E Waterman Mr N Hyden

Mr B Cassidy

Mr T Lowndes

Mr J Larum

Mr R Jones Ms K Chester Ms L Toohey

Mr D Holmesby Mr P Mclnemey Mr A Woodman

Australian Taxation Office

Mr Michael Carmody Mr Richard Highfield

Mr Rick Matthews

Mr Bob Stacey

Mr Rory Mulligan

Deputy Secretary (Financial) First Assistant Secretary, Capital Markets Division First Assistant Secretary, Fiscal Policy

Division Acting First Assistant Secretary, Taxation Policy Division Acting First Assistant Secretary,

Economic Division Finance and Investment Division Structural Policy Division D ir ec to r , Human Resource

Development Director, Accounting and Finance Accounting and Finance Accounting and Finance

Second Commissioner First Assistant Commissioner (Revenue Collection) Assistant Commissioner (Revenue

Analysis) Assistant Commissioner (Taxpayer Assistance) Director (Strategic Planning, Taxpayer

Assistance)

91

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Mr Brian Hendy Mr Vince Mitchell

Director (Small Business Service) First Assistant Commissioner

Mr Peter Wilson

(Taxpayer Audit) Assistant Commissioner (Facilities Provision)

Mr John Landau First Assistant Commissioner (Sales

Tax)

Mr Ron Mills Mr Chris Hood

Chief Tax Counsel Acting Assistant Commissioner (Business Tax)

Ms Deirdre Gerathy Assistant Commissioner (Personal

Tax Branch)

Dr Tony Butterfield Assistant Commissioner (National

Office and Services)

Mr Rob McDonald Assistant Commissioner (Program

Evaluation)

Mr Chris Mobbs Assistant Commissioner (Corporate

Management Support)

Mr John Phillips Acting Executive Officer (Corporate

Budgeting)

Mr Ross O’Connell Chief (Decentralisation and

Accommodation)

Mr Warren Rofe Director (Decentralisation and

Accommodation)

Mr Dave Lewis First Assistant Commissioner (Child

Mr Tim Prydon

Support) Technical Director (Child Support Agency Systems)

Mr Michael Monaghan A s s i s t a n t C o m m i s s i o n e r

Ms Sharon Foley

(Superannuation Guarantee Team) Director (Superannuation Guarantee Team)

ΑΤΟ Observers

Ms Sally Dugdale Ms Allyson Dutton Mr Rob Gardiner Mr Dave Shean Mr Mark Reed

Corporate Management Support Officer Media Liaison Officer FBT Manager Superannuation Guarantee Officer Personal Tax Branch Officer

The Committee resumed its consideration of Program 1 of the Department’s estimates.

92

The Chairman called on the following programs of proposed expenditure for consideration by the Committee. The expenditure proposed for these programs is contained in the particulars of proposed additional expenditure documents -Program 2 - Financial System

Program 4 - Corporate Services Program 6 - Taxation Administration

Questions were placed on notice by Senators Short and Watson.

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

4. ADJOURNMENT: The Committee adjourned at 10.52 p.m.

5. ATTENDANCE: Senators Bums (Chairman), Bishop, Devereux, Schacht and Short An apology was received from Senator Teague. Senators Colston, Kemp and Watson also attended.

- 3 -

CONFIRMED:

Senator B.R. Bums (Chairman)

93

THE SENATE

ESTIMATES COMMITTEE B

MINUTES OF PROCEEDINGS

NO. 21

TUESDAY, 28 APRIL 1992

1. MEETING: The Committee met in private session at 3.50 p.m. in Committee Room 1S2. Senator Bums took the Chair.

2. CONFIRMATION OF MINUTES: The Minutes of meetings held on 27 and 31 March and 2, 3 and 21 April 1992 (Nos 16, 17, 18, 19 and 20) were confirmed.

3. ADOPTION OF REPORT: The Committee resolved that the Chainman’s draft report be adopted as the report of the Committee, subject to the inclusion of amendments agreed to by the Committee and reservations to be made by Opposition Senators.

4. ADJOURNMENT: The Committee adjourned at 3.59 p.m.

5. ATTENDANCE: Senators Bums (Chairman), Bishop and Devereux. Apologies were received from Senators Hill, MacGibbon, Newman, Schacht, Short and Teague.

CERTIFIED CORRECT:

Senator B.R. Bums (Chairman)

94

Table Of contents

To

HANSARD OF Public hearings

Friday, 27 March 1992

Department of Defence

Tuesday, 31 March 1992

Department of Foreign Affairs and Trade

Thursday, 2 April 1992 Friday, 3 April 1992

Department of Finance

Thursday, 2 April 1992 Friday, 3 April 1992 Tuesday, 21 April 1992

Department of the Treasury

95

TABLE OF CONTENTS TO H ANSARD

Index to issues raised during public hearings held on 27 and 31 March and 2, 3 and 21 April 1992.

Page No.

DEPARTMENT OF DEFENCE - 27 MARCH 1992

PROGRAM 1 - FORCES EXECUTIVE

Ready Reserve - costings and education standards ......................... 5-11

General Reserve ................................................................................. 11

Redundancies - A rm y.......................................................................... 11-14

Homosexuality..................................................................................... 14-16

1.1 Operations and Plans Program information system ............................................................... 16-17

1.3 Personnel Work based child-care ........................................................................ 17-18

Advertising............................................................................................ 18-19

Performance based pay ..................................................................... 19-20

1.4 Health Policy Services HIV testing .......................................................................................... 20-22

Blood screening................................................................................... 22-23

Health care facilities............................................................................ 23-24

Naval hospital at Penguin................................................................... 24-25

1.8 Australian Defence Force Superannuation Military Superannuation and Benefits Scheme -transfers ............................................................................................ 25-26

1.9 Defence Housing Defence Housing Authority inventory............................................... 26-28

Women in senior administration areas ............................................. 28

Temporary accommodation allowance............................................... 28-29

Scales and standards of houses.......................................................... 29-30

PROGRAM 2 - NAVY

2.1 Combat Forces Cambodia - Deployment costs .......................................................... 30-31

Reimbursement from the United Nations for peacekeeping forces ................................................................................................ 31-32

Ready Reserve program ..................................................................... 32-33

97

2.3 Logistics Support Compensation - asbestos related cases ............................................. 33

PROGRAM 3 - ARMY

3.1 Combat Forces Reserves study..................................................................................... 33

Recruiting ........................................................................................... 3, 33-34

Army personnel deployed in Cambodia............................................. 34-35

3.3 Base Logistics Uniform costs ..................................................................................... 35-36

Fletcher Jones contract ..................................................................... 36-37

3.5 Support Brisbane Logistics G ro u p ................................................................... 37-38

PROGRAM 4 - ADR FORCE

4.1 Combat Forces Exercise Pitch B lack............................................................................ 38

34 Squadron - m anpow er................................................................... 38

4.2 Executive Salaries ................................................................................................ 38-39

Persons wrongly discharged .............................................................. 39-40

Compensation ..................................................................................... 40

Aircraft accidents................................................................................ 40-44

PROGRAM 6 - ACQUISITION AND LOGISTICS

Defence contracting............................................................................ 44

Rental property.................................................................................. 44-47

6.1 M ajor Capital Equipment ANZAC ships ..................................................................................... 47-48, 52

RAVEN program................................................................................ 49, 51-52

Steyr .................................................................................................... 49

LAV contract....................................................................................... 49

LAV evaluation.................................................................................. 49-51

Procurement of services..................................................................... 52

Budget timetable - 16 top projects ................................................... 52-53

DISCON project ................................................................................ 53

PARAKEET project ......................................................................... 54

MACCHI project................................................................................ 54-55

98

6.2 Facilities Purchases of h o u ses............................................................................ 55-56

Transfer subsidy................................................................................... 56

Consultative committee costs ............................................................. 56-57

Enoggera Ready Reserve accommodation......................................... 57-58

6.3 Logistics Upgrading data m anagem ent............................................................. 58-59

6.4 Industry Involvement and Contracting Defence exports............................................ 59

PROGRAM 7 - BUDGET AND MANAGEMENT

Civilian salaries ................................................................................... 59-61

Fedorczenko trust a c c o u n t................................................................. 61

Compensation paym ents...................................................................... 61

PROGRAM 8 - SCIENCE AND TECHNOLOGY

DSTO resource allocation ................................................................. 62

8.1 Aeronautical Research Guided Weapons Division ................................................................. 62

8.3 Materials Research MRL Scottsdale................................................................................... 62-67

DSTO professional officers................................................................. 67-70

8.5 Weapons System Research Weapons Systems Research Laboratory - reorganisation ................ 70-71

DEPARTMENT OF FOREIGN AFFAIRS AND TRADE - 31 MARCH 1992

OVERVIEW

Efficiency dividends and LES in London & other p o s ts .................. 80-83

Restructuring of Technical Officer Stream ...................................... 83-84

Compensation for former employees.................................................. 84-85

Experience of SES Officers ............................................................... 85-86

PROGRAM 1 - BILATERAL RELATIONS

1.1 Relations with Asia Cambodia Cost of post in Phnom Penh............................................................. 86

UNTAC contributions ..................................................................... 86-92

Safety of Australian fo rces............................................................... 92-93

99

Australia's contributions -m ilitary............................................................................................ 93-94

diplomatic........................................................................................ 94-95

Burma Aid for Border Refugee's Problems ................................................ 95

Actions of B H P ................................................................................. 96

Sources of intelligence...................................................................... 96

Australia's response for human rights related issues .................... 96-99

AUSTRADE - Role of L E S ............................................................. 99-100

UN Organisations in R angoon......................................................... 101

Escalation of internal conflict........................................................... 101-102

Burmese students in Australia ........................................................ 102

Vietnam Bilateral Aid ...................................................................................... 102-103

Human rights program ...................................................................... 103-104

Taiwan Visit by DFAT O fficer...................................................................... 104-105

Hong Kong, Taiwan & Macau Affairs Section ............................. 105-106

PROGRAM 2 - TRADE RELATIONS AND ECONOMIC ISSUES

2.1 Multilateral Trade Issues EEC policies & Uraguay round of G A T T ......................................... 106-110

Coloured boxes ................................................................................... 110-111

PROGRAM 3 - GLOBAL ISSUES

ABC Reporters on the Rainbow Warrior I I .................................... 111-114

ABC Reporters in P N G ...................................................................... 114

3.2 International Political, Social and Legal Issues Contributions to -Commonwealth Secretariat............................................................... 114-115

Commonwealth F oundation............................................................. 115-116

PROGRAM 5 - AID

5.1 Country Programs Details of Aid program s...................................................................... 116-117

AID programs in P N G ........................................................................ 117-118

Human demography issues................................................................. 118-122

Mekong Bridge ................................................................................... 122

5.3 Corporate Services Academic consultancies ..................................................................... 122-123

100

P R O G R A M 6 - C O R P O R A T E A N D P U B L I C S E R V IC E S

6.3 Overseas Support Services ADCNET 123-134

Destruction of confidential waste ...................................................... 134-135

PROGRAM 8 - AUSTRADE

Fraud Protection Program ................................................................. 135

Export development grant - Light 'n Easy Agencies P.L................... 135-136

DEPARTMENT OF FINANCE - 2-3 APRIL 1992

OVERVIEW

Appropriation Bill No. 5 -Requirement for ............................................................................... 138-146

Contractual arrangements for payment of allowances .................. 146-154

Child-care .......................................................................................... 154-155

Fightback! - Departmental funds spent in appraisal o f .................... 155-168

One Nation - Departmental funds spent in appraisal o f .................. 168-177

Budgetary outlook - 1991-92 & 1992-93 ........................................... 177-178

PROGRAM 2 - RESOURCE MANAGEMENT FRAMEWORK

Reserve Bank charges for certain transactions and overdraft fees 178-181

PROGRAM 4 - RETIREMENT BENEFITS

4.1 Retirement BeneGts OfGce New Commonwealth Superannuation Schem e.................................. 187-188, 189-190

PROGRAM 5 - SPECIFIC PAYMENTS AND RECEIPTS ACTIVITIES

5.3 Commonwealth Task Force on Asset Sales Q ANT AS & Australian A irlines........................................................ 228-234

ANL 234-236

H L IC ..................................................................................................... 236-239

Status of litigation 239

PROGRAM 6 - CORPORATE SERVICES

Assets registers ................................................................................... 181-182

Funding of the Audit O ffice............................................................... 182-183

New Audit legislation.......................................................................... 183-185

101

P R O G R A M 7 - A U S T R A L I A N N A T I O N A L A U D I T O F F IC E

New Audit legislation.......................................................................... 190-191, 194-195

Exemptions from a u d i t........................................................................ 191-192

Types of audits..................................................................................... 192-193

Use of Australian Credit c a rd ............................................................. 193-194

Training of Public Service Officers re auditing requirements ......... 195-196 Audit of the ATO - request for d e la y ................................................. 196-205

DEPARTMENT OF THE TREASUR Y - 2-3 & 21 APRIL 1992

OVERVIEW

Fightback - appraisal o f ..................................................................... 243-246, 253-257,

.................................................................................................. 277-279, 287-290,

.................................................................................................................... 306, 405-407,

One Nation - appraisal o f .................................................................... 246-248, 270-272,

.................................................................................................................................. 290-301

Microeconomic Modelling Unit -Establishment ................................................................................... 248-250, 261,

................................................................................................................................... 273-275

Functions........................ 250

Limitations ............................................ 250-251

Use to analyse Fightback................................................................. 251, 253, 261-264,

................................................................................................................................... 265-268

Alleged use to analyse One N ation................................................. 251-252, 275-276

Leaked documents to Four Corners Program .................................. 257-258

Inflation rates & Fightback................................................................. 269-270

PROGRAM 1 - ECONOMIC POLICY

1.1 Macroeconomic Prices Surveillance Authority Monitoring of likely issues ............................................................... 222

Coastal Shipping .............................................................................. 222-223

Types of methodology used in surveys .......................................... 223-224

T & 2C coins - phasing o u t ............................................................... 224-225

Airfare prices ................................................................................... 225-226

Redundant O fficers.......................................................................... 226-227

1.3 Macroeconomic Swap interest regime .......................................................................... 304-306

102

P R O G R A M 2 - F I N A N C I A L S Y S T E M

Z1 Financial Sector Policy and Administration Access to Treasury green paper ......................................................... 306-307

Sale of Housing Loan Insurance Corporation .................................. 307-309

Insurance & Superannuation Commission Reasonable Benefits Limit -timeliness of service to clients ...................................................... 206-208

administration o f ............................................................................. 208

backlog of correspondence............................................................. 208-210

Compensation payments .................................................................. 210-211

Decentralisation of the system ......................................................... 211-212

008 numbers ...................................................................................... 212

Super Guarantee levy ...................................................................... 212-215

PROGRAM 4 - CORPORATE SERVICES

Role of women in Treasury ............................................................... 279-282, 304

Requirement to hold an economics d e g re e ...................................... 282-282, 284-285

World Bank & I M F ............................................................................. 282-284

Backgrounds of Treasury SES Officers ............................................. 285-287

PROGRAM 5 - AUSTRALIAN BUREAU OF STATISTICS

Labour Force Survey Collection methodology................................................................... 215-218

PROGRAM 6 - TAXATION ADMINISTRATION

6.1 Income Tax Duties of income tax auditors............................................................. 309-311

Alleged improper action by auditors.................................................. 311-312

Court proceedings against officers of the ATO ................................ 312-314

Record keeping within the A T O ........................................................ 314

Improper use of ATO Resources ...................................................... 314-315

Cost of being au d ited .......................................................................... 315

Random choice of audits ................................................................... 315-316

Penalties for incorrect claims ............................................................. 316-318, 419

Incorrect advice from ATO ............................................................... 318

Record keeping by small businesses .................................................. 318-322

Politicians & tax re tu rn s..................................................................... 322-323, 328-329,

................................................................................................... 332-333, 339-340,

................................................................................................................................... 344-345,

Crimes Act & apportionment............................................................. 323-324

Prosecutions unit ................................................................................. 324-325

Difficulty of coordinating response relating to Crimes A c t .............. 325-327, 328 Number of prosecutions 1991-92 ........................................................ 327

Confidentiality of ATO docum ents.................................................... 329-332, 340-343,

.............................................................................................................. 345

103

Different responses by different state offices.................................... 333-339

Auditing of the ATO General issues................................................................................... 345-347

Number of ATO records ................................................................. 348-349, 351, 356-

Ageing process of d e b t..................................................................... 349-350

Priorities within A T O ........................................................................ 350-351, 357-358

Sales t a x ............................................................................................ 352, 356-357

Accuracy of ATO records ............................................................... 357

ATO procedures .............................................................................. 358

ATO's non-compliance with the Auditor General's procedures . . 359-360 Asset register..................................................................................... 360-362

Request to defer a u d it..................................................................... 363-364

Usefulness of auditing the ATO at this stage ............................... 364

Accidental release of provisional assessments ................................. 364-367

Prostitutes & PAYE t a x ..................................................................... 367

Capital gains ta x ................................................................................... 372-373

Courts of no written record .............................................................. 373

Interest payable on incorrect assessments........................................ 373-374

Revision of practice of applying tax refunds to tax debits................ 374

Tax on buildings used for R&D ........................................................ 374-375

Lack of deductibility for expenses incurred overseas ...................... 375-376

Church workers ................................................................................... 376-377

Anomalies in Capital Gains Law ........................................................ 377

Liquidators declaration....................................................................... 377

Agents & possession............................................................................ 378

Cost of draft rulings............................................................................ 378-379

PPS fo rm s ........................................................................................... 380

Tax deductibility for production of film s ........................................... 380-381

Spouses running for Parliament - inability to claim expenses ......... 382

Self-funded retirees ............................................................................ 382

Revenue collection.............................................................................. 383, 385-387,

................................................................................................................................... 388-390

Infrastructure b o n d s............................................................................ 384

Pooled development f u n d s ................................................................. 385

Cash transactions legislation.............................................................. 391

Principal place of residence & income ............................................. 395-396

Capital Gains Tax cell ....................................................................... 399

Constitutionality of capital gains tax ................................................. 402-403

Tax Pack & audit of work expenses ................................................. 408-410

Checking of self assessments.............................................................. 410-413

Responding to general correspondence............................................. 413-414

Quality of form letters ....................................................................... 414-415

Extension of capital gains tax cell concept........................................ 415

Tax rorts ............................................................................................. 415-416

Cost of collection r a tio ....................................................................... 416-417

Fringe Benefits tax payments ............................................................ 418

Tax on bank interest ......................................................................... 418-419

Abolishment of 'Tax Relief Board;' ................................................. 419-420

Taxing of restrictive covenants .............................................. 420-421

104

6.2 Sales Tax Sales Tax & insect repellents ............................................................. 369-370, 372

Downsizing of sales tax branch........................................................... 371

Seminars on Training Guarantee Levy ............................................. 371-372

Life saving drugs on pets ................................................................... 383, 407-408

New sales tax legislation..................................................................... 392-394

Inground swimming pools - refund of sales tax ............................... 400-402

Cost to revenue & benefits to small business - resulting from changes 403-405 Increased need for record keeping .................................................... 407

6.3 Corporate Support Forward planning................................................................................. 388

Central control of cash registers........................................................ 390-391

Electronic Funds Transfer ................................................................. 390-391

Construction of new facilities ............................................................. 395

Possible siting of tax office on the 'Gold Coast' ............................. 396-397

Closing of Offices at certain times & training needs ............. .. 397-398

Multi-skilling of O fficers..................................................................... 399-400

Decentralisation p ro g ram ................................................................... 416-417

6.4 Child Support Agency Discrepancy between estimated & actual savings............................. 421

Enforcement procedures ................................................................... 422

Capability to pay ................................................................................. 423

Encouragement to recipients to re-enter the workforce.................... 423

Proof of paternity................................................................................. 423-424

PROGRAM 7 - INDUSTRY COMMISSION

Assessment of productivity................................................................. 239-240

Nature of references .......................................................................... 241-242

Management train in g .......................................................................... 242-243

105

List Of Questions

Taken On notice

During The

COMMITTEE'S

Consideration Of

The estimates

107

’ W > ¥ »

E ST IM A T E S C O M M IT T E E B

List of questions on notice during the Committee’s consideration of the Estimates (updated to 16 May 1992)

DEPARTMENT OF DEFENCE:

(Note: Number in brackets after the subject is Department of Defence local question number)

Senator Date to Dept/ Subject

Hansard Page No.

OVERVIEW

PROGRAM 1 - FORCES EXECUTIVE

Short 11.3.92 Trade Union grants (1)

O’Chee 12.3.92 Earth Summit (2)

Tambling 23.3.92 Surveillance in Northern Australia (3)

Childs 24.3.92 Gulf War (4)

Newman 27.3.92/p.7 Ready Reserve appropriation (5)

MacGibbon 27.3.92/p.9 Army recruit education level (6)

Newman/ MacGibbon 27.3.92/p. 11 Individual services record (7)

Durack 27.3.92 Force Structure Review (44)

Durack 27.3.92 Base closures (52)

Date Received

27.3.92 27.3.92 9.4.92 9.4.92

23.4.92 27.3.92/p.37/23.4.92

23.4.92 24.4.92 23.4.92

Senator Date to Dept/ Subject

Hansard Page No.

Durack 27.3.92

Durack 27.3.92

Durack 27.3.92

Ready Reserve scheme - enlistees (61) Ready Reserve scheme - estimated cost (62) Pet relocation expense allowance (68)

1.3 Personnel Teague 27.3.92/p.20

Durack 27.3.92

Durack 27.3.92

Military attache positions (8) National Defence College proposal (47) Defence Force personnel studying overseas (49)

1.4 Health Policy and Services MacGibbon Newman Newman

Durack

27.3.92/p.21 27.3.92/p.23 27.3.92/p.23 27.3.92

Cost of individual tests for HIV (9) Health care facilities (10) Clinical practitioners (11) Medical and dental facilities (51)

1.8 Australian Defence Force Superannuation Newman 27.3.92/p.26 Superannuation contributions (12)

1.9 Defence Housing

Newman 27.3.92/p.28 Temporary accommodation allowance (13)

MacGibbon 27.3.92/p.29 Purchase of land and environmental orders (14)

PROGRAM 2 - NAVY

2.1 Combat Forces Teague 27.3.92/p.31 UN Peacekeeping - reimbursement (15)

Date Received

23.4.92 23.4.92 23.4.92

23.4.92 23.4.92 23.4.92

23.4.92 24.4.92 23.4.92 23.4.92

23.4.92

23.4.92 23.4.92

23.4.92

Senator Date

Received

2.3 Logistics support Teague 27.3.92/p.33

PROGRAM 3 - ARMY

Durack 27.3.92

Durack Durack

27.3.92 27.3.92

3.1 Combat Forces

Teague Newman

27.3.92/p.33 27.3.92/p.34

3.3 Base Logistics MacGibbon Newman 27.3.92/p.35

27.3.92/p.36

PROGRAM 4 - AIR FORCE

4.1 Combat Forces Newman 27.3.92/p.38

Compensation - asbestos related cases (16)

Australian Cadet Corps - estimated cost of support (48) Defence equipment - running costs (55) Leopard Tanks (56)

ANOA’s recommendations (17) Average cost of postings (18)

Current prices for uniforms (19) Tenders for uniform contracts (20)

Allocation of manpower to 34 Squadron (21)

23.4.92

23.4.92

23.4.92 23.4.92

23.4.92 23.4.92

23.4.92 23.4.92

23.4.92

Senator Date to Dept/

Hansard Page No.

Subject

4.2 Executive Teague 27.3.92/pAl List of aircraft accidents (22)

Durack 27.3.92 Defence Force Boards of Inquiry reports into RAAF

and Army air crashes (46)

PROGRAM 5 - STRATEGY AND INTELLIGENCE

Date Received

23.4.92 27.4.92

Durack 27.3.92 North West Cape - civilian contractors (57) 23.4.92

PROGRAM 6 - ACQUISITION AND LOGISTICS

Newman 27.3.92/p.46 Rental space (23)

Durack 27.3.92 Civil offsets program - cost to Commonwealth (39)

Durack 27.3.92 Civil offsets program - cost implications to

Defence (40)

Durack 27.3.92 Civil offsets program - Defence projects (41)

Durack 27.3.92 JORN project (42)

Durack 27.3.92 Personnel numbers (45)

Durack 27.3.92 Industry Involvement sub-committee

recommendations from the Inspector General (50)

Durack 27.3.92 Mr Mike McNamara - open seminar at ADFA (66)

Durack 27.3.92 Marine Support Facility at Fremantle (43)

Durack 27.3.92 Refit of HMAS Onslow and Otama (53)

Durack 27.3.92 Chinooks negotiations (54)

23.4.92 23.4.92 23.4.92

23.4.92 23.4.92 24.4.92 23.4.92

23.4.92 23.4.92 23.4.92 23.4.92

Senator Date to Dept/

Hansard Page No.

Subject

6.1 M a jo r C a p ita l E q u ip m e n t

Issuing of Steyr rifles to reserve units (24) MacGibbon 27.3.92/p.49 MacGibbon 27.3.92/p.49 Cost of LAV evaluation (25)

Teague 27.3.92/p.53 16 top projects on Budget (26)

Schacht 27.3.92/p.54 Communications links (27)

Schacht 27.3.92/p.54 Parakeet Project cost (28)

Durack 27.3.92 Major assemblies (59)

Durack 27.3.92 ANZAC Ship project (60)

6.2 F a c ilitie s

Newman 27.3.92/p.55 DSD Housing - sales (29)

Newman 27.3.92/p.56 Home loan subsidy (30)

Newman 27.3.92/p.57 Enoggera accommodation (31)

6.3 L o g istic s Durack 27.3.92 Commercial Vehicle Management Program (67)

6 .4 In d u stry In v o lv e m e n t a n d C o n tra c tin g

Teague 27.3.92/p.59 List of Defence equipment sold (32)

Durack 27.3.92 Defence industry plant and equipment -

book value (58)

Durack 27.3.92 Australian Defence Industries (63)

Durack 27.3.92 Defence exports - additional information to questions

on notice (64)

Date Received

23.4.92 23.4.92 23.4.92 23.4.92 23.4.92 23.4.92 23.4.92

23.4.92 23.4.92 23.4.92

23.4.92

24.4.92 23.4.92

23.4.92 23.4.92

Senator Date to Dept/ Subject

Hansard Page No.

PROGRAM 7 - BUDGET AND MANAGEMENT

Newman 27.3.92/p.61

Newman 27.3.92/p.61

Parer 27.3.92

Parer 27.3.92

Parer 27.3.92

Compensation payments (33) Projected military compensation scheme (34) Photocopier (69) Printing (70) Printing and publishing (71)

7.3 P ro g r a m D e liv e r y A s s e s s m e n t

Durack 27.3.92 Fraud investigations (65)

PROGRAM 8 - SCIENCE AND TECHNOLOGY

8.3 M a te r ia ls R e se a r c h

Newman 27.3.92/p.63

Newman 27.3.92/p.63

Newman 27.3.92/p.67

Newman 27.3.92/p.69

MRL Scottsdale - corrected figures (35) MRL Scottsdale - purchasing requirements (36) DSTO professional officers (37) Women scientists and engineers (38)

Date Received

23.4.92 23.4.92 23.4.92

24.4.92 24.4.92

24.4.92

23.4.92 23.4.92 23.4.92 23.4.92

Senator Date to Dept/ Subject

Hansard Page No.

DEPARTM ENT OF FOREIGN AFFAIRS AND TRADE:

OVERVIEW Short 6.3.92 l

Hill 31.3.92/p.82 1

Hill 31.3.92/p.83 '

1

Newman 31.3.92/p.85 <

Newman 31.3.92/p.86 1

PROGRAM 1 - BILATERAL RELATIONS 1.1 Relations with Asia Tambling 23.3.92 i

:

Schacht 31.3.92/p.95 1

Harradine

1

31.3.92/p. 101

Newman/ Hill

31.3.92/p. 102 '

Hill 31.3.92/p. 102 :

Grants to trade unions & community groups * Department * AIDAB

LES (London) - staff numbers & reductions Technical Officer restructuring - horizontal versus vertical, basis of agreements between union & management & additional benefits to Department

Compensation for former officers Deputy Secretaries & First Assistant Secretaries with ambassadorial experience

Consultation with Indonesia regarding entry of illegal fishermen & boat people into Australian waters

Number of Officers stationed in Phnom Penh who have previous experience in Cambodia UN organisations located in Rangoon Current status of Burmese students in Australia

Number of countries providing bilateral aid to Vietnam

Date Received

23.4.92 23.4.92 23.4.92 23.4.92

23.4.92 23.4.92

23.4.92

23.4.92

23.4.92 21.4.92

21.4.92

Senator Date to Dept/ Subject

Hansard Page No.

PROGRAM 2 - TRADE RELATIONS AND ECONOMIC ISSUES 2.1 Multilateral trade issues Boswell 31.3.92/p.Ill Australia & the Uruguay Round of GATT

PROGRAM 3 - GLOBAL ISSUES 3.2 International Political, Social and Legal Issues O’Chee 11.3.92 Resources allocated for United Nations Conference on the

Environment - ‘Earth Summit’ * Department AIDAB AUSTRADE

Harradine 31.3.92/p.114 Harradine 31.3.92/p. 115 Schacht 31.3.92/p.l 16

Escalation of contributions to the Commonwealth Secretariat Commonwealth countries & their assessments Standards applied to Commonwealth Foundation projects

PROGRAM 5 - AID 5.1 Country Programs Harradine 31.3.92/p.l 17 Harradine 31.3.92/p.l 18

Harradine 31.3.92/p.l 19 Hill 31.3.92/p.l22

Hill 31.3.92/p. 123

Harradine 31.3.92/p. 124 Hill 31.3.92/p. 125

Cost of programs to New Guinea Demographer & human resource specialist employed by World Bank in New Guinea

Report detrimental to New Guinea Projects in Laos affected by the Mekong Bridge project Status of Bah Bolon Project DIFF projects

Additional funds for the ISS scheme

Date Received

23.4.92

23.4.92 23.4.92 23.4.92 23.4.92

23.4.92 23.4.92

22.4.92 22.4.92

22.4.92 22.4.92 22.4.92 22.4.92

22.4.92

Senator Date to Dept/ Subject

Hansard Page No.

Date Received

Harradine 31.3.92/p.125 Harradine 31.3.92/p. 125

Cuts in global aid programs Details of rejected & successful applications for assistance

PROGRAM 6 - CORPORATE AND PUBLIC SERVICES 6.2 Corporate Services Parer 26.3.92

Harradine 23.4.92

Photocopy machines in the Department & statutory authorities * Department * ACIAR

* AIDAB

* AUSTRADE Tendering process for ADCNET equipment

PROGRAM 8 - AUSTRADE O’Chee 31.3.92/p. 32 Use of false invoices to justify an export grant

DEPARTMENT OF FINANCE: OVERVIEW Short 5.3.92

Short 6.3.92

O’Chee 11.3.92

Resources spent on costing Fightback! * Department * Australian National Audit Office

Grants to trade unions & community groups Resources allocated for the United Nations Conference on the Environment . ‘Earth Summit’

22.4.92 22.4.92

23.4.92 23.4.92 23.4.92 23.4.92 29.4.92

22.4.92

2.4.92 2.4.92 2.4.92 25.3.92

Senator Date to Dept/ Subject

Hansard Page No.

Tambling

Short & Bishop PROGRAM 2 Short

24.3.92 Resource agreement with the Australian Customs Service to cover the cost of increased surveillance Data relating to the introduction of Appropriation Bill No. 5 2.4.92/pgs 147, 152, 153 & 154

RESOURCE MANAGEMENT FRAMEWORK 2.4.92/p.l79 Overdraft facilities with the Reserve Bank of Australia

PROGRAM 4 - RETIREMENT BENEFITS Short 2.4.92/p.l89 Percentage of members transferring from to PSS from CSS

Short 2.4.92/p.l89 Expected as opposed to actual transfer rates for PSS

PROGRAM 5 - SPECIFIC PAYMENTS & RECEIPTS ACTIVITIES Short 2.4.92/p.237 Sale of HLIC

PROGRAM 6 - CORPORATE SERVICES Parer

Parer

Bishop Short

26.3.92

26.3.92

2.4.92/p. 162 2.4.92/p. 169

Photocopy machines installed in the Department * Department )

* Australian National Audit Office ) * Retirement Benefits Office )

Impact & offset printers installed in the Department * Department )

* Australian National Audit Office ) * Retirement Benefits Office )

Monthly overtime figures Coordinator on One Nation

Date Received

31.3.92

24.4.92

24.4.92

24.4.92 24.4.92

24.4.92

2.4.92 & 24.4.92

2.4.92 & 24.4.92

24.4.92 24.4.92

Senator Date

Received

Short 2.4.92 Officers travelling overseas or on secondment overseas

PROGRAM 7 - AUSTRALIAN NATIONAL, AUDIT OFFICE Bishop 2.4.92/p. 193 Response from Department of Finance regarding missing assets Bishop 2.4.92/p. 194 Guidelines for Australian Credit Card System

Bishop 2.4.92/p.205 Request for delay in audit of the ATO

D E P A R T M E N T O F T H E T R E A S U R Y :

OVERVIEW Short 11.3.92 Grants to trade unions & community groups

* Department * Australian Bureau of Statistics * Australian Taxation Office * Industry Commission

* Insurance & Superannuation Commission * Prices Surveillance Authority * Reserve Bank of Australia

24.4.92

28.4.92

28.4.92 14.5.92 28.4.92

2.4.92 2.4.92 6.4.92 2.4.92 2.4.92

1.4.92 2.4.92

Senator Date to Dept/ Subject

Hansard Page No.

O’Chee 12.3.92

Parer 27.3.92

Parer 27.3.92

Resources allocated for the United Nations Conference on the Environment - ‘Earth Summit’ * Department * Australian Bureau of Statistics

* Australian Taxation Office * Industry Commission * Insurance & Superannuation Commission * Prices Surveillance Authority

Impact & offset printing equipment installed in the Department & statutory authorities * Department * Australian Bureau of Statistics

* Australian Taxation Office * Industry Commission * Insurance and Superannuation Commission * Prices Surveillance Authority

Photocopying machines owned or leased by the Department & statutory authorities * Department * Australian Bureau of Statistics * Australian Taxation Office

* Industry Commission * Insurance and Superannuation Commission * Prices Surveillance Authority

Date Received

2.4.92 2.4.92 6.4.92 2.4.92 2.4.92

1.4.92

15.4.92 16.4.92 22.4.92 28.4.92

13.4.92 29.4.92

15.4.92 16.4.92 22.4.92 28.4.92 13.4.92 29.4.92

Senator Date to Dept/ Subject

Hansard Page No.

PROGRAM 1 - ECONOMIC POLICY 1.1 Macroeconomic Short 11.3.92

Short 3.4.92/p.249

Short 3.4.92/p.267

Short 3.4.92/p.291

Watson 21.4.92/p.424 Prices Surveillance Authority Short 3.4.92/p.223

Teague 3.4.92/p.223

1.3 Debt Management Watson 21.4.92/p.306

Resources allocated to the costing of Fightback! Computer packages used by the Microeconomic Modelling Unit Additional work on analysis of Fightback!

Expenditure cuts allocated by Treasury in its distributional analysis of Fightback! Issue of non-assessable/non-deductible bonds

Changes in coastal shipping prices Comparisons of international coastal shipping with Australia’s coastal shipping

Copy of Auditor General’s report on debt swapping regime

PROGRAM 2 - FINANCIAL SYSTEM 2.1 Financial Sector Policy and Administration Watson 21.4.92/p.307 Denied FOI request

Bishop 21.4.92/p.309 Dividend relating to sale of HLIC

Insurance and Superannuation Commission Alston 31.3.92 Additional expenditure on public information campaign for

the insurance & superannuation sectors

Alston 2.4.92/p.218 Number of staff employed to review the current

superannuation system

Date Received

15.4.92 15.4.92

21.4.92 15.4.92

1.5.92

9.4.92 9.4.92

5.5.92

1.5.92 1.5.92

1.5.92

1.5.92

Senator Date to Dept/ Subject

Hansard Page No.

Alston 2.4.92/p.218 Cost of new computer system to assess final & interim

determinations

Alston 2.4.92/p,218 Number of staff employed by the ATO & ISC to review

submissions on the Superannuation Guarantee Levy

Alston 2.4.92/p.219 Number of staff employed to administer the Superannuation Guarantee legislation Alston 2.4.92/p.219 Total cost of establishing the new administration systems

Alston 2.4.92/p.219 Predicted net increase in the total level of contributions from

implementation of the Superannuation Guarantee legislation

Alston 2.4.92/p.219 Extent to which the Superannuation Guarantee legislation will reduce the cost of old age pensions Alston 2.4.92/p.219 Extent to which the Superannuation Guarantee legislation will affect real wages Alston 2.4.92/p.219 Anticipated inflation impact of the Superannuation Guarantee

legislation

Alston 2.4.92/p.219 Details of part-time & casual employees salaries

Alston 2.4.92/p.220 Estimated total amount of superannuation fund administration in respect of part-time & casual employees Alston 2.4.92/p.220 Number of part-time & casual employees with more than one

job

PROGRAM 4 - CORPORATE SERVICES - DEPARTMENTAL 4.2 Support Services Schacht 3.4.92/p.280 Number of SES Officers brought in from outside the

Department

1.5.92

1.5.92

1.5.92

1.5.92 6.5.92

6.5.92

5.5.92

6.5.92

1.5.92 1.5.92

1.5.92

15.4.92

Date Received

Senator Date to Dept/ Subject

Hansard Page No.

Schacht 3.4.92/p.281 Affirmative action programs in the Department

PROGRAM 6 - TAXATION ADMINISTRATION 6.1 Income Tax O’Chee 18.3.92

Alston 2.4.92/p.218

Alston 2.4.92/p.218

Alston 2.4.92/p.218

Alston 2.4.92/p.218

Alston 2.4.92/p.218

Alston 2.4.92/p.219

Alston 2.4.92/p.219

Alston 2.4.92/p.219

PPS Audits & expected revenue * obligations of duty free store operators relating to commissions paid to tour guides * total expected revenue from duty free stores

* portion of PPS revenue is attributable to commissions Total value of tax rebate on part of an annuity or superannuation pension Total value of tax deductions on contributions for employees

with award superannuation only Total value of tax rebates on contributions for employees with modest employer support instead of award superannuation

Total value of foregone tax revenue from rollover of payments Total value of tax collected on lump-sum entitlements annuity/pension entitlements

Process for collecting tax on the Superannuation Guarantee Levy Estimated value of contributions tax on contributions of part­

time & casual employees Estimated foregone personal taxation revenue resulting from the Superannuation Guarantee legislation

15.4.92

14.4.92

1.5.92

1.5.92

1.5.92

1.5.92

1.5.92

1.5.92

1.5.92

5.5.92

Date Received

Senator Date to Dept/ Subject

Hansard Page No.

Date Received

Alston 2.4.92/p.219 Contribution tax to be collected under the Superannuation

Guarantee legislation

Alston 2.4.92/p.219 Estimated tax revenue from part-time and casual employees superannuation funds Alston 2.4.92/p.220 Estimated tax expenditure of implementing legislation to collect tax on amendments to trust deeds

Watson 21.4.92/p.310 Excessive zeal used by tax auditors

Bums 21.4.92/p.310 Guidelines for Income Tax Auditors

Watson 21.4.92/p.311 Alleged criminal activity of ATO officers

Bishop 21.4.92/p.313 List of prosecutions of ATO officers in 1990-91

Short 21.4.92/p.314 Disciplinary measures taken against convicted ATO Officers (1988-89 to 1990-91) Short 21.4.92/p.314 Incorrect letter of assessment by ATO - apology

Watson 21.4.92/p.315 Improper use of ATO resources

Bishop 21.4.92/p.315 Firms prepared to pay initial ATO assessment

Bishop 21.4.92/p.316 Penalties for incorrect claims

Bishop 21.4.92/p.321 Inadequate record keeping - results of prosecutions Watson 21.4.92/p.322 Proportion of tax payers found to lack adequate record keeping Watson 21.4.92/p.323 Cases referred to the DPP relating to apportionment

Bishop 21.4.92/p.324 Decision to refer cases to DPP - legal qualifications of

officers

Watson 21.4.92/p.323-328 Prosecutions under Crimes Act involving apportionment Bishop 21.4.92/p.327 Number of prosecutions purused for non-lodgement in 1990-

1.5.92

1.5.92

1.5.92

6.5.92 4.5.92 29.4.92

4.5.92 29.4.92

6.5.92 29.4.92 6.5.92 4.5.92

6.5.92 6.5.92

6.5.92 6.5.92

6.5.92 6.5.92

Senator Date to Dept/ Subject

Hansard Page No.

Date Received

Bishop 21.4.92/p.332

Bishop 21.4.92/p.334

Bishop 21.4.92/p.339

Watson 21.4.92/p.343 Bishop 21.4.92/p. 344

Watson 21.4.92/p.358

Watson 21.4.92/p.361 Bishop 21.4.92/p.364

Watson 21.4.92/p.365

Bishop 21.4.92/p.366

Bishop 21.4.92/p.366

Bishop 21.4.92/p.372

Bishop 21.4.92/p.373

Watson 21.4.92/p.373 Watson 21.4.92/p.373 Watson 21.4.92/p.375

Watson 21.4.92/p.376 Watson 21.4.92/p.377 Watson 21.4.92/p.379

Watson 21.4.92/p.380

Previous employment of investigators in NSW police force Prosecution guidelines as agreed to between ATO & DPP False bank accounts - lack of prosecution (Perth) Progress of investigation into ‘Smiles’ case

Politicians & the ATO Ability of new ATO computer system to identify debts due & payable Accuracy of asset register information

Computer enror - incorrect distribution of assessments Arrangements to prevent sensitive tax information being leaked

Computer error - format of apologetic letters Report relating to accidental release of documentation Foregone revenue through no CBT on family home Capital gains tax specialist cell - revenue work

Payment of interest on incorrect assessments Courts of no written record - degree of justice Eligibility of National Trust registered buildings for tax deduction Taxability of money given to church workers for a holiday

Liquidators declarations in terms of 160WA Information in tax pack regarding availability of draft & final rulings Reason for drafting services being exempt from PPS

29.4.92 4.5.92 7.5.92

29.4.92 6.5.92 7.5.92

29.4.92 29.4.92 6.5.92

29.4.92 6.5.92 6.5.92 6.5.92

6.5.92 6.5.92 29.4.92

4.5.92 6.5.92 6.5.92

4.5.92

Senator Date to Dept/ Subject

Hansard Page No.

Watson 21.4.92/p.381 Tax deductibility for film production

Watson 21.4.92/p.414 Questions on notice from Shadow Minister for Industrial Relations - tax retorts Watson 231.4.92/p.415 Quality of form letters

Watson 21.4.92/p.418 Payment of FBT on taxi fares for ATO officers by the ATO

Watson 21.4.92/p.424-425 Deductions for exploration & prospecting expenditure Watson 21.4.92/p.425 Costs incurred in takeovers - deductions

Watson 21.4.92/p.425-426 Everett amnesty

Watson 21.4.92/p.426 Review of EDR ruling no. 45

Watson 21.4.92/p.426 Capital Gains Tax & land deals

Watson 21.4.92/p.426 Capital Gains Tax - transfer of losses within a company Watson 21.4.92/p.427 Capital Gains Tax - transfer of assets to a wholly owned

company

Watson 21.4.92/p.427 Capital Gains Tax - transfer of partnerships assets to a

wholly owned company

Watson 21.4.92/p.428 Capital Gains Tax - transfer of assets within a company Watson 21.4.92/p.428 Capital Gains Tax - transfer of assets between companies of common ownership Watson 21.4.92/p.429 Capital Gains Tax - exclusion of certain forms of settlement Watson 21.4.92/p.429 Capital Gains Tax - threshold amounts

Watson 21.4.92/p.429 Capital Gains Tax - change of underlying ownership Watson 21.4.92/p.430 Capital Gains Tax - calculation of capital losses

Watson 21.4.92/p.430 Capital Gains Tax - return of capital on shares

Watson 21.4.92/p.426 Capital Gains Tax - transfer of losses within a company

Date Received

6.5.92 6.5.92

6.5.92 29.4.92 4.5.92 4.5.92

6.5.92 29.4.92 6.5.92 6.5.92 6.5.92

6.5.92

6.5.92 6.5.92

6.5.92 6.5.92 6.5.92 6.5.92

6.5.92 6.5.92

Senator Date to Dept/ Subject

Hansard Page No.

Date Received

Watson 21.4.92/p.430 Watson 21.4.92/p.430-431 Watson 21.4.92/p.431 Watson 21.4.92/p.431 Watson 21.4.92/p.432 Watson 21.4.92/p.432 Watson 21.4.92/p.432

Watson 21.4.92/p.432 Watson 21.4.92/p.432 Watson 21.4.92/p.433

Watson 21.4.92/p.433 Watson 21.4.92/p.434 Watson 21.4.92/p.434 Watson 21.4.92/P.434 Watson 21.4.92/p.434 Watson 21.4.92/p.434 Watson 21.4.92/p.434 Watson 21.4.92/p.434 Watson 21.4.92/p.434-435

Watson 21.4.92/p.435 Watson 21.4.92/p.435 Watson 21.4.192/p.435

Capital gains - legislative challenge Capital gains tax - record keeping & partnership Westfield case & EDR 72 Veteran’s affairs

Release of names in AAT cases R etirem ent hom es Excessive delays & evasion cases Taxation administration - incorrect assessments

Clearance of software used in ELS Taxpayer (client) service * studies that quantify benefit of service * accuracy & timeliness of advice

Australian Finance Corporation - tax on leased vehicles Outstanding SI69A requests TaxPack & tax agents Tax agent’s lodgement programs - anomalies

Availability of a booklet on FBT Assistance with business tax returns - Tasmanian program Impact of recession on tax revenue Revenue collection - self assessment system

Camp allowances payable to employees & FBT Prescribed payments system Penalty regime - incorrect declaration

Forest products grown on private land & CBT

6.5.92 6.5.92 6.5.92 4.5.92 29.4.92 4.5.92 4.5.92 6.5.92 4.5.92

29.4.92 6.5.92 6.5.92 29.4.92

29.4.92 4.5.92 29.4.92 29.4.92 4.5.92

6.5.92 29.4.92 29.4.92 29.4.92

29.4.92

Senator Date to Dept/ Subject

Hansard Page No.

Date Received

Watson 21.4.92/p.435 Watson 21.4.92/p.436 Watson 21.4.92/p.436

Watson 21.4.92/p.436 Watson 21.4.92/p.436 Watson 21.4.92/p.436-437 Watson 21.4.92/p.437

Watson 21.4.92/p.437 Watson 21.4.92/p.437 Watson 21.4.92/p.437-438 Watson 21.4.92/p,438

Watson 21.4.92/p.438 Watson 21.4.92/p.438 Watson 21.4.92/p.438 Watson 21.4.92/p.439

Watson 2L4.92/p.439

Watson 21.4.92/p.439 Watson 21.4.92/p.439

6.2 Sales Tax

Tambling 23.3.92 Bishop 21.4.92/p.371

Company refund cheques - delay Tax on overseas pensions Approaches to bring non-tax payers within tax net Tax on foreign superannuation funds - education program Tax on foreign investment funds - education program Evasion of taxes by migrants

Intention of the Training Guarantee Act Training guarantee audits Audits & grey areas of the law Publicity of major company audit results

Audits & self-employed professionals (eg doctors) Internal audit division of the ATO Audits & debit/credits to taxpayers Voluntary disclosures

Action to correct cases - issue of incorrect refunds Auditing of tax agents Audits & superannuation funds Audits & swaps

Proposal to implement sales tax on insect repellents Tax on ‘Rid’ - review of ruling

4.5.92 4.5.92 29.4.92 4.5.92 4.5.92

4.5.92 4.5.92 29.4.92 4.5.92

4.5.92 4.5.92 29.4.92 6.5.92

6.5.92 6.5.92 4.5.92 29.4.92

29.4.92

6.4.92 4.5.92

Senator Date

Received

Bishop 21.4.92/p.372

Short Watson

21.4.92/p.391 21.4.92/p.407

6.3 Corporate Support

Alston 31.3.92

Bishop Short

21.4.92/p.371 21.4.92/p.384

Watson Watson Short

21.4.92/p.432 21.4.92/p.432 21.4.92

Expected revenue from additional sales tax on insect repellents Connection of cash registers to central computer bureau Cost of indefinite moratorium on sales tax on veterinary

products

Funds to be spent on publicity campaign for the Superannuation Guarantee Levy Number of ATO officers resigned or transferred elsewhere ATO Officers on overseas secondment or have travelled overseas in 1991-92 Golden Handshakes for ATO Offices Regionalisation program

Additional funds for early completion of buildings

29.4.92

6.5.92 29.4.92

13.4.92

6.5.92 6.5.92

29.4.92 29.4.92 29.4.92

AUSTRALIAN SENATE

ESTIMATES COMMITTEE C

REPORT TO THE SENATE

April 1992

ESTIMATES COMMITTEE C

REPORT TO THE SENATE

Estimates Committee C presents its report concerning Additional Estimates 91-92, to the Senate.

IN T R O D U C T IO N

1. On 5 March 1992 the Senate referred to the Committee:

(1) That the particulars of proposed additional expenditure in relation to the Parliamentary Departments in respect of the year ending on 30 June 1992, the particulars of proposed additional expenditure for the service of the year ending on 30 June 1992 and the particulars of

certain proposed additional expenditure in respect of the year ending on 30 June 1992 be referred to estimates committees for examination and report.

(2) That the committees consider proposed additional expenditure in the estimates committee groupings agreed to by the resolutions of the Senate of 9 and 10 May 1990, 11 September 1990, 13 February 1991 and earlier this day.

(3) That the committees report to the Senate on or before Wednesday, 29 April 1992.

(4) That, subject to this sitting of the Senate, the committees meet to hear evidence in accordance with the following schedule:

(a) Committees A, B and C - Friday, 27 March and Tuesday, 31 March;

(b) Committees D, E and F - Thursday, 2 April and Friday, 3 April; and

(c) if required, on such other days as determined by the

committees.

131

2. The Committee met on 27 and 31 March 1992 to examine the Additional Estimates of the Department of Transport and Communications and the Department of Social Security. The estimates were considered with the assistance of the Program Performance Statements provided by the respective Departments. The Committee received explanations of the Estimates from the Minister for Social Security, Senator the Hon. G.F. Richardson, the Minister for Shipping and Aviation, Senator the Hon. R. Collins, and from officers of the relevant Departments and authorities.

3. Copies of the Minutes of Proceedings, the Hansard reports of the evidence taken by the Committee and an index to the Hansard reports are tabled for the information of the Senate in connection with its consideration of Appropriation Bill No. 3 and No 4 (1991-92). Written answers to questions taken on notice will be tabled separately in the Senate.

A C K N O W L E D G E M E N T S

4. The Committee appreciated the assistance given by the Ministers and the officers of the Departments who appeared before it, in particular the attendance of the Secretaries of the Departments.

5. The Committee further appreciates that several Senators placed questions on notice prior to the hearings. The timeliness of the Departments' response to these questions expedited the work of the Committee.

IS S U E S

General

6. During the hearings for Estimates Committee C on 27 and 31 March 1992 three significant m atters affecting the operation of Estimates Committees became apparent.

Duration of Hearings

7. While the Committee's hearing on Friday 27 March ceased at 3.35 pm that day, the Ministers, officers, the Secretariat and the Chair were available until 4.30 pm. This loss of time was unfortunate given that the subsequent hearing began on Tuesday 31 March from 7.41 pm and did not conclude until 5.35 am on 1 April. During that period of ten hours, the Committee adjourned for three breaks of 10-15 minutes.

8. This kind of sitting is very undesirable. It is most inconvenient and

debilitating. It is not only inconvenient for Parliamentary attendants, the Parliament

132

House switchboard staff, Commonwealth car drivers and the staff of Departments and authorities; it is also onerous on the Ministers and Senators. The quality of the examination of the Estimates in the early hours following a sitting through the night is questionable, but the civility and assistance of officers deserves notice and commendation.

9. The issue of the duration of Estimates Committee hearings needs to considered by the Senate.

Order of Questions

10. Noting the long delays at previous estimates through questions from non­ Committee Senators, the Committee agreed to call Committee members first for each category of questions.

Scope of Questioning

11. The issue of scope of questions at Additional Estimates continues. However, this Committee considers that even where outlays are not involved for particular programs, certain questioning can be useful and appropriate. The minister was of the view that senior officers responsible for such programs should be present; ideally

this would be matched with restraint by the Committee and other Senators.

The Department o f Transport and Communications

Aviation (Program 1)

12. There was extensive questioning of the Civil Aviation Authority concerning contracts for the Australian Advanced Air Traffic System.

13. The Committee was advised th a t while both Thomson Radar and Hughes Aircraft had signed contracts, Thomson is the preferred contractor with Hughes as reserve. This m eant that the CAA is in a very strong position concerning the outcome of the contract.

Australian Broadcasting Corporation (Program 2)

14. There was considerable questioning of the Managing Director of the ABC about the Four Comers program that dealt with the Fightback package and the Treasury analysis of it. Questions were raised about the editorial and program policies of the ABC and the ways in which the Four Comers program complied with them.

133

P ay Television (Program 2)

15. The Committee sought information from the Department about broadcasting policy and pay television. The Department advised that over 100 submissions have been received in relation to the Broadcasting Service Bill·, these submissions are being analysed with a view to the Minister taking recommendations to Cabinet. The Committee was told that the Minister intends to introduce the Bill in May 1992.

Australian Broadcasting Tribunal (Sub-program 2.4)

16. During the hearings, the Committee canvassed extensively the impact of recent changes to the Political Broadcasting and Political Disclosures Act 1991 for the recent elections in Tasmania and the ACT. The ABT Chairman considered that were there to be a Federal election at the same time as a State election, the ABT would experience difficulty with its existing resources. With regard to the future of the Political Broadcasting and Political Disclosures Act 1991, the ABT Chairman advised the Committee that the Act is extremely difficult and complex. The ABT Chairman stated th a t that is presumably why the Government has a draft Broadcasting Services Bill to replace it; he claimed that a total rewrite of the Act is the only way to solve its difficulties.

17. The Committee also raised with the ABT the issue of standards, in particular during the late afternoon in G time. It was questioned whether there might not be an inconsistency in the fact that Fat Cat had been the subject of action but that a program like Studs was shown at 5.30 pm. The ABT Chairman responded that standards can be created only after a public inquiry. The children's standard was w ritten after a three-year inquiry. The Chairman advised that he considered Studs to be distasteful but that at this stage there is no standard that covers matters of bad taste.

The Department o f Social Security

Disability Reform Package - Marketing (Program 2)

18. The Committee sought advice from the Department concerning marketing of the Disability Reform Package. The Department advised that it would cost about $7,911 million over three years. In response to questions the Department stated that, being a joint exercise on behalf of three Departments (with different target audiences), it was better for the marketing to be conducted as an 'umbrella campaign' involving consultancies th at would work together. The Office of Government Information and Advertising draws up a list of recommended agencies that would be best suited, and Departments are not involved in selecting the initial list of companies. However, in this case the Department subsequently suggested that a company should be listed that had already completed three major campaigns for the Department.

134

19. It was also confirmed by the Department that a detailed program of marketing evaluation is being undertaken by the three Departments involved. The Department noted that the cost estimate that it provided for the marketing of the Disability Reform Package did not include the administrative costs of the Departmental officers involved.

Teleservice (Program 4)

20. In answer to a question about the promotion of the retirement saving education program, the Committee was advised by the Department about the Teleservice hotline. The Department advised that the Teleservice hotline was one way in which advice about retirement savings could be provided.

21. It was confirmed that the capital cost of setting up the Teleservice would be about $14 million. However, it was not necessary to seek an appropriation because the funds will be available from previous appropriations where there had been slippages in completion of projects; funds for those projects would be sought again

in the following financial year. The Departmental Secretary advised: 'In the short term, we will be able to meet salary costs and administrative expenses with the expectation that this will be tidied up in the Budget for the next financial year'.

RECOMMENDATIONS

1. Estimates Committee C recommends that the Senate approve, without amendment or request for amendment, expenditure in accordance with additional estimates considered by the Committee.

2. The Committee further recommends that all questions taken on notice by witnesses at the Committee's hearings and not answered before the meeting of the Committee to approve this report, be further examined by the Senate

(see Appendixes 1 and 2). In addition, the Committee notes the reservations of Senators allowing for certain matters to be subject to further examination in the Senate (see Appendix 3).

Rosemary Crowley Chair

135

E S T IM A T E S C O M M IT T E E C

IN D E X T O H A NSARD - 2 7 M A R C H A N D 31 M A R C H 1992

Department o f Transport and Communications

Program 1 - Aviation

Federal Airports Corporation (FAC) 164

Fees 166

Airport Sydney - road problems 167

Brisbane - sand problems 169

- development 170

Melbourne - expansion of International terminal 170

Bankstown - adequacy of the southern end 171

Debts 170

GAIT Charges 172-174

Auditor - General's Report No 22 174

Thompson Radar Contract 175,178-201

Compass Airlines 176, 201

CAA 180

IBM 182

Program 2 - Broadcasting

Broadcasting Services Bill 3-4

Broadcasting Policy 3

Pay TV 3

Senate Inquiry into community 3

137

standard in utilising telecommunication techniques

Program 2.4 - Australian Broadcasting Tribunal

Legal expenses 4

Political broadcasts and disclosures 5

Challenges 5

- Budget estimates 6

Tribunal

- role 6,10

- resources 7,8,11

- divisions 33

Political Broadcasts and Political Disclosure Act 6,8-10,20

- section 18(L) 13

- section 15C 23

Administrative Services estimates 7I

Elections

- Australian Capital Territory 8

- Tasmania 8

- Federal 8

Attorney-General's Department 9

Department of Administrative Services 9

Legislation

- criteria 11

- reasons 11

Licences

- penalties 12-13

- revocation/suspension 13-14

138

Queensland referendum on time zones and daylight savings

Advertisements

15

- Queensland referendum or time zones and daylight 15

savings - Victorian Liberal Party 16

- New South Wales 23

- Tasmania 16,19,23

- Australian Capital Territory 19,23

Business Council of Australia 17

FACTS 17

FARE 17

Free time 17-18

ACT Electricity and Water Authority 20

ACT Government 20

Programs

- Skippy 21

- Fatcat 28-30,32,40,42,44

- Romper Room 28,42

- Here's Humphrey 43

- Studs 29,32,36,43

- Chances 37

- The Wonder Years 40-41

- Ratbag Hero 41

- Dinky Di 42

- Mr Squiggle 50

- Four Comers 51-59,73

- PM 53

- 7.30 Report 60

- Embassy 70

- Genocide 73

AM Licence 24

139

Classification

-C 27

- P 27

- C Australian Drama 27-28

Committee

- Children Program 27,30,34

Standards

- 14 28

- CTS 2 29

ABC 50,55

Copyright Act 51

Treasury 53,55

Fightback 64

GST 64

Accident Compensation Commission 65

Communication Equity Associates 66

Mezzaine Investments 67

Victorian Accident Compensation Commission 67

Senate Standing Committee on Legal and Constitutional 67

Affairs

ABC Act - Section 6 69

Asiasat - Star service 69

BBC 71

Australian Post 73

Land Transport 73

Social Security 73

Aviation 73

140

SBS C74,C130

- self-help scheme C130-132

Program 3 - Communications

Mobilenet 47

AOTC 61,134-135

AUSTEL 48

Telecom Australia International 49

Poland 49

Saudi Arabia 49

Optus 50,136-138

Australian Post 132-134

Print Post 132

Registered Publication Service 132

Post Offices 133

Post Services 134

Telecom 134,135

Telephone Boxes 135

AUSSAT 139

Optic Fibre 139

Coaxial cable 139

Pay TV 140

ITU 141

WARC 142

141

Program 4 - Land Transport

National Rail Corporation 142

One Nation Package 142,145

Road Program 142-143

S turt and Newell Highway 143-144

Booz-Allen Hemilton Report 144

Overland 146

Indian Pacific 146

Projects

- black spots 150,151

- motorcycle safety 151

- general expenditure 152

Databases 151

Program 5 - Maritime

Pollution - oil 155

Redundancies 156,161

Integrated labour force 157

W aterfront Industry Reform Authority 156

EBA 157

NZ/Aust comparison 160

142

DEPARTMENT OF SOCIAL SECURITY

Auditor-General's report

- operational performance monitoring 76,79-80

- sickness benefit 77-80

- audit process 80

Mail-out

- private contractors 81

- privacy considerations 81-83,85

- staffing implications 83

- costs 83-84

Program 2: Income Security for People w ith Disabilities and th e Sick

Disability Support Pension

- numbers 86-7

- take-up rate 87-89

- panel assessment 88

- administrative expenses 104

- assessment procedures 104-105

Disability reform package 88-89,91-100

- tendering arrangements 96-99

Disability support officers 90,95

Corporate Impacts 95-96,99-100

'Age Pension News' - contract arrangements 100

Staffing levels 102

Administrative expenses 102

Program 3 - Income Security for the Unemployed

Job Search Allowance

- take-up rate for farmers 105-107

- publicity campaign 106

Unemployment benefits - casual earnings 103

143

Program 4: Income Security for Fam ilies w ith Children

Incorrect mail-out

- privacy implications 107-108

- action against Department 108

Family Allowance Supplement

- take-up rate 85-86

- overpayments 85

Program 6: Corporate and Other Services

Publicity campaign - saving for retirem ent 109-112

Staffing costs 112-114

Staff numbers 113

Staff/client ratios 113

Teleservice

- tenders 114

- costs 114-15

- evaluation 115

- Brisbane trial 115-117,120

- consultation process 117

- privacy and security implications 117-119,121

- operational details 119-122

'Missing1 client files 122-124

Use of surplus moneys from DSS regional offices 124

Effectiveness of computerised systems 125

Special benefit paid to immigrants 125-26

Overpayments 126-27

144

T H E S E N A T E

E S T IM A T E S C O M M IT T E E C

M IN U T E S O F PR O C E E D IN G S

N O . 1

Friday, 2 7 March 1992

M eeting

The Committee met in public session at 9.08 am in Committee Room 2S3. Senator Crowley took the Chair.

Statement by Chair

Senator Crowley made a statem ent relating to the Senator's resolution of 5 March 1992 and the procedure to be followed by the Committee in its examination of the Additional Estimates. The Chair noted that the Committee had agreed to the recording, broadcasting and re-broadcasting of

the public hearing in accordance with the Senate order of 23 August 1990.

Particulars o f Proposed Expenditure 1991-92: Departm ent o f Transport and Communications.

In Attendance: Senator the Hon. G.F. Richardson. Minister for Transport and Communications. The following officers accompanied the Minister:

Department o f Transport and Communications -

Mr G.C. Evans, Secretary Mr P. Fields, Assistant Secretary, Broadcasting Policy Division Mr T. Shaw, First Assistant Secretary, Broadcasting Policy Division Mr T. Slatyer, Assistant Secretary, National and Public Broadcasting Policy,

Broadcasting Policy Division Mr V.H. Jones, First Assistant Secretary, Broadcasting Operations Division Mr C. Dalton, Assistant Secretary, Communications Selection Team Ms F. Holthuyzen, Acting First Assistant Secretary, Telecommunications

Policy Division Mr R. Smith, Director, Industry and Enterprise Policy Branch

145

Mr T. Dale, Acting Assistant Secretary, Regulatory Policy Branch Mr R. Smith, First Assistant Secretary, Radiocommunications Division Mr D. Buckingham, First Assistant Secretary, Aviation Policy, Security and Infrastructure Mr A. Buttsworth, Principal Adviser Mr R. Elder, Assistant Secretary, Enterprise and Industry Branch Mr P. Memer, First Assistant Secretary, Maritime Policy Division Mr W. Ellis, First Assistant Secretary, Corporate Management Division Mr J. Elliot, Assistant Secretary, Planning and Budgeting Branch, Corporate management Division Mr C. Thorpe, First Assistant Secretary, Land Transport Policy Division Mr N. Potter, Assistant Secretary, Land Transport Operations Branch, Land Transport Policy Division Mr A. Hrast, Director, Program Evaluation and Review Section Mr G. McColl, Director, Road Transport Section

Australian Broadcasting Corporation:

Mr D. Hill, Managing Director Mr P. Lidbetter, General Manager, Finance

Special Broadcasting Services:

Mr R. Diack, Head of Resources and Marketing Mr T.Q. Luu, Head of Radio Mr A. Lloyd-James, Head of Television Mr R. Stokes, Director, Policy and Co-ordination Mr T. Blackie, Acting Director, Finance

Australian Broadcasting Tribunal:

Mr P. Westerway, Chairman Mr N. Grimmond, Acting Director, Corporate Services Division Ms P. Manser, Director, Licensing Ms L. Osbourne, Director, Programs

Australian and Overseas Telecommunications Corporation:

Mr J. Holmes, Secretary Mr S. Fish, Manager

146

Federal Airports Corporation:

Mr P. Snelling, General Manager, Sydney Airport Mr B. Thompson, General Manager, General Aviation Mr A. Gray, General Manager, Finance and Administration Mr G. Gilchrist, Manager, Government Liaison and Corporate Services

Civd Aviation Authority:

Mr F. Baldwin, Chief Executive and Managing Director Mr B. Brooksbank, General Manager, Air Traffic Services Dr R. Edwards, General Manager, Projects Mr R. Cooper, General Manager, Safety Regulations and Standards Mr D. Roser, general Manager, Technical Support Mr M. Mayoh, General Manager, Corporate Finance Mr T. Grant, General Manager, Corporate Employee Relations

Waterfront Industry Reform Authority:

Ms L. Anderson, Finance Officer

Shipping Industry Reform Authority.

Mr P. Newman, Chairman Mr M. Julian, Assistant Secretary, Service Operations Mr A. Kinloch, Manager, Corporate Services

Federal Office o f Road Safety.

Mr K. Wheatley, Assistant Secretary, Road User Branch

Department o f Finance -

Mr T. Dyson, Chief Finance Officer, Transport and Communications Branch Mr R. Robinson, Senior Finance Officer, Surface Transport Section, Transport and Communications Branch

147

4. Program Consideration (On th e call o f the Chair)

Program 2 - Broadcasting Program 3 - Communications

The Chair also called for questions on matters that were not program-specific.

Together the expenditure in these programs comprised the following divisions: 660, 662, 664, 666, 972 and 975.

5. Adjournment

The meeting adjourned at 3.35 pm.

Attendance

The Committee:

Senator R.A. Crowley (Chair) Senator I.D. Macdonald Senator J.H. Panizza Senator the Hon. M. Reynolds

Other Senators:

Senator B. Bishop Senator C. Chamarette Senator R. Kemp Senator C Schacht

Apologies

Senator the Hon. T. Aulich Senator H.G.P. Chapman

Confirmed

Rosemaiy Crowley Chair

148

ES TIM A TE S C O M M IT T E E C

M IN U T E S O F PR O C EED IN G S

N O . 2

Tuesday, 31 March 1992

1. M eeting

The Committee met in public session at 7.41 pm in Committee Room 2S3. Senator Crowley took the Chair.

2. Statem ent by Chair

Senator Crowley made a statement relating to the Senator's resolution of 5 March 1992 and the procedure to be followed by the Committee in its examination of the Additional Estimates. The Chair noted that the Committee had agreed to the recording, broadcasting and re-broadcasting of

the public hearing in accordance with the Senate order of 23 August 1990.

3. Particulars o f Proposed Additional Expenditure 1991-92 - Departm ent o f Social Security.

In Attendance: Senator the Hon. G.F. Richardson, Minister for Transport and Communications, representing the Minister for Social Security. The following officers accompanied the Minister:

Department o f Social Security -

Mr D. Volker, Secretary Mr J. Bowlder, Deputy Secretary Ms C. Hogg, Assistant Secretary, Change Management Branch, Executive Division

Mr C. Butel, First Assistant Secretary, Program Delivery Division Dr O. Donald, First Assistant Secretary, Social Policy Division Mr B. Godfrey, First Assistant Secretary, Resource Management Division Mr I. Camell, First Assistant Secretary, Fraud and Control Division

Mr D. Stanton, First Assistant Secretary, Evaluation and Services Division Mr J. Wadeson, Acting First Assistant Secretary, Systems Division

149

Mr M. Sassella, Principal Legal Adviser, Legal Services Group Mr J. Moore, Executive Manager, Resource Management Division Mr D. Tune, Executive Manager, Program Delivery Division Mr G. Leeper, Acting Assistant Secretary, Budget coordination Branch, Social Policy Division Ms K. Barfoot, Acting Assistant Secretary, Resource Management Division Ms S. Ross, Assistant Secretary, Industrial Relations and Personnel Branch, Resource Management Division Mr C. Stewart, Assistant Secretary, International and Review Branch, Resource Management Division Mr A. Phelan, Assistant Secretary, International and Review Branch, Legal Services Group Ms J. Becan, Assistant Secretary, Audit Branch, Evaluation and Services Division Ms C. Zanetti, Assistant Secretary, Sole P arent Programs Branch, Program Delivery Division Mr J. Powlay, Area manager, Area South East Mr T. Field, Assistant Secretary, Disability Programs Branch, Program Delivery Division Mr V. Gerada, Manager, national Computing Systems Mr D. Rowlands, Task for on FMIP Evaluation Dr R. Worthington, Director, Evaluations Planning Section, Evaluation and Services Division Mr H. Jongen, Senior Director, Public Affairs Mr D. Kalisch, Assistant Secretary, Retirement and Family Policy Branch

Social Security Appeals Tribunal:

Ms A. Coghlan, National Convenor

Australian Institute o f Fam ily Studies:

Dr D. Edgar, Director

Department o f Finance -

Ms M. Wildermuth, Graduate Administrative Assistant Mr P. White, Chief Finance Officer, Social Security Section Mr P. Potterton, Chief Finance Officer, Veterans, Aged and Housing Policy Section

150

Mr J. Stevenson, Chief Finance Officer, Unemployment and Running Costs Section Mr G. Dixon, Assistant Secretary, Social Welfare Branch

4. Program Consideration (On the call o f the Chair)

Program 1 - Income Security for the Retired Program 2 - Income Security for People with Disabilities and the Sick Program 3 - Income Security for the Unemployed Program 4 - Income Security for Families with Children

The Chair also called for questions on matters th a t were not program-specific.

Together the expenditure in these programs comprised the following divisions: 560, 561.

The Committee concluded its considerations of the proposed additional expenditure for the Department of Social Security, subject to undertakings to provide additional information to the Committee.

5. Particulars o f Proposed Additional Expenditure 1991-92 - Departm ent o f Transport and Communications.

In Addition: Senator the Hon. G.F. Richardson, Minister for Transport and Communications.

Senator the Hon. R. Collins, Minister for Shipping and Aviation replaced Senator Richardson from the consideration of Program 4 - Land Transport

The following Officers accompanied the Minister:

Department o f Transport and Communications -

Mr G.C. Evans, Secretary Mr D. Buckingham, First Assistant Secretary, Aviation Division Ms A. Buttsworth, Principal Adviser, Aviation Division Mr R. Elder, Assistant Secretary, Infrastructure Branch, Aviation Division

Mr I. Rischbieth, Assistant Secretary, Infrastructure Branch, Aviation Division Mr T. Slatyer, Assistant Secretary, National and Public Broadcasting Policy Branch, Broadcasting Policy Division

Mr V.H. Jones, First Assistant Secretary, Broadcasting Operations Division Mr C. Dalton, Assistant Secretary, Communications Selection Team Ms F. Holtuyzen, Acting First Assistant Secretary, Telecommunications Policy Division

151

Dr L. Dobes, Assistant Secretary, Industry and Enterprise Policy Branch, Telecommunications Policy Division Mr Richard Smith, Director, Industry and Enterprise Policy Branch, Telecommunications Policy Division Mr Roger Smith, First Assistant Secretary, Radiocommunications Division Mr C. Thorpe, First Assistant Secretary, Land Transport Policy Division Mr N. Potter, Assistant Secretary, land Transport Operations Branch, Land Transport Policy Division Dr G. Feeney, Assistant Secretary, Roads Management Branch, Land Transport Policy Division Mr J. Neil, Assistant Secretary, Land Transport Development Branch, Land Transport Policy Division Mr W. Ellis, First Assistant Secretary, Corporate Management Division Mr J. Elliot, Assistant Secretary, Planning and Budgeting Branch, Corporate Management Division Mr P. Memer, First Assistant Secretary, Maritime Policy Division

Federal Airports Corporation

Mr P. Snelling, General Manager, Sydney Airport Mr B. Thompson, General Manager, General Aviation Mr A. Gray, General Manager, Finance and Administration Mr G. Gilchrist, Manager, Government Liaison and Corporate Services

Civil Aviation Authority:

Mr F. Baldwin, Chief Executive and Managing Director Dr R. Edwards, general Manager, Projects Division Mr D. Roser, General manager, Technical Support Division Mr M. Mayoh, General Manager, Corporate Finance Division Mr G. Beer, Manager, Finance Division Mr T. Grant, General Manager, Corporate Employee Relations Mr P. Middleton, Manager, Standards and Development, Safety Regulation and Standard Division Mr P. Lemon, finance Controller, Safety Regulation and Standards Division Mr B. Kendal, Acting General Manager, Airspace Management and Procedures Ms R. Dubs, General Manager, Corporate Services Division

152

Australian Postal Corporation:

Mr G. Ryan, Corporate Secretary Mr J. Power, Group Manager, Letters Mr J. Marshall, Group Manager, Operation

Federal Office o f Road Safety:

Mr P. Markham, First Assistant Secretary Mr K Wheatley, Assistant Secretary, Road User Branch Mr C. Brooks, Director, research Section

Waterfront Industry Reform A uthority:

Mr L. Anderson, Finance Officer

Australian M aritim e Safety Authority:

Mr M.H. Julian, Assistant Secretary, Service Operations Mr A.G. Kinloch, Manager, Corporate Services Mr G. Mappleback, Assistant Manager, Maritime Rescue Operations

Mr W. Stuart, Assistant Manager, Marine Pollution

Department o f Finance -

Mr T. Dyson, Chief Finance Officer, Transport and Communications Branch Mr R. Robinson, Senior Finance Officer, Surface Transport Section, Transport and Communications Branch

Program Consideration (On the call o f the Chair)

Program 3 - Communications Program 4 - Land Transport Program 5 - Maritime

Program 1 - Aviation

153

The Chair also called for questions on matters that were not program-specific.

Together the expenditure in these programs comprised the following divisions: 660, 663, 665, 667, 668, 972 and 975.

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

7. Adjournment

The meeting adjourned at 5.35 am on 1 April 1992.

Attendance

The Committee

Senator R.A. Crowley (Chair) Senator R.K.R Alston Senator the Hon. T. Aulich Senator G. Chapman Senator I.D. Macdonald Senator K. Patterson Senator the Hon. M. Reynolds Senator M.S. Walters

Other Senators:

Senator B. Bishop Senator M. Colston Senator W. Crane Senator S. Knowles

Apologies

Senator J. Panizza

Confirmed

Rosemary Crowley Chair

154

E S T IM A T E S C O M M IT T E E C

M IN U T E S O F PR O C EED IN G S

N O 3

Tuesday 28 A p ril 1992

1. M eeting

The Committee met in private session at 6.33 pm in the Opposition lobby area adjacent to the Senate Chamber. Senator Crowley took the Chair.

2. Minutes

Minutes of Meetings 1 and 2 were agreed.

3. Report

The Committee considered the draft report on Additional Estimates and adopted it subject to amendments as agreed.

4. Adjournment

The meeting adjourned at 6.50 pm.

Attendance

Senator R.A. Crowley (Chair) Senator H.G.P. Chapman Senator I.D. Macdonald Senator the Hon. M. Reynolds

Senator M.S. Walters

155

Apologies

Senator R.K.R Alston Senator the Hon. T. Aulich Senator J. Panizza Senator K. Patterson

Certified correct

Rosemary Crowley Chair

156

APPENDIX 1

157

ESTIMATES COMMITTEE C

QUESTIONS ON NOTICE - DEPARTMENT OF TRANSPORT AND COMMUNICATIONS

Provided to Senator

21.04.92

13.04.92

Response Date Provided to

Senator

16.04.92

16.04.92

16.04.92

16.04.92

28.04.92

16.04.92

28.04.92

21.04.92

21.04.92

21.04.92

21.04.92

28.04.92

21.04.92

28.04.92

165

APPENDIX 2

169

Provided to Senator

13.04.92

16.04.92

16.04.92

13.04.92

13.04.92

13.04.92

13.04.92

13.04.92

13.04.92

Senator Subject Date to Dept./

Handsard Page Response Date Provided to

Senator

Knowles Savings in direct payments and

administrative costs

C125 10.04.92 13.04.92

O '

APPENDIX 3

177

T H E S E N A T E

C A N B E R R A , A . C . T .

27 April 1992

The Committee Secretary- Estimates Committee C

Dear Mr Grundy,

Reservation - Additional Estimates

By way of reservation, I recommend th a t the following m atter (s) arising from the consideration of the Additional Estimates be the subject of further debate in the Senate:

Ian Macdonald Senator for Queensland

179

> » 7

AUSTRALIAN SENATE CANBERRA. A.C.T.

April 28, 1992

Mr Peter Grundy Committee Secretary Estimates C

Dear Peter,

I write in response to a reply from the Federal Office of Road Safety, Department of Transport & Communications, regarding questions asked by me at Estimates Committee C on Tuesday March 31, 1991 (Hansard Reference: page C 152), regarding the names of consultants or agents used by the Office in the provision of program assistance.

The response provided is less than adequate and quite unsuitable. It only refers me to a location where further information may be found. This does not actually answer my questions. I believe the Department has been lax and could have quite easily forwarded the relevant sections from the five Annual Reports it refers to and forwarded them in place of the meagre information it chose to supply.

Therefore, I wish to record a reservation on behalf of the Committee:

"I recommend that the following matter relative to the Additional Estimates for the Department of Transport & Communications be further considered by the Senate:

The Federal Office of Road Safety, Sub-Program 4.2."

180

ESTIMATES COMMITTEE C

RESERVATION BY SENATOR BRONWYN BISHOP A N D SENATO R BILL· O'CHEE

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

DEPARTMENT O F TRANSPORT A N D COMMUNICATIONS

Sub-Program 1.5 Federal Airports Corporation

Bankstown Airport

Continued problems associated with deficiencies on the southern side of Bankstown Airport were discussed and the involvement of the Commonwealth Ombudsman in the matter was noted.

Sub-Program 1.6 Civil Aviation Authority

TAAATS

We express concern about the following issues which examination of the Civil Aviation Authority revealed. These issues relate to the awarding of preferred tenderer status to Thomson CSF for the installation of The Australian Advanced Air Traffic System (TAAATS).

The new tendering procedure adopted by the CAA does not appear to be designed to select in a fair and unbiased manner, the best tenderer from the widest possible field.

At the commencement of the tender procedure, the CAA claimed the assessment procedure would be operationally driven. The debriefing of the eliminated tenderers proved that this was not the case.

The officials of the CAA appeared unable to consistently identify the point at which risk was assessed for the respective tenderers, and the weighting that the risk criteria received. In view of the preferred tenderer's alleged record of below standard performance, this information was crucial to the Committee.

There appeared to be a distinct discrepancy between the answers provided to questions on notice regarding the performance of the RASPP radar at Coolangatta and evidence provided to the Committee based on correspondence between Civil Air and the CAA.

The Minister did not deny the deficiencies of the Thomson system demonstrated through international experience.

The officials of the CAA confirmed there were software problems identified in the Cairns trials of the Thomson radar specifically relating to aircraft transponder codes ending in "00".

The CAA clearly chose to ignore the advice of the Department of Industry, Technology and Commerce in considering Australian tenderers, and demonstrated little regard for the contribution made to Australian industry by the respective tender bids.

The Minister, whilst prepared to arrange a public briefing with CAA officials on the issue of the tender procedure and the performance of Thomson, was reluctant to place the briefing on the public record. We recommend that the Senate notes that the Minister was not prepared to schedule this briefing prior to the preparation of the Committee's report. We reserve comment on the outcome of the public briefing until such time as the Senate examines the Committee's report.

We note the reluctance of witnesses to provide answers to the Committee claiming th a t the information was commercial-in-confidence and consider that such a defence was used as a device to avoid answering legitimate quetions in the public interest.

We recommend th a t the Senate take note of the discrepancies and irregularities revealed in the course of the Committee's examination of the Civil Aviation Authority.

We consider the plethora of inconsistencies identified in the CAA's handling of the awarding of the TAAATS contract, a serious indictment on their ability to meet their taxpayer funded obligations.

Sub-program 2.2 Australian B roadcasting Corporation

Four Corners Program

The Four Comers program on the Coalition's Fightback document, and the Treasury analysis thereof, was considered by the Committee. Evidence presented by the Managing Director of the ABC, Mr David Hill, revealed that the program had not lived up to the stated objectives of the program "to provide critical analysis of important community issues."

Mr Hill failed to provide any evidence th a t the program had undertaken any critical analysis of the Treasury assault of Fightback package. Instead he referred the Committee to a letter written by the Acting Managing Director of the ABC to the Opposition which inferred th a t rath e r than carrying out such an analysis the program was rushed to air to preserve the exclusive nature of the material which had been leaked to the ABC.

2

182

3

We recommend that the Committee continue to monitor allegations of political bias by the Four Comers program and other programs of the Corporation whether on television or radio.

Sub-urogram 2.4 Australian B roadcasting Tribunal

Political Advertising Ban

The Tribunal's role in enforcing the Government's ban on electronic political advertising was investigated. Evidence presented by the Chairman of the Tribunal, Mr Peter Westerway, confirmed fears th a t the ban could be enforced in an arbitrary and inconsistent fashion.

Problems associated with the broadcast reach of television stations had already led to absurd outcomes in relation to the banning of particular advertisements. The inconsistent treatm ent of referenda was also noted.

Children's Program Committee

The classification of 'P' and 'C' programs by the Tribunal's Children's Program Committee was questioned by the Estimates Committee. In view of the considerable publicity surrounding this issue the lack of preparation of witnesses was disturbing. Familiarity with particular cases was poor and did not assist in the Committee's

deliberations.

The Tribunal was not able to adequately satisfy particular members of the Committee that the new regime of children's program classification would adequately resolve the problems experienced by sections of the industry.

S _ _____

Senator for New South Wales

183

ESTIMATES COMMITTEE D

REPORT TO THE SENATE

April 1992

185

ESTIMATES COMMITTEE D

REPORT T O THE SENATE

Estimates Committee D presents its report to the Senate.

Introduction

1. On 5 March 1992 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 1992 and the Particulars of Certain Proposed Additional Expenditure in respect of the Year Ending on 30 June 1992 in respect of the following portfolios:

• Administrative Services • Immigration, Local Government and Ethnic Affairs . Arts, Sport, the Environment and Territories . Tourism.

2. The Committee has considered these estimates, together with the Program Performance Statements, and has received evidence from the Minister for Administrative Services, Senator the Hon. Nick Bolkus, the Minister for Shipping and Aviation, Senator the Hon. Bob Collins, and officers of the departments and

authorities concerned. Copies of the minutes of proceedings are appended to this report; the Hansard reports of the evidence taken by the Committee are tabled for the information of the Senate in connection with the AppropriationBill (No.3) 1991-92 and Appropriation Bill (No.4) 1991-92 Further written explanations

furnished by departments will be tabled when received, in volumes entitled Additional Information.

Administrative Services portfolio

3. The Committee examined proposed additional expenditure of $19 749 000 appropriated to a number of sub-programs in this portfolio. Among other matters, the Committee heard evidence in relation to the administration and funding of grants-in-aid and the staffing entitlements of former prime ministers. Certain

matters which attracted the concern of the Committee at past hearings, notably the move to trust funds and the operations of Comcar, were not raised in the current hearings, there being no proposed additional expenditure related to those activities.

Immigration, Local Government and Ethnic Affairs Portfolio

4. The Committee examined proposed additional expenditure of $20 248 000. It heard, among other matters, evidence in relation to the cost of maintaining asylum seekers at Port Hedland and in other locations, and of funding of regional employment and economic development programs.

Arts, Sport, the Environment and Territories

5. The Committee examined proposed additional expenditure of $22 000 000. It heard evidence in relation to the administration of agencies and statutory bodies across the portfolio. The Committee sought explanations of departmental costing of new policy proposals. Particular matters questioned by the Committee included: the non-use for over five years of the Mitchell respository of the National Film and Sound Archive; additonal funding requirements of museums experiencing shortfalls in attendance revenues; fuel costs of Antarctic expeditions; and the

involvement of the Australian Institute of Sport in advertising breakfast cereal. In particular, the Committee noted explanations given concerning proposed expenditure on housing and health care facilities on Cocos (Keeling) and Christmas Islands and of plans for tourist development and its management which are currently under consideration.

Tourism

6. The Committee examined the additional estimates for the newly-formed Department of Tourism but did not question the minister or officers on this occasion.

General

7. The matter of the inability of estimates committees to receive confidential information arose on two occasions, involving the terms of the contract of the Director of the Australian Institute of Sport and the right to privacy of athletes who have tested positive to drugs. The Committee noted again that under standing order 26, estimates committees are not empowered to receive in camera evidence.

8. The Committee notes with concern the difference of approach adopted by ministers in attendance at estimates hearings. On this occasion, one refused to accept any questions not directly and obviously relevant to the additional estimates; the other was less rigorous in his approach, accepting instead, or promising to refer on, all questions. The Committee feels strongly that consistency of approach in this matter would be desirable for the benefit of all senators and officials, and urges the Procedure Committee to address this matter.

188

Recommendations

9. The Committee recommends that matters raised specifically in this report in relation to all portfolios, and all questions taken on notice by witnesses at the Committee's hearings and not answered by Monday 27 April 1992, as listed in the Appendix to this report, be subject to further examination by the Senate.

10. The Committee recommends that the Senate approve, without amendment or request, expenditure in accordance with the additional estimates considered by the Committee.

A. Olive Zakharov Chair

189

ESTIMATES COMMITTEE D - QUESTIONS ON NOTICE, ADDITIONAL ESTIMATES 1991-92 A N D UNANSW ERED AT 27 APRIL 1992

Administrative Services Portfolio

R e f Senator Question

D7 r Macdonald Negotiations with canteen operator

Immigration, Local Government and Ethnic Affairs Portfolio

Pre Tumbling Illegal fishermen/refugees NT, WA, Old

- details, costs, contingency plans

D28 r Kemp Breakdown of supplementary costs UN High

Commissioner for Refugees' participation

D29 1 Kemp Breakdown of cost of maintaining boat

people, Port Hedland

D32 1 Kemp Cost of running detention centres

Arts, Sport, the Environment and Territories

D88 1 Baume

D89 r Tambling

D90 1 Tumbling

D90 r Tambling

D90 r Tambling

D94 1 Tambling

D94 r Tambling

Implementation of Taylor review recommendations Children in schools, Cocos & Christmas Is

Persons on electoral roll, Cocos Island Contracts, administrators of Cocos, Christmas Islands Employment status, Christmas Islanders

Christmas Is recipients social security Foreign ownership Christmas Island

Program

1.1

1.5

1.5

2.4

2.4

5.6

6.2- 3

6.2 6.2- 3

6.3 6.3 6.3

Response

Aft ~i~~ PARLIAMENT OF AUSTRALIA· THE SENATE MEB:jr SENATOR MICHAEL BAUME SENATOR FOR NEW SOUTH WALES 28 April 1992 SHADOW MINISTER FOR THE. ARTS, HE.JHTAGE. SPORT ANO YOUTH AFFAIRS Mr John Carter Secretary Estimates Committee "D" Parliament House CANBERRA 2600 Dear Mr Carter I recommend that the following matters relating to the Additional Estimates of Expenditure referred to.1be further examined by the Senate:-Sub-programme 1.3 The Australia Council's own programmes compared to Board programmes Funding of the Ideas for Australia Summit The response to media criticisms of the Australia Council Sub-programme 1.12 Progress of the Australian National Gallery's Cambodian Exhibition and RAAF transport Sub-programme 4.5 The Appeals mechanism for athletes disqualified for drug-taking Consequences of the Vinnicombe litigation Paralympics funding Ministerial attendances at the Olympics Sub-programme 4.5 Reciprocal protocols on drug testing ;Pr~ SENATOR MICHAEL BAUME Shadow Minister for the Arts, Heritage, Sport & Youth Affairs . - . -- _,.._ - 193 - - t. ..1 -- :- :: :- •• - • :- ..

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PARLIAMENT OF AUSTRALIA ■ T H E SENATE

SENATOR ROD KEMP SENATOR FOR VICTORIA

28 April, 1992

Mr John Carter Secretary Estimates Committee D Parliament House Canberra 2600

Dear John,

By way of reservation, I recommend th at the following be subject to further

examination by the Senate:

Administrative Services, Program 3.7

The numbers and cost of ministerial staff and consultants should be considered

further.

Yours Sincerely

ArJ LJLQ ROD KEMP

Senator for Victoria

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194

PARLIAMENT OF AUSTRALIA · T H E S E N A T E

SENATOR BRIAN HARRADINE

MARINE BOARD BUILDING I FRANKLIN WHARF

HOBART 7000

POSTAL ADDRESS:

G PO . BOX 896J HOBART 7001

TELEPHONE: HOBART (002) 34 SI22

FAX: (002) 34 5865

PARLIAMENT HOUSE

CANBERRA A C T 2600

TELEPHONE.

CANBERRA 'C 42j 77 7111

LAUNCESTON '0 0 3 ) 31 1064 BURNIE (0O=, 31 5247

28 April 1992

Mr John Carter Secretary Estimates Committee D The Senate

Parliament House CANBERRA ACT 2600

Dear Mr Carter,

By way of reservation to the Report of Estimates Committee D I recommend that the Senate further consider:

Program 1.8 - H eritage Properties

with regard to funding for the restoration of heritage properties in the Program Performance Statement of the Arts, Sport, the Environment and Territories portfolio.

/

195

PARLIAMENT OF AUSTRALIA · T H E S E N A T E

SENATOR GRANT TAMBLING SE N A TO R FOR THE N O R T H E R N TERRITO RY

S H A D O W MINISTER FOR R E G IO N A L DEVELOPM ENT.

EX TE R N A L TERRITORIES A N D N O R T H E R N AUSTR ALIA

NORTHERN TERRITORY COUNTRY LIBERAL

PARTY

DARWIN OFFICE

3/80 THE ESPLANADE. DARWIN

TELEPHONE (089) 813567

FACSIMILE (089) 813022

POSTAL ADDRESS GPO BOX 4196 DARWIN. NT 0801

AUSTRALIA

CANBERRA OFFICE PARLIAMENT HOUSE

TELEPHONE (06) 277 3436

FACSIMILE (06) 277 3704

D E P U T Y LEAM IN T H E SENATE. N A T IO N A L PAT O F AUSTRAL!"

->

Secretary Estimates Committee D Parliament House

CANBERFIA ACT 2600

Dear Sir

By way of reservation I recommend that the following be the subject of further debate in the Senate:

Art, Sport, Environment & Territories

Program 6.2

Christmas Island - submission to Public Works Committee for major civil works ($132m) on Christmas Island (Hansard 02/04/1992 - page 91-95) >

*

196

ESTIMATES COMMITTEE D HANSARD INDEX

Thursday 2 April 1992

Administrative Services Portfolio

Department o f Administrative Services

Departmental reorganisation details D2

Scope of questioning D2

Program 1 - Property Services

Cafeteria capital equipment upgrade D6

Business services trust redundancies D6

Commonwealth canteens closure costs, negotiations with new operators D7 Lease periods for privately-owned premises D8

Program 3 - Government Services

Oakleigh, Frankston, time over-runs D8

Grants-in-aid criteria D9

Australian Conservation Foundation grant for genetic engineering network DIO Cost of recycled paper D15

Vacant space, Australia House, London D15

Maintenance of visiting ministers' suites at overseas posts D15

Additional staff, New Delhi D15

Beijing Chancery D16

Additional parliamentary secretaries, staff D16, D19

Reclassifications of ministerial staff D16, D20

National Prices Network staff D17

Former prime ministers' staffing, allocation, use D17

Term of re-employment, Mr Keating's staff D19

Redundancy payments, Mr Hawke's staff D21

Program 6 - Australian Electoral Commission

Costs of ad ban administration D22

Work for United Nations peacekeeping activities D23

Electoral Commission's role overseas D24

Pre-election expenditure on printing, equipment D24

Cost of redistributions D25

Industrial ballots and amalgamation costs D26

197

Immigration, Local Government and Ethnic Affairs Portfolio

Program 1 - Migration Sub-program 1.2 - Permanent entry

Onshore resident applications - staffing and funding D27

- total caseload and categories D28

- comparison with previous years D28

Overseas posts, locally engaged staff, social security payments, DFAT fund transfer D28

Independent business skills category, staffing D28

Sub-program 1.5 - Refugees, humanitarian and assistance

United Nations High Commissioner for Refugees role, refugee determination D28 Port Hedland detention of Cambodian nationals - payments, legal advice D28

- cost of detention, numbers detained D29

- purchase and preparation cost of detention centre D29

- escapees, assistance to illegal immigrants D29

- transportation and other costs, DORS staff D30

Villawoood Detention Centre D30

Program 2 - Students, Visitors and Entry

Refugee cases, backlog, costs D30

Visas to spouses, dependants of special-entry Chinese nationals D31 Attorney-General's advice re resident return visas D31

Sub-program 2.4 - Compliance

Deferral of student visa processing fees, costs involved D31

Boat people - cost of detention, processing, repatriation D31

Detention centres - average costs, capacity, departmental plans for D32 Separate costs, Chinese special entry students D32

Program 4 - Corporate Services Sub-program 4.4 - Legal

Refugee casework backlogs and assistance by voluntary agencies D33

Program 6 - Office o f Local Government Sub-program 6.2 - Local Development

Regional employment and local development programs - funding and regional breakdown D34

- generation of new jobs, enterprises D34

198

- review of state distribution, Grants Commission general purpose grants D35 Local government road funding D36

Better Cities program D36

Arts, Sport, the Environment and Territories Portfolio

Eligibility of Dr Tronson for refunds, public lending rights scheme D69

Program 1 - Cultural Development Sub-program 1.2 - Arts

Costing of arts component, Coalition's Fightback package D38

Sub-program 1.3 - Australia Council

National Arts Week grant acquittals D62

Basis for Arts Action funding D62

Media attacks on the Council - rebuttal D63

Council programs versus board programs D64

Seville Expo joint venture with ABC D64

Ideas for Australia seminar funding D64

Advocacy or promotion travel by Council D65

Board's geographic composition, selection criteria D65

Success rate of applications for funding D67

Tax deductible donations with conditions attached D67

Proposal for Australia centre in London D68

Australian cultural centre in Manila D68

Payments on overseas networks, studios overseas D68

Sub-program 1.4 - Film

Film Finance Corporation review, grant moneys TV, film sales to South Africa Australian Film Commission

- film development guidelines - documentaries Use of Film Australia by Commonwealth government departments Public response to Sacred Sex (film) Guidelines on children driving cars in children's films

Sub-program 1.6 - Australian Film, Television and Radio School

Roof problems

Sub-program 1.7 - National Film and Sound Archive

Use of Mitchell repository Supposed mould problem in basement, former Institute of Anatomy building

D39 D40

D41 D41 D42 D43 D47

D43

D43 D44

199

Vinegar syndrome D45

Progress towards statutory authority status D45

Sales tax treatment D46

Nitrate film copying rate, stock at risk D46

Sub-program 1.8 - Cultural Heritage

Participation, festival of folk life, Smithsonian Institute, Washington D48

Sub-program 1.9 - Australian National Mantime Museum

Revenue from public visits compared with forecasts D49

Loan of the yacht Australia 11 D50

Entry charges D50

Multiple-museum entry ticket proposals D50

Sub-program 1.10 - Australian National Gallery

Attendance at the Rubens exhibition D50

Commercial activity associated with exhibitions D51

Cambodian exhibition planning D52

Sub-program 1.12 - National Library o f Australia

Percentage of expenditure on books D53

Usage following library refit D53

Cost, distribution, of National Library News D54

Humphrey McQueen criticisms, library response D54

Program 2 Sub-program 2.2 - Expeditions

Huskies - use in Antarctica, plans for removal D55

Icebird voyage 5 problems D57

Heard Island overwintering party - logistical problems D58

- additional costs D60

Bunker fuel price increase D59

Estimates of cost of besetment D59

Deferral of hydrographic survey off Mawson Station D59

Aurora Australis contract provisions on crew costs D61

Program 3 - Meteorology

Accuracy of weather forecasts D69

Program 4 - Sport and Recreation

2 0 0

Sub-program 4.2 - Facilities

Grants for non-sporting facilities, departmental advice D79

Sub-program 4.4 - Australian Sports Commission

Kellogg product, Sustain - connection with Australian Institute of Sport D70

- advertising by Mr de Castella, Dr Telford, athletes D70

Appeals mechanism for disqualified athletes D76, D79

Australian, international policy on inadvertent drug use D76

Litigation by Mr Vinnicombe - legal aid applications D76, D78

Professional cyclists Pate and Hall steroid use, penalty D77

Review of assistance to elite athletes D77

Review of the Institute's tennis program D77

Decentralised system for AIS sports D78

Funding for disabled athletes, for Paralympics D81

Funding for fishing clinics for the disabled D82

Study of export potential of Australian sport D83

Domestic travel arrangements D83

Penalties for officials involved in irregular drug tests D84

Ministers' attendance at Olympic Games D85

Reciprocal protocols between countries for drug testing E85

Sub-program 4.5 - Australian Sports Drug Agency

IOC reduction of the urine caffeine concentration level D72

Sports Commission research studies on caffeine metabolism D73

Caffeine excretion in athletes D73

Exclusion of competitive horses from testing regime D73

Cadbury's sponsorship of Triathlon Association D74

Caffeine levels in chocolate, Coca-Cola D74

Privacy considerations of athletes who test positive D75

Education of sporting officials D75

Program 5 - Environment

Cameron research into attitudes to the environment D86

Sub-program 5.4 - Nature Conservation

Proposed World Heritage listing, Great Sandy Region, Fraser Island D87

Sub-program 5.6 - Supervising Scientist and the A R R R I

Relocation of Sydney office to Canberra D87

Government response to the Taylor review D88

Water quality, testing, from Ranger mine D88

2 0 1

Program 6 - Territories

Categories of residents on Cocos (Keeling) Islands Basis of rent collection, Cocos Islands Rental rebate policy Contracts for Administrators, Cocos and Christmas Islands

Timetable for phasing in WA codes, practices Christmas Island capital works - hospital, police station Cost benefit of capital works to mine and proposed casino House, land sales, Christmas Island Citizenship, social security status of residents Capital ownership, operation of Christmas Island casino

2 0 2

g g g S S S I S i S

T H E SENATE

ESTIMATES COMMITTEE D

Minutes o f Proceedings

No. 17

Tuesday 31 March 1992

1. MEETING: The Committee met in private session at 1.49pm in the Government Advisors' Lobby. Senator Zakharov took the Chair.

2. ORDER OF BUSINESS: The Committee agreed to consider the additional estimates of the portfolios in the following order: Administrative Services portfolio; Immigration, Local Government and Ethnic Affairs portfolio; Arts, Sport, the Environment and Territories portfolio; and Tourism portfolio.

3. TELEVISING OF COMMITTEE HEARINGS: The Committee resolved to authorise the televising of its public hearings in accordance with the rules contained in the order of the Senate of 23 August 1990.

4. ADJOURNMENT: The Committee adjourned at 1.57pm.

5. ATTENDANCE: Senators Zakharov, Kemp, Loosley, Macdonald and Parer. Apologies were received from Senators Baume and Crichton-Brown.

CONFIRMED:

Olive Zakharov Chair

203

THE SENATE

ESTIMATES COMMITTEE D

Minutes of Proceedings

No. 18

Thursday 2 April 1992

1. MEETING: The Committee met in public session at 1.42pm in Senate Committee Room 2S1. Senator Zakharov took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE FOR 1991­ 92: ADMINISTRATIVE SERVICES PORTFOLIO. The Committee commenced its consideration of the proposed additional expenditure of the Administrative Services portfolio.

In attendance was Senator Bolkus, Minister for Administrative Services accompanied by the following officers:

Department o f Administrative Services

Ms C. Argali, Acting General Manager, Australian Property Group Mr H. Jacka, Executive General Manager, Government Services Mr F. Bergersen, Acting Manager, Financial Management, Australian Estate Management

Mr D. Rome, Acting General Manager, Australian Office for Better Buying Mr K. Erwood, Acting Assistant General Manager, Purchase Australian Branch Mr J. Gavin, Assistant General Manager, Government, Environment and Legal Branch Mr J. Kent, General Manager, Overseas Property Group Mr D. Dahlberg, Assistant General Manager, Overseas Estate Branch, Overseas

Property Group Mr P. O'Neill, Assistant General Manager, Parliamentary and Ministerial Services Mr L Le Fevre, Assistant General Manager, Staff Development Mr G. Williams, General Manager, Group Planning and Finance Group

Operations Mr R. Lansdowne, Assistant General Manager, Group Planning and Finance Group Operations

Australian Electoral Commission

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

204

Mr P. Dacey, Assistant Commissioner, Development and Research Mr T. Willson, Assistant Commissioner, Information and Eduction Ms K. Rehn, Assistant Commissioner, Industrial Elections Ms M. Neilson, Assistant Director, Resources Management

Department of Finance

Ms M. Messner, Chief Finance Officer, Administrative and Commercial Services Branch Mr S. Jones, Finance Officer, Administrative and Commercial Services Branch

ADJOURNMENT: The Committee adjourned at 2pm for a brief private meeting.

RESUMPTION OF PUBLIC HEARING: The public hearing resumed at 2.09pm. The Chair called on the following programs of proposed expenditure for consideration by the Committee:

Program 1: Property Services Program 3: Government Services Program 7: Australian Electoral Commission

The Committee concluded its examination of the proposed expenditure for the Administrative Services portfolio, subject to an undertaking by the Minister and officers to provide additional information to the Committee.

PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE FOR 1991­ 92: IMMIGRATION, LOCAL GOVERNMENT AND ETHNIC AFFAIRS PORTFOLIO. The Committee commenced its consideration of the proposed expenditure of the Immigration, Local Government and Ethnic Affaiors portfolio.

In attendance was Senator Bolkus, Minister for Administrative Services, accompanied by the following officers:

Immigration, Local Government and Ethnic Affairs portfolio

Mr W. Gibbons, Deputy Secretary Mr E. Arthur, Director, DORS Policy Section Mr E. Brookbanks, Assistant Secretary, Overseas Operations Branch Mr L Bugden, Assistant Secretary, Refugees, Asylum and International Branch

Mr D. Gastello, Assistant Secretary, DORS Policy and Review Branch Mr J. Forster, Assistant Secretary, DORS Policy and Review Branch Ms J. Gordon, Assistant Secretary, Residence and Review Branch Mr P. Hughes, Assistant Secretary, Migrant Entry and Citizenship Branch Mr T. Rodgers, Registrar, Immigration Review Tribunal Mr I. Simington, First Assistant Secretary, Refugee and International Division

Ms S. Ingram, Assistant Secretary, Compliance Branch Mr Mr. Sullivan, First Assistant Secretary, Temporary Entry, Compliance and Systems Division

205

Mr D. Page, Assistant Secretary, Settlement Branch Mr D. Storer, First Assistant Secretary, Settlement and Ethnic Affairs Division Mr M. Kennedy, Acting Assistant Secretary, Resource Management Branch Ms P. McCahey, First Assistant Secretary, Corporate Operations Division Mr B. Strangio, Director, Corporate Resources Section Mr S. Garlick, Assistant Secretary, Local Development Branch Mr M. Lynch, First Assistant Secretary, Office of Local Government

Department o f Finance

Mr John Ryan, Chief Finance Officer, Immigration Section

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

Program 1: Migration Program 2: Students, Visitors and Entry Program 4: Corporate Services

The Committee concluded its examination of the proposed expenditure for the Immigration, Local Government and Ethnic Affairs portfolio 1991-92, subject to an undertaking by the Minister and officers of the portfolio to provide additional information to the Committee.

6. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE FOR 1991­ 92: ARTS, SPORT, THE ENVIRONMENT AND TERRITORIES PORTFOLIO. The Committee commenced its consideration of the proposed additional expenditure of the Arts, Sport, the Environment and Territories portfolio.

In attendance was Senator Collins, Minister for Shipping and Aviation accompanied by the following officers:

Department o f the Arts, Sport, the Environment and Territories

Mr T. Blunn, Secretary Mr R. Brent, Assistant Secretary, Film Dr K Daniels, Assistant Secretary, Arts Mr G. Dempster, First Assistant Secretary, Cultural Development and Sport Dr D. McIntyre, Acting Assistant Secretary, Cultural Heritage Mr R. Moncur, Director, Antarctic Dr J. Zillman, Director of Meteorology Mr G. Dempster, First Assistant Secretary, Cultural Development and Sport Mr B. Rowe, Acting Assistant Secretary, Sport and Recreation Ms K. Campbell, Acting Assistant Secretary, Natural Resosurces Management Mr I. Carruthers, Assistant Secretary, Climate Change and Education

206

Mr C. Griffiths, Acting First Assistant Secretary, Environment and Conservation Policy Dr I. McPhail, Executive Director, Environment Protection Agency Mr G. Morvell, Director, Environmental Liaison

Mr R. Pegler, Assistant Secretary, Environmental Planning Mr N. Quinn, First Assistant Secretary, Environmental Planning Dr A. Turner, Assistant Secretary, Nature Conservation Mr D. Anderson, Acting First Assistant Secretary, Corporate Management,

Information and Territories Mr G. Early, Assistant Secretary, Territories Mr A McKinlay, Acting Assistant Secretary, Portfolio Coordinator Mr L Neilson, Assistant Secretary, Corporate Operations

Australia Council

Mr M. Bourke, General Manager Ms D. Temby, Director, Corporate Services

Australia Film Commission

Mr R. Neale, Director, Finance and Systems Ms C. Robinson, Chief Executive Ms A Smith, Manager, Personnel and Services

Australian National Gallery

Ms J. Ford, Financial Manager Mr A Froud, Assistant Director Mrs B. Churcher, Director

National Library of Australia

Mr A Cahill, Asistant Director-General, Corporate Services Mr W. Horton, Director-General

National Science and Technology Centre

Ms C. Bee, Acting Deputy Director

Australian Sports Commission

Mr S. Amaudon, Director, Sports Development and Participation Mr R. De Castella, Director, Australian Institute of Sport Mr J. Ferguson, Executive Director Mr B. Hobson, Director, Corporate Services

207

Australian Sports Drug Agency

Mr S. Haynes, Chief Executive Officer Mrs H. Quiggan, Adviser, Financial Management

The Supervising Scientist and the Alligator Rivers Region Research Institute

Mr D. Cottom, Manager, Corporate Services Mr T. Carton, Manager, Policy Coordination and Information

Australian Heritage Commission

Dr M. Pearson, Acting Deputy Director

Australian National Parks and Wildlife Service

Dr P. Bridgewater, Director Mr J. Crennan, Director, Finance Mr D. Kay, Executive Director, Education and Corporate

National Capital Planning Authority

Mr P. Carmody, Executive Director, Management and Works Mr K. Reveil, Director, Management Services Mr M. Smith, Acting Chief Executive

Department o f Finance

Mr A- Edwards, Senior Finance Officer, Industry Technology and Culture Branch Mr M. McGovern, Senior Finance Officer, Industry Technology and Culture Branch

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

Program 1: Cultural Development Program 2: Antarctic Program 3: Meteorology Program 4: Sport and Recreation Program 5: Environment Program 6: Territories

The Committee concluded its examination of the proposed additional expenditure for the Arts, Sport, the Environment and Territories portfolio, subject to an undertaking by the Minister and officers to provide additional information to the Committee.

7. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE FOR 1991­ 92: TOURISM PORTFOLIO. There being no questions for the Tourism portfolio, the officers were dismissed.

8. ADJOURNMENT: The Committee adjourned at 10.57pm.

9. ATTENDANCE: Senators Zakharov, Baume, Crichton-Brown, Kemp, Loosley, Macdonald, Maguire and Parer. Senators Boswell and Tambling also attended.

CONFIRMED:

A Olive Zakharov Chair

209

THE SENATE

ESTIMATES COMMITTEE D

Minutes of Proceedings

No. 19

Thursday 2 April 1992

1. MEETING: The Committee met in private session at 2pm in the office of Senate Committee Room 2S1. Senator Zakharov took the chair.

2. SCOPE OF QUESTIONING AT ADDITIONAL ESTIMATES: The Committee sought the advice of the Deputy Clerk on the scope of questioning at additional estimates hearings.

3. ADJOURNMENT: The Committee adjourned at 2.09pm and resumed its public hearing.

4. ATTENDANCE: Senators Zakharov, Kemp, Loosley, Macdonald, Maguire and Parer.

CONFIRMED:

A. Olive Zakharov Chair

2 1 0

T H E SENATE

ESTIMATES COMMITTEE D

Minutes of Proceedings

No. 20

Tuesday 28 April 1992

1. MEETING: The Committee met in deliberative session at 6.31pm in the Government Advisors' Lobby. Senator Zakharov took the Chair.

2. REPORT: The draft report of the Committee, previously circulated to members, was adopted as the report of the Committee, subject to the addition of an additional general paragraph on the scope of questioning.

3. MINUTES: The Committee confirmed the minutes of meetings nos. 17-19, held on 31 March, 2 April and 2 April respectively.

4. ADJOURNMENT: The Committee adjourned at 6.38pm.

5. ATTENDANCE: Senators Zakharov, Baume, Kemp, Loosley, Macdonald, Maguire and Parer.

CERTIFIED CORRECT:

ft-

A. Olive Zakharov Chair

2 1 1

AUSTRALIAN SENATE

ESTIMATES COMMITTEE E

REPORT TO THE SENATE

M A Y 1992

ESTIMATES COMMITTEE Έ'

REPORT TO THE SENATE

1. Estimates Committee Έ' presents its report to the Senate.

INTRODUCTION

2. On 5 March 1992, the Senate referred to the Committee the Particulars of

Proposed Additional Expenditure for 1991-92 in relation to the following departments:

- Attorney-General's

- Veterans' Affairs

- Health, Housing and Community Services

On 26 March 1992, the Senate also referred to the Committee the Particulars of

Proposed Further Additional Expenditure for 1991-92 in relation to the Department of

Health, Housing and Community Services.

3. These proposed additional expenditures were considered by the Committee, which

took into account the Program Performance Statements provided by each department

and the information obtained through its hearings on 2, 3 and 29-30 April 1992. The

Committee has received evidence from the Minister for Justice and Consumer Affairs,

Senator the Hon. Michael Tate and the officers of the departments and authorities

concerned.

4. The Committee tables for the information of the Senate copies of the Minutes of

Proceedings, Hansard Transcripts of Evidence of Committee proceedings and a table of

contents to the Hansards. The answers taken on notice at the Committee's hearings will

be tabled in the Senate under separate cover in volumes entitled "Additional Information

Provided to Estimates Committee E's Examination of Additional Expenditure for 1991-

215

92". Documents not suitable for inclusion in the Additional Information which were

furnished as part of answers have been listed in the Additional Information volumes,

tabled separately and are available for viewing on request.

5. The Committee draws the attention of the Senate to the following matters:

ATTORNEY-GENERAL’S DEPARTMENT

Payment by the Commonwealth for copying o f copyright material

6. Under Section 183 of the Copyright Act, the Commonwealth has an obligation to

make payments for copying of copyright material by it or its agencies. Rates for payment

have been claimed by the Copyright Agency Ltd (CAL), which has lodged a number of

accounts with several Commonwealth Departments. The Department advised the

Committee that the first invoices for payment were lodged in October 1991.

7. The time taken to complete these negotiations is apparently a matter of concern

to CAL, which advised of its concerns to all members of the Committee prior to the

hearings. Copies of correspondence received from CAL are incorporated in the

Additional Information volumes. CAL argues it has been attempting to negotiate terms

with the Commonwealth since 1988.

8. However, rates for payments have not yet been agreed by the parties. The

Attorney-General's Department has been given the authority to negotiate with CAL by

most departments. The Department advised that it has determined what it considers to

be a reasonable offer and sought the concurrence of client departments with this offer

in March 1992, with the intention of making a formal offer to CAL before May 1992. 9

9. The Committee draws this dispute to the attention of the Senate.

LEAN Database

10. The Attorney-General's Department sought $2.957m for the Law Enforcement

Access Network (LEAN) database. This database will bring together what departmental

representatives emphasised are publically available land ownership and company records

throughout Australia, in a form which will enable relevant investigations to be

undertaken. Ultimately some 10,500 terminals will be connected to the database.

11. While the Attorney-General's Department does not propose to combine LEAN

with other databases, users will be able to extract information from LEAN and combine

it with their own databases. The Australian Taxation Office is expected to be the major

user of the facility. The departmental representative stated that the major use the

Taxation Office foresees is the ability to match information on the sales of property with

returns that taxpayers have made about capital gains tax.

12. The Minister for Justice and Consumer Affairs, Senator the Hon. Michael Tate,

informed the Committee that there is no legislation required to go into the Parliament

to seek approval for this initiative. Consequently, there has not been the same level of

parliamentary debate generated as there was in relation to the Australia Card proposal.

13. The Minister informed the Committee that the Privacy Commissioner had been

involved in the development of this proposal and has devised some of the safeguards and

procedures.

14. Nevertheless, the Committee notes that the Minister agreed that the proposal

"needs wider discussion in order to dispel some of the fears and unfounded misgivings

which people have had aroused".1

P. E32.

217

Equal Employment Opportunity Programs

15. The Committee sought information from officers of the Attorney-General's

Department during these and previous estimates hearings about the number of women

occupying senior executive positions within the Department, noting an apparent relative

scarcity of women employed in senior management positions compared with the much

better representation in, for example, the Department of Health, Housing and

Community Services.

16. The Committee was informed that the highest level reached by a woman in the

Department was division head, and that the number of women at this level had remained

unchanged since the last Estimates hearing.

17. The Committee notes the Department's affirmation of an increasing number of

women now occupying SES positions in the Department. The Committee considers it

appropriate that the Attorney-General's Department continue to pursue its EEO policies

at senior levels. The Committee will continue to take an interest in this matter.

DEPARTMENT OF VETERANS' AFFAIRS

Review o f Pensions Determining System

18. The Committee notes that the pensions determining system was last significantly

reviewed seven years ago. Since that time there has been an almost continuous decline

in the number of claims - a process that the Department accepts is likely to continue.

19. In view of this decline, and the fact that World War II veterans - the largest

group of potential and actual clients of the determining system - are now reaching

retirement age, the Committee considers that proposals for the review of the determining

system might now be actively contemplated.

218

DEPARTMENT OF HEALTH, HOUSING A N D COMMUNITY SERVICES

Health insurance funds

20. Under existing legislation, health insurance funds are required in their annual

reports to provide information as to their reserves. There is no requirement that they

report any applications made to the Minister for an exemption from maintaining the

minimum statutory reserve.

21. In the interests of ensuring that fund members and/or shareholders receive

adequate information, the Committee considers that the matter be further examined.

Availability of Medicare benefits to travellers

22. Medicare benefits are not generally payable for medical services provided outside

Australia unless the services are provided in a country with which Australia has a

reciprocal health care agreement. Medicare benefits are also not payable where

Australians leave Australia, and while, for example, they are on board a ship which

undertakes an international cruise.

23. Material in relation to overseas travel provided by the Department of Foreign

Affairs and Trade refers to the first situation as noted above, but does not make clear

that entitlements are lost while travelling between countries.

24. In view of some recent case histories, the Committee considers that information

about the entitlement to Medicare benefits of Australians travelling abroad should be set

out in the documents provided to them before their departure.

25. There is also considerable doubt as to the availability of Medicare benefits to

Australians travelling between destinations within Australia but outside the 12-mile limit.

For example, the Department states that it has been advised that such benefits are lost

while crossing Bass Strait.

219

26. The Committee considers that the ambit of the legislation should be clarified and,

if necessary, the legislation be amended to ensure that Medicare benefits are available

in these circumstances.

Safe sex pamphlets

27. Information pamphlets published by the Department of Health, Housing and

Community Services providing information on practices intended to reduce the likelihood

of infection with sexually transmitted diseases, in particular AIDS, emphasise the use of

condoms. A reasonable interpretation of the message conveyed is that if a condom is

used, transmission will not occur. This is misleading as the use of condoms does not

guarantee safety.

28. There is no doubt that condom use by high risk groups will dramatically reduce

the risk of infection. However the Committee considers the Department should make it

clear in its literature that the danger is reduced, not eliminated, so that persons engaging

in high risk behaviour are not lulled into a false sense of security.

29. The Committee also considers that abstinence from sexual activity as an option

for young people is not sufficiently advanced in departmental literature, contrasting with

other publications such as the Girlfriend: safe sex guide produced and distributed by

Girlfriend magazine.

30. The Committee notes that the Minister for Justice and Consumer Affairs, Senator

the Hon. Michael Tate, indicated that he shares some of these concerns and has

undertaken to ensure that they are taken into account by Commonwealth authorities in

future.

Tasmanian AIDS information kit

31. The Committee was informed that the Tasmanian Minister for Education had

rejected an AIDS information kit allegedly recommended and approved by the

Department. This alleged endorsement was contained in a letter sent to all Principals of

Tasmanian government schools. Departmental representatives stated that no such

recommendation or approval had taken place, nor was the information federally funded.

The Department had written to the Tasmanian Department of Education disclaiming

endorsement or approval.

32. The Committee notes the Minister for Justice, Senator the Hon. Michael Tate,

considered there is potential for this incorrect information to be used as propaganda

against the Department and the Government. The Committee suggests the Department

might write to all Tasmanian Government school principals advising them of the true

situation.

Delays in providing answers to questions placed on notice

33. Considerable delays were experienced by Committee members in obtaining

answers to questions taken on notice during the first public hearings held on 2 and

3 April.

34. Undertakings to provide information on the Monday following the first hearing

were not met until the week before the second hearing, three weeks later.

35. The Committee realises that the provision of additional information may take

some time when information is not readily to hand and also appreciates the considerable

conflicting demands on officers' time imposed by other tasks. However it is difficult to

understand why requests for pamphlets and existing departmental reports cannot be met

relatively quickly. Where undertakings to provide information quickly are given and it

subsequently proves difficult for this to be achieved, the Committee suggests officials

should advise of this situation as soon as possible.

GENERAL MATTERS

Provision of information to Committee members

36. The Committee notes that a considerable amount of time at estimates hearings

is spent by members eliciting basic factual information about new programs or new

aspects of existing programs not Covered in the relevant Departmental Annual Report.

37. Members would be able to more fully inform themselves, and estimates hearings

would take less time, if Departments were to provide this information before the hearings

commence.

38. It would no doubt help the departments were Senators to give prior notice of the

information they were seeking, at least in general terms.

RECOMMENDATIONS

39. Estimates Committee Έ' recommends that:

- all of the matters of interest raised in this report in relation to each of the

departments under examination be further examined by the Senate.

- all questions taken on notice before and during the Committee's hearings,

as listed in Appendix 1, and not answered before the tabling of this report,

also be subject to further examination by the Senate.

- the Senate approve, without amendment or request for amendment,

additional expenditure in accordance with the estimates referred to the

Committee.

222

ACKNOWLEDGMENTS

40. The Committee is grateful for the assistance given by the Minister for Justice and

Consumer Affairs, Senator the Hon. Michael Tate and officers of the departments

examined.

B.Cooney

Chairman

223

ESTIMATES COMMITTEE E

RESERVATIONS

ESTIMATES COMMITTEE E

RESERVATION BY SENATOR BRONW YN BISHOP

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

HEALTH. HOUSING AND COMMUNITY SERVICES POR TFOLIO

PROGRAM 6.1 HEALTH INSURANCE COMMISSION

MEDIBANK PRIVATE

Rarely, is Medibank Private called before Senate Estimates Committees for review. Despite the Government's attitude on such bodies this is an unsatisfactory situation as Medibank Private ultimately remains responsible to the taxpayer. I recommend that Medibank Private continue to appear before Estimates Committees as a matter of

course. ~

Financial Performance

The cost apportionment through the use of shared facilities between Medibank Private and the Health Insurance Commission was considered. It became evident that the Annual Report was of little assistance in determining whether any indirect subsidy is paid to Medibank Private. A comparison of management expenses for Medibank Private and

the private health funds would, on the face of it, disclose that some subsidisation occurs.

The poor financial performance of Medibank Private across the states and in Victoria relative to other states was investigated. Answers given as to the reasons for the poor performance were less than convincing.

Transfer of Reserves

Of considerable concern was the way in which reserves have been transferred between the States and to Victoria in particular. Evidence showed that the transfer of funds from New South Wales to Victoria became essential to keep the Victorian arm above the statutory minimum. In spite of this, however, the reporting of the level and transfer of funds within Medibank Private was unsatisfactory.

It is also open to question as to whether Medibank Private is treated on the same footing as the private health funds in the requirements as to the transfer of funds and the disclosure of such transfers.

227

Merger with Health Australia

The circumstances surrounding the merger of Health Australia with Medibank Private was considered. It was confirmed that there were rumours in the industry that none of the private sector funds could make a legitimate commercial decision to take over Health Australia.

Officers appearing before the Committee were not convincing in establishing that the decision to merge was taken solely on commercial grounds rather than for public policy considerations surrounding the impact of the collapse of a private health fund. Nor was it satisfactorily disclosed whether the deal struck between Health Australia and Medibank Private Was in the best interest and on the best terms for the members of Medibank Private.

Responses given that information requested was commercial in confidence were doubtful. In particular, witnesses before the Committee refused to supply the Committee with figures on how many people who were insured with Health Australia did not choose to reinsure with Medibank Private. The provision of this information would have assisted in establishing whether an important reason for the poor performance of Medibank private in Victoria was the takeover of Health Australia.

Of paramount concern is the inference to be drawn from the available evidence that the merger could not have occurred but for the transfer of reserves within Medibank Private.

SENATOR BRONWYN BISHOP Senator for New South Wales

Mb

PARLIAMENT OF AUSTRALIA · T H E S E N A T E

SENATOR JOCELYN NEWMAN

SHADOW MINISTER FOR VETERANS' AFFAIRS SHADOW MINISTER FOR DEFENCE SCIENCE AND PERSONNEL SHADOW MINISTER ASSISTING THE LEADER OF THE OPPOSITION ON THE STATUS O F W OMEN

jn:sw 5th May 1992

Mr P Hallahan Secretary Estimates Committee E Parliament House

Dear Mr Hallahan,

By way of reservation, I recommend that the following matters arising from the consideration of the Additional Estimates for the Department of Veterans' Affairs be the subject of further debate in the Senate:

* Program 1 - Determining system; * Program 2 - Integration; * Program 3 - NSW Garden of Remembrance; and * Program 4 - Military Compensation Scheme.

Yours sincerely,

I

J JOCELYN NEWMAN

■"ELEPMONE ' I "

PARLIAMENT OF AUSTRALIA · T H E S E N A T E

SENATOR KAY PATTERSON

SENATO R FOR VICTORIA

4 May 1992

Mr P Hallahan Secretary Estimates Committee E Parliament House Canberra ACT 2600

Dear Mr Hallahan

By way of reservation I recommend that the following m atter be the subject of further examination by the Senate.

Program 6.1 Financial Support to Individuals

Yours sincerely

Π________

Senator for Victoria

KP/nr

230

PARLIAMENT OF AUSTRALIA ■ T H E S E N A T E

SENATOR SHIRLEY WALTERS SENATOR FO R TASMANIA

PARLIAMENT HOUSE CANBERRA. ACT 2 6 0 0

TEL (06) 2 7 7 3680 FAX: (06) 2 7 7 3679

A FTER H O U R S TEL: (0 0 2 ) 2 5 3 2 8 4 FAX: ( 0 0 2 ) 2 5 2291

MARINE BOARD BUILDINl 1 FRANKLIN WHARI G P O BOX 760H HOBART 700

TEL: (002) 3 4 140-

FAX: (002) 31 090

4 May 1992

The Secretary Estimates Committee E Parliament House CANBERRA ACT 2600

Dear Sir,

By way of reservation I recommend that the following m atters relative to the Additional Estimates for the Department of Health, Housing and Community Services be further considered by the Senate.

Sub-program 1.3; Health Promotion & Disease Prevention, particularly the programs for the prevention of the

transmission of HIV/AIDS among teenagers;

Sub-program 6.1; Health Insurance Commission, particularly the arrangem ent between Medibank Private and the Public Service Union for the provision of private medical insurance.

Yours sincerely,

Shirley Walters, Senator for Tasmania.

231

■

ESTIMATES COMMITTEE E

MINUTES OF MEETINGS

FO R

Monday, 30 March 1992 Thursday, 2 April 1992 Friday, 3 April 1992 W ednesday/Thursday, 29,30 April 1992

Tuesday, 5 May 1992

233

ESTIMATES COMMITTEE Έ'

Minutes o f Meeting No. 36/17 Monday, 30 March 1992

1. PRIVATE MEETING

The Committee met at 11.00 am in Senate Committee Room 1S6. The Chairman, Senator Cooney, took the Chair.

Z ATTENDANCE OF MED IBANK PRIVATE AT ESTIMATES HEARINGS

The Committee discussed requests by Senators Walters and Bishop that Officers from Medibank Private be requested to attend the Additional Estimates Hearings.

Correspondence written by the Hon. Kim Beazley, M.P., Minister for Employment, Education and Training, and the Clerk Assistant Committees, Mr Peter O'Keeffe concerning the scope of questioning of Estimates Committees was also considered.

It was agreed that the Chairman, Senator Cooney, should speak to the Minister for Justice and Consumer Affairs, Senator the Hon. Michael Tate, concerning the request by Senators Bishop and Walters that Medibank Private attend.

3. ADJOURNMENT

The Committee adjourned at 11.35 am.

4. ATTENDANCE

Senators Cooney (Chairman), Giles, Herron, Patterson, Vanstone, Walters and West.

Senator Bishop also attended.

Confirmed

235

ESTIMATES COMMITTEE Έ'

Minutes o f Meeting No. 36/18 Thursday, 2 April 1992

1. PUBLIC MEETING

The Committee met at 1.47 pm in Senate Committee Room 2S3. The Chairman, Senator Cooney took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1991-1992 -ATTORNEY-GENERALS DEPARTMENT

In attendance: Senator the Hon. Michael Tate, Minister for Justice and Consumer Affairs, accompanied by the following officers:

Attorney-General's Department

Mrs S. Skehill Mr N. Reaburn Mr J. Broome

Mr T. Gallagher

Mr O. Winder

Mr P. Roberts

Mr D. Boucher

Mr M. Fish

Mr B. McMillan

Mr P. Lowe

Deputy Secretary Deputy Secretary First Assistant Secretary Civil Law Division General Manager Resources First Assistant Secretary

Office of Legal Aid and Family Services Assistant Secretary Fraud Policy and Prevention Branch General Manager Practice Development Acting Manager Finance and Property Branch

General manager Practice Management Assistant Secretary Secretariat Branch

Insolvency and Trustee Service, Australia

Office of Parliamentary Counsel

Mr S. Reynolds Second Parliamentary Counsel (A/g) Finance Ms C. Kosmos Acting Administration Officer

Australian Securities Commission

Mr W. Robinson Statutory Member AJC Mr I. Cameron Director

Resources Branch

Trade Practices Commission

Mr H. Spier First Assistant Commissioner

Enforcement & Legal Division

Ms G. Barnwell Assistant Commissioner Corporate Planning & Resources Branch

Human Rights and Equal Opportunity Commission

Mr W. Chapman Acting Secretary Mr N. Vo-Van Acting Assistant Secretary

Family Court o f Australia

Mr L. Glare Chief Executive Officer

Mr I. Loughnan Principal Registrar Mr B. Frankland Principal Director of Administration

Supreme Court of the ACT

Mr A. Towill Registrar

Administrative Appeals Tribunal

Mr D. Shulz Registrar

Australian Federal Police

Mr A. Whiddett Acting Deputy Commissioner (Administration) Mr R. Mills Assistant Secretary

Resources & Services Division

Mr G. Thompson Executive Officer, Estimates

Australian Institute of Criminology

Mr D. Biles Deputy Director

Mr J. Millar Executive Officer

Cash Transaction Reports Agency

Mr G. Pinner Acting Director

Ms J. Stubbing Office Manager

237

Commonwealth Director o f Public Prosecutions

Mr P. Coghlan Associate Director

Mr T. McKnight Senior Executive, Administration

The Department of Finance was represented by Mr M. Taylor and Mr J. Ireson.

The Committee examined the proposed additional expenditure by program as set out in the Program Performance Statements 1991-92, Attorney-General's Department and matters relating to the appropriation of additional funds.

The following document was tabled:

Questions placed on notice by Senator Hill

The Committee concluded its consideration of the proposed additional expenditure for the Attorney-General's Department, subject to the undertakings to provide additional written information to the Committee.

3. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1991-1992 - DEPARTMENT OF VETERANS' AFFAIRS

In attendance: Senator the Hon. Michael Tate, Minister for Justice and Consumer Affairs, accompanied by the following officers:

Department of Veterans' Affairs

Mr K. Lyon

Mr G. O'Connor

Mr R. Somes

Mr R. Bear

Mr A. Parker

Mr P. Hawker

Mr D. Mackrell

Ms K. Grimsley

Mr J. Dalton

Ms F. Barr

Deputy President Repatriation Commission National Program Director Corporate Services Principal Adviser Corporate Services Program Assistant Secretary Budget Branch Acting Assistant Secretary

Information Technology Facilities Branch National Program Director Benefits Assistant Secretary Benefits Planning and Management Branch Assistant Secretary

Income Support Branch Assistant Secretary Compensation and Review Branch Assistant Secretary Defence Service Homes

238

Mr T. Ashford National Program Director

Health

Mr M. Goldstein Deputy National Program Director Health Dr G. Killer Principal Medical Officer

Mr W. Maxwell Assistant Secretary

Hospital Services Branch

Mr M. Klippan Acting Assistant Secretary Community-Based Health Care Branch

Mr B. Manning Assistant Secretary

Management and Services Branch

Ms M. Kidd Director

Community Health Expenditure Estimates Project

Mr C. Rigby Principal Director of Counselling

Vietnam Veterans' Counselling Service

Mr A Edgar Assistant Secretary

Hospital Integration

Mr F. Woodhouse Principal Registrar Veterans' Review Board

Mr A Heggen Director

Office of Australian War Graves

The Department of Finance was represented by Mr P. Potterton.

The Committee examined the proposed additional expenditure by program as set out in the Program Performance Statements 1991-1992, Department of Veterans' Affairs.

The Committee suspended its consideration of the proposed additional expenditure for the Department of Veterans' Affairs from 6.47 pm to 8.15 pm on 2 April 1992.

The following documents were tabled:

. Question on notice from Senator Newman

. Briefing on additional estimates requested for hospital integration

. Answer to Senator Newman's questions on Australian War Memorial

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

239

4. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1991-1992 -DEPARTM ENT OF HEALTH, HOUSING A N D COMMUNITY SERVICES

In attendance: Senator the Hon. Michael Tate, Minister for Justice and Consumer Affairs, accompanied by the following officers:

Department o f Health, Housing and Community Services

Mr M. Roche Deputy Secretary

Dr T. Adams Mr B. Wight

Chief Medical Adviser First Assistant Secretary Children's Services Division

Mr M. Johnson Assistant Secretary

Children's Services Strategic Planning Branch

Ms M. Murnane First Assistant Secretary Aged and Community Care Division

Mr I. McNeil First Assistant Secretary

Health Care Access Division

Mr B. Candler Assistant Secretary

Health Services Branch

Ms D. Ariotti Assistant Secretary

Hospitals Branch

Ms J. Lipscombe Assistant Secretary General Practice Branch

Mr P. Reece First Assistant Secretary

Housing and Urban Development Division

Mr P. Bert General Manager

National Acoustics Laboratory, Hearing Services

Dr J. Loy First Assistant Secretary

Health Advancement Division

Mr M. Scott Assistant Secretary

AIDS/Communicable Diseases Branch

Mr T. Kingdon Assistant Secretary

Drugs of Dependence Branch

Ms E. Furler Assistant Secretary

Mr B. Corcoran

Health Promotion and Development Branch First Assistant Secretary, Disability Programs Division

Mr W. Butler Operations Manager

Hearing Services

Mr B. Macdonald Assistant Secretary Rehabilitation Branch

Ms J. Thomas Assistant Secretary

Disability Workforce Participation

Mr P. Pflaum Dr A. Proudfoot Ms M. Ford

Therapeutic Goods Administration Therapeutic Goods Administration First Assistant Secretary

Corporate Services Division

Mr N. Mersiades

Mr B. Scammell

Dr J. Harmer

Mr J. Whalan

Principal Adviser Budget Management Branch Director Budgets Section, Budget Management Branch

First Assistant Secretary Policy Development Division Assistant Secretary Policy Review and Development Branch

Health Insurance Commission

Mr M. Murray Acting General Manager

Jackie Wood Acting Assistant General Manager

Australian Institute of Health

Dr L. Smith Director

The Department of Finance was represented by Ms M. McDonald and Mr J. Angley.

The Committee examined the proposed additional expenditure by program as set out in the Program Performance Statements 1991-92, Department of Health, Housing and Community Services.

The following documents were tabled:

Questions on notice from Senator Alston

The Committee suspended its consideration of the proposed additional expenditure for the Department of Health, Housing and Community Services.

5. ADJOURNM ENT

The Committee adjourned at 11.07 pm on Thursday 2 April 1992 until 9.00 am on Friday 3 April 1992.

6. ATTENDANCE

Senators Cooney (Chairman), Calvert, Giles, Herron, Hill, Newman, Patterson, Vanstone, Walters and West.

Also in attendance were Senators Alston, Boswell, Colston, Harradine and Tambling.

Confirmed

241

ESTIMATES COMMITTEE Έ'

Minutes o f Meeting No. 36/19 Friday, 3 April 1992

1. PUBLIC MEETING

The Committee met at 9.04 am in Senate Committee Room 2S3. The Chairman, Senator Cooney took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1991 - 1992 - DEPARTMENT OF HEALTH, HOUSING AND COMMUNITY SERVICES

In attendance: Senator the Hon. Michael Tate, Minister for Justice and Consumer Affairs, accompanied by the following officers:

Department of Health, Housing and Community Services

Mr M. Roche Dr T. Adams Mr B. Wight

Mr M. Johnson

Mr M. Mumane

Mr I. McNeil

Mr B. Candler

Ms D. Ariotti

Ms J. Lipscombe

Mr P. Reece

Dr J. Loy

Ms M. Scott

Mr T. Kingdon

Ms E. Purler

Mr B. Corcoran

Deputy Secretary Chief Medical Adviser First Assistant Secretary Children's Services Division Assistant Secretary Children's Services Strategic Planning Branch First Assistant Secretary Aged and Community Care Division First Assistant Secretary Health Care Access Division Assistant Secretary Health Services Branch Assistant Secretary Hospitals Branch Assistant Secretary General Practice Branch First Assistant Secretary Housing and Urban Development Division First Assistant Secretary Health Advancement Division Assistant Secretary AIDS/Communicable Diseases Branch Assistant Secretary Drugs of Dependence Branch Assistant Secretary Health Promotion and Development Branch First Assistant Secretary, Disability Programs Division

242

Mr W. Taylor

Mr W. Butler

Mr B. Macdonald

Ms J. Thomas

Mr P. Pflaum Dr A. Proudfoot Ms M. Ford

Mr N. Mersiades

Mr B. Scammell

Dr J. Harmer

Mr J. Whalan

Executive Manager National Food Authority Operations Manager Hearing Services

Assistant Secretary Rehabilitation Branch Assistant Secretary Disability Workforce Participation

Therapeutic Goods Administration Therapeutic Goods Administration First Assistant Secretary Corporate Services Division

Principal Adviser Budget Management Branch Director Budgets Section, Budget Management Branch

First Assistant Secretary Policy Development Division Assistant Secretary Policy Review and Development Branch

Health Insurance Commission

Mr M. Murray Acting General Manager

Ms J. Wood Acting Assistant General Manager

Australian Institute of Health

Dr L. Smith Director

The Department of Finance was represented by Mr J. Angley and Ms M. McDonald.

The Committee examined the proposed additioanl expenditure by program as set out in the Program Performance Statements 1991-92, Department of Health, Housing and Community Services.

The following documents were tabled:

. Questions on notice by Senator Herron

. Guidelines for Demonstration Practice Grants

. PSU Hospital Options Brochure

. GP Forward Estimates of Practice Grants

. AGB Australia Final Data Tables and Report: Co-payment II Research

243

Two volumes entitled Feasibility Research into the Control and Availability o f Opiates

The Committee suspended its consideration of the proposed additional expenditure for the Department of Health, Housing and Community Services.

3. PRIVATE MEETING

The Committee met at 12.32 pm to consider the timetable for the remaining public hearings. The Committee agreed that another public hearing be scheduled for Wednesday 29 April 1992 commencing at 8.00 pm. The meeting was adjourned at 12.35 pm.

4. PUBLIC H EARING

The Committee recommenced the examination of the proposed additional expenditure by program of the Department of Health, Housing and Community Services.

5. ADJOURNM ENT

The Committee adjourned at 3.45 pm on Friday 3 April 1992 until 8.00 pm on Wednesday, 29 April 1992.

6. ATTENDANCE

Senators Cooney (Chairman), Giles, Herron, Patterson, Walters and West.

Senator Bishop also attended.

Confirmed

B. Coone; CHAIRMAN

ESTIMATES COMMITTEE Έ'

Minutes o f Meeting No. 36/20 Wednesday, 29 April - Thursday, 30 April 1992

1. PUBLIC MEETING

The Committee met at 8.06 pm in Senate Committee Room 1R1. The Chairman, Senator Cooney, took the Chair.

2. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1991 - 1992 - DEPARTMENT OF HEALTH, HOUSING A N D COMMUNITY SERVICES

In attendance: Senator the Hon. Michael Tate, Minister for Justice and Consumer Affairs, accompanied by the following officers:

Department o f Health, Housing and Community Services

Mr M. Roche Mr B. Wight

Mr I. McNeil

Ms D. Ariotti

Ms J. Lipscombe

Mr W. Turk

Dr J. Primrose Dr A. Stevens

Mr B. Candler

Dr L. Stedman

Mr P. Reece

Dr J. Loy

Ms J. Blazow

Mr R. Morris

Ms M. Scott

Mr T. Kingdon

Deputy Secretary First Assistant Secretary Children's Services Division First Assistant Secretary

Health Care Access Division Assistant Secretary Hospitals Branch Assistant Secretary

General Practice Branch Manager Pharmaceutical Benefits Branch

Acting Chief Medical Officer Acting Principal Adviser Pharmaceutical Benefits Branch Assistant Secretary

Health Services Branch Director, CARG and Special Projects Evaluation Section First Assistant Secretary Housing and Urban Development Division First Assistant Secretary

Health Advancement Division Assistant Secretary Health Care Evaluation and Development Branch Assistant Secretary

Accommodation Assistance Branch Assistant Secretary AIDS/Communicable Diseases Branch Assistant Secretary'

Drugs of Dependence Branch

245

Ms E. Purler Assistant Secretary

Health Promotion and Development Branch

Ms M. Ford First Assistant Secretary

Corporate Services Division

Mr N. Mersiades Principal Adviser Budget Management Branch

Mr B. Scammell Director

Budgets Section, Budget Management Branch

Dr J. Harmer First Assistant Secretary

Policy Development Division

Mr J. Whalan Assistant Secretary

Policy Review and Development Branch

Mr I. Wingett Assistant Secretary

Program Support and Development

Health Insurance Commission

Mr M. Murray Acting General Manager

Mr K. Hazell Assistant General Manager

Health Benefits Division

Mr M. Whelan Manager

Accounts Branch

Dr J. Nearhos Medical Director

Professional Review Division

The Department of Finance was represented by John Angley.

The Committee resumed its examination of the proposed additional expenditure by program as set out in the Program Performance Statements 1991-92, Department of Health, Housing and Community Services.

The following documents were tabled:

. Budget estimates relating to the Co-payment

. Letter from the Australian Journalists Association (relating to the additional Estimates for the Attorney-General's Department).

The Committee concluded its examination of the proposed additional expenditure for the Department of Health, Housing and Community Services, subject to the undertakings to provide additional written information to the Committee.

3. ADJOURNMENT

The Committee adjourned at 12.06 am on Thursday 30 April 1992.

246

4. ATTENDANCE

Senators Cooney (Chairman), Giles, Herron, Patterson, Walters and West. Senators Colston and Harradine also attended.

Confirmed

B. Cooney CHAIRMAN

247

ESTIMATES COMMITTEE Έ'

Minutes of Meeting No. 36/21 Tuesday, 5 May 1992

1. PRIVATE MEETING

The Committee met at 1.52pm in the Government Advisers' Area. The Chairman, Senator Cooney, took the Chair.

2. CONSIDERATION OF DRAFT REPORT

The Committee considered the Chairman's draft report. The report was agreed to.

3. MINUTES

The Committee's Minutes of Proceedings for 30 March, 2,3 and 29-30 April were confirmed.

4. ADJOURNMENT

The Committee adjourned at 1.55pm.

5. ATTENDANCE

Senators Cooney (Chairman), Giles, Herron, Newman, Patterson, Walters and West.

Certified Correct

B. Cooney CHAIRMAN

ESTIMATES COMMITTEE E

TABLE OF CONTENTS

FOR

HANSARD OF HEARINGS

Monday, 30 M arch 1992 Thursday, 2 April 1992 Friday, 3 April 1992 Wednesday/Thursday, 29,30 April 1992

249

ATTORNEY-GENERAL’S DEPARTMENT

Page

Program 1 - Legal Services to the Commonwealth

Copyright - Australian Journalists' Association, relationship with Copyright Agency Ltd (CAL) 4,6

- CAL negotiations with Commonwealth 3-7

- copying by Commonwealth 3

- Copyright Act s 183 3

- cost to Commonwealth 3,4,6

- electronic reproduction 5,6

- ownership of 5

- payment to individual journalists 6

Program 2 - Business and Consumer Affairs

Insolvency and Trustee Service - additional staff 7

- Bankruptcy computer system 8

- computer connections 8

- information and education campaign 7,8

- revenue prospects 8

Australian Securities Commission - Bond Corp investigation 10-12

- charges register, defects in records 8,9

- enforcement, staff numbers 10

- international lotto fund inquiry 11,12

- leaking of Bond report 12

- major investigations, status and cost 13,14

- staff numbers 10

- staff qualifications 9

Trade Practices Commission - consultants 14

- Cooney Committee Report, government response 15

- express freight investigation 14

- Section 52A, extension to small business 15

Federal Bureau of Consumer Affairs - incorporation of questions from Senator Hill 87

251

Program 3 - Community Affairs

Human Rights and Equal Opportunity Commission - increase in litigation costs 16,17

- total running costs 18

Program 4 - Administration of Justice

Family Court - child support scheme, effect on custody claims 19

- custody applications, increases in 19

- dissolutions, rate of 18

- increase in workload 18

- Parramatta courts complex 19

- unpaid accounts 20

Supreme Court of the ACT - criminal trial days, increases in 20

- transfer of funding to the ACT 20,21

Administrative Appeals Tribunal - additional funding, breakdown of 21

- administrative separation from A-Gs 21

- Queensland Nickel hearing 22

Courts Building Services - Melbourne Law Courts building 23.24

Program 6 - Maintenance of Law, Order and Security

Australian Federal Police - Australian Automatic Arms Pty Ltd 26,27

- death of Mrs Case 30

- death of Mr O'Brien 28,29

- firearms registry co-ordination 25,26

- stringent licensing scheme 26

- visit of President Bush, cost of security 24

- visit of Queen, cost of security 24

- witness protection costs 28,29

National and Protective Security - LEAN database 30-32

- Privacy Commissioner 31-32

- Privacy International 31

Page

Page

Australian Institute of Criminology - Kutchinsky, cost of visit by 34

- media violence and crime 34

- resignation of senior officers 34

- Sex Industry and Public Policy conference 34

- Violence Prevention Unit 33

Cash Transactions Reports Agency - Zenith Centre lease costs 35

Program 7 - Corporate Services

Corporate Support - act of grace payment under Audit Act s 34A 36

- Blackall St fitout project 35

- promotion of women to SES level 36

DEPARTMENT OF VETERANS' AFFAIRS

Program 1 - Benefits

Compensation - Compensation Claim Processing System 40

- Dapsone study report 38

- delays in processing claims 41

- determining system, improvements to 39-41

- disability pensions, simplification of 39

- disability pensions, Audit Office comments 42

- CARP 38

- NZ and Australian determining systems compared 40

- service pensions, national approach to processing 42

- service pensions, quality control program 42

- tax file numbers and pharmaceutical allowance scheme 42

- Veterans' Children's Education Scheme (VCES) 37,38

- war widows' pensions, Audit Office comments 42

Incorporation of question on notice from Senator Newman 92

Program 2 - Health

Treatment Management - Andrews report, government response to 44

- co-ordination of VAAS and VIP programs 45

253

Page

- densiometry screening for war widows 46

- health promotion pilot program 45

- remote area veterans requiring treatment interstate 43

- stoma supply arrangements 46

- Veterans' Health Week 45-46

- VIP pilot program 44-45

Health Care Services - brickwork repair at RGH Concord 54

- confidential agreement re transfer of RGH Hobart 48,49

- continuity of staff employment at RGH Hobart 48

- 'drift rate' of veterans to private hospitals 53,54

- estimated redundancy payments, RGH Hobart 52,53

- Greenslopes Hospital, delays in integration 52

- repatriation hospitals, proposed transfer to States 46-52

- Repatriation Private Patient Scheme, costs 51

- RGH Hobart, problems with integration 47

Community Based Health Care - chiropractic treatment for veterans 59,60

- domiciliary services, conduct of review 56,57

- increased demand for non-departmental treatment 55

- Local Medical Officer (LMO) scheme, conduct of review 55,56 - nursing home care, increase in demand for 59

- nursing home care, monitoring of payments 58

- Repatriation Pharmaceutical Benefit Scheme, fees to pharmacists 57,58

- treatment account system, separability of LMOs and specialists 55

- Veterans' Entitlements Act, progress of amendments 60

Program 3 - War Graves

- portfolio saving 61

- Rookwood Garden of Remembrance Project 60,61

Program 4 - Corporate Services

- corporate plan 63

- compensation scheme for serving personnel, evaluation 63

- National Computer Centre, rent and outgoings 61

- PSU members, unauthorised use of departmental facilities 62,63

254

Answers to questions on notice from Senator Newman 100

Page

Program 5 - Australian War Memorial

DEPARTMENT OF HEALTH, HOUSING AND COMMUNITY SERVICES

General - annual report 65

- answers to questions on notice, belatedness 206-207

- consultancies 65,141-147,207-211

- diagnosis related group cost weights (DRGs) 144-146

- social justice plan, cost 67

Program 1 - Health Advancement

Drug Abuse Reduction - ANU heroin program 68

- heroin, legal administration to addicts in ACT 69,70

- National Centre for Epidemiology and Population Health (NCEPH), drug abuse study 68

Health Promotion and Disease Prevention - Aborigines, collection of HIV data 155-156,202-203,206

- advertisements re AIDS and 'safe sex' 72,147-152

- age of sexual activity, trends in 191-196

- AIDS educational material, treatment of risk activities 195

- AIDS kit 201

- Australian Federation of AIDS Organisations 205

- Australian Government Health Service 102

- condom fallibility statistics 197

- condom machines in schools 192-194

- diary project 73,74

- 008 information lines, responses to 200-201

- family planning 'hot line' 72

- Girlfriend: safe sex guide 197

- Health Information for International Travel booklet 72

- HIV/AIDS infection rate projections 203-205

- Intergovernmental Committee on AIDS, discussion papers 193-195,205 - national AIDS education campaign, evaluation 190

- programs for young people's sexual health 192

- 'safe sex' and condom failure 70,151-152

- 'safe sex' awareness campaigns 148-150,200

- 'safe sex' campaigns for homosexuals 149-153

- 'safe sex', popular understanding of term 198-200

255

Page

- Sex Can Be Safe If pamphlet 195-196

- sexually transmitted disease transmission rates 153-155

- Travel Safe campaign 148-151

- Women's Health Program 74,75,156

Research - cervical cancer 75

- John Curtin school, funding arrangements 75

International Health - Australian Postgraduate Federation of Medicine 75,76

Program 3 - Residential Care for Older People

Financial Support - CAM and SAM rates 81

- capital funding for nursing homes/hostels 77

- Commonwealth assistance for nursing home residential beds 80 - community care packages 78,79

- exempt nursing homes, 20% fee increases 76,77

- hostel residents, general conditions of recurrent subsidies 78

- nursing home/hostel bed numbers 78

- nursing home turnover rate 79

- Residents' Rights agreement 79,80

Program 4 - Assistance For People With Disabilities

Rehabilitation - Commonwealth Rehabilitation Service 82-84

- involvement in LEAN network 141

- smart cards 141

- VAX computer upgrade 82

- Victorian Schizophrenic fellowship program 85

Incorporation of questions on notice from Senator Alston 85

Hearing Services - demand for hearing aid fittings 102,103

- disability reform marketing strategy 103,104

- DSS concession cards, errors on 103

- export earnings 103

- waiting period 103

256

Page

Program 6 - Health Care Access

Financial Support to Individuals - act of grace program 180

- Australian national formulary 224

- co-payment scheme, costs and savings 157-162,166-167,212-216,219-221 - cost apportionment, Medicare and Medibank 104-106,119-123 - databases, Medicare and Medibank Private 121

- demonstration grants program 168-170

- demonstration practice grants 162-170

- diagnostic imaging services regulations 211-212

- DURC 181

- eligibility checking for concessional pharmaceuticals 184-185,224-225 - entitlement number problems, concessional pharmaceuticals 184-185,225-227 - female graduates in medical practice - GP billing practices

- Health Australia takeover - Health Insurance Advisory Group - Health Insurance Commission, functions - information technology in general practice

- international travel and Medicare benefits - legislation covering pharmaceutical cards - Medibank Private - Medicare agreement

- Medicare rebate mistakes and eligibility - Medicare schedule fee determinations - pathology abuse and overservicing - pathology services - Pharmaceutical Benefits Remuneration Tribunal - pharmacy concession cards, upgrading of

- Pharmacy Restructuring Authority - pre-admission investigations in State hospitals - Private Health Insurance Administration Council (PHLAC) - privately insured patients in private hospitals

- public hospitals questioning privately insured patients - Public Sector Union (PSU) health scheme - reductions in medical student numbers - retirement packages for GPs

- safety net scheme - smart cards for patient information - statutory minimum reserves and exemptions - Williamstown Hospital patient mix

Incorporation of questions on notice from Senator Herron

Financial Support to Service Providers - Australian Institute of Health

174-175 160-161

109-110,129-132,139 117 106 179,222-224

177-179 185-186 106-140 221-222

176-177 171

216-219 172- 173 182-184

225-226 181-184 173- 174

128 116

113-115,221 111-119,146-147 175 174,176

180-181 223-224 127-129 222

186

234-235

257

Page

- cervical cancer, educational programs 233

- cervical cancer, risk factors 230

- cervical cancer, screening trends 227-229

- cervical cancer, statistics 234

- expert advisory committee 229,233

- 'organised approach' program 229-232

Program 9 - Corporate Management - Australian Deafness Council, funding 236

- Catalyst magazine 235

- Family care Givers Australia Inc, funding 237

- Student Initiatives in Community Health, funding 235-236

Incorporation of letter from Australian Journalists Association 238

Incorporation of questions on notice from Senator Harradine 238-239

258

APPENDIX 1

QUESTIONS TAKEN ON NOTICE BEFORE AND DURING THE HEARINGS INCLUDING QUESTIONS UNANSWERED

259

262

263

264

265

266

S e n a to r

ra re r (c o n u l)

Subject Date to Dept./ Date reply received/

Hansard page no. Hansard page no.

Documentation of review study of printing operation: - RGH Greenslopes - South Australia region

27.03.92

Date provided to Senators

Remarks

a) Details of offset and other impact printing equipment - make - model

- year of manufacture - location - capital cost Analysis on capacity utilisation? How was it calculated and results? b) Capital status of offset and other impact printing equipment

- owned? - leased? - hired? - installed free of charge? - other arrangements? c) When are machines replaced? d) Criteria for replacement/selection?

27.03.92

Newman Program 1

Why is ATAS more generous than VCES? Copy of consultant's report on better understanding reasons for decisions Copy of comparison of determining system with NZ Check if Secretary's discretion to collect tax file

numbers How many PTEC and STEC card holders respectively receive disability pension but not service pension (as

at .30 June 1991)

02.04.92 p. 38 p. 40

p. 40 p. 42

p. 92

24.04.92 24.04.92

24.04.92 24.04.92

24.04.92

24.04.92 24.04.92

24.04.92 24.04.92

2.04.92

267

268

Senator Subject Date to Dept./ Date reply received

Hansard page no. Hansard page no.

Newman (contd) Program 3 War Graves Amount of settlement of claim on NSW Garden of Remembrance

02.04.92

p. 61

02.04.92

24.04.92

Date provided to Senators

24.04.92

Remarks

War Memorial 1. Compensation claim - duration and cost 2. Workload changes p. 100

p. 100

p. 100 p. 100

2.04.92 2.04.92

Program 4 Corporate Services Military compensation scheme - deficit on development

p. 63 24.04.92 24.04.92

Impact on the number of projected clients if MCS took over VEA - number of people, classification of people, etc.

pp. 63-64 24.04.92 24.04.92

269

270

Consistency of wage case/efficiency principles in running costs

Copy of discussion paper on NCEPH

p. 68

p. 69

23.04.92

p. 171/3.04.92

23.04.92

3.04.92

271

272

Senator Subject Date to Dept./ Date reply received/

Hansard page no. Hansard page no. Date provided to Senators

2.04.92

Remarks

A l s t o n 1. How many operational child care places (since

1/7/91)? - private sector - community based sector

- SFCP centres 2. Number estimated - Corrigenda 3: Average cost/place of fee relief; average cost in Budget 4. Additional appropriations to cover reduced family

incomes using child care and increased use of child care services 5. Monthly fall in family incomes since 1/7/91 6. Increased use of private or community based centres since 1/7/91

7. Facts and assumptions used as basis for government Budget Decision on fee relief level for private sector

p. 85

p. 85 p. 85

p. 85

p. 85 p. 85

p. 85

28.04.92

28.04.92 28.04.92

28.04.92

28.04.92 28.04.92

28.04.92

28.04.92

28.04.92 28.04.92

28.04.92

28.04.92 28.04.92

28.04.92

Special Fee Relief 8. Amount and proportion of fee relief available - where income related fee inappropriate

- last 4 quarters for each service type 9. Guidelines for centre co-ordinators/owners eligibility 10. Applications approved in last 4 quarters for private

and community based 11. Amount and proportion of fee relief - private sector - community based sector

12. Centres approved > 5% special fee relief (4 quarters) 13. Proportion private/SFCP centres received last funding 5-8 weeks late. Why delays?

14. Restrictions on fee relief advances 15. Methods of accountabilities fees spent for purpose le.Centres overspent fee due to incorrect use of funds (4 quarters)

p. 86

p. 86

p. 86

p. 86

p. 86

p. 86

p. 86 p. 86 p. 86

28.04.92

28.04.92

28.04.92

28.04.92

28.04.92

28.04.92

28.04.92 28.04.92 28.04.92

28.04.92

28.04.92

28.04.92

28.04.92

28.04.92

28.04.92

28.04.92 28.04.92 28.04.92

273

274

275

276

277

278

280

281

Senator Remarks Date reply received/

Hansard page no. Date provided to Senators

Unanswered Unanswered Unanswered Unanswered Unanswered

Unanswered

ESTIMATES COMMITTEE F

REPORT TO THE SENATE

April 1992

ESTIMATES F

REPORT TO THE SENATE

Estimates Committee F presents its Report to the Senate.

INTRODUCTION

1. On 5 March 1992 the Senate referred to the Committee the particulars of proposed additional expenditure for the service of the year ending on 30 June 1992 relating to the following portfolios:

. Industrial Relations

. Primary Industries and Energy

. Employment, Education and Training

2. The Committee has considered the proposed additional estimates of these portfolios as presented in the respective program performance statements and has received explanations of the additional estimates from the Minister for Industrial Relations and officers of the departments and authorities concerned.

3. The Committee tables for the information of the Senate in conjunction with Appropriation Bills No 3 and No 4, copies of the Minutes of Proceedings, Hansard transcripts of evidence of Committee proceedings and a table of contents to the Hansard. The answers taken on notice at the Committee's hearings will be

tabled in the Senate under separate cover in a volume entitled "Additional Information Provided During Estimate Committee F's Examination of Proposed Expenditure for 1991-1992".

4. The Committee wishes to bring certain matters to the attention of the Senate.

DEPARTMENT OF PRIMARY INDUSTRIES AND ENERGY

PROGRAM 2 - INDUSTRY SUPPORT SERVICES

SUB-PROGRAM 2.1: NATIONAL RESOURCE MANAGEMENT

5. The Committee examined the take-up rate for crop planting scheme operating through Part B of the Rural Adjustment Scheme (RAS). Some concern was

285

expressed at the apparently very low participation rate in the scheme.

Departmental officials indicated that only twenty-five applications had been received for support under the scheme.

6. The Committee raised two issues with departmental officials:

. Whether the allocation of support is not being made early enough in the season to allow farmers to take advantage of the prime cropping time in their region; and

. whether the administration of the program and the support available under it is such that few potential beneficiaries are likely to pursue their applications.1

DEPARTMENT OF EMPLOYMENT, EDUCATION AND TRAINING

7. Committee members commented generally on the findings of the Australian National Audit Office (ANAO) in its 23rd Report of 1991-92 that:

the standard of the Department's accounts and records was unsatisfactory in a number of important areas and that there were a number of underlying inadequacies which... required management attention.2

8. Departmental officials acknowledged that financial management problems had existed in a number of areas and that these were being addressed. Officials noted that many of the problems stemmed from the size of the Department the complexity of its functions and the impact of the devolution of management responsibility in such a structure. The Department is putting considerable effort into management training programs to deal with these problems.

9. Expenditure under the Aboriginal Education (Supplementary Assistance) Act 1989 was of particular concern to the Committee. The ANAO has found that:

Expenditure [of $ 79 638 888] under this item revealed that departmental records were not adequate to determine whether

1 Senate; Hansard. Estimates Committee F, pages F52-F56.

2 Senate; Hansard. Estimates Committee F, page F71.

286

payments made were valid or not.3

It is unacceptable that such expenditure can be undertaken without adequate record keeping.

10. The Committee notes that the Department has previously explained that it

'... had traditionally given highest priority to the introduction and delivery of new services and program support arrangements ... This had sometimes led to some formal accounting requirements receiving less attention than

appropriate.14

11. The Committee will continue to monitor the Department's efforts to improve its financial management practices.

PROGRAM 8 - ABORIGINAL AND TORRES STRAIT ISLANDER AFFAIRS.

12. Over recent years the Aboriginal affairs portfolio has been the subject of close and critical scrutiny by estimates committees. On this occasion Estimates Committee F is pleased to be able to thank the officials of the Aboriginal and Torres Strait Islander Commission for the prompt and comprehensive answers

they have provided both to questions on notice and to questions asked during the Committee's hearings

RECOMMENDATIONS

13. Estimates Committee F recommends that all of the matters of interest raised in this report be further examined by the Senate.

14. Estimates Committee F recommends that all questions taken on notice before and during the Committee's hearings, as listed in Appendix 1, and not answered before the conclusion o f hearings, be further examined by the Senate.

Australian National A ud it Office (A N A O ), Report N o 23,1991-92, page 58, para 9.2.14.

A N AO, Report N o 23, 1991-92, page 58, para 9.2.2.

287

15. Estimates Committee F recommends that the Senate approve, without amendment or request for amendment, expenditure in estimates considered by the Committee.

ACKNOWLEDGMENTS

16. The Committee takes the opportunity to thank the Minister for Industrial Relations, Senator the Hon. Peter Cook for his assistance during the hearings. The Committee also thanks the officials of the three portfolios for their attendance and cooperation in answering questions, and for providing detailed written responses where sought.

Michael Beahan Chairman

288

RESERVATIONS

289

Secretary Estimates Committee F Parliament House CANBERRA ACT 2600

Dear Sir,

By way of Reservation I recommend that the following be the subject of further debate in the Senate:

Department of Industrial Relations

1. General matters - shearers and contract labour

2. Subprogram 1.2 - Industrial Relations Development.

Yours sincerely,

SENATOR WINSTON CRANE

291

JMN:JC 28 April 1992 Secretary Estimates Committee F The Senate Parliament House

Dear Mr Abbott,

I recommend that the following matters relating to the estimates of expenditure referred to the Committee be further examined by the Senate.

DEPARTMENT OF INDUSTRIAL RELATIONS

Program 2 - Redundancy provisions for ex-defence personnel.

Yours sincerely,

JOCELYN NEWMAN

292

23 April 1992

Mr Derek Abbott Secretary Estimates Committee F Parliament House CANBERRA ACT 2600

Dear Mr Abbott,

By way of reservation to the Report of Estimates Committee F, I recommend that the Senate further consider:

DEPARTMENT OF EMPLOYMENT, EDUCATION AND TRAINING

Sub-program 1.1 Participation, Retention and General Competencies

Sub-program 2.1 Higher Education System

Sub-program 2.2 Targeted Research and Scientific Development

Sub-program 3.1 Vocational and F urther Education

Sub-program 3.2 E ntry Level Training

Sub-program 3.3 Industry Training Support

Sub-program 3.4 Recognition of Overseas Skills

Sub-program 4.1 Employment Access

Sub-program 4.2 Community Based Strategies

Sub-program 4.3 Labour Adjustment Assistance

293

Program 5 Labour M arket Operation

Sub-program 6.1 Education Income Support

Sub-program 6.2 Aboriginal Education

Sub-program 7.2 Management Services

Sub-program 7.4 Portfolio Advertising

Sub-program 7.5 International Participation

ABORIGINAL AND TORRES STRAIT ISLANDER COMMISSION Sub-program 1.2 Socio-Economic Development

in the Progress Performance Statements of the above mentioned Departments. Yours sincerely

Dr John Tierney Liberal Senator for New South Wales

294

Secretary Estimates Committee F Parliament House CANBERRA ACT 2600

Dear Sir

By way of reservation I recommend that the following be the subject of further debate in the Senate:

Employment, Education and Training

Program 8

Aboriginal and Torres Strait Islander Commission - G rants made to the Jawoyn Association.

Yours sincerely

GRANT TAMBLING SENATOR FOR THE NORTHERN TERRITORY

27 April 1992

295

P

LIST OF QUESTIONS TA K EN ON NOTICE BY PORTFOLIO OFFICERS BEFORE A N D DUR IN G THE HEARINGS B Y ESTIM ATES COMMITTEE F

297

Senator

SENATE ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Industrial Relations

Program Subject

Date to Dept/ Date

Hansard Rec'd Date to Senator

Short

O'Chee

P arer

Gen W hat grants have been made to trade unions and community groups since 1 July 1991 to date? 1-3

In each case: (a) W hat is the nam e of the trade union or community group which received the funds? (b) W hat was the am ount of the grant?

(c) W hat was the purpose of the grant? (d) U nder w hat program was the grant made?

Gen With reference to the United Nations Conference on the Environm ent and Development (or the "Earth Summit") to be held in Rio de Janeiro from Ju n e 1 to June 12, 1992: 12.3

a) W hat resources have been used, or have been budgeted for use, for any purpose relating to this Conference? Please give details of: (i) relevant classifications of staff involved

(ii) approximate time taken, and salaries paid, including overtime (iii) consultants used, duration and value of contract (iv) details and descriptions of staff and consultant's contributions b) Which staff, if any, will be attending the Conference either

as an official delegate, observer, or support staff? c) W hat will be the cost of their attendance, including travel cost and travel allowance payable?

Gen a) Provide details of the capital status of all photocopy machines. 27.3

Are they:

Remarks

SENATE ESTIMATES COMMITTEE 'F - APRIL 1992

Senator

Alston

Questions on Notice requested prior to/during the hearings for the Department o f Industrial Relations

Program Subject

Date to Dept/ Date Date to

Hansard Rec'd Senator Remarks

- owned?

- leased?

- hired?

- installed free of charge?

- other agreements?

b) When are machines replaced? c) W hat is the criteria for replacement/selection? d) Should photocopy facilities installed in D epartm ents be subject to review under Finance Direction 25F? 27.3 Amended 30.3

-If not, why not?

e) Is the D epartm ent aw are of facilities m anagem ent? Is this an option for review of photocopy facilities?

Gen 1. Page 11 of the Social Security Performance Statem ents 1991-92, Explanation of Additional Estim ates states th a t the D epartm ent of Industrial Relations, along with the D epartm ent of Social Security and the Insurance and Superannuation Commission will be involved

in a publicity campaign "to raise community aw areness of the benefit of saving for retirement". 31.3

a) W hat is the nature of the D epartm ent of Industrial Relations' involvement with the campaign? b) When is the campaign to begin?

c) W hat will be the total cost (including distributed overheads) of the D epartm ent's involvement in the campaign this financial; year and for 1992-93 and w hat are these figures broken down into adm inistrative expenses and staff salaries?

SENATE ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Industrial Relations

Senator Program Subject

Date to Dept/ Date Date to

Hansard Rec'd Senator Remarks

d) W hat will be the cost for the campaign be in 1993-94 and 1994-95?

Alston Gen e) W hat input, if any will the D epartm ent have or has into the

D epartm ent of the Treasury's soon to be launched publicity campaign about the Superannuation G uarantee Levy?

Newman Gen 1) W hat m atters on pay allowances for Defence personnel are

currently under negotiation with DIR?

2) For how long?

3) W hat is the priority of each?

Crane 1.1.2 Use of coercion in industrial dispute

Crane 1.7 Australian Trade Union Authority­

- list of programs where training is being carried out

Newman 2.1 Transfer of determ ination of defence force allowances from DIR to Dept of Defence and Defence Force Remuneration Tribunal

31.3

F108

F19

F27

F34

ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department o f Primary Industry and Energy

Senator Program Subject

Date to Dept/ Date

Hansard Rec'd Date to Senator Remarks

Short

O'Chee

P arer

Gen W hat grants have been made to trade unions and community groups since 1 July 1991 to date? 11,3

In each case: (a) W hat is the nam e of the trade union or community group which received the funds? (b) W hat was the am ount of the grant?

(c) W hat was the purpose of the grant? (d) U nder w hat program was the grant made?

Gen With reference to the United Nations Conference on the Environment and Development (or the "Earth Sum m it”) to be held in Rio de Janeiro from June 1 to June 12, 1992: 12.3

a) W hat resources have been used, or have been budgeted for use, for any purpose relating to this Conference? Please give details of: (i) relevant classifications of staff involved

(ii) approxim ate tim e taken, and salaries paid, including overtime (iii) consultants used, duration and value of contract (iv) details and descriptions of staff and consultant's contributions b) Which staff, if any, will be attending the Conference either as

an official delegate, observer, or support staff? c) W hat will be the cost of their attendance, including travel cost and travel allowance payable?

Gen a) Provide details of the capital status of all photocopy machines. 27.3

Are they:

ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Primary Industry and Energy

Senator Program Subject

Date to Dept/ Date

Hansard Rec'd Date to Senator Remarks

b) c) d)

e)

- owned? -leased? -hired? -installed free of charge? -other agreements?

When are machines replaced? W hat is the criteria for replacement/selection? Should photocopy facilities installed in D epartm ents be subject to review under Finance Direction 25F?

-If not, why not? Is the D epartm ent aware of facilities management? Is this an option for review of photocopy facilities?

27.3

Chapman 1.1 Buffalo and TB eradication programs in Kakadu.

Chapman 1.1 Wool promotion paym ent carry over.

Panizza 1.1 $95,000 increase in expenditure to the departm ent's Animal

H ealth Laboratory.

Tambling 1.3 Fisheries

I refer to the sale by the Departm ent of the MATSU MARU, an Indonesian fishing vessel confiscated in Australian waters. 1. Was the M atsu Maru offered for tender? 2. Who acted on behalf of the departm ent in relation to the sale of

this vessel?

Amended 30.3

F38

F39

F40

24.3

ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Primary Industry and Energy

Senator Program Subject

Date to Dept/ Date

Hansard Rec'd Date to Senator Remarks

3. H as the sale been concluded?

Archer 1.3 Lim itations regarding the ban on gill-net fishing F50

Archer 2.1 Changes in procedure for im portation of bean seed. F64

Panizza 2.1 Num ber of persons not perm itted to act as principals in the

m eat substitution industry. F59

Boswell 2.1 Date of first application for the Rural Adjustm ent Scheme. F54

Crane 2.3 Comments made by Senator Tate in relation to reviews by AQIS. F61

Tambling 2.3 Q uarantine and Inspection 24.3

1. W hat are the details of concerns of Q uarantine officials for the recent landing of a foreign vessel beached on the N orth­ West coast of W estern Australia? 2. W hat resources (staffing and financial) were committed to

this project? 24.3

3. W hat resources (staffing and financial) have been committed to the apprehension of illegal vessels over the past year? 4. W hat formal arrangem ents have been developed to discuss formative stages of targeting Suspect Illegal E n tran t

Vessel(s) (SIEV) since the Report on Investigation into arrival of Suspect Illegal E n tran t Vessel (SIEV) into Montague Sound was made available in February 1992?

Questions on Notice requested prior to/during the hearings for the Department of Primary Industry and Energy

Dept/ Date

Hansard Rec'd Date to Senator Remarks

ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to D ept/ Date Date to

Hansard Rec'd Senator Remarks

Short

O'Chee

P arer

Gen W hat community groups since 1 July 1991 to date? In each case: (a) W hat is the nam e of the trade union or community group which received the funds?

(b) W hat was the am ount of the grant?

(c) W hat was the purpose of the grant?

(d) U nder w hat program was the grant made?

Gen With reference to the U nited Nations Conference on the Environm ent and Development (or the "Earth Summit") to be held in Rio de Janeiro from June 1 to June 12, 1992: a) W hat resources have been used, or have been budgeted for use,

for any purpose relating to this Conference? Please give details of: (i) relevant classifications of sta ff involved (ii) approxim ate tim e taken, and salaries paid, including overtime

(iii) consultants used, duration and value of contract (iv) details and descriptions of sta ff and consultant's contributions b) Which staff, if any, will be attending the Conference either as an official delegate, observer, or support staff?

c) W hat will be the cost of their attendance, including travel cost and travel allowance payable?

Gen a) Provide details of the capital status of all photocopy machines. Are they:

11.3

12.3

27.3

23.4 27.4

23.4 27.4

ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to D ept/ Date

Hansard Rec'd Date to Senator Remarks

Chapman

Tierney

Alston

Tierney

- owned?

- leased?

- hired?

- installed free of charge?

- other agreements?

b) When are machines replaced? c) W hat is the criteria for replacement/selection? d) Should photocopy facilities installed in D epartm ents be subject ■ to review under Finance Direction 25F

- If not, why not?

e) Is the D epartm ent aw are of facilities management? Is this an option for review of photocopy facilities?

Gen Jobtrain: Decision not to call for tenders

Gen Turnover of CES staff by region and program.

Gen 1. Since 1 July 1990, which D epartm ental officers have been sent overseas by the Departm ent, for how long, where were they sent, for w hat reason, and w hat was the total cost to the D epartm ent for each trip?

1 Is government considering replacem ent of the community standard as a basis for the calculation of the funding for non-government

Amended 30.3 27.3

F72 28.4 28.4

F76

F109

2.4/F110

ESTIMATES COMMITTEE V - APRIL 1992

Date to D ept/ Date Date to

Senator Program Subject Hansard Rec'd Senator Remarks

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Tierney 1 W hat work is being undertaken? F110

Tierney 1 W hat does the governm ent see as replacing the community standard? F110

Tierney 1 Can the D epartm ent provide detailed information of its assessment

of appropriateness of the community standard?

F110

Tierney 1 Does the D epartm ent have available estim ates of the cost of educating

a child a t a governm ent school in the various States?

F110

Tierney 1 Does the D epartm ent have available any assessm ent of the

Educational Resources Index (ERI) as an appropriate basis for categorising the needs of schools?

F I 10

Tierney 1 Does the D epartm ent have available to it any assessm ent of the

current funding formula for the contribution of private effort to funding? Can it m ake this available to the Committee?

F110

Tierney 1 Will the D epartm ent m ake available to the Committee a table

showing the distribution of schools am ongst funding categories according to their ERI in 1991?

F110

Tierney 1 Does the D epartm ent have estim ates of the aggregate funding

entitlem ent of schools in the Catholic systems compared to the funding entitlem ent th a t schools in these systems would have access to if categorised on an individual schools/ERI basis?

F110

Tierney 1 W hat basis does the D epartm ent use for determ ining the level at

which a school will be funded?

F110

Tierney 1 W hat is the current status of preparation of the National Report

on Schooling? When is publication due?

F110

Tierney 1 W hat is the current status of proposals arising in the context of

the Special Prem iers Conference for the absorption of specific F110

ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to D ept/ Date Date to

Hansard Rec'd Senator Remarks

Tierney

Tierney

Tierney

Chapman

Tierney

1.1

1.1

funding for S tate schools into General Purpose Grants? Can the departm ent provide the Committee with statistics showing the contribution by state and Federal Governments to capital expenditure on infrastructure for government schools by State

compared with the contribution by S tate and Federal governments to capital expenditure on non-government schools by state? Can the D epartm ent provide the Committee with inform ation concern­ ing the infrastructure (capital) requirem ents of the government

and non-government school systems over this decade? W hat is the current status of the review of the capital requirem ents of non-government schools?

Breakdown of prize to top 500 students by state

St John's College, a Catholic High School in Darwin, has been seeking an upgrading from Level 9 to Level 12. a) Will this upgrade take place?

b) W hat has been the delay in processing the decision on this upgrade? c) If the decision has been made not to upgrade the School what has the D epartm ent based its assessment on to distinguish it

from other Level 12 schools?

F110

F76 28.4 28.4

F110

28.4 28.4

28.4 28.4

28.4 28.4

Tambling Socio-Economic Development 1.4

1. W hat are the outcomes of the workshop held in Darwin in October

ESTIMATES COMMITTEE T - APRIL 1992

D ate to D ept/ Date Date to

Subject Hansard Rec'd Senator Remarks

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

1991 on the Tourism Employment Strategy? 1.4

Can details be provided regarding the training needs survey for the NT tourism industry? W hat were the costs of the survey (Commonwealth/State)? Can a copy of the report entitled Aboriginal People and Tourism in the N orthern Territory - T raining Needs Survey be provided to the Committee? Have any of the recommendations and initiatives contained within this report been implemented?

Tambling 1.2 Assistance for disadvantaged schools and students. 1.4

1. An Access course was verbally approved for Maningrida for Sem ester II (July) 1991. Why did it take until the November 18, 1991 for official approval to be given? 2. How m any hours was the tu to r paid for in sem ester II? 3. H as the departm ent received representations from the community

regarding the 13 weeks (84.5 hours) the tutor was not paid? 4. For the past two years there have been a large num ber of problems for parents a t Maningrida filing out ABSTUDY application forms. W hat has the departm ent done this year to help alleviate this

problem?

Tierney 1.2.1 On w hat basis are funds allocated to schools in English as a Second F I 10 28.4 28.4

Language programs?

Tierney 1.2.2 Can the D epartm ent make available to the Committee any material F110 28.4 28.4

ESTIMATES COMMITTEE TP - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to Dept/ Date Date to

Hansard Rec'd Senator Remarks

evaluating the success of the Disadvantaged Schools Program?

Tierney 1.2.3 Can the D epartm ent provide the Committee with an evaluation of the Country Areas Program?

Tierney 1.3.1 Will the D epartm ent advise the Committee of progress made in the implementation of the White P aper on Australia's Language in relation to the Ethnic Schools Program?

Tierney 1.3.1 H as the D epartm ent made any assessm ent of the likely implications of the changes to the provision of language instruction through the Ethnic Schools Program on the willingness of foreign governments (e.g. the Italian Government) to contribute funds to language programs

in Australia?

Tierney 1.3.1 H as an estim ate been made of the cost of overheads in the provision of language instruction under the new arrangem ents for the Ethnic Schools Program? How do these compare with the adm inistrative costs of the previous arrangem ents for the Ethnic Schools Program?

Tierney 1.4.1 Is the departm ent aware of criticisms made of the National Statem ent on Mathematics and M athem atics Profiles by the Mathematics Science Council? H as the D epartm ent available any assessment of the validity of these criticisms?

F i l l 28.4 28.4

F i l l 28.4 28.4

F i l l 28.4 28.4

F i l l 28.4 28.4

F i l l 28.4 28.4

28.4 28.4

ESTIMATES COMMITTEE 'P - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to Dept/ Date

Hansard Rec'd Date to Senator Remarks

Tierney 2 W hat is the total revenue accrued by institutions which charge fees

for the postgraduate aw ard courses for which institutions are perm itted to charge fees? W hat is the breakdown by institution? Tierney 2 W hat progress has been m ade towards implementation of the $70 million

Quality Assurance Program announced by the M inister last year? In particular w hat progress has been made on establishing criteria for the allocation of funds am ong universities? Tierney 2 W hat sorts of criteria does the D epartm ent see as being relevant to

assess whether an institution has made good use of its overall resources? Tierney 2 Is the D epartm ent aw are of any criticisms which have been made of the

Equity and M erit Scholarship Scheme? When was this scheme last reviewed? W hat was the outcome of any such review? Can the departm ent produce the results of any such review? Tierney 2 W hat is the take up rate of the EMSS? W hat is the projected take up rate?

Tierney 2 W hat statistics are available for overcrowding a t each tertiary institution

in Australia?

Tierney 2 Are figures available for capital and recurrent funding to universities

in 1992?

Tierney 2 Can the D epartm ent provide the Committee with an assessment of current

infrastructure deficiencies in the Higher Education sector for teaching and research? W hat inform ation can the D epartm ent make available to the Committee? Tierney 2 W hat is the D epartm ent's current assessment of the likely shortage of

academic staff as considered by the National Institute of Labour Studies Report?

3.4 28.4 28.4

3.4 28.4 28.4

3.4 28.4 28.4

3.4 28.4 28.4

3.4 28.4 28.4

3.4 28.4 28.4

3.4 28.4 28.4

3.4 28.4 28.4

ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to Dept/ Date

Hansard Rec'd Date to Senator Remarks

Tierney

Tierney

Tierney

Tierney

Tierney

Tierney

Tierney

Tierney

2

2

2

2

W hat steps is the government taking to redress the shortage of sufficient qualified academic sta ff in the Higher Education sector? Does the D epartm ent have projections for the revenue likely to be obtained for full-fee paying overseas students for each of the formal and non-formal

sectors to the Year 2000? Has the D epartm ent made an assessment of the Industry Commission's Report on the Export of Education Services? Can th a t d ata be made available? H as the D epartm ent made an assessment of the likely increase in revenue resulting from the export of education services resulting from the implementation of the recommendations of the Industry Commission for changes to im m igration regulations and for the deregulation of the Higher

Education sector?

3.4 28.4 28.4

3.4 28.4 28.4

3.4 28.4 28.4

2.1 W hat progress has been made by the D epartm ent in the development of a model to project forward HECS revenue and HECS obligations by the Commonwealth? 2.1 What am ount has been expended by the departm ent to procure the

amalgamation of the N orthern rivers CAE and the Armidale campus of the University of New England? 2.1 Does the D epartm ent have any estimates of the likely increase in income to universities if they were permitted to enrol full fee

paying Australian students? 2.1 W hat is the num ber of first year students enrolled in courses at Universities in Australia? Can the departm ent provide the Committee

3.4 28.4 28.4

3.4 28.4 28.4

3.4 28.4 28.4

3.4 28.4 28.4

ESTIMATES COMMITTEE T - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to D ept/ Date

Hansard Rec'd Date to Senator Remarks

with w hatever statistics it has available on the projected level of students and current level of students a t each tertiary institution in Australia? Tierney 2.1 H as the departm ent undertaken any costings of the additional common­

wealth obligations under HECS which would be incurred if HECS were extended to allow fee deferral for full fee paying A ustralian students? Tierney 2.1 W hat are the projected Commonwealth revenue returns for the operation of HECS for each year to the Year 2000? Tierney 2.1 H as the D epartm ent made any estim ate of the likely increase in

university revenues if universities were free to vary the HECS charge to increase charges for courses? Tierney 2.1 W hat is the total cost of the HECS postgraduate scholarships that the

D epartm ent has made available under the HECS Postgraduate Exemption scholarship program? W hat is the cost of each scholarship or class of scholarships awarded under the program? Tierney 2.1 Higher Education System:

- details of composition and running costs.

- discovery of program error in SOS

- ratio of staff to students in Aboriginal Studies faculty a t the University of SA.

3.4 28.4 28.4

3.4 28.4 28.4

3.4 28.4 28.4

3.4 28.4 28.4

F78 28.4 28.4

F79 28.4 28.4

F79 28.4 28.4

- w hat additional funding does each university receive from the

ESTIMATES COMMITTEE 'P - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to Dept/ Date Date to

Hansard Rec'd Senator Remarks

enrolm ent of Aboriginal students above th a t of normal DEBT funding? F79

Tierney 2.2 How m any Co-operative Research centres have been established to date? W hat is the total funding provided by the D epartm ent for the CRCs? W hat are the outputs of the CRCs? H as any review of the performance of the CRCs been carried out? Can the departm ent provide the Committee with the results of any such review?

Tierney

Tierney

Tierney

Tierney

Tierney

Tierney

Tierney

3.1 W hat is the current status of discussions with the States of proposals for Commonwealth funding of TAPE systems? 3.1 Have any states indicated to the Commonwealth their willingness to accept the Commonwealth proposal? 3.1 Are any bilateral agreements between the Commonwealth and States

proposed?

3.1 Will any of the additional funding for TAPE announced in the One Nation statem ent be made available until agreement is reached between the States and the Commonwealth? 3.1 Does the D epartm ent agree th a t the $420 million committed to TAPE

funding in One Nation is conditional on the States agreeing with the Commonwealth's proposal? 3.1 Will the Departm ent make available to the Committee its estimates of the annual am ounts which would be required each year between 1992

and 2001 for a smoothly phased increase in TAPE funding sufficient to m eet the targets of the Finn Committee? 3.1 Can the D epartm ent make available to the Committee estimates of funding

3.4

3.4

3.4

3.4

3.4

3.4

3.4

28.4 28.4

23.7 27.4

28.4 28.4

ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to D ept/ Date Date to

Hansard Rec'd Senator Remarks

Tierney

Tierney

Tierney

Tierney

for TAFE for each S tate for each year from 1980? 3.1 W hat progress has been made towards the development of national 3.4

systems for key competencies? 3.1 Can the D epartm ent provide the Committee with a current assessm ent of 3.4 the state of the private training m arket? 3.1 Can it provide a list of approved training providers to the Committee, 3.4

indicating the courses available through each provider? 3.1 - TAFE students to pay for 20% of course through HECS. F79

Tierney 3.2 - method of assessing objectives of VEETAC. F80

Tierney 3.3 Running costs of program 3.3 F80

Tambling 3.3 Industry T raining Support 24.3

W hat are the outcomes of the workshop held in Darwin in October 1991 on the Tourism Employment Strategy? Can details be provided regarding the training needs survey for the NT tourism industry? W hat were the costs of the survey (Commonwealth/State)?

Can a copy of the report entitled Aboriginal People and Tourism in the N orthern Territory - T raining Needs Survey be provided to the Committee? Have any of the recommendations and initiatives contained within this report been implemented?

28.4 28.4

28.4 28.4

28.4 28.4

ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to D ept/ Date Date to

Hansard Rec'd Senator Remarks

Crane 3.3 Why has the Rural Training Council in W estern Australia been closed?

Crane 3.3 M isappropriation of funds by staff of RTC in W estern Australia.

Tierney 3.4 R unning costs of program 3.4

Alston 4 In w hat ways does the D epartm ent keep track of labour m arket

program expenditure over the year?

Alston 4 Could the D epartm ent provide me with a copy of each program

m onitoring brief, m inute or note which refers to expenditure on all and specific labour m arket programs prepared in the D epartm ent since October 1991? Alston 4 W hat is the current ASL and expenditure allocated to each

branch in the D epartment's Program s Division?

Tambling 4.1 Following the m anagem ent review of CAAMA in 1991 - What adm inistrative and financial changes have been implemented?

Alston 4.1 a) Is the D epartm ent issuing self canvassing cards under its

JOBSTART program? If not why not? b) How many were issued?

Tierney 4.1 Details of course in relation to Jobtrain

Tierney 4.2 O utstanding debts associated with Jobstart in the N orthern

Territory

F73 28.4 28.4

F74 28.4 28.4

F80 28.4 28.4

2.4/F109

F109

F109

F110 28.4 28.4

F81 28.4 28.4

F82 28.4 28.4

ESTIMATES COMMITTEE *F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to D ept/ Date Date to

Hansard Rec'd Senator Remarks

Tierney

Chapman

Chapman

Tierney

Tierney

Tierney

Alston

Alston

Alston

4.2

4.2

4.3

4.3

4.4

5

5

5

5

Breakdown of running expenses F82

Breakdown of expenditure in relation to the self-employment assistance program F82

H as any assessm ent been made of the job prospects of retrenched F84

Australian National workers following assistance under the Australian N ational Labour Adjustm ent Package? No. of retrenched workers to be re-employed by A ustralian National? F84

Breakdown of running costs F84

Reports and reviews of TAP F84

Breakdown of running costs of the Industries Service Branch F86

Is it a fact th a t the D epartm ent anticipated th a t all those F109

who had been on unemployment benefits for 12 or more months as a t 1 July 1991 would have signed a N ew start Allowance/CES Agreement by 30 June 1992, and to what degree has it been met?

If no, w hat was the expectation, and to w hat degree has it been met? Is the CBS using the latest version of the A ustralian Standard F I 09

Classification of Occupations (ASCO)? If not, why not? W hat num bers of new start allowees: F I 09

(a) are currently participating in any and which Government labour m arket programs?

28.4 28.4

28.4 28.4

28.4

28.4

28.4

28.4

28.4

28.4

ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to D ept/ Date Date to

Hansard Rec'd Senator Remarks

Alston

Tierney

(b) have participated or are participating in any and which Government labour m arket programs during their current spell of unemployment?

W hat is the current proportion of new start allowees who are: (a) currently participating in Government labour m arket programs? (b) have participated or are participating in Government labour

m arket program s in their current spell of unemployment? (c) w hat is the D epartm ent's target proportion of new start allowees or long term unemployed persons who: (i) are participating in Government labour m arket

program s a t any one time, and (ii) have participated or are participating in such during their current spell of unemployment?

Checks against age for Abstudy

F109

F90 28.4 28.4

Crane

Crane

Education Income Support - why has the departm ent ceased to give a breakdown of Abstudy grants to secondary and tertiary students? Break up and comparison of isolated students and the am ount they received for both years.

F95

F96

ESTIMATES COMMITTEE 'F - APRIL 1992

D ate to Dept/ Date Date to

Senator Program Subject Hansard Rec'd Senator Remarks

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Tierney 6.1 Due to lack of documentation, the auditor general was not able F i l l

to express an opinion on the expenditure made under the Aboriginal Education (Supplementary Assistance) Act 1989, th a t is almost $80 million. The D epartm ent commented in

Note 21 to the 1990-91 Financial Statem ent th a t they felt th a t the internal audit reviews were sufficient and th a t action was being taken to address the ANAO findings.

a) Why has $80 million dollars of taxpayers money been spent, and no docum entation exists to support th a t expenditure?

b) Can the D epartm ent present to the Senate a breakdown of where they think this money may have been spent?

c) W hat program s has this money been spent on? and in w hat proportions?

d) W hat criteria is used to evaluate the effectiveness of these programs?

e) Who, within the Departm ent, is responsible for the application of these monies?

0 Who is responsible for ensuring th a t these monies are correctly accounted for?

ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to Dept/ Date Date to

Hansard Rec'd Senator Remarks

g) Are these persons still in the employ of the Department? h) W hat is different about the procedures of the Internal Audit office in these circumstances th at will result in action being taken by DEBT when history show th a t they

are usually firmly ignored? i) Precisely w hat action is being taken to address the ANAO findings? Tierney 6.1 Does the departm ent have an estim ate of the number of additional 28.4 28.4

students eligible for AIC support if the assets test is abolished? H as the D epartm ent undertaken any analysis of the proposals for AUSTUDY put forward by the Victorian Farm ers Federation?

H arradine 6.1 W hat precisely are the changes to the parental income test and the sibling concession for AUSTUDY which have only recently come into effect?

2.4/F108

H arradine 6.1 Has the Departm ent received any complaints from students or parents about these changes? F108 H arradine 6.1 Is it correct th a t the am ounts of AUSTUDY received for thousands of

students will be affected and th a t a majority of those with brothers or sisters will be adversely affected?

F108

H arradine 6.1 W hat is the rationale for moving away from a consideration of the degree of dependency in a family and focussing more on income? F109 H arradine 6.1 I have given notice to disallow Regulation 30 of the AUSTUDY

Regulations which, I understand, gives effect to the change in the sibling concession. Will the removal of Regulation 30 remove

F109

28.4

ESTIMATES COMMITTEE 'P - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to D ept/ Date Date to

Hansard Rec'd Senator Remarks

H arradine 6.1

H arradine 6.1

all the adverse effects contained in these changes and will it leave untouched any beneficial effects? Is it possible that, in some instance, every extra dollar earned by a parent could result in an overall loss in disposable income (taking into account AUSTUDY) by $1.25? Could the D epartm ent provide the Committee with graphs which show the equivalent m arginal tax rates generated by the removal of the sibling

concession where there are 2,3,4,5 or 6 children eligible for tertiary or secondary AUSTUDY?

F109

F109

Tierney

Tierney

6.2 Two programs funded under the Aboriginal education (Supplementary Assistance) Act 1989 are the Aboriginal education Strategic Initiatives program (AESIP) and within it the Aboriginal student Support and P arent Awareness Program (ASSPA).

a) Could the D epartm ent provide a listing of which schools received funding under ASSPA?

b) Could the D epartm ent provide a listing comparing when each school notified DEBT th a t they had set up their relevant committees under th e program to when the funding was issued to the committee? 6.2 What is the basis for funding at Permuway Koori College in

Newtown, NSW?

F i l l

F i l l

ESTIMATES COMMITTEE 'P - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to Dept/ Date Date to

Hansard Rec'd Senator Remarks

W hat grades of schooling exist there? W hat is the total num ber of students? W hat is the num ber of staff positions? W hat are the qualifications and rem uneration for each of

those staff?

Alston 7.1 Could a copy of the D epartm ent's Strategic Plan be forwarded? F I 10

Tierney

Tierney

7.2 In Report No 23 1991-92 the Auditor General states th a t he directed the D epartm ent's attention to several features of departm ental financial adm inistration. These are a) inadequate information supporting the processing of

payments, b) the absence of appropriate and current delegations of authority, c) a failure to ensure th a t reconciliations between

departm ental financial records and the D epartm ent of Finance ledger system are regularly performed, d) inadequate control of input to certain databases systems, e) a failure to ensure th at rigorous standards are m aintained

in the disbursem ent of, and in the accounting for public moneys; and 0 departures from statutory requirements. 7.2 Can the departm ent give specific examples of w hat the Auditor General was referring to in each of the points listed?

F112

F112

ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to D ept/ Date Date to

Hansard Rec'd Senator Remarks

Tierney

Tierney

Tierney

Tierney Tierney Tierney Tierney

Tierney Tierney

Tierney

7.2 Can the D epartm ent give examples of how each of these points have been addressed by the departm ent? 7.2 In the sam e report the Auditor General states th a t there has been improvements in financial m anagem ent in comparison to

previous years, and largely as a result of previous years recommendations by the Auditor general, but considers that DEBT still has a considerable way to go. Some of the measures taken by DEBT include a) work by the internal auditors, b) the establishm ent of a full tim e Task Force on Financial

Management, c) the engagem ent of a firm of Chartered Accountants to act as consultants and d) a steering Committee for th a t taskforce. 7.2 How m any internal audits have been conducted over the last

twelve months?

7.2 W hat recommendations have been made by them? 7.2 W hat action has been taken regarding those recommendations? 7.2 How many staff are there in the internal audit section? 7.2 How m any staff are there on the Task Force on Financial

Management?

7.2 W hat is each members qualification and remuneration? 7.2 W hat recommendations have this Task Force made since its inception? 7.2 W hat action has been taken regarding those recommendations?

F112

F112

F112

F112 F112 F112 F112

F112 F112

F112

ESTIMATES COMMITTEE 'P - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to D ept/ Date Date to

Hansard Rec'd Senator Remarks

Tierney

Tierney Tierney

Tierney

Tierney

Tierney

7.2 W hat is the total cost, by year, of the Task Force since its inception? 7.2 W hat was the cost of the external firm of Chartered Accountants? 7.2 The chartered accounting firm produced an accounting procedures

manual, w hat steps has the departm ent made to ensure th a t this m anual is adhered to? 7.2 The firm is still working on an accounting framework and training packages. When will this be finalised and w hat is the final cost

expected to be?

7.2 Why did DEBT feel it was necessary to have both the full time task force and the firm of Chartered Accountants working on the financial mismanagement problems of the Department?

7.2 Notes 19 & 20 of the 1990-91 DEBT Financial Statem ent relate to the allocation of $ 11,132,000 under the States G rants (General Revenue) Act 1985. The problem appears to be th a t the D epartm ent did not know where to allocate this receipt, and several days

passed before this was done resulting in a distortion to the accounts. The ANAO has recommended a review of receipting procedures.

a) Has this been carried out and w hat from has the review taken? b) The delay was due to the fact th a t D epartm ental procedures had not been carried out, why was this so? c) P a rt of the problem appears to be th a t the Departm ent accounts

on a cash basis.

F112

F112 F112

F112

F112

F112

ESTIMATES COMMITTEE 'P - APRIL 1992

Date to Dept/ Date Date to

Senator Program Subject Hansard Rec'd Senator Remarks

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Tierney 7.2 Is the D epartm ent considering a change to accrual accounting to

reflect a more accurate view of the D epartm ents accounts? If not why not?

F113

Tierney 7.2 H as the D epartm ent received recommendations suggesting such a change? If a move to accrual accounting is going to occur, when will it be implemented?

F113

Tierney 7.2 In relation to the paym ent of program benefits and payments,

the D epartm ent assumes eligibility and recovers payments when this is proven not to be the case. For this purpose Benefit Control U nits have been established in each State.

F113

Tierney 7.2 On w hat basis is the effectiveness of these U nits measured? F113

Tierney 7.2 Can the departm ent provide a breakdown of the Costs, by State,

of each of these Units?

F113

Tierney 7.2 The ANAO has indicated th a t an estim ate of debt levels and

recoveries for all of the D epartm ent's assistance programs be provided in future. W hat m easures has the D epartm ent taken to ensure th a t this will be provided?

F113

Tierney 7.2 Finance Regulation 45A(3)(b)(ii) applies to certain classes of paym ents based on com puter data and requires that system controls and accounting procedures m ust be approved by a delegate of the M inister for Finance. (The FINEST system controls the paym ent of

$9 billion of DEBT expenditure.)Has such approval been obtained?

F113

Tierney 7.2 The ANAO felt th a t a t the tim e of their audit these controls and

procedures were not adequate and could not ensure th a t payments are authorised, complete and accurate. This means a significant

F113

ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to Dept/ Date Date to

Hansard Rec'd Senator Remarks

Tierney

Tierney Tierney Tierney

risk of fraud or inaccurate payments. What steps have been taken by the D epartm ent have been taken to compensate for the weaknesses in FINEST controls? 7.2 During 1990-91 DEBT implemented a new personnel m anagem ent system called NOMAD. 7.2 W hat was the cost of the implementation of this system? 7.2 W hat was the reasoning for the implementation of this system? 7.2 The AN AO's audit of the controls of this system revealed:

* Secretary's directions to ensure proper internal controls, as required by Finance Direction ISA, had not been issued. * In many cases the d ata on the system was inaccurate. For

example 50% of payroll records a t Central Office were inaccurate in some way. * Delegations were not up to date * Reports on commencements, cessations and variations to

entitlem ent were not independently checked or authorised * Problems were identified in determ ining long service leave entitlem ents * There was an inability to process district allowance and

remote locality allowance * a formalised flexitime policy and procedures had not been implemented. The ANAO has recommended urgent action to correct these problems. What action has the departm ent taken?

F113

F113 F113 F113

ESTIMATES COMMITTEE 'P - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to Dept/ Date Date to

Hansard Rec'd Senator Remarks

Tierney 7.2 The ANAO has noted similar problems, ie "a failure of

basis payroll control routines" and urged immediate remedial actions to correct the problems in Audit Report No 22 1990-91 and again in Audit Report No 7 1991-92 as well as this occasion of Audit report No 23 1991-92. Tierney 7.2 Why has this negligence been allowed to continue over such a

long period when the Auditor General has so frequently pointed out the problem? Tierney 7.2 Is the reason for this failure due to the inadequacy of the

NOMAD system or are staff still attem pting to understand the problem? Tierney 7.2 Does DEBT regard the NOMAD system as a useful system?

If so, why is it not being used correctly?

Tierney 7.2 In relation to Property Operating Expenses the ANAO found

th a t inform ation on buildings and office space leased by the departm ent was often incomplete or out of date making it difficult to determ ine whether the am ounts billed and paid were accurate and valid.

Tierney 7.2 W hat explanation does the departm ent offer for this incom­

petence?

Tierney 7.2 W hat is the total value of rent and associated costs paid

by DEBT?

F113

F113

F113

F113

F113

F114

F114

ESTIMATES COMMITTEE T - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to D ept/ Date Date to

Hansard Rec'd Senator Remarks

Tierney

Tierney

Tierney

7.2 Given the finding by the ANAO it can be assumed th a t the departm ent cannot provide a full listing of properties or offices rented by DEBT and the am ount paid thereon.

7.2 How much of the total expenditure on property operating expenses can be verified by relevant documentation, eg rental agreem ents, leases etc?

7.2 The ANAO noted th a t there were discrepancies between the reports generated by the Program Administration and Statis­ tical System (PASS) and the relevant records m aintained in the Area Offices where Jobtrain programs were carried

out. The reason given for the this is programming errors in PASS. ANAO notes its concern as PASS is one of the major accounting systems for the Departm ent. The Dept, has appointed a task force to look into the problem of

the program m ing error.

F114

F114

28.4 28.4

Tierney 7.2 a) When did the Dept first become aware of the programming F I 14

problems with PASS? b) W hat other problems have these programming errors led to? c) W hat was the cost of the PASS system? d) When is the task force expecting to identify and correct

the problem?

ESTIMATES COMMITTEE *P - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to Dept/ Date

Hansard Rec'd Date to Senator Remarks

e) W hat other program s are administered through PASS? f) W hat is the composition of the task force? g) Can a figure be p u t on the discrepancies found between the PASS records and the Area office records? If so can

DEBT provide a list of those discrepancies?

Tierney 7.2 The ANAO notes th a t reconciliations between the Finance F I 14

Ledger System and FINEST, along with other com puter account­ ing systems of DEET's, were not regularly performed. This led to considerable effort a t year end to provide a reconciliation with which to prepare the DEBT financial statem ent.

Could the Dept provide: a) a breakdown of th e num ber of people who worked on the reconciliation, b) w hat position they held; and c) how long they worked on the reconciliation, thereby giving

an approxim ate cost of the labour involved in producing a reconciliation?

Tierney 7.2 In Audit report No 22 of 1991-92 the Auditor General makes a F I 14

scathing attack on the M anagement of Inform ation Technology within the Dept. H e found th a t it had not been effective, it had been jeopardised by the loss of 95% of its qualified staff, senior m anagem ent had not been involved in IT planning,

there had been delays in responding to the recommendations

ESTIMATES COMMITTEE 'P - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to Dept/ Date Date to

Hansard R ec’d Senator Remarks

Tierney

Tierney

Tierney

Tierney

Tierney

by the Jo in t Committee of Public Accounts and th a t there had been a substantial waste of public money (ie in excess of $615,000) in attem pting to acquire a human resource m anagem ent system. Several recommendations were made by

the ANAO.

7.2 How far has the Dept gone in implementing each of the 18 recommendations listed in Chapter 6.2 of audit report No 12 1991-1992 since th a t report was presented (dated 25 November 1991)?

7.2 Could the D epartm ent provide a break down of whether each regional office was over or under budget in 1990-91?

7.2 Could the D epartm ent provide a breakdown of whether each S tate division was over or under budget in 1990-91?

7.2 Can the Dept, provide figures as to how many of the current consultants to DEBT or ATSIC previously worked as employees? Can the Committee be informed as to w hat projects they are working on and w hat rem uneration they are receiving?

7.2 The Public Service Commission has found th a t DEBT spends 6.24% of its gross salary bill on staff training. Can the Dept provide a listing of the training courses

F114

F114

F114

F114

F114

ESTIMATES COMMITTEE 'P - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Department of Employment, Education and Training

Senator Program Subject

Date to D ept/ Date Date to

Hansard Rec’d Senator Remarks

Tierney

Tierney

a) provided by the Dept, and b) provided by the private sector, with associated costs?

7.2 Late last year DEBT downgraded it office in Dubbo which had only been established eighteen m onths previously. a) W hat was the basis for this decision? b) Will this in fact result in reduced services to

country areas? c) If not, w hat procedures are in place to ensure th a t rural areas are adequately serviced by the Dept?

7.5 Charging full fees for public education children of full fee paying tertiary students from overseas.

F115

F98

28.4 28.4

ESTIMATES COMMITTEE 'P - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Aboriginal and Torres Strait Islander Commission

Senator Program Subject

Date to Dept/ Date Date to

Hansard Rec'd Senator Remarks

Short Gen W hat grants have been made to trade unions and community groups 11.3

since 1 July 1991 to date? In each case: (a) W hat is the nam e of the trade union or community group which received the funds?

(b) W hat was the am ount of the grant?

(c) W hat was the purpose of the grant?

(d) U nder w hat program was the grant made?

O'Chee Gen With reference to the United N ations Conference on the Environm ent and Development (or the "Earth Summit") to be held in Rio de Janeiro from June 1 to June 12, 1992: 12.3

a) W hat resources have been used, or have been budgeted for use, for any purpose relating to this Conference? Please give details of: (i) relevant classifications of staff involved

(ii) approxim ate time taken, and salaries paid, including overtime (iii) consultants used, duration and value of contract (iv) details and descriptions of staff and consultant's contributions b) Which staff, if any, will be attending the Conference either

as an official delegate, observer, or support staff? c) W hat will be the cost of their attendance, including travel cost and travel allowance payable?

P arer Gen a) Provide the details of the capital status of all photocopy machines. 27.3

Are they: -hired?

ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Aboriginal and Torres Strait Islander Commission

Subject

Date to Dept/ Date Date to

Hansard Rec'd Senator Remarks

-installed free of charge? -other agreements? b) When are machines replaced? c) W hat is the criteria for replacement/selection?

d) Should photocopy facilities installed in D epartm ents be Amended 30.1

subject to review under Finance Direction 25F? -If not, why not? e) Is the D epartm ent aw are of facilities management? Is this an option for review of photocopy facilities?

Tambling 1.2 Socio-Economic Development 24.3 2.4 2.4

1. W hat funding previously given to the failed Ju m k u rak u rr Aboriginal Resource Centre, has been transferred to the Julakikari Council, in 1991/1992? 2. W hat services previously offered by Ju m k u rak u rr been

taken up by Julakikari Council? 3. Is ATSIC m onitoring the new structure in place for the Julakikari Council to adm inister outstation services to Barkly communities? 4. Have any services to Aboriginal communities been discontinued

or disadvantaged?

Tambling 1.2 Socio-Economic Development Sent to DEBT 1.4

1. W hat are the outcomes of the workshop held in Darwin in October 1991 on the Tourism Employment Strategy? 2. Can details be provided regarding the training needs survey for the N T tourism industry?

ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Aboriginal and Torres Strait Islander Commission

Senator Program Subject

Date to Dept/ D ate D ate to

Hansard Rac'd Senator Remarks

3. W hat were the costs of the survey (Commonwealth/State)? 4. Can a copy of the report entitled Aboriginal People and Tourism in the N orthern Territory - T raining Needs Survey be provided to the Committee?

5. Have any of the recommendations and initiatives contained within this report been implemented?

Tambling

Tambling 1.2.5

Socio-Economic Development 1. W hat is the current status of the Ju m k u rak u rr Aboriginal Resource Centre Aboriginal Corporation? 2. W hat has been the financial loss to ATSIC and the Commer­

cial creditors of Jum kurakurr? 3. When is it anticipated th a t the Liquidator will complete the 'winding-up' of this organisation? 4. Can a copy of the prelim inaiy report to creditors on the

financial position of Ju m k u rak u rr Aboriginal Resource Centre, be made available to the committee? CDEP 1. W hat discussions and consultations have taken place with

the N gukurr community in respect of CDEP? 2. When is it anticipated that the N gukurr CDEP program will recommence? 3. W hat training, support and resources are being provided by

the K atherine regional ATSIC office to ensure th a t a similar situation does not re-occur? 4. W hat involvement has been sought from the Mulgan Regional

24.3 2.4 2.4

24.3 2.4 2.4

ESTIMATES COMMITTEE rF - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Aboriginal and Torres Strait Islander Commission

Senator Program Subject

Date to Dept/ Date

Hansard Rec'd Date to Senator Remarks

Tambling

Tambling

Tambling

1.2.5 CDEP 1.

24.3

H ealth 1 .

Have all outstanding financial statem ents, including the 1990/91 audit for the Waanyi G arraw a Aboriginal Corporation, been completed and submitted to ATSIC? H as funding arrangem ents to this Corporation resumed? If not,

when is it anticipated th a t it will? H as the review of the CDEP project been completed? If so, can a copy of the review be made available to the committee?

W hat action has been taken to rectify the deficiencies identified in the Pannel K err F orster review of Anyingingi? H as the final report of the evaluation of health services provided by the Corporation been completed and received by the ATSIC?

Can a copy of the health evaluation be made available to the committee?

Law and Justice W hat funding in 1991/92 financial year has been provided or allocated to the Central A ustralian Legal Aid Service? W hat is the status of audit reports for operations at

CAALAS since 1989/90? H as ATSIC investigated reports of alleged abnormal appropria­ tions of $50,000 by CAALAS - January 1991? Are the legal and adm inistrative functions of CAALAS operating

satisfactorily?

24.3

24.3

ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Aboriginal and Torres Strait Islander Commission

Senator Program Subject

Date to Dept/ Date

Hansard Rec'd Date to Senator Remarks

Tambling

Tambling

Housing and Rental Accommodation

1. W hat is the Community-by-Community distribution of the $19 million in funding allocated to the N orthern Territory for Aboriginal rental housing in this financial year? 2. W hat is the ATSIC housing program (1991/1992) for com­

m unities in the N orthern Territory? 3. Have any new policies relating to design criteria and rental recoveries been implemented? 4. W hat rents have been received for properties in communities

in the last financial year? 5. W hat are the rental arrears?

Community Infrastructure - Town Camps I refer to the article in the Centralian Advocate (10 March 1992), regarding the Anthepe town camp located South of Alice Springs, which w ent without power for five weeks after an accident involving

a car and a power m eter on 1st February 1992. 1. W hat funding has been provided by ATSIC for the provision of public utilities to Anthepe? 2. Is ATSIC aw are of any pending insurance claims in relation

to this accident?

3. If so, will the departm ent be seeking to intervene to

recover costs of the damage caused by the accident? 4. Was ATSIC involved in the contract let for $50,000 by Tangentyere Council?

Sent to DHH&CS 30.3 2.4

24.3

ESTIMATES COMMITTEE 'F - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Aboriginal and Torres Strait Islander Commission

Senator Program Subject

Date to Dept/ Date Date to

Hansard Rec'd Senator Remarks

Tambling 2.7 H as an audit report recently been received in respect of the

Amoonguna community in Central Australia?Does this m atter relate, am ongst other things, to some five years of outstanding audit reports for th a t community?

Tambling 2.7 Copy of application for grant of $200,000 to Jawoyn Association secretariat

Tambling 2.7 How much of the grant has been spent on secretarial services and ren t support assistance as opposed to direct assistance to Aboriginal people or communities under the auspices of the Jawoyn Association?

Tambling 2.7 W hat support has ATSIC given to the submission for an aged-care facility by the A rrem te Council of central Australia?

Tambling 2.7 W hat has been the funding from ATSIC in the current financial year for the Tangentyere Council of Alice Springs?

Is there any review of those particular programs?

F101

F103

F103

F104

F104

F104

Tambling 3.2 A rt and Culture 24.3

1. W hat funding has been provided to the Aboriginal Cultural Foundation in 1991-92? 2. W hat funding has been provided to Monash University for Dr Alice Moil for the production of an educational package

in Music and Dance in traditional Aboriginal Culture?

2.4 2.4

ESTIMATES COMMITTEE 'P - APRIL 1992

Questions on Notice requested prior to/during the hearings for the Aboriginal and Torres Strait Islander Commission

Senator Program Subject

Date to Dept/ Date Date to

Hansard Rec'd Senator Remarks

Tambling 3.3 Broadcasting and Communications 1. W hat funds have been expended, and w hat results achieved in the program Media Monitoring bv Aboriginal Media Resource Groups ($100,000 allocated)? 2. W hat funds have been expended and w hat results achieved in

the Community Speakers Program ($400,000 allocated)? 3. Who have been the prom inent people engaged and at w hat cost "to assist in the process of changing perceptions about our indigenous people and provide basic framework for Attitudinal change"?

Tambling 3.3 Broadcasting and Communications 1. H as the Commission approved any funding to enable the establish­ m ent of an independent National Aboriginal and Islander Media Authority?

Tambling 3.3 Broadcasting and Communications 1. W hat have been the results of the investigation into the fire at CAAMA FM Radio Station in Alice Springs, NT? 2. Following the m anagem ent review of CAAMA in 1991 -

W hat adm inistrative and financial changes have been implemented?

2.4 2.4

2.4 2.4

2.4 2.4

INDEX TO H ANSARD

TH URSDAY, 2 APRIL 1992

341

DEPARTMENT OF INDUSTRIAL RELATIONS

General Questions

Contract Shearers F2 - F6

National Farmers Federation F3

Audit Report No 23 of the National Audit Office Coal-mining and stevedoring industries, unpaid accounts F6 - F7

PROGRAM 1 - INDUSTRIAL RELATIONS, WAGES, INCOMES AND LABOUR MARKET DEVELOPMENT

Subprogram 1.2: Industrial Relations Development

Allocation of trade union funds F7, F ll

Union amalgamation F8

ILO protocol F8 - 10

Supervision of funding F10

Funding levels F12 - 16

Donations to political parties F15 - 16

Goinan best practice grant F17

Best practice companies F20

Subprogram 1.5: Australian Industrial Relations Commission and Australian Industrial Relations Registry

AIRC salaries F21

Superannuation contributions F22 - 25

Black bans F26

Subprogram 1.7: Australian Trade Union Authority

Training program F27

PROGRAM 2 - AUSTRALIAN GOVERNMENT EMPLOYMENT: REMUNERATION, STRUCTURES A N D CONDITIONS

Subprogram 2.1: Australian public service pay and structures

Redundancy F27 - 34

Superannuation F28 - 34

343

PROGRAM 3 - CORPORATE MANAGEMENT AND SUPPORT

Subprogram 3.3: Policy coordination and communication

ILO Convention Australian benefits from ILO

F34 F35

DEPARTMENT OF PRIMARY INDUSTRIES AN D EN E R G Y

PROGRAM 1 - INDUSTRIES DEVELOPMENT

Sub-program 1.1: Livestock and pastoral

BTEC program F38

Wool promotion F38

TB F39

Legal costs F39

Animal health laboratory AAHL F40

Wool payments F40

Live sheep F41

Sub-program 1.2: Crops

Tobacco F41

Wheat payments by Iraq F42

Potato cyst nematodes F42

Sub-program 1.3: Fisheries

Surveillance of Australian fishing zone F43

AFMA money transfers F44

AFMA staffing F45

Northern Prawn voluntary adjustment F45, 47

Southern Shark Fishery F45

The case of Mr and Mrs Holmes F46 - 47

Fishing Industry Summit F48

Catch quotas F49

Gill netting limits F50

Sub-program 1.4: Petroleum

Pipeline Authority reform F50

Sub-program 1.5: Coal and minerals

Legal services F51

Payments in law action F52

PROGRAM 2 - INDUSTRY SUPPORT SERVICES

Sub-program 2.1: National Resources Management

Crop planting scheme

345

Household support payments F56

Jobsearch F56 -58

Rural counselling services F58

Sub-program 2.3: Quarantine and Inspection

Meat substitution F59

Redundancy F60

Legal services F60

Meat inspection F61

Exotic species in ballast F62

Bean seed F63

Mushrooms F64

Poultry imports F64

Alpaca imports F65

PROGRAM 3 - RESEARCH AND ASSESSMENT

Sub-program 3.1: Geoscience research and resource management

Rent increases F65

PROGRAM 4 - CORPORATE MANAGEMENT AND POLICY

Sub-program 4.1: Corporate policy

Losses through Iraqi sanction F67

Sub-program 4.2: Corporate management

Rent review F67

346

DEPARTMENT OF EMPLOYMENT, EDUCATION AN D TRAINING

GENERAL QUESTIONS

Additional expenditure elements Auditor-General's report 1991 Auditor-General's report dealing with FINEST Industry training councils

Rural training councils Financial accounting systems Problems with training programs

F71 F72 F72

F72 F74 F75

PROGRAM 1 - SCHOOLS

Sub-program 1.1: Participation, retention and general competencies

Australian student prize F76 -77

Sub-program 2.1: Higher Education system

Breakdown of running costs F78

Overseas students F78

Funding for Aboriginal students F79

PROGRAM 3 - SKILLS FORMATION

Sub-program 3.1 V ocational and Further Education

TAFE sector students F79

Sub-program 3.2: Entry level training

Apprentice and trainee recruitment F80

PROGRAM 4 - LABOUR MARKET PROGRAM ASSISTANCE

Sub-program 4,1 Employment Access

Jobtrain program F80

347

Sub-program 4.2: Community-based strategies

Skillshare F81

Self-employment assistance program F82

in the Northern Territory F82

among Aboriginal groups F83

Sub-program 4.3: Labour adjustment assistance

Assistance to workers in country towns and railway workers F83

Sub-program 4.4: Aboriginal employment

Administration of the TAP program F84

PASS system F85

PROGRAM 5 - LABO UR MARKET OPERATION

General questions

Break-down in running costs F85

Industries service branch telephone survey F86

PROGRAM 6 - EDUCATION ASSISTANCE AND INCOME SUPPORT

Sub-program 6.1: Education income support

Austudy payments F86

Auditor-General's statement in annual Report F87

Aboriginal education strategic initiatives program F87-88 Abstudy F88-95

ANAO report No 14 F90-91

computer systems F92

overpayments F93-95

Sub-program 6.1: Education Income Support

Austudy F95-96

Sub-program 6.2: Aboriginal Education

Aboriginal student and parent awareness scheme F97

Aboriginal tutorial assistance scheme F97

Sub-program 7.5: International participation

Dependents of overseas students F98

PROGRAM 8 - ABORIGINAL AND TORRES STRAIT ISLANDER AFFAIRS

General questions

Audit review F99

ANAO audit report F100

Administration of ADSIC in Katherine F100

Acquittal of grants administered by ADSIC F101

Performance indicators F102

Jawoyn Association F102

Nungalinya College F103

Administration of CDEP in Northern Territory F104-105

Arremte Council F 106

Training for Aboriginals Program F 107

Administration of community development and project scheme F 108

3 5 0

THE SENATE

ESTIMATES COMMITTEE F

MINUTES OF PROCEEDINGS

N O .l

Wednesday, 1 April 1991

1. MEETING: The Committee met in private session at 3.15pm in Committee Room 1S6. The Chairman, Senator Beahan, took the Chair.

2. CONSIDERATION OF AUDIT OFFICE REPORT NO.23: The Committee considered the report in relation to the Department of Employment, Education and Training and received a briefing from the National Audit Office.

3. ADJOURNMENT: The Committee adjourned at 4.00pm.

4. ATTENDANCE: Senators Beahan (Chairman), Chapman, Crane, Sherry, McKieman and Tierney.

CONFIRMED

Michael Beahan Chairman

351

THE SENATE

ESTIMATES COMMITTEE F

MINUTES OF PROCEEDINGS

NO. 2

Thursday, 2 April 1992

1. MEETING: The Committee met in public session at 1.50pm in the Main Committee Room. The Chairman, Senator Beahan, took the Chair.

2. OPENING STATEMENT BY CHAIRMAN: The Chairman reported the Resolution of the Senate, dated 5 March 1992, relating to the consideration of particulars of proposed additional expenditure for 1991-92 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 1991-92: PORTFOLIO OF INDUSTRIAL RELATIONS:

In attendance: Senator the Hon Peter Cook, Minister for Industrial Relations and Minister Assisting the Prime Minister for Public Service Matters. The Minister was accompanied by the following officers:

Department o f Industrial Relations -

Mr R. Marshman, Deputy Secretary Ms M. Stanton, First Assistant Secretary, Corporate Development Division Ms L. Tacy, First Assistant Secretary, Industrial Relations Development Division Mr M. Coghlan, First Assistant Secretary, APS Pay and Structures Division Mr R. Hoy, First Assistant Secretary, APS Remuneration and Conditions Division Mr R. Stewart-Crompton, First Assistant Secretary, Legal Services Group Mr B. Yates, First Assistant Secretary, Industrial Relations Policy Division Mr T. Munyard, Assistant Secretary, Resources (Financial) Branch Ms H. Campbell, Assistant Secretary, Industry Development No. 3 Branch Mr N. Jacobs, Assistant Secretary, Development Services Branch Mr S. Kibble, Industrial Relations Officer, Industrial Relations Development Division.

Affirmative Action Agency: Ms V. Pratt, Director Ms M. Hill, Deputy Director

Australian Industrial Relations Commission and Industrial Relations Registrar: Mr M. Kelly, Executive Director, Corporate Services Mr J. Leydon, Director, Administration

National Occupational Health and Safety Commission: Ms M. Gallagher, Director, External Relations Mr F. Maestrelli, Manager, Finance and Services

Australian National Trade Union Training Authority: Ms K. Wood, Executive Officer Mr T. Prabhakaran, Finance Officer

Remuneration Tribunal: Mr T. Kenna, Executive Officer

COMCARE: Mr R. Knapp, Deputy Chief Executive Officer Mr P. Pharoah, General Manager, Resource Management Division

Department o f Finance: Ms J. Pettit, Senior Finance Officer Mr G. Hehir, Chief Finance Officer Mr D. Weiss, Finance Officer

4. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1991-92: PORTFOLIO OF PRIMARY INDUSTRIES AN D ENERGY:

In attendance: Senator the Hon Peter Cook, Minister for Industrial Relations and Minister Assisting the Prime Minister for Public Service Matters. The Minister was accompanied by the following officers:

Department of Primary Industry and Energy -

Mr P.T. Core, Executive Director, Corporate Development Professor R.W.R. Rutland, Executive Director, Bureau of Mineral Resources Dr B.S. Fisher, Executive Director, Australian Bureau of Agricultural and Resource Economics

Mr W. G. McGregor, First Assistant Secretary, Livestock and Pastoral Division Mr T. Mackey, First Assistant Secretary, Crops Division Mr B. Wonder, First Assistant Secretary, Land Resources Division Mr J. Wicks, First Assistant Secretary, Energy Division

Mr A. Newton, First Assistant Secretary, Rural Policy Division Mr M. Lee, Acting First Assistant Secretary, Corporate Affairs Division

353

Mr R. Alderson, Acting First Assistant Secretary, Petroleum Division Mr G.C. Gorrie, Acting Managing Director, Australian Fisheries Management Authority Dr G. Wilson, Director, Animal Resources Branch, Bureau of Mineral Resources Mr B. Scott, Rural Adjustment Section, Agriculture and Forestry Secretariat Mr K. Bray, Mining Industry Policy Branch, Coal and Minerals Division Mr B. Loudon, Chemical Residue Unit, Bureau of Rural Resources Mr J. A Cahill, Head, Business Management Branch, Bureau of Mineral Resources Mr R.N. Gillingham, Manager, Group Support Unit, Headquarters Group Ms A McGovern, Director, Finance Branch Mr M. Dolan, Finance Branch Mr G. Shain, Acting Manager, Group Support Group, Minerals and Fisheries Division Mr J. Picot, Manager, Corporate Management Section, Bureau of Rural Resources Mr. I. Davis, Acting Senior A sistant Director, Animal Quarantine and Exports Branch, Australian Quarantine Inspection Service Mr G. Flaherty, Finance Manager, Australian Quarantine Inspection Service Mr B. Sandison, Resource Manager, Agriculture and Veterinary Chemicals Mr C. Willoughby, Resource Manager, Livestock and Pastoral Division Mr D. Barnes, Asistant Secretary, Fisheries Policy Branch Mr A. Byrne, A sistant Secretary, Corporate Policy Division Mr R. Bryant, A sistant Secretary, Finance Branch Mr S.E. Hearn, Asistant Secretary, Coal Branch, Coal and Minerals Division Mr J. Hartwell, Asistant Secretary, Mining Industry Policy Branch, Coal and Minerals Division Mr D.G. Gascoine, Director, Food Inspection Division, Australian Quarantine Inspection Service Mr M. Catley, Director, Quarantine Division, Australian Quarantine Inspection Service Mr P. Bisset, Director, Business Services Division, Australian Quarantine Inspection Service Mr R.N. Rawson, Asistant Secretary, Test Site Management Branch Mr R.A. Calder, Asistant Secretary, Agriculture and Forestry Secretariat Mr J. Potter, A sistant Secretary, Information Technology Branch Dr G.Hooper, Director, Australian Plague Locust Commission Mr J. Owusu, Chemicals Coordinator, Agriculture and Veterinary Chemicals

Department o f Finance: Mr D. Palmer, Senior Finance Officer Mr A. Cockinos, Finance Officer

5. PARTICULARS OF PROPOSED ADDITIONAL EXPENDITURE 1991-92: PORTFOLIO OF EMPLOYMENT, EDUCATION AND TRAINING:

In attendance: Senator the Hon Peter Cook, Minister for Industrial Relations

354

and Minister Assisting the Prime Minister for Public Service Matters. The Minister was accompanied by the following officers:

Department o f Employment, Education and Training -

Mr N. Johnston, Deputy Secretary Mr P. Hartigan, Acting Deputy Secretary

Schools and Curriculum Division: Ms C. Wildermuth, Director, Finance & Legislation Section, Resources & Consultations Branch

Higher Education Division: Mr M. Gallagher, First Assistant Secretary Mr J. Parr, Assistant Secretary, Research Policy & Grants Branch Ms C. McNamara, Assistant Secretary, Co-ordination Branch

Mr S. Meredith, Director, Payments Administration Section, Co-ordination Branch

Vocational Education and Training: Mr T. Greer, Assistant Secretary, Industry Training Programs Branch Mr D. Brewster, Assistant Secretary, TAPE & Training Infrastructure Branch

International Division: Mr J. Muir, First Assistant Secretary Ms L. Lipp, Assistant Secretary, International Policy Branch

Employment Programs and Services Division: Mr I. Campbell, First Assistant Secretary Mr A. Mawer, Principal Adviser Mr D. Power, Assistant Secretary, Employment Access Branch Ms V. Tripp, Assistant Secretary, Community Strategies Branch Mr D. Murphy, Director, Work Experience Mr J. Kennedy, Director, SkillShare

Ms L. Bannermann, Assistant Secretary, Network Support Branch

Employment Programs and Services Division: Mr I. Campbell, First Assistant Secretary Mr A. Mawer, Principal Adviser Ms L. Bannermann, Assistant Secretary, Network Support Branch

Student and Aboriginal Programs Division: Mr J. McCarthy, Principal Adviser Mr W. Daniels, First Assistant Secretary Mr R. Harvey, Assistant Secretary, Student Services Branch

Ms R. Doobov, Assistant Secretary, Student Assistance Support Mr D. Ware, Director, Student Programs Section, Aboriginal Education Branch

355

Ms J. Jambor, Aboriginal Education Branch

Economic and Polity Analysis Division: Ms C. Coleman, Acting Assistant Secretary, Women's Policy, Income, Support & Participation Branch

Management Division: Mr W. Pritchard, Acting Assistant Secretary, Resources Management Branch Ms S. Kestevan, Assistant Secretary, Management Infrastructure Branch Ms J. Ledgar, Assistant Secretary, Risk Management & Communications Branch Mr G. Lillicrap, Chief Accountant Mr P. Nicholl, Director, Internal Audit

International Division: Mr J. Muir, First Assistant Secretary Ms L. Lipp, Assistant Secretary, International Policy Branch

NBEET: David Fisher, Director

Systems Division: Mr J. Burston, Assistant Secretary, Business & Planning Branch

Policy Secretariat: Mr R. Peacock, Acting Principal Adviser

Youth Bureau: Mr N. Harrigan, Assistant Secretary

Department o f Finance: Mr W. Burmester, Assistant Secretary, Finance Ms P. Bergin, Chief Finance Officer

Aboriginal and Torres Strait Islander Commission Dr P. Shergold, Chief Executive Officer Mr M. Dillon, Acting Deputy Chief Executive Officer Mr R. Morony, Acting General Manager, Policy Development Mr R. Beadman, General Manager, Corporate Services Mr G. Menham, General Manager, Strategy Development Unit Mr B. Miller, Director, Office of Evaluation and Audit Mr M. Stewart, Acting General Manager, Policy Co-ordination Mr J. Eldridge, Assistant General Manager, Finance Mr P. Goggin, Assistant General Manager, Community Support Policy Mr P. Schniener, Assistant General Manager, Social Support Policy Mr I. Myers, Assistant General Manager, Office of Aboriginal Health Mr P. Buckskin, Acting Assistant General Manager, Economic Initiatives Ms M. McDonald, Acting Assistant General Manager, Land Management

Mr S. Hoffman, Acting Assistant General Manager, Regional Co-ordination

Aboriginal and Torres Strait Islander Commerical Development Corporation Mr C. Foord, General Manager Mr B. Kimmings, Financial Controller

Aboriginal Hostels Limited Ms E. Barolits OAM, General Manager Mr J. Rooks, Assistant General Manager and Company Secretary Mr K. Clarke, Assistant General Manager, Operations

Australian Institute o f Aboriginal and Torres Strait Islander Studies Dr W. Jonas, Principal Mr J. Ramsay, Deputy Principal Mr D. Firth, Finance Officer

6. ADJOURNMENT:

The Committee adjourned at 1.14 am, 3 April 1992.

7. ATTENDANCE: Senators Beahan (Chairman), Panizza, Archer, Boswell, McKieman, Sherry, Chapman, Crane, Newman, Kemp, Tierney, and Tambling also participated in the Committee's proceedings.

CONFIRMED

Michael Beahan Chairman

357

THE SENATE

ESTIMATES COMMITTEE F

MINUTES O F PROCEEDINGS

NO.3

Tuesday, 28 April 1992

1. MEETING: The Committee met in private session at 6.30pm in the Official's Area adjacent to the Senate Chamber. The Chairman, Senator Beahan, took the chair.

2. CONFIRMATION OF MINUTES: The minutes of meetings nos.l and 2 were confirmed.

3. COMMITTEE REPORT: The Committee considered the Chairman's draft report and agreed that the report, as amended, be adopted and tabled in the Senate on 29 April 1992.

4. CONFIRMATION OF MINUTES: The Minutes of meeting no.3 were confirmed.

5. ADJOURNMENT: The Committee adjourned at 6.40pm.

6. ATTENDANCE: Senators Beahan(Chairman), Chapman, Crane, McKiernan, Panizza and Tierney.

CONFIRMED

Michael Beahan Chairman

358

THE PARLIAMENT O F THE C O M M O N W E A LTH O F AUSTRALIA

PARLIAMENTARY PAPER No. 244 of 1992 ORDERED TO BE PRINTED

ISSN 07)7-4181