Legislative Assembly 8379 22 June 1994

WEDNESDAY, 22 JUNE 1994 From Mr Lingard (1 247 signatories) praying that the Parliament of Queensland will instigate a referendum for the return of capital and corporal punishment. Mr SPEAKER (Hon. J. Fouras, Ashgrove) read prayers and took the chair at 10 a.m. Prince Charles Hospital From Mr T.B. Sullivan (22 486 DISTINGUISHED VISITOR signatories) praying that the proposal to relocate the Prince Charles Hospital cardiothoracic unit to Mr SPEAKER: Order! I wish to advise the the Royal Brisbane Hospital be rescinded. House that Ann Levy, a member of the Upper House in South Australia and shadow Minister for Petitions received. Consumer Affairs, is in the Speaker's Gallery. Honourable members: Hear, hear! STATUTORY INSTRUMENTS In accordance with the schedule circulated by the Clerk to members in the Chamber, the PAPER TABLED DURING RECESS following documents were tabled— Mr SPEAKER: Order! I have to advise the Casino Control Act— House that a report was tabled during the recess Rules of Casino Games Amendment Notice as outlined on the Daily Program circulated to (No. 1) 1994, No. 205 members in the Chamber. Recreation Areas Management Act— Recreation Areas Management Amendment PETITIONS Regulation (No. 1) 1994, No. 203. The Clerk announced the receipt of the following petitions— PAPER The following paper was laid on the table— Sentencing Procedures Minister for Family Services and Aboriginal and From Mr Lester (12 signatories) praying Islander Affairs (Ms Warner)— that appropriate steps be taken to ensure that Queensland’s Forward Plan on Ageing. prisoners serve the full sentence handed down by the courts upon a conviction. LEAVE TO MOVE MOTION WITHOUT A similar petition was received from Mr NOTICE Turner (8 signatories). Mr BORBIDGE (Surfers Paradise— Leader of the Opposition) (2.34 p.m.): I seek Capital Punishment leave to move a motion without notice regarding the stealth tax. From Mr Perrett (91 signatories) praying Question—That leave be granted—put; that capital punishment be reintroduced for and the House divided— persons convicted of murder, particularly the murder of children, and that if not reintroduced, AYES, 34—Beanland, Borbidge, Connor, Cooper, prison terms imposed for such crimes be served Davidson, Elliott, FitzGerald, Gamin, Gilmore, in full. Goss J. N., Grice, Healy, Hobbs, Horan, Johnson, Lester, Lingard, Littleproud, McCauley, Malone, Mitchell, Perrett, Quinn, Rowell, Santoro, Sheldon, Subcontractors and Suppliers Simpson, Slack, Stephan, Stoneman, Veivers, Watson Tellers: Springborg, Laming From Mr Campbell (13 signatories) praying that the Parliament of Queensland will NOES, 47—Ardill, Barton, Beattie, Bennett, Bird, protect the rights of subcontractors and Braddy, Briskey, Budd, Burns, Campbell, Casey, suppliers by amending the Legal Aid Act, praying Comben, Davies, De Lacy, Dollin, Edmond, Elder, for the establishment of an insurance fund to Fenlon, Foley, Gibbs, Goss W. K., Hamill, Hayward, guarantee full payment for goods and services Hollis, Mackenroth, McElligott, McGrady, Nunn, and praying that the Companies Act, which Nuttall, Pearce, Power, Purcell, Pyke, Robertson, shields directors from litigation, be amended. Robson, Rose, Spence, Sullivan J. H., Sullivan T. B., Szczerbanik, Vaughan, Warner, Welford, Wells, Capital and Corporal Punishment Woodgate Tellers: Pitt, Livingstone 22 June 1994 8380 Legislative Assembly

Resolved in the negative. NOES, 48—Ardill, Barton, Beattie, Bennett, Bird, Braddy, Briskey, Budd, Burns, Campbell, Casey, Comben, Davies, De Lacy, Dollin, Edmond, Elder, PRIVILEGE Fenlon, Foley, Gibbs, Goss W. K., Hamill, Hayward, Speaker's Ruling Hollis, Mackenroth, McElligott, McGrady, Milliner, Mrs SHELDON (Caloundra—Leader of Nunn, Nuttall, Pearce, Power, Purcell, Pyke, the Liberal Party) (2.41 p.m): Mr Speaker, I rise Robertson, Robson, Rose, Spence, Sullivan J. H., on a matter of privilege. During the sittings of this Sullivan T. B., Szczerbanik, Vaughan, Warner, House since the Appropriation Bill was Welford, Wells, Woodgate Tellers: Pitt, Livingstone introduced on 31 May, you have allowed many Resolved in the negative. questions relating to the Budget to be asked and answered. As a member of Parliament—— PRIVILEGE Mr SPEAKER: Order! This is not a matter Mr G. Abbott of privilege. Is it related to my ruling about the questions? Mrs SHELDON (Caloundra—Leader of the Liberal Party) (2.48 p.m.): I rise on a matter of Mrs SHELDON: No. privilege. I draw your attention to a question Mr SPEAKER: Order! All right. without notice I asked—— Mrs SHELDON: As a member of Mr SPEAKER: Order! It is not a matter of Parliament, I find it outrageous that you have privilege. ruled against questions relating to the Mrs SHELDON: Mr Speaker, I seek your Government's imposing unfair performance ruling on this. dividends on council borrowings while allowing Government and non-Government members to Mr SPEAKER: Order! The previous ask questions relating to almost every other matter was not a matter of privilege. aspect of the Budget and the Estimates. In light Mrs SHELDON: It is not related to that at of your previous rulings, I believe it is a breach of all. privilege for Opposition members to be denied Mr SPEAKER: Order! That was not a this line of questioning, and I ask for your ruling matter of privilege all the same. I would like to on this matter. hear this. I hope it is a matter of privilege that the Mr SPEAKER: Order! That is not a matter honourable member is raising. of privilege. Is there any other business? Mrs SHELDON: I ask for your ruling, Mr Mr FITZGERALD: I move— Speaker. I draw your attention to a question "That so much of the Standing Orders without notice I asked the Minister for Justice and be suspended as to allow the motion of Attorney-General last Friday, 17 June, in regard dissent against the Speaker's ruling to be to whether or not indemnity was granted to debated forthwith so that this matter can be Glenn Abbott. I also draw your attention to the decided by the House." fact that the Minister stated he could not answer the question, and he asked for the question to Mr SPEAKER: Order! That is out of order. be placed on notice. The member cannot move that procedural motion. The Minister, later that day, then used a radio interview to answer the question before his answer could be placed on the notice paper or, LEAVE TO MOVE MOTION WITHOUT indeed, given to me. I feel that this is a serious NOTICE impediment to my position as a member of Mr FITZGERALD (Lockyer) (2.42 p.m.): I Parliament, when a question I have asked has seek leave to move a motion without notice. been answered on the public airwaves before that answer has been provided to me or to this Question—That leave be granted—put; House. I ask for your ruling on this matter, Mr and the House divided— Speaker. AYES, 34—Beanland, Borbidge, Connor, Cooper, Mr SPEAKER: Order! I have already Davidson, Elliott, FitzGerald, Gamin, Gilmore, advised members recently in the House of the Goss J. N., Grice, Healy, Hobbs, Horan, Johnson, process for dealing with matters of privilege. That Lester, Lingard, Littleproud, McCauley, Mitchell, is the proper process we should follow. There Perrett, Quinn, Rowell, Santoro, Sheldon, Simpson, was a recommendation of a Select Committee of Slack, Stephan, Stoneman, Turner, Veivers, Watson Privileges with regard to that. I suggest that that Tellers: Springborg, Laming is the way we should go. The Deputy Leader of Legislative Assembly 8381 22 June 1994 the Coalition should write to me about that that there was no such indemnity granted, matter. considered or even applied for. The honourable Any member, of course, can rise at any time member was on another fishing expedition, and in this House and refer matters of privilege to the she has got it wrong again. Privileges Committee, and that is for the House to decide. I am not going to be ruling on matters 2. Electricity Tariffs of privilege on my feet like that, because that is a process I am not going to use. Mr ELLIOTT asked the Minister for Minerals and Energy— Mrs SHELDON: I ask then that this be referred to the Privileges Committee. "With reference to the capital and tariff disparities between electricity supply in the Mr Mackenroth interjected. North West electricity area along the Mrs SHELDON: The honourable member Southern Queensland border, as compared is a joke. to the SWQEB area and to the ongoing Mr SPEAKER: Order! The question is negotiations between Queensland that the matter be referred to the Privileges authorities and the North West Electricity Committees. Those of that opinion say "Aye", to Authority— the contrary "No"; I think the "Ayes" have it. Will he use the equalisation of tariffs or some other instrument to rectify this disparity, thereby removing the disincentive QUESTIONS UPON NOTICE for value added industries to locate in this 1. Mr G. Abbott area and rectify the inequitable treatment of Mrs SHELDON asked the Minister for Queenslanders in this region?" Justice and Attorney-General and Minister for the Mr McGRADY: I acknowledge that Arts— negotiations are continuing between the "I refer to Glenn Abbott also known as Queensland Electricity Commission and the New Glenn Woodcock, the man who after South Wales North West Electricity authority, months of continually harassing threatening which supplies power to some 4 000 to kill Sherilee Teague was never charged Queenslanders around the Goondiwindi area. with stalking, but was yesterday fined a There is even the possibility that Queensland will paltry $400 for breaking a domestic violence take that franchise back from New South Wales order— and supply the area with a new line from Chinchilla. However, in the interests of I table a courtroom transcript Queensland consumers, that is not a sure documenting Police Operation Ginger, in process and many factors must be considered which Abbott who is referred to only as a before that action will be taken. “third person”, assisted a police undercover officer and Barry Wayne Hartigan to steal For the moment, we must deal with the truck tyres from a warehouse. Hartigan was situation as it stands. Because power costs in convicted and jailed in relation to those New South Wales are higher than those in offences: Abbott was not even charged— Queensland, we provide a rebate of about half a million dollars per year, deducted from the bills of Given that indemnity from prosecution the people in the franchise field. I acknowledge can only be granted to police informers in that due to the complexity of the calculations, writing by the Attorney-General, I ask— occasionally a customer can slip through that net. Was such indemnity ever granted to Mr Elliott would be aware that Mr Cameron's Abbott?" piggery falls into that category. However, I can Mr WELLS: It is a very great pleasure to be assure the House that I have instructed that his able to answer the question which the position be rectified. Moves are already under honourable member is so exercised by. Last way to adjust the level of rebate that Mr Cameron week, I told the House that I had no recollection receives from Queensland. at all of the case to which the honourable However, the question of the capital member referred. contribution is more complex. That is a direct Mrs Sheldon: You said, "I don't know it." policy decision of North West Electricity. It is true that Queensland offers more flexible supply Mr WELLS: No. If the honourable conditions than does New South Wales. member checks with Hansard, she will find that I Although negotiations are taking place between said I had no recollection at all of the case to the Queensland authorities and the New South which the honourable member referred. I now Wales authorities, at this point I cannot give any know why the Director of Prosecutions advises 22 June 1994 8382 Legislative Assembly firm commitment. The first part of the problem will "With reference to a situation where be resolved in the very near future. tradespersons contracted to do work on Government projects think that they have absolute security of payment and then find 3. Westbrook Youth Detention Centre themselves facing insolvency and out of Mr HEALY asked the Minister for Family pocket by many thousands of dollars due to Services and Aboriginal and Islander Affairs— the principal contractor supplying a falsely "With reference to the decision by her sworn Statutory Declaration stating that he department to close the Westbrook Youth has paid or shall pay subcontractors and Detention Centre late this month and the suppliers— listing of the centre with other Government What can be done to protect the departments for possible future use— subcontractors in question?" (1) How many of the current staff have Mr MILLINER: Because the answer is been offered either (a) voluntary early fairly lengthy, I table the answer and seek leave retirement packages, or (b) a transfer to to have it incorporated in Hansard. another detention centre? Leave granted. (2) How many of the current staff have This is the first of 2 "parallel" questions on Notice accepted those offers? on Subcontractor issues that have been (3) How many of the current staff have addressed to me by Mr Lester. In answer to this applied for, and been successful in first question I advise that the State Government obtaining, advertised vacant positions has taken very firm and substantive action to at other youth detention centres? provide for Security of Payment for (4) Will the decision on who will be Subcontractors. appointed to fill vacant positions at Following intensive consultation with industry those youth detention centres be which involved consideration of responses to the made by the management of the 1991 Green Paper on "Security of Payment for centres?" Subcontractors in the Building and Construction Ms WARNER: I seek leave to table the Industry" my Department in August 1992 answer and have it incorporated in Hansard. implemented interim contractual arrangements for security of payment. Following publication of Leave granted. Australian Standard AS2124-1992, Cabinet, on 1. All eligible staff of the Westbrook Youth 28 June 1993, decided to incorporate within the Detention Centre have been invited to express State Purchasing Policy, the initiatives taken by interest in Voluntary Early Retirement packages. my department to adopt the Australian Standard In addition, detailed information has been 2124 General Conditions of Contract and the provided to all staff advising them of Department's accompanying special conditions opportunities for transfer to other Centres. which ensure a large measure of security of 2. Formal offers of voluntary early retirement will payment for subcontractors. By virtue of be made prior to 30 June 1994. Seventy-two incorporation in the State Purchasing Policy, the staff members have expressed interest in use of these conditions were extended across Voluntary Early Retirement packages. "whole of Government" from 1 October 1993. Redeployment opportunities are being explored A specific query has been raised as to what may for the remaining five staff members. be done if a false sworn statutory declaration is 3. Seventeen current members have applied for supplied by a Principal Contractor, better advertised vacant positions at other Youth referred to as a Head Contractor, stating that Detention Centres. Of those, fifteen were party has paid or shall pay subcontractors or successful. suppliers. 4. A Manager or Acting Manager from a Youth The new contractual provisions provide the Detention Centre was a member of three of the strong remedy that a Head Contractor will be in five selection panels which considered and substantial default if a false statutory recommended applicants for the filling of vacant declaration is supplied. In practice this means positions. Other Departmental senior officers that the contract of the defaulting Head were members of the remaining two panels. Contractor may be terminated by the Crown as "Principal" and such termination will be taken into consideration in the award of further contracts to 4. Subcontractors and Suppliers that particular Head Contractor. Hon. V. P. LESTER asked the Minister for Experience to date indicates that there appears Administrative Services— to be a general acceptance and approval of Legislative Assembly 8383 22 June 1994

these conditions within the construction Notwithstanding, the measures taken will remain industry. Improved contract conditions have constantly under review to ensure as far as been effective and a measure of security of possible their continued effectiveness. payment to subcontractors has been It will be noted that these provisions apply to the implemented. government sector. It is foreseen however, that In summary, the contractual provisions for the private sector will follow the lead of Security of Payment for Subcontractors provide government and adopt the provisions in their : contracts. (i) That normal security (cash or bank It is anticipated that with subcontractors being guarantee) is available to satisfy more secure in terms of financial risk this will subcontractors charges after the claims of lead to keener tender pricing and lower contract the Principal (if any) are satisfied. (This pricing. It is also anticipated that the new overcomes prior legal difficulties in conditions will provide indirect benefit to accessing bank guarantees under the Government by reducing risks of disputation Subcontractors' Charges Act 1974.) litigation due to non payment of subcontractors which will no doubt result in reduced time delays (ii) That additional security—five percent (5%) and project costs. of contract sum—is required and will be available to satisfy subcontractors charges as a first preference or 5. Subcontractors and Suppliers alternatively that the Head Contractor must Hon. V. P. LESTER asked the Minister for set up a retention trust fund in respect of Administrative Services— security and retention monies held against the subcontractor. "The Green Paper which proposed the establishment of the Queensland Building (iii) That, except for minor works contracts, Services Authority (QBSA) stated that 'he subcontracts are required to be in the form object was to safeguard and assure the of AS2545 subcontract conditions. payment of subcontractors'. (iv) For a system of proof of payment such As the QBSA is clearly not achieving that— what was originally intended, what can be (a) A subcontractor payment recording done to ensure payments to system must be set up; subcontractors?" (b) There is notification to the Principal of Mr MILLINER: I table the answer and seek any subcontractor who has not leave to have it incorporated in Hansard. executed a record of payment form. Leave granted. In such an instance notification by This is the second of 2 questions on the Principal to subcontractors of the Subcontractor issues that have been addressed relevant progress payment to a Head to me. Contractor will occur to enable a subcontractor (if that party so In answer to this second question, I advise that chooses) to take action under the the Queensland Building Services Authority Act Subcontractors Charges Act; falls within the responsibility of my colleague, the Honourable Terry Mackenroth, Minister for (c) At a time of a progress claim, a Housing, Local Government and Planning. I am statutory declaration is provided to not able to respond to questions in respect of the Principal (upon request) that all that legislation. subcontractors and workers have been paid all monies due and payable I have provided a detailed response to Mr Lester to them. in respect of Security of Payment for Subcontractors by answer to his first of the 2 (v) That the Head Contractor is in substantial questions on Subcontractors issues. default in the event that there is failure to comply with these requirements. Mr BORBIDGE having given notice of a question— It is to be appreciated that while these provisions will give a large measure of protection for Mr Gibbs: Ask the question. I'll take it now. payment to subcontractors, they rely heavily Mr BORBIDGE: It is detailed. You might upon subcontractors taking their own need to do some work on it. I want an accurate appropriate action as soon as they are able to do answer. I just want you to get it right for once. so. Mr Gibbs: I'll give you an accurate answer. 22 June 1994 8384 Legislative Assembly

Mr SPEAKER: Order! Would you two agent $15,000 in fines and the Auctioneers and mind! Would the honourable member ask his Agents Fidelity Fund $60,000 in paying for his second question, please? discrepancies. Mr Borbidge interjected. One of the problems is that it is hard to Mr SPEAKER: Order! The Leader of the detect such an offence because it is so easy to Opposition should not talk to me about people conceal the identity of the purchaser. One might being provoked. know the agent well, but does one know his uncle, his aunty, his sister or his brother? The Mr Santoro interjected. primary responsibility of agents and their staff is Mr SPEAKER: Order! I warn the member to look after the clients. We are concerned about for Clayfield under Standing Order 123A. reports that agents are not looking after the clients. It is unfair that, when a person approaches an agent, the agent tells that person QUESTIONS WITHOUT NOTICE the value of the property and then decides to Cabinet Solidarity buy it himself. Mr BORBIDGE: I refer the Honourable the Although it is true that agents must disclose Deputy Premier to the doctrine of Cabinet their interest and disclose that they want to buy solidarity and to his comments of 2 March this the property themselves and that the owner year that he would leave Government and end must agree, it is a fairly dangerous practice. It is his relationship with the ALP if plans to dredge fraught with all sorts of concerns for the real coral off Green Island, Moreton Bay go ahead, estate industry. I do not expect that we will be and I ask: in view of an environmental impact able to address the problem without some assessment study presented to Cabinet, does changes to legislation. I have a number of he stand by his statements? options that I will consider and in regard to which I Mr BURNS: I thank the honourable will make some recommendations to Cabinet. member for the question. I welcome the release One is to implement the recommendation in the of the statement. It will help to prove what I have Overett committee report and ban agents from been saying. buying properties listed with their agencies. Another is to amend the regulations so that agents must prove that the price they pay for a Real Estate Agents property is a realistic and fair market price. In Mr PITT: I ask the Deputy Premier, Minister other words, they will need to get an for Emergency Services and Minister for Rural independent valuation of that property and pay Communities and Consumer Affairs: can a real for that valuation themselves. The third option is estate agent buy a property that is listed with his increases in some penalties. agency? Is such a practice legal? If so, does the The carnival is over. I will not tolerate this Minister have any concerns about that, and type of behaviour from any real estate agent or would he indicate what action is available to him employee. In many cases, it is not the agent but to address such concerns? the salesperson who rips off poor, Mr BURNS: It is legal for a real estate unsuspecting, usually elderly people for the agent to buy a property listed with his firm if the most valuable piece of property that they will ever consent of the vendor is obtained and no own in their lives. commission is charged. However, many concerns about that matter are being expressed Clean Air by people, especially old people who bought houses many, many years ago for low sums of Mr PITT: I ask the Minister for Environment money. Now, when someone says that those and Heritage: in light of the fact that the houses are worth $100,000, they think that they Government launched a clean air plan for have a good price and sell. I am not the only Brisbane prior to the last State election, can she person who has concerns. explain how that plan has been implemented? In 1992, a committee chaired by the Ms ROBSON: I thank the honourable Chairman of the Agents and Auctioneers member for that question because it is a very Committee, Alex Overett, which contained broad important issue to which the Government made a industry representations, recommended that commitment prior to the 1992 election. In the agents should be prohibited from purchasing current financial year, $200,000 has been spent property that has been listed with them for sale. I to establish four new air monitoring sites at point out that, only a few years ago, a lengthy Ipswich, Deception Bay, Beenleigh and North and costly investigation resulted in one agent McLean. It is very important that we have some being charged with 82 offences. That cost the sort of a database to measure air quality all over Legislative Assembly 8385 22 June 1994

Queensland, including Brisbane and south-east and I encourage all members to support this Queensland. The Government has taken a very program. responsible position in trying to determine that information. Borrowing Rates for Councils There are also three long-term monitoring sites at Eagle Farm, Fortitude Valley and Mrs SHELDON: I refer the Treasurer to Rocklea. An air track instrument, which measures the Government's decision to no longer the amount of photochemical smog and its prescribe a maximum borrowing rate for local precursors, has been installed at the Rocklea governments, and I ask him to note that it is site, and a meteorological tower will soon be leading to significantly higher lending charges for installed at Rocklea. councils, therefore making it difficult for banks to quote on a fixed interest rate basis. I ask: is this An amount of $300,000 provided in the another ploy to encourage local governments to next financial year will continue this program. In borrow through the QTC rather than their local 1994-95, new sites costing $70,000 each for banks? Does the Treasurer agree with such infrastructure and equipment and a further underhanded, coercive measures? $10,000 each in labour costs to establish them, are planned at Bald Hills, Mutdapilly and in the Mr De LACY: The answers to the two greater Brisbane area. questions are: "No", and "Not applicable". We are also operating air-quality monitoring outside Brisbane. I have spoken in this House Performance Dividend Protest; previously about the fine record that Gladstone is Mr W. Ludwig proving to have in this area. We have also Mrs SHELDON: I refer the Treasurer to established two sites in Townsville and one in the presence of AWU powerbroker Bill Ludwig in Mount Isa. the protest crowd outside Parliament House All of this information is extremely important. today, and I ask: has Mr Ludwig contacted the Members will be aware that, some time ago, my Treasurer and conveyed to the Government his department also launched a Smoky Vehicles now public opposition to the stealth tax? Watch program, which has been monitoring Mr De LACY: Anybody has the right to smoky vehicles in this city and around the State. protest outside Parliament House. This Over 100 of my departmental staff, including me, Government supports the right to protest. I might have been trained to be active in this program. I say that, a few years ago, a lot of those people am sure that honourable members, as they drive outside opposed the right to protest. At least around the cities and other parts of the State, are they now understand that government has, as irritated as I am to see trucks, particularly, indeed, changed in Queensland. belching out black smoke and other smoke of all colours and polluting the air when all of us, I am In answer to the other part of the sure, are making the maximum effort—— honourable member's question, I certainly would not be making public in this place, or to the Mr Johnson interjected. honourable member, any conversations Mr SPEAKER: Order! The member for between the secretary of the AWU and me. Gregory! Ms ROBSON: We are making the Electricity Theft maximum effort to make sure that we do not let our air get any more polluted than it is currently. Mr LIVINGSTONE: I ask the Minister for Research indicates that 90 per cent of motor Minerals and Energy: can he inform the House of vehicle pollution is actually caused by 10 per the Government's concerns relating to the theft cent of vehicles. So we are fairly committed to of electricity in Queensland? What action is being making sure that that does not happen any taken to stamp out this practice, and is the level longer. of theft in Queensland any worse than it is in other States? We are working closely with the Department of Transport and, so far, 435 warning letters have Mr McGRADY: The stealing of electricity is been sent out to vehicle owners, advising them both illegal and, probably more importantly, that they have unacceptable smoky exhaust extremely dangerous both to the perpetrator of emissions and asking them to have them the crime and to his or her family and neighbours. repaired. Ten of those people have received a Last year, the stealing of electricity cost second letter calling on them to bring their Queensland consumers $18m. When we vehicles to the Department of Transport for an compare that figure with the $12m cost of inspection. So I think that speaks very well for the shoplifting, that gives an idea of the enormity of record that the Government has achieved so far, the problem. To bring it down to a more personal 22 June 1994 8386 Legislative Assembly level, it is costing each consumer an extra $12 a have been running between 4 400 and year on his or her electricity bill. 4 500 a month since March 1993." The incidence of electricity theft in Importantly, he states— Queensland is certainly no worse than it is in any "A continuing record gain in population other State, probably because the majority of us from other States, strong employment are far more honest than our southern cousins. growth and attractive affordability conditions Also, SEQEB and the other regional electricity in Queensland have fuelled the record boards are leaders in detection and protection. activity." SEQEB, together with the other boards, has just started an awareness campaign that will involve I think we could go a long way to find a better sending out to all consumers a card with a hotline measure of how a community, how a number on it so that people can ring in and notify Government and how a State economy are the authorities if they suspect others of abusing performing: strong population growth—other their electricity meters. Australians are voting with their feet—strong employment growth, which is very important, and People do not usually steal electricity attractive affordability conditions. In other words, because they need to. They do it as a challenge, in Queensland, this Government, through its and because they are greedy. They then tend to policies and through other things that are go around and brag about it in their workplaces or happening in Queensland, is achieving the best among their friends. The vast majority of climate for housing growth. consumers in the general community are sick and tired of this sort of carrying on, and they are That growth is not just limited to housing the first to report these instances. We receive growth. The Kelly recruitment survey, which most of our complaints by tip-offs, which average appears in the business section of today's about four or five a month. However, owing to Courier-Mail, indicates that not only in the the excellent coverage that the Queensland housing sector but right across-the-board we media gave us yesterday at the launch of this have set the climate and we have the best campaign, by 10 o'clock this morning we had performance of the States. The survey already received eight tip-offs. These tip-offs and conducted by Kelly Services throughout complaints will be followed up and investigated. I Australia questioned 2 000 companies as to their wish to place on record the Government's thanks hiring intentions for the next three months. A to the media for its assistance in this campaign. statement from Kelly Services reads— "Growth is anticipated to emanate from the Small Business Sector. Medium to large Home Building Survey companies are showing consolidation Mr LIVINGSTONE: I ask the Premier and although there will be a lag in the number of Minister for Economic and Trade Development: positions created." is he aware of the latest home building figures In a State such as Queensland where we released by the Housing Industry Association? have a predominance of small to medium-sized Can he inform the House of the survey results? companies, the Kelly Recruitment survey Mr W. K. GOSS: I can. In fact, it is more indicates an expectation— a prediction from good news for Queensland. The Housing business, not from Government—that Industry Association, in a statement issued in the Queensland is predicted to generate 12.5 per last couple of days, stated— cent growth in jobs in the next quarter. The "Queensland home builders expect survey result indicates that the vast majority of record levels of housing activity in Queensland's new jobs will be generated by Queensland to continue." small businesses and the banking and finance sectors. In particular, the latest survey, taken during the first two weeks of June, found that 46 per In conclusion, this underlines the fact that cent of Queensland's builders expect their sales we in this State are successful in what we are to rise over the course of the next six months, trying to do, namely, to create the best possible and a further 44 per cent expect to at least climate in Australia for small to medium-sized maintain sale levels. So we have 90 per cent of business to grow and employ. That was shown builders in Queensland who are expecting to by the statistics on new job creation last month. increase or, at least, maintain their current levels. In the whole country, we had 30 000 jobs The results are described by Mr Temby from the created and, of the new jobs created in the association as "quite remarkable". He stated— whole of Australia, over two-thirds—22 000—were created in this State. "The housing upturn in Queensland It shows that we are getting the basics right for has been quite remarkable . . . Approvals business. But what these two surveys show also were at their low point in March 1990 . . . Legislative Assembly 8387 22 June 1994 is that this Government and this Labor Party have Great Sandy Region Rescue Package the best policies in place and understand the Mr DOLLIN: I direct a question to the needs of small to medium-sized business. That is Minister for Environment and Heritage. It has in contrast to the members opposite who been claimed by a Federal Opposition senator continually falsely claim that somehow we are that $3m has been redirected by the Federal failing small business. The two surveys by private Government from the Great Sandy Region sector organisations of small to medium-sized rescue package towards a project in the Wet companies clearly show that this Government is Tropics World Heritage area and that this is a cut targeting very effectively the requirements of in support for the Great Sandy Region. Can the small to medium-sized business. This is reflected Minister assure the House that the State and in their sales and employment growth. Federal Governments' commitment to the region remains unaffected? Coral Dredging, Green Island Mr Borbidge: I hope you can read the Mr LINGARD: I refer the Minister for answer better than he read the question. Business, Industry and Regional Development Ms ROBSON: That is very unkind and to an interview on Channel 9 on 2 March 1994 in beneath the Leader of the Opposition—or which the Deputy Premier said that he would maybe it is not. leave Cabinet if dredging proceeded at Green This question was raised in the Federal Island. In the same report the Minister said, "Let Parliament by an Opposition senator. It is me know the date so I can start counting the important that we set the record straight. As is numbers." I ask: does the Minister intend to the case with Opposition members in this House, make an objective decision in regard to Green that senator got it wrong. Fundamentally, my island? Does he support the comments made by counterpart Mr Faulkner has recently received the Deputy Premier earlier this afternoon in Cabinet approval for the transfer of an amount of response to the Leader of the Opposition? $3m from his Fraser Island structural adjustment Mr ELDER: Again, the question asked is package to keep essential tree planting going in based on a false premise. It was stated that I said the Wet Tropics. that; that is not my recollection of the events. The FISAP Scheme, as it is called, includes This Government—— contingency funds to cover the effects of Opposition members interjected. taxation liability arising from compensation paid to Mr ELDER: The Deputy Premier and I talk businesses in the area following the State continually about the requirements of mining in Government's cessation of logging on Fraser Moreton Bay and we address the issues, which Island. That $3m was transferred after impact on us locally as well. The members consultants Price Waterhouse had advised the opposite should not believe everything they Federal Minister that there was no possibility of read and see in the media, because they are not the full amount that was provided for the facts. An impact assessment study has been compensation being needed. Rather than released in relation to this matter. That is the returning that funding to consolidated revenue, appropriate response. It is in the marketplace. Mr Faulkner decided— quite wisely, and we should be very grateful that he has done Mr Burns: Everybody should read it. this—that he would commit it to that Wet Tropics Mr ELDER: The members opposite project, which has been funded previously. Mr should read it. If they read it, they will get a far Faulkner is very keen to maintain his commitment better understanding of the situation. I have to and that of his Government to strengthening the say this: we are in the House dealing with matters commitment that this Government has to the Wet that I see as far more important on a global Tropics as well as to Fraser Island. spectrum, yet the member asks me a question I would also suggest that the State about Green Island. The only person whose Government's commitment has not diminished. leadership has been in question and has been As I have explained in the House, $637,000 has highlighted in the media lately is the Leader of been provided in my budget for the next financial the Opposition. The only person in this House year as special funding to finalise the under any pressure is the Leader of the implementation of the recommendations of the Opposition. The only one who cannot count Commission of Inquiry Into the Conservation, numbers in this House is the Leader of the Management and Use of Fraser Island and to Opposition. I can give the Leader of the meet the running costs of the Fraser Opposition a better understanding about the Implementation Unit. These funds will obviously numbers on his side of House than he can give assist greatly with the unit in the development of me about the numbers on my side of the House. the Great Sandy Region Management Bill, which is planning for the future use of Fraser Island. 22 June 1994 8388 Legislative Assembly

This is in addition to the $38m which has been provided through the growth and development Employment of School Teachers package. Mr QUINN: I direct a question to the On top of the State's $38m package, the Minister for Education. State Budgets from 1990 Commonwealth is providing $4.76m to meet to 1994 have allocated funding for an additional taxation assessments on business 1 617 teachers. However, on figures supplied by compensation, as I have explained, giving a total the Minister to the House last Thursday, from package and commitment by the State and February 1990 to the end of this month there Commonwealth Governments of more than has been a real increase of only 1 158 teachers. I $42m. ask: can the Minister explain why 459 teachers have not been employed? Ownership of Quarry Materials on Mr COMBEN: As I explained to the Freehold Land Estimates committee, it is a difference between Mr DOLLIN: I ask the Minister for Minerals the Budget control limits and the warm bodies and Energy: can he inform the House whether that we now use. The member seeks a detailed new legislation is being drafted which would answer. I will take the question on notice. transfer ownership of quarry materials now belonging to landowners to the Crown? Is the Teacher Numbers Government considering a transfer of ownership of quarry materials from freehold land-holders to Mr QUINN: In directing a question to the the Crown? Minister for Education, I refer to the fact that one out of every four additional teachers allocated in Mr McGRADY: I thank the member for the past State Budgets has turned out to be a question. This is a matter which has been beaten phantom. I ask: how many additional teachers up around the bush by several members promised for the next year will actually appear in opposite in some sort of attempt to frighten classrooms, and why should 10 000 people who own quarry materials on their land. unemployed teachers believe the Minister's Last month, the member for Gregory even wrote answer? a column in one of the local papers in his electorate in which he stated quite categorically Mr COMBEN: The premise is wrong. that the Department of Minerals and Energy was Reference to one out of four teachers—or any drafting legislation to put freehold ownership of figure akin to that—being a phantom is incorrect. quarry materials under Crown ownership. The member referred to 10 000 unemployed Unfortunately for him, he is totally wrong. He has teachers. The honourable member knows that been totally misinformed and he is totally without there are considerably fewer than 10 000 credibility. unemployed teachers. As we are beginning to approach those people for employment, a The fact is that there is an examination of number of them are now declining employment. possible future administration of the extractive The numbers are going down. The reality is that industry. But the honourable member opposite in four to five years' time, as student numbers must be gazing into foggy old crystal balls—he increase, we will be employing most of those must be seeing things that nobody else can— people. because no consideration at all is being given to a transfer of ownership of quarry materials from freehold landowners to the Crown. It is simply not Collinsville Power Station on the agenda, and there is no new legislation Mrs BIRD: I ask the Minister for Minerals being drafted for that purpose. and Energy: can he inform the House of the Anything to come out of the examination will Government's intentions for the old Collinsville relate essentially to an improved system of Power Station and what sort of response there administration of extractive materials, that is, has been to the Queensland Electricity quarry rock, sand and gravel. It should be Commission's invitation for companies to bid for pointed out that quarry materials on leasehold the purchase and recommissioning of the and reserve lands are already the property of the station? Crown. Nothing is changing, despite the scare Mr McGRADY: I thank the member for the tactics being employed by some members question. As members would know, Collinsville is opposite. I emphasise that, to my knowledge, in the electorate of the member for Whitsunday. the option of declaring quarry materials on The Collinsville Power Station was freehold land as the property of the Crown is not decommissioned in 1988 and has since been in under consideration by the committee mothballs. That power station generated 180 conducting the examination. megawatts of power. The Government and I are Legislative Assembly 8389 22 June 1994 keen to see that power station reopened. In April more natural and home-like environment, where this year, we called for expressions of interest the experience can be shared by family and both domestically and overseas. Already, there friends. Women will receive continuity of care has been strong interest both in Australia and before, during and after the birth, and support, overseas from organisations that would be advice and expert care from a midwife they know interested in giving us expressions of interest. and trust. Those expressions of interest will close on 4 It is important that the demand for this July. The QEC itself is interested in putting service within the Mackay and the Whitsunday forward some plans for the station, but I want to region be appreciated. Currently, there are more assure the House that any expression of interest than 50 women on the program. I am sure that from the QEC will be assessed in the same way the whole of the Parliament would congratulate as that of any other private organisation. the Mackay Regional Health Authority, the I certainly do not want to build up the consultation reference group and the birth expectations of people in the Collinsville centre coordinator, who have shown a township, but I think it is fair to say that I am commendable lead in providing a service that hopeful that the negotiations that will take place steps outside the normal medical model to meet will mean that the power station will be reopened. what clearly is a demonstrated need within that To the township of Collinsville, that would mean community. that the Collinsville mine would then be able to sell its coal to the power station, thereby giving a new lease of life to the mine and to the people State of Origin Tickets; Fourex Gold who live in that township. Crushers Mr VEIVERS: In directing a question to the Minister for Tourism, Sport and Racing, I refer Birthing Alternatives to a pamphlet distributed at Monday night's State Mrs BIRD: I direct a question to the of Origin match which offers season ticket Minister for Health, who would be aware of the holders of the Fourex Gold Crushers first choice increasing demand from women for access to of seats for next year's State of Origin matches as birthing environments other than the traditional an incentive to join the Crushers, and I ask: did hospital maternity setting. I ask: can the Minister the Government-controlled Lang Park Trust advise the House what the Government is doing sanction this deal, which directly benefits a to provide those birthing alternatives for women private Rugby League club in its recruitment who want them and, in particular, what steps drive for new members? have been taken to improve access to alternative Mr GIBBS: I will take that question on birthing options for women of the Whitsunday notice. I will check. electorate and the Mackay region? Mr HAYWARD: I thank the honourable member for her very timely question. Last Friday, State of Origin Tickets; Fourex Gold I had the pleasure of opening a new birthing Crushers centre at the Mackay Base Hospital. That centre Mr VEIVERS: In directing a second is an excellent example of the way in which question to the Minister for Tourism, Sport and health services are being developed to meet the Racing, I refer to the fact that season ticket needs and desires of local communities. The holders of the Fourex Gold Crushers are being new centre, which has been established in a offered first choice of tickets for next year's State refurbished house adjacent to the hospital's of Origin, and I ask: what assurance can the obstetric unit, is one of two in the State. The Minister give to the tens of thousands of Rugby other centre, at Bundaberg, is expected to be League fans who are not followers of the open within the next two months. The Mackay Crushers that they will not be discriminated centre is close enough to the hospital's maternity against and will have access to grandstand section to access medical services in an tickets at next year's State of Origin matches? emergency but far enough away to provide an Mr GIBBS: One does not have to be a appropriate environment for eligible women who genius to realise who wrote those questions for want to give birth in more relaxed surroundings. It the member. I cannot give that guarantee. The will be available for use by women who are Lang Park Trust, in conjunction with the judged to be healthy and at low risk of Queensland Rugby League, is totally complications, with obstetric and paediatric responsible for the running and administration of back-up readily available from hospital medical Lang Park. As I understand it, the QRL is staff. The birth centre will be utilised by women responsible for the ticket sales for State of Origin across the whole of the region who would like matches at Lang Park. It is my understanding—as the opportunity to experience child birth in a I am sure it would be the understanding of the 22 June 1994 8390 Legislative Assembly honourable member, being a former money for this financial year and we will certainly representative Rugby League player—that all be seeking any further moneys that may be clubs are given a certain number of tickets to required to replace and upgrade all the enable supporters of that club to attend major playground equipment. In terms of priorities, our matches at Lang Park, whether it be State of first priority must be playground equipment Origin matches or Rugby League tests. I will which is in the preschools because there is an incorporate the question that the member has educational benefit to playground equipment in just asked with his first question, and I will give preschools. There, the youngsters learn him a more detailed answer tomorrow. Although coordination and movement, so they need that the result at Lang Park on Monday night was sort of equipment as part of their education. The disappointing for all Queenslanders, the success primary schools will also have their equipment of the event has most certainly silenced the replaced, but they must take second place critics and the knockers from the Opposition side because the emphasis must be on the of the Chamber that, following the preschools. We are doing everything we can, but redevelopment of Lang Park, the event would at the beginning of this process it is the safety of not be a success. Monday night was an the student which is paramount. We have outstanding success. Contrary to some of the ensured that safety by the actions that we have carping criticisms of the event that were made on taken. We will make sure that any equipment is the radio in Brisbane by other parties whom I shall replaced by appropriate equipment which is safe not name, it is significant to note that, as a result and educationally sound. of the planning by the Lang Park Trust and the Australian Catholic University and TAFE excellent and outstanding cooperation of the Queensland Queensland Police Service, there has not been—and I reiterate "there has not been"—one Mr T. B. SULLIVAN: I direct a question complaint concerning the traffic plan that was in to the Minister for Employment, Training and operation at Suncorp Stadium on Monday night; Industrial Relations. The Minister recently neither has there been one complaint from local announced a memorandum of understanding business houses, which have sung the praises between the Australian Catholic University and of the Queensland Police Service and the TAFE Queensland. I ask: could the Minister success of the event. advise the House of the significance of this agreement and other agreements like it to TAFE students in Queensland? Replacement of School Playground Mr FOLEY: The significance of the Equipment agreement is that it gives TAFE graduates Mr T. B. SULLIVAN: I ask the Minister for access to university. The graduates of Education to explain what is happening with the Queensland's TAFE colleges now have special replacement of school playground equipment access to seven Queensland universities and which has been deemed to be unsafe? In one New South Wales university. I pay tribute to particular, what priority has been given to the work of the Australian Catholic University preschools in this replacement program? and, in particular, the vice-chancellor, Professor Peter Drake, in terms of reaching agreement on Mr COMBEN: I thank the honourable this most recent memorandum of understanding. member for the question. I think that most What that means in practical terms is that last year members would be aware that workplace health about 2 000 TAFE graduates used their TAFE and safety inspectors have travelled the State to qualifications to enter university. Accordingly, it examine playground equipment in primary means that there is a better use of taxpayers' schools and preschools with the result that the money in the fields of vocational education and equipment has been found to not come up to tertiary education by allowing that articulation to appropriate standards. Too many pieces of take place. equipment had no compaction material There once was a time when students at underneath them; some of them were too high TAFE colleges were regarded as second-class so that if a child fell off major damage would be citizens. There was a time when universities done; and some have inappropriate gaps in would shun them and would not recognise the which the hands, feet and heads of young excellence of the training which has been people can be caught. undertaken there. I am pleased to see that The result is that in 213 cases the workplace universities are becoming more enlightened in health and safety inspectors have condemned this regard and that arrangements are being the playground equipment. In the last year we made to allow articulation of students from TAFE have spent about $4m to replace that equipment into university. Having said that, of course, TAFE or to upgrade it. We have a similar amount of is by no means merely a warehouse for holding Legislative Assembly 8391 22 June 1994 students to allow them to go on to university. local government in this place would be aware TAFE is very much a training provider in its own that the City of Brisbane came to be due to the right, but I am pleased at the cooperation of the amalgamation of a large number of pre-existing Australian Catholic University. It joins a number of towns, cities and shires. In Queensland, there other universities in Queensland making this are only two local authorities, Brisbane City and articulation arrangement possible. Rockhampton City, which undertake public transport services as a municipality. In the case of Brisbane City, there had been, over a number of Green Island Coral years, an agreement between the State Mr SLACK: In directing a question to the Government and the city council whereby the Minister for Environment and Heritage, I refer to fare box subsidy which was paid to the Brisbane the proposal by Queensland Cement and Lime City Council was greater than the fare box to mine Green Island coral. I ask: as Environment subsidy which was payable to any other bus and Heritage Minister, does she support the operators in Queensland. That was a sweetheart position of her deputy leader who has opposed deal done probably about 20 years ago and over the proposal to mine the coral on environmental a period of time that fare box subsidy climbed to a grounds? situation where the State Government was Ms ROBSON: I think that the Deputy making a payment of 60c in the dollar for every Premier and the Minister for Business, Industry dollar in the council's fare box revenue. and Regional Development reiterated the A few years ago, we made some changes to position that an environmental impact statement our financial support to Brisbane City Council has been done. It has now gone out for transport services. On the one hand, we public—— provided for a cap and CPI indexation on the fare An Opposition member interjected. box subsidy as it pertained to buses and, in another important departure from previous Ms ROBSON: I will answer the question practice, we actually instituted for the very first my way. It has now gone out for public time assistance to the Brisbane City Council with information and public comment. I think that is an respect to the provision of its ferry services. appropriate process. It is a process which was agreed to by Cabinet and it is a process which This year, the Brisbane City Council expects does not commit the Government or myself as a to receive from the Department of Transport Minister to any particular position except that we some $26.6m towards supporting the operation support freedom of information in terms of the of the public transport services in the City of public knowing what is going on. Brisbane. I might say that that level of payment is higher than for any other recipient of passenger transport assistance, whether it be in the public Brisbane City Council Bus Services sector or the private sector. I think that that clearly Mr BEATTIE: I ask the Minister for demonstrates the Queensland Government's Transport and Minister Assisting the Premier on continuing resolve to support Brisbane City Trade and Economic Development: is he aware Council transport services. We are currently of any unfair criticism of the State Government's engaged in very fruitful negotiations with the funding levels in relation to the Brisbane City Brisbane City Council about the implementation Council's bus services? If so, can he advise the of our passenger transport review as it pertains to House of this Government's commitment to Brisbane City, which will see in a number of areas public transport in the Brisbane City area and an enhancement of service provision. I believe what that commitment is? that can be achieved only by a real partnership between the State Government and Brisbane Mr HAMILL: I would hope that the bus City in the interests of providing passenger services are more timely in arrival than the transport services to the local community. member for Brisbane Central. Mr SPEAKER: Order! I was going to suggest that they move faster than he did. Schools in Noosa Electorate Mr HAMILL: Indeed. Certainly, there is no Mr BEATTIE: I ask the Minister for problem in the timeliness of the payments which Administrative Services: has his attention been the Queensland Government makes to the drawn to comments by the honourable member Brisbane City Council to support its public for Noosa in relation to maintenance work on transport services. In fact, the Brisbane City schools in his electorate and elsewhere on the Council is unique among local authorities in Sunshine Coast? Australia in terms of the size and scope of its Mr MILLINER: It saddened me somewhat responsibilities, and, of course, the geographical to hear the member for Noosa putting down the area over which it has responsibility. Historians of schools within his electorate by suggesting that 22 June 1994 8392 Legislative Assembly maintenance on those schools was being Eumundi, there has been an increase of 53 per neglected. After the honourable member made cent; at Coolum, an increase of 56 per cent; at that statement, I decided that I would check out Sunshine Beach, an increase of 150 per cent; at the situation within schools in the Noosa Cooroy, an increase of 166 per cent; and at electorate. When one considers the facts, one Noosa, an increase of 227 per cent—hardly any finds that they are different from the details neglect. outlined by the member for Noosa. Mr M. Lannen After that outrageous statement, I decided Mr CONNOR: In directing a question to to have a check through my ministerial office and the Minister for Police, I refer to a prison the department to see what representations had psychologist named Michael Lannen, who been made by the present member for Noosa. I currently works at the Numinbah prison in my was not surprised to find that he has not made electorate. I also refer to correspondence I have one representation to me—— had recently with his office about Mr Lannen. I Mr DAVIDSON: I rise to a point of order. I ask: does the Minister still have full confidence in realise the Minister is a very busy man, but if he the prison psychologist as his office recently would care to check with his director-general, Mr expressed to me? Dunning, he would realise that I had a Mr BRADDY: The honourable member is conversation with Mr Dunning a month ago. referring to a person who has lodged a complaint Mr SPEAKER: Order! There is no point of in relation to certain matters which are under order. investigation by the police and the Corrective Mr MILLINER: Had a conversation; that is Services Investigation Unit. I do not intend to about it. Unlike the previous member for indulge in any speculation in relation to that. Cooroora, who constantly made representations In relation to people employed by the to Ministers, the present member has not done Corrective Services Commission—all of them are that. Quite a deal of maintenance has been entitled to have the respect and confidence of undertaken in that area. For example, in the Queensland community provided that they Tewantin, the previous Government spent an carry out their duties properly. If they do not, average of $37,000 a year on the Tewantin then the matters are dealt with. All employees school. We spent an average of $30,000 in the receive the support of the commission and the last two years. I admit that that is less than the Minister as long as they continue to deserve it. sum spent by the previous Government, but we did spend $97,000 in the first 18 months. That is hardly neglect. Payroll Tax on Termination Payments In Coolum, the previous Government spent Mr CONNOR: I direct a question to the a little over $14,000 in one year and an average Treasurer. A recent draft ruling was issued by the spending of about $36,000 a year. In the past Treasury extending payroll tax to termination pay. two years, the Government has spent nearly I ask: how much extra tax is expected each year? $112,000—an average of $56,000 a year—at From when is the tax to take effect? Will any Cooroy. The previous Government spent businesses be forced by this ruling to incur a tax $10,000 in one year, and the average was liability for previous years? Are there are any $16,000. We spent $85,000 in the last two disputes between Treasury and business that years, an average of $42,500. may be affected by this ruling? In Eumundi, the previous Government went Mr De LACY: The honourable member as low as $15,000 and had an average of has asked half a dozen questions. There will be $20,000. We spent $61,000 in the past two no retrospective application of the new ruling. In years, an average of $30,500. The previous other words, the new interpretation only applies Government spent an average of $43,000 a year from the time of the ruling. on the Noosa district high school. Some Mr Connor: When will that be? members might think that is a reasonable figure; Mr De LACY: The ruling has been made. but we have had to spend $281,000 in two years, that is, an average of $140,000, or Mr Connor: When will it come into force? $97,000 more, per year. At Sunshine Beach, the Mr De LACY: It comes into force from the previous Government spent as little as $4,000 in time the ruling was made. In relation to the one year and an average of $7,000 per year. We expected increase in revenue—it will be minimal. spent $33,000 in two years, an average of Mr Connor: You don't know? $17,000. Mr De LACY: How can we know? How do As to the percentage figures—at Tewantin we know how many people in the next year are there has been a decrease, as I indicated. At likely to fall into the net of having their Legislative Assembly 8393 22 June 1994 redundancy payments subject to payroll tax? It We can do that through PARTEC. The plastics will be minimal. It will make no impact on our and rubber institute has courses that could be collections over the year at all. based at the TAFE college on the Gold Coast to Mr Connor: When is it going to come into help our surfboard manufacturers. It is worth effect? $100m a year. That industry can grow. But what it has to watch, and what it should be watching out Mr De LACY: It will come into effect from for is that one can get customised surfboards the time the ruling is made, and it has already manufactured in parts of Taiwan. been made. Mr FOLEY: Big waves. Mr ELDER: They have to look out for big Surfing Industry waves, as well. People can get customised Mrs ROSE: I ask the Minister for Business, surfboards overseas and ship them into the Industry and Regional Development: can he country. We should have a look at that advise of any Government action to support the competition. surfing industry, particularly on the Gold Coast? I know the member for Currumbin is keen to Mr ELDER: On this occasion, I will try to grow the industry. She has shown that by her count surfboards and get through with it. I support of the industry. We support the industry. certainly can. We on this side of the House, and a It is jobs on the Gold Coast, and it is looking after couple on the other side of the Chamber, are old surfs. friends of the surfing industry. Mrs Sheldon interjected. Selection of School Principals Mr ELDER: Is the honourable member an Mrs ROSE: I direct a question to the old surfer, too? Has she actually been out there Minister for Education. Following the concerns hanging ten? That would be awesome. The expressed by parents of students of the member for Currumbin has been working Ingleside State School, can the Minister advise particularly hard with the surfing industry to what changes have been made or could be develop a more integrated approach to the made to the selection process of school industry. My department recently funded a principals? study. We looked at how we could actually grow Mr COMBEN: Everyone is aware of the that particular industry. It is essentially a cottage difficulties that were experienced recently at industry in which there is a lot of expertise, but Ingleside, where a principal had acted for some people in the industry tend to be very time and then was not shortlisted for the job. A individualistic. We really need to be looking at few parents have made their feelings known to how we can develop better production me. That problem has been with the department techniques for them. In other words, we should for some time. When members of the Opposition look at what is available overseas and how we can were in Government, they faced similar help our home-grown industry. problems. With the use of new technologies, that Recent discussions with the union have might be vacuum forming in terms of the brought us close to a resolution. In the future, if a manufacture of sailboards or, more importantly, principal has acted appropriately and adequately the use of computer age technology, that is, the over a period, that principal will automatically be CAD system for the design of surfboards. In that interviewed for the job. That does not mean that way, individually designed surfboards could be that principal will get the job, but that principal will made. Those surfboards could cater for the be interviewed. Secondly, we will involve parents member for Southport battling out through the in the principal selection process. Thirdly, waves. It would not be all that awkward. That is a women will constitute 50 per cent or more of the good example: the member for Southport, on his selection panel. own personally customised surfboard, pounding out through the waves, sinew and muscle The three reforms that we have put together against the awesome power of nature. I'd like to with the trade union will greatly benefit principal see that. selection in this State. I appreciate the honourable member raising the concerns of her Mr Gibbs: I used to think he was Charles constituents at Ingleside. Those concerns have Atlas' double. been raised with me. Mr ELDER: Charles Atlas' double, indeed. Mr SPEAKER: Order! The time allotted That is the type of thing that will come at the end for questions has expired. of the day—computer age design technology being used for individual surfboard manufacture. We need to look at how we can wrap up training. 22 June 1994 8394 Legislative Assembly

MATTER OF SPECIAL PUBLIC evaluation of opportunities to accelerate IMPORTANCE development of the province and to remove Carpentaria/Mount Isa Mineral Province constraints. The study's summary of conclusions and recommendations was presented in 1993 Mr SPEAKER: Order! I advise the House and the second phase is already under way. that I have received a proposal for this debate pursuant to the Sessional Order. The proposal Among the initiatives under consideration submitted by the Honourable Minister for are the gas pipeline from the south west to Minerals and Energy is for a debate on the Mount Isa and a slurry pipeline from Mount Isa to following matter— Karumba on the gulf. A study has also been undertaken on a slurry line from the Century "The importance of the zinc/lead/silver deposit to Karumba. The speed Carpentaria/Mount Isa mineral province to of development of Queensland's north west will the economy of Queensland." be greatly influenced by the availability of Mr BENNETT (Gladstone) (3.52 p.m.): energy. Options for the supply of energy are The importance of this province is very well presently being considered. It is estimated that known to the people of Queensland. $2 billion to $2.5 billion in capital investment will An Opposition member: What be needed for new mines and infrastructure. province? However, the potential for Queensland and Australia is immense. Mr BENNETT: The Carpentaria/Mount Isa province. Because I represent the electorate of The Goss Government has a plan for mining Gladstone, I know that the minerals industry is a in Queensland. It does not let development take very important industry for Gladstone. We have place in a willy-nilly manner. It is going out into the the Boyne Aluminium Smelter for which the Goss marketplace and making sure that those Labor Government recently transferred developments happen for the good of the ownership of the Gladstone Power Station. That economy of Queensland. Major new will create 800 jobs in construction and 350 developments expected to proceed in the next permanent jobs in Gladstone. We have decade include: Century Zinc, which is a Queensland Cement and Lime. We have zinc/lead/silver mine; Cannington, which is a Queensland Alumina which, due to the smelter, zinc/lead/silver mine; Osborne, which is a copper should increase production. The port of and gold mine; Phosphate Hill, which is a Gladstone exports 20 million tonnes of coal a phosphate mine; Lady Loretta, which is a year, plus magnesia. zinc/lead/silver mine; and Dugald River, which is another zinc/lead/silver mine. Coming from the electorate of Gladstone, I know very well the importance of mining to the The province offers far more than just a people of Gladstone and the people of series of mines. A high degree of value adding is Queensland. Mining pays for jobs in anticipated, with most of the copper and lead Queensland. Mining pays the bills. Without concentrates going to the smelters at Mount Isa. mining, we would not have the value-added Supply of gas would also promote the industries such as those that I have talked about establishment of a major fertiliser industry based in Gladstone. The Carpentaria/Mount Isa mineral on the region's phosphate resources, which are province is an existing development in the produced from the linking of phosphate, natural mining and minerals sector in Queensland. gas and sulfuric acid produced by the ore treatment process at MIM. The province is regarded as one of the most highly prospective areas in the world for base It is very important to talk about the mines metals, but it is not the only region in themselves and the jobs that they create. Mining Queensland where minerals development is is about jobs, jobs and more jobs. At taking place. The Queensland Government has Cannington, 140 kilometres south of Cloncurry, moved to combat geographic and infrastructure the project feasibility is under way and an concerns that could hinder development in the exploration decline is being developed to allow immense mineral resource in the underground exploration and metallurgical bulk Carpentaria/Mount Isa mineral province in the sampling to take place. Stage 1 of the decline to State's north west. In 1992, on the initiative of a depth of 90 metres is virtually complete. Bench the Queensland Premier, Wayne Goss, scale metallurgical testing has been undertaken Commonwealth, Queensland and Northern on samples from drill cores. To date, lead and Territory Government representatives met with zinc flotation testing has been the main focus. representatives of some of the largest mining Studies are progressing on a range of companies in the world—MIM, BHP, CRA, issues related to project infrastructure, including Western Mining and Placer Pacific. The geotechnical investigations of sites for major representatives agreed to undertake an items of infrastructure, particularly the plant site Legislative Assembly 8395 22 June 1994 and tailings dams; design studies of the mill and at Osborne. Work will begin almost immediately. mineral processing plant; telecommunications Production is expected to commence in mid requirements; power station requirements; 1995. The capital cost of the development is airfield; and ground-water resources and a water estimated at $155m. We expect some 250 jobs treatment plant. BHP is working on to be created during the operation, perhaps environmental and other studies to allow marginally more during construction. preparation of the appropriate environmental CRA is maintaining a watching brief over the management planning documents. Dugald River project, but low lead and zinc prices BHP has established an office in Townsville mitigate against an early development decision. and the project will be run from there with some The estimated capital cost of development of continuing contribution by Melbourne-based that resource is approximately $250m. staff. Recently, an agreement was announced Reopening of the Phosphate Hill mine and between BHP and MIM, which will, subject to the development of the company's proposed high- results of metallurgical test work, see MIM acquire analysis fertiliser project will not proceed until a one-third interest in the project and will result in decisions with respect to the supply of natural two-thirds of the silver/lead/zinc concentrate that gas and sulfuric gas are forthcoming. Updating of is produced being sent to Mount Isa for smelting. the project EIS and studies in relation to the The estimated capital cost of development is proposed slurry pipeline route from Phosphate $300m. The most important thing to me is that Hill to Sybella Creek are being undertaken. At 200 to 250 people will be in the operational work Phosphate Hill, a construction force of over 200 force. That is a lot of jobs in only one area. is expected, with an estimated operational work I turn to the Century mine, which is 250 force of between 100 and 200. kilometres north, north west of Mount Isa. CRA This province that the Goss Government will has progressed its studies of the Century be developing will mean hundreds, if not zinc/lead/silver deposit to a point at which the thousands of jobs in Queensland, particularly resource has been delineated accurately; having regard to the downstream processing substantial metallurgical test work has been industries, the possibility of new copper undertaken; mine design and project planning refineries and the like. Overall, in the past 12 have been accomplished to at least a preliminary months in Queensland, there has been an level; studies for an environmental impact increase in exploration for base metals. In 1992- statement have been initiated and progressed; 93, mineral exploration expenditure in and a pre-feasibility study has been completed. Queensland increased by 7.3 per cent to Recently, CRA announced a decision to $118m, or 18.7 per cent of Australia's proceed with a $40m full feasibility study of the exploration expenditure. So a lot of Century project. A mining lease application over development in the minerals and mining area is the Century mine area was lodged by Gulf going on in Queensland. Minerals and Metals Pty Limited, a wholly owned The entire economy of the area I represent subsidiary of CRA. The Century project is is based on minerals, including the chemical required to submit an impact assessment factory of ICI/Minproc, where sodium cyanide is statement, called for by the Office of the produced for the gold industry. So even the Coordinator General pursuant to section 29 of chemical industries are related indirectly to the the State Development and Public Works mining industry. My area can gain a lot of jobs and Organisation Act. The granting of any mining other developments because Teco, which now leases for the project will be delayed until after owns Minproc, is going to develop a gas pipeline the EIS is completed. from the gas line to Minproc to expand that Responsibility for the Century project will be chemical industry further. assumed by a new CRA subsidiary company, Mr GILMORE (Tablelands) (4.02 p.m.): I Century Zinc Limited, which will be a holding note with some dismay that the member for company for Gulf Minerals and Metals, the mining Kurwongbah is not interested in this Matter of and land tenure holder. The estimated capital Special Public Importance debate. That indicates cost for that development is approximately the sad lack of respect that the Government $750m. Century has a total operational work backbench members have for this House. force of approximately 700, with about 300 on site at any time. I am rather pleased that the Government has chosen to debate the Mount Isa/Carpentaria I turn to the Osborne mine, which is 110 mineral province today because, obviously, it is kilometres south west of Duchess. A mining important. In terms of future development and lease was granted on 9 June 1994. The project potential, it is the most exciting area in this State. EMOS has been accepted and Placer has It will provide jobs, wealth creation and be a decided to proceed with development of a mine 22 June 1994 8396 Legislative Assembly benefit to all Queenslanders for generations to material, including our ore products and our come. energy products, into ingot form before it is The mineral deposits in the region read like exported. That is the way that this nation can a Who's Who of the mineral world centred on develop not only jobs but also create wealth for Mount Isa, and including Century, Cannington, the whole of the nation. The extension of mains Osborne, Gunpowder, Ernest Henry and grid power to the large mining operations is also numerous others. I have no doubt that many highly desirable. That is not going to become a more will follow in their wake in the years to come. reality unless power generation in the north west This area will become the driving force of the is taken seriously by this Government. economy of Queensland in the minerals I turn now to transport infrastructure. The production sense. It is, therefore, important that Government should have a task force in the the Government recognises the area as north west surveying the possibility of rail line important and needing special measures to be extensions to major mines to at least provide a taken to ensure that it is developed to its full high-quality service that is able to bring in potential. construction materials and to bring out ore, or ore In response to a question asked in this derivatives, rather than having companies House last Thursday, the Premier outlined depending upon poor roads that are broken up details of a research project that he had put in all of the time, impassable in the wet, and place involving six major mineral houses, which impossible in the dry. No great industrial was aimed at maximising the benefits to be undertaking can survive, much less thrive and gained from the development of the area. I am grow, particularly in remote locations, without sure that all fair-minded Queenslanders wish this adequate road and rail infrastructure. My project great success, as do all Queenslanders colleague the member for Lockyer will speak wish success to those mineral companies further about the matter of roads infrastructure involved in exploration and development in the when he addresses the Parliament. area. In respect of ports development, I am The Government must address other issues pleased to note that this Government has taken as well to ensure the future development of this some steps towards the development of the area. They include transport infrastructure, Karumba port. It is an important infrastructure energy and, more importantly, native title. Let me development for the whole of the region not only address those matters individually. In respect of in respect of minerals but also in respect of the energy— minerals development in the late other industries, some of which are old and some twentieth century can only proceed with of which are tentative, in that region. That port will expedition and with efficiency if there is available become the centrepiece of development in that to it sufficient quantities of reliable, high quality region, and it is a very important initiative indeed. and reasonably priced energy. That includes I trust that it will be continued into the future. both electrical and gas energy. Regrettably, this Further, we are going to have to assume Government has fallen behind the pace of some responsibility for further development and industry, and development is now far in advance future investment in the port of Townsville. of the available supplies of energy in the region. Clearly, in the future, much of the mineral During two elections, this Government promised product from the Carpentaria/Mount Isa mineral a gas pipeline from south-west Queensland to province will pass through the port of Townsville Mount Isa to provide the delivery of sufficient to the benefit of the people and industries in quantities of gas for manufacturing, industrial Townsville as well as to those people involved in heating and electricity generation. So far, the extraction of that material from the province. nothing has been done. There is no pipeline Most importantly of all, there is the matter of and, as far as can be determined, none is native title. This very vexed question is of planned. All we have heard is rhetoric. importance above all else to explorers and How can the Premier expect an industry miners in the north-west province. Access to such as superphosphate fertiliser production land is the single most important issue in the from Phosphate Hill to become a reality without minerals industry, and it is emerging as the most the basic ingredients being made available? How likely cause of any loss of potential in the area can the Premier expect the development of over the next several and possibly 20 years. Last value-added industries, such as smelting, which December, the Premier introduced the was spoken about by the member for Gladstone Queensland Native Title Bill into this House a few moments ago, to develop without access prematurely. He was determined to have it to appropriate energy supplies? Let me say that it passed through Parliament during the is far more appropriate for this nation and for the International Year of Indigenous Persons. That welfare of all who live in it to convert our raw was an honourable, but misguided attempt Legislative Assembly 8397 22 June 1994 because, subsequently, the national Native Title him to address the real issues underlying the Bill was amended over 100 times. Therefore, our future success or failure of the province. State legislation must be brought back to this Mrs WOODGATE (Kurwongbah) Parliament for amendment before it can be (4.12 p.m.): I am certainly pleased to participate in proclaimed. the debate today, particularly when the subject Further, the Premier has stated already that of the debate concerns what Minister McGrady he will not proclaim the State Bill until the has so often referred to as the engine room of outstanding matters involving compensation are this country's economic recovery, which is our resolved with the Commonwealth. That leaves an mining industry, of which we can be justifiably enormous legislative hole that is an proud in this State. More specifically, we are embarrassment for the Government, and a total discussing the Carpentaria/Mount Isa minerals disaster for industry. There are simply too many province, which is already a major contributor to unresolved issues and, therefore, too many the national economy. Mount Isa Mines Ltd is the uncertainties for companies to be able to make world's largest single mine producer of lead and expensive decisions. silver and is one of the ten largest producers of Notwithstanding the protestations by the copper and zinc in the world. However, the Premier to the contrary, many senior company Mount Isa minerals area is only part of a much officials are extremely concerned about the lack larger mineral area, the 55 000 square kilometre of a solid, reliable legislative base and about Carpentaria/Mount Isa minerals province which security of title. The Department of Minerals and stretches from Queensland to the Northern Energy is trying valiantly, I might say, to Territory, including the McArthur River basin. circumvent possible long-term problems by Geological science is unlocking the secrets issuing exploration permits utilising the of the Carpentaria/Mount Isa minerals province. Swiss-cheese approach. That is to say, any areas Major new finds since the mid-to-late 1980s suspected of possibly being subject to native include the Tick Hill gold deposit, the Century title claims are being excluded from blocks zinc deposit—referred to by the member for released or granted for exploration. This is Gladstone—the Osborne copper and gold nonsense. All that is required is for the native title deposit, the Cannington silver, lead and zinc legislation to come back into this House and be deposit, and the Ernest Henry copper and gold amended to allow the mining warden to deposit. Nobody denies that developing this determine compensation agreements on behalf region's natural resources will be an immense of native titleholders—as yet unknown—and task, but the rewards will be well worth it. allow access to the land. This can be done The north-west mineral province offers an because the minerals residing on the land that is exciting future for mineral development. It was in ultimately granted native title status will still 1992, on the initiative of our Premier, Mr Goss, belong to the Crown. that the Commonwealth, the Queensland and No royalty payments will be made to native the Northern Territory Government titleholders, and those persons will have no more representatives met with representatives of or fewer rights under the mineral resources some of the largest mining companies in the legislation than those rights held by other world—MIM, CRA, BHP, Western Mining and Queenslanders. Therefore, if the warden can Placer Pacific. The representatives at this compulsorily determine compensation meeting agreed to undertake an evaluation of agreements between land-holders and miners opportunities to accelerate development of the where agreement cannot be reached between province and to remove constraints. the parties, then it is only a small legislative step A management committee composed of to allow such determination on behalf of persons representatives of the three Governments and who have, as yet, not been identified but have five companies, under the chairmanship of Mr Alf what might be termed as "latent rights". Paton of Placer Pacific, was established to These matters simply must be resolved undertake the study using independent before such issues as land access for slurry consultants. This study was completed and it was pipelines and other transport infrastructure, presented to the management committee in environmental and land management and, most early April of last year. The study found that importantly, economic investment can be development in the region can be enhanced and resolved. I am proud to say that Queensland has accelerated through the following. First, natural much to be proud of in the Carpentaria/Mount Isa gas, together with LPG, being introduced to minerals province. And the Premier has clearly satisfy the bulk of the province's energy needs, stated his support for—and, indeed, enthusiasm replacing coal and distillate. Second, natural gas- for—the potential of the region. It is now time for based electricity generation and transmission serving some projects and on-site generation 22 June 1994 8398 Legislative Assembly using natural gas or LPG serving others. Third, undertake a feasibility study into the construction copper and lead being smelted in the province of a natural gas pipeline from south-west and metal railed to Townsville, with copper Queensland to the province. Early indications refining in Townsville. Fourth, zinc concentrate are that substantial savings could be made being transported north in slurry pipelines and through introducing gas to the region. The barged offshore for loading onto ships in the sharing of a new infrastructure, such as the gulf. Fifth, the creation of an entirely new mooted gas pipeline from either the south-west industry based on fertiliser manufacture, utilising Queensland gas fields or the Northern Territory the phosphate resources of the Duchess district. Armadeus Basin Field or port facilities in the gulf Sixth, lower freight charges on the Mount or at Townsville, could make facilities that could Isa-Townsville rail line to achieve the reasonably be said to be beyond the reach of an maintenance of current freight volume. Seventh, individual operator available to a group. having Mount Isa City providing significant and There is also a study being undertaken of a competitive heavy engineering and construction slurry pipeline from the Century zinc, lead and services. silver deposit to Karumba. It is all about After considering the details of the study developing Queensland's potential. The report, the committee recommended that development of Australia's richest minerals working groups be established to develop province is about companies, their shareholders options for the supply of natural gas, to develop and jobs for people. As the member for options for the transport of concentrates by Gladstone said, it is about jobs, jobs, jobs, and slurry pipeline to a new gulf port, to optimise the the quality of life for all Australians. This provision of other infrastructure, and to identify north-west minerals province offers an exciting and gain approval for lands for common use of future for minerals development in this State. facilities. The study further predicted that new The Queensland Government initiative to which I projects which could be developed in the region have referred previously which established this could be expected to boost the economy by $25 working group seems to be working very well, billion to $30 billion—and that is not peanuts in although there are many complex issues still be anybody's language—in new export revenue resolved. over the next two decades. There are now seven major new Mining, processing and smelting have all developments expected to proceed within the been considered, and an investment of up to next decade. These are Century, Cannington, $2.5 billion over the next 10 years will be Lady Loretta and Dugald River zinc, lead and required. The setting up of this management silver deposits, the Osborne and Ernest Henry committee represents a unique initiative in the copper and gold deposits, and the Phosphate development of Australia's resources with Hill phosphate deposit. The preliminary findings business rivals, commercially competitive of an evaluation of development opportunities in interests, cooperating to seek an improved the province by the Commonwealth/State outcome for both themselves and the wider industry group indicate that the region is likely to community through such cooperative attract capital investment of over $2 billion over development rather than maintaining an the next 10 years and increase export revenues independent approach. by more than $25 billion. As I said, the study's conclusions and More than 8 000 jobs—and, again, this is recommendations were presented in 1993 and a what it is all about—2 000 permanent and more second phase of the study is now under way. than 6 000 indirect jobs, will be created in the This Government/industry study estimates that province by these developments and the new the Carpentaria/Mount Isa minerals province infrastructure associated with them. The speed could produce $30 billion in export revenue over of development in Queensland's north west will the next 30 years. What we have here is a be greatly influenced by the availability of potential annual production of 1.3 million tonnes energy. The projected needs of projects and of zinc concentrate, 325 000 tonnes of copper options for supply of energy are presently being concentrate, 270 000 tonnes of lead considered. concentrate, and an additional 700 000 tonnes As to capital investment—the estimates are of fertiliser by combining the phosphate from the that between $2 billion and $2.5 billion will be Duchess deposit with the by-product from gas needed for new mines and infrastructure. piped to the region to fuel mineral However, as I said, the potential for Queensland developments. and indeed Australia is immense. But this really is Work is being carried out on infrastructure about more than just mines. This province offers options for the development of the region. For far more than just a series of mines; a high example, consultants have been appointed to degree of value adding is anticipated, with most Legislative Assembly 8399 22 June 1994 of the copper and lead concentrates going to the development. We must consider a number of smelters at the home town of the Minister, Mount issues when evaluating the success or otherwise Isa. As I said, the home town of our Minister for of the Government's involvement in this project. Minerals and Energy, Mr McGrady, has a proud As has been pointed out, it has been record as a minerals producer. It produces fine discovered that a large amount of mineralisation minerals and fine men. However, I must say that is present in the region. The member for the pre-eminent position of Mount Isa Mines in Tablelands raised the issue of the access to land the north west of this State is now being for exploration. The National Party has always challenged by a spate of new discoveries and been strongly of the view that we should never potential developments. lock up our potential natural resources without Mr McGrady: Don't go too far. even knowing their location. A commercial Mrs WOODGATE: Obviously, I did not decision should be made by Government after it have this speech checked by the Minister. knows where the resources are located and whether it intends to mine the area or whether Ongoing exploration by major Australian the area will be opened to commercial operators. mining houses is revealing untapped mineral However, over a number of years the Labor Party riches in this region. Development of these new has said blandly that it will devote a certain discoveries could lead Mount Isa to become an percentage of this State to national park. We even greater focus and population centre for a have asked the Minister about the input that his major mineral production province. Although department has had into whether a certain area mineral deposits were found and worked in the should be declared national park and whether region over a century ago, and even though the the level of mineralisation in that area has been world-class Mount Isa lead, zinc, silver and investigated. The answer is always that the copper ore bodies have been mined for Minister has attempted to represent the views of decades, the past few years have ushered in a the mining industry. However, the bare facts new era of discovery. reveal that nothing of the sort has occurred. The area is proving to be more highly It is extremely important to the future wealth mineralised than anyone could have possibly of this country that we ensure that we know the imagined a decade ago. These discoveries have location of all of its minerals. We acknowledge been made possible principally because of new, that that is a very difficult task. For example, the sophisticated technologies used in exploration two magnificent slabs in the Century deposit which have allowed targets to be defined even above Mount Isa that are buried well below the though they may occur beneath considerable ground did not occur as an outcrop; they were thicknesses of younger rocks and sediments. found by chance when someone was going back This has effectively trebled the area of north- over an old digging that was mined 100 years west Queensland recognised as prospective for ago. Only by drilling and utilising the modern major metallic mineral deposits, turning the techniques of exploration were those two 50 000 square kilometre inlier into a 150 000 deposits discovered. It would be most square kilometre inlier, with 100 000 square irresponsible if we allowed to be tied up land that kilometres hidden under sand and younger has previously been declared to have no mineral rocks. deposits without a thorough exploration first This minerals province—which, as I said at having taken place. the outset, is already a major contributor to the This Government will be judged on the national economy—represents enormous promise for our State, which augurs well for a infrastructure that it puts in place to ensure that promising and exciting future for development in this development lives up to its full potential. This the area. If this promise is fulfilled, as I believe it Government has dillydallied around on the issue will be, the economic future of our country is of the supply of gas to the area. In that regard, guaranteed. extensive negotiations took place with Mount Isa Mines, which hopes to be one of the large Mr FITZGERALD (Lockyer) (4.22 p.m.): In consumers of gas supplied to the province. joining the debate on the importance of the However, at the same time, Queensland Rail was Carpentaria/Mount Isa mineral province to this doing a deal to allow coal to be carted at a State, the Opposition spokesman for Minerals different rate. As a result, the gas deal was and Energy, the member for Tablelands, said placed in jeopardy. that we are looking forward with much enthusiasm to this project going ahead. The Mr McGrady: That was under your member for Kurwongbah mentioned that the Government. amount of mineralisation present in the region is Mr FITZGERALD: Yes, but the Minister very promising. This Government will be judged was not aware of the actions of Queensland Rail on how it administers this promising in that regard. 22 June 1994 8400 Legislative Assembly

There are times when Governments have to is at risk of becoming known as a hole in the construct gas pipelines. I draw the attention of ground. We are very handy to South East Asia the Minister to the fact that, when in Opposition, and other countries that have a demand for our his predecessor criticised the then National Party mineral products. We are close to shipping Government for constructing a State gas routes, and European markets can be accessed pipeline. When that gentleman came to from the northern side of Australia. Government, one of his first activities was to Unfortunately, most of our product is open the gas pipeline—— exported raw or with minimal processing. Korea Mr McGrady: Things change. imports our coal and our iron ore in a crushed Mr FITZGERALD: Yes. The Minister has form only. The large iron ore smelters in Korea been enlightened. In Opposition, he was further process the product, and it is used by that completely wrong. I know that things change. I country's industry to build ships which are then know that what the Minister is saying today may sold throughout the world. In Western Australia, prove to be wrong in the future. iron ore is merely being extracted and exported without processing having taken place. There It is vital that adequate road infrastructure be has been no attempt to develop a ship-building constructed in the area. It is the Government's industry in Australia. Whenever that topic is responsibility to provide infrastructure when the mentioned, people refer to it as being a labour- private sector cannot do so. It is the intensive industry. In fact, it is well known that Government's responsibility to service this nowadays ships are largely designed by province adequately so that all Queenslanders computer and assembled by robots. Labour is can enjoy the benefits of the royalties that will still a factor in the equation, but it is becoming flow from the minerals extracted from it. The less and less so. I put it to the Minister that, Government must construct bituminised, all- unless the Government provides adequate weather roads from various routes to the north- infrastructure, the possibility exists that west minerals province. Such a capital Queensland could become just another hole in contribution is vital and must be made. The the ground. Each of these mines will merely Government will reap enormous benefits from extract the product from the ground and export it the royalties that it will charge on the minerals that overseas as quickly as possible. That is a real are extracted from the province. Therefore, the shame. Government must put in place adequate Let us face it: very few companies have infrastructure. Of course, the funding for that loyalty to Queensland. Mount Isa Mines is an infrastructure will have to be borrowed. However, exception to that rule. That company tries to win I believe it is important that the major centre of population—which is the south-east as much market share as possible in every corner—and coastal areas such as Townsville country. In the past, Mount Isa Mines has have access to the province via a first-class road. discovered that the best way to win market share A number of highways will have to be is to enter into a partnership with other countries. constructed. What it does, of course, is send over product which has had a minimum amount of processing Consideration must also be given to railway done in Australia and the bulk of the processing lines. We have often heard the member for takes place overseas. I know that fingers were Gregory speak about the importance of having burnt in relation to Germany and Japan. I know Longreach connected to the Northern Line by a that that happened in regard to the lead smelter heavy-duty railway line. It is vital that such works in England. Some countries go to Italy for projects go ahead. The member for Tablelands their metal processing. However, much of the spoke about the need for a port. The Gulf of processing of minerals that have come from Carpentaria is a fairly shallow body of water. It is Australia occurs close to the export markets. That difficult for heavy ships to access that area. The means that all of the value adding is taking place options that have been considered include in those other countries. With that occurring, running slurry lines to Sweers Island, running Australia will just become a hole in the ground. If slurry lines to the Karumba Port and barges that happens, we have failed, and this running to the Weipa Port carrying the product of Government has failed unless it puts in place the Century mine. However, the fact remains that infrastructure and works as hard as it can to all mines must have access to the sea. overcome what I see as a major problem. I turn to another issue. If there is no power I have already raised a number of issues, but infrastructure, if there is no population base and I wish to raise also the matter of the supply of if people cannot access the area easily, how on electricity to that area. We know that it is isolated earth will we process the product extracted from from the State grid and that it has its own this region? Unless we can encourage further generating capacity. Of course, the State grid processing of our mineral products, Queensland may be connected to the grids in other States, Legislative Assembly 8401 22 June 1994 and that is another aspect that has to be looked township of Cloncurry if—and I emphasise the at. Metal processing cannot occur in that region word "if"—the Ernest Henry project, which is just with gas alone. There will be a need for gas, one of a number of projects, goes ahead. Of electricity, roads, port infrastructure and workers. course, north-west Queensland is the core of a There will be a need for a combination of all of great nation; it is the oasis in the desert. The these things so that the most wealth that can be small township of Cloncurry has a population of 2 generated for the people of Queensland is 500. It is basically a cattle town. Its railway workers generated in the north-west province. played a part in its history, and Cloncurry certainly Hon. T. McGRADY (Mount Isa— Minister features in the folklore of our State and our for Minerals and Energy) (4.32 p.m.), in reply: nation. As has already been mentioned, Time is short in this debate and many points have Osborne has already been given a mining lease been raised to which I obviously do not have time and Placer Pacific has taken the decision to go to respond. However, I would like to make one ahead with its development, and I am sure that point about locking up our resources, which the Century, Cannington, Dugald River, Lady Loretta member for Lockyer referred to a few moments and these other projects will all be given the go ago. This Government has a record of releasing ahead. land for mining in this State which is unparalleled Ernest Henry, if it goes ahead, will employ by the actions of any previous Government. I 120 people. Those people will live in the refer in particular to the release of 300 000 township of Cloncurry. I am informed that the square kilometres of land in the Bowen Basin for mine itself will be worked by some 110 coal exploration. I reject the accusation made by contractors who themselves will live at the mine the member for Lockyer. site. Ernest Henry mine will produce between When we discuss the mining industry, this 6 million and 9 million tonnes of ore. It will House rises to great heights; we seem to get produce some 350 000 tonnes of concentrate, away from the personal abuse which from time to and that will be converted to about 90 000 time comes from the Opposition. I think that the tonnes of copper in its metal form. It will also debate today has been very positive. The produce some 120 000 ounces of gold. As I said Carpentaria/Mount Isa mineral province is previously, Ernest Henry Mine is about 40 potentially the most exciting mineral kilometres from Cloncurry and, therefore, a new development yet seen in Australia. The mineral road will have to be built from the township of barge will mean jobs, overseas earnings and Cloncurry out to the mine. We have already development, and the treasure trove of minerals mentioned the need for power. If this mine goes buried beneath the arid surface will have a ahead, a new power station will have to be built, tremendous impact on Queensland's and, generating some 35 megawatts of power, 25 indeed, Australia's future. megawatts of which will be used by the mine itself. This, besides providing the power to the As has been mentioned by some of my mine, could also mean a more reliable supply and colleagues, over the next five years $1.5 billion source of power to those people living around will be invested in this area, and in 10 years that the mine itself. One hundred dwellings will be figure will increase to some $2.5 billion. Some 6 built in the township of Cloncurry. The 000 jobs are expected to be created and export population of Cloncurry, which is now 2 500, will revenue for our nation to the tune of some $30 be increased by about 350—an increase of billion is expected. I suppose it is important that between 12 per cent and 15 per cent. That will we ask: how will this happen? The answer has mean an improvement in the quality of life for already been given by my colleagues, that is, those people. It will mean more teachers, more because this Queensland Government, under nurses, more business for the local stores and the leadership of our Premier, called together a more railway people. group of people comprising representatives of the six major mining companies in this nation, The mine will affect not only Cloncurry but together with representatives from the Federal also Mount Isa and, in particular, Mount Isa Mines, Government and the Northern Territory because all of those concentrates will be railed Government. That is how it all started. from the mine site to Mount Isa itself. Besides the concentrates from Ernest Henry, we also expect On many occasions I have mentioned the about one and a half million tonnes of tremendous wealth and potential of the concentrates from Cannington to be railed into Carpentaria/Mount Isa mineral province, but Mount Isa. It means that the life of the Mount Isa today I want to talk about what this province will mine and, in particular, its smelter, will be mean to the individuals who live in that part of guaranteed for many years to come. It will mean Queensland and the effect it will have on one of better job security for those people who are the small towns. Today, I am going to give this presently employed at the surface operations at House some idea of what it means to the small Mount Isa Mines together with the additional 22 June 1994 8402 Legislative Assembly workers who will be required to treat the ore from are told that the Minister will actually put forward both Cannington and Ernest Henry. The mine this proposal for the House to discuss the will also mean more work for the City of importance of the Capricornia/Mount Isa mineral Townsville by way of its railway, by way of its port province to the economy of Queensland. That is and by way of those people employed at copper something that we accept. The Government did refineries. However, there are some problems not have any problem coming into this House which have to be overcome. Of course, one of with that proposal. Every member of this House those problems will be the amount of water used knows how important the mining industry is to and how we access it for the mine. I have no the economy of Queensland and Australia. One doubt that those problems will be overcome. has only to look at the Budget papers to One other aspect of this mine which no-one understand that. else has touched on yet is part of the folklore of We know that the industry has grown over this State and, in particular, north-west the past decade or so. It has grown from Queensland. I refer to the small gougers. I something like 6 per cent of gross State product believe that if this project goes ahead, there is no to over 7.5 per cent today. We know how reason why those small gougers cannot take important mineral exports are for Australia. The their ore into Ernest Henry to be treated. So, Minister gave some figures for this, as did other therefore we have the possibility of an industry members. We understand that, in the past 30 to which has been in a depression for a number of 40 years in Australia, mining has contributed a far years actually taking off again. Already, $7m has greater percentage to our export earnings than it been spent by this company and we have not ever did previously. In the 1950s, it represented even started. about 2 per cent of our exports. In the last couple Some comments have been made today of years, it has represented about 40 per cent of about the pipeline. As all honourable members our export earnings. know, our Government has been extremely Today, the Government should have been active in trying to facilitate the pipeline from the saying, "Yes, we understand the importance. We south west up to the north west. Negotiations know we are going to have the agreement of the are taking place on a daily basis. I have made it Opposition in that. We are going to tell you the perfectly clear that once those contracts are specific things we have done and the specific entered into, we would obviously prefer private things we are going to do to make sure it enterprise to build the pipeline. But if need be, happens." But what did we get? We did not get once we can guarantee the requirements of the one thing about that from Government speakers people in the province, the State Government or the Minister. The members for Gladstone and will build the pipeline itself. Kurwongbah told us nice, rosy things about what I want to see benefits coming to the people was going to happen in Gladstone and in the of north-west Queensland. I do not believe it is mineral province. The Minister spoke essentially sufficient for mining companies simply to come about a small town in his electorate. I agree that it in, take out the wealth and leave nothing behind. is a very important town and a very important part It is important that these companies leave of the development, but it is still just a minute something behind and that the people who live section. in north-west Queensland share in the bounty of The Minister did not say what he has done riches that will come from the Carpentaria/Mount as a Minister, what actions he has taken, what Isa mineral province. decisions he has made or the specific things he I have to refer to native title. I do not want to has done to enable that mineral province to get involved in that debate. It has been handled develop the way it should. That was utterly by the Premier. Actions speak louder than disappointing. Government members had the words. Mining companies have announced that opportunity to come into this place and really they are prepared to invest billions of dollars in make a contribution, but they squibbed it. that area. It is quite apparent to me that native title Mr Nunn: Do you know anything about is not a problem to those companies. I believe this? the recent $26.5m mining package that we Dr WATSON: The honourable member is announced will go a long way towards restoring part of a Government that has done nothing in some further support for the mining industry and this area. He ought to keep his thoughts to the people who comprise it. This mining package himself until the Government and the Minister is simply providing the building blocks for the can say, "We have done the following 15 mining industry to continue to develop. things"—specific things to help development in Dr WATSON (Moggill) (4.42 p.m.): What a that area, not just how important it is—"and that pathetic, disappointing debate on the part of the we have five companies up there taking the risks, Government. We come into this place, and we putting in the money, developing the area and Legislative Assembly 8403 22 June 1994 creating jobs." That is all true. We understand causing the mining industry problems, that. We want to know what specific things the particularly in that area. I agree that they are not all Government is going to do. It is up to the State Government issues. Let me refer to a few Government to do something, not to mouth that are critical to the development of the mining platitudes or make motherhood statements. This industry in this State. They are the reduction and is the Government—the Executive. It should tell eventual removal of tariffs and other forms of us specifically what it is going to do. assistance to industry; the removal of remaining This Government specialises in developing export controls; an internationally competitive committees. The one thing the Minister said was, taxation regime, including the removal of taxes "Yes, the Premier got together a committee." on business inputs, such as payroll taxes, sales The member for Kurwongbah read out the tax and fuel excise; productivity improvements in members of that committee, the five companies rail, electricity, coastal shipping, waterfront and and the representatives from Queensland, the port services; wage determination on the basis of Northern Territory and the Federal Government. productivity; and improved procedures for The Minister said, "We created a committee. It gaining access to land for exploration and employed some consultants." That is the typical development and greater certainty in approach of this Government to looking at environmental policy and approval processes. issues—create a committee, employ consultants I understand and agree that they are not all and get a report going. the province of the State Government. A number The member for Kurwongbah read out of those things are within the province of the some of the things that the Minister has said. Let Federal Government. I understand that we me remind the House of that. The Minister was cannot hold the Minister responsible for things talking proudly about this at a mining seminar last that are not within his portfolio. But the Minister year, and it was published in an article in the could have said, "There are a lot of things there Mining Review, which stated— that are the responsibility of the State Government; for example, the wage "After considering the details of the determination process in the area, the rail and study report, the committee recommended electricity and port services"—issues that his that working groups be established to: colleague the Treasurer and others have talked Develop options for supplying natural about in this House. He could have said, "We are gas. doing the following things to ensure that we Develop options for transporting have the proper port facilities." concentrates by slurry pipeline to a Mr Nunn: He's not boastful by nature. new gulf port. Dr WATSON: He is not boastful because Optimise provision of other he has not done anything. That reminds me of infrastructure. that story about Attlee, when Churchill was Identify and gain approval for lands for challenged by a reporter about whether or not Mr common-user facilities." Attlee was a modest man. Churchill said that, yes, he was, because he had a lot to be modest A year later, the Minister comes into this place about. I agree with the member. If the Minister and puts forward a proposal to the effect that it is had really done something, he would be able to an extremely important development for say, "These are the areas that are the Queensland's economy and for developing jobs responsibility of the State Government in rail, and things like that. The Minister went no further electricity, port services, wages and productivity. than to say what he said in that speech 12 These are the things that I, as the Minister, have months ago. He could have said, "Look at those implemented. These are the decisions I have options. Look at what the working parties made to ensure that the proper facilities are proposed. This is what has happened. These are provided in this area to ensure that the the decisions I have made. These are the actions development can go ahead." that have taken place. This is what I have done to cause further development." Instead, When a matter was not in his field, when it Government members spoke for 30 minutes, was the responsibility of the Federal and they did not come up with one proposal. If Government, he should have said, "On 15 the Government believed in this motion, that occasions I have pressed those points with the would not be the kind of reaction that I would appropriate Minister in the Federal Government have expected from the Minister and other and this is the sort of response that I received. Government members. I expected something This is what I am trying to achieve with the quite specific. Federal Government." That is the sort of debate that we should have heard. Those are the sorts There are things that the mining industry in of points that should have been raised by general has identified in the past—things that are 22 June 1994 8404 Legislative Assembly

Government members in this debate, not have risen over 20 per cent over the past five motherhood statements or generalisations that years, generating an additional $200m annually could have referred to any part of the mining in export earnings. Expansion offers other industry in Australia. The Minister had the benefits to the industry. It enables individual opportunity. He chose the topic and the time for farms to expand their area of cane and operate the debate, yet he could not produce, and more efficiently. Average farm sizes have neither could any Government member. That is increased from 63 hectares of assignment to 70 the reality. hectares in the last five years. This is despite a This is a critically important issue for rise in the number of farmers of some 500. Queensland. The State Government must make Furthermore, an expanded sugar industry has some decisions. It must stop holding committee been essential in generating income and major meetings, hiring consultants and considering capital developments in rural cities and towns. reports. It must go ahead and make some This is just another manifestation of this decisions. It must do something to facilitate Government's real commitment to directly the development of the region. If we are decentralisation and strong regional to realise the potential of the discoveries at development. Cloncurry, the CRA discoveries and the MIM This Bill then has one simple purpose—to discoveries in McArthur River across the border place beyond doubt the authority of the in the Northern Territory, we need action and Queensland Sugar Corporation to administer this decisions by the Government, not more rhetoric. expansion program and to ensure that its Mr SPEAKER: Order! The time for the potential benefits are realised to the maximum debate has now expired. possible extent, for it is essential that the current program of expansion be structured to maximise the benefits and to reduce uncertainty. In earlier SUGAR INDUSTRY AMENDMENT BILL days, many assignments were not put into (No. 2) production, leading to concerns about the Hon. E. D. CASEY (Mackay—Minister for effects on milling and transport capacity of Primary Industries) (4.52 p.m.), by leave, without unused allocations. notice: I move— As a result, the Queensland Sugar "That leave be granted to bring in a Bill Corporation took steps designed to remove for an Act to amend the Sugar Industry Act these uncertainties and to ensure that 1991." assignments became effective. Allocations are now made on the basis of real demand for new Motion agreed to. assignment as agreed by local boards. Successful applicants must make assignments First Reading effective by planting cane in the season for which assignment is granted. Bill and Explanatory Notes presented and Bill, on motion of Mr Casey, read a first time. Earlier this year, the corporation made the Sugar Industry (Assignment Grant) Guideline 1994 which gave effect to another round of Second Reading expansion. Subsection 10 (2) of the guideline Hon. E. D. CASEY (Mackay—Minister for imposed a condition on people who took the Primary Industries) (4.53 p.m.): I move— benefit of a cane assignment in the expansion. The purpose of the condition was to prevent "That the Bill be now read a second speculating on the value of assignment and time." encourage the productive use of assigned land. One of the major planks of the Goss Labor The policy is clearly laudable. It is also clearly Government's policy for the Queensland sugar within this Parliament's delegation to the industry has been its commitment to a program of corporation under the Sugar Industry Act which expansion. That program has been in place since empowered the corporation to impose the 1989 season, and in that five-year period conditions on assignments. Queensland has witnessed an enormous boost However, the Subordinate Legislation to the total area of land used in growing cane of Committee, to which this House has entrusted some 22 per cent. specially the role of scrutinising subordinate This expansion has been fundamental to legislation, perceived certain difficulties with the present strength and vitality of the section 10 (2) of the guideline. Given that Queensland sugar industry as it has enabled the dispute regarding these difficulties existed, I industry to further advance its position in an decided to take this amendment to the Sugar increasingly competitive world market. Exports Industry Act to Cabinet so as to place beyond Legislative Assembly 8405 22 June 1994 any doubt the powers of the corporation to There is no doubt that over recent years impose conditions of this nature. The purpose of pressure on our fish stocks has increased. this amendment Bill then is simply to clarify the Improving efficiency and increased technology powers of the corporation in administering the among commercial fishers, as well as increasing expansion program and to make it clear that the numbers and skills of recreational fishers, has corporation is able to implement policies added significantly to the pressure on our designed to ensure that the industry gets stocks. Furthermore, in some cases maximum benefit from assignment expansions. I development throughout the State inevitably commend the Bill to the House. has resulted in some degradation or loss of Debate, on motion of Mr Perrett, adjourned. fisheries habitat. This Bill will provide significantly enhanced management mechanisms and controls to meet all of these challenges. The Bill FISHERIES BILL recognises the Government's commitment to the Hon. E. D. CASEY (Mackay—Minister for principles of ecologically sustainable Primary Industries) (4.57 p.m.), by leave, without development in protecting and managing our notice: I move— fisheries resources and associated habitat. "That leave be granted to bring in a Bill The Bill simplifies the organisational for an Act for the management, use, responsibilities for fisheries management in development and protection of fisheries Queensland. It reforms the previous resources and fish habitats and the Queensland Fish Management Authority from a management of aquaculture activities and representative body to an expertise-based body for related purposes." to be called the Queensland Fisheries Management Authority. The significance of this Motion agreed to. is far reaching in that persons appointed to this new body will be appointed on the basis of their First Reading skill and expertise in various aspects of fisheries management. They will not be there simply to Bill and Explanatory Notes presented and represent a particular sectional interest. Bill, on motion of Mr Casey, read a first time. This authority will now be directly responsible for the management of all naturally Second Reading occurring fisheries throughout the State. The Hon. E. D. CASEY (Mackay—Minister for Department of Primary Industries will now be Primary Industries) (4.58 p.m.): I move— directly responsible for the farming of fish, that is aquaculture activities, for the protection of the "That the Bill be now read a second environment and fish habitat, and for certain time." quarantine matters relating to fish diseases. The Fisheries Bill will provide the foundation The Bill provides for the formation of for fisheries management in Queensland for management advisory committees and regionally many years to come. It represents the based zonal advisory committees to report to the continuation of my determination as Minister for authority. These committees will be widely Primary Industries to modernise policy and in representative of all interests in fisheries and will doing so review all significant legislation for deal with the technical day-to-day issues of Queensland's primary industries. This has fisheries management. They will enable local already been done for the sugar, dairy, grain, input into decisions and improve debate about meat, egg and livestock industries. This Bill is the the many issues which affect particular regions. culmination of extensive discussion and consultation with all sectors of the fishing The Bill provides for the formation of a industry. Queensland Fisheries Policy Council, which I will chair, and which will include the leaders of Under the previous Government, the representative organisations throughout the management of the fishing industry was divided industry, as well as other significant between the Fishing Industry Organization and organisational groups and departments. This Marketing Act 1982 and the Fisheries Act 1976. body will provide strategic policy advice to myself These Acts were deficient from a policy as Minister, but will not be involved in the day-to perspective and constrained development of day-management of fisheries. modern fisheries management. This Bill repeals both previous Acts and updates and modernises The Bill is in the form of enabling legislation fisheries legislation to give it the powers needed as it provides the framework for the development to protect our fisheries resources. of particular management arrangements for all fisheries and their associated habitat in Queensland. 22 June 1994 8406 Legislative Assembly

The Government's recent decisions As many of our fish stocks move freely following the review of recreational fishing in through the waters of other States and the Queensland are also incorporated into this Bill. In Commonwealth, the Bill provides for appropriate many cases, there will be subsequent agreements to be made between Queensland regulations and management plans developed and the Commonwealth Government or between under this Bill. a number of States and the Commonwealth The Bill provides additional powers to allow Government, to ensure efficiency in for the development of particular fishery management of the resource. management plans for certain fisheries or for In many cases, such agreements have in the fisheries in particular areas. The development of past, and will continue to result in Queensland these management plans represents a new obtaining greater responsibility for those fish initiative and provides a much more flexible and stocks adjacent to our coastline. Following more powerful intervention mechanism which requests from industry, the new Bill provides can be tailored to suit the special needs of increased penalties for offences and will also particular fisheries or areas. operate in conjunction with an "on the spot" fine In the development of these management provision to be operated through the Justices plans, the Bill provides for appropriate Act. This will relieve the burden of court consultation with user groups and interested appearances by inspectors in certain cases. parties and for the distribution of a draft Provision is made for other persons to be management plan prior to the management appointed as inspectors in addition to officers of arrangements being finalised. the Queensland Boating and Fisheries Patrol Within these arrangements, it is also and of the Queensland Police Service. This will possible to develop management plans for also facilitate enforcement and education particular fisheries of interest to Aboriginal and required for improved management of the Torres Strait Islander groups. The provisions of resource. the Bill with regard to Aboriginal and Torres Strait Environmental issues are given enhanced Islander use of fisheries is consistent with the attention through the ability to declare fish recent State and Commonwealth native title habitat areas into freshwater areas, as well as legislation. marine areas, as was previously the case. Powers In the development of this Bill, there has are also provided for rehabilitation of degraded already been substantial consultation. This has areas under certain circumstances. occurred through the review of recreational Of course, many of the new initiatives in the fishing in Queensland, a discussion paper legislation will require additional funding and released in August 1993, Queensland Fisheries appropriate powers for fees and charges are Policy and Legislation and through the release of provided in the legislation and will be discussed an exposure draft of the Fisheries Bill in in consultation with industry prior to introduction. December 1993 for further public consultation. Through subordinate legislation and the The interim Queensland Fisheries Policy development of management plans, the full Council gave the principal interest groups the range of intervention mechanisms needed to opportunity of working together in drafting the protect fisheries will be available. This includes Bill, and I am pleased to say there is unanimous fish bag limits, minimum sizes and spawning support for the content of this Bill by those user closures, seasonal closures, limited licensing groups. Included on this interim policy council schemes, as well as quota management and area are representatives of commercial fishers, management where necessary. Special attention recreational fishers, the Aboriginal and Torres will be given to enhancing recreational fishing Strait Islander Commission, the Great Barrier while maintaining the important role which Reef Marine Park Authority, marketers, charter commercial fishing plays in our community. boat representatives and the Department of Necessary appeals facilities are carried Environment and Heritage. The Queensland forward in the legislation through the Fish Management Authority has also played a establishment of the Fisheries Tribunal. This will significant role in the development of the Bill. provide an avenue for appeal for those who The role of recreational fishing in the consider that decisions adversely impact upon community is recognised and enhanced through them. greater involvement in the decision-making I am confident that this Fisheries Bill will processes. The Bill will provide a framework to provide all the necessary tools to ensure both a encourage the further development of the viable commercial fishery is maintained in the State's aquaculture industry and also provide State and expanding opportunities are provided increased controls against the possibility of the spread of any diseases in fish. Legislative Assembly 8407 22 June 1994 for recreational fishing, which provides quality legislation would, by itself, create a society in leisure time to many Queenslanders. which human rights are universally respected. The interests of our traditional inhabitants What that legislation did, however, was to have been protected, while at the same time provide legal protection against the most ensuring fair access by all to the resource. obvious sources of discrimination and, beyond I am particularly pleased with the that, establish a standard. The legislation was an cooperation of all parties from the industry and announcement by the Goss Government that other community and organisational groups in gratuitous discrimination is inappropriate. the development of this Bill. It has the necessary It was a signal which established a new blend of traditional management intervention normative standard of civilised behaviour in mechanisms combined with more innovative and Queensland. That, as much as the specific rights new forms which will enable a flexible approach established under the Act, was the purpose of to the various management needs of the the anti-discrimination legislation. different fisheries throughout Queensland. The One of the things that the Act also did was Bill is already the envy of other jurisdictions and, to announce the Government's intention to once again, the Goss Labor Government is in the abolish compulsory age retirement effective forefront of legislative reform for efficient 30 June 1994. The Government thought it industries, and a balanced approach to the appropriate to have a phase-in period of two protection of resources and people's rights. years so that people would have the opportunity Under this Bill, I am sure the fishing industry to make any necessary adjustments in planning will consolidate and grow and will continue to for their future. provide economic prosperity and recreational This Bill effects the transition to the abolition leisure activities to all Queenslanders. I of compulsory age retirement. It abolishes commend the Bill to the House. compulsory retirement for public servants and all Debate, on motion of Mr Perrett adjourned. workers who are covered by retirement provisions in statutes, orders and awards, as well as industrial agreements, certified agreements ANTI-DISCRIMINATION AMENDMENT and enterprise flexibility agreements. Other work BILL agreements, not mentioned above, that set Hon. D. M. WELLS (Murrumba— compulsory retirement ages and are in force on Minister for Justice and Attorney-General and 30 June 1994 are preserved and will continue to Minister for the Arts) (5.07 p.m.), by leave, be valid for any workers covered by those without notice: I move— agreements. However, the status quo is "That leave be granted to bring in a Bill maintained with respect to the compulsory for an Act to amend the Anti-Discrimination retirement of certain categories of essential Act 1991 and for related purposes." services, for example, fire, police and rail. Motion agreed to. Judges would also be exempt. There was an amendment to the Australian Constitution in 1977 to give judges a compulsory retiring age of First Reading 70. This was carried by the people of Australia at Bill and Explanatory Notes presented and a referendum. Although the Constitution does Bill, on motion of Mr Wells, read a first time. not apply to State judicial appointments in this respect, in order to maintain consistency judicial officers in this State are exempted and will still Second Reading have a compulsory retirement age. For too long, Hon. D. M. WELLS (Murrumba— people who have reached the age which has Minister for Justice and Attorney-General and traditionally been the age of retirement have Minister for the Arts) (5.08 p.m.): I move— been subject to indignity. They have been told "That the Bill be now read a second they are no longer of any use to the work force time." and are to be thrown on the scrap heap. It is with great pleasure that I introduce this The purpose of this Bill is to remove that Bill. Honourable members will recall that when insult to people of that age in both the public and the Anti-Discrimination Act came into force on 30 private sectors. Prior to the introduction of both June 1992, discrimination on the basis of age the Anti-Discrimination Act and this Bill, the was prohibited in work and in work-related areas. Government considered the labour market At that time, I said that the Government did not impact of the abolition of compulsory retirement. believe that the passage of anti-discrimination It is expected that retirement behaviour of employees will not change significantly and less 22 June 1994 8408 Legislative Assembly than 0.5 per cent of the current work force will assent, that is, from 19 August 1992. The effect choose to continue employment beyond age of section 48 was that, generally, the Freedom of 65. There is also no link between the abolition of Information Act would not override secrecy compulsory retirement and the creation of jobs provisions which came within that section in for youth and initial job seekers. other Queensland legislation for a period of two The experience of other jurisdictions in years. which compulsory retirement has been When Cabinet considered the freedom of abolished has been uniformly that labour force information legislation, it also determined that the participation rates of older workers have Queensland Law Reform Commission should continued to decline. What is significant is that review all existing secrecy provisions in people who subsequently reach that age now Queensland legislation with a view to its can make an informed choice of their own free recommending which of these existing secrecy will. This Bill provides them with the dignity of provisions should continue to prevail over the free choice. It is a human rights issue and not an Freedom of Information Act after the scheduled industrial or economic issue. For these reasons, I expiry of section 48. commend the Bill to the House. The Law Reform Commission, upon Debate, on motion of Mr Beanland, receiving this reference, wrote to the chief adjourned. executives of all Government departments requesting that each department provide FREEDOM OF INFORMATION (REVIEW relevant information about legislation which it OF SECRECY PROVISION EXEMPTION) administered. The commission then examined AMENDMENT BILL each of the provisions identified by this process Hon. D. M. WELLS (Murrumba— to determine whether they were within the Minister for Justice and Attorney-General and present section 48 (1) and then considered Minister for the Arts) (5.12 p.m.), by leave, whether the exemption presently given by that without notice: I move— section should continue to have full force and "That leave be granted to bring in a Bill effect. for an Act to amend the Freedom of In considering whether a secrecy provision Information Act 1992 about the exemption was covered by the present section 48 (1), the for matter to which the statutory secrecy commission applied the principles established in provision applies, and for other purposes." a number of Full Court of the Federal Court Motion agreed to. cases—for example, News Corporation Ltd v. National Companies and Securities Commission, (1984) 52 ALR 277. In these cases, for a secrecy First Reading provision to come within the equivalent provision Bill and Explanatory Notes presented and in the Commonwealth legislation to section 48 of Bill, on motion of Mr Wells, read a first time. the Queensland Freedom of Information Act, it was necessary that the information which was subject to the prohibition on disclosure be Second Reading categorised by reference to its inherent characteristics or qualities—that is, that a genus Hon. D. M. WELLS (Murrumba— of information could be discerned. Minister for Justice and Attorney-General and Minister for the Arts) (5.13 p.m.): I move— General secrecy provisions which defined the relevant material or information only by "That the Bill be now read a second reference to the capacity of the person who time." received it and who is precluded from disclosing When the Freedom of Information Act was it would not come within section 48. As a second originally enacted, section 48 provided for an step, the commission then considered whether exemption from disclosure under freedom of the other existing bases for exemption found in information for certain material if there was in the Freedom of Information Act—for example, force a provision in another Act applying matter affecting personal affairs, section specifically to material of that kind and prohibiting 44—would provide more than adequate persons specified in that provision from protection from disclosure for the subject disclosing that kind of material. There was the information. In those cases where sufficient added requirement that its disclosure would, on protection did exist, the commission balance, be contrary to the public interest. recommended that the relevant secrecy Subsection 3 of section 48 inserted a provision not continue to override the Freedom sunset clause into the provision so that section of Information Act. 48 had effect for only two years from the date of Further details relating to the methodology and principles adopted by the commission in this Legislative Assembly 8409 22 June 1994 exercise are to be found in the report of the Further, it could be argued that the release of commission titled the Freedom of Information Act this material could prejudice a future 1992: Review of Secrecy Provision Exemption, investigation if one were to develop report No. 46, which was tabled in this House on subsequently out of matters connected with the 7 June 1994. This Bill seeks generally to finalised inquiry. implement the recommendations of the In addition, I wish to advert to the fact that commission as contained in its report. the test in relation to the new section 48 inserted I should also point out that there is one by this Bill is higher than that required in relation addition made to the list of provisions, as to the public interest aspect of most other originally formulated by the Law Reform grounds for exemption in the Act. This Bill will commission, contained in the Schedule to this provide that for such disclosure there is required Bill. The Criminal Justice Commission made to be a compelling reason in the public interest. further submissions to my department that The reason for this is that it has been determined section 83 of the Criminal Justice Act be added that the courts be given a clear standard in this to the Bill. regard, because Parliament has already Section 83, in the words of the Law Reform expressed its views in relation to these particular Commission report at page 33, provides that a secrecy clauses contained in other statutes. The person shall not communicate or publish the same principle will apply also to the test text, substance or meaning of a private contained in section 39 of the Act relating to the conversation, to which he or she was not a party, confidentiality provision in the Financial that is overheard, recorded, monitored or Administration and Audit Act. listened to by means of a listening device used It has always been recognised that for the purposes of the commission except to confidentiality of certain Government information the chairman or to a person nominated by the is justifiable and necessary. However, at the chairman. Under section 82 of the Criminal same time, our Government is committed to Justice Act, authority to use a listening device upholding the most open and accessible may be sought only in relation to information freedom of information regime that exists in any relevant to the subject matter of an investigation Government in Australia. Moreover, it provides by the commission and may be given by a judge the relevant information to the public at a cost of the Supreme Court only in relation to a which is significantly cheaper than most, if not all particular matter specified in the approval. other jurisdictions in Australia. The competing The Criminal Justice Commission submitted interest of, on the one hand, justifiable and that the Queensland Law Reform Commission's supportable confidentiality in certain view that there was sufficient protection already Government affairs and, on the other, the existing in the other bases for exemption under community's right of access to information, have the Freedom of Information Act—for example, been balanced in this particular exercise. This that contained in section 42 (1); namely, matter balance is comprehensively described in section relating to law enforcement or public safety—was 5 of the present Act which sets out the principles correct in so far as ongoing investigations were applicable in determining the appropriate extent concerned. of access under the Freedom of Information Act. However, once an investigation was In introducing this Bill to the House, I would concluded, the protection afforded by section like to pay special thanks to the commissioners 42 (1) (a) of the FOI Act, that is, matter is exempt and secretariat of the Queensland Law Reform matter if its disclosure could reasonably be Commission who laboured long and hard over expected to "prejudice the investigation of a the preparation of the report upon which this contravention or possible contravention of the legislation is based. They conducted an law—including revenue law—in a particular case" extensive consultation program with all public would not apply. This was a view which I and my sector departments and agencies and assessed department agreed with and, accordingly, I all submissions made to them fully and recommended that section 83 of the Criminal conscientiously. Justice Act be added to the Bill's Schedule. I commend the Bill to the House. I should also point out there are very cogent Debate, on motion of Mr Beanland, reasons relating to important privacy adjourned. considerations why such material should be exempted from disclosure, particularly in those situations where no offence has been identified TREASURY LEGISLATION AMENDMENT by the investigation. This insertion will thus BILL protect the privacy interests of individuals whose Second Reading private activities are blameless and innocent. Debate resumed from 8 June (see p. 8213). 22 June 1994 8410 Legislative Assembly

Mrs SHELDON (Caloundra—Leader of This afternoon, the Federal President and State the Liberal Party) (5.22 p.m.): This Bill is an General Secretary of the AWU, Bill Ludwig—— extraordinary example of the Government's Mr Beattie: Who? arrogant policy of misusing Parliament by placing all its rotten eggs in one basket. Again and again Mr Welford: Who? this Government that proclaims itself accountable Mrs SHELDON: Do those Government to the people of Queensland abuses its members know Bill Ludwig? He will be interested complete power base over this House to lump to know that the members for Brisbane Central the most onerous pieces of Government and Everton have never heard of him! Is this a business together. In this House we have either new faction brewing? This afternoon, Bill Ludwig a feast or a famine. At one extreme we have joined the protest of Queensland mayors sittings such as this in which members and, outside Parliament and dumped a big bucket of through them, the public of Queensland are his own on this unfortunate legislation and on being asked to consume and digest all relevant this unfortunate Treasurer. There is no way that information from the Budget and the Estimates the unfortunate Treasurer will be able to press on committee process on top of a flood of Bills and against the might of the AWU, given that his general business. At the other extreme we have proposals are dead meat. sittings such as those we experienced earlier this Government members: Ha, ha! year in which the Government was flat out maintaining a flow of conversation for more than Mrs SHELDON: Do Government two and a half hours. members claim that the Treasurer will outfox Bill Ludwig? I put my money on Bill Ludwig every In this Bill, the Government is cranking the time! floodgates open a little wider when the flood of budgetary and other financial information is at its The kamikaze intentions of the Treasurer will peak in an effort to confuse the picture and, in so mean nothing when he confronts the brick wall of doing, slip through several provisions likely to be AWU power in the State branch of the Labor of serious concern to average Queenslanders Party. I believe that a little talkfest will occur all out there in the streets. next week. Won't that be a bloodfest! Mr Welford: Will we witness a cranial Mr Beattie interjected. explosion? Mrs SHELDON: I thought that, in a Mrs SHELDON: I suggest that the bipartisan manner, the member for Brisbane member listen to what his local councils are Central would invite me along just to see the saying. blood and gore running in the aisles. Mr Welford: Cerebral haemorrhage. By proceeding with his legislation tonight, the Treasurer will merely multiply the depth of his Mrs SHELDON: The councils do not like own embarrassment on Sunday when Mr Ludwig the Treasurer, and they do not like the member and his mates begin to flex their muscles. The for Everton much, either. AWU is going to tear the performance dividend Mr Beattie: Oh! to pieces. It is a monument to the arrogance of Mrs SHELDON: The councils particularly the Treasurer and the Premier that they should do not like the member for Brisbane Central! push ahead with this legislation on the eve of the State conference. Their willingness to treat Naturally, the issue of greatest concern councils and average Queenslanders with which has attracted the greatest attention so far contempt is legendary, but today their inflated is the performance dividend. Predictably, the sense of self-worth has swelled to truly Treasurer has not used this Bill to focus on that monumental proportions. proposal and explain it in terms that average Queenslanders can understand. Instead, the The focus of the media's attention and the Government has chosen to tie the performance attention of Mr Ludwig is on the effect of this dividend amendments to others governing the legislation on local authorities. However, we activities of offshore banking units and regional should not forget that many other important headquarters and the activities of Government bodies will be compromised by the owned corporations in this one unholy Bill. The Government's intentions. In the last QTC annual only connecting thread between the various report, the list of public entities that have loans elements in this Bill is the stink they are likely to through the QTC included the Brisbane Cricket cause out there in the community. Ground Trust, the port authorities across the State, water boards—— I am intrigued and impressed that the Treasurer has the courage to proceed with this Government members interjected. Bill tonight, given that already its major Mrs SHELDON: I hope that the component, the performance dividend, is dead. Government backbenchers realise that all these Legislative Assembly 8411 22 June 1994 people will be affected by it. The list also Mayor Soorley and the Townsville Mayor, Tony included Griffith University, the University of Mooney. Both of these Labor apologists have Southern Queensland, the University of Central turned their forked tongues on the State Queensland, the Lang Park Trust, the Livestock Government in protest at the $8m tax that this and Meat Authority, the Queensland Fish dividend will impose on Queensland councils in Management Authority, the QIDC, Toowoomba the coming financial year. Mayor Mooney says Grammar School, the Upper Pioneer River that the fee is retrospective tax on council Improvement Trust, the Mulgrave Shire River borrowings. That comment was made by the Improvement Trust—and where is the member Mayor of Townsville. What does the member for for Mulgrave—the Monte Carlo Caravan Park Pty Mundingburra think about that? Does he support Ltd, the Johnstone Shire River Improvement what the mayor is saying? Trust, the Herbert River Improvement Trust, Mr Davies: Your Liberal aldermen support Grainco and the Don River Improvement Trust. him. So, if it ever gets off the ground, the impact of the performance dividend will extend far beyond Mrs SHELDON: On this issue, indeed the average rates notice. The performance they do. But does the member for Mundingburra dividend will be a millstone around the neck of support him? The answer is that the member is individuals and organisations the length and putting his tail between his legs and running breadth of the State. Everyone from grammar because he knows that he has to support the school students to grain farmers and caravan Treasurer, even though the member should park dwellers will be reaching into their pockets stand up for his own local council. to pay the Treasurer. No wonder everyone from Lord Mayor Soorley says that this is a secret Mr Ludwig to the LGA is after his hide! mean-spirited tax on every local authority in this The $40,000 spent this morning by the State. The brawl currently occurring between State Government on its misleading Lord Mayor Soorley and the Treasurer is quite advertisement was probably the worst allocation legendary. Lord Mayor Soorley says the reality is it has ever made. It has served simply to unite the that, in the Queensland Budget, the State public of Queensland against this proposal, and Government intends to raise $40m through this the Treasurer will be a fool if he tries to proceed secret tax. This is the Bill under which the further, because the consequences of Treasurer will bring down the performance proceeding become worse as every day goes dividend like a good old-fashioned State by. While the mayors of Queensland wearing Government jackboot. The Treasurer means to their mayoral robes protest at the gates of crush the protests of Lord Mayor Soorley and Parliament, the Treasurer rams the performance Mayor Mooney, and the dozens of other local dividend down their throats accompanied by a councils and elected representatives from across few other bitter pills for good measure. All the this State who have banded together Labor mayors were out there, but no demanding to be heard over this issue. Government members were there. What an Mr Beattie: You agree with Jim Soorley. appalling performance! Obviously, no Labor This is a first. backbenchers or Ministers support their own Mrs SHELDON: I always agree with local authorities. That is the real scene. anyone who is right, and on this occasion, Mayor Mr Bennett interjected. Soorley is right. However, the response from the Madam DEPUTY SPEAKER (Ms State Government and the Treasurer has been a Power): Order! I want to hear the contribution by flow of personal invective which has done the Deputy Leader of the Coalition. nothing to answer the legitimate concerns of these councils and the hundreds of thousands Mrs SHELDON: In the process, the of Queenslanders they represent. Under this Treasurer cynically hopes that several of these proposal, the State Government plans to cream onerous measures will avoid detection and off half of the savings generated when public debate. However, in my address today, I Queensland local authorities borrow through the will endeavour to reply to each of these various Queensland Treasury Corporation. In the elements in the hope that some semblance of process, it will add one quarter of 1 per cent to accountability will be brought to the the cost of council loans, making a total of $8m in Government's actions. the coming year. There is no doubt that across the length and Despite the garbage we find in today's breadth of Queensland there is growing anger $40,000 attack on local councils—at taxpayers' over the imposition of this iniquitous expense—the Treasurer hides the fact that he is performance dividend by the Treasurer. The imposing a compulsory new tax which will come proof of the pudding is in the strident opposition out of the pockets of Queensland ratepayers. that comes from Labor mayors such as Lord Treasurer De Lacy says that if rates go up to 22 June 1994 8412 Legislative Assembly cover this new tax, then the council is to blame, Corporation was managing debt of more than $1 not the State Government. This, too, is false. billion for the Brisbane City Council, $341m for This is like trying to blame an employer for an the Gold Coast City Council and a total of $1.3 income tax bill on the basis that if the employer billion for other councils. The total of $2.67 billion did not pay the employee, the employee would represents a debt level more than twice the not be liable for the tax. What rubbish! All national average for councils per capita. Given Government revenue comes from the humble the size of the debt, it is no wonder that a taxpayer in some way. Anything that increases revenue-hungry State Government should the cost of government must be paid for by the choose to cash in on its position as the privileged taxpayer. For the Treasurer to say that it will cost middleman through which councils are more or council and not ratepayers is misleading. All less obliged to seek loan funding. Government expenditure is funded by taxpayers' We have seen an extraordinary flow of vitriol dollars. from the Treasurer as he has attacked the various In his expensive advertisement, the councils in a shallow attempt to justify this Treasurer accuses the local councils of playing revenue grab. The fact is that it is impossible for politics. Of course, he is not. Presumably, he the Treasurer to justify diverting the benefits of does not consider the public ridicule of anyone reduced interest rates achieved through the who disagrees with him as playing politics. Nor centrally managed Queensland Treasury does he consider using taxpayers' funds to Corporation loans. The fact is that the savings attack elected representatives in a full-page add that should rightly accrue to ratepayers in each in the paper—which, as I said, cost at least one of the local authorities across Queensland $40,000—as being political. Obviously, he does are to be hijacked under this proposal by the not consider gross distortion of the facts as middle tier of Government and diverted for its being political manipulation. own purposes. In proceeding with this scheme, The Treasurer describes the performance the State Government is merely scalping tickets dividend as a bonus, like the bonus payed to on the main game. It is demanding a kickback and savings accounts by some banks. This is a stating in advance what that kickback will be. The blatant attempt to make it sound like the State is fact is that loans are taken out by local authorities helping the local councils by giving them a to service local needs and to benefit local bonus. In fact, it is just introducing a new tax to people. The councillors who seek these loans suck the lifeblood from the ratepayers. The on behalf of their ratepayers do so to advance Treasurer says that he will share the bonus their local community in the knowledge that they amongst all councils. Yes, he will; he intends will be held accountable for their decisions by the taxing everyone! This will reduce the ability of council voters in their areas. councils to service existing debt. It will extend In this case, the Treasurer—who is behaving the term of maturity of all debts, increase the like King John—is demanding a cut. He is putting required repayments and reduce the ability of out his hand and demanding that part of the councils to draw new debt. It is simply a tax on the benefit to which local people contribute be raked future. off and spent elsewhere according to his own The Treasurer says that councils need not priorities. In his hysterical attacks on Queensland increase repayments to cover the fee; they can local authorities, the Treasurer said it was a simply increase the term to maturity. This means disgrace that a Labor council in Brisbane has that he has found another way to make our increased rates in working-class suburbs such as children pay more tax in 20 years in order to allow Keperra, Mitchelton, Inala and Woodridge by the Government to waste money this year. The about 10 per cent. What are the members for only justification I have seen from Treasurer De those areas saying? Nothing! The silence is Lacy for this proposal is that, by making such an deafening. However, instead of helping the outrageous contribution to the State coffers, the poor, working-class people who have been so councils will be paying the price of the State hard-hit by the Labor Lord Mayor, the Treasurer Government's AAA credit rating. I remind is joining the fray. He is seeking to impose a honourable members that the Labor further burden on those very ratepayers who he Government inherited this rating from the good claims are already being mistreated by their Labor management systems and practices introduced councils. by the previous conservative Government. It seems that the Queensland Treasurer is Mr Beattie interjected. no different from any other Labor administrator in his desire to pump up revenue through taxation Mrs SHELDON: The member for and other forms of Government charges, Brisbane Central knows that it is true because he including the increasing number of user-pays has said it to me often. By the end of the last charges—a euphemism for tax—for which the financial year, the Queensland Treasury Queensland Labor Government is becoming well Legislative Assembly 8413 22 June 1994 known. But through his actions in pursuing the by Townsville ratepayers to work on the Gateway performance dividend, the Queensland Bridge or the Valley bypass, or whether he wants Treasurer is merely demanding more room at the to blow the lot on a shipment of water-soiled trough for his snout. umbrellas, the ratepayers will get no say in it. The Labor Government's decision to There is no doubt that councils across impose the performance dividend is yet another Queensland will enjoy solid community support ill-founded decision to rank with its ill-fated rail for their campaign to overturn this small-minded cuts and school closures. In his second-reading imposition by the Labor Government. speech, the Treasurer claimed that the QTC had As a tax collector, the Treasurer imagines achieved savings totalling in excess of $230m himself as King John, but already on the horizon I against benchmark since the analysis of savings can see the councils preparing a Queensland for debt management performance commenced equivalent of the Magna Carta. Like events in the in June 1990. He said that, in addition, the QTC time of King John, economic sanity will had achieved savings for its clients because of its eventually prevail, but only when the Treasurer is low cost of raising funds, and he said that to date dragged forward to account for his actions. Like the QTC had achieved savings for its borrowers King John, the Queensland Treasurer will find totalling $425m. himself forced to back down over his unjust For that, the QTC deserves some demands. credit—certainly not the Treasurer. Savings have Mr Welford: You know nothing about King been achieved, and so they should be, given John. the solid gold state of the Queensland economy Mrs SHELDON: The honourable member when it was handed over to the Labor does not even know who he is. I heard someone administration just four years ago. However, the at the back of the Chamber ask, "Who is she ratepayers of Queensland have every right to talking about?" That is how much those members expect that savings will continue to be passed on know about English literature. to their councils as an inducement to the development of local infrastructure. Mr Barton interjected. Mr Beattie: But they are. Mrs SHELDON: Particularly Mr Barton, who asked the question in the first place. I Mrs SHELDON: The member should go thought you, Mr Barton, would have more and talk to his local mayor; he does not think so. knowledge of English literature. Obviously, you In his speech, the Treasurer said it was important have none. to note that the participation in the Queensland Treasury Corporation's debt pool is to continue Mr BARTON: I rise to a point of order. She to be voluntary. However, he makes it plain that has indicated that I do not know who King John QTC loans are to remain the most attractive on is. I did not make that comment, and I want her to offer to local authorities. When the financial withdraw that comment. I do know who King obligations placed on local councils are taken John is. into account, we can see that in reality there is no Madam DEPUTY SPEAKER (Ms option open to local councils and, in fact, Power): Order! The member has asked for a participation in QTC borrowings will be withdrawal of the comments. Will the member mandatory. Therefore, contributions to the withdraw? performance dividend will be mandatory. Mrs SHELDON: Yes, I will. I also ask you In the words of that well-known television to please ask the member to refer to me by my icon, Arthur Daly—and I am sure that all correct title. I am not "she" in this House. I honourable members are well aware of Arthur understand that Mr Szczerbanik has taken the Daly—Treasurer De Lacy has found himself on role of saying that it was he who mentioned King an earner. Like a tin-pot dictator, Treasurer De John. Lacy will be on a commission of 2.5c for every Mr Wells interjected. $10 sought on loan by councils anywhere in Queensland. Mrs SHELDON: So should you, Mr Attorney, but you never do. Mr Stephan: No new taxes! Madam DEPUTY SPEAKER: The Mrs SHELDON: Indeed, no new taxes! member will continue with her speech. The member for Gympie is right. This, of course, is a new tax, and of considerable size. Although Mr WELLS: I rise to a point of order. If the the ratepayers will be the ones who will pay, the honourable member is going to criticise other beneficiary will be the consolidated revenue of honourable members for their mode of address, the State Government. Whether Mr De Lacy she ought to refer to them by their correct titles. choses to divert his share of loan money paid for 22 June 1994 8414 Legislative Assembly

Madam DEPUTY SPEAKER: Order! of the State Government and local There is no point of order. I call the Deputy authorities were to be consolidated. Leader of the Coalition. Therefore, the State guarantee is Mrs SHELDON: If members read simply a shared guarantee by all levels of Hansard, they will find that the Attorney Government and Government enterprises frequently calls members by their incorrect through the pooling of risks and assets. The names. contingent liability resulting from the I have been reading some of the material guarantee is a shared contingent liability for supplied to the Local Government Association it is through, in part, the local authorities and by the Queensland company Economic Insights. Government business enterprises, that It is plain that if the Treasurer wants a fight over revenue would be increased if the the performance dividend, the local authorities of guarantee was needed to be called upon. this State are in a position to give him a flogging. For example, when the State Bank of If the councils maintain their current unity and Victoria experienced problems utility prices resolve and make use of the options open to were increased to fund the shortfall. them, the Treasurer will have little option but to Therefore, each entity should receive back down. recognition for its contribution to the security of the asset pool for which it should Mr Wells interjected. receive a benefit. This will tend to reduce Madam DEPUTY SPEAKER: Order! considerably the savings differential stated The Attorney-General will keep his comments to by the Government. himself. Put another way, the State Mrs SHELDON: A significant option of Government should not gain the savings of which the Treasurer appears oblivious is outlined the funding differential because it has only in the Economic Insights briefing. Unless the contributed a portion of the risk pool. The Treasurer begins to quickly see reason, I would Government has assumed it is like a financial urge local authorities to give serious thought to institution guaranteeing clients loans, when following the path laid out by Economic Insights. I in fact it is much more like a parent company will read a few excerpts from the Economic guaranteeing a loan to one of its Insights report, which states— subsidiaries. "The State's 'AAA' rating is not solely The Government states that if local due to the performance of the State authorities believe they can get a better deal Government." through private banks, they can make a Surprise, surprise! The Treasurer tells us submission to the Treasurer. This is not the constantly that it is. The report continues— relevant comparison. "It is due to the performance and The issue is whether local authorities potential of the State of Queensland. It must and Government enterprises can get a be remembered that the State's local better deal by joining forces, pooling risks authorities and enterprises are part of the and assets, and establishing their own Government sector and, therefore, the central borrowing authority backed not by a performance of these entities, their asset Government guarantee but by the assets of bases and their potential revenue raising the contributors to the authority. In capabilities are taken into account in the Queensland, such an entity is also likely to State's credit rating assessment and, obtain a 'AAA' rating." consequently, its overall cost of funds. Mr De Lacy interjected. These factors are as important as the State Mrs SHELDON: Would the Treasurer Government's tax raising capabilities. This agree that if all the local authorities in this State has been clearly shown by the downgrade banded together and formed their own loan in ratings of some States due to the poor bases, they would also get a AAA rating? performance of entities such as State banks." Mr De Lacy: Never. Mr Elder interjected. Mrs SHELDON: What rating does the Treasurer think they would get? Mrs SHELDON: Mr Elder would know all about those. The State Bank of South Australia Mr De Lacy: Not a snowflake's chance in should still be fresh in his mind. The report hell. continues— Mrs SHELDON: What rating does the "This can easily be seen if the accounts Treasurer think they would get? Mr De Lacy: I'm not a rating agent. Legislative Assembly 8415 22 June 1994

Mrs SHELDON: The Treasurer has no would be increased. Similarly, if the idea. The report continues— Brisbane City Council were to increase its "It is the cost of funds of such an entity performance significantly, thereby having a that should be compared with the cost of positive effect on the State's credit rating funds of the QTC—the latter would then be and its cost of funds, the performance significantly higher because of the loss of dividend levied would also be increased asset backing, reduced economies of scale because the cost of funds differential would and lower liquidity resulting from the widen. This provides the opposite departing local authorities and Government incentives of what is required and is totally enterprises. inefficient." Overall, the savings that the It is plain that if local authorities want to Government claims are attributable to its confront this latter-day King John and force him actions are considerably less because a to back down, they have the necessary large part of these savings are due to local measures at their disposal. On the basis of the authorities in terms of the additional asset information provided by Economic Insights, the backing and potential revenue possibilities councils may have a trump card up their sleeve. If that underpin the Government's 'AAA' they are prepared to play the final card and opt rating, and increased liquidity and depth of out of the unjust State Government system, they the market in QTC stocks due to the issue of will be in the perfect position to force the substantial debt for local authorities. Government's hand. No State Government can Therefore, if a guarantee fee is to be afford to continue to persecute local authorities charged, the rate should be commensurate when such division is likely to result. with the specific credit risks involved and all A credit war between the State and local local authorities should be able to take authorities is the last thing Queensland needs as advantage of economies of scale in liability it struggles to provide infrastructure and keep up management and benefits from large-scale with the demands of interstate migration and the risk pooling, which should recognise each current surge in development. By seeking to authorities contribution to the security of the exploit the State's AAA credit rating, the risk pool or the overall credit rating. This will Treasurer threatens to kill the goose that lays the be considerably less than currently being golden eggs for Queensland. proposed by the Government in its The Treasurer has gone right over the top. performance dividend, particularly for the He has used various threats and insults in an larger local authorities." effort to bring the councils to heel. The most It would be interesting to hear what the Treasurer onerous is his threat to pick out individual has to say about that. The report continues— councils, concoct a range of inflammatory and alarming statistics and use the Labor "The Government has not provided its Government's media machine to crucify their rationale for calculation of the fee and, in this economic reputation among ratepayers. respect, it is difficult to assess the legitimacy of the method that will be used. To Mr FitzGerald: Shame on him. implement such a tax without first giving Mrs SHELDON: That is shame on the details of the method of calculation is hard to Treasurer. The Treasurer should be taking a justify. This adds to the confusion and long, hard look at the economic performance of uncertainty surrounding this tax. From his own Government. Once again, the briefing information obtained from the QTC, no from Economic Insights provides a clear guide to rigorous financial analysis of the fee the Treasurer's options. It states— structure or its framework has been "The proposed legislation restricts the undertaken. Therefore, it is difficult to be choice of financing opportunities confident that the necessary substantially and forces local authorities into accountabilities and efficiencies will be utilisation of the QTC. However, at present, established. there is no performance monitoring of the In any case, the methodology used, QTC's operations. which is based on the performance of other There needs to be a clear separation of States' central borrowing authorities, is the margins gained by the QTC into that totally inappropriate. For instance, if the attributable to QTC management actions Victorian Government were to perform and that attributable to the State's credit poorly, resulting in a higher cost of funds for standing. These should be evaluated the State, then the performance dividend against the costs of QTC operations. levied on Queensland local authorities 22 June 1994 8416 Legislative Assembly

If performance monitoring was Mrs SHELDON: I will explain this to Mr undertaken it is likely to show that QTC is a Elder. It will take a while to sink in, but I will explain high cost and inefficient operation. This can it to him. Queenslanders have been warned easily be seen from the sharp increases in about thousands marching north to take our administration costs following the separation jobs. For the same reason, we are told to rejoice of the QTC from the Treasury Department in as they bring their retirement cheques by way of 1991. investment. We are said to be in desperate need If the QTC is now to be given additional of more money from Canberra because the monopoly power over most public sector rotten Victorian weather is a threat to our debt in Queensland, there should be infrastructure, but at the same time we will be increased demands concerning the rolling in cash because the migrants create an establishment of more appropriate unprecedented boom in housing and property. accountability and performance It is amazing what the Queensland measurement systems. If not implemented, Government can do with the economy simply by it is likely that administrative inefficiencies will talking about the weather. Sadly, the increase because there will be little pressure Government spends too much time talking about to perform in such an environment. This will the weather and being content with whatever be exacerbated if the QTC is granted economic news tomorrow might bring. It spends authority to set the structure and levels of too little time considering the economic needs of the 'attributed amounts'. The complexity of the community and setting out to address those these calculations will make evaluation needs through measured, forthright policies. In difficult. many respects, the Government is too easily led by Governments or interests elsewhere. The Therefore, instead of the Treasurer needs and priorities of Queensland in 1994 are threatening local authorities with more plain for all to see, but the Labor Government detailed audits, the Government should acts as though it has another agenda. provide local authorities with improved performance monitoring systems and a There is no doubt that today Queensland detailed audit of the QTC, as well as the has the golden opportunity to lead Australia framework which will be used to assess the forward into the twenty-first century, but under performance dividend and attributed Labor we are setting out to lead from behind. amounts. This may remove some of the When he launched the Bill, I was interested to uncertainty and confusion. hear the Treasurer gloating about the way in which Queensland had taken the lead on OBUs The Government will say that the QTC and RHQs by being first to act on a speech given is currently being monitored by the Treasury by the Prime Minister just prior to the Federal Department. However, no resources are election. Given Mr Keating's record as Federal allocated to this task and no monitoring Treasurer, his should be the last ideas given actually occurs." precedence in Queensland. Even if the I turn now to the proposed amendment to Queensland Treasurer did think of the idea prior the Offshore Banking Units and Regional to the 1992 Budget, Mr Keating's support Headquarters Bill 1993. Whilst there is no doubt should have warned him to take special care. that the financial status of the Queensland The range of benefits that an overseas economy has been maintained through a company can expect by signing up with the combination of fortunate circumstances, the Labor Government includes big cuts in debits plethora of confused directions coming out of tax, land tax, payroll tax and stamp duty. I have the Executive Building is cause for concern nothing against a Bill targeting reductions in any about the future. I see that the Treasurer is laughing at the cause of that concern. At of those areas. As the Treasurer well knows, I present, Queensland taxpayers are being asked have proposed the possibility of phasing out to swallow the biggest load of old cobblers. The payroll tax to create an unbeatable business Government line about the economy, where it is incentive for employment in Queensland. The going, what it is doing and how Queensland will prime goal for Queensland should be to create benefit is as variable as the weather in employment, and if the Treasurer were serious Melbourne. he would offer measures of that sort, not only for OBAs or RHQs but also for LTQEs, that is, long- Today, the weather in Melbourne is about term Queensland employers. the only constant in the Queensland Government's economic forecast. Because of For my money, RHQs and OBAs can Victorian weather— POQ—proceed offshore quickly—unless they enter on terms that will help us stabilise growth Mr Elder: You're negative. and project a steady improvement in job prospects beyond the turn of the century. Legislative Assembly 8417 22 June 1994

Mr Connor interjected. on the list with less than 5 per cent. Brisbane did Mrs SHELDON: At least Mr Connor has a not rate a mention. sense of humour, which is sadly lacking in The report concluded that by undertaking a Government members. concerted marketing and promotional campaign, Mr Connor: No-one else understood it. Queensland could attract between five and ten RHQs in the next five years. In the legislation and Mrs SHELDON: That is right. They do not the proposed amendments, I find no promotion understand it. That is the sorry part of all this. or marketing and no sign that the Treasurer is Sadly, in his amendments the Treasurer has not serious in addressing the goals that he lays demonstrated that he knows what those down. That is because nowhere in the legislation important terms are. Instead, we have been or those amendments have we been told the treated to a lot of talk and gimmicks. The extent of the proposed incentives. We have Treasurer likes to dwell on the rosy side of the been given the names of the taxes that the argument—about Queensland winning business Treasurer plans to forgo and short notes to from Singapore—but he has failed to indicate that regulations will be issued reducing acknowledge at least one or two hard facts of life those taxes to apply to OBUs and RHQs. that apply. I strongly support the need for increased The first is that to have any chance of investment in Queensland, but I am concerned winning business or banking units away from the that his Act remains nebulous. It urgently tigerish business centres of Asia, the requires clarification and improved promotion. I Queensland Government must offer a deal hope that the Treasurer takes that on board. better than those offered by the best deal Currently, the legislation is so unrefined that I can makers in the world. Secondly, only capital- foresee that the operators of major resort chains intensive businesses are likely to be attracted to in the south Pacific may seek and receive Queensland, and then only if a significant margin assistance from the Queensland Government to is available. Tax cuts alone are unlikely to provide set up in Brisbane. From there they can tout for the required incentives to attract industries to business at the expense of Barrier Reef or Queensland. Research has indicated that other coastal resorts in Queensland. factors such as proximity to the market, telecommunications, the regulatory environment I fear that one of the most likely outcomes of and the political environment are more important this underlined Act is that we will provide a tax than taxation alone in the decision of a haven for companies which operate offshore in multinational corporation to relocate its head competition with the hard-working taxpaying office operations. employers of Queensland workers. I can foresee So what will we have achieved in five to ten under the Act the Asian replacement for the years when the music stops? It should be House of Jenyns using the amended legislation remembered that two categories of business to maintain a head office in Brisbane with a identified by the Treasurer qualify for undefined weighty State Government subsidy. It would be able to maintain a close watch on the market, be assistance under that scheme. The first is more effective at governing the flow of overseas offshore banking units, typically units within production and work to minimise the impact on banks or financial institutions that undertake sales of bad publicity flowing from the closure of transactions with offshore parties. The second is the Brisbane manufacturing plant. multinational businesses that establish a regional headquarters to service parts of the group Those two examples are just the tip of the operating offshore. iceberg. Any creative accountant could think of a The larger part of my concern relates to least a dozen more. Whilst eventually some category two. A working group on the banks and companies may be drawn in the way establishment of OBUs and RHQs in envisaged by the Treasurer, others will have their Queensland reported to the Treasurer in June own reasons for participating in the scheme. last year. In its report, the group assessed factors Although the Treasurer may be dazzled by the that resulted in various RHQs being established rhetoric of the Prime Minister—heaven forbid in Hong Kong. Only 7 per cent gave low taxes as that he is, but it seems that he is—and talk of the reason, while 37 per cent chose because of offshore banking and regional headquarters Hong Kong's central location, 25 per cent being established in Queensland, his first priority because of its support services, 10 per cent should be to those firms building a future in our because of work force quality and 10 per cent State. The Government should ask itself what because of proximity to China. Alternative sites kind of offshore company will blithely swing its were also graded for their suitability. Singapore headquarters into Queensland for a 10-year tax rated 48 per cent, Kuala Lumpur 18 per cent, holiday? Tokyo 13 per cent, while Sydney was seventh 22 June 1994 8418 Legislative Assembly

From that perspective, I am pleased to note Mrs SHELDON: I will wait to hear the the Government's amendment to provide honourable member's erudite input to this penalties, because at some stage penalties may debate later on. We expected the details of be necessary. Only a couple of years ago, the incentives and safeguards to become apparent world financial community was shocked when the as regulations are posted and individual cases activities of the Bank of Credit and Commerce are assessed and dealt with. However, I am International came to light. That bank came to be concerned that, six months down the track, the known as the Bank of Crooks and Criminals Government is still vague on these important Incorporated. I am sure that Mr Elder has heard points. The final package offered to overseas about it. That bank operated for years as the banks and companies may be ridiculously leading channel for crime and corruption from the generous or absurdly inadequate, but this US across the Atlantic to the UK and Europe, House and the Queensland public is still none while stretching its tentacles into all the world's the wiser. trouble spots. Finally, I turn to the provisions of this Whilst international regulations on banking legislation that amend the Government Owned have been tightened in the wake of that scandal, Corporations Bill of 1993. When the GOC I question the capacity provided to the Treasurer legislation was brought into this House last year, of Queensland under the legislation to gain a members were given just seven days to prepare complete picture of companies and banks that for that debate. That is one of the most may seek to establish here. significant Acts in the current process of Sitting suspended from 6 to 7.30 p.m. parliamentary reform, but its impact is anything but positive and, because of the tight rein being Mrs SHELDON: This is one area under kept on debate, few Queenslanders really which legislative amendments are needed, but understand the intent of the GOC legislation. we see no answers among those changes Now that these amendments have been brought proposed today. It was not that long ago that the into the House, at the busiest time of the year, Treasurer and all Queenslanders were stung by with little more notification than was given for the the double collapse of Compass Airlines. The Bill itself, one has to wonder what the real aim of Treasurer may be trying to forget the sorry the Treasurer is. circumstances in which millions of Queensland taxpayers' dollars were lost in that debacle, but In his second reading speech, the Treasurer he should have learned the lesson. He should insists that the amendments proposed are— have learned that, even with the stringent ". . . essentially of a technical nature and do reporting systems that govern companies not represent any change to the policy operating in Australia, it is possible to pick a underlying the existing GOC Act." lemon and get more than just a sour taste in That is a misleading statement from the one's mouth. Treasurer. There are serious ramifications of Not this Treasurer! He has the front to tell us these amendments, and it is disgraceful that the that without investigation he will pick winners and Government should try to dismiss them in such a losers among overseas operators and ensure two-faced and arrogant way. The proposed that only the best are given a guernsey in amendments earn little more than a page of Queensland. The Treasurer claims that he will explanation in the Treasurer's second-reading ensure holders of offshore banking and regional speech, not one word of which relates in any way headquarters licences in Queensland are to the items which I view with great concern. reputable, have a sound financial background In my reply to the GOC Bill, I set out the and are likely to give an economic benefit to following principles by which the coalition Queensland. I would say: fat chance under his believes the process of corporatisation should legislation! Fat chance under these be governed. It should— amendments! provide for the shareholding Minister to be a In this case, the strength of the proposed director of the board and for the Treasurer to measures cannot be determined because the be personally liable; various regulations to limit stamp duty, payroll tax, land tax and debts tax have not been revealed. reward the GOCs for identifying community The Treasurer has made a bland, nebulous service obligations which may arise in the statement without giving any details. Despite that future; lack of information, the Opposition has produce and publish a statement on labour supported this legislation. market reform for each and all target GOCs; Mr Budd interjected. upgrade the Treasury GOC Unit so that it Legislative Assembly 8419 22 June 1994

has the ability to create the artificial market are developed to run the public sector. This forces so necessary for the creation of a is very different from how one would utilise competitive corporate monopoly enterprise; people to run an efficient private enterprise. delete a clause which refers to the safety Flexibility is vital in the marketplace. If the net for employees so that, if they do not Government owned corporations do not perform, they can be sacked; have flexibility they will not be able to compete. The major area of flexibility create a GOC parliamentary committee for needed by corporations is the ability to use the establishment of the GOCs, their workers to maximise efficiency and appointments to the board and the profit. However, this Government denies appointment of the CEO; GOCs that flexibility." utilise a GOC parliamentary committee to I refer to part (c) subsection 2 in the review any changes to the memorandum proposed replacement for section 54, which and articles of association—which the states— Government can now change at will, changes to the share structure which, "A regulation under subsection (1) (h) indeed, it can change at will—dividend or (i) may provide for the office (including policy, and capital structure; that of chief executive officer or a senior executive) the officer or employee is to hold and require the GOC to provide full in the entity when it becomes a GOC or disclosure of all information, material or subsidiary of a GOC". otherwise, in the quarterly and annual reports. Further in part (c) of subsection 2 of the new section 188 the amendment proposes— The Government has made no endeavour to address those principles, although they are "about a Government entity's obviously necessary if corporatised entities are employees and officers may identify them, to provide efficient services and to be made and things about them, by reference to a accountable to the public of this State. document held by an entity". However, in these amendments today, the So under these amendments, control over Treasurer reveals a new dimension to the the duties to be performed by and the office to Government's hidden agenda with GOCs. During be held by any staff member or employee of a my speech, I gave two warnings to the Treasurer. Government owned corporation will pass into the Now it is plain that the Treasurer did not merely hands of Executive Council. The careers of fail to understand my comments, but he was thousands of employees in port authorities, doing his utmost to circumvent them and impose electricity boards, the QIDC, the QIC and even a predetermined political agenda. They were— Suncorp will be made subject to regulations to be proclaimed by the Governor in Council. That is "If these corporatised entities are not not merely a change of a technical nature, which allowed to compete on the same level or to was the intent proclaimed by the Treasurer when operate in the same way as equivalent he launched these amendments. The Treasurer private companies, then the Government is stated that they— not going to get the efficiencies that have been promised by the Treasurer. ". . . do not represent any change to the policy underlying the existing GOC Act." For example, the Queensland Investment Corporation, which is perhaps I do believe that this Treasurer cannot lie straight the most clearly corporatised entity under in bed. Indeed, the Government cannot lie the Government's model, still operates straight in bed. under the public service rules for The provisions in these amendments will employment conditions. For effective reach down and destroy the career structures of corporatisation, reforms have to be thousands of Queensland workers, whether implemented to achieve the best outcomes they be electricity board linesmen, QIDC for the corporate entity, the consumer and bureaucrats or waterside workers. Instead of the benefit of all Queenslanders." promotion according to merit, these And further— amendments impose a system of promotion on the basis of political patronage. Under these "These corporate entities have to be amendments, the Treasurer states quite clearly able to employ people under terms and that jobs will be assigned by way of regulations conditions which will reward them and so that are formulated and issued at the direction of ensure that they are selecting the best Cabinet. What a great way to earn, return and people with the right skills. On the other maintain the support of unions that play a pivotal hand, public service employment conditions 22 June 1994 8420 Legislative Assembly role in the internal factions of the ALP! The entities. Of course, these principles would make catchcry is, "Give the boys a job." these entities less effective than their private In the electricity boards, ETU members will enterprise equivalents. be salivating at the thought of the new range of Mr De Lacy: Do you admit that you were job opportunities open to them. In the ports, we wrong? will see a tidal wave of feather-bedding and a Mrs SHELDON: The Treasurer evidently shameful resurgence of vice-like union control as says that maintaining public service employment management goes into the bunker and those principles in corporatised entities is a good idea who have powerful friends rule the roost. and will make them efficient in the labour market. I Mr De Lacy: We'll have wharfies running think that even he would have to realise that that the port authority. is not the case. But even the most archaic criteria imposed under public service regulations would Mrs SHELDON: The way the Treasurer is be preferable to these requirements that running Treasury, they would be well acquainted entrench political patronage. with it. Long-established principles apply in the Under these amendments, regulations will public service, and they are designed to protect not even be issued before the various GOCs feel the public sector from the type of political the impact. The fact that Labor Ministers will have exploitation advocated in these amendments. In the power to regulate anyone's job will be particular, I refer to the doctrine of the separation enough to have managers looking over their of powers. How quickly the Labor Party forgets! I shoulders. If they want to get ahead, they will do know that none of the members opposite the right thing by the Labor Party when it comes understands the doctrine of the separation of to appointing others. powers. These amendments are an insult to the It is worth while considering the list of doctrine of the separation of powers. They are a Queensland enterprises to which this party serious attempt by the Labor Government to political regime will apply. So far in Queensland, politically manipulate many large and important no organisation has been declared a authorities in this State and to entrench Labor in Government owned corporation, but many have power. These amendments will breed been declared as candidate COGs. They corruption. They must be withdrawn and new include, the Ports Corporation of Queensland, amendments to guarantee the independence of the Port of Brisbane Authority, the Gladstone GOCs and the appointment of GOC employees Port Authority, the DPI Forest Service, the must be introduced as a matter of priority. Generation Business Unit of the QEC, the In closing, I reiterate that this Government's Corporate Business Unit of the QEC—which shallow attempts to mask its activities by includes the following electricity attempting to ram through controversial matters boards—SEQEB, NQEB, MEB, FNQEB, CEB, in a flood of Government business are an insult WBBEB, SWQEB, the transmission business to accountability in this State. Do honourable unit of the QEC, the QIDC and the QIC. members opposite remember that word Mr Davies interjected. "accountability" that the Premier trumpets but does nothing about? Outside Parliament this Mrs SHELDON: I would have thought that morning, there were clear signs that the honourable member would have been well Queenslanders from all walks of life have had aware of what those acronyms stood for. enough of being bullied by this Government and Together, these organisations employ this Treasurer. thousands of Queenslanders. It is unacceptable that they should owe their future employment to As Brisbane Lord Mayor Jim Soorley said the degree to which they are able to ingratiate today, the Treasurer is being—and these are the themselves to Ministers or the ALP. The words of the Treasurer's own Labor mate situation worsens again when one considers that Jim—"dictatorial and fascist in his headlong drive the Government has identified other major to push this legislation through". One can only organisations for conversion to GOCs. They wonder at the impact that Bill Ludwig—Premier include the Water Resources Division of the DPI Goss' numbers man—will have on Mr De Lacy's and, of course, Suncorp. That really is a fairly future if he proceeds with this Bill. Could this Bill be the Treasurer's waterloo? No doubt we will disgusting proposal. Imagine every clerk and see at next week's ALP State conference. middle manager employed by Suncorp owing their careers to the whim of the Labor After today's comment from Mr Ludwig that Government. Last year, I criticised the the ALP conference can "change policy", the Government for maintaining public service people of Queensland will see who really runs employment principles in these corporatised this State. The Government's transparent and cynical attempts to manipulate local authorities, Legislative Assembly 8421 22 June 1994

GOCs and the private sector to maximise that the Townsville City Council is one of the revenue are damaging the future of this State best-run local authorities in Queensland. This and must end quickly. Obviously, Mr Ludwig and year, it has set a record as the longest-running the Queensland councils realise this. I only hope administration in Townsville City Council's it is beginning to dawn on the Treasurer for his history—and it is a Labor administration. That is sake as well as that of all Queenslanders. the way it should be. It has had three great Mr DAVIES (Mundingburra) (7.44 p.m.): I mayors. have pleasure in rising tonight to support the Mr Bredhauer: And I'll bet they didn't put Treasury Legislation Amendment Bill 1994. This their rates up by 14 per cent like the Cairns City Bill amends four Acts. The first two Acts Council did. amended are the Queensland Treasury Mr DAVIES: In answer to Mr Bredhauer's Corporation Act, or the QTC Act, and the interjection—I read on the front page of the Statutory Bodies Financial Arrangements Act, or newspaper the other day that Liberal Alderman the SBFA Act, to give effect to the QTC Peter Lindsay says that he will guarantee that the performance dividend and guarantee fee rise this year will be less than the inflation rate. So arrangements announced in the 1993-94 he is supporting the good administration of the Budget. A third Act, the Offshore Banking Units Labor administration and council. In contrast, I and Regional Headquarters Act, is amended to read a headline in the Cairns Post which stated remove unnecessary parts of the Act and supply that under the Cairns City Council rates have administrative processes of the Office of State gone up by about 14 per cent. Revenue. A fourth Act, the Government The letter concluded in very emotive terms. Dividend Corporations Act, is amended to The writers said that they find it most enable the State to impose a tax equivalent regime and to enable the appointment of an incomprehensible that the symbolism of taking interim board to deal with specific these extraordinary decisions was lost on the precorporatisation issues and facilitate the Cabinet. They said— smooth transition of GOCs to corporatisation. "This strikes at the heart of confidence in our system of Government and puts at I specifically want to concentrate my time real risk people's belief and trust in our tonight on the two Acts being amended to give public institutions." effect to the QTC performance dividend. The reason I want to do that is to assist in putting paid They continued— to the campaign being run by some major "If you cannot trust Government to act councils and the Local Government Association. honourably, where do you go—the Mr FitzGerald: You're a traitor to local streets?" authorities. You're a former councillor—an And that is exactly what they did this afternoon. alderman. The words worth emphasising are "at the heart of confidence in our system of Government". Mr DAVIES: I would like to correct the member; I have never been a member of any One has only to read the comments by council. However, I have worked for local economic commentators right around Australia government. when our State Budget was brought down a few weeks ago to see that we have the best-run One can only describe the campaign being economy in Australia. As members opposite waged by these organisations as less than want to talk about confidence, I will go back to the honest. This week, the LGAQ wrote to State Budget. The Treasurer and the Under Government members—it may have written to Treasurer brought down what is acknowledged Opposition members, too; I am not sure— as the best State Budget in Australia, and it will expressing its extreme anger at the introduction be surpassed by next year's Budget. of the QTC performance dividend. In summary, its arguments are, firstly, that the performance As I said, very emotive language was used in dividend is a new tax; secondly, that the the letter to which I referred. But I have to say that performance dividend is not a sharing of benefits it was not factual. The letter continued— but a grab for what is rightfully a benefit of local "I earnestly seek your support in urging government; and, finally, that the performance the Government to reconsider its decision in dividend was not provided for in its contracts with relation to this matter. I also assure you that the QTC. this Association and Local Government, in Mr FitzGerald: What does Mooney say concert with the community, will use about this? whatever resources are available to fight this unfair and unjust measure should it Mr DAVIES: I will get to the Townsville City proceed. Be assured that our current media Council eventually. I would like to say right now 22 June 1994 8422 Legislative Assembly

campaign will not be a flash in the pan. It is Government's ABA credit rating, repayment our firm intention to ensure that the terms are in fact reducing. imposition of this iniquitous tax on local Councils are enjoying an enormous benefit communities will be very much a live issue through these arrangements and therefore during the next State election campaign." should have been—and many have That was from the Local Government been—using these savings to reduce rates and Association. That association threatened us with charges. An example of such a council is the respect to this initiative. In other words, if we do Townsville City Council. That is exactly what it has not come to heel and do what the Local been doing—using these benefits to reduce its Government Association wants, it will campaign rates and charges. To date, all of the benefits against us. What is new? The National Party still have been retained by the councils, and that has controls the Local Government Association, so been on the back of the QTC's performance and what is new? As I have said, the Local AAA credit rating. Government Association is running what can Recently, councils have been challenged only be described as a less-than-honest by people such as the Treasurer to state that campaign—a campaign designed to their rates will rise because of these changes. misrepresent the State Government's position Today on ABC radio, I am informed that the Lord with respect to the dividend. Mayor of the Brisbane City Council denied that Let us look at some pertinent issues that council will have to increase its rates. A explaining the position of Government. The first moment ago, I said that the Townsville City thing we need to do is explain the performance Council Liberal aldermen have said that that dividend. Queensland's financial strength council will not have to increase its rates. attracts an ABA credit rating, enabling the State The next claim by the Local Government to borrow at cheaper interest rates. Participants Association is that this is a retrospective tax. in the QTC such as councils, Queensland Rail Firstly, this is not a tax; it is a dividend aimed at and the QEC have benefited dramatically by sharing the benefits of borrowing through the borrowing through the corporation and using QTC. If a punter such as the member for that ABA credit rating. Currently, the State does Southport could get onto something like this, he not receive any share of those benefits from would do so for sure. I repeat that this is a councils, but it is not a coincidence that it does dividend aimed at sharing the benefits of receive those benefits from Queensland Rail and borrowing through the QTC—benefits accruing the QEC. It seems that the Local Government because of this State Government's financial Association wants to be treated differently from performance, not the financial performance of Queensland Rail and the QEC. The performance councils. dividend will return half of the benefit to the Queensland Government, which of course is The next point that I would like to address is responsible for generating the benefit in the first the retrospectivity argument. This is not a place. It is only fair that half the benefit will still retrospective measure. In fact, because it remain with the borrowers. operates only from the time that it was announced in the Interim Budget Statement last The dividend is calculated against year, it is a prospective tax—in other words, it benchmarks. There is no magic in this. If there is operates from then and goes forward. There is no benefit, there is no dividend. It is important to no retrospectivity whatsoever. To emphasise repeat that point. If there is no benefit, there is that point, I point out that we have not taken a no dividend. In other words, the QTC has to cent in the five years since the new perform, otherwise there is no dividend—none arrangements took effect. If people intend to whatsoever. claim that this is retrospective, they should put The next point is the impact of the up a case to show how we have benefited over performance dividend on council budgets. the last five years. The fact is that we have not. It There will be no cash flow impact on council is not compulsory for councils to borrow through budgets. The performance dividend will affect the QTC. only the repayment term of the loan. Mr Veivers: It is. Mr Littleproud: Ha! Mr DAVIES: It is not. However, in common Mr DAVIES: I would like to take that laugh with the member for Southport—who is a very as an interjection, but I do not know how it would wise man—most people realise that it is good be recorded. The performance dividend will sense for councils to borrow through the QTC. affect only the repayment term of the loan. Councils will still be free to borrow from a private Because of the cheaper borrowing costs source and utilise the State Government's generated by the QTC and the Queensland guarantee, but they will pay an equivalent performance dividend. If the councils do not wish Legislative Assembly 8423 22 June 1994 to pay a performance dividend, they can borrow know that the member for Southport came in privately without the State Government's late, but 14 months down the track is not too guarantee. much to expect him to catch up. Deloittes said— Mr Budd: They just don't understand. "It is possible that, given QTC's history Mr DAVIES: The member for Redlands of outperforming both its benchmark and said that they just do not understand. I agree with the other States' central borrowing him. authorities, Councils could incur the cost of the Performance Dividend and still reduce If councils take the final option that I their current expected borrowing term mentioned a moment ago—in other words, if without any increase in existing they do not want to pay the performance repayments." dividend and they borrow privately without the State Government's guarantee—we all know that That is the advice to the LGAQ from its that would be financial folly, because they will pay independent consultants, Deloittes. The LGAQ higher interest rates. One does not hear too did not include anything in the letter that I many councils wanting to opt out of this scheme. mentioned earlier about Deloittes' assessment. I They like the scheme; they like the benefits. ask the Treasurer: why does he think the LGAQ did not mention that assessment? Mr Veivers: If you believe this, you believe in the tooth fairy. Mr De Lacy: Isn't it funny? I suppose it doesn't sustain their story. Mr DAVIES: I challenge the member to cite one council that wants to opt out of the Mr DAVIES: I agree with the Treasurer. I scheme. believe that it exposes the double standards of the LGAQ on the issue. It really wants it both Mr Veivers: These councils have applied ways. The LGAQ wants all of the benefits for its to this man over here and you've held them up member councils, and it does not want to share that long, now interest rates have gone up, them with the organisation—that is, the they'll have to go back to him. It's a case of QTC—that is generating those benefits through blackmail. the AAA credit rating and the good financial Mr DAVIES: But even with the management of the Queensland Government. performance dividend, not one council that is Treasury has developed a chart showing presently in the scheme will want to opt out. examples of the effect of the performance Another claim being made by the Local dividend. I will not bore honourable members Government Association is that legally binding with all of the details of the chart because I think contracts will be changed. Quite simply, that is that later speakers will talk to it, but that chart not correct. The existing contracts stand. We are shows repayment terms will be reduced more not changing one single word in those contracts. than would be the case if authorities were This legislation will not invalidate or override borrowing from another source. There will be borrowing contracts between local authorities no—I repeat "no"—cash flow impact on councils and the QTC, because this is a statutory and, therefore, there can be no conceivable provision; it is not a contractual one. The impact on rates and/or service delivery. The performance dividend is a fee based on notional cost to councils of the performance performance. One could consider it a success dividend is estimated to be between $7m and fee. The performance dividend acts as a $8m this year. What this means is that they would permanent incentive for the QTC to perform. If it otherwise be benefiting from an amount of does not perform, it receives nothing—a big, fat around about $15m to $16m for themselves zero. instead of sharing it with the Queensland Government, which, after all, through the QTC I realise that much of this is news to and the AAA credit rating, is the one generating members opposite, but tonight we are going to those benefits. cite the facts and not the fiction of the LGAQ. The duplicity of the LGAQ's approach is obvious Mr Elliott: They are a creation of the State. from its own independent assessment Why would you charge a creation of the State? conducted last year by the international Mr DAVIES: I realise that some of the accounting firm Deloittes. Its analysis of the financial wizardry of the Queensland Treasury performance dividend on council budgets would escape even people like the member for was—— Cunningham, but to put the $7m notional cost Mr Veivers interjected. into context, I make the point that the Goss Mr DAVIES: It was announced last year. I Government—because people say we do not care about local authorities; but we do—has increased capital subsidy payments to local 22 June 1994 8424 Legislative Assembly authorities by a net $30m in 1994-95. That was view that it should have its cake and eat it, too. It said in answer to a question by the Minister for wants money. It does not want the political cost Housing, Local Government and Planning to of being perceived as a big-taxing Government, Parliament on 16 June. so it tries, whenever at all possible, to launder tax The Government has clearly demonstrated rises through third parties. In this case, that is to be local authorities. So, that is the first way in in this year's Budget that it does support strongly which this Bill is so revealing of this local governments, and it did that with a range of Government's deceit. assistance measures. Those measures include the Rural Living Infrastructure Program, worth The second way is linked to the first. The Bill $40m; the Regional Roads Program, worth establishes what the Government wants us to call $50m; the interest subsidy loans to droughted a performance dividend. "Dividend" is a very in authorities, worth $13m; capital works subsidies word with the Premier and the Treasurer. I do not worth $54m; bus subsidies worth $27m; and believe that anyone in Queensland will be fooled road subsidies worth $27m. All told, there is by it. For "dividend", in whatever context it $184m in that range of assistance measures comes from this Government, one should read which this Treasurer announced in the Budget "tax". That is the second way in which this Bill this year. encapsulates and symbolises the deceit of the Government in relation to taxation. In addition, the Queensland Treasury Corporation has saved local authorities more The third way is linked to both the first and than $132m in the past six years. That figure the second and really represents the punchline of the Government's approach. By seeking to represents the benefit to local authorities of give taxes the disguise of a dividend, and by borrowing through this organisation called the seeking to have the public accept that the blame QTC rather than through a private financial for the Government's tax rise really lies with local institution. As the Treasurer said yesterday— government, the Government believes it "These are real savings which have reinforces the PR campaign which is at the core been provided by the State to the local of its deceit, that is, that it is a low tax authorities in the form of dramatically Government. Next financial year, Queenslanders reduced borrowing periods for their loans." will pay over $1 billion more to this State Government than they paid to it in 1990. Under As I keep saying, they want it all. They want their this Government, the demand of the State on cake and they want to eat it, too. the pockets and purses of Queenslanders has The performance dividend on QTC will not grown by over a quarter. Queenslanders should change this situation. The dividend reflects a 50- be asking themselves whether the CPI has gone 50 sharing of the saving. The State will give QTC up by 27 per cent in line with State-based borrowers half and will retain half to spend on receipts. The answer is, "Nowhere near it." Has basic State services like health, education and the economy grown to an extent to justify public safety. anywhere near a 27 per cent increase in receipts? Of course it has not. There were two Mr Elliott interjected. years of very slow growth in the middle of the Mr DAVIES: Councils will continue to save period. So, where did that over $1 billion extra money; they will continue to reduce their debts come from? In large part, it has come from and they will also continue to save time on their measures just like the one we are debating borrowing periods. today: taxation by stealth, taxation by the back- door, taxation by user pays, taxation by dividend, Time expired. taxation by any name other than taxation. Mr BORBIDGE (Surfers Paradise— The fourth reason this Bill encapsulates, Leader of the Opposition) (8.04 p.m.): This Bill is, symbolises, and is typical of the deceitful without doubt, one of the most distasteful approach of this Government to all matters of introduced into this House by this Government. It administration—not just taxation issues—is that it encapsulates and it symbolises the bare-faced has emerged from a veritable caravan of broken deceit of the Government on matters of taxation. promises, bungles, and backflips spread over It does this in four ways. four and a half years. This Bill is the final echo of First, it continues what has become a one of this Government's most spectacular, trademark of this administration: furtive and poorly conceived, poorly planned, dreadfully underhand efforts to dip into Queenslanders' executed and embarrassing bungles: the July pockets, while seeking to shove the blame on to 1993 Interim Budget Statement. Honourable somebody else, in this case local authorities. The members will recall that that was the document method is a direct result of the Government's which proposed, along with the measure we are debating today, and many others, the closure of Legislative Assembly 8425 22 June 1994 one third of the State's rail system. Most of those they read "tax". What is the Government going to measures have been consigned, and very call it next? appropriately, to the dustbin of history. This one So the credit enhancement fee bit the dust. deserves to go the same way. Instead, as a And it bit the dust—according to the continuation of the shocking judgement Treasurer—in a statement of 19 April 1993. The associated with that statement, it is before the Treasurer said that the reasons the tax had been Parliament tonight. So, the bad breeding of this consigned "to the dustbin" were strong measure is impeccable, every bit as worthy of the representations from the Local Government contempt of thinking Queenslanders as were the Association and the Government's adoption of rail cuts, the education cuts and the health cuts. the view that the impact of the drought and The poverty of the background of this so- tough economic times meant that many local called performance dividend is not related solely authorities would have difficulty accommodating to black July. This is the Treasurer's third it. I ask members to note again the deceit: one stumbling bite in four bumbling years at the very does not pay a tax; one accommodates it. same cherry. The performance dividend's first If indeed they were the reasons, then the disguise, honourable members might recall, was Treasurer's justification for now recycling his the capital guarantee fee. This was the tax, in the rubbish can have no credibility whatsoever Treasurer's very first Budget, imposed on the anywhere across this State. The Treasurer will be borrowings of the Queensland Electricity aware, I am sure, that the Local Government Commission at the rate of half a per cent of its Association is still making representations. The total borrowings. Its imposition was a reflection of drought is still there. The tough economic times, the Treasurer's view that the QEC should pay for particularly in the bush, are still there. The the pleasure of a Government guarantee, and he difficulty in accommodating—and for said that he would consider expanding its "accommodating" read "paying"—the tax is also application in future Budgets. The guarantee fee still there. In other words, nothing much at all has was to have been extended in successive changed in relation to any of the criteria on which Budgets across all agencies with borrowings that the Treasurer based his consignment of the enjoy a Government guarantee. This would have credit enhancement fee to the dustbin. brought local government within the net in much the same way that the performance dividend now So what is the real reason for its recycling? sets out to do. The QEC still pays it, but that, for The only answer is that the Government's some years, has been the extent of the capital appetite for cash has not diminished; the deceit guarantee fee. Such is the clarity of purpose and must go on. We must have another try at fooling decision making within the Treasurer's all the people all of the time—in the interests of department, and within the Cabinet, that the accommodating this Government's spending capital guarantee fee died on the vine. habit. So here in this Bill we see the Capital Guarantee Fund, also known as the credit Then we had the second bite. This time, the enhancement fee, also known as the Treasurer's disguise for his tax on borrowings—a performance dividend, dusted off, and the new tax in the Government's first term when we Treasurer is off again. This afternoon, Bill Ludwig apparently were not having any new taxes—was said— a new name: the credit enhancement fee. Like the capital guarantee fee, which preceded it, and "Every time it's hit on the head, it bobs the performance dividend which now succeeds up wearing different clothes. The extra $8m it, the credit enhancement fee was a tax also tax local councils will have to pay will cost based on the Government's view that it ought to jobs. Local governments cannot afford to get a share of the action from the low rates of lose that money." borrowings achievable for public Mr Stoneman: Bill will fix them up on the instrumentalities in this State. So, this credit weekend. enhancement fee—the Treasurer's new tax on Mr BORBIDGE: I am told that Bill is going borrowings—was going to bring in $42m in to fix them up. I do not know about Bill, but I know 1992-93. that Treasurer Baldric is at it again. But has he got Again, however, the cunning plan of the it right this time? Baldric of Treasurers came unstuck. People saw Queensland statutory authorities and local through it. His deceit did not work. People saw authorities do indeed enjoy lower rates of "credit enhancement fee" and they read "tax". interest in their borrowings through this State's People saw "capital guarantee fee" and they central borrowing agency. That is because of the read "tax". They are onto the Treasurer and they very strong performance of the Queensland are onto members of this Government. Already Treasury Corporation, established by the with Mark III they see "performance dividend" and National Party in 1988 to husband the State's 22 June 1994 8426 Legislative Assembly unmatched cash assets, held on behalf of all capital works through relatively easily serviced Queenslanders and made up mostly of uniquely debt. fully funded public super schemes, the uniquely There is simply no justification for reducing fully funded third-party scheme and the uniquely these very real benefits flowing to fully funded workers' compensation scheme—all Queenslanders from the strong position developed by the National Party and the Liberal established by the conservative parties in Party in Government. The scale of this relation to our public cash assets and the inheritance for the people of Queensland and continued development by the coalition parties the great strength and stability that it provides of professional management of that resource. the State have provided massive But that is the Treasurer's reasoning. The dividends—and I use the words "massive National and Liberal Parties did too good a job. dividends" far more accurately than does the The benefits flowing from that period of Treasurer—to the people of Queensland. The Government are just too tempting. The Treasurer biggest and the most important is the basic and simply cannot resist a slice of the action. profound historical soundness of the public accounts of this State. If every public servant in The Treasurer says that statutory authorities Queensland resigned tomorrow, the and local authorities will continue to enjoy a Government could write cheques for their significant advantage over their interstate superannuation entitlements without touching a counterparts—notwithstanding this new tax on cent of money in the Consolidated Fund. The their borrowings. We will see what happens. Budget would be untouched. There is nothing—I repeat "nothing"—in this Bill which limits the size of the performance dividend The Budget is untouched by workers' the Government might impose. The Treasurer compensation claims—hundreds of millions of has indicated that he will seek, in the first dollars a year which do not have to be subsidised instance, to impose a $25m tax via the by one cent of borrowings or withdrawals from performance dividend for 1993-94. But I say consolidated revenue. The same is the case with again that there is absolutely nothing in this Bill third-party claims. No other Government in this which limits the ability of the Government to country is in that position, and this State increase that in coming years. The only potential Government enjoys this unique position natural brake on the open-ended expansion of because of the unmatched actions and foresight this tax is that the Government can, one would of the coalition parties in Government. hope, go only as far as taking all of the benefit of Another of the dividends that flow to the the lower rates achieved through the people as a result of the strong foundation for Queensland Treasury Corporation. But I am the Queensland Treasury Corporation and the afraid even that very sad, totally unjustifiable State's associated AAA credit rating because of outcome cannot be taken for granted as the these cash assets and the sound management outer limit of greed. of them, long established by the coalition parties, Clearly, we have a Government that is is loans at far kinder rates for statutory authorities money hungry. Equally clearly, we have a and local government authorities than can be Government that seeks to insulate itself from the achieved by the central borrowing authorities of political fallout of tax increases by endeavouring other States. It is this benefit that the to foist responsibility for the on-costs of those Government attacks through this Bill. increases onto others. And clearly, we have a The Bill proposes that statutory authorities Government that likes to institute open-ended and local authorities forgo what the Treasurer avenues to revenue. This legislation is a classic maintains will be 50 per cent of the substantial example of that trend. benefits from these lower rates for Another particularly cogent example is the borrowings—which should flow to consolidated corporatisation legislation, which will enable this revenue. The Opposition rejects this Government to take up to 100 per cent of the interpretation of what constitutes an appropriate annual profits of Government owned enterprises dividend for the people of Queensland from the as a tax called—as is the case also in this strength of the Government's financial position particular exercise in deceit—a dividend. The and institutions. The Opposition maintains that body of precedent already built up in the the appropriate dividend is the dividend currently corporations area gives cold comfort in relation to being received by Queenslanders. That benefit the Government's potential handling of this new, is, in relation to statutory authorities, that less open-ended tax. What price then that this new money is required to service debt and more "dividend" will be set at the same rate next year? I money is available for service delivery. In the simply would not give odds. Precedent—even in case of local government, the benefit is less relation to this Bill, with the ink barely pressure on rates and a greater ability for dry—provides very cold comfort. councils and shires to undertake important Legislative Assembly 8427 22 June 1994

For months now the Government has been threaten local authorities around the State with engaging in a concerted campaign to force local bitter revenge if they do not meekly roll over and, authorities to use the QTC. Loan applications by as the Premier and the Treasurer would have it, councils which must, under law, be approved by accommodate that new tax, they make powerful the Treasurer have been, on the direct evidence and influential enemies. of councils, inordinately delayed as part of this On behalf of local government in this State, campaign to force them away from private banks the Opposition will do whatever is necessary to for their borrowings and into the arms of the alert its ratepayers to the reality of that stealth tax. QTC. The response of the banks to these delays When council and shire rates must rise around has been to load their interest rates to cater for the State to take account of the new tax, we will movements in relation to the money markets that be there to back up local government and to might occur during these delays—which is make sure that ratepayers, council by council, natural—and which is having the desired side shire by shire, sheet the blame home where it effect for the Government of forcing authorities belongs—with the Premier and with his to use the QTC. Treasurer. If the deceit of the Government We should ask why, in the context of this concerning that unjust tax overrides its Bill, the Government is so keen to see all local judgment, a coalition Government will repeal that authorities use the QTC. The explanation distasteful and regressive legislation. offered by the Treasurer is that of a benevolent Local government in Queensland, much dictator. In the infamous 1993 Interim Budget more so than in most other States of Australia, is Statement, he simply declared that he knew what called upon to fund much of the infrastructure for was best for local government. The Treasurer a growing Queensland. That is not recognised banned local authorities using any organisation by the Government, which now resorts to abuse other than the QTC because, according to him, against the Local Government Association and that way they would be better off. That directive abuse against the mayors of Queensland. I end has since been changed, but clearly the bullying by quoting Bill Ludwig once more. He said, "This tactics that were used to bring local government is a poor decision politically and electorally and into 100 per cent compliance with sole use of the the Government can expect a backlash from QTC continue. We need to know why. voters." I suggest that Mr Ludwig's comments are I reject the view that this is the heavy- an understatement. handed but caring action of a benevolent Time expired. dictator. Anybody who has played around with that concept through three models over five Mr FENLON (Greenslopes) (8.24 p.m.): I years only to come up with the alleged final support the Treasury Legislation Amendment Bill solution in one of the most discounted 1994. It deals with several issues, some of which documents ever produced by the Government have received far less attention than others. The might be described as a confused but hardly a specific amendments dealing with the benevolent dictator. performance dividend have received dramatic If we discount the Father Knows Best attention. However, the Bill sets out to amend nonsense, the answer stares us in the face. In other provisions, in particular the Offshore his alleged 1993 rubbishing of the credit Banking Units and Regional Headquarters Act enhancement fee, the Treasurer himself and the Government Owned Corporations Act. indicated that 60 per cent of local authorities Mr Grice interjected. were not using the QTC. Clearly, if the Treasurer Mr DEPUTY SPEAKER (Mr Briskey): can force those councils into moving to the QTC, Order! If honourable members wish to interject, the opportunity for increasing the take from his borrowing tax rises, as does his ability—once he they should do so from their own places in the has achieved his monopoly control of local Chamber. I will not warn them again. authority loans—to increase the rate of the tax on Mr FENLON: Although those a captive group. amendments are very important, they have That explanation, I suggest to the House, received less attention. Firstly, I will direct some fits the modus operandi of the Government to a attention to the performance dividend issue. The T. The Opposition cannot bring about the defeat question of why a Bill such as this receives so of the Bill in the Parliament. However, it can and much attention is a great mystery for the public will do what it has done on many other issues and indeed Government members to unravel. recently, that is, alert the public to the deceit of When we consider the history of the Bill, we the Government. The deceit of this measure is wonder why so many Opposition members and extraordinary. Queenslanders will react to it. people outside the House today were so very When the Premier and the Treasurer openly excited over the matter. 22 June 1994 8428 Legislative Assembly

The history of the Bill is very clear. It was first but I am getting used to it because they just keep announced in the 1993-94 Budget statement by coming back as if they have not heard anything. the Treasurer, Mr De Lacy, when he announced However, the fact is that there is no immediate that a performance dividend would be imposed budgetary impact. The classic situation that the on the liability management operations of the Treasurer has outlined to us is that, for example, Queensland Treasury Corporation, the QTC. in relation to the Brisbane City Council, the The legislative amendments now before the borrowing term at present is 11.52 years, whilst House give effect to those decisions. What did the calculation with the imposition of the we hear then? What have we heard since? performance dividend will be 11.44 years, with Absolutely nothing, until the prima donnas in the no impact on the current budgetary period. That Opposition appeared tonight to make a big deal means that no additional money will be required of it. Nothing else has been said. The protests and, therefore, no necessity to increase rates in come out of the blue. any form. I do not how many times I have to say it, One is left to wonder what the Queensland but there is no immediate impact in the current Local Government Association did over that time. budgetary period. Since that announcement was made—that is, I know that it is very hard for those members since last July—22 local authorities have joined opposite to get used to it, but this legislation the scheme. I wonder how many of those people really is part of the broad sweep—the ongoing took part in the Local Government Association march—of accountability that has taken place in protest. How many of those people now bleat to Queensland since 1989. It is a standard of their local media and to their local members and accountability that ensures that the appropriate create the current problems within communities? bodies are the beneficiaries of whatever Much of that protestation centres upon an Government actions are being taken. This is a alleged change to what might be described as classic case of the benefits being shared the contractual understanding of the loan appropriately. arrangement. Much of the debate has already What is a performance dividend? It really is a centred upon, and it is clear that it will continue to benefit that is accrued by virtue of the very fine centre upon, the extent to which the Bill is a real liability management standards of the deviation from those original contractual Queensland Treasury Corporation. They are understandings. I argue very strongly that it is not standards that bring returns to a level that is at all a major deviation from those contractual greater than the general benchmarks that are understandings. accepted within the community. Basically, they The contractual understandings in terms of are standards that give us returns better than the the loan arrangements are clearly of a variable market rate. nature. The Bill is a legislative change that will The 50 per cent share issue, which is provide a finetuning to those existing contractual contained in the Explanatory Notes attached to arrangements, which will ensure that there is the Bill, initially reflects an equal sharing of the continued variation which is at a high performing benefits of the Queensland Treasury interest rate in their favour and which will Corporation's liability management between the continue to be below what are clearly deemed to State and its borrowers. Why should 50 per cent be the reasonable benchmarks within the of it go to the Government and why should 50 market. The Local Government Association and per cent of it accrue to the borrowers? The the major councils are players within the industry rationale for it is that it is, to a degree, a that take part in deeming what are those recognition of the fact that those borrowers appropriate benchmarks and performance become part of the general portfolio of liability standards. management under the QTC. Indeed, it could be In broad terms, it continues to be a very argued—and I am sure that it is argued and good deal for those local authorities. One cannot implemented in some jurisdictions—that the argue that it is not. It is below the performance sharing should be proportionate to the extent of interest rates that local authorities would usually liability funds that those bodies have within the expect. Why would local authorities deal with the overall portfolio of liability management under the Queensland Treasury Corporation other than to QTC. Indeed, if the logic was followed further gain those benefits? They derive great benefits with all rationality, it would result in far more already and they will continue to obtain great benefits accruing to the Government. The 50 per benefits through the current arrangements that cent is a modest measure and, indeed, in purely they have with the Queensland Treasury rational terms, one could argue that it is a very Corporation. generous measure. It is a reasonable measure that will provide for an equal sharing of those I do not know how many times I have had to benefits. contradict the statements of members opposite, Legislative Assembly 8429 22 June 1994

The other main issue within this Bill relates as a backbencher. Jim's strength was that he was to the Government Owned Corporations Act. able to put his stamp on all that he did. He was The specific provision pertains to major still able to do this in a calm and gentlemanly amendments that provide a mechanism to manner. I hope and I aspire to conduct myself, overcome problems arising out of the application both inside and outside the House, in a similar of the Commonwealth's tax equivalents regime manner. I wish Jim the very best in the coming to Government owned corporations. The years. situation that we have in place as a result of the The recent by-election for the seat of Mirani Commonwealth/State agreement will ensure that was a very short and intensive campaign. I would the tax equivalents return to the Government. I like to record my deep-felt gratitude to all those know that that is a very difficult issue for those people who made sacrifices to help me and the members opposite to understand because they campaign during that period, including the simply have never accepted the logic of Leader of the Opposition, Rob Borbidge, Government owned corporations. They would Deputy Leader, Joan Sheldon, shadow Ministers still have us working within Government owned and backbenchers and to all those supporters corporations on a line accounting basis without and personal friends who helped on the day, the strict modelling that this Government has put particularly Charlie Brownlow and the campaign into place. This measure puts into place one of committee. the final ingredients of the relevant building blocks to ensure that Government owned My tribute must also go to my wife and family corporations exist and perform on a very similar for their untiring support leading up to and during basis to private enterprise organisations. the campaign. Without their support, I would not be here. It would be remiss of me if I did not make We have already heard the knocking from mention of the dedicated and hardworking Opposition members in relation to this issue, but people who were involved in the campaign it is knocking that stems from the basic premise throughout the by-election through the National that members opposite have never accepted, Party organisation, the branches, the women's and will never accept, the very sound logic groups and the Young Nationals. I can assure behind the establishment of corporatisation laws them that their dedicated work was very much in this State. This legislation is part of that appreciated. process. I know that we will hear long and repetitive speeches tonight from those opposite The result of the by-election at the end of who will simply try to knock and be negative the day was very satisfying. As a National Party about a very sound measure to bring about an candidate supported by the Liberal Party, I was equitable distribution of the performance of able to achieve more than 52 per cent of the those organisations within the State primary vote. My selection as a joint candidate for Government, the QTC and Government owned the National Party and Liberal Party was historic in corporations. However, it is a system that, that it has been more than 20 years since that ultimately, will benefit those local governments has happened in Queensland and certainly the through better performance of the State first time ever in Mirani. Government, better performance of the QTC and The boundaries of the seat of Mirani have a far more rational approach. changed quite a number of times since the time Mr SPEAKER: I call the honourable of its inception in 1911. It now covers an area member for Mirani. from about 40 kilometres north of Rockhampton, 350 kilometres up along the coast into the Honourable members: Hear, hear! northern suburbs of Mackay and westward to, Mr SPEAKER: Honourable members, this but not including, the coalfields. However, it is the member's maiden speech. I suggest that does include the mining town of Glenden and we give the honourable member the courtesy the major railway town of Coppabella. that we give to all members when making their The seat of Mirani is historic in that it has maiden speech. been held by such a small number of high profile Mr MALONE (Mirani) (8.39 p.m.): As the members. From 1935 to 1947 it was held by Ted newly elected member for Mirani, I pledge my Walsh, of the ALP, who later held the seat of loyalty and that of my electors to Her Majesty the Bundaberg and was Treasurer and Transport Queen and her representative in Queensland, Minister from 1950 to 1969. Ernest Evans, from Her Excellency the Governor. It is also my great the Country Party, held the seat from 1947 until pleasure to have the opportunity to pay tribute his death in 1963. Then, of course, Tom and respect to my predecessor, Mr Jim Randell, Newbery, CP—and some honourable members who held the seat of Mirani for 14 years. Jim would remember him—took over from then until Randell represented the electorate of Mirani with 1980. Jim Randell held the seat for the next 14 distinction, both as a Minister of the Crown and years. 22 June 1994 8430 Legislative Assembly

The electorate contains some 24 000 Mirani is the most important sugar-producing enrolled constituents and contains some or all of electorate in Queensland, with a production of the Shires of Sarina, Mirani, Nebo, Mackay and about 6.6 million tonnes of cane through four Broadsound and the numerous centres of mills this year. Plane Creek is owned by CSR, Sarina, Walkerston, Bakers Creek, Koumala, and Racecourse, Marian and Pleystowe are Carmila, Marian, Finch Hatton, Eungella, Nebo, owned by the Mackay Sugar Cooperative. In St Lawrence and Marlborough. All have their own addition, Mackay Sugar has just built a sugar unique problems and needs. refinery at Racecourse Mill, and a silo and loading We must all remember the never-ending facility at Mackay Harbour, at a total cost of $80m. voluntary work that the local charities and service The refinery will have a capacity of 350 000 clubs do in each of these towns to make them a tonnes of white sugar per year for both domestic better place in which to live. The local Apex, and export customers. Lions, Rotary and Scope clubs, in conjunction CSR has invested heavily in the ethanol with Scouts, lifesavers, pensioner leagues, industry, with the construction of a $24m Bio Still RSLs, church and civilian widows' groups are a Technology Plant at Sarina. The plant produces few of the organisations that contribute to the 140 000 kilolitres of ethanol for both export and wellbeing of the community. domestic use per year out of an input of 220 000 I am well aware of the history of the tonnes of molasses. electorate and I have some challenging ideals to One must remember that this is the best live up to. I can assure you, Mr Speaker, that I am season we have had since the disastrous years determined to serve my electorate with honesty, at the turn of the decade. For instance, the Plane vigour and commitment. Creek Mill at Sarina only crushed 485 000 tonnes I firmly believe that we all are a product of of cane in 1991. However, this year there is an environment and heritage, and I am extremely expectation that it will process about 1.5 million proud of mine. My parents began pioneering tonnes, and there is a similar comparison in all the work on the family property in the early thirties, other mill areas in Mackay. However, these while my father cut cane by hand to establish the figures mask the heartbreaking and soul- property. I was the first of four children, and I can destroying effect on people through that period vividly remember doing homework by the light of of drought. a kerosene lamp and riding to school on a bike Since that time, there has been a on a dirt track with grass growing in the middle. I tremendous investment by farmers in farm dams, attended high school at Sarina and was school bores and irrigation equipment running into tens captain. I returned to the farm in 1961 and I cut of millions of dollars. The extra pump capacity of cane by hand for two years before starting out the recharge system for the Kinchant Dam, with both frustration and excitement in the new together with the coming on-line of the era of mechanical cane harvesting. I have Teemburra Dam in a few years' time, should continued my involvement until this year. I am mean that a portion of the Pioneer Valley will be pleased to have my wife, Mary, and my father in drought-proof. However, there have to be the Chamber tonight. assurances that the area in the Upper Pioneer Honourable members: Hear, hear! Valley will be first served by water from the Teemburra scheme and that there will be a Mr MALONE: Over this time, I have been continuing and urgent investment in water active in many community organisations, and one storage in the upper valley to ensure that the of those was Apex. I am very proud to be a disaster of the 1990s will never happen again. charter member of Sarina Apex Club, having served in the positions of club president, district Because of the below average rainfall and governor and zone president, and finally a life more reliance on irrigation, the ground water member of the Sarina Apex Club. level has dropped to an historically low level. Indeed, in the Chelona and Bakers Creek areas, Also in that time, for more than 20 years I some bores have become unusable because of was a delegate to the Australian Sugar salt intrusion. The supply of irrigation water for Producers Association and later served five farm production has a manyfold effect. Firstly, it years on the board of the Australian Cane assures a higher and sustainable production Farmers Association, three of those as chairman, through both good times and bad. Secondly, it until the time I entered Parliament. In this role, I creates an enhanced positive outlook with served on the Sugar Industry Policy Council and greater employment and business opportunities. Sugar Research and Development Corporation Thirdly, it ensures that our smaller provincial Selection Committee and was involved in towns remain viable, with greater economic discussions leading up to the division of sugar benefit to all. moneys, which happened recently. Legislative Assembly 8431 22 June 1994

So, when one asks, "What price water to Drought has a debilitating and limiting effect farmers?", or "Should the user pays principal on the electorate, as it does of course across the apply to all water projects put in place by rest of Queensland. Indeed, despite widespread Governments", one must also realise the rain, there are areas that are still severely affected tremendous economic benefits to the wider by years of adverse weather conditions. The community and the major benefits to Nebo district is one area that is currently severely Government in increased economic activity, affected. which of course will lead to a broader and larger The Hay Point coal loading complex is the taxation base. There is no point in supplying major industrial enterprise in the electorate. water to farmers at a price they cannot afford. Construction began on facilities in 1969 with the The southern cane railway system is about development of Goonyella mine, and the first to commence and not only will ensure that the vessel was loaded in 1971. There are two southern region of the Plane Creek Mill remains companies operating separate coal loading viable but also will access a great deal of potential facilities, Hay Point Services Pty Ltd and the new cane land. The southern cane railway is Dalrymple Bay Coal Terminal. Hay Point Services being built from money gained from the Sugar Pty Ltd is operated by its owners, Central Industry Infrastructure Fund and from a loan Queensland Coal Associates Joint Ventures, taken out in partnership by the mill and growers, and has an investment of about $700m and a with the mill supplying rolling stock and growers budget allocation of $15m for a new ship loader guaranteeing a level of freight charges to enable this year. The current facility will load 24 million the project to be paid off over about 10 years. tonnes of coal this year into 300 ships. The total cost of the project will be $22m. Dalrymple Bay Coal Terminal Pty Ltd was The infrastructure money being used in formed in 1981 to manage, operate and maintain these projects was negotiated by the sugar the terminal on behalf of the owner, the Harbours industry with both the State and Federal Corporation of Queensland. The first coal was Governments as a compensation factor for the shipped in 1983, and Dalrymple Bay is currently winding back of the No. 1 Pool price premium going through a major expansion stage at an and, among other things, the changed estimated cost of $160m added to an circumstances in the ownership of the bulk sugar establishment cost of $450m. After expansion, terminals. However, the area south of Sarina Dalrymple Bay will have the capacity to load about extending down to the boundary of the 26.5 million tonnes per year and, combined with electorate is in a critical position with regard to Hay Point Services, is the largest coal port in assured water supply. To enable the southern Australia and second largest in the world, with a area to expand to its full potential, there is an combined output of 50 million tonnes a year. The urgent need for a reliable and sustainable water largest coal port in the world is Richards Bay in supply. There are substantial plans for tourist South Africa. The total investment in the export developments all along that section of the facility, in conjunction with the associated tug coastline, and certainly a major development in boat harbour, is in the vicinity of $1,400m. the Clairview area is being proposed. Without Mirani boasts some of the most scenic and doubt, the potential for crop and fodder spectacular areas in Queensland. From the production in the St Lawrence and Marlborough isolated long, white beaches in the Cape areas on the coast and inland of those areas Palmerston National Park to the beautiful would be enhanced enormously by a reliable rainforest and scenic views of Finch Hatton water supply. Gorge and Eungella National Park down to I call on the Government to upgrade its Shoalwater and Stanish Bays, there is a priorities in relation to a dam in the Connors River heightening awareness of the value of tourism in and Isaacs River area. I believe that a the area, and there must be a greater emphasis considerable amount of survey work has already on maintaining and developing better facilities in been done in that regard. That area has a these and other tourist areas within the catchment of 19 500 square kilometres, with an electorate. I refer mainly to access roads, walking annual mean run-off of 2 million megalitres at the tracks and camping facilities that will encourage Yatton gauging station on the Isaacs River. In people to stay longer with us when they visit. I will comparison, the Burdekin River has a catchment be making representations for Government of 114 000 square kilometres and a mean annual funds to upgrade access into Finch Hatton flow of 6 million megalitres. So it can be seen that Gorge and Cape Palmerston National Park, there is tremendous potential, particularly as this because any upgrading in those tourist storage will be elevated above the coastal plain, destinations is certainly beyond the resources of and there will be an opportunity to generate the local authorities. power as water is dropped down to the coast for irrigation, industrial and domestic use. 22 June 1994 8432 Legislative Assembly

Because of distance and isolation, and dumped up to 200 metres or 300 metres from a particularly because the electorate has more than darkened, deserted platform, sometimes with no 300 kilometres of the Bruce Highway, there is a pay phones, lighting or other facilities. desperate need for a dedicated medivac aircraft, In relation to law and order matters, it is preferably rotary wing, to be stationed in the imperative that the strength of the Queensland electorate to cover the area from the reef to the Police Service be maintained and enhanced so coal mines. The Bruce Highway is now carrying that more police can be placed on the beat, so to more than 4 000 cars a day, and accidents are speak. I will be active in supporting the unfortunately becoming very common in the toughening up of laws to ensure that people isolated areas around St Lawrence, causing who break laws pay the price relative to the funding and manning problems for the voluntary offence. It is so disappointing to read sometimes SES members who live there and who frequently have to deal with these emergencies. Indeed, that, after months of investigation by police, the community of Nebo, which is a key centre when the case is brought before the courts, the between Mackay and the coalfields, faces a offender is given a suspended sentence or is similar situation with a severely disjointed sentenced and, after a short period, is let out on emergency services system—a situation which is parole. ineffective and potentially dangerous, but one I have the greatest respect for the teaching which can be overcome by a combined facility. profession—those people who are quite often Other regions on the coast similar in size to the the role models for our children. It is particularly Mirani electorate have dedicated rescue facilities, distressing to see the almost total lack of respect and I will be making representations and lobbying for teachers, fellow students and other people's for a similar service. property that exists in some schools today. It The ultimate result of deregulated shopping would seem that, while some groups are strongly hours is that the smaller corner-type stores will advocating students' rights, they are forgetting come under extreme pressure to compete for about the responsibilities that must accompany market share and, in those circumstances, many those rights. The frustration, stress and anxiety will not survive. The tragedy is that policies that that results from teachers having to cope daily allow consumers extended shopping hours, with disobedient and disrespectful students is far thereby eliminating competition by bankrupting too common. It is time to bring back some old- small businesses, may backfire and cost fashioned discipline and strong basic values of consumers dearly. what is right and what is acceptable behaviour in our society. The beef industry has a major input into the economy of the region, and there must be Mirani is a very special part of our great recognition that whatever can be done to sustain State, and I am determined to serve my the industry must be done. Road trains are the electors—the people of Mirani—with honesty, cheapest and most effective method of vigour and commitment. I thank you, Mr Speaker, transporting cattle into the Bakers Creek abattoir. and the members of Parliament for the tradition At the present time, they have to terminate their of the maiden speech extended to me as the trip at the top of the Eton Range and transfer newly elected member for Mirani. cattle to a single trailer. I will be making Honourable members: Hear, hear! representations to the Government to upgrade parts of the range road so that road trains may Mr CAMPBELL (Bundaberg) (8.58 p.m.): I terminate closer to the abattoir. would like to offer my congratulations to Ted on his election as the member for Mirani. I know that There is also an urgent need for a high-level other honourable members join with me in bridge over Cattle Creek at Gargett. During expressing best wishes to him. I take a keen periods of wet weather, the low-level interest in the sugar industry. I know that Ted will bridge—which is also narrow and dangerous—is add a lot of experience to the other side of the frequently flooded, causing major disruption and Chamber on matters relating to that industry. I inconvenience to the people living in the top look forward to his spirited and informed end of the valley, particularly school children and contribution to debates on the sugar industry. the dairy industry at Eungella and surrounding areas. Maiden speeches are probably the only occasions on which all members actually listen to One of my personal disappointments is the what is being said in this Chamber. winding back of services in country areas. One of the losses has been railway stations on the Opposition members interjected. coastal line in places such as Koumala and Mr CAMPBELL: I thank members for Carmila, and reduced services at Sarina to the acknowledging that comment. Although the extent that in the early hours of the morning word "Parliament" comes from a word meaning elderly people with luggage are frequently "to speak", too often members speak and Legislative Assembly 8433 22 June 1994 no-one listens. Frequently, members will deliver we had continued because of the strong state their speech but will not listen to the other side. the Opposition had left Queensland in. Perhaps members should spend more time Opposition members said it again for the second listening to what other members have to say. year, and again for the third year. It was said yet Members on the other side of the Chamber have again in the fourth year. We are now coming into a hell of a lot of listening to do! the fifth year and they are still saying that we have I know that the Leader of the Opposition made Queensland stronger thanks to the strong and other members opposite like to hear base they had left for Queensland. We have fully themselves talk. During this debate, members funded superannuation and workers' opposite have claimed that the performance compensation, so in the future we will have zero dividend will result in increased rates. That is not net debt. right. Even the Local Government Association What the Opposition is talking about itself has indicated that there will not be reminds me of what the Liberal Party members increases in rates because of the performance are doing. They want to go back to the times of dividend. Because it will be quoted again, I will Menzies. Do honourable members know that quote from the Deloittes report on the they are saying that they have to get back to the performance dividend that was actually times of Menzies? Old Dame Patti is being presented to the Local Government Association. brought out to say that that is what the Liberal It states— Party is all about. But the Opposition is going "It is possible that, given QTC's history backwards; it has to go forward. of outperforming both its benchmark and I accept that the Leader of the Opposition the other State's central borrowing acknowledged that lower rates have been authorities, Councils could incur the cost of achieved by the Queensland Treasury the Performance Dividend and still reduce Corporation. That is what it is all about. Because their current expected borrowing term of those achievements and because of those without any increase in existing savings—as has been mentioned previously, repayments." there is already $132m worth of savings to local I say to all those people who are saying that rates authorities—in the future, those savings will be will go up: that is false. Even the expert opinion shared. Those savings in interest that have been given to the local authorities has indicated that achieved by the QTC are now to be shared there will be no increase in rates. between local authorities and the State Government. The Leader of the Opposition said that this legislation was deceitful. This legislation was Mr Johnson: Can you prove that? announced in the Budget last year; last year it Mr CAMPBELL: It has been shown. Yes, was announced that the legislation would be we can prove it. Last year, the QTC was able to introduced for this financial year. There is borrow funds at close to 1 per cent less than the nothing retrospective; everybody knew that it benchmark, at 1 per cent less than the rates paid was to be introduced this financial year. In the by local authorities in other States. We have past, people have said that some other achieved that. That is what it is all about, supposed taxes were to be introduced but, due achieving and sharing the savings. to difficult times in the bush, they have not been Mr Johnson interjected. introduced. Let us see what has happened. This Government has provided special funding to Opposition members interjected. local authorities, especially in the bush. For Mr DEPUTY SPEAKER (Mr Briskey): example, there is the Rural Living Infrastructure Order! The House will come to order. Program, $40m; regional roads program, $50m; Mr CAMPBELL: I thank the member for interest subsidy loans to drought affected Gregory for listening. The member for Caloundra authorities, $13m; capital works subsidies, made another interesting point. She more or less $54m; bus subsidies, $27m; and road subsidies, indicated that, because several aspects of $27m. In actual fact, there have been substantial Treasury have been brought into this one Bill, all increases in local government subsidies by this the rotten eggs are in one basket. It is important Government. We have been ensuring that local to realise that, quite often, other Houses of governments are provided with the funds for Parliament actually debate three or four pieces of their future. legislation together. After five years, Opposition members still Mr Cooper: Cognate debates. come in here and say that anything good we are doing is all due to what they did when they were Mr CAMPBELL: That is done quite often in Government. After the first year the in Federal Parliament, so there is nothing special Opposition said that we had done all right, that about this Government doing it. 22 June 1994 8434 Legislative Assembly

Another question raised was as to the timing Mr CAMPBELL: The important factor of this measure. Opposition members wanted to here is—and this is the concern of the Liberal know why this legislation is being introduced this Party with looking backwards—that somehow in year. It is being introduced this year because it this debate the Melbourne weather has got was announced for this financial year. This mixed up with legislation for overseas banking measure was announced for the 1993-94 units or for regional headquarters. financial year, and that is why it has to be Mr Johnson: What are you talking about? introduced before the end of the financial year—nothing more, nothing less. It has not Mr CAMPBELL: What am I talking about? I been introduced because a Budget has been am talking about trying to bring new multinational delivered. companies to Queensland. That may be beyond the honourable member's scope, but that is one Mr Johnson: Why has it got to be done at aspect of the legislation that we have here. all? Another matter of concern is the use of Mr CAMPBELL: Why is it being done at terminologies. We had the member for all? Because we are going to share in the savings Caloundra talking about POSs; those affected of Treasury. can proceed offshore. If members opposite do Mr Cooper: You are taking with one hand not think that being able to have multinational and giving with the other. organisations and operations in Queensland is important, then we will stay—— Mr CAMPBELL: Yes, we are taking with one hand and giving with the other. That is what Mr Johnson interjected. Governments are all about; that is what socialism Mr CAMPBELL: The ignorance of the is all about. The untruths and the member for Gregory has been shown, because misrepresentation that are being put forward are this legislation has three elements. I am not wrong. For example, the current term for the talking only about performance dividend; I am Brisbane City Council's loans is 20.38 years. At also talking about amendments relating to the present level it is expected to repay that in overseas banking, regional headquarters and 11.52 years. Even with the performance Government owned corporations. I am afraid that dividend, at the present repayments those loans if the honourable member cannot count past will be repaid in 11.44 years. Cairns City Council, one, that is a problem, and he will never be a which has an existing current term of 13 years, leader. One has to be able to count to at least even with the performance dividend will be down five if one wants to be a member of the Liberal to 12.85 years. The Mount Isa Council, with a Party. current term of loans at seven years, is now down Queensland has a chance of getting to 3.33 years. regional headquarters. We are not looking for Opposition members interjected. Asian companies. Many large European Mr CAMPBELL: They have got reasons. companies want to invest in and be part of the Asian markets. They have little or no knowledge Mr Johnson: Tony Mooney was there, of Asian markets. Because we are in that region, too. we have a chance to get those people to service Mr CAMPBELL: Tony Mooney is not the Asia from a country with which they can identify. mayor for Mount Isa, he is the mayor for We should be considering that. Townsville. There is no need for any rate We can provide those companies that deal increases; under their existing terms the loans with overseas operations with incentives to come will be paid off sooner than expected, even with here and undertake those operations in the performance dividend. There is to be a Queensland. If we do not do that, they will go to sharing of the savings. The important point places such as Singapore. Areas such as Hong needs to be made that if there are no savings Kong and Vancouver have very similar there is no sharing with the Government.. legislation. We must try to create those special The member for Caloundra caused me incentives on a Federal and State level to bring some concern when she showed that she had people to this State. Other States want these really no appreciation for the second aspect of same organisations. For example, Motorola may this Bill, that is, the offshore banking and be doing its R and D for the Asian area in South regional—— Australia. That represents 400 to 500 good, Mr Johnson interjected. long-term, value-adding jobs that will come to Australia. Mr Veivers interjected. Mrs McCauley: Why don't you stick to the Mr DEPUTY SPEAKER: Order! The topic? member for Gregory and the member for Southport will cease interjecting. Legislative Assembly 8435 22 June 1994

Mr CAMPBELL: The honourable member performance dividend. We have shown that a lot does not realise that there are three parts to this of untruths perpetrated by the Opposition and legislation. It is not only about local authorities. the Local Government Association have no We will hear the honourable member basis. There is no reason to increase rates regurgitating what has already been said by other because of the performance dividend ratio. We Opposition members. It will be tedious repetition. can show that members have The member will be beating around the bush, benefited—especially local authorities—by saying the same GB stuff that we have become being able to borrow through the QTC. used to—the Goebbels Borbidge belief that if I support the Treasurer in all these one says something often enough people will amendments. As I said, there are three aspects believe it. But they will not. of the Bill. I have covered two. I did not mention There is no need to increase rates because corporatisation, but I do know that we are going of performance dividend. If the honourable into the future and we will take Queensland and member says that, she is misleading the people local authorities with us, whether or not they want of Queensland. Opposition members have no to be dragged into the next century. vision. They cannot see past this legislation as it Mrs McCAULEY (Callide) (9.18 p.m.): I relates to local authorities. The member for acknowledge that this Bill contains more than Caloundra could not see past that. She could not that which affects local government, but as the see what these amendments could do to bring Opposition spokeswoman on Local Government new industries to Queensland. this will be the area on which I will concentrate. At Mr Johnson interjected. a time when local government, more than ever Mr CAMPBELL: That is interesting. New before, is being asked to contribute to areas industries? The Opposition does not have the which are clearly State Government knowledge or appreciation that we can bring new responsibility—areas such as infrastructure industries to Queensland without making them around schools, hospitals, police stations, rural mutually exclusive of the organisations that are lands protection, the eradication of noxious already here. The honourable member for weeds, library funding; the list is endless—the Caloundra said that if we do anything in terms of greedy, grasping Goss Government is seeking to bringing in overseas banking units or having impose further costs on local government by way regional headquarters to service the rest of the of this retrospective taxation legislation. region, we are somehow going to disadvantage In 1991, when the State Government first local companies. That is not the case. The came up with this good idea to line its coffers at amendments to this legislation ensure that any local government expense, it was called a capital local activities are not subsidised. Why should we guarantee levy, and it was to be levied at the rate miss out on these organisations and companies of one half of 1 per cent. This was defeated on when they could be going to other areas? the basis that, in the whole history of local With OBUs and RHQs we can look at several government in Queensland, no council had ever things, including direct and indirect employment; defaulted on its debt. a boost to local commercial and residential In 1992, the tax was recycled as a credit property markets; a potential source of new enhancement fee and was again defeated. In business for local accounting and legal firms and April 1993, the Treasurer announced, by way of business consultants; a broadening of the local press release, that the idea—this tax—had been financial and business services sector and consigned to the dustbin. However, in the 1993- related infrastructure; greater integration of 94 Budget, there it was again. Despite the Queensland into the world economy, and opposition of Deputy Premier Burns and Local particularly the Asian economy; and a potential Government Minister Mackenroth, Mr Goss and boost to local investment by multinational groups his tricky Treasurer were determined to go ahead which might follow once they have established with this tax. This time it was called a performance these overseas banking units. dividend, and to confuse the issue totally These are key elements into giving us a new Treasury had devised an exceedingly complex breadth in our community. Opposition members formula for its introduction. This formula is not might laugh at this, and they might not want to prescribed in the legislation and will no doubt know about it , but we need that to develop come in by regulation. However, because the Queensland. We need to go that one extra step State Government has said that it will raise some so that we can become a financial centre, and we $8m from local government in this manner, the can do that because we are closer to Asia than levy is estimated to be equivalent to 0.25 per Melbourne or Sydney is. cent on outstanding debt to local authorities. Tonight, for the next few hours, we will hear Now I come to a point on which a lot of about one aspect of this legislation, namely, the people are not clear, that is, whether the tax is on 22 June 1994 8436 Legislative Assembly all borrowings of council or only on recent Another western shire raised a different concern. borrowings. The Treasurer says that it is not It said— retrospective, while his Labor mate Lord Mayor "We are particularly concerned if State Jim Soorley says that it is retrospective and will Government insists on taking over loans that even cover money borrowed by Clem Jones to they may also insist on taking over council's sewer Brisbane. God help me! I remember that; I investments. This decision continues to was a kid! Let me tell members in simple terms: erode the autonomy of local governments. If this is retrospective legislation. What has we are merely puppets of State Government happened is that the QTC, when it made a strong then there is little point to our existence." push for local government business, gave such good terms that shires such as my own Banana Noel Playford, the Mayor of Noosa, was Shire consolidated all their loans into one and quoted in his local newspaper as saying that this gave their business to the QTC. So did the tax would cost his shire council $200,000 a year Brisbane City Council. That is where the Clem and lead to an average 1 per cent rates increase. Jones borrowings come in. It is not a new loan; it He also said that he believed that once the is old loans consolidated and converted to the precedent was set, it would only take another QTC. The Treasurer is quite wrong in stating that financial squeeze for the Government to raise it is only new loans. He is trying to con people the dividend percentage higher. That man is not and totally confuse the issue. stupid. He has in fact hit the nail on the head. Of course, as sure as Christmas comes round once Let us turn to some of the local a year, this greedy, grasping Goss Government governments in Queensland and how they will will increase the levy. be affected by the QTC performance dividend. I will not name those councils other than those King and Co., solicitors, point out that there that have gone public in their local media, as are no limitations or restrictions on the amount of again I need to protect them from the Treasurer's the dividend or the way in which it will be threat of interference in the running of their calculated and paid. It says also— councils. The Treasurer is so interested that he is "It is quite possible as the legislation reading the Cairns Post. It is very pleasing to see presently stands for QTC to require council that he is paying attention to the way in which his to pay more than the amount of the charges will affect local governments. That says it performance dividend, and . . . it is within the all. He is reading the newspaper. theoretical power conferred by the Several small rural councils have the same legislation for an attributed amount of 50 per concerns. One said— cent (or 100 per cent or more) of borrowings to be charged to a council and added to its "It is believed that this is a restrictive debt. In other words, a council could have a trade practice that does not allow the local debt of $1 million one day, and $2 million council to support its local bank." the next." Mr Nuttall interjected. Mayor Playford is very correct in his summary of Mrs McCAULEY: Is the honourable the situation. member still painting his toenails? I can tell that Toowoomba's Mayor has gone public to say he is. He should do it some more and give them a that the tax will cost his council close to $1m. We touch up. That is as productive as anything else have read that the Brisbane City Council will be that he does. levied an amount which equates to some $19 Another local council said— per head of population in this city. Another large "The local bank will suffer a big loss and provincial south-east corner council calculates its it will affect the viability of the bank by levy as amounting to some $600,000 changing its rating and its employment annually—and the speaker who preceded tried levels." to tell me that it will not mean that the rates will be increased. I do not know how he thinks local Another small rural council said— governments raise their money, if not through "Loss of the council's borrowings will rate increases. further add to the bank's decline and the Gladstone City Council's Col Brown—who loss of the only bank from this small town has retired, so I can mention his name—told me would be a tragedy." that the tax would mean an additional payment of Another one said— in excess of $1.2m at the end of the term of that "The proposed dividend will apparently council's debt. Fred Murray, who has also prolong council's objective of being debt retired— free and this is not acceptable to the shire's Mr Johnson: Neil Bennett ran away. residents." Legislative Assembly 8437 22 June 1994

Mrs McCAULEY: He ran away the minute During the Estimates Committee hearings, we pointed to him. He shot through, poor little in answer to my question about delays, I was told wimpy fellow. Fred Murray, who has also retired, that loan approvals were granted in April, but said that the best case scenario for his shire none have been granted since then. I have since would still mean an additional $18.75 per found out that the loan approvals granted in April rateable property per annum for the Maroochy were lodged in December last year, so that is Shire. No council, not one, wrote to me saying more than five months of messing around by the that this tax was fine by them. All councils that QTC—and that is Government efficiency! It is an have significant borrowings agree that the absolute disgrace. retrospective legislation would impact on them Mr Beattie: You said that before. Turn the and, in turn, on their ratepayers by higher rates. page. The Treasury source, who was quoted by Mrs McCAULEY: The honourable Opposition speakers who preceded me, says— member would be better served by talking to the "This dividend will flow directly into Bollinger Bolshevik at City Hall, trying to soothe consolidated revenue, and as such, it is his feelings and looking after the ratepayers of clearly a tax and not payment for a Brisbane who will look to him to say, "What have contingency liability. you done to look after us?", rather than The use of such a tax is inefficient and lumbering us with a whole lot of extra funds. inequitable because the burden of the tax That brings me to another point raised by my falls on a much narrower tax base—that is, Treasury source. At present there is no ratepayers, rather than on a more efficient performance monitoring of the QTC's Statewide base. operations, which is passing strange considering The proposed legislation restricts the this Government's emphasis on performance, choice of financing opportunities with all of those bodies such as the PSMC. If substantially and forces local governments such performance monitoring were undertaken, into utilisation of the QTC." it is likely that it would show that the QTC is a That is a point that I raised during the high-cost and inefficient operation. That can Estimates Committee debate with the Treasurer, easily be seen from the steep increases in of which he denied all knowledge but which is administration costs following the separation of quite true. I also raised it with the Minister for the QTC from the Treasury Department in 1991. Local Government. He, too, was totally unaware Instead of the Treasurer threatening local of the situation until I told him about it. It makes governments with more detailed audits, as he one wonder about Ministers and who runs the has done in bully-boy fashion, the Government departments. should provide local governments with improved Another example that I have is of a western performance monitoring systems and a detailed shire, and again I will not give names because of audit of the QTC as well as the framework which the Treasurer's threats of retribution against will be used to assess the performance dividend councils that protested about the tax. That and attributed amounts. The former Treasury council secured its money from its local bank in official said— January this year, but it still has not received loan "No doubt the Government will say that approval from the QTC. That is despite some 30 the QTC is currently being monitored by the phone calls and six letters to the Minister. In that Treasury Department, but no resources are time, the interest rate has risen from 6.9 per cent allocated to this task and no monitoring to almost 10 per cent. It is an absolute and utter actually occurs. Similarly, the representative disgrace. of the LGA on the board of the QTC will All along, the QTC has said to that council, have difficulties in evaluating performance "Borrow from us and we will give you the cheque given the very specialised requirements in the morning." However, that council wants to needed for rigorous performance support its local banks which employ some 80 monitoring of such a large liability manager." people in the town. The council has resisted the This is an underhanded and greedy move subtle coercion of the QTC. Now it finds that it by the State Government, a move which even must deal with the QTC. Its loan approval has ALP stalwart Bill Ludwig says is politically stupid. been held up for too long and the banks do not Tonight, I heard him on all four television want to know the council any more. They have channels. He said, "It's a bad decision both been messed around long enough. Four times politically and financially, a bad decision." I do not the banks put forward their proposals and four know why the lot of fools in the Government do times the QTC refused to give that loan approval. not listen to him. He said that it is a bad decision. 22 June 1994 8438 Legislative Assembly

Legal opinion from King and Co., solicitors, Mr Bennett: He's on holidays. states— Mrs McCAULEY: The sensible man is "The purpose of the Bill is to implement taking a holiday from this place so that he will not the proposed performance dividend with be here to see this shameful action perpetrated retrospective effect back to 1 July 1993. It today. Advice from the former senior Treasury does so by using the force of legislation to official about this levy is very informative. override existing agreements freely Mr Pearce: We could tell you a few stories negotiated between councils and the QTC." about Mr McCauley and how he rips off people. It goes on to state— They took him to the tribunal because he "Any payment to a Government which wouldn't pay his workers. is not directly related to the cost of provision Mrs McCAULEY: It is very low and of a specific Government service can be underhanded to try to attack people through described as a tax. In that sense the their spouse—very low indeed. That senior performance dividend is a tax and the Treasury official stated that this method that is purpose and effect of the proposed used to calculate the fee is not financially sound legislation is to introduce that tax with and tends to overestimate the benefit provided retrospective effect. by the State Government. He stated that the Accordingly, the legislation is totally method was conceptually flawed for a number of contrary to the fundamental legislative reasons, and he then went on to give some of principle set out in section 4 (3) (G) of the those reasons. Legislative Standards Act 1992." I say to Mr Pearce, the member for Fitzroy, That was legislation brought in by this that my husband is present in the House tonight, Government. It is now contravening its own and if he would like to have the courage of his legislation. convictions and have a talk to him outside, I am sure that my husband would be happy to hear As Lord Mayor Soorley pointed out, not what he has to say. even Joh would have pulled a stunt like this. Yet this Government, hungry for every penny that it The State's AAA rating is something not can rake in—and it gets it from fidelity funds, solely due to the performance of the State Metway Bank—from every possible hollow log Government; it is due to the performance and and nook and cranny—— potential of the State of Queensland. It must be remembered that the State's local governments Mr Elliott: The Nominal Defendant Fund. and enterprises are part of the Government Mrs McCAULEY: Yes, all of those. This sector and, therefore, the performance of those big spending, bureaucratically bloated entities, their asset bases and their potential Government, this typical Labor Government, is revenue-raising capabilities are taken into doing what even the arch villain, Joh, would not account in the State's credit rating assessment do. and, consequently, its overall costs of funds. What do those honourable members This learned gentleman goes on to observe— opposite say about this? What about the member "Each entity should receive for Sandgate? I have not heard from him. Are we recognition for its contribution to the going to hear from the member for Fitzroy? security of the asset pool for which it should Government members have not the courage to receive a benefit. stand up to their Premier and Treasurer and say, The issue indeed, is whether local "No, we will not have this retrospective tax. This governments and Government enterprises is wrong." They just sit there and let themselves can get a better deal by joining forces, be walked over by this greedy Treasurer and pooling risks and assets, and establishing Premier. They have not even the courage to their own central borrowing authority backed stand up to them in caucus and say, "No, we are not by a Government guarantee, but by the going to look after local government." That is assets of the contributors to the authority." what they should be doing, but that is not what they are doing. They are too busy with their It is very interesting to point out that other factional fighting, keeping their own little seats States in Australia do not have Government up the back warm, and thinking that they might guarantees for local authorities. So it is not have some future on the front bench. I have something that is needed desperately by local news for them. What I want to know is: where is governments. New South Wales is one of the the member for Thuringowa? He would stand up other States that does not have this Government and be counted, but where is he? He is too guarantee. I think that Western Australia also sensible to be here. does not have a Government guarantee for local government borrowings. According to the Legislative Assembly 8439 22 June 1994

Treasury source I am quoting, in Queensland Madam DEPUTY SPEAKER (Ms such an entity is also likely to obtain a AAA rating, Power): Order! The member for Gregory! even though Treasurer said previously that that Mrs McCAULEY: With this is not right. Because the Treasurer's track record unprecedented performance dividend, that has is not very good, I would rather take the Treasury gone out the window. I can only promise local source that I am quoting. That Treasury source government in this State, and give them the states further— strong assurance—— "It is the cost of funds of such an entity Mr Johnson interjected. that should be compared with the costs of funds of the QTC—and QTC would be Madam DEPUTY SPEAKER: Order! I significantly higher because of the loss of warn the member for Gregory under Standing asset backing, reduced economies of scale Order 123A. and lower liquidity resulting from the Mrs McCAULEY: A conservative departing local authorities and Government Government would never have a part of this tax. I enterprises. also wish to give local governments the strong Overall, the savings that the assurance that I believe that local government is Government claims are attributable to its an autonomous level of government in this State actions are considerably less because a and, when the conservatives return to power, large part of these savings are due to local they will return that autonomy that this governments in terms of the additional asset Government is taking away from local backing and potential revenue possibilities governments today. that underpin the Government's triple A Mr WELFORD (Everton) (9.37 p.m.): I am rating, and increased liquidity and depth of very pleased to be able to participate in the the market in QTC stocks due to the issue of debate on the Treasury Legislation Amendment substantial debt of local governments." Bill because, in my view, it is entirely justifiable. I Today, we saw an absolutely will explain to members and to the public of unprecedented march on Parliament. It was of Queensland why it is that the Treasury the order when the directors of nursing marched Legislation Amendment Bill, particularly in on Parliament on this same Government a few respect of the performance dividend, is an years ago. It is certainly a shameful thing when entirely justifiable measure for this Government members of one tier of government feel so badly to take. done by that they are forced into the action that Tonight, members of the Opposition have they took today—to march and protest to displayed their usual and characteristic Parliament. When they are joined by Labor heavy opportunism in matters of this type. All they have Bill Ludwig—— done is jump on the bandwagon. Not a single Mr Elliott interjected. argument put by members of the Opposition here today has for one moment dented the Madam DEPUTY SPEAKER (Ms determination that this Government has to see Power): Order! The member for Cunningham! this legislation passed. The reason is that Mr Bennett interjected. Opposition members have not put a decent Madam DEPUTY SPEAKER: Order! argument, not a single argument, to substantiate The member for Gladstone! their view that this measure is in any way improper or in any way unfair. Mrs McCAULEY: When they are joined by Labor heavy Bill Ludwig, then this Let it be clearly understood that the simple Government should surely be getting the clear facts are these: firstly, in relation to the guarantee message that it is on the wrong track. I would love that the Government accords to any of its to be at the ALP conference this weekend. I statutory authorities—and let us recall that local think that ALP members are going to have a ton government is only a corporation of statute in this of fun tearing each other apart. This Government State; local government is like any other is on the wrong track with local government. corporation created by statute of this Parliament Throughout Queensland, they have been and, in that respect, local government has the threatened by amalgamations. This Government choice to borrow from any source it wishes—it has set a political agenda for local government. It can borrow from the QTC or it can borrow from has taken away any semblance of autonomy that the private banking industry or, if it chooses, it local governments could have and felt that they can borrow with or without the support of the should have. Government guarantee that this State Government, through the QTC, accords to local Mr Johnson interjected. authorities. 22 June 1994 8440 Legislative Assembly

The second point to remember is that, to Mr WELFORD: I am not surprised; it would the extent to which they make the choice to not take much. borrow with the backing of the Government The Government allows an enormous range guarantee, which they secure only by reason of of opportunities for local government to raise the support of this Government, they will accrue revenue and to raise loans. Local governments a benefit. That is why so many local authorities, are allowed to carry debts which are 40 per cent including the 22 that have chosen to consolidate of their annual revenue. These are the quite any debt that they had into QTC loans since this liberal terms upon which this Government allows measure was announced in the Budget in local government to operate. Local government August last year, have chosen to do so. They is not bound to borrow from the QTC. It is not know that there is a distinct benefit for them, a bound to rely on the Government's guarantee. distinct financial advantage for local authorities, in But if it does and it derives a benefit from that, choosing to borrow through the Government then that benefit is entitled to be shared—not guaranteed QTC loan process. retained in full by local government—with the This legislation will enable the financial Government that provided the guarantee, the advantage derived from that benefit to be State Government, and this Parliament. This shared. Local government will gain 50 per cent of Parliament is charged with the responsibility of any benefit as a result of the QTC's Government delivering services throughout the State. guaranteed favoured borrowing position in terms I will address the issue of retrospectivity of interest rates and 50 per cent, by way of a because a lot of people, including Lord Mayor dividend, will be payable to the Government. Jim Soorley, have raised this issue. I like Jim Members of the Opposition are legendary in Soorley. I reckon Jim Soorley is a great Lord this place for wanting it both ways. On the one Mayor of Brisbane, and he is doing a great job for hand, they will stand up in this place—— Brisbane in a whole range of areas—everything Mr Santoro: Oh! from waste management, recycling, and environmental policy. He is doing a great job for Mr WELFORD: I heard the member for Brisbane. Jim Soorley is a fighting little Clayfield say, "Oh!" With tedious repetition, I leprechaun who stands up for Brisbane, and we have heard the member for Clayfield complaining respect him for that. that this Government does not provide certain services. But what does he do when this In respect of this amendment Bill, I am afraid Government does something that will guarantee to say that Lord Mayor Soorley has simply better service for the people of Queensland? He misfired. His council, along with dozens of other opposes it. councils in Queensland, will benefit from the role that the State Government plays through the A Government member: He whinges. QTC in providing access to finance for local Mr WELFORD: He whinges about it. The government. They will benefit substantially. As member for Clayfield is an habitual whinger; he is was evident from the Deloittes research cited by a political opportunist. He has no interest in the other members earlier tonight, even with the economic, technical or justice issues involved in performance dividend, the extent of the benefit this case. He will stand up here tonight—and which local governments will derive may be so members will hear him straight after my great that their borrowing period, that is, the speech—and he will deliver a prepared speech period over which they make their repayments, bucketing this Government for no better may be shorter than it is now. That depends on reason—— the extent to which the QTC can successfully Mr Livingstone: Written by somebody borrow and pass on the benefits of its borrowing else, as well. terms to local government in comparison with established benchmarks— benchmarks with Mr WELFORD: As the honourable which all local governments are in agreement. member points out, it will be written by somebody else, as are most of his speeches. He That is the simple fact of the matter. There is is the most prolific parrot in the Parliament. That is only a dividend when a benefit is derived. There only because he is not committed one iota to is no dividend by way of a general tax on local either case—for or against—in relation to this government. The proposition that this is a tax is legislative measure. He simply plays the part. But misleading, because a tax applies across-the- I will spare the member for Clayfield; he will do board on income and as a measure of value. But enough damage to himself without my local governments have a measure of control contributing. over the level of dividend that is incurred by the QTC, that is, through local governments Mr Santoro: I am mortally wounded. controlling their own debt levels. If local government reduces its debt, local government Legislative Assembly 8441 22 June 1994 will incur a lower dividend. The greater the period from 1 July onwards—in other words, the benefit that local government derives from the prospective benefits which local government QTC and Government guaranteed loan system, derives. then the greater the benefit that not only local Mr Santoro: It's still a tax. government but also the people of this State will derive through the dividend that the State will Mr WELFORD: The member for Clayfield collect. said that it is still a tax. I have already explained to the member for Clayfield why it does not fall into So this is a financial measure which is not at the category of a tax. I do not care whether the all unusual in established private sector financial member calls it a tax; he can call it whatever he circles. Elsewhere in the Bill, the Government likes. The public of Queensland do not lose out has provided for non-QTC loans by local on this by one cent. Whether the State government backed by Government guarantee Government derives the benefit or whether local to be charged a guarantee fee. That is an government derives the benefit, the taxpayers of unexceptional financial arrangement that is often Queensland will still receive the services that provided by guarantors. As the Treasurer has either level of Government will provide as a result pointed out, this Government provides backing of the savings made on those loans. This for local governments that has seen them accrue measure simply apportions that benefit between benefits of about $190m already as a result of State and local governments so that the the interest advantage that local governments Government that provides the service receives a achieve by borrowing through the QTC. portion of benefit—that is, local The issue of retrospectivity is important. If government—and the Government that provides this legislation were retrospective, this the guarantee that secures that benefit receives Government would be imposing a performance a portion of the revenue and then is able to use dividend on periods prior to when the that revenue to provide better services. performance dividend was first announced. In The member for Clayfield and other other words, we would be imposing a Opposition members are commonly screaming in performance dividend on periods prior to 1 July this place for more services. The only way to last year. If this performance dividend purported provide better services and more services is to to operate in respect of debt being paid off for have the revenue to do it. This is a measure that the years prior to 1 July last year, it would be apportions between local government and State retrospective. The proposition that this tax is Government a fair and proper apportionment of retrospective is misleading, because it does not the benefits derived from the QTC borrowing apply to benefits which have accrued prior to system, which enables this Government to when the performance dividend was announced provide services and which also enables local to come into effect. government to provide services. The proposition that it should not take effect The march on Parliament today was unique from 1 July last year but should only take effect in only one sense: had the rabble on the other from the time of this legislation flies in the face of side been in office, they would not have consistent statutory practice in every Parliament permitted it. Had the rabble on the other side across Australia with respect to measures of this been in office, they would have sooled their kind, or indeed general measures with respect to political police force onto them in the way that taxation. As a matter of practice, Governments they did for decades prior to our election in now announce a measure whereby the 1989. Government will raise revenue and then legislate to give effect to that announcement from the Opposition members: Rubbish! date of the announcement or from a date when Mr WELFORD: For members opposite to the announcement indicates the measure is to deny it just confirms the hypocrisy with which come into effect. So the issue is not whether they approach issues in this House. they were Clem Jones', Jim Soorley's or anyone The other measures in this Bill are entirely else's borrowings. The question is: against what consistent with the matters relating to the benefit does the performance dividend apply? performance dividend that is provided for in the It does not apply to the $190m benefit that Bill. As I have already indicated, under new the local governments already accrue. It does not clause 16A of the Statutory Bodies Financial apply to the years and years of benefit that local Arrangements Act 1982, the Treasurer will be government already derived as a result of loans able to impose a charge for the guarantee that that were consolidated into the QTC and Government provides for non-QTC borrowing. borrowed at the lower rate backed by Similarly, the Government owned corporations Government guarantees. It is a performance legislation will be amended to ensure that the dividend that applies only in respect of the Government's policies with respect to 22 June 1994 8442 Legislative Assembly commercialising the operations of Government cronies opposite are merely jumping on the owned enterprises is carried through. In a very bandwagon without any genuine commitment to real respect, the performance dividend that is local government, to fiscal responsibility, to being applied tonight is entirely consistent with taxation responsibility or to State Government that philosophy—a philosophy that this service. In the luxury of Opposition, they can Government has embarked upon to ensure that stand for nothing and represent no-one, Government owned enterprises operate on a because they do not have any responsibility for footing that has a commercial parallel to that the outcomes of their decisions. That has been which would apply if they were operating in the amply demonstrated not only by previous private sector. speakers but it will also be demonstrated by the As I have indicated, in the private sector, speaker who follows me and whom we will now charges or fees for providing guarantees are an have to put up with. unexceptional practice. We are applying it in the Mr SANTORO (Clayfield—Deputy Leader public sector to ensure that the QTC and a range of the Liberal Party) (9.57 p.m.): I am very happy of other statutory bodies operate within the same in this debate and beyond the walls of this commercial environment as private sector Chamber to be associated with the likes of Bill entities. The Opposition, which would otherwise Ludwig in relation to this issue, whom nobody on support the process of privatisation, is denying the Government side of the Chamber has said is us the entirely proper approach of imposing on wrong. statutory authorities and State corporations a Mr Welford: He's dead wrong. measure that simply brings them into the real world when it comes to borrowing. Those bodies Mr SANTORO: I take the interjection. I will still derive the full benefit of the reckon that, by the time I have finished this Government's capacity through its Government- contribution, we will know precisely who is in backed guarantee for the QTC to borrow at which faction and how they are all going to line substantially reduced rates. As I have already up this Saturday at the ALP conference. I am indicated, those bodies will not only receive that very happy to publicly associate myself with Bill benefit but also, to the extent that that benefit Ludwig, the secretary of the AWU, and with the accrues to them, it will continue to reduce the vast majority of mayors of local authorities term—that is, the period—over which they repay throughout Queensland who have taken the their loans. It will be interesting to see the unprecedented step of coming before the outcome of this performance dividend at the end Parliament and asking the Treasurer to address of the day. them to explain why this insanity is being inflicted upon them. I am very happy to associate myself Mr Santoro: Higher rates; fewer services. with the utterances of the Labor Lord Mayor of Mr WELFORD: That is an absolute Brisbane. If Government members reckon that nonsense. The member for Clayfield knows that that is insanity and that we are all wrong, they are it is nonsense that higher rates will be incurred. also saying that a lot of people in this State are As he well knows, the term of a loan can be wrong. extended without incurring one iota of impact on Tonight, I wish to talk about the topic that the budgetary cash flow of any local authority this the honourable member for Everton does not year, next year or the year after. It will not want me to talk about. So far in the debate on this necessarily result in more money being paid legislation—which is being foisted upon because, as Deloittes pointed out in its report, Queenslanders by this Government of darkness, the effect may well be that the benefit that will be by this party of deceit on taxation inside and secured by the QTC will result in a shorter outside of this place—the emphasis has been borrowing period at the same repayment rates at the impact of the performance dividend. which they will presently be maintained. Whether Government members like it or not, that It is premature to say that this measure will dividend can be described only as a tax on have any impact on councils, but it will fairly ratepayers, for ratepayers are among the big apportion the advantages and disadvantages of losers. I want to illustrate to the House that this the QTC's borrowing practice between State tax, even as it applies to local authorities, is far Government and local government and between more than a tax on ratepayers. This tax will be far- State Government and other statutory reaching and will be felt by the people of authorities. I support this measure. I recognise Brisbane over and over again. This outcome will the concern that local government officials and be the joint work of those two bitter enemies mayors have about the measure, but the simple within the Queensland Labor Party—the Labor fact of the matter is that it is justifiable. It may well Treasurer of the State of Queensland and the not have any appreciable impact on local Labor Lord Mayor of the City of Brisbane. government. The member for Clayfield and his Legislative Assembly 8443 22 June 1994

I will quote from a damning secret report Brisbane City Council, this tax in our capital city is prepared by Treasury—obviously on the orders a tax on every single person in Brisbane who of the Treasurer—on the finances of the gets on a bus; who gets on a train; who catches a Brisbane City Council. I emphasise that this ferry across the river; or who turns on a tap. And it investigation was carried out behind the Lord goes on, and on. Everybody in Brisbane will be Mayor's back. The Labor Treasurer did not even affected. have the courtesy of telling the Labor Lord Mayor According to this secret report, the number of Brisbane that he was sending Treasury in to of people caught up in the performance tax net do him over. will increase dramatically. The report says that Mrs Sheldon: That's outrageous. other areas the Brisbane City Council is moving Mr SANTORO: It is outrageous. As I said, into, generally beyond the concerns of local the Labor Treasurer did not even have the government, include the provision of light rail courtesy of telling the Labor Lord Mayor of transport and inner-suburban renewal projects. If Brisbane that he was going to do him over. one is a big spending Labor politician, such as the Labor Treasurer or the Labor Lord Mayor of This report provides to the Opposition both Brisbane, where does one get the money to some empathy for the context of the opposition cater for all these responsibilities? One borrows to this Labor Government move from the Labor it. The proof is in the report. The Brisbane City Mayor and it also puts him right into the firing line Council, according to this report, which was of this tax in a manner that makes his attacks on carried out in secret under the orders of the the Government hypocritical in the extreme. The Labor Treasurer, behind the back of the Labor report first states the obvious: that the Brisbane Mayor, is awash with debt. Since that particular City Council is the largest local authority in the report was provided to the Treasurer, things country, but that is important to establish and to have got worse. The report establishes that the state because it makes the council an obvious Brisbane City Council, unless it changes its target—a very juicy target—for the Treasurer in spots, will have to expand debt further, because relation to this tax: the bigger they are, the more it states— they pay. So, bearing that fact in mind, the report goes on to state that the BCC— "The council is using previous years' accumulated surpluses to fund this year's ". . . performs all the usual local authority budget (some $58.5 million) which functions and community services, effectively exhausts surpluses in the however"— council's operating fund and restricts the and this is very significant in relation to this so- BCC's ability in future to respond to called dividend and who cops it— unforeseen contingencies that may arise." "the council has assumed a number of other So, an incompetent and spendthrift Labor Mayor responsibilities that in other States are the of the City of Brisbane will have to go on responsibilities of State Government. expanding debt to provide more shekels for the These include water supply and bus spendthrift and incompetent Treasurer. What a and ferry transport." duopoly. What a recipe for the spendthrift Labor Lord Mayor to pass on the taxes of the Obviously, there is no water supply function, spendthrift Treasurer to the people of Brisbane - there is no bus system function and there is no over and over again. I point out to the ferry network, without borrowings. In the State of honourable member for Everton that the most Queensland, uniquely in this country, the important point to be made is that the debt will be responsibility for providing that infrastructure constantly refinanced and the performance rests not with the State Government—as is the dividend will be charged over and over again. If case in every other jurisdiction within the the honourable member cannot get the validity Commonwealth—but with the Brisbane City of that point, he is not worth taking an interjection Council. from. Not only in their rates, but in their bus fares, So, some obvious points logically follow their train fares, their ferry fares, their property from that. It is not just ratepayers who are going transactions; just name it, they will be slugged. to carry the burden of this stealth tax from, as the The proof of that vicious circle is right here. I table Leader of the Opposition describes him, the the secret, sneaky report which I have had about baldric of Treasurers, being imposed now by four months' difficulty in getting due to FOI retrospective legislation against the wishes of because the Treasurer would not table it. The even Bill Ludwig. The role of the Brisbane City secret, sneaky report by the Labor Treasurer into Council reveals that ratepayers are only one the financial mismanagement of the Labor Mayor category of person in this great city who are of the capital goes on— going to get hit by Mr De Lacy and Mr Soorley. Because of the unique responsibilities of the 22 June 1994 8444 Legislative Assembly

"Increases in recent BCC expenditure Treasury Corporation of course relates back to have been funded in part by large increases that general push by the Government, through in borrowings. tactics that would make the Mafia blush, to force New money borrowings have doubled local authorities under the QTC banner. The in the past two years from their nominal more debt the corporation manages, the bigger levels of the mid to late 1980's . . . Mr De Lacy's black-hearted tax on borrowings. These large increases in debt may The size of the carrot in relation to the BCC place increasing pressure on the council's has grown even further since then. The 1992-93 debt servicing capacity. annual report of the Queensland Treasury Corporation's capital markets operations shows Total indebtedness as a percentage of that the market value of the BCC's debt receipts is substantially above the average outstanding as at June 1993 in the long-term of other local authorities and is far above that debt pool was in excess of $1 billion, at for the state debt serviced by the $1,011,500,000, and since then we have seen consolidated fund." borrowings of $60m in 1993-94, and $58m for So, there is the vicious cycle of this tax. the current council Budget. That is the level of Mr Welford: What is it? city council indebtedness, and it is growing. That is why it is so attractive to the Treasurer and to Mr SANTORO: I take that interjection. I will the Labor Party Government. This massive level be outlining to the House precisely what that of debt raises some very interesting questions in level of debt is and precisely what the level of relation to the future impact of this tax in increase has been. In the light of this document, Brisbane, and its impact on the future of the city. there is no mystery as to why the Treasurer wants to impose this particular dividend performance The Treasurer's secret report on the tax in Brisbane. We see a Brisbane City Council council's finances observed, for example, that burdened by responsibilities not shared by other one of the council's only possible courses of local authorities, which is, in a very real sense, a action, in relation to this debt, was to reduce performance dividend for the State Government. spending on capital works. That is precisely what It provides it with a massive cop-out; in other we saw happen in the current council Budget. words, massive savings to the State Spending on infrastructure in the current council Government. The State Government does not Budget is down $48m, and that relates back, of have to run the buses. It does not have to worry course, to the need of the council to back off, about the cost of sewering Brisbane. That is the somewhat belatedly, from its high levels of job of the council and, because it is a Labor borrowings. That is what is going to happen as a council, as the report shows, its debt is going result of tax impositions on local government through the roof with new borrowings. Just like authorities such as this: they are going to back big brother up George Street, it will go on off vital expenditure, and this city runs the risk of spending. descending into a slum status because of these types of policies. We have a cycle of greed within the Labor Party creating a cycle of tax for the Brisbane Now we have a new tax—and it is a new ratepayer, the Brisbane bus traveller, the tax—that will add substantially to the cost of Brisbane rail passenger, the Brisbane tap turner, existing borrowings. Obviously, that is going to through this so-called performance dividend. have the effect of further reducing the money Interestingly, this secret hatchet job on Labor's available to council for basic infrastructure works. Brisbane Lord Mayor by Labor's Treasurer What a combination the big spending, hungry provides another indication of why the Treasurer Treasurer, and the big spending, hungry mayor is moving tonight on his third try to tax local make, and what a vicious cycle they create. government borrowings. The report shows that, Sooner or later, the borrowings will have to go from 1989—and the honourable member for back up again to deal with the backlog of Everton had better listen—when total neglected infrastructure. That is where the real indebtedness was $721.3m, and in 1990, when tragedy for this local authority, the Brisbane City total indebtedness had grown to $777.1m, and Council local government authority, lies, and that in 1991, when total indebtedness was nudging is where the similar tragedy lies for local $1 billion, at $934.6m, the BCC's debt was government authorities right across the State. consolidated into the Queensland Treasury That is why all of those mayors marched on Corporation's long-term debt pool. Obviously, Parliament House and that is why they told the that made a performance dividend on the Treasurer what he did not want to hear. The Brisbane City Council a very attractive Treasurer will be waiting, like a vulture, with his proposition for the Treasurer. And the situation borrowing tax. Round and round it goes, with the of the BCC in relation to the Queensland ratepayers, bus travellers, rail passengers, ferry Legislative Assembly 8445 22 June 1994 users, tap turners and all those other poor probably remembers what Bill Ludwig said about people caught in the middle. those members of Parliament who were not There is another very interesting aspect of going to vote for Bob Hawke and were going to the report that I just tabled. I urge honourable vote for Paul Keating. They were threatened with members to get a copy of it, because it makes kneecapping and practically murder. very interesting reading. It relates to the If that sounds like a sneaky scenario— Treasurer's new tax. I ask honourable members unlike the Treasurer—I simply invite honourable to ponder on this point. That secret, sneaky members to compare the Treasurer's recent report was prepared for the Treasurer in vitriol in relation to his dealings with the mayor September 1992. One of the members to follow with his answer to a question from me in this me in this debate will undoubtedly say that the House on 17 November 1993, when he was report is out of date. I shall come back to how out asked whether he was concerned about the of date it is. state of Brisbane City Council finances in relation That report revealed some very disturbing to the secret investigation of the council—this issues about the governance of the City of very investigation that I tabled. The Treasurer Brisbane. Particularly, it rang warning bells about told me that he was not worried. He said of this the level of borrowings by the council, notably in report— 1990 and again in 1991. The Treasurer now rails "Essentially, it said that the financial against this sort of thing. I ask the Treasurer: why situation was under control and that the did he not stop it? Why did the Labor Treasurer debt management strategy that it had in not use his authority to rein in the Labor mayor? place was reasonable." Not only does he have that right, but I suggest I would like to juxtapose that answer with that he also has that responsibility. After all, he some of the comments from the report itself, has been threatening people such as Jim which the Treasurer had available. For example, Soorley with all sorts of things unless Jim Soorley the report says that the council had effectively pulls his head in. exhausted its surpluses, which restricted its When that information became available to ability in the future to respond to unforeseen him in September 1992, did the Treasurer send contingencies that may arise. It says that Treasury people to the Labor Lord Mayor? Did he increases in recent Brisbane City Council send in Treasury people to the Finance expenditures have been funded in part by large Department of the Brisbane City Council to give increases in borrowings—up 100 per cent on the them advice or some assistance to get them out levels of the 1980s. It says that these large of this ever-widening and ever-spiralling debt? increases in debt may place increasing pressure No, he did not. He was very happy to sit on his on the council's debt servicing capacity. It says hands and let that Labor Lord Mayor, who does that total indebtedness as a percentage of not quite agree with everything that the receipts was running at substantially above the Treasurer and this Goss Labor Government do, average of all other local authorities. It says that get deeper and deeper into the mire so that he interest payments as a percentage of own can box him around the ears and threaten him source receipts were above the average of all like a thug, as he has been doing. other local authorities and well above that for The Treasurer was happy to see the Lord Queensland's debt serviced by the Mayor of Brisbane come in spinner. The more Consolidated Fund. It says that the council's the mayor borrows, the more the Treasurer gets budget strategy was subject to significant in his borrowing tax. So why would he stop him? assumptions about matters beyond its control. It Let him run the rope out! The Treasurer will reel it says that a full-scale review of the council's in when it suits him—which will be around the finances by a respected ratings agency could be end of each financial year—when he reaps the a requirement. dividend. It is not a dividend, it is a tax. Bill Ludwig By the way that the Treasurer has been says that, the Local Government Association say threatening the Lord Mayor of Brisbane and the that, and all the mayors say that. Brisbane City Council with revealing the current Mr Welford: He made a mistake. financial status of the Brisbane City Council, I would bet my bottom dollar that the position of Mr SANTORO: The honourable member the Brisbane City Council today is much worse for Everton says that Bill Ludwig made a mistake. than it was in September 1992. Before anybody Is he wrong, or did he just make a mistake? buckets the currency of the information that I Mr Welford: He made a mistake. have just given them, I challenge them and the Mr SANTORO: As that convention looms, Treasurer to table in this Parliament any follow-up the honourable member is beginning to retract investigation and report. I challenge them to and ameliorate the severity of his comments. He 22 June 1994 8446 Legislative Assembly table in this Parliament an actuarial statement of It is really very simple. It is all about sharing the Brisbane City Council's financial status. the benefits of the Queensland Treasury Mr Welford: What's that got to do with the Corporation's good performance or— a term that Bill? It's got nothing to do with the Bill. I have heard used frequently—its outperformance; the fact that it is outperforming Mr SANTORO: The honourable member everything else that is comparable to it in the for Everton knows precisely what it has to do with markets. We need to recognise the work of the Bill. I will not broach any criticism of this people such as Sir Leo Hielscher over many particular reference that I have made. But I will tell years as the Chairman of the Queensland honourable members of the contents of that Treasury Corporation, and its chief executive report and other reports which the Treasurer will officer, Stephen Rochester. not table for the people of Brisbane: burgeoning debts; reserves exhausted; massive debt This State and the Queensland Treasury servicing problems imminent; and a need to Corporation have a AAA rating or—as some slash infrastructure to keep the budget other people have described it—a AAA rating manageable. And the Treasurer told the House with a gold star. That is the reality. It is all about a that he was not worried! Clearly, he should have proper sharing of the benefits that that been worried. organisation has achieved—benefits that have been greatly improving over the period that this I can see why the Labor Lord Mayor of Government has been in power in this State. It is Brisbane, in the lead-up to the Brisbane City a change. I do not think that anybody on this side Council election, did everything that he could to of the Chamber is running away from that. It is a frustrate my freedom of information request for change away from where the councils currently the Treasury study I have tabled here tonight. get all the benefits of that good performance or This freedom of information request went right that outperformance by the Queensland up to the Commissioner for Freedom of Treasury Corporation. It is one where this Information, and I only got that report at the death Government takes the risk, the Queensland knell today after I appealed that it was in the Treasury Corporation does the work, and the public interest that that report be made available. Government as such—the owner of the It clearly shows what a fraud this Treasurer and Queensland Treasury Corporation—gets no the Labor Lord Mayor are in relation to the best share of the benefits that are being achieved. interests of the people of Brisbane. As a result of their negligence, and as Bill Ludwig and others We must put it right back into the context have said today, the Government—including the that it is not a grab. It is not a new tax, as indicated honourable member for Everton—will pay very by the member who preceded me, the member heavily at the ballot box. for Clayfield, who one of my colleagues very kindly pointed out slunk out of the Chamber the Mr BARTON (Waterford) (10.17 p.m.): I minute that his speech was concluded. It is not a rise to support the Bill. I would like to comment new tax. It is not a grab. It is tied to the on the performance dividend, which has been performance of the Queensland Treasury the main point of discussion tonight. It seems to Corporation. If the Queensland Treasury be the only area in this legislation which is Corporation does not continue to perform in the causing any angst at all for the Opposition. I excellent manner that it has in recent years, no wonder sometimes about that. I wonder about dividend will be payable. the hypocrisy that the Opposition is showing in suddenly wanting to be best friends with Bill Local authorities in this State cannot get a Ludwig and Labor mayors of Brisbane and other better deal anywhere. They would recognise cities. What horrible political opportunists they that. I know that they have some concerns about are when they stoop to putting forward those the legislation. They would like to maintain the sorts of views instead of putting some real position in which they get all the benefits. substance into their arguments. However, they recognise that no better deal is available to them for raising finance in this State. In the short time available to me, it is my Many of my colleagues who spoke earlier intention to recognise those concerns pointed out that the local authorities are voting expressed by people who have indicated with their feet to sign up to be financed through opposition to this legislation. I do not refer to the the Queensland Treasury Corporation. concerns of members on the other side of the Chamber. I refer to the concerns of people who Even after allowing for the fact that local have made some comments outside this authorities must pay that performance dividend, Chamber. I think we need to put some balance it is a big saving on the cost of buying their back into this debate. We need to recognise just finance elsewhere. I will not bore honourable what the facts are as to why this particular members with the figures because I am sure that provision is in this legislation before us tonight. in his reply the Treasurer will remind them of Legislative Assembly 8447 22 June 1994 those figures. Even after the local authorities pay will go to the streets." Today, the members of the that performance dividend, they will still gain a Local Government Association were on the huge benefit over and above the benefit that streets. I agree that it was a dignified, orderly they could gain by obtaining their finance protest outside the fences of the Parliament by through other bodies. those mayors, councillors and their supporters. Using the Queensland Treasury Today, people whom I consider to be friends Corporation, the terms of the existing loans of protested. local authorities are greatly reduced. Again, I I know that the member for Everton make the point that we heard the rantings of the mentioned the Joh era, but I want to reinforce it. member for Clayfield that the effect of the If that protest had been held in the Joh performance dividend is to push out those loan Bjelke-Petersen area, 500 policemen would terms. The fact that the local authorities must pay have been ordered to go out there with a fleet of the performance dividend does push the loan police vans and they would have taken away a terms out slightly, but the loan terms are far significant number of the people who were shorter than those that the local authorities have protesting. been utilising or that are still available to them if Mr FitzGerald: He never had the mayors they choose not to use the Queensland opposed to him. He never had local authorities Treasury Corporation. opposed to him. I put to members of this House that it is Mr BARTON: Opposition members can perfectly understandable that the mayors of pretend all they like that that is not what those local authorities and other people would happened in the era when they were in want to maintain the benefit that they have had Government. However, some honourable for a period. Logically, people want to maintain a members were on the other side of that fence benefit that they have had in totality. However, being beaten up by the policemen who were the legislation is aimed at the distribution of the ordered to go there against their wishes to do borrowing capacity of the Queensland Treasury that job. That is the big difference between this Corporation, its very good rating and the benefits Government and the Government when from that. Local authorities seek additional Opposition members were in power. Now people revenue for themselves by not having to pay that have the right to hold orderly demonstrations. performance dividend. They have the right to protest on the streets. Surely, the Government also is entitled to If that is the nature of protest on the streets, seek a fair share of that performance gain due to we must put it into context. I want to put on its agency—the Queensland Treasury record my concern about the rhetoric being a Corporation. The Government should be able to little bit over the top. The opportunists in the expect some of that benefit to come back to the Opposition have picked up that rhetoric and said, Treasury's coffers to assist in providing the "Here is a situation in which even your own mates additional services that we need on behalf of are demonstrating against you." It is a bit different Queenslanders, that is, the services that we from the sorts of demonstrations that some of us need in the growth areas and the services that, had to do when Opposition members were as a result of this year's Budget, are being sitting on the Treasury benches. provided to the rural communities. We want to put even better services into all of those The Local Government Association also people's hands and we can do that only if the used the term "loss of confidence in our system revenue base to the Government is increased. of Government". I want to put that into context. Sharing the benefits of the Queensland The debate is on diversion of opinion over a Treasury Corporation provides a modest commercial decision that the Government feels increase in the revenue base. That is what the that it must make. The debate is on a difference performance benefit is all about. of opinion. In relation to loss of confidence in our system of Government—again, let us go back I have some concerns about some of the only a very few years. What happened in that rhetoric that we have heard recently and that has period? We had corrupt Ministers, a corrupt been included in correspondence that has come Police Commissioner who is still in gaol, and it to members of Parliament. I have very serious was understood that bribes were the way to do concerns about the contents of the letter of 17 business in Queensland. June from the Local Government Association. Nonetheless, we must see that in the proper When we negotiated with large companies, context. Earlier, the member for Everton spoke they told us that they could not afford the about much of that. increases that we were seeking in some areas because, after they paid the Queensland One comment by the Local Government component, which was the bribe for the Association was a little over the top, that is, "We 22 June 1994 8448 Legislative Assembly

Bjelke-Petersen Foundation, they did not have Labor Party are like a strong family. We can the funds available. disagree, but we will always work it out between Mr FitzGerald: Name them. ourselves. LIke siblings, when somebody else is on the attack, all the others know whom to stand Mr BARTON: The honourable member shoulder to shoulder with. who interjected knows that that was the way in which business was done in Queensland. To put Certainly, this legislation is fair legislation. It the comment about "loss of confidence in our draws on the strengths of the Queensland system of Government" into context, it is loss of Treasury Corporation. It provides for a fair sharing confidence because we are enacting legislation of the benefits between the councils that draw based on a fair commercial decision by the on funding from the QTC and this Government. Government compared with corrupt Ministers, Most importantly, it will provide better services to corrupt police and bribes. It is a very big all of our constituents. I support the legislation. difference. We must be careful about the precise Hon. N. J. TURNER (Nicklin) meaning of the rhetoric that is being used. (10.31 p.m.): I wish to speak against the Tonight, the member for Callide got one proposed amendments contained in this thing right—and only one—and that was her Treasury Legislation Amendment Bill and, in comment about Joh being the arch villain. particular, against that amendment that imposes Although she probably did not say it in that a performance dividend on Queensland context, she referred to the "arch villain, Joh". Treasury Corporation loans offered to Regrettably, he was all of those things. We must Queensland's local governments. be careful about the way in which everybody Before doing so, I would like to take the assesses the language that has been used opportunity to congratulate Ted Malone, the because some of it appears to be going right member for Mirani, on delivering his maiden over the top. I am sure that, in terms of having an speech here this evening. It was fantastic to see honest disagreement, having to agree to his family in Brisbane. I congratulate him and wish disagree, those people do not mean it in the him a long term in State Parliament. Although this context in which members of the Opposition may not be an appropriate time, I would also take have picked it up tonight and attempted to use it this opportunity to wish my former colleague Jim against the Government. I urge the people from Randell, the former member for Mirani, and a the Labor movement who have concerns and friend of mine, all the best health and happiness who were outside Parliament House today to be during his retirement. a little cautious about the way in which they use This legislation would have to be one of the their rhetoric in future for fear of it being greatest con tricks that this Labor Government misrepresented by the political opportunists in has ever perpetrated on local authorities and on the Opposition. the people of Queensland. I am talking about the The legislation details a very fair proposal so-called performance dividend—the fee, and very fair mechanisms of putting it into place. I dividend, charge, whatever one calls it. Basically, will not try to explain it all over again because that it is a tax that it going to be imposed over and was done earlier tonight by a number of my above the interest rate charged on QTC loans. colleagues. It is a simple system and a fair The QTC will be responsible for calculating system. It is not much different from the position and collecting the QTC performance dividend, of people renegotiating the finance on their own then passing that revenue on to the State on an homes to enable themselves to get a better deal annual basis. Overnight, this borrowings tax will but having to make a payment in order to lock have a catastrophic effect on many small themselves into the better deal. That is now councils' debts. quite common with the banks. It cannot be explained by a quick grab of rhetoric. It does Government members make a great song need a little bit of explanation. It is easily and dance over their claims that Queensland is misunderstood or deliberately misrepresented, the low-tax State. After their song and dance act, as has been done by members opposite tonight they come out for the encore—a dazzling display for their own shallow, political purposes. of secret tax tricks. This performance dividend is just another way of revenue raising, another way Before I conclude, I refer to another point for the State Government to sweep money that many Opposition members have tried to under its increasingly bulging carpet, while make tonight. If they are waiting for ALP maintaining the fiction that it is a low-tax members to have a bloodbath on the floor of the administration. The Treasurer, Mr De Lacy, is the ALP conference over this issue, then they had original snake oil salesman. This is the same better not hold their breath because they will be Treasurer who referred to local government waiting for a very long time. Certainly, we have leaders as "Bollinger Bolsheviks" who tax the agreed to disagree. However, members of the working class. He threatened to audit the Legislative Assembly 8449 22 June 1994 spending and debt levels of those councils that season on local councils. As has been said by protested against his amendments in this previous speakers, and even Bill Ludwig said it legislation. What has happened to the principle on TV tonight, this is a bad tax and it should be of free speech? Have we reached the stage at scrapped. which people are going to be threatened by ALP The State Government is merely using local members of Parliament if they speak out against authorities as bagmen. They are making local their ill-conceived actions and ideas. I thought authorities the revenue collectors. It is nothing that the ALP stood for civil liberties and freedom more than taxation via a secret conduit. It is going of speech. It appears to be only if it is in line with to cost the councils at least $8m per annum and Cabinet thinking. boost the Government's coffers by more than This legislation would never have happened $40m overall. under a National Party Government. I was How much taxpayers' money has been interested to hear, in this debate, a Government spent in advertising by the ALP Government to member speak about all the ills of the Bjelke- try to prop up this ill-conceived, irresponsible Petersen Government—the corrupt Ministers action? If the National Party, when it was in and how everyone was persecuted and held Government, had done that, Labor members down. I find that incredible. I say to honourable would be crying like babies and criticising it for members that one funny thing about those times wasting taxpayers' funds. In the media reports of is that if members had nothing better to do at this the last few days, the Treasurer has been skiting time of night, they could walk safely up the street about this Government's AAA rating. Who window-shopping with their wives. However, we earned it? The Nationals when they were in cannot do it today. I wonder why. charge of the State's finances! Members of the What is most abhorrent about this Labor camp were only lucky enough to inherit it amendment is the retrospectivity that is attached when they took over, and they are doing their to it. It ignores a basic parliamentary convention best to dissipate it as quickly as possible, as their that assumes that Government does not legislate friends in Victoria and South Australia have retrospectively for tax issues. Queensland's done. Last week, Mr Burns told this House that mayors are frightened that they are going to be the Nationals' party room song should be, "I do presented with bills for the borrowings of their like to be beside the seaside." I have been predecessors. So Lord Mayor Soorley and his informed that the favourite song of the Clayton's council will be hit for the performance dividends cowboy from Lytton and his colleagues in incurred by Clem Jones' borrowings of 20 years Cabinet is Nancy Sinatra's "These boots are ago, and other mayors will pay for debts that were made for walking, and one of these days I'm incurred before they were even elected. going to walk all over you." Now, Labor's boots Mr Bredhauer: What rubbish! are walking over everyone in this State. During the last sitting of Parliament, the small traders Mr TURNER: The honourable member were stomped on, as legislation extending says "rubbish". He should have listened to Lord trading house was forced through Parliament. Mayor Soorley's speech that was delivered on This time, almost the entire State has been given the radio this morning. The Lord Mayor explained the proverbial boot. Every ratepayer in quite clearly that the borrowings have been Queensland will have to pay. People are starting lumped in together. The Government has to say, "Enough is enough of this inept, enticed these councils to put all their loans in inefficient, incompetent Goss Government." together. That does mean that councils will be charged retrospectively for moneys that were Usually, Labor members try to convince us borrowed years ago. That is a fact of life. that they have the support of the sector of the community that will be affected by their Mr Bredhauer interjected. amendments. This time, they have not even Mr TURNER: The honourable member bothered to waste our time. This afternoon, we who is interjecting is well aware of that fact. I witnessed an unprecedented demonstration at believe that he will have extreme difficulty the front of Parliament House. Never before travelling around his electorate and telling his have local authorities seen fit to stage a constituents that they will be paying more in demonstration of that type. Mayors from council charges because of the actions of his throughout Queensland, dressed in full regalia, colleagues in this place. These councils and were expressing their complete disapproval of mayors are also afraid that this amending this Government's actions. They were standing legislation does not provide any limitations or up for the rights of the local ratepayers, which is restrictions on the amount of tax the Government more than can be said for the Labor members of can charge on councils' debts. This is, as Greg this House. Government members are showing a Hallam called it, an example of Robin Hood in total disregard for the effect that this amendment reverse. The Government has declared open will have on the average ratepayer. Local 22 June 1994 8450 Legislative Assembly councils now have to bear the brunt of this tax. how much the Treasurer spends on propaganda They will have to either increase rates or in newspapers; the ratepayers of Queensland abandon or curtail important projects and are not as stupid as he assumes. They know who services. It will cost every local authority money is behind this. The results at the next State and, ultimately, it will mean fewer services, longer election will bring forth the final grades. Some debts, fewer footpaths, fewer roads and higher people are legends in their own lifetimes; the rates. present State Treasurer, Mr De Lacy, is a legend The State Government is making the local in his own mind. authorities surrogate tax collectors. The reason Mr T. B. SULLIVAN (Chermside) (10.42 the mayors and councils are objecting is that they p.m.): I support this legislation, which was are concerned that ratepayers will hold them, not introduced by one of the most successful, if not the State Government, to blame. The State the most successful, Treasurer in Queensland's Government can collect more and more dollars, history. I believe that any benefits resulting from doing nothing more than twisting the arms of the the QTC's ability to borrow at cheaper than local authorities, while they protect themselves expected rates can and should be shared by from the understandably adverse public reaction. both the local authorities and the State The situation in Queensland is unique. Government, and because the State Unlike other States, councils in Queensland Government's financial strength allows the QTC have been largely responsible for providing to borrow using the AAA rating, a financial infrastructure, such as water and sewerage. benefit or performance dividend does accrue. Consequently, Queensland's councils have the This Bill shares the benefits between the two highest level of debt of councils in all States. At levels of Government. the end of last financial year, the QTC was As a result of borrowings through the QTC managing debt of more than $2.5 billion. That since 1989, more than $130m in savings have means that the State Government has been able accrued so far. There has been no sharing of this to hide more than $2 billion of debt from the benefit. It has all gone to the local authorities in State Budget. the last five years. This legislation is not The Queensland Treasury Corporation has retrospective; rather, it allows for a sharing of been operating for about five or six years. When benefit on current debt. Local governments who those councils first went to the QTC and have refinanced debt in recent years will be negotiated their loans, they agreed to certain paying the performance dividend on their current terms and conditions. At the time of borrowing, debt. Of course, if the QTC does not perform local councils were assured that all benefits of better than average in a competitive financial borrowing would be passed on to them. Now market and there is no benefit, there is no the Government decides that its coffers need a sharing of this benefit. If there is a worse than boost. The quickest way to get it is by imposing average performance, the State Government retrospective taxation legislation. This is like the must carry all of the burden of that performance. local bank manager coming into one's house, It was interesting to see the protest outside tearing up one's loan agreement and imposing Parliament today. It was good to see the mayors new and completely unfair conditions—in other and councillors able to express their views. Apart words, a breach of contract. Talk about losing the from the posturing by the councillor from State of Origin! This Treasurer is moving the McDowall—he tried to push material through the goalposts all over the arena. It sure makes it hard gates into the parliamentary grounds, which was to kick a goal. not accepted by the security people—it was an This is just another imposition on local orderly and well-attended demonstration. It government. Firstly, we had the boundary strikes me as very strange that the person changes. Then we saw the forced amalgamation posturing on the news tonight comes from the of shires. Now we have the imposition of this tame-cat Liberal Party that for years licked the stealth tax. It is nothing more than a faintly boots of the Nationals and was dragged along by disguised revenue grab. This is the third time its little whiskers. When Joh said, "There will be that this has been attempted. First, there was the no dissent. There will be no street marching," the proposed capital guarantee fee, which was Liberals, the so-called defenders of the rejected. Then it was renamed the credit individual, said, "That is correct." They said, "We enhancement levy, and that was also beaten. will send the boys in blue down George Street. Now it has again raised its ugly head under the We will use the police, not for community policing name of the performance dividend. but to knock any dissent on the head." At least we can give the Treasurer full marks I am proud to see that we can have a for trying. Unfortunately, he gets a big fat "fail" for demonstration in Queensland, whether it be by State financial management. It does not matter the mayors and local councillors, university Legislative Assembly 8451 22 June 1994 students, or a group of men or women who hold I know that this Treasurer and this any particular viewpoint. They can express their Government can, and will, stand by their viewpoint to us. I am proud to have been decisions, and we will take responsibility for associated with the petition lying on the table those decisions. The local authorities must do now. More than 20 000 people have signed a the same. One thing I did not hear from those petition requesting the State Government to who were gathering outside the gates today was take certain action. That is something that we anything about some of the other areas of must have in our parliamentary system. It is support given to local authorities. They are something that people on the other side of the saying that they will lose $8m this year. Even if House did not allow for years, and it is good that it that were the case—and I dispute that it is—why occurred here today. did they not say, "We are glad that the Rural Much has been made also about Bill Living Infrastructure Program has given $40m to Ludwig's comments. I respect Bill Ludwig, as I us"—something which the National Party, the so- respect many other union leaders in called party of the country people, did not Queensland. They hold a very responsible, provide. There was $50m in assistance through important and productive position in the the Regional Roads Program. This is aimed at Queensland economy and in Queensland keeping the day-labour gangs in the small society. But unlike the fracturing and dismantling country towns—to keep the workers there—and that would occur if the Nationals and the Liberals to keep the councils financed so that they can do had dissenting viewpoints, the ALP can the maintenance that is necessary in their area. have—and does have—vigorous and strong No, we did not hear anything about that from the debate on a number of issues. The point is that mayors and councillors, and we should have. the Australian Labor Party tolerates those There is $13m in the form of an interest differences, and because it has to—and subsidy on loans. There is $54m of assistance does—live with those differences all of the time, through capital works subsidies. None of that it is a much stronger and more widely was mentioned. But what was mentioned was a representative party. potential difference of $8m over the whole State I believe that the National Party and the in local authority budgets. In that context, I Liberal Party, coming from a narrower focus of believe the people of Queensland will say that, philosophy and having a narrower range of with all the benefits that the financial policies within their framework, do not reflect the management of this Treasurer has brought to the breadth of our community. I believe that is one local authorities, what we saw today was totally reason why the people of Queensland have blown out of all proportion. turned to the Australian Labor Party. Our policies Local authorities do not have to borrow have to be accepted by a broad range of people. through the QTC. If they choose to use their own Therefore, they are more acceptable to the resources to borrow money from other areas and broad range of Queensland society. choose not to use the AAA rating and the One thing that does disappoint me is the guarantee of this Government, let them go to tone of the debate from certain areas. I have those other sources and borrow as best they been disappointed and dismayed at some of the can. They know, of course, that they will be emotional tones and the exaggerated wording paying more in interest rates. They know, of that some people have used. If we course, that the best deal they can get is by disagree—and we will—let us have a vigorous using the financial acumen and results that this debate, but let it be on the issue, on the Treasurer has brought to them. substance of the debate, not on the personalities involved. I do acknowledge that we did come in on a system that Leo Hielscher and the previous There are a few points that I will make in Government had set in good stead. Of course, conclusion. I believe that the debate is fairly the other half of that equation is that there were straightforward, if one looks at it from a rational low levels of services throughout the State for viewpoint. One can simply accept that there are many years. The beauty about this Treasurer's two viewpoints at which to look. Local Budgets over the last five years is that not only governments do not like to give up part of a has he maintained that good financial control but benefit that they have gained. There will be, or he has also contributed significantly to services should be, no cash flow-on impact on council in the State. We have seen the salaries of budgets. Any council that says, "Here is an extra teachers, nurses and police, whose salaries were rise in rates because of this" is being dishonest. I among the lowest—or were the lowest—in would suggest that the people of Queensland Australia brought to national levels. should be very aware of that so that they can bring their own local authorities to account. We have seen what were disgracefully low levels of service raised to national levels. We 22 June 1994 8452 Legislative Assembly have managed to achieve both of those In the case of Toowoomba, there will be a outcomes, and this Treasurer is to be cost in today's money of $969,000 or, by the congratulated on that. Part of that sound financial year 2001, around $1.2m. What will the council management is the sharing of this dividend. The have to do? Obviously, it will have to provide Treasurer is responsible; the legislation is fair. I fewer services to that value or it will have to raise support the legislation. that much additional money in order to provide Mr HORAN (Toowoomba South) the services that it plans to provide in the (10.51 p.m.): I join this debate to add my medium to long term. The attributed amounts contribution to exposing this vicious stealth tax can be paid immediately. If any council decides to that has caused such an uproar throughout the pay them immediately, naturally it will have to find State. There is no doubt that this is a the money to do so. If the Toowoomba City retrospective tax. There is no doubt that it is an Council decided to pay the attributed amount on attack on local government. However, it is also an its current loan funds immediately, right now, or next week, it would have to find attack on many of Queensland's statutory bodies $969,000—almost $1m. and corporations. In my electorate, as well as the Toowoomba City Council having to suffer the Mrs Woodgate: Who's going to do that? burden of this additional tax—and it will suffer to Mr HORAN: Under this legislation, the tune of $1.2m—the University of Southern councils have that option. It is claimed that the Queensland, Grainco and the Toowoomba performance dividend will not hurt councils Grammar School are among some of the other because they do not have to pay it now, but they corporations and statutory bodies in Queensland will have to pay it in six or seven years' time. The to feel its effects. This tax will be imposed on Toowoomba City Council is trying to reduce its their borrowings, which were entered into some debt in the minimum amount of time so that it will years ago under certain acceptable be debt-free by the year 2001. However, under arrangements. With the stroke of the legislative this measure, the council will have to add two or pen, this Bill is changing all the deals and all the three months' additional payments at the end of agreements into which those bodies entered in that time. good faith many years ago. Mr Bredhauer interjected. This Bill is the result of the infamous Interim Mr HORAN: It might not seem much to the Budget Statement last year in which the honourable member, but the services that could Treasurer announced cuts to rail, education and be provided with $1.2m would be fantastic. I cite health services. We saw the effects of those cuts the example of the school that is about to be built in health with the downgrading of QE II, the in Toowoomba. As members are aware, councils review of the nurses' career structure and the have to provide all the kerbing and channelling cuts to hotel services in hospitals. Now we will and parking at schools. In the case of that new see the effects of the Interim Budget Statement school, it will cost the Toowoomba City Council on local government. This is the third or fourth $260,000 to provide services that the State time that the Treasurer has endeavoured to Government should provide—on-site parking for introduce such a tax. We have already seen the vehicles so that kids can be dropped off at and failed capital guarantee levy and the credit picked up from school. An amount of $1.2m enhancement fee. Now we have moved to would pay for four schools to be equipped with version No. 3 or plan C—the performance those facilities. That illustrates how fewer dividend. services will be delivered because of this new This is a tax on local government. The tool tax. for this tax will be what is referred to as the It is stupid to claim that the performance attributed amounts. Those attributed amounts dividend is not retrospective, because it is will be added to the loans that local governments retrospective to 1 July last year. Councils will or statutory bodies have taken out. In effect, their have to find that money either now or at the end loan becomes larger. Those attributed amounts of their debt period. This tax is retrospective on will be the tools by which the performance loans that were taken out in good faith many dividends can be paid by the Queensland years ago. The Toowoomba City Council took Treasury Corporation to the State Government. It out its pooled loans in 1989. It entered into has been claimed that these moneys will not add those loans on the basis of the arrangements anything to the amounts paid by ratepayers. That and the rules that applied at that time. However, is akin to talking about Mandrake the Magician. the rules have now been changed. It is ridiculous There will be extra money, and that extra money to suggest that this tax will cost nothing. It will must be repaid—either now or at the end of the cost a substantial amount of money, and in the loan or by a reduction in services. case of the Toowoomba City Council it will cost at least $1.2m. Legislative Assembly 8453 22 June 1994

Another issue of great concern is that there the city. The council has addressed that need is no provision in this legislation outlining just thoroughly, and the city's water supplies are now how much the performance dividend will be and guaranteed for 20 years. The construction of that how the attributed amounts will be determined. It dam was a difficult and expensive project, is a matter of, "Trust us. It will be worked out. It will because the water has to be lifted 2 000 feet up be outlined in regulations at some later date." the range and has to be pumped many Today, much has been said by Government kilometres from well north of the city. In members about how wonderful it is that the comparison, most cities obtain their water by mayors had the civil liberty to hold a gravity as they are below the source of supply. demonstration. However, in the last week we The sewerage treatment facility in Toowoomba is have seen real bovver boots and cloth-hat also unusual in that the sewerage flows into what threats by the Treasurer to expose councils. I do can be described as only a very minor creek that not believe we have ever seen those tactics eventually becomes part of the Murray/Darling before in the history of this State—a Treasurer system. Again, that was an expensive project. wanting to take out printed advertisements and The council had the foresight to borrow the publish news releases in regional and provincial money for those projects, and it did a good job of papers to expose those councils that dare to providing those services. It entered into an stand up and criticise this new tax. agreement in which the rules were strictly set down, but now the rules are to be changed. We have also seen a gradual creeping in of all sorts of new and innovative fees under the In 1989, the council entered into that guise of "dividends". This is the performance funding contract. When four or five years after dividend. Three or four years ago, we saw the the contract has been signed it changes the productivity dividend. In the Health Department, rules and introduces a new tax, one certainly $4.5m a year—probably enough money to would not want to be doing a handshake deal substantially reduce the cardiac waiting list—is with this Government. All of this will be done to a creamed off the top by Treasury in the form of a council which has been acting responsibly. It has productivity dividend. No-one really knows what a debt ratio of 24 per cent; that is the percentage it is for. It is charged on the non-labour of rates needed to cover payments. The council component as a fixed percentage of the Health is currently paying an interest rate on this Department budget. That is just another example particular loan of 7.83 per cent. It has been of one of this Government's taxes that endeavouring to get the city into a debt-free masquerades as a dividend. Nearly every position by the year 2001— some seven years department in the Queensland Government has away—and now that will be extended even a productivity dividend through which money is further. creamed off. That money does not even leave I thought, and I think most people in local the gates of Treasury. It does not even come out government thought, that there was supposed with the Budget. It is part of the Budget, but the to be a great symbiosis, or partnership, between departments never receive it. Now we have the local government and State Government. How performance dividend. can there be a partnership when the trust is The current borrowings of the Toowoomba broken by an act like this which means they have City Council are $55.5m to the end of March. It is virtually been stabbed in the back, the rules have interesting to discover what makes up the bulk of been broken and a tax brought in? The reason those borrowings. On Cressbrook Dam, the for the AAA rating is the partnership with these council still owes $33.2m. That is an absolutely corporations and these local authorities essential water supply for a city perched on the throughout Queensland. The immense pool of top of a mountain range. The rest of the money that councils bring into this borrowing borrowings include: sewerage pumping, facility gives it the stability and the soundness $1.26m; sewerage treatment, $3.9m; water that helps it obtain the AAA rating. One cannot in pumping, $3.5m; water treatment, $664,000; any way say that the AAA rating results solely and Perseverance Dam, $1.3m. The bulk of the from the efforts of the Queensland Treasury $55.5m is for water and sewerage. Effectively, Corporation; it is the whole combination of the this Government is taxing people's water and potential of Queensland, the sound financial sewerage supplies. The Government expects legacy left by the previous coalition Government, councils to provide basic infrastructure and and particularly by this pooling of the millions of services such as roads, parks, libraries, water dollars that is put into the bucket by the local supply and sewerage, and then it imposes a tax governments— money that the lenders know is on their borrowings. absolutely safe because a local government has never fallen over and will never renege on its When the money for the Cressbrook Dam responsibilities. was borrowed, a major need existed for water in 22 June 1994 8454 Legislative Assembly

That is the partnership and that is how the all the other statutory bodies if they want to business has been developed. Yet this is what borrow money? They will be forced to use this they now get for it. As well as that, corporations, system. They will be forced to pay some extra tax statutory authorities and local governments are to this greedy Government. The loans of the threatened that, if they do not use this, they will University of Southern Queensland will be still be charged this tax. If they want to borrow subject to this particular tax as well. from somebody else and they still want to use However, honourable members should look the Government guarantee, they still have to pay at some of the other organisations and this fee, even though they have been greatly corporations that will be affected. When one responsible for creating the Government looks again through the list of the QTC on- guarantee. These local authorities have been lendings from debt pools, one sees responsible for that because they put the money organisations such as the Queensland Electricity into the pool and they have given the solidarity to Commission, the Queensland Museum, the whole system. It is a Government guarantee Queensland Railways—according to the report that is there partly because of the contribution of from the QTC, its debt structure at the end of local governments, corporations and statutory June of 1993 was some $1.6 billion—Q-Fleet, authorities—their assets, their money and their the State Fire Services and Treasury Machine sound record. All of those things contributed to Gaming. All of these organisations will have to this Government guarantee and now these pay additional tax to this Government. How can bodies have to pay for it. Even if they do not want we say that there will be no cost to the State? to borrow from the Queensland Treasury They will all have an additional cost; they will all Corporation, they still have to pay that particular have to reduce their service or introduce new fee. It will not be called a performance dividend, it charges. I will look further at the long-term debt will be called the guarantee fee so that, one way pool on-lendings from the Queensland Treasury or another, through the attributed amounts or Corporation. The Water Resources Commission through the guarantee fee, they will have to pay had $313m in long-term borrowings at the end of this tax. June 1993 that will be affected; the Gold Coast I think the interesting thing that has been Waterways Authority, $54m; and the scarcely mentioned tonight—the debate has Queensland Electricity Commission, over $2 focused mostly on the tax and its effect upon billion. In local authorities, just from the long-term local governments—is the effect of this tax upon debt pool only—and remember that is only one statutory authorities. I will just look through some of the four pools—the Brisbane City Council of the statutory authorities who are involved in owed over $1 billion, the Gold Coast City QTC on-lendings from what is called the all debts Council, $341m, and other local authorities $1.3 pool, which pools the four different debt pools billion. Statutory bodies owed in total some the QTC manages. In my electorate alone $351m. It just makes one wonder how the organisations such as Grainco will be affected. tentacles of this Government are spreading and Grainco originally had a loan of some $60m. It is stretching out through every little area where it now down to $40m, but Grainco will be affected can find a bit more money. by this tax. The Lang Park Trust—here is one in I probably should mention a couple more Brisbane—will be affected by this tax. It had a statutory authorities because some of the debt of $1.3m as at June 1993; I wonder what its members opposite would be interested to know debt is now and how much tax this will bring in. the various organisations. At the moment the The Livestock and Meat Authority will be affected Cairns Port Authority has a debt of about by it. The Queensland Industry and $83.5m. Organisations such as the Development Corporation—what is going to be Caloundra/Maroochy Water Supply, the added to its loans? The QIDC is supposed to be Gladstone Area Water Board, the Gladstone Port super-competitive. This is the way we made Authority, the Mackay Port Authority, various some good organisations in Queensland—by river trusts throughout the State, the being super-competitive. They are supposed to Queensland Fish Management Authority and the be able to provide cheaper loans to people University of Central Queensland will all be establishing businesses, running farms or affected. I mentioned the Queensland Industry expanding their farming organisations, but Development Corporation—the impact of this tax borrowers will be hit with this tax as well. The will have great ramifications on the rest of the Toowoomba Grammar School has loans of State. $4.6m. When it borrowed this money well before June 1993 it would not have had any idea If honourable members want to look at the whatsoever that it would be slugged with this list of statutory authorities and other entities, that particular tax. What will happen to the other is available. Those organisations have to provide seven or eight grammar schools in the State and reports to the Government throughout the year, so honourable members will see the lists of the Legislative Assembly 8455 22 June 1994 various grammar schools, all with the potential to taxes, more charges, more fees and fewer have to pay this tax. The Brisbane Cricket services. Ground Trust, the Brisbane Market Trust—just to Mr De Lacy: That was an awful speech. pick out a few—the Bundaberg Port Authority, That was one of the worst speeches I have ever and some of the health service foundations such heard made in here. as the Darling Downs Health Service Foundation—if any of those organisations want Dr CLARK (Barron River) (11.10 p.m.): I to borrow any money to do particular projects, can only agree with the Treasurer. That certainly they will be up for the tax. The Emerald Rural was a dreadful speech from the member for Training School Board, the Gladstone Area Toowoomba South. It was very disappointing. Water Board and the Gladstone Port Authority The debate tonight on this Treasury Legislation and James Cook University will all be affected. Amendment Bill has revealed a very How many statutory authorities could get caught disappointing lack of honesty and a willingness in this net is mind boggling. I mentioned the on the part of members opposite to unthinkingly Lang Park Trust and the Brisbane Cricket Ground parrot the Local Government Association's Trust. The list goes on and on and on. If the deceitful slogans. Mount Gravatt Showgrounds Trust wants to I am similarly disappointed by the lack of borrow money to develop the showgrounds, honesty and understanding on the part of then like all these statutory authorities, it will be mayors in this State who demonstrated outside slugged with this tax. this House today. This debate has seen It is about time that Queenslanders woke up commonly used terms such as "tax" and to exactly what is happening to them with this "retrospectivity" given new meanings to support Government, a Government that has raided fallacious arguments and lead to erroneous every hollow log it can, a Government that keeps conclusions—as I will demonstrate. Having said accumulating money at a very high rate. It is that, I do want to say that I understand why local about time that everyone asked just what are authorities are objecting to this legislation. It they getting back in terms of services. That is does represent a change in Government policy what this Bill is about: extra tax and no more with respect to Queensland Treasury services. We have seen already what is Corporation loans to local government. happening to the workers in Queensland. In Because I have served in local government, health services, the domestics who work in I am aware that when councils were invited to laundries are going to lose their jobs. A total of refinance their loans through the Queensland $30m has been cut from the wages figure for Treasury Corporation it was on the blue collar workers. The loyal workers of the understanding that the benefits would be hospital infrastructure are going to get the sack. passed on to councils in full. Indeed, local We saw how the Government treated the 100 government has benefited to the tune of some workers at Westbrook. $132m since such arrangements began. Madam DEPUTY SPEAKER (Ms However, unlike local authorities, I believe that Power): Order! The honourable member has this change in policy is justified and that the made his point before in those areas. I will not Government cannot be held responsible for any allow the honourable member to revisit that area rate increases or job losses. for the remainder of his speech. He will return to The justification for this legislation is to be the Bill. found in the performance of the Queensland Mr HORAN: I am referring to the fact that economy and the State's AAA rating, which this is a new tax and that services have been cut. enables the QTC to enjoy such lower interest We have seen it; it is happening throughout rates as a consequence. I am heartily sick of Queensland with the railway lines being pulled hearing from members opposite that the state of up and small business being knocked for a six. the Queensland economy is due entirely to the However, what we see here in this Bill is all the National Party in some past era. Managing the trust between local government and the State economy in the boom times of the seventies and Government being broken—broken forever. eighties is a far different task from managing the This is a business arrangement that has been economy during the most severe depression in broken; a deal that has been done but that has Australia's history since the 1930s. While the rest been broken. It is a new, sinister tax under the of Australia has been shedding jobs, we have name of a dividend. And what will we get for it? been creating them. Our economy has been Nothing! The only thing that will happen is that growing at a rate twice that of the southern rust- local government and statutory authorities will bucket States. have to reduce their services, so we will see the I accept the point made by the Toowoomba ongoing saga of this Government, that is, more Mayor, Councillor Ross Miller, in last Sunday's 22 June 1994 8456 Legislative Assembly

Sunday Mail. He claimed that local authorities before me tonight have tried to set the record have played a role in maintaining a healthy straight and to educate members opposite, but I economy in Queensland. Councillor Miller, am afraid that they are slow learners. referring to Queensland's AAA rating, had this to The LGA solicitor advised that any payment say— to a Government not directly related to the cost "It's the partnership between the State of provision of a specific service could be Government and local authorities that makes described as a tax. Yes, it could, if one is—in that rating." common with the LGA—intent on deliberately He was referring to the AAA rating. I agree, but and dishonestly misleading the community on Councillor Miller does not appear willing to this issue. How can the sharing of the savings extend the logic of his argument. If he did, he that are made by borrowing through the QTC be would come to the same conclusion as the called a tax? If a benefit is going to be called a tax, Treasurer, namely, that the State Government then I suggest we start to rewrite the textbooks and local authorities should share the benefits and taxation law. Make no mistake—the that flow from Queensland's AAA rating. That is proposed arrangements do represent a benefit what this legislation is all about. That particular to local authorities, as the 22 authorities that mayor has himself identified the justification for have joined the QTC scheme since July last year, the change in Government policy. He just will not when the new performance dividend admit it. Or maybe he did not understand the arrangements were announced, know only too significance of what he said. well. What else do local authorities know to be Mr Bredhauer: Cairns would be one. true but will not acknowledge? Let us consider Dr CLARK: Precisely. I was just going to the claim of secrecy. I refer to the letter that we all say that one such council that has recognised received from Greg Hallam, the Executive these benefits is the Cairns City Council. Yet Director of the Local Government Association. Mayor Byrne, playing his usual point-scoring Referring to the current legislation, he said— games with the State Government, said in the ". . . we have fought this proposal in its Cairns Post that he was opposed to the various guises for the past three years." performance dividends. Interestingly enough, he also said that this particular piece of legislation Yes, the past three years. Yet last week, Mayor would not greatly affect the council because it Soorley talked about a secret tax. How can it be a had only just started borrowing from the QTC. secret if the LGA has known about it for three years? Nobody could call this proposal a secret. Mr Bredhauer: Didn't stop them putting As we have heard tonight, this is quite consistent the rates up by 14 per cent, either. with the approach adopted with respect to the Dr CLARK: I will have a lot more to say Queensland Electricity Commission and about that. It certainly will not have a deleterious Queensland Rail loans, which began in 1990. So effect on the Cairns City Council, because the much then for this claim of secrecy, which difference in expected loan terms with the obviously does not stand up to scrutiny. performance dividend is 12.85 years, compared I turn to the question of retrospectivity. As I to 12.54 years without the dividend—an said at the outset, this term has a decidedly enormous difference of three months. But both rubbery quality, being stretched to suit the of these terms are below the 13-year term purposes of the LGA and mayors such as currently expected. Councillor Soorley. The Treasurer said on As other councils have recognised, they will numerous occasions that the performance benefit by varying degrees. The LGA's own dividend would apply only to current loans. If the independent assessment last year by the Brisbane City Council has not yet managed to accountancy firm Deloittes said this—and it is repay the debts incurred to sewer Brisbane, I worth quoting again, because it is just another believe that says more about the financial example of the dishonesty in this campaign— management of the council than it does about "It is possible that, given QTC's history State Government policy. of outperforming both its benchmark and This legislation could only be properly the other States' central borrowing described as retrospective if it applied to loans authorities, Councils could incur the cost of that have been paid off. Obviously, it does not the Performance Dividend and still reduce apply to those loans. Or if it applied to the $132m their current expected borrowing term of benefit already enjoyed by local without any increase in existing authorities—again, it obviously does not apply to repayments." that. The best example of the creative use of As I said, that dishonesty really distresses me. language is surely the term "tax". Speakers Legislative Assembly 8457 22 June 1994

I want to reserve my severest criticism of the services, the council has been forced to LGA's campaign as it relates to the implications of hike rates." the performance dividend for rates and jobs. The An honourable member: He's off with LGA knows that as soon as people think their the fairies. rates are going to go up they start to get worried and they sit up and take notice. The LGA is not Dr CLARK: He certainly is. It is proof of alone in attempting to deceive people, because what I am saying. That will not be the last council no fewer than 10 councils that I am aware that will try that dirty trick. We had better watch of—and there are probably more—have wrongly out. claimed that rates will have to rise as a result of Mr Bredhauer: As a result of the this performance dividend. But no mayor has performance dividend, they should have been quite so specific as Jim Soorley. According decreased their rates by 0.5 per cent, rather than to an article in yesterday's Courier-Mail, he said increasing them. that the cost for sewerage would rise $541,422 a Dr CLARK: Precisely. At least the Mayor of year; waste, $133,073; water, $482,763; the Mulgrave Shire has had the decency to transport, $185,551; and civic works, $1.64m. acknowledge that. He will not increase the rates. Jim Soorley claimed that the total cost for What a hypocrite is Councillor Kevin Byrne. That 1994-95 would be $2.986m. is typical of the behaviour that we have come to As members are aware, the Treasurer has expect from him. consistently said that the performance dividend That leads me to address the claims made would not be a cash impost on councils and tonight by the member for Callide. I respect the would only affect loan terms which had been member's commitment to local government. She falling and continue to fall. In view of Mayor understands local government and she is a great Soorley's claim and the claims of other mayors, I advocate of it. I was particularly disappointed to was particularly interested in his interview today hear her talk of the greedy Goss Government as with Anna Reynolds on radio. Ms Reynolds said if we were making a grab for local government to Jim Soorley— funds. Not only do we still provide benefits to "But he is right isn't he"— local government through the QTC but also—as referring to the Treasurer— the member for Callide is aware because the Minister for Local Government told her only last "when he says that there shouldn't be an week—the Goss Government has increased immediate financial impost on the councils?" capital subsidy payments to local authorities by a What did Councillor Soorley have to say? He net $30m this financial year. said— Although the member for Callide is not here, "Well there won't be on Brisbane." I will refresh her memory. Perhaps she is listening How can he say in the space of a week that the somewhere, or she can read my comments council will lose in excess of $2m this financial tomorrow. The State Government provides local year and today he must confront the reality—at authorities with a range of assistance measures, least he is now finally being honest—and say, including the Rural Living Infrastructure Program, "No, there will not be any effect on Brisbane." It is $40m; the Regional Roads Program, $50m; shameful. interest subsidy loans to droughted authorities, $13m; capital works subsidies, $54m; bus Mr Nunn: He's a quick learner. subsidies, $27m; and roads subsidies, $27m. It Dr CLARK: That is a charitable is disappointing that the member for Callide was interpretation. Why are local authorities so keen not prepared to recognise that. to impress on the public that rates will rise as a What does she think the Government will do result of the performance dividend? We are left with our benefit from those new arrangements? with only one explanation. It will enable them to Does she suppose that the Treasurer will sit shift the blame for their own financial around counting out from some treasure chest performance onto the State Government. that amount of money? Of course he will not. We Despite the recognition by the Mayor of will use that money where it is needed for Cairns of the lack of impact of the dividend on infrastructure in Queensland, that is, for physical council performance, he could still today explain and social infrastructure on which the former this headline in the Cairns Post, "City budget ups Government never saw fit to spend. charges 14%". He could still explain that by I turn finally to the question of jobs. I do not saying— have a problem with AWU boss Bill Ludwig being "But with its growth and decreasing here at the demonstration today because he has government assistance combined with the a responsibility to represent the interests of his community's expectations of increased union members who work for local authorities. 22 June 1994 8458 Legislative Assembly

However, Mr Ludwig's statements demonstrate carries a load that falls to the State in other parts that the dishonest campaign that the Local of Australia. Government Association is waging is working. That responsibility for major capital projects That is of great concern to me. Local government imposes severe financial burdens and means jobs are safe. I understand that Mr Ludwig was that councils must borrow heavily for long-term scheduled to appear on the 7.30 Report tonight infrastructure. Council ratepayers carry and but cancelled all interviews from approximately 3 service debts that the State would otherwise o'clock this afternoon. I hope that means that shoulder. They insulate the State Budget from somebody has exposed the propaganda being large amounts of debt. For that, their reward from peddled by the LGA and explained to Mr Ludwig the Labor Goss Government is a new burden. the truth about the performance dividend. Council ratepayers are asked to pay the State a In conclusion, I point out that the legislation bonus on top of the debts that they incur and is not a secret tax. It is not a retrospective tax. It service in place of the State Government. will not increase rates or result in job losses. Labor saves its State Budget from debt and Quite the contrary. It will lead to significant piles it onto local government. It also loads up benefit for councils by reducing their loan terms local government with the electoral baggage of and it will generate Government revenue that will extra new taxes. Make no mistake, political be used for essential infrastructure needed in cowardice is the motive for that new tax. Labor our growing State. wants to extract a few more dollars but lacks the Mr GRICE (Broadwater) (11.26 p.m.): Local courage to do it up front. It uses local government could be excused for thinking that government as a back door and hopes that any this Labor Goss Government is engaged in an all- rebellion will be aimed at the people it forces to out war against councils. Labor has imposed collect the new taxes—the local government changes in the way in which councils do their aldermen. business, in the way in which they are elected However the Treasurer might describe that and even in the range of the matters that they so-called performance dividend, the ratepayers must deal with. It started with a long list of reviews of Queensland have no doubts at all that it is a that began when Labor came to office and it still tax. The Lord Mayor of Brisbane had it right this continues today. It went through wholesale morning on the ABC when he talked to Anna changes to local government responsibilities Reynolds. He reckoned that the spin doctors without the added revenue to pay for them. It were at work. No matter what the Treasurer says, went on to the continuing assault through a tax is a tax is a tax. In his own words from a pressure for unwanted amalgamation of councils. speech in this House in 1990, if it looks like a It has come now to that attack on the revenue duck and it quacks like a duck, it is a duck. The base of councils. performance dividend is a tax. I find it impossible to support the Labor Although Labor members in this House are Government's treatment of the local government not permitted to admit that, someone more sector. That sector may be the third tier of important is. That person is the Labor Party's real Government in our democracy, but only a fool boss in this State—the baron, the AWU chief, would underestimate its importance to the Baron Bill Von Ludwig, and admit it he did while people whom we in this House represent. The he was locked out of the grounds of Parliament local authority is the level of government that is House along with local authority leaders from all closest to the people. It is the level of over the State. Bill Ludwig wants no part of being government with the most direct form of lumbered with the De Lacy secret tax and he said democracy. It is the level that delivers the most so loud and clear. A bad tax, Bill Ludwig called it, visible and some of the most important services. and one that the Labor conference can reverse, Local government has the responsibility for he said tonight. For the sake of every ratepayer most of the streets in our suburbs and cities. It is in Queensland, let us hope that he can make responsible for carting away our domestic and good on that. At least he has the spine to buck industrial waste. It is also responsible for a whole the Premier and the Treasurer on this, unlike the range of regulatory activities that impact directly people his party has put into the Parliament. on our daily lives, such as building and health Jim Soorley is not a politician whom I admire inspections and even animal by-laws. In for his policies or his administration of the city. Queensland, local government also bears a few However, he has just won an election, and he burdens that are unique to our system. Local speaks with the authority of his constituents of government must spend many millions of dollars Brisbane. He should be listened to about this installing and maintaining major infrastructure, for matter. So should the mayors from Cairns to the example, in the areas of water supply and Gold Coast, who fronted here today to confront sewerage. In those matters, local government this Labor Government on behalf of their Legislative Assembly 8459 22 June 1994 ratepayers, their employers. They have the happen by hiding behind the Local Government legitimate authority to say "No" to this new De Commissioner. Labor does not have the courage Lacy tax. I reckon that they have the support of to face the people and answer for its own every ratepayer in Queensland on this. If they do actions. It has appointed a mandarin—someone not already, they soon will when rate notices start with enormous power but someone who has to carry the message about who is really to blame never faced an election—to do its work for it. This for another bite out of the family income. Government wants to do things its own way, but I have touched already on the range of it wants to avoid the odium. That is why it hides services councils must provide to our behind the Local Government Commissioner to communities. Those services all cost money to get the amalgamations that it wants. That is why it provide. On top of those direct services is added hides behind local councils to get the taxes that it all the extra expenditure local government has wants. It is easy for a Labor Government to sit had to face in coping with the massive changes back in George Street and hand out orders but, since Labor came to power in this State. The at the end of the day, someone has to find the paper war started straightaway. Since the change money to pay for all the changes and all the work. of Government, every council in the State has Unfortunately for local government, the State will been buried in an expensive mountain of paper not accept the bill. generated by inquiry after inquiry. Councillors The Treasurer seems to forget or ignore the and paid staff have spent much of their time fact that, when it comes to dividing up the answering questions and preparing submissions nation's public finances, local government gets demanded by the reform carpetbaggers, who the last bite of the cherry. As the third tier of came as part of the package deal. Government, local government has always found The same applies to the Local Government it hard to make ends meet financially. Of course, Association, which has been saddled with huge Canberra grabs the lion's share of the funds expense doing the same thing. When councils available from the Australian people and the should be occupied with what they do best, and State Government grabs most of the rest. Local have been doing for the best part of 100 years, government gets the crumbs when the tax pie is they are doing something else. Instead of carved up. To meet the rest of its needs, it must concentrating on the real needs of ratepayers, levy rates on property holders or it must borrow. they are fighting the paper war. That is an There are severe problems with property expensive and unnecessary call on resources. rates even at the best of times, and we all know However, it does not end there. Many that these are times of severe financial stress. councils are involved in a battle for their very Many people simply cannot afford to pay their survival as true representatives of their local rates in Keating's workers' paradise of communities. Labor's centralists and control unemployment and recession. On the other freaks hate the idea of dealing with a lot of hand, local government cannot do without those councils. They certainly hate dealing with them rates. They have borrowings to service and now, when the councils object to having their labour forces to pay. If there is a drastic shortfall in pockets picked. The clear philosophical point rate revenue, there will have to be severe coming through the amalgamation proposals is cutbacks in services and in jobs. that bigger is better. Most of us know that that is However, a shortfall is what this legislation absolute rubbish. Most of us know what a will create. Even if the tax is added to the term of disaster the bulk of the proposed amalgamations borrowings, as the Treasurer has suggested, a of local authorities would be. So do the local prudent council will have to make provision for authorities involved, and they are having to divert payment. That means an added call on rate much of their energies to the fight against revenue and the consequences that will follow. unwanted amalgamation. The Goss Labor In that case, Labor owes councils a change for Government and the reform carpetbaggers take the better in access to funding. There must be a the view that the mere fact of amalgamations will full review of the way in which the Grants somehow lead magically to increased efficiency. Commission allocates finance to the various That idea went out of vogue in the 1970s. levels of Government, and that change should However, Labor is determined to persist with it, be pushed hard by this Goss Labor Government, despite the objections of most ratepayers. But as which is taking away some of the current rate with this De Lacy stealth tax, it will persist and it revenue. will try to deflect the blame. The States have had their independence of A few years ago, someone came up with the action and their access to funding corrupted by bright idea of appointing a Local Government the Commonwealth's constant effort to centralise Commissioner to do the dirty work. Typically, power in Canberra. We have to ensure that the Labor is trying to avoid the backlash for what will pain is not simply passed down to local 22 June 1994 8460 Legislative Assembly governments as well. That is probably a forlorn disagree with it. We know that that happens in hope when we consider the record of this Goss the National Party, but the Labor Party is not like Labor Government. that. The Labor Party is quite happy to have Mr BEATTIE (Brisbane Central) people outside Parliament House demonstrating (11.37 p.m.): As usual, Opposition members, as their opposition. If this was back in the National they endeavour to beat up every issue for their Party days, they would all be locked up. When short-term political gain, have tried to beat up this the Nationals were in Government, people could issue. I was a little intrigued when the Deputy not even demonstrate. There was no right to Leader of the Coalition started her contribution in march. Had the Nationals been in power, the opposition to this Bill. She claimed to have so whole lot of them would have been locked up. much support, yet for most of the first part of her So National Party members should not come in speech, only three Opposition members were here with their corny arguments. Some of the present in the Chamber. There was the deputy councillors who were out there protesting were, leader herself, but there was not one other in fact, supportive in days gone by—— Liberal member present in the House. In addition Mr Cooper interjected. to the deputy leader, there were two National Mr BEATTIE: The member's party were Party members, the members for Lockyer and the throw-away-the-key merchants. Those Warwick. So the great, phoney outrage from the people would not have come down George Opposition was reflected in this House at the Street if the Nationals had still been in office, and beginning of the member's contribution by three the member knows that darn well. We tolerate, members of the Opposition. we allow, we support, and we encourage the Mr T. B. Sullivan interjected. right to demonstrate and the right of people to Mr BEATTIE: I take that interjection. They have a different point of view. As to the people know their real sentiment about this piece of who demonstrated outside—a lot of play has legislation. We are receiving phoney opposition, been made in this debate by a number of the beating of the drum, for the Opposition's speakers, including the last speaker, about political purposes. comments made by Bill Ludwig, the secretary of the AWU. The same principle applies. Bill is I was also intrigued to see the Deputy entitled to his view. His union represents a large Leader of the Coalition trying to cuddle up to the number of people in local government. Of Lord Mayor, Jim Soorley. I do not think that Jim course we will see Bill expressing a point of view would be saying that they are just good friends. about it. He happens to be wrong—and I make The Liberal Party, at every opportunity, bags City that very clear—but he is entitled to have his Hall. It does not matter whether the council view. introduces sensible, environmentally aware legislation, such as that relating to recycling Members opposite seem to be of the view bins—sensible legislation or ordinances that that Bill Ludwig is a fearful character. I have have been brought in by the Brisbane City known Bill Ludwig for years. I knew him when he Council—it has been attacked by the Liberal was an organiser for the AWU. He is not the Party. Yet, on this occasion, the Liberal Party fearsome character that members opposite think seeks to try to cuddle up to the city council for its he is. Whenever I think about Bill, I think about own short-term benefits. I say to the honourable him being warm and cuddly. I knew Bill Ludwig member that Jim Soorley is not that silly. when I had a full head of hair. I agree with the comments that were made An honourable member interjected. by the member for Everton. Jim Soorley is a Mr BEATTIE: What does the honourable good Lord Mayor of this city. He is a person of member mean by saying that I have never had a whom all members of the Labor Party are proud. I full head of hair? I feel very severely attacked by regard Jim as a friend, and I believe that he has that interjection. done this city proud, and he will continue to do so. However, I have to say that, on this issue, he Mr Elliott: Were you at the caravan park is wrong. The Labor Party is a broad, tolerant when that little melee went on? political party. Mr BEATTIE: From the sound of that Mr Robertson: Come on Russell, you can interjection, the member needs to be in some spell "tolerant". sort of institution. Mr BEATTIE: He can spell "tolerant". Just I saw the news tonight, which reported that look at him. If we work on him, he will get out everybody is running around talking about a split "tolerant". The Labor Party is prepared to allow within the Labor Party. What a load of nonsense! different points of view. It is not the party that So what if a senior trade union official expresses seeks to kick people to death because they Legislative Assembly 8461 22 June 1994 his democratic right in relation to this legislation. this legislation is all about, as I said, is sharing the Big deal! He is entitled to express his view. benefits with the people of Queensland. Is the Mr J. H. Sullivan: We believe in Opposition saying tonight that Queenslanders democracy. do not have a right to benefit from Queensland's AAA credit rating and the performance of the Mr BEATTIE: I take that interjection; of QTC? Is that what it is saying? Because that is the course we believe in democracy. We encourage effect of what it is saying. So what will happen as that democratic point of view. As I said before, a result this legislation? The performance unlike members of the Opposition, we do not dividend will return half of the benefit to the see Bill in any other role than that of a Queensland Government. constructive adviser and a leader of a union that The Queensland Government has the AAA participates in a constructive democratic way in rating. It is the Queensland Government that is the Labor Party. We have warm and fuzzies ensuring that the QTC performs. So the whenever we think about Bill, and we see him in performance dividend will return half of the a very constructive way. benefit—— Mr Robertson: Ask him to spell Mr Cooper: It's the State of Queensland, "democracy" rather than ask him about the not the Queensland Government. separation of powers. Mr BEATTIE: All right, it is the State of Mr BEATTIE: I will not put the member for Queensland, but at the end of the day this Crows Nest to the test; we do not want to do any Government—and through this Government the damage to him. At this time of night, he could people of Queensland—is not benefiting from have a brain seizure of some kind. that AAA rating or from the QTC performance. As the honourable member for Everton That benefit is only going back to those local said, it is not surprising that the Lord Mayor, Jim authorities and other bodies who are borrowing Soorley, is going to argue a position as he sees it money. I will refer to other Government bodies on behalf of the people of Brisbane and on later. behalf of the city. He has been a good financial What will happen? The Government, upon manager. Of course he will want to keep every receiving that benefit, can pass it on to the advantage that he possibly can. people of Queensland. That is only fair. The But let us deal with the relevant pieces of effect of the argument of members opposite is to this legislation. This performance dividend prevent that from happening. By opposing this, imposition is no surprise. That is the first point. It they are opposing the Government receiving a was announced in the 1993-94 Budget, so it is fair share. What is wrong with members no surprise to anybody. We have to ask this opposite? They do not want to have a fair share. question: why was this not pursued by some of They just want to look after their mates. At the the very outspoken mayors prior to the local next election, the people of Queensland may government elections in March? I did not hear well remember that the Opposition did not want too many of them trumpeting up and down, yet to pass on those benefits to them. they knew last year that this piece of legislation Half of the benefit will still remain with the would be introduced. That is the first point. local authorities or the borrowers. Members What is it all about? It is the imposition of a opposite seem to think that it is only the local performance dividend on the liability authorities that will be in this position. The management operations of the Queensland Queensland Electricity Commission is in the Treasury Corporation. This is really about sharing same position, as is Queensland Rail. What have the benefits of Queensland's financial strength members opposite said about Queensland Rail between the State Government and local or the Queensland Electricity Commission? authorities. That is what it is about, something Nothing, because those organisations were not that the Opposition lost sight of in this debate. part of their political exercise. Queensland attracts a AAA credit rating, which This is the crucial bit. The performance means that the State Government can borrow at dividend is calculated against benchmarks, so if cheaper interest rates—cheaper than anyone there is no benefit, there is no dividend. So the else and cheaper than the private sector, much State Government would get nothing in those cheaper. Those who have borrowed through the circumstances. The real issue is what this Queensland Treasury Corporation have performance dividend will mean for local benefited significantly because of Queensland's authorities. Let us forget about the political hype. AAA credit rating. It will only affect the repayment term of the loan. Currently, the State of Queensland does That is the first thing. There will be no cash-flow not receive any share of these benefits. So what impact, which is contrary to what members opposite have been trying to suggest and, 22 June 1994 8462 Legislative Assembly therefore, there will be no reason to increase Queensland Rail, an area in which I have some rates at all. To suggest that there has to be an interest. The current existing term in years is increase in rates is a nonsense. That is not true. 15.54; the current expected term in years—as Mrs Woodgate: It is dishonest. the honourable member said, because of the performance by the QTC—is 13.17; the Mr BEATTIE: I will take that interjection; it expected loan term with performance dividend is is a dishonest argument. In fact, repayment 13.04; and the expected loan term without terms, as we know, are reducing because of the performance dividend is 12.75. Those results cheaper borrowing cost generated by the QTC assume the continual successful performance by and the Queensland Government's AAA credit the QTC against its benchmarks, and there is no rating. Let us deal with the facts instead of the reason why that should not happen; the debt hype. I have some examples showing the outstanding in the QTC long-term debt pool as at estimated impact of the QTC performance 31 December 1993—or 1 January 1994 in the dividend upon loans of QTC participants. Let us case of the Cairns City Council, which joined the go through the various authorities. QTC from that date; no changes to participants' For the Brisbane City Council, the current debt service payments; and current expected term for loans is 20.38 years. This is an exercise. terms as quoted to clients in their quarterly The current expected term is 11.52 years. That is statements from the QTC. because of the performance of the QTC. The I believe that those figures indicate clearly expected loan term with performance dividends exactly what will happen with various loans. is 11.44 years. The expected term without Those figures overwhelmingly and in a very performance dividends is 11.26 years. What we forceful way explain the small difference in terms have is a difference between 11.44, or 11.26, of repayments. As I said, in Brisbane that period which is 0.18, or just over two months. That is all will be just over two months. That is all we are members opposite are talking about. Let us talking about. We are not talking about an move on. Let us look at the Cairns City Council. extended period of years; we are talking about a Mr J. H. Sullivan: The reason it is such a very short period. The notional cost to councils short period of time is that the performance has of the performance dividend is estimated to be knocked that time off. between $7m and $8m. As I said, it is not an amount per se; it is a short extension of the loan Mr BEATTIE: Exactly. The performance of period. This means that they would otherwise be the QTC has resulted in the benefit that those benefiting to the tune of $15m to $16m by borrowers and the local authorities are getting. borrowing through the QTC. This is simply a The current loan term in Cairns is 13 years. sharing of the benefits of investing through the The current expected term is 13 years. The QTC. It seems to me that the arguments are expected loan term with performance dividends overwhelmingly in favour of this legislation. As I is 12.85 years. The expected loan term without said earlier, it is therefore not a new tax; rather, it performance dividends is 12.54 years, a very is a dividend aimed at sharing the benefits of the small difference. Let us take the example of the borrowing of the QTC. Ipswich City Council. The current term is 6.5 I want to refer to the letter from King and Co. years. The current expected term 6.44 years. Jim Soorley wrote to all members of the Labor The expected loan term with performance Party caucus, and to that letter he attached a dividends is 6.43 years. The expected loan term legal opinion from King and Co. which was without performance dividends is 6.38 years. Let obtained by the Local Government Association. us take the example of Logan. The current term King and Co. is a very reputable firm of lawyers. is 12.01 years. The expected term is 9.41 years. That opinion states— The expected loan term with performance dividends is 9.35 years. The expected loan term "Any payment to a government which without performance dividends is 9.20 years. is not directly related to the cost of provision The difference is very small. of a specific government service can be described as a tax." I want to deal not only with local authorities but also a couple of State Government bodies. King and Co. has completely missed the boat. With the Queensland Electricity The opinion goes on to state— Commission—and one could hardly say that that "In that sense, the Performance is a local authority—the current existing term in Dividend is a tax and the purpose and effect years is 17.5; the current expected term in years of the proposed legislation is to introduce is 6.31; the expected loan term with performance that tax with retrospective effect." dividend in years is 6.28; and the expected loan That is wrong. It is not a new tax. As I said before, term without performance dividend in years is it is a dividend aimed at sharing the benefits of 6.22. The difference is very small. Let us look at the borrowing of the QTC. It is not a new tax. Legislative Assembly 8463 22 June 1994

King and Co. has simply totally misunderstood serve the community that elected them. In other the legislation. words, through their office, members are Let me deal with the retrospectivity supposed to provide a service to their argument. I am prepared to accept that it is the constituents. I do not believe too many members hardest issue in this debate. The legislation will would argue about that. I suggest that, apply back to 1 July 1993, but it applies to regardless of our differences on either side of current debt from that time, not back before that the House, most of us agree that that is our role. I date. I know that the Opposition made a big issue may have ALP supporters in my constituency about retrospectivity, but we are talking about from Pittsworth or somewhere else. The most the dividend being calculated on the current faithful Tories ever known might walk into the debt as it stands now or from 1 July 1993. We are office of the member for Brisbane Central. I have talking about this amount being fixed on the no doubt that, under great duress, he still amount outstanding now. In that sense, it is not represents them. retrospective. Mr Cooper: He would tax them for the If one goes through these arguments and pleasure. examines the hype that has been generated Mr ELLIOTT: He would tax them; that is during this debate, one can understand the right. frustration of some on the Government side Earlier this evening, the member for about the arguments that have been advanced Mundingburra used the twisted logic that, in the public arena. The difficulty that the because the Government through the QTC was Treasurer has had with this argument—and I providing a service, it therefore must charge for think that he has handled it very well publicly—is that service. I responded to the member—and that it is a complicated issue and it is difficult to he did not take the interjection very far—that, if argue on the public airwaves, particularly when that were the case, perhaps he feels that every the Opposition is deliberately distorting the facts time someone walks through the door of his and when there is some confusion in the office, because he is providing a service to them, electorate as a result. The point I want to make is he should tax them! I have had people say to me, that the facts are very clear. The Opposition "What do we owe you?" I say, "Come off it! That is needs to be very careful. At the end of the day, my job. I am here to serve you." the Government can—and no doubt will—turn around and say that the Opposition is opposing a Mr Beattie: You're the new breed of benefit from the performance of the QTC and a Nationals. benefit from the performance of the AAA rating Mr ELLIOTT: That is why I am still sitting in being passed on through the State of here. Queensland to the people of Queensland. That As to the AWU faction—the member for is what this is all about. Mundingburra is not only a member of that The Opposition cannot have it both ways. It faction but he is also a delegate for it. He will cannot oppose this and then demand that there attend the conference as an AWU member, and be extra spending in schools or that there should he will be expected to argue the AWU line. The be extra spending on a railway line. Members member for Brisbane Central said that he feels opposite cannot have it both ways. They cannot like giving Bill Ludwig a cuddle. I am not sure oppose a proposal such as this and then whether the member was talking about a wrestle demand the world. That is economic and financial or a neckhold, or what sort of a cuddle he had in irresponsibility, and it is not the sort of thing that mind. the National Party of 10 years ago would have Mr Beattie: We are very close. supported. This Government has a very proud economic record. The National Party in days Mr ELLIOTT: I am glad to hear that. I am gone by tried to maintain a good economic sure that he will give the honourable member record. Its former members would be ashamed of some advice at the coming conference. From the arguments that have been advanced in this what he said this afternoon, I tend to feel that Mr House in opposition to this piece of legislation Ludwig will have a few words to say in respect of and the arguments advanced in the electorate. this matter. And not without good cause, I might mention, because of course he has a large Time expired. number of members working for those people Mr ELLIOTT (Cunningham) (11.57 p.m.): who were protesting over the road today and Some very interesting points have been made representing their constituents. They were there during this debate, particularly by the member for with their chains and badges of office and so on. Mundingburra. I view representation along these They were there because they truly and honestly lines: I feel that when members come into this believe that this Government is taking money out House, whether they like it or not, their duty is to of their ratepayers' pockets. That is what this 22 June 1994 8464 Legislative Assembly

Government is doing. The fact of the matter is likes, but the bottom line is that it is a tax and it will that the Government is creating a brand new tax. be recognised by the public of Queensland as a That is what it is. The Government can dress it tax. The Government is mad if it thinks it can sell it up; it can put all the pretty window dressing on it to the public as some fee for service. That is just that it likes; it can run it up to the ALP conference rubbish. What about all the other services this and try to tell the people from the AWU that this is Government provides? It does not go out there not a tax, but we know that it is a tax. I have never and charge everyone for every last service it seen Government members quieter than they provides around the place. It is a nonsense. were here at question time today. Many of them An Opposition member interjected. were hanging their heads in shame because they know that at their conference the AWU Mr ELLIOTT: They would like to. I know faction will defeat this legislation just as the ALP they would, because the bottom line is that they had to continue rail services right throughout the are hungry for money because they have made a length and breadth of the State. We will see the mess of things. They came into power in this same sort of exercise all over again. State with the coffers of Treasury full of money in respect of workers' compensation and the Mr J. H. Sullivan interjected. Nominal Defendant fund—I do not want to rattle Mr ELLIOTT: I would hate to see the them off; they have all been rattled off already honourable member get into trouble. The tonight, so I will not bore everyone by going on member for Caboolture is another warm, cuddly with that. However, the fact of the matter is that type. this Government is heading down that same Mr J. H. Sullivan: My wife says I am not road. Is this just the start? Are we going to see a so cuddly since I have been on Weight situation where every semi-statutory body has to Watchers. pay these fees? I instance one to the Treasurer, who is sitting here tonight. I ask him to take heed Mr ELLIOTT: That might be so. I believe of this. There is an operation which he may well that my constituents will have no difficulty know called the Condamine River Basin Irrigation whatsoever, regardless of which side of the Association, and the Condamine Water Board, as fence they sit on, seeing that this is a tax. I have I understand it, has a Government guarantee to no problem with the card-carrying members of borrow funds to operate and these funds are the ALP; that is their right. I have no argument rolled over. There has been a lot of controversy with that; we live in a democracy and we all about just how Treasury has handled that. At one should be able to put forward our point of view, time, those funds used to be rolled over early in whatever it may be. However, the Government is January and there was never any problem with it. taking this too far. It should just look at what its The whole thing was run on a business-like compatriots in Victoria did. Labor there really basis. Lately we have seen unbelievable made a mess. I have to say that Labor's mucking about and inefficiencies which have colleagues in South Australia were not a lot brought considerable embarrassment relating to better. banking facilities. Mr Beattie: They can't help it, it's the That is the sort of thing that this Government climate in Victoria. seems to be involved in. I do not know why. I do Mr ELLIOTT: The member for Brisbane not understand why the Government does this Central says it is the climate in Victoria. It might sort of thing. If Treasury makes a conscious well be the climate, but this Government is doing decision that it needs more money—when one its level best to Victorianise Labor's whole takes into account the way in which the Treasury approach to economic management and it will benches were left to this Government, Treasury come to the same sticky end if it does not should not need more money—then why does it recognise the direction in which it is going. not be honest and go out and tell the people that Mr J. N. Goss interjected. it is going to spend more money and say quite clearly and unequivocally that it is going to raise Mr ELLIOTT: My colleague the more taxes to do it? Surely, that would be the Opposition spokesman on urban transport so honest way to do it. What the Government is rightly says that the Government has imported doing is not only totally unnecessary, it is big numbers of these people up here and they undemocratic, because when all is said and are giving this sort of advice to Treasury and done, the local authorities of this State were a other areas of the public service. Regrettably, creation of State Governments—they are the members opposite are listening to them. They child of State Government. So, what this will trick the Government into climbing a tree and Government is doing is kicking its own children in then they will chop it down. Unfortunately, that is the teeth and demanding money from them. I what will be the end result. Quite frankly, it is not hope it makes the Government feel good on. As I said, the Government may call it what it because, after the ALP conference, where the Legislative Assembly 8465 22 June 1994

AWU will get at them, Government members will Rivers, Yvonne Chapman, reportedly venting her not be feeling so good. spleen against what she labels the "criminal" The Honourable Leader of the House who State Government. Let me deal with the opening just strolled in will find it pretty warm in the kitchen paragraph of that article, which states— there, too. I am sure a word or two will be said to "Pine Rivers Shire rates could rise by him about the whole subject. So I will be as much as $30 per ratepayer if a proposed interested to watch and see just what goes on. State Government tax becomes legislation." As my voice is getting a bit croaky tonight, I might These are the facts. The performance dividend not go a lot further. It might run out, and that is on the Queensland Treasury Corporation will not always embarrassing. I just want to say that, result in councils having to increase their coming from an area such as my electorate and repayments. Therefore, there is no need for representing all or part of some eight local them to increase their rates or charges. The authorities, this legislation is just not on. I believe performance dividend is a sharing of the benefit that the Government is taking a step which is that the QTC generates—half to the borrowers totally and absolutely unnecessary. I spoke to and half to the owners of the QTC, in other people from local authorities who were outside words, the taxpayers of Queensland. They are demonstrating today and who clearly indicated to also entitled to half. This means that councils still me that this legislation will cost small rural shires receive a benefit in the form of reduced some tens of thousands of dollars. It will cost borrowing periods. Their repayment period some of the bigger ones amounts running into continues to fall; it does not rise. millions of dollars. If the Government thinks that is a fair go, then it certainly does not play by the The $30 per ratepayer increase mooted by same rules I do. I find it all quite abhorrent. I wish Mayor Chapman is either a deliberate to represent all of those shires, whether they be misrepresentation or it demonstrates a complete rural shires or town councils such as the lack of basic mathematical skills, which is a Goondiwindi Town Council or, for that matter, the frightening alternative when one considers that Toowoomba City Council, part of which is also in Mrs Chapman was a State Cabinet Minister and is my electorate. I am amazed that the Government now in charge of the finances of the large Pine would have the temerity to come in here and Rivers Shire. introduce such a piece of legislation. Quite The Local Government Association has also frankly, I hope it gets what it deserves at the ALP consistently claimed that rates would have to conference. rise. But how sweet it was to hear Brisbane Lord Mrs WOODGATE (Kurwongbah) Mayor Jim Soorley sinking that ship today on (12.10 a.m.): I certainly welcome this opportunity ABC radio. As the honourable member for to participate in this debate tonight, because I do Barron River stated, in that interview with Anna believe that it is very important to place on the Reynolds the Brisbane Lord Mayor admitted that public record a few facts after all the rhetoric we the performance dividend of the Queensland have heard from members opposite. This will be Treasury Corporation would have no financial somewhat of a change from what certain councils impact on the City of Brisbane. have been peddling all around the country in the My advice to the Pine Rivers Shire Council is past few weeks and the bad and dishonest to forget playing politics and talk to the people at advice from the Local Government Association. the QTC. It should ask them three questions in I also place on record my dismay at the relation to their council debts. Firstly, it should outrageous, outlandish and uninformed ask the QTC what the borrowing period is now. comments appearing as the banner headline in Secondly, it should ask what is the expected today's edition of the Pine Rivers Press, a paper borrowing period after the imposition of a published and distributed in my electorate. The performance dividend on the QTC. Thirdly, it front page headline reads "Stealth tax worry". I should ask whether the council has to increase have not quite worked out where the stealth has its repayments. come from, because everybody in this place It would be too much to expect that the knows about this legislation. We have known political pundits in the Pine Rivers Shire Council about it since it was announced by the Treasurer would take that advice from me—for obvious in last year's Budget. There would not be one reasons. However, I have today spoken to the local authority that has not been aware of this chief executive officer of the council and his legislation since the Treasurer announced it in deputy and suggested to them that the officers last year's Budget. For the life of me, I cannot do just that, that is, talk to the QTC. Let us hope explain the adjective "stealth". they will. They will get quite a different story from The article which follows that headline that which their political masters in the Pine contains comments from the Mayor of Pine Rivers Shire Council are peddling all around the place. 22 June 1994 8466 Legislative Assembly

As a matter of fact, I would suggest to all Gladstone Observer? He said he thought it was a honourable members at least on this side of the disaster for people to protest outside this House that, if they are contacted by their local Parliament House. He would not come down. councillors, they should do what I have done, Those are just a couple of examples of people that is, tell them to forget the politics, keep the from the other side of politics who have had their politicians out of it and get them to direct their say, and we can quote them in answer to some of public servants in the council to speak with the the things said by Opposition members. public servants at the QTC. They should not take Let me talk about that demonstration today. our word for anything. They should keep the What a pathetic performance it was! The only politics out of it and keep it at the public servant positive thing that I could find to say about such a level to get a few facts. pathetic demonstration was what other people I have here a table showing Pine Rivers have said, namely, that at least under this Labor Shire debt and the saving made after the administration nobody was arrested for performance dividend, that is, after sharing the exercising his or her right to freedom of benefit—half to the borrowers and half to the demonstration and freedom of speech. But if the people of Queensland. Pine Rivers Shire garbage I heard peddled out there was evidence Council will save $467,958 in 1993-94 after of free speech—and I was unfortunate enough performance dividend. I ask: how can Pine Rivers to be there when the Leader of the Opposition Shire say that it will have to increase rates when it was speaking—if that is the freedom of speech is saving about half a million dollars this financial that we are getting from members opposite, year? The current debt of the council stands at perhaps we might have been better off in the $67.82m. The gross savings to the council from bad old Joh days, when free speech in a public Government guarantee and QTC performance is place—and particularly against the Government $623,944, less the performance dividend of of the day—was tantamount to treason. There $155,986, which represents a net annual saving was a noted difference between today's to that council of $467,958. So there we have it. demonstration and those of the old street march How can that council justify a rate increase of $30 days, namely, that the speakers and per ratepayer? demonstrators today were not outnumbered by Our friends opposite are fond of quoting the police. people whom they claim are on side politically One could have been excused for thinking with the Goss Government. They are always it was the grand parade at the Brisbane quoting what we are saying and trying to Exhibition. A mayor from a northern city was embarrass us. How do members opposite wearing his chains of office. The Mayor of Pine explain a story that appeared in the Fraser Coast Rivers, Mrs Chapman, was waving horse blinkers Chronicle under the heading "Kleinschmidt aloft, telling anybody who was prepared to listen staying home"? As members would be aware, that this Government was trying to blinker the Fred Kleinschmidt is the Mayor of Hervey Bay. councils. I think there is probably a pun in there According to that article, Fred said he would not somewhere—something about mayors or mares be joining the mayoral protest which had been wearing blinkers. At least one would think that a planned for today. He could hardly be called a Cabinet Minister from the Joh days would know fellow traveller of this Government. As the all about wearing blinkers. Everything in those member for Hervey Bay will attest, Mr dark days was blinkered— blinkered debate, Kleinschmidt was the endorsed Liberal blinkered reason, blinkered performance—the candidate for Isis in the 1989 State election. I list is endless. How can a rates increase be remember it very well. justified by such a person if the council, under For the benefit of members opposite, let me this Government and this scheme, is continuing refer to some of Fred's remarks. He said he to save? would not be joining the planned mayoral I cannot let this opportunity pass without protest. He said that he would not have commenting on remarks made by the Leader of attended, even though he was not available, the Opposition in his contribution to this debate because he believed that councils were still tonight, when he called the Honourable the much better off under QTC borrowing than they Treasurer a benevolent dictator. He said that the were by borrowing through banks. According to Treasurer thought he knew better than local the article, Fred Kleinschmidt said— authorities and was telling the local authorities "However, it is my belief we are still what was good for them. The unmitigated gall of better off even with the performance charge the man! How could he—a former National Party than we were before." Cabinet Minister—have the cheek to stand up in this place and not even blush when he made What did Councillor Corones, the Mayor of such a statement? Everyone in this Gladstone, have to say on WIN TV and in the place—indeed, everyone in this State—knows Legislative Assembly 8467 22 June 1994 that the National Party Government in this State The State currently does not receive turned ministerial rezonings into an art form. I any share of these benefits. The speak from experience, because I was a Pine performance Dividend will return half of the Rivers Shire councillor during those dark days. I benefit to the Queensland Government, knew what was happening. Many people shared which of course is responsible for my view that there was no point in even having generating the benefit in the first place. Half local authorities, as the State Government of the the benefit will still remain with the day—and with the late Russ Hinze as the Local borrowers. Government Minister—rode roughshod over The Dividend is calculated against every council decision as an everyday benchmarks. If there is no benefit, there is occurrence. Honourable members will recall no Dividend." when the National Party Government appointed an administrator to the Gold Coast City Council Finally, I turn to a matter that Opposition because the Local Government Minister did not members conveniently forgot to mention. It just like the way it operated. slipped their minds. The Government's share of the performance dividend will be ploughed back Mr Veivers: What about Lang Park? into services for all Queenslanders. It will not go Where were you there? into anyone's pocket. The Government's share Mrs WOODGATE: I was there. The will go towards more teachers, more nurses, Leader of the Opposition—a former National more police, more health services—in fact, all the Party Minister, as was Mrs Chapman—had the basic items. audacity to call this Treasurer a benevolent Mr Gilmore: What about more roads? dictator—without a blush. Shame! What honourable members opposite are about is Mrs WOODGATE: More roads, all the trying to lift their profiles out there in voter land, basic items, all the things that good Government and they have grabbed onto this issue and has been providing in this State since 2 thrown their support behind the Local December 1989. I am more than pleased to Government Association and any other motley support the Treasurer in the Treasury Legislation lots that have shown that, at the very best, they Amendment Bill. do not understand or, at the very worst, are Mr COOPER (Crows Nest) (12.23 a.m.): running a most dishonest campaign. My advice The time has sailed well past midnight. to Opposition members is that, along with most Approximately a dozen members remain on the people out there in voter land, I will back the speakers list, which is indicative of what the Goss/De Lacy credibility any day against the Opposition thinks of the legislation. Although Borbidge/Sheldon front. quite a bit has already been said, Opposition Very few people have telephoned my office members will continue to express their views. or written to me. It is a non-event, even with the Has the Minister expressed his view on the Bill pushing and shoving that the issue is getting in yet? my electorate from the Pine Rivers Shire Mr Comben: Totally supporting the councillors who have no idea what they are Treasurer. talking about. For the information of the Leader Mr COOPER: In other words, the Minister of the Opposition, contrary to what he stated in will not stick up for local government. He will do his speech, I point out that it is not—read my lips, what everyone else is doing. Most Government "not"—compulsory for councils to borrow members spent most of their time bagging local through the QTC. It is good sense. My last bit of authorities. The member for Kurwongbah once advice for the Leader of the Opposition is, "Quit was a councillor. It is amazing how quickly they while you are behind." change caps. At one stage, she supported local Most people do not even know what a government. Now she goes the other way and performance dividend is. If I am asked that bags it. question, the best answer that I can give is the I heard the honourable member. It is on the one that the Treasurer gave when he was asked record. I heard her use words such as that question. For the benefit of honourable "dishonest", "wrong" and "treason". The members, I quote the Treasurer's answer— honourable member accused local government "Queensland's financial strength people of treason. They are the elected attracts an AAA credit rating, enabling the representatives of the people. She bagged State to borrow at cheaper interest rates. Yvonne Chapman who was recently Participants in the QTC have benefited democratically elected by the people in Pine dramatically by borrowing through the Rivers. The honourable member bagged her. Corporation and utilising our AAA credit She accused those people of treason. I am rating. saying this because a whole lot of material should 22 June 1994 8468 Legislative Assembly be put on the record. Every single Government bagging local government, because their words member who spoke in the debate has bagged will come back and bite them. They should stick local government. Government members have around. We have the time. We will wait for the bagged councillors. All night, they have done it. election. Many things have been said and I know All of those speeches will be circulated around that honourable members are engaging in a fair the State. Local government representatives are amount of repetition. However, Opposition representatives of the people. members want to make sure that we have Mrs WOODGATE: I rise to a point of expressed our views very clearly and decisively. order. The honourable member is saying that I As we have said so many times during the bagged councillors. I find that offensive. I debate, we are talking about new taxes. We are bagged the Local Government Association. I ask talking about retrospectivity. We are talking about that he withdraw those remarks. I do not bag local penalties for people who are supposed to be councillors. performing—performance dividends. If a company performs, the Government taxes it. Mr DEPUTY SPEAKER (Mr Briskey): What sort of sense is in that when the Order! The honourable member finds the Government says that it will give the benefit back member's remarks offensive and asks for them to to the ratepayers? It will not. The Government will be withdrawn. take it from them and make matters more difficult Mr COOPER: In accordance with the right across the State. Standing Orders of the House, I withdraw. Earlier today, the new member for Mirani However, the honourable member did use those made his maiden speech. All Opposition words. She did not deny it. The words were used members and, I am sure, a few Government by so many Government members. All day, they members recognise that it is a major event. As a poured buckets over local authorities. There is rule, one only gets the chance to make a maiden no question about that. Those speeches are on speech once. I place on record the good wishes the record. Government members can ask me to of those of us here. We recognise that the withdraw all they like. They cannot withdraw the honourable member is one of 89 representatives words from Hansard. They will not be able to do in this State. It is something of which members that. can be extremely proud. I wish the honourable Mr CAMPBELL: I rise to a point of order. I member well in his future here. He will be here for want it on the record that they have been a long, long time. I look forward to that. dishonest. I turn to some remarks made by the member Mr DEPUTY SPEAKER: Order! There is for Brisbane Central. He loves having a bit both no point of order. ways. He said that he loves to cuddle up to Bill Mr COOPER: I thank the honourable Ludwig and those sorts of blokes. He is welcome member. Would any other member like to stand to do it. He should go for it hammer and tongs. up and say the same? Would Mr Beattie, the On the one hand, he cuddles up to him. The member for Brisbane Central, like to add his honourable member will need to do that, words to those of Mr Campbell, who accused all because he was getting ready to set him up and local authority people of being dishonest? say, "Bill, you are wrong." Mr Campbell: On the record. Mr Beattie: I did say he was wrong. Mr COOPER: It is on the record. Let the Mr COOPER: Yes, the honourable record show that the member for Bundaberg and member did. He said that Bill was wrong and that all of his cronies, his Labor mates, have poured Soorley was wrong. The member for buckets all over local authorities. Government Kurwongbah said that on radio today Mr Soorley members will remember that members of local said that there would not be any impact, whereas authorities are the ratepayers' representatives. a day or two ago he said that it would impact to Ratepayers have votes. At the State election the extent of $18 a ratepayer. He is trying to have next year, those speeches will be distributed a little bit both ways. throughout the advertising media and the The member for Kurwongbah started to bag newspapers. What Government members think the Mayor of Pine Rivers for saying that the of ratepayers and local government will be impact could be up to $30 a ratepayer. If the Lord spread far and wide. Mayor of Brisbane says that it is $18 for now, as Government members have been around this tax grows and grows and grows, which it will, long enough to know that local governments are of course, it could easily reach $30 a ratepayer. In closest to the people. People have a very close time, we will see who was right. rapport with local government. It is probably the The honourable member also mentioned best form of Government that there is. the AAA rating that "the Government" has. It is Government members should not go around not the Government at all; it is the State of Legislative Assembly 8469 22 June 1994

Queensland that has the AAA rating. mayors and councillors, who had come from Government members should not forget that the throughout the State, represented a broad National Party Government had balanced cross-section of political parties or apolitical Budgets as long as a country mile. Year after year representatives, and many councillors are after year, the former Government had AAA apolitical. They are serving the ratepayers and ratings, but we did not tax people just because when they are sufficiently concerned to come to we had AAA ratings. Brisbane and demonstrate, quite obviously they The Government thinks that, because the must have a very good reason for doing so. They State is successful, it has the green light to go are very responsible people. We saw a ahead and tax. That is not the right way to do it. A cross-section of councillors such as Tony need to tax continually should not arise. The Mooney and Ron McCullough from Mount Isa. member for Bundaberg used that beautiful word Jim Soorley sent his apologies because he had that he loves so much. He said, "This is socialism to go to Indonesia, and as other members have at its best." That is on the record. He loves said often tonight, we had Bill Ludwig. Of course, socialism. He loves taxing—if it moves, tax it! The Bill will be making his presence felt at Labor Party Government reckons that it can spend better preselections and the Labor Party conference. than local authorities can spend. I will have local However, the main point is how the ratepayer is authorities any day for mine. going to respond when it comes to the election to be held about this time next year. That is when Mr Davies: You can resign. the Labor Party is really going to feel the effect. Mr COOPER: The member will get his Local authorities are not going to forget about chance. He is right. It will affect people this. They are going to inform their ratepayers across-the-board, especially the little people of throughout mail-outs and the close contact that this State—the people who the member says they have with those people. They will be that the Labor Party defends. However, informing them of the truth of the matter, whenever it gets the chance, it sinks the boot in because one knows it better than they do. They even harder. can see what is coming. They can see that the This legislation gives the lie to this ratepayers, the small people, are going to be Government's assertion of no new taxes. It has hurt. Those people are going to respond the been saying that for five years and all of us know only way they know how—the most effective way that there have been new taxes, there have that they possibly can—and that is through the been improved taxes, there have been ballot box. increased taxes. As was said today, since 1990, As I have said, local government is the level $1 billion extra has come out of the pockets of of government closest to the people. I have had Queenslanders. That is positive proof that the a wonderful rapport with it. I spent about 12 years Government is an expert at taxing and, again, it is on the Bendemere local authority. I am not like the people who are the losers. The Government some Government members, themselves former seems to want to soak, soak, soak people, councillors, who have turned turkey and given especially those people who are finding it so local authorities a bagging. I enjoyed every hard to pay, and then it returns this pittance after moment that I spent in local government. It gives its Labor mates have had their cut. That is the one a very close affinity with the people, which is way it is going to be. If this Government does what we are supposed to be all about. Now, anything well, it is looking after its Labor mates. Government members want to turn around and There is no doubt about that. sink the boot into them. It was nice to see some Of course, the protest meeting, which was of the councillors who represent areas in my held today, has been bagged by Government electorate. Of course, if I mention their names, members. The mayors are very responsible those vindictive Government members will get people and, of course, Government members going and bag them. The mayors of those were hiding behind pillars. We saw the member councils who came to Brisbane today will be for Kurwongbah peeping around corners and criticised so, on this occasion, I will not mention pillars. The member for Gladstone was standing their names. I wish them well. However, I can tell on his own until we spotted him, then he ran. His them one thing for sure, and that is that the face was red as a beetroot. He said, "Let me out Opposition side of the House will be supporting of here. They have seen me, they have seen them every inch of the way. me." He could not stand it. The people of The Government is going to have this Gladstone will know all about it. We will make sure legislation proclaimed, unless Bill gets in there that the people of Gladstone are fully informed and tries to prevent that. The Government does and briefed on what happened. not have to go ahead with the legislation, it could Although Government members have been just leave it lie on the table and eventually it might trying to bag those people, I point out that those fall off. That would not be a bad idea. However, I 22 June 1994 8470 Legislative Assembly guess the Government will go through with it Bill Ludwig has described this legislation as because it needs the money. As has been said a poor decision, and one that people will not tonight, the Government has cleaned out just forget. I can only agree with him on that point, about every hollow log. The Opposition told the because they will not forget. The member for people that the Government would do that, and it Callide covered the matters very has done that. Now it needs more. It is really a comprehensively in her speech. She has said case of more, more, more, because the that the dividend is retrospective. It is not just a Government needs to have that stuff to feed its tax on new loans; it is a tax on old loans as well. spending habit. It just loves to spend endlessly, We know that. However, it is also open-ended. even though the people do not receive the We can see that rate increases are inevitable. benefit of that spending. It does not get through Councils will prove that as time goes by. to the sharp end. We see that it does not get We have seen the dreadful effect of through to provide the services that the people cutbacks in services in country towns, such as really need. local banks moving away. This legislation will We have seen the services in country towns impose additional pressure on the banks and throughout the State severely curtailed. Now, that will continue. If councils have to pull away the Government says that it is going to tax them their support from local banks, in most cases that more so it can try to replace those services. It will be the straw that breaks the camel's back, and never happens that way. Unfortunately, the those banks will have to close. It is happening Government has to use blackmail in order to get now in so many of those areas throughout the councils to comply. Why on earth can the State. Someone once said, "Forgive them, they Government not give councils the opportunity to know not what they do." The Government does have their choice. The Government says that it not realise the damage that it does until it is too has no choice. The councils have no choice at late. Then it spends the rest of the time going all. They have a loaded gun at their head and around the State apologising and saying that it they know damned well what the Government will has not been very good at it—"We are sorry do. If they do not comply, the Government will about that"—after having wrecked the just pull the trigger. It is all written in the infrastructure of so many towns and communities legislation. The Government has to use blackmail throughout the State. The Government wrecks to get councils to heel, just as it has done with the infrastructure, destroys jobs and removes amalgamations. We know that that is not the end the Government services that have been put in of that matter, either. The Minister has just place to keep the infrastructure together. If the started by forcing people, against their will, into Government starts removing services those amalgamations. We know that that will spread communities face only one prospect, and that is throughout the State as time goes by, just as this collapse. That has been happening. The Premier tax will increase as time goes by. himself went out and said, "I am sorry, we have This is just the start. Government members not done much of a job." Government members say that it is only a pittance, that it is not going to ought to keep on apologising because the bring in much. For starters, I call $8m a fair bit. In people are going to repay them in kind. years to come, when the Opposition returns to I have mentioned the other funds that the power it will repeal the legislation. Hopefully, that Government has raided such as the Workers' will be sooner rather than later. The Opposition Compensation Fund and the Auctioneers and has said that it will knock it out, and it will. I would Agents Fidelity Fund. The Government is also not bank on this legislation remaining on the bleeding Suncorp and the QIDC. More and more book for too long. money is pouring into the system. Why on earth In addition, as has been pointed out already, can the Government not get out of the syndrome the level of taxation for other statutory bodies is of spending, spending, spending? The really going to increase. However, in the case of sad and unfortunate part is that the people do Government owned enterprises, the not receive the benefits. The services are not Government is going to tax them for starters by getting through. Again, I think that Government asking for a dividend of anything up to 11 per members will find that out at the next election. cent. It is then going to tax them again to the That is the only language that Government tune of company tax. Now, it is going to put this members understand. third tax on them. So one can see that the cost is I know that the member for Barron River read going to be astronomical. Only one person can from a Local Government Association of pay for it, and that is the taxpayer. If anybody is Queensland briefing note. It is easy to read going to get the benefit out of it, it is going to be selectively. She stated— the usual Labor mates with their snouts in the "Furthermore, the State Government trough. has lifted the former prescribed maximum Legislative Assembly 8471 22 June 1994

rate the private banks could charge retrospective tax, that members opposite seem Councils." to be completely misreading. At the beginning, the article stated— Mr LINGARD (Beaudesert—Deputy "As a consequence of the actions of Leader of the Opposition) (12.43 a.m.): Ordinary the LGAQ, not one of the QTC client Queenslanders and Government members Councils have yet had the Performance should feel an icy chill over the Goss ALP Dividend imposed upon them. On the other Government's assault on democracy. Ordinary hand, those five Councils who have loans Queenslanders and Government members approved through the private banks are should wake up, because at the heart of the paying the fee on new borrowings. Since Treasury Legislation Amendment Bill is cold, March of this year, some 23 Councils have hard cash. It is a part of a cash grab that has been been effectively forced to leave their private going on for five years, a cash grab which banks because the State Government has includes continual asset sales through the delayed loan approvals for up to four Department of Administrative Services. The months, while approving QTC loans on the Government has been selling whatever assets it spot. Furthermore, the State Government possibly can as part of a cash grab—to grab has lifted the former prescribed maximum whatever cash it can. rate that private banks could charge the Members opposite realise that this is part of Councils." a cash grab. It is an extremely unpopular There are many similar examples throughout this measure, but members opposite know as well as article. In the press release put out by the I do that they cannot pull out of it because it is Treasurer on 19 April 1993, he said— part of a cash grab that they need to prop up their consolidated revenue. If the process of grabbing "A key issue to be addressed in that as much cash as possible means that the paper"— Government has to trample legally binding loan that is, the new paper which examined the tax— contracts through democratically abhorrent "will be strategies to get 100 per cent retrospective legislation, it is prepared to do it. participation of local authorities in the QTC." The fact is that the Government is all too willing to use its Executive muscle in order to change the Of course, the strategy is just to hold a gun to rules to favour itself and protect itself from legal their heads and make it impossible for them to challenge in the High Court by local government. utilise their local banks. In its conclusion, as quoted by the member for Barron River, that Not only is the introduction of the article stated— performance dividend on local council borrowings a new tax; it is also a dishonest tax. "However, it is possible that, given The Government is hiding behind the skirts of QTC's history of out-performing both its local authorities in order to levy its benchmark and the other State central euphemistically named performance dividend. It borrowing authorities, Councils could incur is a deceitful tax. It is a tax accompanied by a the cost of the Performance Dividend and $40,000 propaganda program to deliberately still reduce the current expected borrowing mislead taxpayers and ratepayers about the term without any increase in existing facts. It is accompanied by bully-boy threats and repayments." standover tactics in a thinly veiled and crude At the beginning of that paragraph, it was attempt to gag the critics. The voters of this State stated— are acutely aware of the Government's "Based on this assessment, if Councils protectionist, deliberately deceptive and money- are presently receiving all of the benefits of grabbing habits, and they are not about to stay borrowing through QTC, they must by silent on the stealth tax. definition incur extra repayments by the From what went on outside this House introduction of a Performance Dividend." today, the Government has seen how very So either way councils lose. Right across- unpopular this is. But the Government and the the-board, the very eminent people who made Treasurer are locked into a cash grab. They these recommendations and reports to councils cannot get out of it, just as they cannot get out of have virtually guaranteed that there will be a big the asset sales throughout this State in order to penalty on councils. I want to reiterate that this grab whatever cash the Government needs. I side of the House gives its absolute support to heard the member for Kurwongbah talking about the local authorities, to the ratepayers and to the service level and the delivery of services. I will talk voters, because we know—and they know—that about one place where there is blatant and they are being slugged by a new tax, a absolute collaboration between this Government 22 June 1994 8472 Legislative Assembly and the unions and this Government and the The $70m raised in the assets fire sale last media. year was 32 per cent above the budgeted This Government came to power in 1989 on estimate and brings the total value of real assets a class size issue. How many teachers has it got sold by the Goss Government to nearly $300 now? In 1989, class size was the Government's billion. After the 1994-95 Budget, that figure will big issue. Where has class size been mentioned rise to $400m. Similarly, we have the grab for in the Budget? In the Government's education cash assets, and this legislation is part of that booklets there is not one mention of class size. cash grab. Hollow log raiding is an ongoing and Members of the Government know as well as I do insidious feature of the Goss Government's fiscal that there has been blatant collaboration fiddling. Since coming to power in 1989, the between the union and the Government in Goss Labor Government has burnt $1 billion of enterprise bargaining. The Government has told Queensland's cash reserves, built up over a the unions, "Keep quiet about class sizes." number of decades by the former Government. Mr SPEAKER: Order! A number of pieces One need only look at the Government's of legislation are being amended tonight. There scandalous record in relation to snatching funds is nothing in that legislation about class sizes or from every contingency account that it can get its enterprise bargaining. I suggest that the member hands on. We mentioned the $86m from the gets back to the Bill. Auctioneers and Agents Fidelity Guarantee Fund; $20m from the dismantled Building Mr LINGARD: I was responding to a Society Contingency Fund; $40m from the comment by the member for Kurwongbah about Ambulance Trust Fund; $126m from the Motor service levels. As I am saying, there was blatant Vehicle Insurance Nominal Defendants Fund; collaboration. Clearly, the Government has and $80m from the Workers Compensation forgotten all about it, because it is not giving an Fund. Let me relate that money to this Bill—— improved level of service. The money raised through this legislation will not go back into the Mr SPEAKER: Order! I suggest that the provision of services. There has been blatant honourable member gets back to discussing the collaboration. What else could we expect from a Bill. I have been extremely tolerant. The member blatantly cash-addicted Labor Government? has the right to make a case about asset sales, There are literally millions of dollars worth of cash- but he is speaking about nothing else. I suggest grab precedents littering the term of this Goss that he gets back to the Bill. If he does not, I will Government, and this is another one. ask him to resume his seat. The fact is that the Goss Government has Mr LINGARD: These are not the actions of had its hand in the till since day one. It has an honest and trustworthy administration. grabbed every asset that it can sell. It has made Clearly, I will demonstrate how this is similar to every cash grab that it can. One need go no what the Goss Government has done with the further than the 1994-95 State Budget, which is Workers Compensation Fund. It is worth closer based on massive asset sales and mortgaged examination, because the similarity with the infrastructure. These are the shaky—or should I current Bill is striking. The underhanded tactics say shady—foundations of Labor Government are the same. The headline in Business Budgets. The ransacking of the State's real asset Queensland in August 1993 stated "New base, particularly freehold land sales, will net legislation tries to hide the State's secret $92m in this year's Budget. Asset sales and cash tax"—and this clearly is a secret tax. The eerie grabs are the reason for the introduction of this similarity with today's Bill and today's headlines, new legislation. It is unpopular legislation, but the which talk of stealth taxes, cannot be ignored. Government cannot pull out of it. The fact is that deception and misrepresentation is a hallmark of this Government; it always has The sale of freehold land represents the been and always will be. second largest cash source for this Labor Government after straight cash borrowings for In December 1992, the Queensland consolidated revenue which amount to Confederation of Industry objected to the Goss $140.7m. Police stations have been targeted for Government's excessive raiding of the Workers disposal in this year's cash grab of assets, as are Compensation Fund to pay for Government the rail properties and properties in the Health, services, which it argued the Government had no Education, Emergency Services, Primary provision in law to undertake. The confederation Industries and Justice portfolios. This year's argued that the Government siphoned an asset liquidation will net $92m—nearly 33 per unparalleled $13m out of the Workers cent more than was ripped out of the State's Compensation Fund. asset base in the 1993-94 year. It follows a Mr SPEAKER: Order! The member will spiralling trend. return to the contents of the Bill, which is about performance dividends, offshore banking units Legislative Assembly 8473 22 June 1994 and Government-owned corporations. That is responsibility—jobs such as roads, water and the member's final warning, or I will sit him down. sewerage infrastructure and public transport, to Mr LINGARD: The parallels with the name a few. This begs the question of where the performance dividend are obvious. Local money in the State's record-spending Budget government is the new entity forced into the tax- ends up. It certainly does not end up at the collector role. The rule of thumb guiding moneys service level at which local government operates. ripped from workers' compensation is the whim Under this Labor Government, the cost to of the Treasurer and the degree of red ink the local government of compliance with State Government finds itself awash with from Budget Government regulations has skyrocketed. The to Budget. So, too, the performance dividend is very premise by which the Government is raising a bottomless taxation pit for the Government. It is the dividend goes against its own policy subject to the Treasurer's whim, and we should regarding raising debt. The Government's stance not delude ourselves that the Government will on debt is that it should be raised only against not fiddle with performance criteria and economic infrastructure. In contrast, this Bill benchmarking figures to suit. After all, the whole effectively gives the Government a mandate to dividend is based on Treasury calculations—yet raise the debt levels of local councils in order to another mysterious Treasury formula created by underwrite recurrent spending by Treasury. the Government to suit the Government. There The similarities do not end there. In protest is no reason to believe that it will not continue to at the Government's systematic draining of the do so in the future. Workers Compensation Fund, for which the It comes as no surprise to learn that local Government had no legislative mandate, councils believe that rates will have to increase to business representatives threatened to take the service the new Treasury tax. Whether it is Government to court. It was as a result of the tacked onto the end of the loan or whether threat of court action that the Government councils have to be upfront with the money, the introduced legislation to retrospectively effect is still the same. Money that should be legitimise its actions, effectively covering its hide. used for the provision of local government As the Government is acutely aware, the Local services and infrastructure will end up in Treasury Government Association has also threatened to coffers being wasted by this big-spending, big- challenge in the High Court the State promising, lousy-on-service-delivery Labor Government's attempts to impose a new charge Government. As I have mentioned, service on council debt. delivery is not part of this Government's role. This is not a popular Bill—and that has been Some of its blatant collaboration illustrates that illustrated by the people who gathered outside clearly. the gates of this Parliament today—but clearly The dividend will come out of budgeted this Government and its members are locked into loan servicing arrangements that councils already money raising. This year, the Department of have in place. If they cannot manage to Administrative Services will sell $92m worth of accommodate the payment, it is obvious that assets. This Government indulges in a cash grab council services or infrastructure maintenance at every opportunity. Wherever possible, the and development will suffer, or the Lands Department makes cash grabs and consumer—that is, the ratepayer—will end up charges for services on a user-pays basis. Every paying this secret, indirect tax by the State department has been told to undertake as many Government. I hope mayors carry through with asset sales as possible in order to grab cash at their promise to clearly identify the State every turn. That applies also to the DPI. Clearly, Government impost on rate notices. Every this is yet another cash grab by this Government. household in the State will see the Goss It is locked into this measure. The Government Government for the money-grabbing knows that it is unpopular, but it must go ahead Government it is. to prop up its consolidated revenue. The Treasurer accuses local authorities of Mr LAMING (Mooloolah) (12.57 a.m.): I rise running up huge debts and living off the good to speak on the Treasury Legislation financial standing of the State Government. This Amendment Bill. The Opposition has been untruth can be added to the list of untruths that accused of concentrating on the performance the Treasurer is peddling around the State. It is dividend. We do not apologise for that. That is true that local government in Queensland has the provision of this legislation that we find rather significantly higher debt ratios than local odious. I would like to refer to some of the authorities in other States. As has been outlined comments that have been made this evening by repeatedly by local councils, this is because local Government members. The member for government in Queensland picks up the tab for Mundingburra said that councils are benefiting jobs for which Governments in other States take from the QTC's high credit rating. I say that this is 22 June 1994 8474 Legislative Assembly incorrect. I suggest that the QTC is perhaps Government members say that rates will not benefiting from the excellent loan repayment increase. I know whom I believe! record of Queensland's councils. The member I also table this letter to the Treasurer. It for Greenslopes claimed that rates do not have to states— increase and that this is just an extension of council loans. That is a very misleading "Council has instructed that I advise statement. This is a new tax on the next you of the effects of your proposed generation that was not anticipated. performance dividend on Queensland Treasury Corporation borrowings as Opposition members: Free money. calculated from the advice contained in your Mr LAMING: Yes, that is right. letter. Council has calculated that the The member for Bundaberg said that there additional costs to Maroochy Shire will will be no increase in rates. That is also incorrect. amount to some $300,000 per year on In a moment, I will cite evidence to the contrary current borrowing levels on the basis of contained in some letters that I have received 0.25% of the current indebtedness per from a couple of local authorities in my area. The annum. It is understood this amount would member for Waterford accused us of being be charged against Council's debt pool horrible political opportunists. I noticed that he without any modification to the annual did not come downstairs at 2 o'clock this repayment to be made by Council." afternoon and tell the gathering of Queensland Further on it says— mayors that they were horrible political "If Council were to elect to continue to opportunists! Instead, the member waited until endeavour to extinguish the debt as if no 10 o'clock this evening in this Chamber to make such fee had been added, then it would that accusation. need to raise an extra $300,000 per Mr Beanland: He had his tail between his annum"— legs yesterday. I think there are some more works that could be Mr LAMING: I take that interjection. In carried out on a part of the Sunshine Coast in common with other Government members, the Maroochy Shire that add up to more than half a member for Waterford had his tail between his million dollars. The letter continues— legs at that time. Now who is a political opportunist? "to pay the Queensland Treasury Corporation. This will equate to an extra During this debate, we have seen a fairly $7.25 per property per annum on a net lacklustre performance from Government basis or an increase of 2.5% in the minimum members. I do not believe they had their hearts rate. in this debate. They did not believe what they were saying. Only a couple of members tried Council considers this charge to be a valiantly. The member for Brisbane Central tried most unreasonable impost and wishes to very hard, as did the member for Kurwongbah, protest in the strongest possible terms at but they were still wrong. I said that I would cite the Government's action in this regard." some examples of why Government members A Government member interjected. were wrong, and I will do so now. I have here a Mr LAMING: I will take that interjection. letter from the Caloundra City Council. I will not That is the Shire Clerk of Maroochy Shire read it all, but I will table the letter. I asked for the Council. He also wrote a personal letter to me, town clerk's opinion of this tax. He said— which states— "The calculation of the annual increase "I have enclosed a letter recently in the interest bill as a result of the levy on forwarded to the Treasurer of Queensland, borrowings is $225,000." Honourable Keith De Lacy, protesting at the Imagine what $225,000 a year could do for the Government's action in this regard. Will you ratepayers of Caloundra! The letter continued— please lend whatever assistance you can to "As there are approximately 28,000 the campaign to have this unjustified and assessments, the average per ratepayer . . . untenable decision by Cabinet reversed in would be $8 per property." the long-term interest of local government in Queensland." That letter is signed by the Town Clerk of Caloundra, John Smith, who has just been So there is the proof. Members on the awarded the public service medal for his years of Government side have been saying that there service in that position. I congratulate John on will be no effect and that rates will not go up. Mr being awarded that medal. The Town Clerk of Speaker, who are you going to believe—these Caloundra says that rates will increase. people opposite who do not know anything, or two of the most experienced shire clerks in Legislative Assembly 8475 22 June 1994

Queensland? I know whom I would believe, and I hello to the people outside. If they have know whom these gentlemen and ladies will confidence in what they believe, if they have the believe, that is, those experienced councillors. I conviction of what they are saying, surely they would like to table those letters. would have gone out there and spoken to them, Government members interjected. but, no, they ran away. Mr LAMING: Other mayors have made Mr Pearce: It was a plant. their own comments on the effect of this new tax Mr STEPHAN: Where is the plant? Mr on ratepayers and there was quite a gaggle of Ludwig was the plant? I do not believe he would them in the newspaper over the weekend. I will have been a plant at all, but I feel sure that he mention just a few. Mayor Gordon White stated— would be pleased to hear the honourable "But there's only one place it can come member's comment. out of and that's rates." Mr SPEAKER: Order! The member for Mayor Tony Mooney stated— Fitzroy will interject only from his correct seat. "The Queensland Treasury is putting Mr STEPHAN: Do not worry about it, Mr more and more burdens on local Speaker, I can hear him. government." Mr SPEAKER: Order! I suggest that the Mayor Dave Underwood was quoted as follows— member for Gympie listen to my ruling. "Cr Underwood said local government Mr STEPHAN: The Government has was being used as tax collectors by the shown no confidence at all in what it claims to State Government." believe. If its members did, they would have been out there talking to each and every one of Mayor Gary Baildon stated— those councillors, particularly the mayors, and "We said we would have to consider taking the opportunity to point out to them that reducing services, increase rates or cut they were wrong and trying to convince them capital spending." that they should not go along that track. But, no, Mayor Bob King, a former well-respected we did not see them out there. We saw a couple member of this House, said— of them on the veranda, but as soon as the cameras turned in their direction, off they went ". . . but all they are doing is taking one step and we could not see them for dust. That is behind councils as their camouflage to tax hardly the action of a confident Government. the ratepayer." The member for Mooloolah cited some Those are the comments of some of the figures about some of the extra costs that are leading mayors in Queensland. That is what the involved. My council up in Gympie has not mayors say. We have heard what the quoted such a high figure; it is talking about Government members have had to say. We know $35,000. I am not too sure what the Mayor of whom we would rather take some notice of, that Noosa said it would cost them—a part of Noosa is, the mayors of Queensland and their shire comes into my electorate—but I know when I was clerks, because they have looked at this speaking to him the day before yesterday, he proposal, they have seen how it is going to affect was making it be known that he was going to their ratepayers, and they know as well as we do come down here with the idea of protesting that it is bad legislation. It will come back to haunt about this imposition on local governments right this Government and every member of this throughout the State. These people did not Government, whether they spoke on it or come down here because they wanted a trip not—particularly the ones who were hiding in the away from their own area; they came here cloisters. We saw what they did when the mayors because they are convinced that the Treasurer from their electorates were outside this place. and his Government are following the wrong road They did not even go down and say, "Welcome and hope that they will see the errors of their to town." They were too frightened to do that. ways. Mr STEPHAN (Gympie) (1.05 a.m.): It I notice also that the member for Chermside gives me much pleasure to join the debate and made the point that the Labor Party tolerates to support my colleagues in endeavouring to varying points of view, but I do not know to what point out to the Government the folly of what it is extent. I would say that they do so at their peril. doing. I took note when the member for Brisbane After next week, we will know just how tolerant Central said earlier this evening that he likes to they are. cuddle up to Mr Ludwig, but I did notice that he was not cuddling up to Mr Ludwig this afternoon. Mr T. B. Sullivan: Very tolerant indeed. As a matter of fact, I did not see any of the Labor Mr STEPHAN: I notice that the members in this House going out and saying honourable member does not have too much 22 June 1994 8476 Legislative Assembly hair on his head at the moment, but we will see if statement was consigned to the dustbin, it he has any at all after next week. He is still trying reappeared. to sell this $40m rural package. He started off at Mr T. B. Sullivan: Give us another cliche. $46m, but even the Treasurer would correct him. He is now admitting that $46m is not the correct Mr STEPHAN: The $8m would not be a figure, and that he is using the same money two bad cliche. or three times over. He has actually admitted that Mr T. B. Sullivan: Thirty-two cliches in what Government members are trying to say is eight months. that new funds are down to around $30,000, but a lot of that money is not going into the rural Mr STEPHAN: The mushrooms and the package—much as we would like to see it—and dustbins are obviously worrying the honourable that is certainly not going to do very much at all member. for the rural areas of Queensland. In introducing this measure in 1993-94, the If one looks at the Treasurer's State Government also indicated the capital second-reading speech, one sees that he went guarantee fee equivalent to the performance out of his way to point out that the purpose of dividend to be levied on all new debt borrowed this Bill was to enable the State to impose a tax by councils through the private banks and, regime—to impose a tax. He stated— moreover, that Cabinet determined that councils "It is also important to note that could only borrow through private banks if they participation in QTC is to continue to be convinced the Treasurer that it was in their best voluntary. However, in respect of new interests and subject to that particular veto. borrowings or refinancing transactions, Other members have mentioned that it is borrowers seeking financial accommodation not only the Local Government Association that outside QTC will be required to demonstrate is being affected. This legislation will also affect that the alternative arrangements are statutory bodies in this State. This is of great superior to those on offer from QTC." concern to me. My colleague the member for I guess that Caesar himself will decide whether or Toowoomba South made a comment about not it will be superior. I hardly think that would be statutory bodies. He listed the borrowings and the decision of a very confident member. Why the number of statutory organisations that could not let them make their own decisions? Why not be affected. This legislation leaves a lot to the let them do what they want to do? They have imagination. I am concerned about what the extra been doing that very successfully for a long time costs will be for many of those bodies. Members with the support of the banking fraternity. Many know quite well that the Queensland Electricity areas rely on local authorities and their borrowing Commission is being used as a tax gatherer for programs to keep the banks alive in those the Government. country areas. I wonder how much the Mr Horan: A milking cow. Government cares about banks in country areas. Mr STEPHAN: As the member says—a Let me consider the background of milking cow. It does that very well. attempts to bring this particular tax into vogue. In 1991, the Local Government Association stated Mr Veivers: If the cow has nothing to eat, that an attempt was made at that time to impose a it is going to end up with mastitis. tax on council debt. The tax then was called a Mr STEPHAN: Hopefully, if it is going to capital guarantee fee, and it was to be levied at get mastitis, it will get it fairly soon, otherwise the rate of one half of one per cent. That was there will be no cow left. I am concerned that the given the quick flick. Government has been taking a considerable amount of money from the QEC, and now it has In April 1993, the Treasurer announced that thought of another way to take money from the the tax had been consigned to the dustbin. It did QEC. not take long to make its way out of the dustbin and into this particular Bill. We should be able to I also refer to the Mount Gravatt believe the Treasurer when he says that Showground Trust and the method by which the something has been consigned to the dustbin. Government taxes local show committees, which But obviously, whatever is consigned to the put in a great effort in organising various shows dustbin grows like mushrooms when it is kept in and activities throughout the year. I have some the dark. This Government tries to keep knowledge of show societies and the difficulties everyone in the dark. of keeping them afloat. They certainly need assistance. They do not need another millstone In the 1993-94 Budget, the tax appeared hung around their necks by the Government, the again as a performance dividend. That is what we Treasurer or anybody else. are seeing tonight. Two months after that Legislative Assembly 8477 22 June 1994

As to water resources—the mind boggles. answer, something must be wrong with the We are waiting with bated breath and expectation legislation or the motives behind the legislation. as to what the Minister for Primary Industries will Time and time again, Opposition members do with water charges. I wonder what effect it will have said: why are we doing this to our people? have on our primary industries when he comes We are doing a most peculiar thing. The question up with those great ideas and decisions that we must be asked—— know he is capable of making—and not with any great feeling, I am afraid. The Minister for Primary Mr De Lacy: Nobody in the Opposition Industries has the ability to place imposts on the knew that the legislation had been introduced rural sector, and it then has to carry them on its until it was there for more than a week. back. Mr GILMORE: Could the Minister give me Throughout the Explanatory Notes, that in writing? He seems to be an expert on what mention is made of the Treasurer's discretion to happens on the Opposition side of the House. impose a guarantee fee. Mention is also made of Mr De Lacy: The Leader and the Deputy the estimated cost of a Government Leader didn't know. implementation. The Explanatory Notes state Mr GILMORE: The Minister is not an that there will be no cost to the Government. In expert on how the people of Queensland feel one particular instance, the net revenue from the about things, so I am quite sure that he does not imposition of the performance dividend will be know what happens on the Opposition benches. $25m per annum. That is not coming out of the We must ask: what are the benefits from the Treasurer's pocket; it is coming out of the legislation? Why is the Government doing this? pockets of those people about whom I have What are the benefits for the Government? Out spoken previously. of the $10,000m in the latest Budget, this The net revenue from guarantee fees on exercise will raise $25m. It is an extraordinary statutory bodies has been mentioned. Clause 7 amount of angst to go through for a small amount empowers the Treasurer to impose a fee for the of money. However, it is immensely important to provision of a guarantee to statutory bodies. the people in local government and to the Again, the Treasurer has the ability to impose a statutory bodies throughout the State. fee. That sums it all up. What benefits flow to Queensland? This is My colleague the member for Whitsunday is little more than a new tax. There is no question sitting beside me. In this instance, I cannot claim about that. It is a tax by any other name—or a her as a colleague when Government members rose by any other name, as Shakespeare once are trying their darnedest to be difficult. said—along with the dividends that are being Government members have brought on this long charged against statutory bodies, the taxation night of debate. The Opposition cannot allow a measures against statutory bodies and the new Bill like this to come into this place without finance tax. The editorial in last Saturday's endeavouring to convince the Government that Courier-Mail made a considerable point about the it is on the wrong track. way in which the Government has gone about Local government representatives travelled collecting new taxes. The words that it used were long distances to come here today. They stated "while maintaining the fiction of being a low-tax that they were disappointed that not one State". Government representative or one Government Let us examine that. For a start, why does member saw fit to go out and say hello to them. I the Government choose to tax local would have thought that the Government would government? Local government is an arm of the have been there with bells on trying to convince Government. It is not a competitor in the those people, whom it claims to be its friends, workplace. It is not a competitor for dollars. It is that they are on the wrong track. Apparently I was not a competitor for services. It is a partner with wrong. the Government in the provision of services to Mr GILMORE (Tablelands) (1.20 a.m.): the people of this State. The member for The legislation is quite extraordinary, but it is Western Downs pointed out that, for five years, nothing more than what we would expect from very little has been happening at the sharp edge the Treasurer. It is very little more than another of service provision in this State, and it is getting snatch and grab raid on the pockets of the worse. The one level of Government that people of Queensland. It is quite extraordinary. provides services without funds being soaked We must ask why. I have always been of the up by the bureaucracy is local government. It is opinion that the best test for legislation is when a the most efficient form of Government. It is the reasonable person asks: why do we need the closest to the people. It spends its money at the legislation? Why are we going about it this way? If behest of the people rather than telling them that reasonable person cannot get a reasonable what they want. Yet, the Government chooses to 22 June 1994 8478 Legislative Assembly once again put its hand in the pocket of local Downs—of course the answer is, "No, those government and take money out. I cannot services could not be provided." understand that. Let us ask: who are the beneficiaries of the I wonder why Government backbenchers councils' efforts? One would presume that they have not yet got the message from what has are Queenslanders, the same client group that been said by Opposition members. The the Treasurer pretends to represent in the Government is doing an extraordinary thing. I Parliament. We provide the same services. We understand the maths. There is no question go about the business with the same things in about that. I understand the rationale but I cannot mind. What happens? The Government chooses understand the principle other than to think that, to take some of the money back instead of when the Treasurer goes jogging, he probably allowing it to be spent at the local level where it wears a little Beagle Boys mask and snatches can be spent efficiently and effectively and as handbags from grandmothers in the mall. That is the people of the community want it to be spent. probably why he jogs. That is the sort of thing The Government takes it away. I cannot believe that he indulges in. it. Mr T. B. Sullivan: You pathetic little I suggest that the problem that the creature. Government faces is that it is starting to believe Mr GILMORE: Is the honourable member its own rhetoric. the one who is doing the snatch and grabs? Is he Mr Hobbs: Drinking their own bathwater. the one wearing the Beagle Boys mask? I would Mr GILMORE: They have been drinking not be surprised if the honourable member were their own bathwater, as my colleague the the Spiderman's mate. He looks like him. I member for Warrego insists. I am sure that he is thought Spiderman was the honourable right. They have drunk a lot of something. I am member's brother. not sure whether it is bathwater, because I am Surely, it cannot be in the best interests of not sure how much bathwater has been used by the State to continue to force extra Government members in the past five years. responsibilities onto councils. In the past five Whatever it is, it has convinced them that the years, councils have had an enormous impost by sole repository of all wisdom is George Street, way of devolution of power and responsibility. Brisbane. They cannot believe that the people However, a consistent transfer of funds has not who are elected to local government in this State come from State Treasury to councils to cover are drawn from the same pool of people from that devolution of responsibility. The councils which they were drawn in the same random have been given the responsibility but not the manner. power to go with it. That appears to be a Why should Government members believe challenge to the only real way that councils can that those people do not have the capacity to benefit from a close working relationship with a look after their own affairs and that they cannot State Government. be trusted by the Government to go on with the Let us canvass for a few minutes the types business of providing the services that they have of services that are provided by councils to the provided so efficiently over the years? Generally people of Queensland. Those services are speaking, councillors work particularly hard for provided extraordinarily efficiently. Councils their communities with very little remuneration or provide local shire infrastructure such as halls, thanks. Councillors are all well meaning and pools and roads. They carry out planning dedicated to the task. For the greater part, services on behalf of the State Government. although they are not paid very much, their They look after health services on behalf of the operations are more efficient than the operations State Government, and they do much, much of the Government. more. Every year, councils do more and more. I will canvass the aspects of the legislation Where would the Government be if it were not for that are upsetting everybody, particularly those local government and the way in which it goes in local government. Later, I will turn to the QEC, about its business and provides services? Could which is currently a statutory authority. Probably, the Government provide the services as the main problem was the threat by the efficiently as does local government? The Government to take away Government answer to that is clearly, "No." If we take as a guarantees. Councils are not recognised in the reference point the lack of efficiency of the constitution. They do not form a tier of bureaucracy under the Government and the Government. Treasurer over the past five years with the soaking up of funds at the upper levels of Mr Robertson: How did you vote in the bureaucracy and nothing happening at the sharp referendum? end—as was said by the member for Western Mr GILMORE: Which referendum? Legislative Assembly 8479 22 June 1994

Mr Robertson: In the constitution. State Government guarantees that are really their Mr GILMORE: For recognition of local right because they are part of the Treasury's councils? operations? Mr Robertson: Yes, a number of years Mr De Lacy: They've got access to State ago—remember, 1988. Government guarantees. Mr GILMORE: If that was the case, I Mr GILMORE: Certainly they have, and promise that I would have voted for local they have always had that. The previous councils. They are not recognised in the Government ensured that they had that. There constitution. They are part of the State was never a problem—— Government and, therefore, they must be Mr De Lacy: Are you trying to make a recognised as part of the service provision from point, because it's eluding me. this point. Curiously enough, I believe that the nub of Mr GILMORE: Yes, I am. The Treasurer is the problem is on the front page of the a bit dull. We have always known that, ever since Explanatory Notes. I would like to take a couple he was a lad. I suppose the Treasurer cannot of minutes to read it into Hansard simply because help that. The problem is—— it will not appear otherwise. It states— Mr T. B. Sullivan: You're closer to " Statutory Bodies Financial Frankenstein than Einstein. Arrangements Act Mr GILMORE: The honourable member is To give to the Treasurer a discretion to old, too, so he should just shut up. require that statutory bodies who borrow Mr De Lacy: Be quiet, he may come to a from a financial institution other than QTC point sooner or later. and who enjoy the benefit of the Treasurer's guarantee in respect of those borrowings, Mr GILMORE: Yes. The point is that for pay to the State a guarantee fee. The the few dollars that the Treasurer is taking from guarantee fee shall be set at a rate councils to balance the books, as it were, and to equivalent to the performance dividend that get his pound of flesh out of their borrowings, otherwise would have been payable had the the Treasurer may well have continued to allow councils to have a Government guarantee to take statutory body borrowed through QTC. the full advantage of the marketplace—they can Where such statutory bodies elect to tender for lending; they can do all of those kinds borrow on a on-guaranteed, non-recourse of things. The few dollars that were left in the till basis to the State, then no guarantee fee that they were gaining because of the will be payable. However, such bodies will Government guarantee would have been spent be required to re-finance all of their existing in the playgrounds, on the footpaths, on the debt on a non-guaranteed, non-recourse roads, in the swimming pools, in the town halls, basis, with the Treasurer retaining the final and in the libraries throughout the State, and not responsibility to refuse approval for such at the Treasurer's behest. He would not have financial arrangements where it is had it in his sticky little hand to spend on behalf considered that there may be some adverse of the community. It would have been spent as implications for State finances as a whole. local taxation, spent locally with real direction, real The lending institutions providing funding impact and real effect. I think that that is the point will be required to acknowledge in writing that I am trying to make. If the Treasurer cannot the non-guaranteed, non-recourse basis of understand that, then it is a little bit difficult for me such financial arrangements." to say it any more clearly. It is certainly difficult. I wonder why we have gone to such Mr De Lacy: It is still pretty obscure. elaborate lengths to guarantee that councils and Mr GILMORE: It seems to me that if the other statutory authorities no longer have access QTC is such a smart operator, as the Treasurer to the marketplace? As far as I can tell, the considers that it is—and I am sure that it is a very legislation does not allow councils to issue efficient operation—and if we do need a lending bonds. They cannot guarantee their own corporation in this State, then why can the QTC lending, can they? not allow the councils to tender for their financial Mr De Lacy: How do you think all those services and let the QTC tender as well? That is not a problem to me. With this legislation, in one councils would be issuing bonds? fell swoop the Treasurer has taken away all of Mr GILMORE: Exactly. Why in the name of those options from local government. Quite goodness should councils that are providing simply, they cannot walk away from State services to the same people that the guarantees. That is why it was trumpeted in the Government seeks to serve not have access to House a while ago that 22 shires have joined the 22 June 1994 8480 Legislative Assembly scheme. The rest of them will follow because Government side of the House tonight in respect they must. There is no way that councils can go of councillors, their councils and the Local out into the marketplace without a Government Government Association will come back to bite guarantee and borrow funds at a reasonable them, because these people are legitimately price. I wonder what the Treasurer would say if elected. They are very close to their people, and councils started mortgaging their assets? That they are very important, at least in my electorate would be the very next step. and ,I trust, in the electorates of Government Mr De Lacy: Can I just tell you one thing? members. They can go out there and borrow privately with a Mrs GAMIN (Burleigh) (1.38 a.m.): It was Government guarantee. my privilege and pleasure this afternoon to join Mr GILMORE: Certainly, and pay the the mayors of many cities and shires from Treasury a dividend on top. throughout Queensland as they assembled in Mr De Lacy: So they should. front of Parliament House. I did this as tangible evidence of my support for them as they Mr GILMORE: Of course they should not. protested against this sneaky, retrospective tax, Mr De Lacy: They do it everywhere. They this performance dividend, this blatant rip-off that do it in New South Wales. It's called a guarantee will affect every local authority in this State, and fee. They do that in every other State. Don't you which will affect all ratepayers throughout know anything about the corporate world? Queensland. Mr GILMORE: The Treasurer has not Instructions were given by the Speaker to heard what I have been saying. There is no parliamentary attendants and security staff to necessity at all for this Government to treat local remove the council signs from where they were governments so poorly. The few dollars that I am leaning on the outside of the fence. It is not so talking about—— long ago that Aboriginal demonstrators were Mr De Lacy: They do that in other every allowed to break down the gates at exactly the State. same place. Where were the security staff then? I am ashamed that this Parliament cannot allow a Mr GILMORE: Is that justification? peaceful demonstration by properly elected local Somewhere in the world has the death penalty. government members, and cannot allow them to Is that justification? display their signs without such heavy-handed Mr De Lacy: You always charge for a action. guarantee. You provide a guarantee; you charge That heavy-handed action is typical of the for it. way things are organised by this Government. Mr GILMORE: I am trying to get the This new tax is just another manifestation of how message across to the Treasurer that the amount this Government is prepared to ride roughshod of money that the Treasurer is collecting from over local councils and their ratepayers. local government is, indeed, trivial in respect of When this Budget was brought down only a the $10 billion that he is dealing with this year. It few short weeks ago, the Premier proudly is very important indeed to local governments boasted that the Queensland Labor Government throughout this State to provide services, and if would provide more services without imposing the Treasurer were to be so grand in his gestures any new taxes. "No new taxes" was the catchcry. as just to let them have this little bit of largess so But as soon as possible after the Budget had that they could assist their communities a little been brought down, legislation was introduced better, then I am sure that Queensland would be into the Parliament which, through the use of a far better place for it. I am sorry that I have so retrospective taxation, will impose the offended the Treasurer that he has to leave the performance dividend on all council debt Chamber; that was not my intention. borrowed through Queensland Treasury. The As I said at the beginning of my speech, this Treasurer has had three goes at this since 1991, is extraordinary legislation. It is the kind of thing calling it different names, but this time it has that we have learned to expect from this become a reality. Instead of being honest and up Treasurer and from this Government. It is front with the voters of Queensland, this unfortunate and I believe that, in time, we will Government is sneaking the tax through the come to regret it because councils can only back door by forcing local authorities to become stretch their dollars and their resources so far. Government tax collectors. Naturally, local They are providing extraordinary services. They authorities are outraged. The Premier and the are not being recognised by this Government, Treasurer should not be in any doubt about how and I think that that is unfortunate. local authorities will advise their residents and Those words that have been said so ratepayers on this matter. Local authorities are vehemently and so vilely by members on the even further outraged at the Treasurer's Legislative Assembly 8481 22 June 1994 statement that he would have investigated the systems and libraries. It has built up considerable financial affairs of any council that had the assets throughout the city. Its debt is well temerity to protest about this retrospective tax. structured and well managed, and the Treasurer They do not mind an investigation; they draw the and this Government could well learn some line at blackmail. financial management lessons from the Gold Most councils would not object so strongly if Coast. the performance dividend applied only to new The Treasurer has made some quite savage loans, but it is a retrospective tax applied to loans and unwarranted attacks on the Gold Coast City taken out for important works over many Council and serious allegations and spurious years—debts on facilities that are 20 or 30 years comments about a highly efficient and well- old. In the City of Brisbane, the examples have managed local authority. Its elected been given of the Brisbane sewerage system representatives would be prepared to put their and the ANZ Stadium, which is used by the business experience on the line against the Queensland Government's Department of Treasurer's any time. The council has first class Education for important sporting events and professional expertise in its highly qualified other Government use. advisers—officers with qualifications in Councils throughout Queensland are accounting, business, economics and local expected to find the money to establish government. infrastructure which should rightly be the It should also be pointed out that the Gold responsibility of the State Government. The Coast City Council spent $10m on the transit Government builds schools and hospitals. Local centre and bus station. This project was a proper councils provide the parking areas. Councils responsibility of the State Government, which provide sewerage, water supply and drainage. walked away from it. The Gold Coast City Council The Government forces local authorities into spent $23m on a sewerage outlet at the borrowings and the Government controls those insistence of the State Government, despite the borrowings, to all intents and purposes, through wish of many to explore other avenues of Queensland Treasury. Then it can sit back and sewerage disposal. do nothing but collect retrospective taxes like The Albert Shire Council estimates that the this performance dividend. potential added cost to that council, based on a The Treasurer has quoted some quite 0.25 per cent performance dividend, would be misleading debt figures for selected councils $225,000 per annum, or 1 per cent of the which have stirred his anger by their protests. For general rate. On the same calculations, the instance, he has quoted Gold Coast City annual bill to Gold Coast ratepayers would be Council's debt at $350m, yet the Queensland about $750,000. One of the things that is really Treasury Corporation issued a certificate of riling local authorities is that there has been no indebtedness which stated the Gold Coast City official contact between them and the Treasurer. Council's book debt to be $295,852,433 as at Most of what they know about the proposal—the 30 June 1993. The Treasurer has given a figure Bill we are debating and which will become law inflated by market value adjustment. tonight—is what they have read or heard through The Albert Shire Council is responsible for the media. That is hardly the way to engage in approximately $45m of the $295m debt in the responsible communication. Gold Coast City Council's name, and meets There is no way of getting around some these commitments through the water and simple facts. In 1989, a large number of councils sewerage agreements. When these figures are joined the Queensland Treasury Corporation in taken into account, the city council debt drops to order to pool borrowings and obtain a more around $250m—about $100m less than the competitive interest rate. Now that this more Treasurer is claiming. Furthermore, the Gold competitive rate has been achieved, the State Coast City Council has gone through a period of Treasury has stepped in almost five years down significant infrastructure provision which required the track and wants to add another surcharge, or some large loan programs. The council's debt is a retrospective tax. The Treasurer wants to well within acceptable levels. The council has a increase local authorities' interest rates so that debt management policy in place, and without they either have to increase their repayments or the Treasurer's performance dividend would extend the life of their loans. When councils have expected to liquidate the current debt in protested, the Treasurer stamped his foot and just over 10 years. alleged that they are not managing their finances The Gold Coast City Council has provided properly. extensive and quality infrastructure through its The Treasurer is presiding over a nasty, borrowings—for instance, the Hinze Dam, sneaky way of abrogating his Government's sewerage treatment plants, water reticulation promise of no new taxes. He plans to collect an 22 June 1994 8482 Legislative Assembly extra $8m a year from the citizens of Queensland representatives of the community. They are not through their local councils. It is a retrospective about to waste money to attend a protest borrowing tax, a tax on local authorities' services meeting just for the sake of it. and infrastructure. The ramifications will be felt all Mr Mackenroth: Some of them do not over this State. even have loans with the QTC. In conclusion, this afternoon's Mr HOBBS: That might be so, but under demonstration was particularly interesting, as this legislation they will soon be forced to pay a council representatives covering all shades of fee associated with borrowings, even if they do the political spectrum were represented. Some not borrow from the QTC. The member knows of the people there had never demonstrated that as well as I do. before in their lives. The absence of Government members was commented on, and derogatory I would like to quote exactly what Jim comments were made about the four Pennell, the President of the Local Government Government members who gawked from the Association, said in his opening remarks. He balcony. A gentleman standing near me stated— commented that his local member was up on the "Men and women of Local balcony but would not come down. That Government, we stand here today at the particular gentleman said that he came from gates of the State Parliament to make plain Ashgrove. The cheeky waves from the member the unity of Local Government in opposition for Whitsunday and the member for Kurwongbah to the Performance Dividend, this tax, this did not go down well; the crowd found them extra burden, on our ratepayers, this offensive. The member for Gladstone certainly unprincipled retrospective taxation act. We stuck his neck out by coming up to the forward are here on behalf of the ratepayers of balustrade. I was pleased to point him out to the Queensland and address our remarks to assembled crowd, who booed him as he shot State Legislators and the citizens of through at a great rate. Queensland." I also took the opportunity of listening in to He said also— Bill Ludwig's impromptu press conference on the "We have gathered here today, under footpath. That was interesting, to say the least. threat and duress from the Treasurer, that Mr Ludwig's opinions will send shock waves those who attend will have their Councils' through the Labor movement. It was my privilege performance scrutinised. So much for free to support Queensland councils and their speech, so much for liberty." mayors at their demonstration this afternoon, and particularly to support the Albert Shire Council I say to honourable members, as Mr Pennell said: and the Gold Coast City Council. I am honoured if the Treasurer wants to scrutinise local to support and represent these important, authorities, let him go ahead and do it. efficient and highly respected local authorities. Firstly, in 1991, the Government tried to Mr HOBBS (Warrego) (1.47 a.m.): It is my impose a capital guarantee fee, which would pleasure tonight to speak on the Treasury have raised about $16.6m. Then, in 1992, it tried Legislation Amendment Bill 1994. I would like to to bring in the credit enhancement levy, which endorse the words of the shadow Minister, who have would have raised $42.6m. Both of them spoke very well on the issue and pointed out were thrown out. The credit enhancement levy, quite clearly the issues regarding the stealth tax as the Treasurer said, was confined to the that this Government is imposing on local dustbin. But the performance dividend then authorities throughout the length and breadth of surfaced to provide $8m to Treasury from the Queensland. I believe that the concerns of local hardworking local authorities of Queensland. authorities are genuine. If Government members Obviously, this Government is hungry for believe that they are not, they must ask money to feed its out-of-control spending spree. themselves why those people would protest. It is conspiring to deceive the people of They would not do so unless serious concerns Queensland. It is using public relations and exist. They came from all over propaganda to convince Queenslanders that this Queensland—from the Gulf to the far west and State has no debt. Really, the Government is the coast—to demonstrate outside this place. borrowing offshore, so to speak. The These local authority representatives, these Queensland Budget soon will be funded totally mayors, are not the dirty, unwashed, by revenue from Government owned enterprises professional protesters who normally get but will not show the real borrowings of those themselves excited and involved with protest Government owned enterprises. Revenue from meetings. These people are responsible local authorities will not reflect their increased members of the community—elected debt burden. In many cases, local authorities will be carrying the debt load. The railways will Legislative Assembly 8483 22 June 1994 produce revenue but will not show debt. The local authorities cannot do so and, if they do, QEC will produce revenue but will not show they will be charged an additional fee. debt. The Government departments that are to Is there much difference between a local be corporatised will also produce revenue but will authority borrowing money from its local bank not show debt. using the State Government guarantee and The Treasurer stated that the performance borrowing from the QTC in an environment in dividend is not a tax and is not retrospective. It is which interest rates are fluctuating in any event? a tax, and it is retrospective. Local authorities It may be the case that the local bank could were enticed to borrow and eventually forced to provide funds at a cheaper rate, depending on borrow. The loans they have taken out have whether it was this week or the week after that refinanced old loans. Those funds are being the local authority tried to take out a loan. How used to pay for capital works that were can this Government claim that it is trying to help undertaken a long time ago. No responsible the bush when at every turn it makes things person could argue that this dividend is not harder? retrospective. I refer to the Minister's second-reading I want to quote from a local government speech, in which he stated— publication that refers to the number of local "The legislative amendments authorities that have had first-hand experience of proposed for the Statutory Bodies Financial the performance dividend in recent times. That Arrangements Act are designed to publication states— complement the amendment to the QTC "Since March of this year, some 23 Act by requiring that non QTC borrowers Councils have been effectively forced to pay a guarantee fee equal to the leave their private banks because the State performance dividend in return for the State Government has delayed loan approvals for Government's guarantee of their up to four months, while approving QTC borrowings." loans on the spot. Furthermore, the State This is one of the most dreadful pieces of Government has lifted the former prescribed legislation that I have seen for a long time. I maximum rate the private banks could cannot comprehend why the Government is charge Councils." trying to curtail local governments by not allowing The publication states further— them to support their own communities. This "We have clear legal advice from our Government does not understand rural Solicitors, King & Co, that refutes all those Queensland. It pays lip-service to small towns in claims"— western Queensland, but it still does not understand what makes them tick. The removal by the Treasurer. It continues— of any facilities from those towns has a flow-on "Indeed their advice is quite disturbing effect. in that it states on the Bill the State Mr Barton: Were they growing during your Government is free to charge whatever they period of Government, these small towns? want irrespective of the QTC's performance. Moreover, that in theory, the State Mr HOBBS: In some cases they were Government could double a Council's debt growing; in some cases they were not. They are overnight." definitely not growing under this regime. In fact, they are becoming smaller and smaller by the Under this legislation, that is a possible scenario. day. The longer Labor stays in Government, the In a press release dated April 1993, the worse it will be for those people. Minister stated that 60 per cent of the smaller Mr Barton: The ones in Vaughan rural shires have not opted for the QTC system, Johnson's electorate are growing. and they have decided instead to stay with their local banks. Is that not a reasonable action for Mr HOBBS: I ask the member to repeat those local councils to take? Is that not what that. should be done? Why would they not want to Mr Barton: The small towns in Vaughan support their local banks—to shop locally? After Johnson's electorate are growing. all, if those banks close down, those small towns Mr HOBBS: A couple of towns are lose the staff that work in them. This Government growing. Obviously, there is a slow population attempts continually to convince everyone that it growth. Of course places such as Emerald in the is doing a lot for the bush. It formulates so-called electorate of Gregory will be growing! In that area, rural assistance packages. However, this is a the irrigation schemes put in place by the former simple case in which rural shires wish to utilise Government are in operation. This Government local banks in order to support their own small towns. This Government has decreed that those 22 June 1994 8484 Legislative Assembly did not develop such schemes. Members should a tax on that debt. I would like to look for a consider the mining occurring in that area. moment to the calculation of this performance Mr Johnson: Who gave them those jobs? dividend and the amounts attributed to it. Of course, if one listens to the Treasurer of this Mr HOBBS: It certainly was not the Labor State, one would think we never have any new Party. In fact, if anything, it tried to take the jobs taxes. This is a straight-out, blatant new tax. If we away. This Government certainly stuffed up the have a look at the formula which is used to Ensham scheme. calculate the performance dividend—or new I believe that this legislation is a blight on the tax—and the attributed amounts, they are not State Government. The Labor Government prescribed in the proposed legislation and may should scrutinise its actions very closely, be prescribed only in regulations. In fact, the because it is not assisting local authorities at all. Queensland Treasury Corporation could be Mr BEANLAND (Indooroopilly) given some legal powers to unilaterally decide (1.59 a.m.): Yesterday will go down as black how much it will charge councils and the form in Wednesday in this State—the day local which that will be done. It has all been left to be governments and their ratepayers were taxed by put in regulations. If there has ever been a this Labor Government. As the Treasurer is situation of buying a pig in a poke, this has to be about to find out, this retrospective stealth tax is the original buy of the pig in the poke. That is about to ricochet around Queensland with exactly what we are doing here and that is one of increasing velocity. Yesterday's meeting of the the reasons that local government is so upset mayors from a number of local governments about the whole situation. around the State should have brought home to Mr Beattie interjected. this Government the significance of this issue. Mr BEANLAND: No-one is sure about This is a new tax not only on local governments what they are going to get. I can understand why and their ratepayers but also on statutory the member for Brisbane Central is so upset and authorities. It will affect motorists, sporting why he is interjecting. I will come to his speech bodies, educational institutions, rail users and so shortly, disgraceful performance that it was. He on. was ripping off local governments and attacking The great train robbery has nothing on the them from all sides. That was the member for robbery that is being perpetrated by this Labor Brisbane Central at his best. Government through the imposition of this new Of course, if we consider what the Minister is stealth tax. Let us consider the level of debt of saying, we find that he is really saying, "Trust me, local governments in Queensland. Local I am from the Government." When local governments in Queensland are largely governments initially got involved with the responsible for providing basic infrastructure Queensland Treasury Corporation, they were such as water and sewerage. That is not the case told that they would not have to pay any taxes in other States. Naturally, therefore, compared and there would not be any hidden agenda. with councils in the other States of Australia, They were assured that any benefits would be Queensland's local governments will have higher passed on. This has turned out to be the great debt levels. Despite that fact, the State con, nothing more and nothing less. Of course, if Government has decided to put its hand out and we have a look at what Lord Mayor Jim Soorley, say, "Even though you are doing much of the the member for Brisbane Central's friend, called work that the Government would do in other this Treasurer, we see that he called him a States, we are still going to hit you around the despicable Treasurer, dictatorial and a fascist. head with a piece of 3 by 2. We are going to That is what the Labor Lord Mayor called the impose this so-called performance dividend, Treasurer. Bill Ludwig, another friend of the which is actually a straight-out tax." That is exactly member for Brisbane Central—— what is happening. The total of over $3,000m, according to the Treasurer's own Annual Mr Beattie: My cuddly mate Statement for 1992-93, is the local government Mr BEANLAND: His Labor Unity cuddly debt in Queensland. Having local government mate said that it was a bad decision financially and responsible for this infrastructure has allowed the politically. So we can see exactly what some State Government to keep more than $2 billion members of the Labor Party think about this of that debt out of the State Budget, so we are Labor State Government's new taxation scheme. talking about more than $2 billion here. That is As I mentioned, when the councils entered into the very sizeable amount of debt that is going to this arrangement they were assured by the be taxed by this new proposal. Queensland Treasury Corporation that there The debt of local government has been would not be any hidden agenda. They were told doing work for this State Government over a long that what is now proposed would not occur. What period of time, but now they will be forced to pay we have here now is a clear breach of the Legislative Assembly 8485 22 June 1994 contract and a breach of the arrangements Treasury Corporation operation. What benefits between the Government—the Treasury are being gained by local government and Corporation is just an arm of this statutory authorities through the management of Government—and the local governments of this the Queensland Treasury Corporation as distinct State. It is certainly a deceitful, despicable, from the State's credit ratings? I hear a lot from dishonest, snake-oil operation from the the Treasurer about the State's credit Treasurer. He is a snake-oil salesman operation. ratings—we will put that aside for one That is exactly what local government people moment—but what benefits are being gained? said about this measure today. How can the Treasurer show us any performance Mr Veivers interjected. criteria, because he has not shown any to date, and I have gone through a number of these Mr BEANLAND: He is really bottling documents. What performance criteria does the snake-oil with this little exercise here. What rate Queensland Treasury Corporation and this of performance dividend are we going to end up Government have in place to show the benefits with is one of the questions that local and the gains? After all, this is a supposed government is asking. We understand that to performance dividend, so there should be arrive at the $8m that this measure is proposed to performance criteria for the Queensland bring in, the Government is probably looking at Treasury Corporation. Let us see them. The 0.25 per cent or some such figure. However, is it Treasurer has not shown one—not a thing. The going to be 0.25 today, 0.35 tomorrow, 0.55 the reason he has not is that it is all to do with credit next day, 1 per cent and so on it goes? The ratings; it is all to do with the size of the pool; and Treasurer is saying, "I am from the Government; I it is all to do with the assets. He has not shown us am here to look after you." People have heard a thing. In fact, if one has a look back to 1991, that already. That is how local government got one sees that there was a huge increase in the conned into this whole operation. They were told administration costs of the Queensland Treasury that the people from the Government were here Corporation. And if one has a look at what has to look after them. They were told, "Trust us". been happening in relation to—— What guarantees are there that there will not be an increase? There are no guarantees, but I want Mr De Lacy: You are asking me a to hear some words from the Treasurer later. question. I will answer it. What guarantees will he give on this because, Mr BEANLAND: If the Treasurer wants to after all, he is breaking commitments to local give me an answer, he will have an opportunity in governments in so many ways. his reply to this second-reading debate. I can What we really have from the Labor Party is assure him that I will be—— comments to the effect that, for the first time, we Mr De Lacy: You won't take an have a brand-spanking new tax, but there is such interjection. a thing as a free lunch. For years the Government Mr BEANLAND: The Treasurer is the has told us that there is no such thing as a free biggest fraud in this House. In fact, he is lunch. However, if we are being told now that this despicable. He is a despicable, snake-oil new tax will not be passed on to ratepayers, that salesman; that is what he is. He comes in here it will not be paid for by local government—that and tries to con people and con local we are going to somehow stretch the piece of governments. He is a fraud and this State knows string; it is not going to add additional costs to it. How despicable can he get? The Treasurer local government—then there must be such a had a second-reading speech and he did not thing as a free lunch after all. What a farce it is. Of have the guts to come in and show us how the course it will be borne by the ratepayers in one Queensland Treasury Corporation, even with all form or another. If the term of the debt is to be his minders scattered around, is improving its extended, the additional payments to pay off that credit performance and that it has a performance debt will certainly be borne by ratepayers. If local measurement on this whole operation. It is a governments are to continue to pay the debts off fraud and the Treasurer knows it. I am glad he at the current rate, obviously they will have to mentioned what a con it is because it certainly is. increase the ratepayers' rates or, alternatively, So let us hear a little bit about it later from him, if put off members of their work force so that they he has the hide to stand up and show us what can save additional funds for this particular tax. fraudulent figures he is going to present to That is a matter of great concern to a number of indicate that there is some sort of performance us, that members of the local government work measurement that can show that the force will be put off in some cases because of the Queensland Treasury Corporation is, by its own new tax which the Government is bringing in. management—its own performance— doing I wanted to say something about the something for these local governments apart performance monitoring of the Queensland from credit ratings, apart from the asset pool and 22 June 1994 8486 Legislative Assembly apart from the benefits which the local The South East Queensland Water Board governments are bringing to the Queensland has a debt to the Queensland Treasury Treasury Corporation themselves. Corporation of $113m. Apart from being hit by While we are on this very important matter, I local governments around the south-east corner, want to raise the issue of the Constitution Act of water consumers will now be hit through the Queensland. Quite clearly section 56 deals with South East Queensland Water Board. They will procedures for Bills affecting local government, be hit again for this new hidden tax. The figure is and it sets out that local government is to be not peanuts; it is $113m. Brisbane water advised of legislation affecting it that is being consumers will be hit with a very sizeable bill. brought before this Chamber. That very Local government will be hit again from that important section was brought in during the time source, particularly those in south-east of the Ahern Government, when it was Queensland. promoting local government, not attacking it. The Education institutions, including the State Government of the day was promoting local University of Central Queensland, the government, standing by it and supporting it. I Toowoomba Grammar School and the Griffith ask the Treasurer: exactly how long before he University will be hit with this new tax, as will water introduced this legislation did he advise local boards, grain councils and port authorities. In government of a summary of the legislation that relation to the Caloundra-Maroochy water supply was to be introduced this evening? system—the Sunshine Coast people should be We have heard a lot from the Government looking at this. The sum of $30m is involved about the fact that this performance dividend is there. That will be caught up in this exercise as not a new tax; that it is not a tax at all. However, well. A large number of undertakings, including the Australian Bureau of Statistics taxation Queensland Rail, which has a debt of $1,640m revenue figures for 1992-93 show clearly the with the Queensland—— Government borrowing guarantee levies for all Mr Johnson: $2.15 billion next financial States, and Queensland is amongst those. year. There is no doubt that this is classed as a tax. Mr BEANLAND: My colleague tells me it is Victoria—that much maligned State—does not $2.15 billion. Queensland Rail passengers and have a Government borrowing guarantee levy. other users of the rail service will face this new The figure there is nil. But the Government tax. People right across-the-board—not only borrowing guarantee levy for Queensland is local government directly—will be hit. Water some $17m. For South Australia, it is $4m; for consumers will be hit, as will sporting bodies, Western Australia, some $13m; for Tasmania, education institutions and motorists. $7m; and for New South Wales, some $16m. That shows that Queensland has the highest The famous Gateway Bridge Company, taxation revenue gain from this new form of whose debt continues to increase markedly, and taxation which is being introduced this evening. the Sunshine Coast Motorway Company will be hit. Therefore, motorists on the Sunshine Coast This is a form of taxation; there is no way that and in Brisbane will also be paying this charge. It the Treasurer can weasel his way out of that. He will have a wide-ranging effect. But this has had three goes at getting this up before Government claims that it is not a new tax; that it under various names—all of which have failed. is not going to be passed on and that it is so So members are now debating this legislation in insignificant that local government will not even the dead of night. It is now 10 past 2 and, at the see it and will not have to pay any additional taxes rate we are going, no doubt it will be much later or rates. No doubt other parties will be expected before this debate is completed. The Treasurer to pick up the tab without increasing their costs. had plenty of opportunities to debate this during We all know that that will not be the case; that the daylight hours. Instead, members are debating tax will be passed on. this legislation in the wee hours of this morning. All those organisations go to make up the Let me consider what else this legislation will amount of funds which are borrowed—some $13 affect. The Queensland Treasury Corporation's billion—from the Queensland Treasury annual report for 1992-93 contains a range of Corporation. All those authorities have funds to statutory authorities and local government create a pool, which allows the pool to generate bodies, including sporting groups. I have the marginally cheaper borrowing rates of the mentioned the Brisbane Cricket Ground Trust Queensland Treasury Corporation. All those and the Lang Park Trust, which will be picked up organisations which pool their funds in order to in this legislation with borrowings of well over gain something will be hit with this new slug fairly $1m. They will have to pay extra charges. and squarely between the eyes at a time when Therefore, people attending sporting events will they can least afford it. pay part of the new performance dividend. Legislative Assembly 8487 22 June 1994

This just goes to show that what we have irrespective of the QTC's performance; that in here is a very sneaky operation. In the past, the theory, the State Government could double a Treasurer put up hundreds or thousands of council's debt overnight. taxes beyond the rate of inflation and introduced In the case of the Toowoomba City dozens of new taxes in his time as Treasurer and Council—as the council's debt is managed by has been able to get away with most of them the Queensland Treasury Corporation, the without people being aware of them. This time proposed dividend will result in a cost to council. he has been caught out fairly and squarely. He is Although in the case of the Toowoomba City hoist with his own petard. I believe that local Council there may be no need to increase government and consumers right across the budgeted cash flows, the real cost to council with State who will have to pick up the tab for these the current interest rates in today's dollar value is increased charges are certainly going to know approximately $969,850. In effect, that is almost about it and will certainly send a very clear $1m that council will be unable to provide to the message to this Government. ratepayers of Toowoomba City in the form of Mr HEALY (Toowoomba North) some essential service or infrastructure. It will (2.18 a.m.): I rise tonight in wholehearted mean that some important roadworks will not be support of my colleagues in the Opposition to able to be provided. It will mean that an important condemn the Government over this retrograde sewerage upgrade will not be able to be piece of legislation that is before the House. I provided, that an important infrastructure also condemn the Government on behalf of the program such as the provision of a cultural centre ratepayers of Toowoomba City. This legislation, it will not be able to be provided, and that any has been said before—and I think it is worth planned upgrade of a water treatment and repeating—is the third attempt by the pumping installation will not be able to be Government to impose a tax on local authorities' provided because, quite simply, some projects debt in this State. will miss out. Mr Mackenroth: That's been said 10 With the legislation, the Government has times. effectively told local authorities such as the Mr HEALY: It is worth repeating again and Toowoomba City Council, "You must sacrifice again. The capital guarantee fee in 1991 was certain projects in order to satisfy our insatiable thrown out. The credit enhancement levy in urge to draw funds from every possible avenue 1992 was also consigned to the wastepaper that we can." The scenario that I have mentioned basket—and quite rightly. Yet here we have the in Toowoomba will be mirrored and duplicated in Government engaging in a third-time-lucky local authorities across the State of Queensland. campaign to effect an enormous unnecessary Thousands, possibly millions, of ratepayers money grab which could, in effect, result in not across the State will be denied their right to have third time lucky for the Government but strike some form of essential service, infrastructure three and you are out. project or program upgrade provided for them because of the legislation. Yesterday, outside the gates of Parliament House, we saw a group of people who were In many cases in rural Queensland, bank prepared to put party politics aside in a joint branches could close because of the display of dissent from the State Government's Government's policy under the legislation of legislation. Mayors from local authorities all over forcing council borrowings to the Queensland this State—whether they belong to the National Treasury Corporation. Since March this year, 23 Party, the Liberal Party or the Labor Party, or are councils have been effectively forced to leave Independents or non-aligned their private banks because the State politically—gathered here in the city on behalf of Government has delayed loan approvals for up to their ratepayers to defend those ratepayers four months while approving Queensland against a Government that has got it wrong in this Treasury Corporation loans almost on the spot. legislation. I congratulate the mayors for their Furthermore, the State Government has lifted unilateral action in that regard. the former prescribed maximum rate that private The Government continues to argue that banks could charge councils. the performance dividend is not a tax; that it is That action has led to uncertainty in banking not retrospective and will not affect rates on circles and, combined with the long delays in services. The clear legal advice from solicitors approvals, has meant that the banks have had to representing the Local Government Association load their quotes by up to 1 per cent to cover all of Queensland suggests otherwise. The advice eventualities in the financial markets. It will affect refutes the Government's claims. In fact, the not only ratepayers but also the future advice states that, with this legislation, the employment of bank staff in small rural Government is free to charge whatever it wants, communities because in many cases those 22 June 1994 8488 Legislative Assembly banks have as their biggest customers the local used the bullyboy standover tactics which are authorities. typical of the State Government, and threatened Councils all over Queensland have every and carried out his threat to instruct Treasury to reason to be irate and incensed over the review the budget, rates and charges and debt Government's decision to use retrospective levels of councils who dared to protest and who legislation to break legally binding contracts dared to come to Brisbane to voice their opinion. between the Queensland Treasury Corporation He has threatened the mayors of local and councils and to impose a new tax on council authorities from all over the State who carry the borrowings. The Government keeps boasting ever-increasing burden of State Government about its healthy financial position, but it refuses responsibility without the necessary back-up to acknowledge that one of the main reasons for funding. He has refused to allow local its being in that position is that local authorities governments their democratic right to oppose provide basic infrastructure which was rightly the the implications of the legislation. I place on responsibility of the State and should be the record my congratulations to the local authority responsibility of the State. mayors who congregated outside Parliament House yesterday. I congratulate people such as A good example of that very issue was Jim Pennell and Greg Hallam. I congratulate the raised last week at a public meeting organised by Mayor of Toowoomba, Ross Miller, and his the Works Committee of the Toowoomba City colleagues from all over the State who gathered Council which I and my colleague the member for here and had the guts to defy the Government Toowoomba South attended. The meeting was publicly. The ratepayers in their local authorities also attended by representatives of the police, should be proud of them. They have the full school P & Cs, the Transport Department and support of the State Opposition in the continued Q-Build officials, who were there to discuss traffic fight against this unfair, unnecessary and unjust and parking problems in and around Toowoomba legislation. schools. The meeting resolved quite clearly that the council is doing its level best to remedy the Hon. V. P. LESTER (Keppel) traffic and parking problems around schools but (2.26 a.m.): Only a short while ago, the State is constrained in its efforts by a lack of funding. Government made great play of giving, so it said, a rural package to help the people in the bush. The meeting also resolved that the State Yet here we are: with a sleight of hand, the Government should shoulder its responsibility Government has taken away that so-called and provide adequate off-street parking and benefit. Twenty-three councils, many of them in set-down areas within school grounds, country areas, have had to leave their banks. particularly in all new State schools. That will be Does the State Government realise what that the case with the construction of the new means? In country areas, it is extremely important Cranley State School in my electorate. The that local councils support their local Education Department will provide the land for organisations. When they cannot do it, some of off-street parking and bus set-down area— the staff in those towns must go. That has Mr DEPUTY SPEAKER (Mr Briskey): implications for other businesses. There is a little Order! The honourable member will come back bit less for the grocer, a little bit less for the to the subject matter of the Bill. garage and so it goes on. Mr HEALY: The council will still have to One can never believe Government foot the bill for the provision of that parking. members when they talk about trying to help the Mr DEPUTY SPEAKER: Order! The people in the bush. They would not jolly well honourable member will come back to the know what it means to help the people in the subject matter of the Bill. bush. Mr HEALY: Yes, I will come back to it right An honourable member interjected. now. That should clearly be a State Government Mr LESTER: There go the members of responsibility, not an extra burden that the local the Labor Party, carrying on at this ungodly hour authority must bear. of the morning. It is half past 2, and they are The legislation is a blatant, unlimited trying to interject. Now Government members backdoor tax on ratepayers from a Government want increased taxes. They say, "Tax the people that repeatedly promised precisely the opposite. more." Government members do not care about What has the Treasurer done to alleviate the the ordinary battlers. They could not give a hoot. fears of local authorities throughout the State They want to tax people to the hilt to pay for their about the legislation? He has not said, "Let us sit grandiose schemes, many of which are in down calmly and sensibly and discuss it and try to Brisbane. work out an amicable arrangement", which in Two councils in my electorate, the many cases the councils would like to do. He has Rockhampton City Council and the Livingstone Legislative Assembly 8489 22 June 1994

Shire Council, are affected. As far as Livingstone be paying higher shire council rate bills. Shire can ascertain, it will be affected by an However, they are not angry with the councils; additional $150,000. That is on top of increased they know that the councils are under pressure workers' compensation fees, devolution of to increase rates in order to pay this new tax powers and it goes on and on. More and more being rammed through State Parliament by this taxes are being placed upon those councils. On Labor Goss Government. many occasions, Councillor Barbara Wildon has The people of Barambah are angry because spoken to me about how concerned she is about the Treasurer thinks that he has hit on a new way the additional costs being imposed upon the to impose a tax on councils without running the councils by the State Government. Mayor Lee danger of paying for it at the ballot box. I have Taylor was out there in full cry today voicing his news for the Treasurer: I think that this one is concerns about what is happening. He told me in going to come back to bite him in a very big way. no uncertain terms what he thought about the We will probably see the Government doing a State Government. Recently, the people of backflip on this legislation well and truly before Rockhampton told the Labor Party what they the next election. thought about it when they gave the Labor Party a terrible kick in the tail and gave Taylor an The people are also angry because the increased majority. I cannot follow what the Treasurer's greed extends beyond the councils. Government is doing. It wants to keep taxing In fact, it extends to a $25m money grab—a those poor people and making it more difficult for money grab to be financed by every single State them. department or agency that the Government has been able to coerce into borrowing funds I turn to the rally that was held today. It is through the Queensland Treasury Corporation. unprecedented to see those people, who would not usually be involved, taking part in the rally. I Mr Lester: I understand this new tax is am sure that they did not want to be there. They only an apprenticeship; there are many more to said in no uncertain terms how disgusted they come. are with what is going on. We are all disgusted. Mr PERRETT: I am sure that this is the The State Government also must deal with its thin end of the wedge. We know Labor's style. increasing arrogance. Government members are We have seen them in action before. getting a bit cocky. That is when one gets The Treasurer's new tax will raise $8m from knocked over. It can happen to us all. From time councils for the State Treasury this coming to time, we all get cocky. It is time for them to stop financial year, but he is attempting to ensure that and count to 10. voters heap the blame on local councils. The I suggest to this Labor State Government signs all point to the strategy failing miserably, as that it forget all about this new tax and let these local government leaders throughout the State local authorities—these independent, elected have united in a campaign to reveal the truth. bodies—get on with their job with the least That truth is that the Goss Labor Government is possible interference. willing to use its numbers in this House to force Much of what I could say has been said through legislation allowing the State to collect a already. I reiterate and support what has been so-called performance dividend from those said and, in view of this ungodly hour, I conclude bodies that raise loan funds through the simply by supporting what the rest of my Queensland Treasury Corporation. colleagues have said. We will keep up the fight. Government members have tried to defend The Government is going to rue the day that it this legislation, but their arguments have been as kicked these local authorities fair in the teeth. weak as water. Who are they trying to fool? They Mr PERRETT (Barambah) (2.31 a.m.): have talked about three aspects of this Bill. As far Every ratepayer in the electorate of Barambah is as I am concerned, the three aspects to this Bill angry about what the Government is doing with are Goss, De Lacy and socialism. This this legislation. That was demonstrated very Government has accused the Opposition of clearly today when six out of the eight mayors scaremongering, but there is a lot of pain in representing the shires in the Barambah Labor circles. A lot of pain is being felt among the electorate were present at the protest outside backbenchers. I am sure that, at the conference this Parliament. One cannot call those people in the coming days, there will be a lot of pain and rent-a-crowd. They are very responsible, even blood-letting. Most of all, the pain will be felt democratically elected people, held in high at the next State election. esteem by the electors in the various shires. The theory behind the Treasury raid is that They were here representing the wishes of public sector borrowers get a better deal by those people. They know that the people are working through the QTC and should have to very angry because they fear that they will soon pay the Government for the privilege. The 22 June 1994 8490 Legislative Assembly legislation is so important to the Labor responsibilities. It is outrageous for the Treasurer Government that it has called Parliament back a to threaten these councils with an investigation. day early for a special sitting. It is so important that Of course, council expenditures and the Treasurer and the Premier have been borrowings have to be paid for, and an important prepared to risk taking on local Government source of these funds is property rates. Nobody leaders, even when it was obvious that their likes them, but we all realise that we have to pay deceit had been exposed. It is so important that our share. We are willing to pay our share, but we they have risked the ire of their factional master, are not willing to pay the State Government a bit the AWU boss Bill Ludwig. Honourable members extra to give the Treasurer a bonus. Despite that, are aware that, yesterday, Mr Ludwig joined the many councils will have to raise their rate protesting mayors outside Parliament. He did collections to pay the De Lacy tax. They have that because he knows that a fall in council little capacity to reduce council services, which is budgets means the loss of jobs among council the only alternative. To make those reductions staff. Nevertheless, the Treasurer had no option would mean a loss of jobs, and councils will but to go full steam ahead, because this Goss always do that as a last resort. Government has spent the cupboard bare. Of course, there is little that councils can do The new tax was announced by the once this new tax is rammed through Parliament Treasurer in July of last year in his Interim Budget by the force of discipline that Labor imposes on Statement. To find the reason, we have only to its members. Labor members will dutifully vote for look at what else was in that Interim Budget one of the most iniquitous taxes ever imposed Statement. It proposed closing down one-third by a Government, but a few will shiver at the of the State's rail system, and it imposed health prospect of facing the voters. They have cause and education cuts, particularly in regional and for fear, as many councils will put the blame rural Queensland. Strong local action highlighted squarely on the Labor Government in the form of the rail cuts, and the Government was forced to a note attached to rate notices. At least the De back down on many of them. Lacy tax will not last long. The National Party Now, local authorities have put up a strong announced long ago that the measure will be fight against what they are the already calling the dropped by the next coalition Government. De Lacy tax on councils. Some of the councils, I mentioned earlier that the effects of this concerned for the welfare of ratepayers, have secret new tax go beyond local government threatened to take the Government to court, councils. The tax will apply to all statutory essentially for changing contracts mid-stream. authorities and Government departments that That is why we are here now—so that the have financing requirements. Honourable Government can put this greedy tax grab beyond members might be interested to know some of the reach of the courts. the bodies that will be subject to this On Wednesday of last week, the Opposition Government's secret tax. Grainco is one. That Leader, Rob Borbidge, told the media that the body has as its shareholders the grain producers Labor Government would soon embark on a of Queensland. Its financing costs impact on the campaign to denigrate local authority leaders returns to growers, and we all know that most opposed to the new tax. He was right. The grain growers are struggling owing to years of campaign hit top gear on Friday with an hysterical drought and other hard times. The secret De attack on the Labor Lord Mayor of Brisbane and Lacy tax is set to add to their problems by his Labor colleagues in council—all of those increasing Grainco's debt-servicing requirement comments about Bollinger Bolsheviks, and so and reducing returns. on. The De Lacy line was that councils which The beef industry has not been travelling passed on the charge to their ratepayers would well in recent years because of the drought and be doing the wrong thing and would have to be other factors, but it will be saddled by the De audited by the Treasury. I understand that Lacy tax being applied to funding of the exercise is now under way, and I want to say that I Livestock and Meat Authority. The Water think it is disgraceful. There is no basis for that Resources Commission will be slugged with the sort of behaviour. secret tax. Farm water users will pay extra to The Treasurer knows very well that local service the additional debt that this tax imposes. councils are already stretched to the limit. The Queensland Electricity Commission will pay Despite supplying a far greater proportion of the extra in debt servicing with the certain reduction services their communities need, they receive in the QEC's ability to keep down electricity less than 10 per cent of the funds available to the prices. Queensland Rail will be subject to the De three levels of Government in this country. They Lacy tax, increasing costs for a vital element of have to make large borrowings to fulfil their the State's infrastructure. Every rail freight bill will include a component resulting from the tax. The Legislative Assembly 8491 22 June 1994

Queensland Industry Development Corporation probably thinks, "Lucky employers. Tax them will be asked to pay the new tax. and that will create greater performance." Can the Treasurer stand up in the House We have only to look at the record of the and tell farmers with QIDC loans that there will be Labor Party. Under the Labor Party in Federal no effect on their loan term or their repayment politics—and certainly under the Labor Party in instalments as a result of his secret tax? The rural Queensland—we have seen an increase in package, which has been mentioned earlier, taxes. But it probably thinks that is healthy and makes it look like a joke. These great pretenders helping people. It certainly has not brought down in the Labor Government pretend to be friends our unemployment rate. But to tax local of the battlers—friends of the people in rural authorities is to tax people who do not have as areas—yet they slug them with this tax! Take the big an income base as the other levels of case of a grain grower who is using electricity to Government. As has been mentioned before, drive irrigation pumps and who has a loan from less than 10 per cent of the available funds are the QIDC. That grain grower tries to pay his rates allocated to this level of Government. But it is at on time, and he is probably using Queensland the cutting edge of service provision. We have Rail. Just imagine the extra slug that will hit that been very fortunate to have very good service grain grower! He will be slugged in about six providers in local authorities. different ways. That is what this iniquitous tax is It is such a cynical exercise to bring in this all about. sleazy, secret tax by lumping it onto local Every Queenslander will pay a share of the governments. They have recognised this. Right Treasurer's $25m bonus, but rural across the political spectrum, it is quite Queenslanders will pay a lot more than their interesting to see how the dummy has been spat share, which will not surprise them for one by the Government's own members and certainly minute. They will pay more than their share by the AWU. It will be very interesting to see what because of the imposition of the tax on bodies the reaction will be at the Labor conference, such as Grainco, the QLMA, the Water because they know that it is a tax. The fact that it Resources Commission, Queensland Rail and is retrospective is what is really sticking in the QIDC. The very services on which rural and people's gullets. With this retrospective tax, we regional Queensland place a heavy reliance will do not even know how far back it will go. be among the hardest hit. Add to that the slugs The people who protested outside on councils and rural Queensland will really feel Parliament today did so for good reasons. The the pinch. They will not forget who did it to Government is bringing in a retrospective tax them—the real socialists of the Labor Party. which will cost millions and millions of dollars. It is Miss SIMPSON (Maroochydore) the principle of the matter as well as the figures (2.41 a.m.): The Goss Government lied when it that will hurt. We do not know the full impact of said that there were no new taxes. The what the Government has in store. But the fact performance dividend is a tax. A tax by any other that the Government has the cheek to go ahead name still smells like a tax, looks like a tax and is a with it is cause enough for worry. tax. By lumping this tax onto local authorities, the Statutory authorities as well as local Government is taxing the people providing authorities that have loans from the QTC will be service delivery. These are not the big affected by this legislation. Certainly, once again, commercial operators or people out in the we do not know the full extent of what they will marketplace trying to make some sort of a profit. be slugged by the Government. But to give such These are the people providing services like an open cheque to the Government to bring in water and sewerage, particularly in the such a Bill goes against all principles of what is fair fast-growing areas on the Sunshine Coast. and right in taxation. It is about time that the There has been one estimate that the Government, when it does decide to tax people, performance dividend will cost $18 per rateable calls it what it is. The Labor Party has always had a property. That is of grave concern in some areas, very glib way of using language. It usually gives because councils have to take on borrowings in one exactly the opposite of what one is going to order to provide infrastructure for the rapid cop. That is why, when the Goss Government growth in those areas. lied and said that it would not bring in new taxes, The performance dividend is a tax. It is it has created such a howl among its own ranks. strange how the Government uses words such This is one that it will not live down. as "performance". Does it seriously believe that Mr MITCHELL (Charters Towers) by taxing people it will achieve greater (2.46 a.m.): This morning, I rise—only briefly, I performance? This is typical of the Labor Party. might add—to express my dissatisfaction with Perhaps it thinks that payroll tax is providing the State Government's proposed performance greater performance among employers. It dividend tax. I, like my colleagues before me, are 22 June 1994 8492 Legislative Assembly appalled by the proposal of the Treasurer, Mr De Government costs imposed on local Lacy, and the Queensland Treasury Corporation governments in recent years, as well as the to expect a fee in return for the provision of a significant wage and salary increases incurred guarantee from the State Government. This under State and Federal awards, will cause many performance dividend has followed on from of those milch cows to run dry. assurances given to the Local Government The external costs to which I am referring are Association that consideration of the imposition the training guarantee levy, the superannuation of a credit enhancement fee would not proceed. guarantee levy, workplace health and safety In approximately April 1993, advice was legislation costs, workers' compensation given by the Treasurer that the State premium increases, commercial Crown land Government had scrapped plans to introduce a purchases, quality assurance implementation fee on local government borrowings. The costs, total management planning costs, performance dividend is payable by local corporate structure establishment costs, and rate governments on loans financed through the losses through national park acquisitions. Queensland Treasury Corporation. The State Government has been espousing more Another point I feel I must bring to the autonomy for local authorities for quite some attention of members in this House are the time. This new legislation is further evidence that difficult economic and drought conditions its claims for greater autonomy are futile rhetoric. existing in the electorate of Charters Towers and the consequences of these conditions for The State Government has tried to convince people. The ratepayers of the Shires of Charters Queenslanders of its professional approach to its Towers, Dalrymple, Flinders, McKinlay, Julia operations with such things as corporate Creek, Belyando and Peak Downs cannot structures, commercial viability, quality absorb any more additional costs. assurance, an open tendering system, and so on. However, we now find that the State I foresee that the only result from this new Government is by legislation compelling local tax will be reductions in council work forces right government to borrow from the Queensland throughout State as well as a reduction in Treasury Corporation. I strongly suggest, services by all local authorities. though, that this is creating the very thing that Another important aspect of this loan tax is the Government has been trying to avoid—a the fact that the present State Government has monopoly. designed it so that local authorities will be Now, we find that the Government is perceived by the wider community as being the proceeding to tax our ratepayers for the privilege bad guys. This Government is distancing itself of the mandatory use of this monopoly, based on from any adverse public reaction. As one of the the performance of the Queensland Treasury present mayors in the electorate of Charters Corporation. The present State Government Towers suggested, the ratepayers will ultimately cannot be allowed to remove the right of the 130 have to pay for this new tax, and this will force a local governments to negotiate the most rates rise. If rates do not rise, services will be competitive loan arrangements for their reduced. Whichever way one looks at it, ratepayers. ratepayers will suffer. The Premier, Mr Goss, stated in the I feel that my colleagues who have Courier-Mail on Thursday, 15 July 1993, that preceded me in this debate have voiced the full "costs will not be placed on local governments grievances of all local governments. However, as but on the Queensland Treasury Corporation". the representative of the Charters Towers Now, some 11 months and two weeks later, we electorate, I ask the Government to reconsider find another unfair and unwarranted tax titled the this piece of irrational and repressive legislation "performance dividend". This is another backflip and place local government once more in the by this Government. I surmise that this legislation position where it can work for the betterment of may interfere with the freedom of all local its residents and not become a vehicle of State governments in Queensland to deal with the Government revenue generation. financial institution of their choice. Mr ROWELL (Hinchinbrook) (2.52 a.m.): I venture to suggest that banks in small rural At the outset, I congratulate Ted Malone, the centres in Queensland will be forced to make new member for Mirani, on the maiden speech more commercial decisions and close their that he delivered earlier this evening. It is very banking facilities in those rural towns simply pleasing to see a new member of the National because the banking business generated by the Party in the House. shire council in those towns is unable to provide This legislation will empty the pockets of business for them. The performance dividend local authorities. It will reduce the level of tax, when added to the other State and Federal services delivered by many local authorities Legislative Assembly 8493 22 June 1994 around the State. This legislation is very specific circumstances, it is essential that every cent that in its intent. It is designed solely to put more is collected in rates be used for the best money in the coffers of the State Government. It purpose. Any money that has to be borrowed is designed to give the Government more power has to be obtained at the best possible rate to to exercise its social agenda under the disguise avoid increasing a debt on which repayments are of "no new taxes". The Government is really difficult to make. showing its true colours to the people of Why should not a State Government pass Queensland. In common with all socialist on every benefit to local authorities, rather than regimes, it is interested only in controlling wealth, extract every drop of blood possible to fill its own not distributing it. That is a point that must be coffers? Even the method of arriving at the made about the new tax that the Government is payment is not clear, as the calculation will be imposing on the people of Queensland through prescribed by regulation. It seems that the local authorities and statutory authorities. Treasurer will have the discretion to bring There is no depth to which this Treasurer statutory bodies under his umbrella. There is no and this Government will not stoop in order to mention of what criteria will be used for this to gain control over people's lives. What have local come about but, if the agenda is to force these authorities done that brings the scorn of this bodies to comply with Government policy, the Government to a point at which it wants to force performance dividend could take on a totally local authorities to trade through the different perspective. Would a Government Queensland Treasury Corporation or, intervene in a commercial decision of a statutory alternatively, be thrown out in the cold if they body by imposing its loan conditions? Will the want to break from the shackles of this imposition QTC pick and choose what it believes are safe that has been placed upon them? The AAA loans and leave the higher risk proposals to rating that the State enjoys is a dowry that was flounder, or will it act as a good samaritan and left to the Goss Government by the previous help all those in need of the finances that at National Party Government and the numerous times are desperately required by statutory councils that, for the most part, provided services bodies that have to support their members? to a mixed and diverse cross-section of These risk factors are extremely important, communities around the State. because many statutory bodies have to borrow Local government is the level of money when things are not particularly good with government that works with people at the their industries. Will there be any differentials in coalface. Councillors have to live in the various interest rates for different categories of loan, communities throughout the State and give of either for local government authorities or their time, very often for very small remuneration. statutory bodies? Will statutory bodies Their actions and decisions are recorded daily in considering a loan have to inform the Treasurer the local media. They must live with those when they are looking for finance and at what decisions. Councillors are constantly lobbied by rate they are able to negotiate? Is it only the people on a range of local government issues. Treasurer's discretion that determines whether they have to comply with the performance It is quite clear that the State Government dividend and share 50 per cent of the savings? has no confidence in the ability of local governments to administer money. Rather than Any organisation that is in the grips of the allowing them to take advantage of the QTC's QTC cannot make new borrowings or refinance ability to attract money at the best rate possible, the debt outside, unless it can prove that a better the Treasurer has decided to fleece them of the rate can be obtained outside the QTC. It must resultant savings. These savings could be going prove that the transaction is superior to the into building a road, carrying out maintenance to conditions that can be provided by the QTC. the road system, providing sporting facilities or There do not seem to be any specifics on how improving water and sewerage systems. These the relative merits of each arrangement are to be are but a few services councils are always looking gauged. The Treasurer is making an assumption at in order to stretch the dollar. that the QTC will continue to improve its performance and expects the loan terms to fall. During the drought, many local authorities Although all the best principles of lodging loans have experienced severe downturns in their may be used, it is not impossible that QTC economies. Rural areas have a sad history of interest rates could rise above the recognised having to battle the extremes of adverse weather benchmark. Would the Government channel and price fluctuations, especially those involved money back to pay 50 per cent of the increase in in exports. Under the ravages of some of the interest if the QTC had no option but to increase worst droughts in our history and some interest rates? If this does eventuate, will the extraordinarily low world prices, the people in the Government give this consideration? What country have survived. Under these contingency measures has the Treasurer put in 22 June 1994 8494 Legislative Assembly place in the event of this type of situation term borrowings, but 5 per cent could be a occurring? realistic figure to work on. Those local government authorities that If the Treasurer intends to pass the want to borrow outside the QTC are faced with responsibility of this important means of finance two options. If they want State Government over to commercial lending institutions without backing on their borrowings, which would security, and the easier to administer capital enhance their access to finance and have a loans being taken on by the QTC, then it is likely bearing on a more favourable interest rate, then that the cost of bridging finance will rise. This they are obligated to pay a fee. Those that are could offset any benefit of loans made through not prepared to pay this fee are ostracised by the QTC in the future. Government through no Government guarantee I would be interested to know how overdraft backing, resulting in loss of credit rating support arrangements will be serviced if the QTC is going and possibly higher interest rates. This measure to accommodate councils or statutory bodies. impacts more on smaller communities, as often in There is some indication in a report that I have the country towns around the State the local here from Queensland Treasury's annual report. authority is the major client of a bank. The banks It says that Queensland Treasury operates four are going through major rationalising exercises debt pools from which the department and, as a result, services are being reduced authorities may draw funds. This is a debt pool for when client demand is waning. This can happen long-term, medium and short-term loans. for a number of reasons when belt tightening Additionally, there is a floating rate debt pool occurs because of recession and the capacity of which also is for short-term loans, so it appears clients to service debts. If the local authority has that there is a range of categories within the had a good rapport with a bank over a period of QTC, but it certainly would be interesting to hear time, with medium and long-term loan the Treasurer explain how the QTC arrangements, a level of credibility is established. accommodates overdraft situations, and certainly Dr Clark: Do they carry on with their loan with statutory authorities or the councils. even though the interest rate is really terrible? If the retrospectivity of borrowings with the Mr ROWELL: That is something that they QTC are then included, there is no doubt that have to come to terms with. What I am saying is, the Government is creaming off any benefits that quite simply, if a bank in a small town is very may have accrued in the past from the QTC by reliant on the business that local authorities those councils or statutory authorities raising provide, if that interest through the bank lending their money through the QTC. Small towns are money for the local authority is reduced to a point being left with only a couple of banks. Often we where the local authority takes its business away, are informed that a small town is going to lose a simply what happens is that that bank will bank because its head office is adopting certainly reduce the amount of service that it can measures to improve efficiency. A local authority provide to a community because of losing a major withdrawing a substantial section of a bank's client. business could lead to the reduction of service or, more disastrously, the closure of the bank in a The ability of the council to negotiate the small community. This effect, when added to the interest rate is particularly important. It also allows attitude the Treasurer and his colleagues have for short-term financing through overdrafts. Any for people living outside the larger centres of business that constantly monitors its cash flow population in the State, is bad news for country does not want to borrow money in excess of its towns. Not only has the Government closed requirements and pay more than the necessary courthouses, schools and hospitals, and amount in interest. Most good operations will threatened to close railway lines, but now this finely tune their debt structure to minimise decision will impact on private enterprise banks interest while maintaining the required level of by reducing their ability to retain some of their working capital. biggest customers. The convenience of having the local As the Explanatory Notes say, there will be government authority financier within reach of no extra cost to the Government, and the net the local authority, and the availability of revenue from the imposition of the performance restructuring financial requirements at short dividend is estimated at $25 million per annum. notice, can be advantageous. How does the Mr De Lacy: I tell you what—you are Treasurer intend to handle overdraft situations running a good battle. with the needs of local government authorities and those statutory bodies lured into the QTC by Mr ROWELL: I thank the Treasurer. In his stick and carrot measures? I do not know what June 1993, only about half of the local the average ratio of overdraft might be to long- authorities were listed in the debt pool that is administered by the QTC. The revenue for the Legislative Assembly 8495 22 June 1994 guarantee fee is estimated to bring in about doing with the performance dividend. It is taking $50,000 to the Government. Irrespective of advantage of having money that can be obtained whether they want to borrow from the QTC, if by the Queensland Treasury Corporation at a they want Government backing they will be reasonable rate and then using it to provide forced to subscribe to this guarantee fee. This is cheap finance to some of those local straight out blackmail. Here is a group of government authorities and statutory authorities organisations, which really are an extension of around the State. At the same time, it is making the State Government, being forced to pay to be sure that it creams off its section of it. I have supported when providing a service to the never seen a Government that does that type of people of Queensland. Then to rub the salt in—if thing. It is using local authorities to take any of those councils object to the tactics the advantage of the situation—to raise money at a Treasurer is using, they are being threatened reasonable interest rate and then go and cream with an investigation of their finances. They are off its section rather than pass that money out to continuing to come along to Opposition local authorities. members, and they have plenty to say. Local authorities have the ability in every An article in the Townsville Bulletin states— avenue to spend that money wisely. They have a "Mr De Lacy said if Mr Mooney was good track record. They have an excellent concerned about ratepayers' money, he rapport with their own communities, and they are should not fly to Brisbane to take part in the elected by them. The opportunity exists for them planned protest. to take the best advantage and make the best possible use of that money. Yet this Government He said councils which criticised the is prepared to screw every cent that it can out of Government were usually those that had the the system in order to fortify its own social most to hide. agenda. 'Their criticism is usually a smoke- screen designed to hide their own Anybody who comes into this place is quite problems' interested to see the way in which this Government has operated in a range of fields. . . . We are seeing funds from a lot of statutory As a result Mr De Lacy has instructed bodies being siphoned off. The Auctioneers and Treasury to review the budgets, rates, Agents Fidelity Fund is one example. The QEC charges and debt levels of local authorities is having a special tax placed on it. This whose representatives take part in the Government is just using those taxes to bolster protest." up its own social agenda without any interest in Absolute extortion! This is straight out gutter performing a service to the people of tactics by the Treasurer, and he might well be Queensland. seen as a Treasurer who has nowhere else to go Time expired. but to implement a tax that he has tried to Mr SLACK (Burnett) (3.12 a.m.): I introduce twice before. Third time lucky; but in remember some years ago that, when this passing this Bill in Parliament, the Treasurer has Government came to office, it said that it would outraged the normally impartial Local not sit past 10.30 at night. It is now 3.15 a.m. I Government Association, which has protested suppose the Government is going to blame outside the gates of Parliament House. Opposition members for that! I remember when I Neither the Treasurer nor any Labor Party was in Government sitting here at 3 o'clock in the member was prepared to address about half the morning. The now Education Minister was mayors in Queensland who demonstrated their speaking on a Bill, and members opposite were concern about the impost that will be placed saying what a shame it was that we sat so late at upon them by this Government. Most of the night; that they would not do this sort of thing. National and Liberal Party members mixed freely But it is now 3.15 a.m. with the leaders of local government Mr SPEAKER: Order! I assure the communities, who had travelled from a good member for Burnett that I know the time. I cross-section of councils throughout suggest he gets back to the Bill. Queensland to protest against this amendment. The Leader of the Opposition, Rob Borbidge, Mr SLACK: It is good to see two Ministers told the gathering that, on return to Government, who voted against this Bill, as I understand it, the coalition would abolish the performance when it went before caucus. I understood that dividend and give back the security and benefits the Ministers for Administrative Services, Local they once had enjoyed. Government, Family Services and Emergency Services voted against it. It would be interesting In concluding my speech, I would like to to know whether that is correct. Something must openly condemn this Government for what it is be wrong—— 22 June 1994 8496 Legislative Assembly

Mr Mackenroth: You be here in half an environment protection Act. They have been hour and you see where I vote. told that they will get $500,000 for the privilege, Mr SLACK: I know how the honourable but that will not cover it. Then they are told that member is going to vote here, but I am asking they can charge licence fees. That may cover it. how he voted in the Cabinet room. How did he But have the councils indicated that they want and Mr Milliner vote there? Incidentally, which this? No, they do not want it. The Government faction does the Minister belong to? has forced it on them. It tries to say that this is going to be a benefit to them; that it is a Mr SPEAKER: Order! I warn the member performance dividend benefit. The Government for Burnett that he ought to get back to the Bill, is saying to them, "It is something extra that you otherwise I will ask him to resume his seat. The have to pay, but you had better believe me that it temptation is really strong, I can assure him. is a benefit to you." Mr SLACK: One must accept that A shire in my area has estimated that this will something is radically wrong when we have cost approximately $30,000 extra per year. That conservative—and I mean "conservative" in the must be paid by the ratepayer. Whether that is literal term—shire councillors marching in front of imposed this year or in another period, it still must Parliament House. Have members ever seen that be paid. That is a charge, no matter how the happen before? Mayors were marching outside Government dresses it up. The Treasurer said to this House to protest about a tax. It does not the member for Indooroopilly that he is a farce. matter what the Government says or how it tries The one in this House who is a farce is the to dress it up, it is a tax. No matter what word the Treasurer. He is a farce when he brings in things Government likes to use, it is a tax on local like this and tries to pass it off as being government. Something that they were not something that is not going to cost anybody required to pay before they are now required to anything. That is where the farce is, and that is pay. That is going to cost them money. where the con is. The Treasurer is guilty of a con It is amazing how Government members can and a farce. say that it is not going to cost them money. On I know that the hour is late, but the fact one side of the ledger the Government says it will remains that local authorities do provide services get $8m in revenue from this, but the voodoo for our citizens—the same as the State economics on the other side tries to say that it is Government provides services for our citizens. I not going to cost the ratepayers anything. do not like being confronted with a situation in According to one newspaper article, the member which the Government says, "This is a major for Bundaberg said that this is not going to mean benefit to the State. We will provide more that ratepayers have to pay any extra, just that hospitals, more teachers, more police, etc." But the loan will take a little longer to repay. Where is what is it going to be at the expense of? It will be the rationale in that? The problem is that these at the expense of other services that local people are in charge of our Treasury, and they authorities provide. The Government is just make statements like that: it will take a little shifting funds from one area to another. That longer, but it is not going to cost us any more. money will get used up in regulations, red tape One must wonder about that. and bureaucracy. On the one hand, this Government brings As one member correctly said, local down a Budget that has a 9.2 per cent increase government is the tier of government that is in outlays, then it says there will not be any new closest to the people. It can use that money taxes or any increases in charges above the level more directly and get more value out of it in terms of the CPI. Yet commonsense will tell them that of providing services to the local community. The when they bring down a 9.2 per cent increase Government has expected local authorities to do that there must be extra charges. This is one area that. It is expecting local authorities to provide in which the Government has introduced a more and more services, yet it wants to take that charge—a tax—on local government. money away from them and put it on the Do local governments not pay enough now? shoulders of the ratepayers. Not all citizens pay Many extra things have been lumped on them by rates. So the Government is selecting a few to this Government. They have to go through pay the charges for the majority, and it will reams and reams of paper, which means that continue to do this. That is one of the more trees are being cut down. They have to reasons—among many—that it will lose office. provide reports that they never had to provide That is one of the reasons why the Victorian before. They had to put on extra staff when this Labor Government lost office. At the end of the Government came to power just to cope with the day, I have no doubt that this Government will extra work. I am aware of the extra work caused follow the same path as that of the Victorian by Environment and Heritage. Councils are Government, and it will achieve the same expected to charge levies under the Legislative Assembly 8497 22 June 1994 result—losing office. And as far as this State is Mr JOHNSON: It is retrospective. It is concerned—the sooner the better. another part of the Government's agenda of I totally reject any suggestion whatsoever forced amalgamations by stealth. The that the Government is providing a benefit to this Government goes about it in a variety of ways. I State by taking money from a local authority to remind the Government that those people who give it to the State Government. Local authorities were here yesterday are not fools. They are very do a particularly good job. They are pretty close successful businessmen in their own right. to the people, and they are able to spend that Mr Nunn interjected. money in their local areas. Mr JOHNSON: The member for Hervey I take the opportunity to congratulate the Bay can laugh all he likes. He is an absolute joke mayors of those shires who came down here to in his own electorate. If he thinks that he will demonstrate their objections to this particular tax. represent the people of Hervey Bay for much They do not normally do that sort of thing. It was a longer, I will make it my business to make sure big step for them. As members would appreciate, that he does not. Government members believe it was quite a courageous step for the Lord Mayor that they back the battler. I will tell them how of Brisbane, Alderman Soorley, to speak out much they care about the battler. Forced against this Government. For anybody in the amalgamations will occur. Labor Party to speak out against this Mr Horan: Sack the worker. Government is a courageous step. The Mayors of Townsville and Brisbane and the other mayors Mr JOHNSON: Exactly, the Government from a Labor background who came here must will sack the workers. Many small shires will go by be congratulated on taking the stand that they the way. The asset base of the people who work did. in those communities will be totally fragmented and eroded. People who have given their life I congratulate Ted Malone on his maiden savings to building a home in some of those speech to the Parliament. I join with others in western towns will no longer have an asset. That welcoming him to the Parliament. I am sure that will happen if forced amalgamations are carried he will make a very worthwhile contribution over out under some of those idiotic policies that have the many years that he will be here. I take been thought up and implemented by pleasure in supporting my colleagues in Government members. opposing the Bill. One can appreciate the depth of feeling among Opposition members. We It frightens me to think of what the future support our mayors in our various electorates. holds for rural and remote Queensland. Banks in some of those shires have closed. The member Government members interjected. for Mount Isa is aware that the Westpac Bank Mr SLACK: Government members laugh closed in Boulia. It is 300 kilometres from Mount about it. They think that it is a big joke that all of Isa to Boulia and there is no bank. It is 700 those people must pay all that extra money. The kilometres from Birdsville to Mount Isa and there Government says that it is not a tax, that it is is no bank in any part of that country any more. nothing like that; it is just something that no-one Those people have been deprived of a facility. must pay. As Bill Ludwig knows, the only Mr Nuttall: Blame private enterprise for problem is that it will cost the Government votes, that. and deservedly so. Mr JOHNSON: The honourable member Mr JOHNSON (Gregory) (3.21 a.m.): Most can yell all he likes. I have another 17 minutes in of my colleagues have already canvassed facts which to tell him exactly what I think about his surrounding this de facto tax. Look at all of the policies. hurricane lamps on the Government benches. They have all gone out. Do honourable members Mr Nuttall interjected. know why they are called hurricane lamps? They Mr SPEAKER: Order! The member for do not throw much light and one must carry Sandgate will cease interjecting. them. That description is applicable to all Mr JOHNSON: Thank you, Mr Speaker. Government members. You should suspend him for a month under In my electorate of Gregory, I represent 12 Standing Order 124 to make an example of him. local authorities. I am proud to say that the In the Shire of Aramac, there is no bank any mayors and some of the councillors of most of more. In the Shire of Jericho, there is no bank those local authorities came all the way to any more. I have referred to Boulia and I will refer Brisbane yesterday to voice their disapproval at again to Boulia. A couple of weeks ago, I saw that the de facto tax that the Treasurer has applied to Boulia-Tobermorey Road. The member for the local governments of Queensland. Mount Isa does not even want to know about it. Mr Veivers: Retrospective. 22 June 1994 8498 Legislative Assembly

Mr SPEAKER: Order! I do not want know should care have lost total regard for those about it, either. people. They do not understand what the Mr JOHNSON: I am just reminding you, Mr legislation—— Speaker. Mr Veivers: They don't care. Mr SPEAKER: The honourable member Mr JOHNSON: No, they do not care. will talk about performance dividends and come Government members have lost total regard for back to the subject matter of the Bill. the people whom they represent. They do not Mr JOHNSON: I will get back to that. I want want to understand. That attitude has applied to— across-the-board to the changes that the Government has implemented. The legislation Mr SPEAKER: Order! The honourable will ruin many an asset not only for the local member will come back to the subject matter of authorities of Queensland but also for many the Bill, please. Queenslanders as a whole. Mr JOHNSON: It is about local governments. Hon. K. E. De LACY (Cairns— Treasurer) (3.29 a.m.), in reply: I thank all Mr SPEAKER: No, it is not at all about honourable members, particularly Government local governments. members, for their support for the legislation. At Mr JOHNSON: It is applicable to local times, we make decisions in the public interest governments. Borrowings are made through the that generate a bit of heat. Sometimes it is not Queensland Treasury Corporation. Many local easy to support those decisions. I thank all authorities will not be able to borrow through that honourable members who spoke and all the rest fund because they will not be able to afford to for their contributions. Members of the survive. That is the point that I am making. Opposition were just as disappointing as they Yesterday, Bill Ludwig did a Tom Burns. He always are. They jumped on the bandwagon and told us how bad the legislation is, yet he carried on with a great deal of the usual supports it. He did the same thing as the Deputy posturing. They are supposed to be the Premier did when he opposed daylight-saving watchdogs on behalf of the community. That is and then came back to Brisbane and voted for it. the role of Opposition. The legislation was That is why the Government sent Bill Ludwig out introduced into the Parliament mid afternoon. A there today, to stand up to the Government's week later, nobody in the Opposition knew that it union lackey mates. Bill Ludwig supports the had been introduced. Both the leader and the concept. He supports the legislation. deputy leader were not aware that it had been Government members should all be ashamed of introduced into Parliament, so I have only just it. got—— I turn briefly to the second part of the Mrs SHELDON: I rise to a point of order. I legislation, which relates to the Government ask the Treasurer to withdraw that remark. I find it Owned Corporations Act. Last week, during the quite offensive and, may I add, rubbish. I ask that hearings of the Estimates Committee on the he withdraws that remark. I find it offensive. Transport portfolio, we learned that Queensland Rail has a total debt of some $2.16 billion. When Mr De LACY: All right. Mr Speaker, I the Government corporatises Queensland Rail, withdraw. Just to summarise the contribution by that debt will be transferred back to Treasury. the Opposition members—it was characterised Who will pick up the tab for that—the taxpayers of by cant, humbug, hypocrisy and gross Queensland. In the same way, the ratepayers in overstatement. What is probably wrong with western, rural and remote local authorities in them is that they suffer under the delusion that Queensland must pay extra rates to pay the tax they have a prospect of getting back into imposed by this unnecessary legislation. Government in this State some time within the next decade. Let me say to them that they have The Government has drained the blood out not a snowflake's chance in hell. The reason they of every man, woman and child in those shires. have not should be obvious to everybody who is The Government now tries to suck the marrow present tonight. The way in which they out of the bone. The Treasurer is responsible for performed in this debate would make it obvious that. The Treasurer should take a long, hard look to everybody that they will never be back in at the legislation. It will be a reflection on his Government in our lifetime. Government. It will be a reflection on the people of Queensland and on the children of tomorrow. An honourable member interjected. It will be a slur on this Government for many a Mr De LACY: Our political lifetime. I will do long day. Government members who represent communities and families about whom they Legislative Assembly 8499 22 June 1994 the honourable members opposite the honour the performance dividend. As I said, those who of saying that they may return to Government make the most noise have usually the most to within the next 50 years. hide. I have to say that I am not surprised that the There is some conflict within the Labor Mayors of the Gold Coast and Brisbane made a Party, and a lot of people have mentioned this. lot of noise because, when one considers their However, that is what is strong about the Labor debt situation and their rates and charges Party. Members of the Labor Party can disagree, situation, they ought to be creating diversions. and we can agree to disagree. It is common I turn now to the Local Government knowledge that I have disagreed with my good Association. It has run a very dishonest campaign friend Jim Soorley on this issue, and my good in respect of this legislation. It was a very friend Tony Mooney, and Bill Ludwig; dishonest and misleading campaign. I think that it nevertheless, that is the strength of the Labor is fair to say that many mayors picked up the Party. We can disagree, and sometimes even propaganda that came from the Local disagree publicly. Government Association and ran with it. Most of An honourable member interjected. them do not understand what a performance dividend is. Mr De LACY: As they say, and my good friend Kevin Byrne. We did indeed have a Mr JOHNSON: I rise to a point of order. I demonstration here yesterday. All of the people believe that that is a slur on those people. on the Government side of the House were a Mr SPEAKER: Order! The member will little bemused about all of those tories marching resume his seat. There is no point of order. I warn down George Street demonstrating, the member under Standing Order 124. protesting—— Mrs Sheldon: Only tories? Mr De LACY: I think that it is fair to say that the Government has had, over the years, a Mr De LACY: No, the Labor people have a cordial relationship with the Local Government right to demonstrate, because they have always Association. I fully expect that, once this issue is supported the right to demonstrate. What about past, we will again resume that cordial all of those other precious people who were relationship. We will be able to put it behind us, demonstrating as though they were somehow and I look forward to doing that. unique, or different, or that it was a special cause? We always have demonstrators here. We I want to simply make three points: had one group of demonstrators that broke everybody is saying that somehow the down the fence. These demonstrators come and Government does not assist local governments. go. It is part of the democratic process. Nothing could be further from the truth. There is Mr Milliner: They used to lock them up. no Government in the history of Queensland that supported local government in the same way and Mr De LACY: Exactly. They used to lock to the same extent as does the Goss them up and now they are out there exercising Government. As an example, in this Budget, we their democratic right. It is good to see that at have increased capital works subsidies by $30m. least they have recognised that it is an important Opposition members spoke about the part of the democratic process. performance dividend stopping local authorities As I said, I think that the protesters think from funding sewerage or roads. There is $30m they are a little bit precious. I mean, it is a gross extra that they can put into sewerage and water overreaction to the performance dividend. Some supplies. I make the point that, last year, this Opposition members asked, did we consult with Government introduced a regional roads them? Did we let them know? No, we just maintenance program worth $50m. That was brought in this legislation! We let them know 12 introduced primarily to assist local governments months ago. They have had plenty of time during to maintain their day-labour gangs. It is a $50m a which to think about it. year program. In the past, when the National I was interested to hear the Mayor of Cairns Party was in Government, nothing like that and the Deputy Mayor of Cairns here occurred. This Government supports local complaining about a notional impost of $82,000. government. Its record speaks for itself, and it will That is what it would notionally cost the City of continue to support and assist local Cairns. Yesterday, they increased rates by $6m. governments to do all of those important things The Mayor of Tambo was present, yet that shire that they have to do. does not even borrow through the QTC. The Mayor of Townsville was present. Yesterday, the Secondly, the issue of retrospectively has Townsville City Council increased the salary been referred to. Let me say that the packages for councillors by at least the cost of performance dividend is not retrospective. It is on current debt only—all of that debt that has 22 June 1994 8500 Legislative Assembly been guaranteed by the Queensland (Chatsworth—Leader of the House) (3.47 a.m.): I Government. Just to put it beyond any shadow move— of doubt, I am foreshadowing now that I will be "That the House do now adjourn." introducing an amendment to the legislation to indicate that it is not retrospective. Rugby League, Lang Park Finally, I want to make one point about a performance dividend. Many people seem to Mr VEIVERS (Southport) (3.47 a.m.): have trouble grasping what a performance Firstly, I want to congratulate the member for dividend is all about. It is a dividend based on Mirani, Mr Ted Malone, on his maiden speech, performance. No performance; no dividend. I which was a beauty, and extend the best to him fully expect that there will be some years when and his family. I know he will make a great the QTC does not outperform the benchmarks. member in this House. People ask me, "How are you going to compare This evening, I wish to outline to the House it?" There are benchmarks that have been an agreement which will see the Fourex Gold agreed to by all of the participants—the Brisbane Queensland Crushers enjoy an advantage over City Council, the Local Government Association, all other clubs competing in next year's Australian and the Queensland Electricity Commission, all Rugby League competition. It is an agreement of which are represented on the board of the which will discriminate against all those rugby QTC. They have agreed with these benchmarks. fans who do not support the Crushers but who The extent to which the QTC outperforms the still want to watch next year's State of Origin benchmarks will determine the performance. Half series. It is an agreement which has the of that will come back to the State Government fingerprints of the Goss Labor Government all by way of dividend and half will remain with the over it, a Government which has politicised borrowers. If there is no performance, if they do Rugby League, a Government which has pitted not outperform the benchmarks, then there will Rugby League clubs against each other, and a be no dividend. As I said, in some years that will Government which has squandered millions of be the case. taxpayers dollars in an attempt to prosecute its long-running feud with the Brisbane City Council In conclusion, on behalf of the Government and its Lord Mayor, Mr Soorley. members of this House, I congratulate the On Monday night, a pamphlet was provided member for Mirani on his maiden speech. I think to all Rugby League fans who attended the State that it is a big moment in anybody's life to be of Origin match. That pamphlet sought formally inducted into this wonderful institution of applications for membership of the new Parliament. I would like the member to take the Queensland Crushers Rugby League Club, a best wishes of all the Government members on supposedly privately-owned operation. As part board, and their congratulations on his maiden of the deal, the offer included 11 Crusher home speech. games and, for an additional fee, tickets to the Question—That the Bill be now read a much sought after and QRL-controlled State of second time-put; and the House divided- Origin series. While it is likely that the Crushers will enjoy considerable support in their inaugural AYES, 45—Ardill, Barton, Beattie, Bennett, Bird, year—and I hope they do—the ability to include Braddy, Bredhauer, Briskey, Budd, Campbell, Clark, in the season ticket package the State of Origin Comben, Davies, De Lacy, Dollin, Edmond, Elder, series puts them at a considerable advantage Fenlon, Foley, W. K., Hamill, Hayward, Hollis, over all other clubs. It is a deal which is not Mackenroth, McElligott, McGrady, Milliner, Nunn, available to the North Queensland Cowboys, the Nuttall, Pearce, Power, Purcell, Robertson, Robson, Gold Coast Seagulls or the Brisbane Broncos. Rose, Smith, Spence, Sullivan J. H., Sullivan T. B., No doubt all those clubs would like to offer as an Szczerbanik, Vaughan, Warner, Welford, Woodgate incentive a package of 11 home games and Tellers: Livingstone, Pitt State of Origin match tickets as well. NOES, 32—Beanland, Connor, Cooper, Davidson, Followers of Rugby League will be aware of Elliott, FitzGerald, Gamin, Gilmore, Goss J. N., Grice, the close relationship between the Healy, Hobbs, Horan, Johnson, Lester, Lingard, Government-controlled Lang Park Trust, the Malone, McCauley, Mitchell, Perrett, Quinn, Rowell, Government-supported QRL and the Fourex Santoro, Sheldon, Simpson, Slack, Stephan, Turner, Gold Queensland Crushers. Followers of Rugby Veivers, Watson Tellers: Springborg, Laming League will also be well aware of the close Resolved in the affirmative. relationship that exists between the Crushers ADJOURNMENT and the State Government. That is why they are at Lang Park, and that is why Lang Park was Hon. T. M. MACKENROTH rebuilt. That is all well and good, but what I seek Legislative Assembly 8501 22 June 1994 to point out this morning is how unfair it is to the sound, logical arguments. Unfortunately, other Rugby League fans who throughout however, a few people have run an emotive, Queensland seek to watch a State of Origin illogical and personal campaign. In the forefront football match at Lang Park—oops, I meant at of this negative approach has been the Suncorp Stadium. Opposition spokesperson, the member for Mr Santoro: You had it right the first time. Toowoomba South, Mr Horan. If time permits, later I will detail some of his misleading, Mr VEIVERS: It is Lang Park and, to me, it inaccurate rantings. will remain Lang Park until the day I croak. Hopefully, I will not croak too soon. The issue faced by the North Brisbane Regional Health Authority is complex, involving On this pamphlet, the applicants are offered consideration of medical, financial, industrial packages ranging from premium to family at relations, architectural and demographic factors. prices ranging from $339 to $106. They will It is important to understand the process in occupy seats in both stands and, if the Crushers arriving at the decision. Firstly, the regional fill all their available grandstand space, there will health authority called for consultants to prepare be nothing left for any other league fans come options. After lengthy debate, the regional State of Origin time. When fans line up at health authority made a certain recommendation Ticketworld at 2 a.m. next season, the first seats to the Minister. He had to take into account the that will become available will be those in the Brisbane north, Brisbane south and Statewide outer areas and the north and south terraces. planning needs before formulating an option And that is about all that will be left. which he would then take to Cabinet. A decision This is blatant discrimination. The State of is still to be made—I hope some time in the Origin series is controlled by the QRL, not by the coming weeks. Whatever the ultimate decision, it Crushers. It is a series for all Queenslanders, not will be based on clear, rational thinking. just Crushers' fans. Next year, it is likely that all The principle I have followed in arriving at a other Rugby League fans will have to settle for decision is this: namely, that the Government outer seats. I can understand that it is in the best formulate a financially viable option which interests of the Lang Park Trust and Crushers to provides the best long-term medical care for sell as many season tickets as possible. Rugby patients who come not just from the area of League is a million-dollar industry. They have Chermside but also from regional and remote been lumbered with a massive debt as a result of Queensland and from islands of the south-west the Government's desire to have the third State Pacific. I have been fortunate in having been of Origin match this year remain at Lang Park. able to meet with many different stakeholders to But the ramification of the Government's hear their views. In recent weeks, I have listened mismanagement of the Lang Park to former patients, medicos, nurses, support redevelopment will not be glossed over after last staff, outpatients, health planners and members Monday's State of Origin match. We are still to of the regional health authority. find out what the total cost of the project will be. After careful consideration of this complex Will it be the $27m disclosed to this House by the issue, I concluded that the people of Minister, or will be it closer to the $35m figure Queensland could be best served if two revealed by Lord Mayor Soorley on radio decisions were taken: firstly, that the yesterday morning? The politics of Rugby cardiothoracic unit of the Prince Charles Hospital League have gone far enough. It is time for all remain at the Chermside campus; and secondly, teams and all Rugby League supporters to be that the Prince Charles Hospital be redeveloped treated equally. as a community hospital, with major emphasis on ambulatory care services. Two days ago, I had Prince Charles Hospital the opportunity of meeting with four staff groups at the Prince Charles Hospital. Having been Mr T. B. SULLIVAN (Chermside) invited by staff members to listen to their views (3.52 a.m.): The Prince Charles Hospital at and having discussed my proposed visit with the Chermside is a world-class facility applauded hospital administration, I met with domestic staff, throughout the medical profession for its wards persons, laundry workers and general standards of excellence, especially in the medical and nursing staff. I told the staff delivery of cardiothoracic services. No-one has members of the decision I had reached on this questioned the expertise, hard work and complex issue, and informed them that I had commitment of the medical, nursing and support lobbied the Minister for Health in support of this staff of the Prince Charles Hospital or the option and that I had informed the regional phenomenal results of its medical procedures. director of my decision. For the most part, the debate about the future of the Prince Charles Hospital has been based on 22 June 1994 8502 Legislative Assembly

Although I did not play a role in gathering look after the interests of his constituents in a signatures for the huge petition tabled today, I very exemplary way. was honoured to be the local MLA who formally The second topic that I wish to talk about presented the 22 486 signatures to this tonight is the political cannibalism that is Parliament. What has made this task even more consuming the ALP body politic of this State. pleasant is that I am able to support what the The unholy alliance between the Left and the petitioners pray of the Queensland Parliament. I Right within the ALP is bursting at the seams, am not privy to the timetable or discussions of and the entrails do not look at all good and smell State Cabinet, so I anxiously await the outcome just as bad. What is being revealed to of the difficult process of deliberation. Queenslanders during the last few weeks and Throughout this whole process, the this week is the very ugly face of the Labor Party, Opposition spokesperson has made many which is scarred by the entrenched ALP practice wrong, inaccurate and misleading statements, of factional deals, cross factional duels, spiteful including just before when he referred to me as revenge, vicious paybacks and a propensity to having made a backflip. If he had read the paper politically murder one's own at the whim of or if he had even asked my opinion, he would powerbrokers who do not like to be contradicted have known that all the time I have said that many or challenged in even the slightest manner. options are open and that there are pros and The political murder is to be performed on cons either way. However, the member chose the current ALP State President, Mr Ian McLean, not to listen to that; he chose not to speak to me the leader of the Queensland ALP Socialist Left. as the local member from the area, and again he The political assassins are that precious sensitive made an inaccurate statement to the House. petal of a Premier, Mr Wayne Goss, and his AWU As well, Mr Horan and the member for cohorts who quite clearly—and rightly Aspley, Mr Goss, tried to gatecrash a staff forum so—believe that Mr McLean is not smothered by meeting at the Prince Charles Hospital with an the stench that inhabits their pockets. The ABC film crew. They were asked to leave shortly Premier, of course, is being very ably assisted by after the meeting began because they were the person whom many within the ALP Left are uninvited interlopers who displayed bad coming to regard as a latter day political manners to the Prince Charles Hospital staff. As Judas—the Minister for Tourism, Sport and well, Mr Horan has made a number of personal Racing, Mr Bob Gibbs. attacks on the regional director, Dr Bryan So what do the Right and the AWU in Campbell. The member for Toowoomba South particular have against Mr McLean? What are their was cowardly and ill-informed in these personal publicly stated reasons for wanting to knife this attacks on a respected doctor and health fearless organisational leader of the Labor Party? administrator. Let us look at what former ALP State secretary The Prince Charles Hospital is a magnificent Wayne Swan said about Mr McLean on the 7.30 hospital. Whatever decisions are to be made Report on 15 June. He said— about the future of this hospital, they must be ". . . I think unfortunately Ian has lost based on a clear, rational discussion of all substantial support because what he's done possible options. I am certain that the proper on this occasion as he's done in the past, is process has so far been followed in this that he's put his faction's interests ahead of important matter. In common with the the party's interest and I believe that's not constituents of the Chermside electorate and good enough for someone who's the thousands of Queenslanders interested in the president." Prince Charles Hospital, I eagerly await the outcome of Cabinet's deliberations. Whatever As the interview proceeded, Wayne warmed to decision is arrived at, I know that the Prince the task. Later on in that interview he went on to Charles Hospital will continue to provide world- say— class medical services to the people of ". . . there are a number of things that Queensland. people are unhappy about. For example, his recent support to sack sitting male members Political Cannibalism within the ALP of parliament in 1996/97 and his public statements to that effect, his willingness last Mr SANTORO (Clayfield—Deputy Leader year to try and stand for the State of the Liberal Party) (3.57 a.m.): I rise tonight for Secretaryship and bring about a situation two reasons. The first is to congratulate the where the left held the Presidency and the honourable member for Mirani on the delivery of State Secretaryship at the same time . . . " a fine maiden speech. I am sure that he will go on to make many more such fine contributions and Still better, Wayne Swan went on to say— Legislative Assembly 8503 22 June 1994

". . . and generally from my experience his "Just the change in the presidency lack of application to the job. Because, I itself if that was to occur doesn't make the mean when I was Secretary, Ian would turn party unhealthy, but if it is part of a process up every now and then, issue a press of centralising power then that's unhealthy release and you wouldn't see him for for the party and ultimately for the months in between." Government and ultimately then for the What a sad and sorry tale! What a disgraceful community." indictment of the party of Government within this These are the comments which parallel the State! comments made by the honourable member for Brisbane Central about cuddly Mr Ludwig. I Let me stress that these are only some of notice that when Mr Beattie made his the many reasons which have been advanced by contribution about Mr Ludwig, some people the evil empire of the ALP Queensland Right in scuttled out. I am told that they relayed what the support of the public guillotining and garrotting honourable member for Brisbane Central had to of the poor and hapless Mr McLean. What does say to Mr Ludwig, who Mr Ludwig has been trying Mr McLean think of these reasons? What does to knife and who he has successfully managed to he believe are the dark, sinister forces and keep out of Cabinet. reasons which are stalking him and plotting his political demise? These also make for very Time expired. interesting reading and should be of concern to all Queenslanders. On the 7.30 Report the International Year of the Family following night, 16 June, Mr McLean went on to state in no uncertain way what he thought is Mr BEATTIE (Brisbane Central) really going on in the ALP today. He said— (4.02 a.m.): As all Queenslanders know, 1994 is the International Year of the Family. Tonight, I ". . . I think what Wayne tried to do last night want to urge the community generally and the was build up, fabricate some issues that media in particular to give greater attention, aren't real. I'm disturbed to think that people understanding and focus on how tough it is to be want to go back to a monolithic structure, a parent in 1994. It is tougher now to be a parent where you're either part of the club, you toe than ever before. To fulfil all expectations placed the line or they're going to have a go at you upon them, a parent in 1994 requires the in the media." patience of Job, the wisdom of Solomon, the About Mr Gibbs' possible candidature, Mr insight of Einstein and the eloquence of Sir McLean said— Winston Churchill or Gough Whitlam, plus the wealth of a Rockefeller. Poor old Job's faith was ". . . well I think there's problems about tested to the full, but parents face similar periods having senior people in the government of testing from their children from day one. holding senior positions in the party. It makes the party an extension of the Television, which has become a glass teat to government, it destroys the independence some children, ensures children are better of the party, I feel it's very important that the informed than ever before and this, coupled with party has an independent view from the peer pressure and the demands of the modern various levels of government." consumer society, stretches parents to their emotional and financial limits. Nevertheless, as His comments about the absolute power of the George Bernard Shaw said— AWU in seeking to grab power through the knifing of Mr McLean and the power brokers "The greatest social service that can be within the ALP were— rendered by anyone to the country and mankind is to bring up a family". ". . . well, I wouldn't like to single out individuals, I think it's a bit of a culture that's Because of the pressure on modern parents, I developed in the right wing of the party. I suggested recently that prospective parents be think they sort of want to be like the New offered greater opportunities for education and South Wales' Right, heaven forbid, but they training, and that there should be a broad want sort of not to have any opposition and teaching of parental skills in Years 11 and 12. to have all friendly people around them, Too often, young potential parents do not fully that's sad . . ." appreciate the hard work involved in child raising, It all sounds pretty unhealthy to me and or that it is a 20- year commitment. The terrible particularly very unhealthy for the State of twos turn into the difficult teenage years, but Queensland and for the good government of parents need the skills and understanding to Queensland. As Mr McLean said— deal with all the stages in their children's development. 22 June 1994 8504 Legislative Assembly

It is no good just blaming Government or computer games and family interaction. Tonight, I saying that Government should do this or am arguing for a public awareness of the need for Government should do that, or teachers should that balance. do this or that in relation to child raising. The Let me look at one of the major achievers in reality is that parents must bear the bulk of Australia, Don Bradman, who learned a lot of his responsibility for child raising, but it is the cricketing skills hitting a golf ball with a cricket collective responsibility of the community to help wicket. He learned by the practical application of create an environment to make that difficult job his skills rather than simply sitting around with a as easy as possible. The first step in that process Sega or a Gameboy. I am not in any way is to have as much understanding as possible of suggesting that those games should be the difficulty of the task of parenting. excluded, but, as I said, there clearly needs to be I make no judgment on the composition of a balance. I instance comments made by Mal the family itself. The combinations or Meninga the other day about skills he had permutations of families is irrelevant. Families learned from his parents. I hope that in the future exist in many different forms in many different we do not produce children who say that all they cultures. "Family" could be defined as a home learned from their parents was how to move the where adults and children share mutual love or controls of the Gameboy or the Sega up and TLC, that is, tender, loving care. In the family, down or how to turn on a Gameboy or other children are nurtured to their maximum growth technical machine for the simple reason that that and potential without abuse and adults find does not breed good families. support, companionship and fulfilment. Being Time expired. judgmental about the composition of the family works especially against the interests of children. Crime in Toowoomba During the International Year of the Family, we need to focus and put more emphasis in Mr HORAN (Toowoomba South) public debate on the importance of relationships (4.07 a.m.): The whole of Toowoomba was and mutual respect. I was interested to read an horrified at the brutal and cowardly bashing of article in the Courier-Mail of Monday, 20 June, Mrs Nora Manton, a 66-year-old shopkeeper, at 1994 that said— her shop around 6.15 on the evening of Tuesday, 14 June. That evening, two thugs with ". . . recent research on marriage has shown balaclavas on, came into Mrs Manton's shop, that the single greatest determinant of its attacked her with a cricket bat, bashed her success is whether the couple spends time around the head, knocked her to the floor, and together, and it is just as important to the then proceeded to break into the till. When they success of a child that his mother and father could not break into the till, they then dragged put in the time for him too. The father has a Mrs Manton across to the till in an endeavour to vital part to play. get her to assist them to open it, all the time It is sad that it has got to the stage that it continually bashing her. They finally left with the seems necessary for research to have to till. Mrs Manton was left lying in a pool of blood spell this out." and, fortunately, was able to get to a telephone One of the other problems confronting parents is within the shop and call some assistance. She the impact of TV and computer games on the was taken to hospital. She had three fractures to family's quality of life. Indeed, tonight at the the skull, 23 stitches were inserted in her Sheraton Hotel I participated in a debate wounds, and she had severe bruising all over her organised by the Creche & Kindergarten face. Having been attacked in her own shop like Association of Queensland and titled, "That that, honourable members can imagine the more technology makes better children", emotional state she must have been in. moderated by the ABC's Campbell McComas. She is a 66-year old woman who had bought Interestingly, that debate highlighted this extra the shop for her retirement. She is a lady who pressure on parents, where children can sit just likes serving people. She looked forward to transfixed with their Sega or Gameboy for hours many years of enjoyment serving and working in with no contact with reality or interaction with the her own shop. She had been attacked in rest of the family. Indeed, intense peer pressure October last year, but that particular thug was on children in turn pressures parents to buy caught. Since then, she has been subjected to Sega systems or Gameboys for their children. continual harassment, with her garbage bins Some games become satisfaction for children at being tipped over and youths knocking out the the end of a button, just like a TV remote control window of her shop. However, what happened with less and less family interaction. There has to to Nora has really galvanised Toowoomba people be a balance between these readily accessible into action. The talk throughout the town is of Legislative Assembly 8505 22 June 1994 frustration with law and order in Toowoomba and People want to see the thugs and the law and order in Queensland generally. juveniles who are going around scratching cars, Just last April, a woman in a wheelchair was kicking in windows, breaking into houses, assaulted and robbed in Laurel Bank Park. She pushing over old people and going into people's was tipped out of the wheelchair and robbed. houses while they are in their backyards hosing Fortunately, people dobbed in those assailants the garden caught. It is time we had enough and the police were able to catch them. Just detectives and uniformed police manpower to be going back over the past two or three months, a able to catch these people and then, once they service station attendant has been threatened are caught, for them to receive a sentence that with a knife during an attempted robbery, and will act as a sufficient deterrent. there was an attempted armed robbery at the Parliament is the place to bring these sorts South Toowoomba Bowls Club and a masked of problems to the notice of the Government. bandit threatened the manager with a sawn-off The Government must listen. People from cities shot gun. There was a savage attack on a 62-year such as Toowoomba are typical of people old woman in Aspect Street in Toowoomba. The throughout Queensland. They have had wheelchair-bound woman to whom I referred was enough. They just want the Government to listen assaulted. Thieves broke into the home of a 90- to their plea. It is time to look after the good year-old woman. In May, a man was attacked by people, the elderly and others who deserve our three men brandishing knives and a baseball bat. support. It is time to stop going soft on criminals. A 14-year-old school girl was stabbed in broad It is time to ensure that they have a great fear daylight in Mary Street and then just last week, that, firstly, they are going to be caught and, we had the attack on Mrs Manton. secondly, that once they are caught the As I said, that incident has the whole town consequences are not going to be very talking. All over the town people are saying that pleasant. they are frustrated that punishment is just not Time expired. sufficient. They are wondering what is happening to our society when young thugs would do this sort of thing to a 66-year-old National Eczema Group woman. Honourable members can imagine how Mr BRISKEY (Cleveland) (4.12 a.m.): I rise her son and other members of her family felt in order to draw the attention of honourable about this and what their feelings are about members to a new community group, the whether the punishment is adequate or not. In National Eczema Group, which has recently been the same period, we have had a service station established in my electorate. It is community broken into three times. Proprietors of other groups such as this which provide support and shops at the suburban shopping centres of assistance to those in need within the Wilsonton and in Ruthven Street have had their community. I applaud the activities of all front windows bashed in on a regular basis, all of community groups in Redlands. them saying, "When is it going to end?" and, The National Eczema Group is one of the "Enough is enough". The call is for stiffer many groups within my electorate in which penalties. The call is to stop this deterioration of volunteers give of themselves and which work to discipline and for some decent support of our improve the lives of others in the community. police force. Eczema is an irritating, painful and occasionally disfiguring skin condition. Eczema is not Recently, a contingent from the Opposition infectious or contagious. Unfortunately, it travelled around the State. It comprised Russell receives very little publicity. Therefore, the Cooper, the shadow Minister for Police and general public is ignorant of its causes, its Corrective Services; Denver Beanland, the treatment and how it affects sufferers and those shadow Attorney-General and Minister for who care for them. There is even a lack of easily Justice; and Brian Littleproud, the shadow accessible information to those who suffer from Minister for Family Services and Aboriginal and eczema. This is a tragedy for eczema sufferers, Islander Affairs. They received tremendous as ignorance leads to discrimination. support at meetings throughout the State and The eczema rash can be noticeably visible, around Brisbane. People want to see the and this often leads to children and teenagers Juvenile Justice Act strengthened. They want to being ostracised and harassed at school. Some see the Penalties and Sentences Act have even been accused of having AIDS. strengthened. They want to see the police get Children with the condition have undergone some support from the Government and some enormous psychological stress as a result of the capability to catch offenders. general public's ignorance of the condition. In a 22 June 1994 8506 Legislative Assembly letter to the group, the mother of a child who kits for schools in order to help teachers and suffers from eczema wrote— students gain a better understanding of how to "If I take her shopping people stare at treat people who have eczema. They also plan to her and I hate it, they think you can catch it." provide pamphlets and other information giving material to sufferers and the general public. The She went on to say— group also provides general support for eczema "People have to learn, accept and sufferers and their families and, importantly, understand about Eczema." provides them with the opportunity to get Eczema is not rare in the community. Many together and share their knowledge and millions of men, women and children suffer from experience and thus help each other by so it worldwide. There is no known cure for the doing. The group also wants to work closely with condition, although for some it appears for a those involved in eczema research so that they period and then disappears. Eczema can be are able to better inform their members about any treated by using emollients, steroids, new products or treatments. antihistamines, non-steroid topicals and evening The National Eczema Group has only been primrose oil. Continuing research is being in existence for five short months. Heather, its undertaken to find other ways of treating the coordinator and co-founder, has advised me that condition. However, it is difficult for those with it is the only group of its kind in the southern the condition, and even more difficult for carers hemisphere. I commend her and her committee of young children who suffer from it. for their efforts thus far. When one considers In order to provide honourable members their achievements over the last five months, it is with some idea of the difficulty that carers of obvious that the group will go from strength to young children with eczema have to endure, I strength. I say to Heather, "Thank you, on behalf again refer to the letter that I quoted from earlier. of all those who suffer from eczema, for starting The mother writes— up the group and for your continuing work "I hate the bad days when she wakes through research and education to relieve the up scratching all covered in blood. It brings suffering of those who have eczema." tears to my eyes. I give her a bath with Motion agreed to. porridge then smother her with Egozite and The House adjourned at 4.17 a.m. Sorboline Cream and if she still scratches I (Thursday). have to knock her out with Phenergan (which I hate doing but it's the only way for her to stop). . . . Rebekah is such a happy, normal little girl when her Eczema is under control." Small children who have eczema cannot attend kindergarten because of the risk of secondary infection, and eczema sufferers do not qualify for most respite care. Caring for a child with eczema is extremely intense and time consuming. At present, there is little support for the parents of these children. It is easy to see why a support group such as the National Eczema Group was so desperately needed. As I stated at the outset, the group was established in Redlands. It began on 24 January this year and was founded by Heather Jacobs and Janie Dallas. Since that time, branches have opened at the Gold Coast, Yeronga, Narangba and Caboolture, and plans are under way to open a branch in Sydney and on the south coast of New South Wales. The group's main aim is to provide education, information and support for people of all ages who have eczema. The group also plans to educate the general community about eczema. As part of this education program, they would like to provide education