CONTENTS Department of Transport . 413 Administrative Services Department . 447 Department of Lands . 470 Estimates Committee F 413 17 June 1994 ESTIMATES COMMITTEE F questioning? If you do wish to make a statement, the Committee asks that you limit it to two minutes. Mrs Woodgate (Chairman) Mr HAMILL: I thank the Committee for the Mr Dollin Mr Lingard opportunity to make a short statement. The papers Mr Hobbs Mr Vaughan and the Estimates that will be considered today demonstrate quite clearly a commitment by the Mr Johnson Mr Robertson Government to the planning for our future The Committee commenced at 11.30 a.m. infrastructure needs and address the issues that face our community today with respect to transport. The DEPARTMENT OF TRANSPORT Estimates contain a balanced approach to the In Attendance development of our transport infrastructure across roads, rail and our port facilities. I think it is very clear Hon. D. Hamill, Minister for Transport and from any examination of the budget that the Minister Assisting the Premier on Department of Transport has two very important Economic and Trade Development functions in the provision of transport infrastructure Mr Geoff Stevenson, Director-General and services. They cater not only for our economic development in the State but also for our social Mr Graham Hartley, Executive Director, Policy, development. Both social objectives and economic Planning and Finance objectives are being met in this budget. Mr Bill Turner, Director (Finance) In relation to the social contribution—I think the Mr Vince O'Rourke, Chief Executive, department has made strides in addressing a number Queensland Rail of issues that are becoming more and more focused upon in the wider community, including issues in Mr Bob Scheuber, Group General Manager, relation to the impact of infrastructure on the Finance and Information Services, community. We have seen the development of a Queensland Rail number of approaches to noise attenuation, environmental rehabilitation and, of course, assessments of environmental impact of The CHAIRMAN: I declare this meeting of infrastructure development. Estimates Committee F open. The Committee will In relation to our economic infrastructure—it examine the proposed expenditure contained in the services not only the present needs of the Appropriation Bill 1994 for the areas as set out in the community but also its needs well into the future. Sessional Orders. The Committee has determined Without an integrated transport network, our that units will be examined in the following order: capacity as a trading nation would be severely Department of Transport, 11.30 a.m. till 4.35 p.m.; impaired. The focus that the department takes is one Administrative Services Department, 4.35 p.m. till of planning. One of the key initiatives that I put in 7.45 p.m.; and the Department of Lands, 7.45 p.m. till place after 1989 when the present Department of 12 midnight. The Committee has also agreed that it Transport structure was developed was a Policy and will suspend the hearings for meal breaks from Planning Unit, which was charged with providing me approximately 1 p.m. to 1.30 p.m. and from with strategic advice on the way in which we provide approximately 6 p.m. to 6.30 p.m. The Committee will the necessary infrastructure to meet those social and also take an afternoon tea break of 15 minutes. economic needs. I remind members of the Committee and others I commend the Estimates, and I look forward to that the time limit for questions is one minute and for being able to assist the Committee in providing any answers is three minutes. A single chime will give a information that the Committee considers is relevant 15-second warning, and a double chime will sound at to the hearings today. Thank you. the expiration of these time limits. As set out in the Sessional Orders, the first 20 minutes of questions The CHAIRMAN: The first period of questions will be from non-Government members, the next 20 will commence with non-Government members, and I minutes from Government members, and so on in ask Mr Johnson to commence the questioning. rotation. The end of these time periods will be Mr JOHNSON: My first question is on indicated by three chimes. The Sessional Orders railways. Budget Paper No. 3 on page 318 gives the also require equal time to be afforded to Government actual salaries for 1993-94 as $691.6m and the and non-Government members. Therefore, when a projections for 1994-95 as only $672.8m—a fall of 2.8 time period has been allotted which is less than 40 per cent. In 1991-92, the figure was $677.6m; in minutes, that time will be shared equally. For the 1992-93, it was $680.2m; and in 1993-94, it was benefit of Hansard, I ask departmental witnesses to $691.6m—all increases of about 1 per cent. I ask: identify themselves before they answer a question. how do you foresee a fall of 2.8 per cent in salaries? I now declare the proposed expenditure for the Mr HAMILL: It is difficult to try to follow Department of Transport to be open for examination. closely the figures that you were citing in your The question before the Committee is— question. If we look at the Estimates for labour and "That the proposed expenditures be overheads over the last few years, according to the agreed to." figures I have with me, in 1993-94 almost $666m was the figure for expenditure on labour and overheads. Minister, is it your wish to make a short introductory The Estimate contained in the Budget paper of statement, or do you wish to proceed direct to 17 June 1994 414 Estimates Committee F $633m reflects the continued downsizing of approved in the State Industrial Commission an Queensland Rail. enterprise bargaining agreement which provided in As you would be aware, Queensland Rail monetary terms a 7.5 per cent wage increase to QR successfully negotiated the first of the public sector employees staged over three payments. For each enterprise bargains in the State. It has worked stage in that, Queensland Rail and the unions exceptionally well. That enterprise bargain—which concerned had to demonstrate to the commission was negotiated and went before the Industrial that the productivity gains which were foreshadowed Commission about two years ago now—provided for in that agreement had not just been talked about but three instalments of 2.5 per cent increases in wages were in fact being realised. for employees of Queensland Rail in return for That, of course, explains the very important substantial productivity improvements. That is point that actual salaries are increasing. It also further occurring against the backdrop of a continued explains why, at a time when salaries are increasing, reduction in overall employment in the organisation. and in this case increasing ahead of inflation, but I That is clearly reflected in the fact that the wages stress commensurate with productivity gains—and I and salaries bill for the organisation continues to will come back to that point in just a moment—the decline. That ongoing downsizing reflects not only overall salary bill for Queensland Rail with a reducing operational improvements but also a substantial total labour force is in fact declining. To be doing investment in new capital and new technology in the otherwise would be of grave concern to me, to railways. Queensland Rail and, indeed, to the Committee. Mr JOHNSON: I refer again to Budget Paper As to productivity—I think there are a couple of No. 3 at page 318, where the number of full-time points that need to be made here very clearly. The equivalent employees is predicted to fall by 0.5 of 1 reform program in Queensland Rail has been per cent. I ask: how will this reconcile with an extensive, and I would suggest that there would be estimated fall in the salary budget of 2.8 per cent? few organisations in either the public sector or the Mr HAMILL: That is a very important question. private sector in this country that have achieved the I think it reflects an oversight on the part of Treasury sort of productivity improvements that have regarding the full employment picture of Queensland occurred within Queensland Rail in recent years. In Rail for the forthcoming year. I think that when the fact, in the last three years, productivity in papers were compiled in Treasury, the actual Queensland Rail has increased by some 40 per cent, employment numbers estimated at 30 June, the and over that period of time we have also seen the figure should have been more in the order of that 16 freight task undertaken by Queensland Rail increase 000 figure in the left column in that table. In fact, in substantially. Were it not for those productivity terms of total staff, as at 30 June 1995, we expect improvements, we would not have been able to staff numbers to be in the order of some 15 500 and support the sort of wage outcomes which the EBA that the estimated actual full-time equivalent number was able to provide to rail employees. I want to of employees as at 30 June this year will be more in further stress that the wage increases, ahead of the order of 16 200, give or take a few. I hope that inflation though they are—real increases in take- clarifies the matter for you. As you will see, that is home pay for rail employees—have been earned by consistent with those projections of labour and rail employees because they are the ones who have overhead costs reflecting the ongoing and gradual generated much of that productivity improvement, reduction in total employment within Queensland and I think we should reward people for a job well Rail.