2017 – 2018 Budget Estimates Appropriation Bill 2017

Report No. 43, 55th Parliament Finance and Administration Committee August 2017

Finance and Administration Committee

Chair Mr MP, Member for Sunnybank

Deputy Chair Mr Ray Stevens MP, Member for Mermaid Beach

Members Mr MP, Member for Toowoomba South

Mrs Jo-Ann Miller MP, Member for Bundamba

Mr MP, Member for Chatsworth

Mr MP, Member for Logan

Committee Secretariat

Telephone +61 7 3553 6637

Fax +61 7 3553 6699

Email [email protected]

Technical Scrutiny +61 7 3553 6601 Secretariat

Committee Web Page www.parliament.qld.gov.au/FAC

2017-18 Budget Estimates – Appropriation Bill 2017

Contents

Abbreviations ...... iii

Chair’s foreword ...... v

1. Introduction ...... 1 1.1 Role of the committee ...... 1 1.2 Aim of this report ...... 1 1.3 Other Members participation ...... 2

2. Recommendation ...... 3

3. Premier and Minister for the Arts ...... 4 3.1 Department of the Premier and Cabinet ...... 4 3.1.1 Budget highlights – Department of the Premier and Cabinet 2017-18 ...... 6 3.1.2 Issues raised at the public hearing – Department of the Premier and Cabinet ...... 7 3.2 Queensland Family and Child Commission ...... 9 3.2.1 Budget highlights – QFCC 2017-18 ...... 9 3.2.2 Issues raised at the public hearing – QFCC ...... 10 3.3 Corporate Administration Agency ...... 10 3.3.1 Budget highlights – CAA 2017-18 ...... 10 3.4 Office of the Governor ...... 11 3.4.1 Budget highlights – Office of the Governor 2017-18 ...... 11 3.5 Public Service Commission ...... 12 3.5.1 Issues raised at the public hearing – Public Service Commission ...... 13 3.6 Queensland Audit Office ...... 13 3.6.1 Budget highlights – Queensland Audit Office 2017-18 ...... 14 3.7 Minister for the Arts ...... 14 3.7.1 Budget highlights – Arts 2017-18 ...... 16 3.7.2 Issues raised at the public hearing – Arts ...... 18

4. Treasurer and Minister for Trade and Investment ...... 18 4.1 Queensland Treasury ...... 18 4.1.1 Budget Highlights – Queensland Treasury 2017-18 ...... 21 4.1.2 Issues raised at the public hearing – Queensland Treasury ...... 24 4.2 Motor Accident Insurance Commission / Nominal Defendant ...... 26 4.3 Queensland Productivity Commission ...... 27 4.4 Trade and Investment Queensland ...... 28 4.4.1 Issues raised at the public hearing – Trade and Investment Queensland ...... 28

5. Minister for Employment and Industrial Relations ...... 29 5.1 Queensland Treasury – Employment and Industrial Relations ...... 29 5.1.1 Budget highlights – Employment and Industrial Relations 2017-18 ...... 30 5.1.2 Issues raised at the public hearing – Employment and Industrial Relations ...... 30

Finance and Administration Committee i 2017-18 Budget Estimates – Appropriation Bill 2017

6. Minister for Racing ...... 31 6.1 Queensland Treasury – Queensland Racing Integrity Commission ...... 31 6.2 Department of National Parks, Sport and Racing – Racing service area ...... 32 6.2.1 Budget highlights – Racing 2017-18 ...... 32 6.2.2 Issues raised at the public hearing - Racing ...... 33

7. Minister for Multicultural Affairs ...... 33 7.1 Department of Communities, Child Safety and Disability Services ...... 33 7.1.1 Issues raised at the public hearing – Multicultural Affairs ...... 34

Statement of reservation ...... 35

ii Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

Abbreviations

ACCC Australian Competition and Consumer Commission

APT Asia Pacific Triennial of Contemporary Art

CAA Corporate Administration Agency

CAMS Community Action for a Multicultural Society

CBRC Cabinet Budget Review Committee

CCC Crime and Corruption Commission the committee Finance and Administration Committee

CRSP Country Racing Support Program

CTP Compulsory third party

CWP Coal Workers Pneumoconiosis

DNPSR Department of National Parks, Sport and Racing

DPC Department of Premier and Cabinet

The Gallery Queensland Art Gallery

GOCs Government Owned Corporations

ICT Information and communication technology

LDeP Legislative Drafting and e-Publishing

LNG Liquid nitrogen gas

MAIC Motor Accident Insurance Agency

MAQ Multicultural Affairs Queensland

MSB Ministerial Services Branch

OQPC Office of the Queensland Parliamentary Council

OSR Office of State Revenue

PSC Public Service Commission

QAO Queensland Audit Office

QFCC Queensland Family and Child Commission

QIC Queensland Investment Corporation

QM Queensland Museum

QPAC Queensland Performing Arts Complex

Finance and Administration Committee iii 2017-18 Budget Estimates – Appropriation Bill 2017

QPAT Queensland Performing Arts Trust

QPC Queensland Productivity Commission

QPS Queensland Police Service

QRIC Queensland Racing Industry Commission

SLAs Service Level Agreements

SPER State Penalties Enforcement Registry

STEM Science, Technology, Engineering and Mathematics

TIQ Trade and Investment Queensland

WDO Work Development Orders

iv Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

Chair’s foreword

This report presents a summary of the committee’s examination of the budget estimates for the 2017-18 financial year. Consideration of the Budget Estimates allows for the public examination of both the responsible Minister and Chief Executive Officers of agencies within the committee’s portfolio area. This was undertaken through the questions on notice and the Estimates public hearing process. The committee recommends that the proposed expenditure, as detailed in the Appropriation Bill 2017, for the committee’s areas of responsibility be agreed to by the Legislative Assembly without amendment. On behalf of the committee, I thank the Premier and Minister for the Arts, the Treasurer and Minister for Trade and Investment, and the Minister for Employment and Industrial Relations, Minister for Racing and Minister for Multicultural Affairs. I also thank the departmental and statutory officers, for their cooperation in providing information to the committee throughout this process. Finally, I thank my fellow Finance and Administration Committee members, other members who participated in the hearing and the parliamentary service staff for their hard work and valuable contributions.

Peter Russo MP Chair

August 2017

Finance and Administration Committee v

2017-18 Budget Estimates – Appropriation Bill 2017

1. Introduction

1.1 Role of the committee The Finance and Administration Committee (the committee) is a portfolio committee of the Queensland Parliament required under section 88 of the Act 2001 and established under the Standing Rules and Orders. The committee’s primary areas of responsibility include:  Premier, Cabinet and the Arts  Treasury and Trade and Investment, and  Employment, Industrial Relations, Racing and Multicultural Affairs. The committee also has oversight functions in relation to the Queensland Audit Office, the Integrity Commissioner, and the Queensland Family and Child Commission. On 13 June 2017, the Appropriation Bill 2017 and the estimates for the committee’s area of responsibility were referred to the committee for investigation and report.1 On 18 July 2017, the committee conducted a public hearing and took evidence about the proposed expenditure from the Premier and Minister for the Arts, the Treasurer and Minister for Trade, the Minister for Employment and Industrial Relations, Minister for Racing and Minister for Multicultural Affairs and other witnesses. A copy of the transcript of the committee’s hearing is available on the committee’s webpage.2

1.2 Aim of this report The committee considered the estimates referred to it by using information contained in:  budget papers  answers to pre-hearing questions on notice  evidence taken at the hearing, and  additional information given in relation to answers. This report summarises the estimates referred to the committee and highlights some of the issues the committee examined. Prior to the public hearing, the committee provided pre-hearing questions on notice to the Premier and Minister for the Arts, the Treasurer and Minister for Trade and Investment, and the Minister for Employment and Industrial Relations, Minister for Racing and Minister for Multicultural Affairs. Responses to all the questions were received. Responses from the Treasurer and Minister for Trade and Investment were received by the committee later than the deadline of 10:00am on the day before the committee’s hearing.3

1 Standing Order 177 provides for the automatic referral of the Annual Appropriation Bills to portfolio committees once the Bills have been read a second time. 2 http://www.parliament.qld.gov.au/documents/hansard/2017/2017_07_18_EstimatesFAC.pdf 3 Standing Order 182(3) provides that the Minister shall provide to the committee answers to the questions referred to in (1) by at least 10.00am on the day before the committee’s allotted hearing day.

Finance and Administration Committee 1 2017-18 Budget Estimates – Appropriation Bill 2017

Answers to the committee’s pre-hearing questions on notice, documents tabled during the hearing, answers and additional information provided by Ministers after the hearing, and minutes of the committee’s meetings are included in a volume of additional information tabled with this report.

1.3 Other Members participation The committee gave leave for non-committee Members to participate in the hearing. The following Members participated in the hearing:  Mr MP, Leader of the Opposition, Shadow Minister for Arts and Major Events, and Member for Clayfield  Ms MP, Deputy Leader of the Opposition, Shadow Minister for Infrastructure, State Development, Trade and Investment, and Member for Nanango  Mr Scott Emerson MP, Shadow Treasurer, Shadow Minister for Small Business, and Member for Indooroopilly  Mr MP, Shadow Minister for Employment, Industrial Relations, Skills and Training, Shadow Minister for Fair Trading, and Member for Kawana  Mr MP, Shadow Minister for Tourism, Sport and Racing, and Member for Beaudesert  Mr Steve Dickson MP, Queensland Leader of One Nation, and Member for Buderim  Ms MP, Member for Bulimba  Mr MP, Member for Maryborough  Ms MP, Member for Lytton

2 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

2. Recommendation Pursuant to Standing Order 187(1), the committee must state whether the proposed expenditures referred to it are agreed to. Recommendation 1

The committee recommends that the proposed expenditure, as detailed in the Appropriation Bill 2017 for the committee’s areas of responsibility, be agreed to by the Legislative Assembly without amendment.

Finance and Administration Committee 3 2017-18 Budget Estimates – Appropriation Bill 2017

3. Premier and Minister for the Arts The agencies, services and statutory authorities which are the responsibility of the Premier and Minister for the Arts are the:  Department of the Premier and Cabinet (DPC)  Queensland Family and Child Commission (QFCC)  Queensland Art Gallery (the Gallery)  Queensland Museum (QM)  Queensland Performing Arts Trust (QPAT)  Corporate Administration Agency (CAA)  Office of the Governor  Public Service Commission (PSC), and  Queensland Audit Office (QAO).4 The following table provides a summary of DPC agency portfolio budget, based on expenses, for 2017-18, in comparison to 2016-17: 5 2016-17 2017-18 Agency $’000 $’000 Queensland Family and Child Commission 12,238 12,501

Queensland Art Gallery 43,684 60,016

Queensland Museum 49,961 54,648

Queensland Performing Arts Trust 49,779 76,969

Corporate Administration Agency 12,001 12,814

Office of the Governor 6,912 6,968

Public Service Commission 14,622 16,200

Queensland Audit Office 43, 257 44,005 Source: Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017

3.1 Department of the Premier and Cabinet The DPC is the lead, central agency of the Queensland Public Service. Its strategic objectives are to:  lead the public sector to achieve strong policy outcomes for the Government  ensure the delivery of a robust system of government  inform the strategic direction of Queensland  grow the arts sector and foster a community that values the arts, and

4 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, pp 1-3. 5 NOTE this table indicates the agency budget and may not represent that actual appropriation.

4 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

 maintain a high-performing workforce.6 DPC activities are coordinated through five main service areas:  Policy Advice and Coordination, and Cabinet Support  Strategy and Engagement  Government Services  Arts Queensland (Refer section 3.7 below), and  Legislative Drafting and e-Publishing.7 Policy Advice and Coordination and Cabinet Support The Policy Advice, Coordination and Cabinet Support service area provides coordination of policy advice for the Premier, Cabinet and Ministers.8 The service area is also responsible for providing logistical support for the operation of Cabinet and its related processes, including the administration of all Cabinet information, and supports the Government’s accountability to the Parliament.9 Strategy and Engagement Strategy and Engagement takes a leadership role in developing future policy and communication strategy for the Queensland Government. The work performed by Strategy and Engagement includes a mix of functions comprising intergovernmental relations, strategic policy, integrated communications, protocol, events and executive correspondence.10 Government Services Government Services provides policy and operational advice and support to the Premier in relation to executive government and machinery-of-government matters, supports the administration of business before Executive Council, and provides support services to Ministerial Offices and the Leader of the Opposition. In addition, it manages and coordinates the Anzac Centenary commemoration program.11 Legislative Drafting and e-Publishing Legislative Drafting and e-Publishing (LDeP), through the Office of the Queensland Parliamentary Counsel (OQPC), provides drafting and e-publishing services for Queensland legislation. LDeP also

6 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 5. 7 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, pp 5-12. 8 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 5. 9 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 5. 10 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 8. 11 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 9.

Finance and Administration Committee 5 2017-18 Budget Estimates – Appropriation Bill 2017 advises on the application of fundamental legislative principles to ensure that legislation has sufficient regard to the rights and liberties of individuals and the institution of Parliament.12

3.1.1 Budget highlights – Department of the Premier and Cabinet 2017-18 In 2017-18, DPC will:  support implementation of the Queensland Government’s Strategic Blueprint for Queensland’s North West Minerals Province, that is aimed at facilitating a strong and prosperous future for the region  manage Queensland’s disaster management and counter-terrorism arrangements  provide secretariat, policy and analytical support to the Business Advisory Council, Working Queensland Interdepartmental Committee, Queensland Disaster Management Committee and Queensland Security Committee  support the Government’s reform agenda for justice and community-related initiatives, including a whole-of-government and community action plan to improve social cohesion, responding to emerging issues including Youth Crime and the Government's Strategy on Ice, and ensuring an independent evaluation of initiatives to tackle alcohol-related violence  coordinate, develop and provide leadership and recommendations for implementation for domestic and family violence and child safety initiatives, including the ongoing operation of the Domestic and Family Violence Implementation Council and holding regional forums to help tackle the issue of Ice  continue to advance and coordinate the Government’s North Queensland policy agenda and priority projects for economic development and jobs including whole-of-government coordination and support for the Minister Assisting the Premier on North Queensland, and delivering the Northern Australia White Paper Implementation and Engagement Strategy  develop a coordinated government response to the challenge of climate change through co-chairing a Climate Change Interdepartmental Committee with the Department of Environment and Heritage Protection, and ongoing involvement in initiatives to protect and manage the Great Barrier Reef World Heritage Area  support and monitor delivery of initiatives such as Government’s response to relevant child safety and law and justice reviews, Queensland’s response in relation to relevant aspects of the royal commission inquiry into institutional child sexual abuse, reforms on personalised transport, Queensland Rail reviews, and funding arrangements for early childhood, school, tertiary and vocational education and training sectors  encourage business to establish in Queensland to bring economic benefits and jobs through the Advance Queensland Industry Attraction Fund and the Jobs and Regional Growth Fund  support the development and implementation of the generational strategy for Aboriginal and Torres Strait Islander Children and Families 2017-37 and Action Plan 2017-19  coordinate Queensland’s response to fire-fighting foam chemical contamination at defence and airport facilities

12 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 12.

6 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

 develop a coordinated approach to bulk water infrastructure initiatives through Queensland’s participation with the National Water Infrastructure Development Fund  support the policy settings to stimulate the advancement of renewable energy, including gas and water  lead Queensland’s future-focused strategy and policy development, and support the delivery of the Government’s priorities, including the Advance Queensland agenda  provide strategic advice and coordination of the Premier’s official overseas visits and official functions including the annual functions recognising Queensland’s strong relationships with trading partners such as India, China, Japan and the United States of America  provide Queenslanders with opportunities to engage with the Anzac Centenary by managing delivery of legacy projects, commemorative events, a community grants program, and producing communication and marketing activities, to educate and engage communities both regional and metropolitan.13 The following table in Schedule 2 of the Appropriation Bill 2017, sets out the proposed appropriation for 2017-18.

Budget 2016-17 Est. Actual 2016-17 Vote 2017-18 Appropriations $’000 $’000 $’000 Controlled Items

Departmental services 207,641 203,184 245,590

Equity adjustment (15,217) (25,951) (30,293)

Administered Items 150,956 153,286 161,540

Vote 343,380 330,519 376,837 Source: Appropriation Bill 2017, Schedule 2, p 11.

3.1.2 Issues raised at the public hearing – Department of the Premier and Cabinet Issues raised by the committee in relation to Premier and Cabinet included:  The allocation ministerial staff and the reasons for growth in the staff to minister ratio during 2016-17  The role of the department and consultation with the Crime and Corruption Commission (CCC) in setting the terms of reference for the investigation into Minister Bailey’s alleged deletion of personal emails  Application processes for Category D disaster management associated with Tropical Cyclone Debbie  Actions taken by the government to improve energy security and create energy jobs in Queensland  Details in relation to the Adani royalty framework, including modelling completed in relation to the potential impacts of the Adani coal mine project on existing coal mines and jobs in Queensland

13 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, pp 5-6.

Finance and Administration Committee 7 2017-18 Budget Estimates – Appropriation Bill 2017

 Benefits of the cross river rail project  Enquiries regarding the use of non-Ministerial Services Branch (MSB) email systems by ministers of the government and whether any ministers have made complaints about printing and email capabilities of MSB provided devices  Leak of confidential cabinet and Cabinet Budget Review Committee (CBRC) documents and whether any investigations are being conducted in relation to this  Funding for additional Queensland Police Service (QPS) resources to help the QPS carry out its duties  The role of the defence industry and defence projects in supporting economic and industry development in Queensland  The calculation methodology for the Adani mining royalties and if the selling of resources by Adani to its subsidiary companies will affect the amount of royalties returned to Queensland  How the government is supporting the creation of 40,000 jobs over the next year  How many Queensland Government employees are paid salaries greater than $200,000 (excluding doctors)  How the government is managing the political/internal tensions between jobs, environmental protection and energy security  The cost differential between coal-fired and gas-fired energy, and which option is the most cost-effective energy source  The management of energy prices and directions made to Stanwell Corporation  DPC targets for service standards and customer satisfaction and actions being taken by DPC to meet future targets  actions by government to help grow agricultural production  government achievements in relation to progressing new biofuels industry in Queensland under the Advance Queensland Strategy  projects supported through the Advance Queensland Industry Attraction Fund and the Jobs and Regional Growth Fund  government planning for infrastructure to support job growth in regional areas  if the Auditor-General has been requested to conduct, or has plans to conduct, an audit of new generation rolling stock and design issues with respect to the disability access  the key outcomes of the Government’s Back to Work Program in its first 12 months of operation  the scope and value of the KPMG contract, and the process for awarding contracts  the status of the 2016-17 Working for Queensland survey and whether this has yet been published  what the government is doing to promote affordable housing for Queenslanders under the Housing Strategy  when advice was received about the contamination and the timing of the government’s response following the spill of toxic firefighting foam at the Brisbane defence and airport facilities.

8 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

The Premier and Minister for the Arts undertook to provide responses to questions taken on notice in relation to six matters which respectively concerned the investigation into the use and deletion of private email accounts by Ministers of the government, use and reporting of issues with MSB-provided devices, the Adani royalties framework, and notification of the spill of toxic substances at the Brisbane Airport. Responses to these matters are included in a volume of additional information tabled with this report.

3.2 Queensland Family and Child Commission The Queensland Family and Child Commission (QFCC) is a statutory body established on 1 July 2014 under the Family and Child Commission Act 2014 (Qld). The QFCC’s vision is to work collaboratively to influence change so Queensland is a safe place where children, young people and their families thrive in supportive communities. This includes a strong focus on representing the interests of Aboriginal and Torres Strait Islander children and families.14 The QFCC’s 2017-18 budget of $12.5 million in DPC administered funding compares to administered funding of $12.2 million budgeted in 2016-17.15 The increased level of funding largely reflects greater employee expenses associated with a staffing increase of short-term temporary staff required for the Review of Blue Card and Foster Care Systems, and increased supply and service costs due to additional community engagement, contractor and technology costs also associated with these reviews.16

3.2.1 Budget highlights – QFCC 2017-18 In 2017-18, QFCC will:  complete the year three evaluation of the Queensland child protection reform program  monitor, review and report on the performance of the Queensland child protection system, key initiatives and reforms, including a systemic review of the oversight mechanisms within residential care  continue to hear the voices of children and young people to inform advocacy initiatives, influence policy development and enable better targeting of services for vulnerable children and young people  implement the second Strengthening our sector action plan through coordinating streams of activity with sector partners, networks of professionals and service providers  continue to evolve and roll out the multi-faceted community education campaign to increase the awareness of the resources and supports available and to encourage parents to access help to assist them in protecting and caring for their children  enhance QFCC linkages to applied research, focussing on areas highlighted as significant for keeping kids safe and well, to better inform policy and practice in the child protection system  build on the initial success of the 2016-17 'Research in the Round' forums by expanding into regional Queensland to continue to showcase research on vulnerable children and families

14 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 47. 15 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 50. 16 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 53.

Finance and Administration Committee 9 2017-18 Budget Estimates – Appropriation Bill 2017

 implement phase two of the 'Out of the Dark' initiative by raising awareness around the risks of online activities for children and young people in regional Queensland  lead a multi-agency initiative to improve responses to reduce criminalisation of young people in out-of-home-care  implement QFCC’s actions from ‘Changing Tracks: An action plan for Aboriginal and Torres Strait Islander children and families 2017-2019’  establish an Aboriginal and Torres Strait Islander Advisory Council to provide expert insights into issues affecting Aboriginal and Torres Strait Islander children, families and the sector  monitor implementation of recommendations from systemic reviews completed in 2016-17.17

3.2.2 Issues raised at the public hearing – QFCC During the public hearing the committee inquired with the QFCC about whether it was currently investigating the capacity of the child protection system to handle increasing numbers of children in care in light of decreasing carer numbers.

3.3 Corporate Administration Agency The Corporate Administration Agency (CAA) provides corporate services to Queensland statutory bodies and other public sector entities on request, under Service Level Agreements (SLAs).18 Services provided by CAA include human resource management and consulting, payroll and recruitment services, financial management and transactional services, and information management services including information technology and business systems.19

3.3.1 Budget highlights – CAA 2017-18 In 2017-18, CAA will:  provide value for money and enhanced services to customers, with a continued focus on innovation and automation of business processes, and responsible fiscal and resource management  develop staff capability to enhance customer engagement and satisfaction through targeted internal leadership development and customer service training  deliver better access to data and information for customers through improved self-service and mobility facilities, tablets and the internet  increase the functional capacity of the integrated job recording and tracking system to improve customer experience and productivity of service delivery

17 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 47. 18 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 81. Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 81.

10 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

 continue to develop and align business planning with the Government’s strategic direction and objectives.20

3.4 Office of the Governor While the Premier and Minister for the Arts has ministerial responsibility for the Office of the Governor, the Office has a separate appropriation in keeping with its status as an autonomous, independent entity.21 The Office provides executive, administrative, logistical and personal support to enable the Governor to effectively exercise the constitutional powers and responsibilities of office, and to undertake constitutional and ceremonial duties and community activities. The Office also maintains the Government House Estate, in partnership with the Department of Housing and Public Works. 22 This is the fourth year in office for His Excellency the Honourable Paul De Jersey AC.23 The following table in Schedule 2 of the Appropriation Bill 2017, sets out the proposed appropriation for 2017-18.

Budget 2016-17 Est. Actual 2016-17 Vote 2017-18 Appropriations $’000 $’000 $’000 Controlled Items

Departmental services 6,912 6,805 6,968

Equity adjustment (53) 54 (53)

Administered Items ......

Vote 6,859 6,859 6,915 Source: Appropriation Bill 2017, Schedule 2, p 13.

3.4.1 Budget highlights – Office of the Governor 2017-18 During 2017-18, the Office of the Governor will continue to provide support for the:  Governor’s constitutional and legal responsibilities of office through high quality policy advice and executive support  Governor’s ceremonial responsibilities of office, in particular the Australian Honours and Awards System and other ceremonial parades and military ceremonies  Governor’s program of civic engagements at Government House within the community along with educating the community about the role of the Governor and promoting community organisations through His Excellency’s patronage

20 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 81. 21 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 90. 22 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 90. 23 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 90.

Finance and Administration Committee 11 2017-18 Budget Estimates – Appropriation Bill 2017

 Governor’s commitment to promote Queensland’s produce, culture, trade and business initiatives  hosting of significant visitors to Government House  Governor and Acting or Deputy Governor at times when the Governor acts as Administrator of the Commonwealth  efficient and effective stewardship of Government House and the Estate.24

3.5 Public Service Commission The Public Service Commission (PSC) is established under the Public Service Act 2008 (Qld). The PSC provides independent advice to government and collaborates across the public sector to achieve its vision of a high performing, future-focused public sector for Queensland, and deliver on its strategic objectives to:

 provide effective stewardship of the public sector: manage an employment framework that drives performance and accountability; and foster constructive workplace cultures

 develop public sector capability: support agencies to identify and develop a diverse pipeline of future leaders; build a cohort of inspiring executive leaders; and promote a culture of personal and organisational improvement

 enable an agile, future-focused public sector: increase sector confidence and readiness to manage the changing nature of work; support agencies to embrace change; and promote innovation across the sector.25

The Integrity Commissioner is administratively included within the PSC and is responsible for providing advice on integrity and ethics matters, and for maintaining the Queensland Register of Lobbyists. The Integrity Commissioner is an independent officer of the Queensland Parliament who reports at least twice a year to the Finance and Administration Committee of the Parliament.26 Mr Richard Bingham was replaced by Dr Nikola Stepanov as Integrity Commissioner on 1 July 2017. The PSC’s key priorities for 2017-18 will be to partner with agencies to build workforce and leadership capability to deliver government objectives, and connect agencies to support a collaborative response to current and future challenges.27 Key initiatives include preparing for the workforce of the future by implementing strategic initiatives in the Ten Year Strategic Human Capital Outlook and the three year strategic roadmap, developing leaders through brokering high quality leadership programs and creating leadership talent pipelines,

24 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 91. 25 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 101. 26 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 101. 27 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 101.

12 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017 and upgrading technology systems to improve departments’ access and use of strategic workforce data.28 The following table in Schedule 2 of the Appropriation Bill 2017, sets out the proposed appropriation for 2017-18.

Budget 2016-17 Est. Actual 2016-17 Vote 2017-18 Appropriations $’000 $’000 $’000 Controlled Items

Departmental services 14,284 12,715 14,871

Equity adjustment ......

Administered Items ......

Vote 14,284 12,715 14,871 Source: Appropriation Bill 2017, Schedule 2, p 14.

3.5.1 Issues raised at the public hearing – Public Service Commission During the public hearing the committee inquired about process for the appointment of the Public Service Commissioner.

3.6 Queensland Audit Office The Queensland Audit Office (QAO) is the independent auditor of the Queensland public sector. The QAO conducts financial and performance audits to provide public confidence in the reliability of public sector entity financial statements and operating performance. Through its audit work, the QAO makes recommendations that promote accountability and transparency in government, and improvements in service efficiency and effectiveness.29 The QAO's financial audit services are paid for directly by public sector entities, while performance audit services are paid for by parliamentary funding.30 During 2016-17, a strategic review of the QAO was conducted. The QAO welcomed this review as an opportunity to have its position and performance independently evaluated. The Strategic Review of the Queensland Audit Office 2017 report was tabled in Parliament on 23 March 2017. The overall conclusion of the reviewers was that the QAO is fundamentally sound, and that it is a valuable part of the Queensland public sector. The QAO accepts all of the recommendations within its control and supports those recommendations made to other parties by the strategic reviewers.31

28 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, pp 101-102. 29 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 117. 30 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 117. 31 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 117.

Finance and Administration Committee 13 2017-18 Budget Estimates – Appropriation Bill 2017

The following table in Schedule 2 of the Appropriation Bill 2017, sets out the proposed appropriation for 2017-18.

Budget 2016-17 Est. Actual 2016-17 Vote 2017-18 Appropriations $’000 $’000 $’000 Controlled Items

Departmental services 6,629 6,608 6,670

Equity adjustment ......

Administered Items ......

Vote 6,629 6,608 6,670 Source: Appropriation Bill 2017, Schedule 2, p 14.

3.6.1 Budget highlights – Queensland Audit Office 2017-18 In 2017-18, QAO will:  pursue opportunities to strengthen independence and autonomy  strengthen stakeholder relationships and client knowledge  adapt audit approaches to provide greater value to its stakeholders  develop its workforce to meet client service needs  apply a continuous improvement approach within QAO  embed its values of engage, challenge, deliver and care.32

3.7 Minister for the Arts As Minister for the Arts, the Premier also has responsibility for the following service areas and statutory authorities:  Arts Queensland (service area within DPC)  Queensland Art Gallery (the Gallery)  Queensland Museum (QM)  Queensland Performing Arts Trust (QPAT)33 Arts Queensland Arts Queensland (a division within DPC) manages investment programs that support individual artists and arts and cultural organisations, supports capital infrastructure that provides public spaces for arts production and engagement, maintains Queensland’s premier cultural assets, and provides arts and cultural policy and strategy advice to the Queensland Government.34

32 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 118. 33 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, pp 1-3. 34 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 10.

14 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

Queensland Art Gallery The Queensland Art Gallery / Gallery of Modern Art (‘the Gallery’) is a single institution located across two adjacent riverside buildings in the Cultural Precinct at Southbank, Brisbane.35 The Gallery's strategic objectives are to build Queensland's globally significant collection and deliver compelling exhibitions, connect people with the enduring power of art and ideas, and build partnerships and organisational capability to deliver the best value for Queensland. The internationally renowned Asia Pacific Triennial of Contemporary Art (APT) exhibition series, and the significant holdings of the contemporary art of the region built as a result of the APT, place the Gallery at the forefront of contemporary art in the Asia Pacific region.36 Queensland Museum Queensland Museum (QM) is the custodian of the State’s natural and cultural heritage, charged with caring for and building the State Collection and curating and creating experiences that explore unique Queensland stories, the natural environment and cultural heritage. QM does this through its network of seven public museums, and through outreach into Queensland communities.37 Key priorities for QM include maintaining a state-wide broad and dynamic program, conservation and management of the collection, sustaining a core of scientific and technical expertise capable of addressing issues critical to Queensland’s cultural and natural environment, and growing and diversifying income streams to ensure financial sustainability.38 Queensland Performing Arts Trust The Queensland Performing Arts Trust (QPAT) manages Queensland’s flagship performing arts venue – the Queensland Performing Arts Centre (QPAC). 39 Key priorities for QPAT include being an inclusive space, accessible to people of all abilities and cultural backgrounds, connecting regional Queenslanders with arts experiences through digital platforms and partnerships, expressing and sharing the stories and heritage of our diverse communities through live performance, actively growing cultural tourism through a full and rich program, including seasons exclusive to Brisbane, and initiating and participating in exchanges of creative work, technical skills and knowledge with local and international partners.40

35 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 55. 36 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 55. 37 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 63. 38 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 63. 39 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 72. 40 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 72.

Finance and Administration Committee 15 2017-18 Budget Estimates – Appropriation Bill 2017

3.7.1 Budget highlights – Arts 2017-18 In 2017-18, in the portfolio area of the Arts, the Queensland Government will: Arts Queensland41  commit $6.5 million over four years to support Indigenous and regional arts initiatives to enable increased community arts activities across the State  invest $2.1 million to implement a dedicated arts incubator space for start-up Indigenous performance companies and to invest in new dance commissions performed at the Cairns Centre of Contemporary Arts and within Indigenous communities  provide funding of $4.4 million to transform the Sciencentre at the Queensland Museum (of a total Queensland Government investment of $9.4 million) into a cutting-edge, interactive Science, Technology, Engineering and Mathematics (STEM) centre to inspire the next generation of Queenslanders  provide $17.5 million over four years for an Arts Infrastructure Investment Fund administered under the new Arts Infrastructure Investment Framework, which will prioritise infrastructure projects on State owned arts and cultural facilities  continue to invest $12.8 million through contestable funding programs including the Organisations Fund, Queensland Arts Showcase Program and Playing Queensland Fund. Queensland Art Gallery42  present two blockbuster exhibitions — ‘Marvel: Creating the Cinematic Universe’ (an international exclusive curated by the Gallery in collaboration with Marvel Entertainment) and an exhibition by leading contemporary Australian artist Patricia Piccinini which will include large-scale commissions and a Children’s Art Centre project  present Australia’s first substantial exhibition of works by internationally renowned German painter Gerhard Richter, one of the world’s most influential living artists  unveil a permanent architectural light installation by high-profile American artist James Turrell, which will illuminate the Gallery of Modern Art’s glass façade  work in partnership with the National Gallery of Singapore to present a major exhibition of work by Japanese artist Yayoi Kusama  open newly conceptualised and extensively refurbished Australian collection galleries in the Queensland Art Gallery, following the completion of a significant capital works project to expand the Gallery’s collection storage facilities  commence the regional Queensland tour of ‘A World View: The Tim Fairfax Gift’ and deliver a Kids on Tour program to regional and remote venues throughout the State  showcase work by Indigenous Australian artists through exhibitions such as ‘Sung into Being: Aboriginal Masterworks 1984–94’ and ‘Time and Tides: Art in the Torres Strait Islands’.

41 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 10. 42 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 55.

16 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

Queensland Museum43  continue to implement the four year $7 million investment to maintain the State's collections and address critical maintenance at regional campuses and the storage facility at Hendra  continue to implement the four year $4.5 million investment with matched funding raised from sponsorship support to update and replace permanent exhibitions to ensure preservation of collections, increase attendance levels and provide compelling experiences for visitors  transform the Sciencentre into a cutting-edge, interactive facility to inspire the next generation of Queenslanders in STEM  present major exhibitions including Gladiators: Heroes of the Colosseum and Ancient Lives from the British Museum, and deliver new programs across all our regional campuses  deliver museum services across Queensland through our Museum Development Officer network  deliver the third World Science Festival Brisbane in March 2018, with engagement across Queensland  develop further partnerships with leading universities to enhance research capability  support the Advance Queensland initiative which aims to make Queensland one of the leading states for student literacy and numeracy by 2020 by delivering new STEM projects across all campuses of the museum. Queensland Performing Arts Trust44  host two Brisbane exclusive productions by The Royal Ballet, and a wide range of free and low-cost programs across Queensland as part of the complementary residency program  partner with local councils, including Cairns Regional Council, to deliver a range of outstanding live performances to their regions  attract locals and cultural tourists through an engaging program at QPAC during the 2018 Gold Coast Commonwealth Games  present five major musicals including Disney Theatrical Productions’ hit Broadway musical Aladdin  support the aspirations of Queensland’s performing arts companies through collaborating in co-presentations and offering technical expertise and market intelligence  continue to provide emerging artists with opportunities, including the popular free Green Jam program  grow the 2018 Out of the Box Festival for children in Brisbane and other locations, to involve children in arts programs, explain our place in the world and share stories from our communities

43 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 63. 44 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 72.

Finance and Administration Committee 17 2017-18 Budget Estimates – Appropriation Bill 2017

 publish QPAC’s biannual magazine 'Story', present exhibitions and develop content through QPAC’s Creatory portal to enhance deeper engagement with the performing arts. Arts Queensland has a planned capital outlay of $20.2 million in 2017-18. This involves priority infrastructure projects across State owned arts and cultural facilities through the Arts Infrastructure Investment Fund. It also includes the renewal and replacement of large critical infrastructure items at the South Bank Cultural Precinct, including the creation of a new permanent Anzac Legacy Gallery at the Queensland Museum as part of Queensland's Anzac Centenary commemoration program 2014-18. This figure also includes $1.4 million for the refurbishment of the Cremorne Theatre.45

3.7.2 Issues raised at the public hearing – Arts Issues raised by the committee in relation to the Arts portfolio included:  the reasons for the higher than expected/targeted visitor numbers to the Gallery in 2016-17  the achievements of Screen Queensland in 2016-17, and its plans for industry attraction in the coming financial year  the nature of the planned investments into the QM’s critical infrastructure, and  the status of the business case for the development of the second arts theatre in Brisbane

4. Treasurer and Minister for Trade and Investment The agencies, services and statutory authorities which are the responsibility of the Treasurer and Minister for Trade and Investment are as follows:  Queensland Treasury – five service areas  Motor Accident Insurance Commission/ National Defendant  Queensland Productivity Commission  Trade and Investment Queensland46

4.1 Queensland Treasury Queensland Treasury's vision is to grow the Queensland economy and improve the wellbeing of all Queenslanders. It aims to support this through providing the Government with trusted, impartial advice on State finances and the economy, innovative revenue and commercial services and support for fair, safe and productive workplaces. This includes managing the State's finances in line with the Government's fiscal principles listed in the Charter of Fiscal Responsibility.47 Queensland Treasury contributes to the Queensland Government’s objectives for the community by partnering with agencies to provide policy and performance advice and support which contribute to delivering government priorities, while sustainably managing the annual State Budget.48 The department contains five service areas:

45 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of the Premier and Cabinet, Office of the Governor, Public Service Commission, Queensland Audit Office, 2017, p 28. 46 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, pp 1-2. 47 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 3. 48 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 3.

18 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

 Service area 1: Economic and Fiscal Coordination  Service area 2: Agency Performance  Service area 3: Commercial Services  Service area 4: Revenue Management  Service area 5: Industrial Relations49 The Minister for Employment and Industrial Relations, Minister for Racing and Minister for Multicultural Affairs has responsibility for employment initiatives within the Economic and Fiscal Coordination service area and also for the Industrial Relations service area. Appropriations for Queensland Treasury also fund the operation of statutory bodies the Motor Accident Insurance Commission (MAIC) / Nominal Defendant and the Queensland Productivity Commission. Economic and Fiscal Coordination The Economic and Fiscal Coordination service area provides economic and fiscal strategy advice which promotes economic growth for the benefit of all Queenslanders, including coordination of the State Budget to deliver the Government’s policy objectives.50 This service area’s key functions include:  delivering whole-of-government economic, fiscal, revenue, financial management, accounting, policy and reporting services to the Under Treasurer, Treasurer and CBRC  providing strategic economic policy advice, economic impact modelling and data to inform public policy and decision making across the Queensland Government to promote economic growth and job creation  providing advice on employment and skilled migration, and managing the delivery of relevant programs  coordinating the development of the State Budget, and managing the State’s debt and balance sheet in accordance with Government policies  providing the statutory function of the Queensland Government Statistician to deliver statistical, demographic research and program evaluation services across government.51 Agency Performance The Agency Performance service area provides advice and support in relation to line agency performance and public policy development which promotes economic growth for the benefit of all Queenslanders.52 This service area’s key functions include:  providing economic and fiscally responsible public policy analysis and advice to line agencies to support Government priorities

49 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 1. 50 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 4. 51 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 4. 52 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 7.

Finance and Administration Committee 19 2017-18 Budget Estimates – Appropriation Bill 2017

 managing public policy, fiscal and economic issues across the public sector  partnering with line agencies to optimise performance, balancing service delivery within budget parameters  managing and coordinating intergovernmental fiscal relations issues  managing whole-of-government banking and payment services contracts.53 Commercial Services The Commercial Services division supports economic growth in Queensland by providing timely financial and commercial advice to government and by leading major commercial government projects to achieve time, cost and quality objectives.54 This service area's key functions include:  implementing the Government's revised Market-Led Proposal framework to streamline the assessment process  administering the Government’s Market-Led Proposal framework, including assessing and negotiating proposals submitted from the private sector under this process  providing commercial and financial advice to Government in relation to infrastructure projects  managing the procurement of privately financed major public infrastructure and service projects  working with government agencies to realise the contracted value of major public infrastructure projects through the delivery phase  providing policy advice on private sector investment in Queensland  ensuring rigorous project procurement across government through administration of the State’s project assurance framework  assessing government-owned corporations' (GOCs) capital investments and driving a focus on maximising performance and rates of return through improved commercial focus.55 Revenue Management The Revenue Management service area’s objective is to enable government, business and community prosperity in Queensland through best practice revenue collection, grants management and penalty debt management.56 This service area administers a revenue base of around $14 billion by delivering and administering simple, efficient and equitable revenue management services for State taxes and royalty revenue. Additional responsibilities include undertaking revenue compliance, grant schemes and debt recovery and enforcement activities for the State.57

53 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 7. 54 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 8. 55 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 8. 56 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 11. 57 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 11.

20 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

This service area achieves its revenue responsibilities by:  adopting leading e-business practices with high level client support and firm and fair enforcement  providing ongoing legislation and revenue policy advice to the State Government  further progressing the development and implementation of the Revenue Management System to support innovative business practices  developing and implementing targeted, fair and efficient infringement enforcement strategies  leading end-to-end penalty debt management improvements through collaborative stakeholder engagement  providing business intelligence and behaviour insights to inform enforcement and debt recovery policy and strategies.58 Industrial Relations This service areas objectives are to increase workplace safety and electrical safety, help Queensland business, Queensland Government entities, the community and not-for-profit sector to operate effectively, and make Queensland workplaces a fairer and more just place to work.59 The service area is examined in further detail in this report’s consideration of Estimates for the Minister for Employment and Industrial Relations, Minister for Racing and Minister for Multicultural Affairs (see section 5.1).

4.1.1 Budget Highlights – Queensland Treasury 2017-18 Queensland Treasury’s key priorities for 2017-18 include: Economic and Fiscal Coordination60  delivering and implementing the 2017-18 Queensland Budget and new service delivery priorities  continuing to provide analysis and advice on options to reduce debt as part of the Government’s Debt Action Plan  developing and delivering employment policies and programs including the Jobs and Regional Growth Package, Back to Work Program (including the Youth Boost), and North Stradbroke Island Workers Assistance Package  delivering the Business Development Fund, in collaboration with Queensland Investment Corporation (QIC), to facilitate a sustainable private sector market for venture capital in Queensland  providing timely information and advice on the economy and labour market  delivering on the Government’s Economic Framework, including, for example, support of the Trading Hours Review

58 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 11. 59 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 13. 60 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 4.

Finance and Administration Committee 21 2017-18 Budget Estimates – Appropriation Bill 2017

 remaining responsive to the statistical needs of Government to inform policy development on key priorities  establishing a dedicated crime statistics function within the Queensland Government Statistician's Office  updating the Queensland Government Population Projections with 2016 Census benchmarks for the State and its regions for use in service delivery and infrastructure planning. Agency Performance61  providing fiscal and policy advice to Government in development of State Budget and delivery of service delivery priorities  implementing Queensland Treasury's Agency Partnership Approach, facilitating improved engagement and strategic collaboration with client agencies to assist in providing Government with better policy options  delivering more efficient, client-focussed payment and transaction services, in partnership with agencies  engaging with the Commonwealth Grants Commission on the 2020 Methodology Review to ensure Queensland receives a fair share of GST. Commercial Services62  procuring privately financed major public infrastructure and services, including Brisbane International Cruise Terminal with an estimated value of $100 million, Queensland Aquarium and Maritime Museum with an estimated value of $100 million (assisting the Department of State Development), Mount Cotton Driver Training Centre with an estimated value of $15 million (assisting the Department of Transport and Main Roads), and the Prince Charles Hospital Carpark with an estimated value of $54 million  providing commercial and financial advice to major Government projects, such as Cross River Rail ($5.4 billion), Integrated Resort Developments such as Queen's Wharf Brisbane ($3 billion), Herston Quarter ($1.1 billion), Advancing Our Cities and Regions, Projects progressing through the Building Queensland pipeline  working with stakeholders to progress energy and water sector reforms in line with Government objectives, and to further understand Queensland’s requirements for future large-scale water infrastructure  delivering the Queensland Government’s financial assurance framework reform in conjunction with the Departments of Environment and Heritage Protection and Natural Resources and Mines  collaborating with the Department of Energy and Water Supply on options to achieve the Government’s commitment to a 50 per cent renewable energy target  working with Queensland Rail, the Department of Transport and Main Roads and the Citytrain Response Unit on the implementation of recommendations of the Train Crewing Practices Commission of Inquiry  engaging with key stakeholders on the review of South East Queensland bulk water prices

61 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 7. 62 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, pp 8-9.

22 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

 working with the Department of Energy and Water Supply to help facilitate the transfer of SunWater channel irrigation schemes to local ownership and management where agreed between Government and stakeholders, and continue further investigations where required  in conjunction with the Queensland Productivity Commission and other key stakeholders, developing a 2017-18 work program for the Commission and assisting in the preparation of Government responses to Commission reports  investigating ways to improve the Queensland Competition Authority Act 1997 to place a stronger focus on achieving greater economic efficiency of regulated assets  engaging the private sector to develop investment opportunities in Queensland through the Government’s enhanced Market-Led Proposals guidelines  leveraging investment from businesses to assist them to grow and expand in Queensland through the Jobs and Regional Growth Fund  delivering Queensland’s first two Social Benefit Bonds which address the over representation of Aboriginal and Torres Strait Islander children in out-of-home-care and reduce youth reoffending rates. Revenue Management63  continuing to secure the integrity of the State revenue base including implementing the Office of State Revenue Transformation Program  progressing the development of digital service delivery options for clients, including finalising the new State Penalties Enforcement Registry (SPER) software solution implementation to enable better case management  continuing to develop a client-centric service, including completing the SPER Transformation Program to establish a new business model which is customer centric and provides a whole- of-government approach to penalty debt management  implementing a new state-wide program involving alternative non-monetary options for customers experiencing hardship in the payment of SPER debts, including the implementation of Work and Development Orders (WDO) in partnership with government and community service providers. The following table taken from the Appropriation Bill 2017 compares the appropriations for Queensland Treasury for 2016-17 and 2017-18:

Appropriations Budget Est. Actual Vote 2016–2017 2016-2017 2017 - 2018 $’000 $’000 $’000 Controlled Items Departmental services 251,486 240,396 265,008 Equity adjustments 11,058 10,451 14,660 Administered Items 5,762,535 6,868,219 6,194,203 Vote 6,025,079 7,119,066 6,473,871 Source: Appropriation Bill 2017, Schedule 2, p 16.

63 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 11.

Finance and Administration Committee 23 2017-18 Budget Estimates – Appropriation Bill 2017

Queensland Treasury's capital purchases for 2017-18 will be $13.8 million which includes:  $504,000 in capital expenditure to improve compliance, client interaction and service delivery. This will prepare the Office of State Revenue (OSR) to deliver the planned Transformation Program to implement improved revenue management services into the future  $11.7 million in capital expenditure to implement OSR Transformation Program. This will enable the delivery of an upgraded ICT platform and support improved revenue management services into the future  $1.6 million for ongoing asset replacement primarily for the Office of Industrial Relations, including leasehold improvements and the replacement of information technology software, hardware and office equipment.64 The departmental income statement also identified total expenses estimated to be $391.5 million in 2017-18, an increase of $17.7 million from the 2016-17 Estimated Actual. This increase mainly relates to the Office of State Revenue (OSR) Transformation Program to enable the delivery of an upgraded ICT platform and support improved revenue management services into the future. Further contributing factors are delivery costs associated with the Back to Work Program and additional expenditure resulting from annual wage increases. The increases are partially offset by the assumption that only approved reimbursable projects managed by Commercial Services have been budgeted for in 2017-18. Government projects are allocated to Commercial Services progressively and funding models and accurate budgeting outcomes will only be available when projects are approved and allocated.65 The decreases in expenses in 2018-19 and 2019-20 are primarily due to the reduction in costs over time for the implementation of the alternate service delivery model for the State Penalties Enforcement Registry. The further decrease in expenses in 2020-21 reflects the reductions in costs over time for the OSR Transformation Program.66

4.1.2 Issues raised at the public hearing – Queensland Treasury Issues raised by the committee in relation to Queensland Treasury included:  Actuarial approaches to valuing a pension or superannuation fund and estimating surplus of funds  The Actuarial investigation of the state public sector superannuation scheme (QSuper) as of 30 June 2016 Report, and risks and liabilities based on different measures  The economic plan of the government to support growth of the Queensland economy  Fiscal strategies, debt reduction and the impact on the budget  Government engagement with the private sector for business investment  QSuper, Government use of funds, the funding insolvency standards, and expected returns  Measures implemented by Government to lower electricity prices and the impact of ownership of electricity assets  Budget management, government owned assets and management of taxation

64 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 22. 65 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 24. 66 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 24.

24 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

 The impact of Tropical Cyclone Debbie on the budget and the economic plan for managing that impact  The merger of Energy Super and Equip Super, and engagement between different parties including stakeholders, and changes in forecast savings relating to the merger of Energy Super and Equip Super  Equity in electricity network businesses and the regearing exercise  ACCC investigation into electricity generators and pricing practices, and the National Energy Market rules as they apply to government owned generator companies and private businesses  Dividends from the government owned electricity generators, capping of electricity price increases and exportation of electricity interstate  The Works for Queensland program and job creation numbers  Allocation of federal funding to Queensland to deliver services and projects  The impact of the Government’s economic growth plan in driving jobs growth, including through programs such as Back to Work  Economic growth and support for jobs, casual and part-time employment, and Government measures to support Queenslanders to obtain employment, including full-time employment  Use of funds from government owned energy corporations, collection of royalties for the Adani Carmichael mine project and the net dollar benefit of royalties received from the LNG industry  The cost to stage estimates, including preparation by departments  The progress of implementing the new SPER ICT system, including the status of costs and timeframe for implementation  Introduction of work development orders and the impact on the implementation on the SPER ICT system  The current SPER debt level  Measures to address cost-of-living pressures particularly for seniors and concession card holders, including subsidy schemes, rental rebates and home assistance  The Advance Queensland program and support for entrepreneurship in Queensland  Reduction in Government debt through the Government’s Debt Action Plan in comparison to previous forecasts  Government measures to drive private sector jobs growth in Queensland  Status of the bond for Aboriginal and Torres Strait Islander children in out-of-home care and the reduction in youth offending rates  The Government’s plan to balance Government revenue growth and expenses growth  Engagement between Treasury Queensland and Adani with respect to royalties for the Carmichael Mine Project  Origins of the Government’s market-led proposal guidelines The Treasurer and Minister for Trade and Investment undertook to provide responses to questions taken on notice in relation to five matters which respectively concerned the state public sector superannuation scheme, use of private email accounts for ministerial communication, efficiency savings for the merged energy corporations, equity withdrawn from the electricity network

Finance and Administration Committee 25 2017-18 Budget Estimates – Appropriation Bill 2017 businesses, and dividends received from the energy generators. Responses to these matters are included in a volume of additional information tabled with this report.

4.2 Motor Accident Insurance Commission / Nominal Defendant The Motor Accident Insurance Commission (MAIC) and the Nominal Defendant statutory bodies share the vison of ensuring financial protection that makes Queensland stronger, fairer and safer. To deliver this protection:  MAIC's role is to regulate and improve Queensland's Compulsory Third Party (CTP) insurance scheme and manage the Motor Accident Insurance and Nominal Defendant funds  the Nominal Defendant's role is to compensate people who are injured as a result of negligent driving of unidentified motor vehicles and motor vehicles with no CTP insurance, and act as an insurer of last resort by meeting the claim costs of any licensed insurer who may become insolvent.67 Key achievements for MAIC / Nominal Defendant for 2016-17 include:  contributing to the Queensland's Personalised Transport Horizons reforms ensuring Queenslander's have safe, reliable, and affordable personalised transport services and a sustainable and competitive industry to deliver them  completing a review of Queensland's CTP scheme including engaging with key stakeholders to ensure the affordability, efficiency and ongoing sustainability of the scheme and to delivering sustainable savings to motorists  establishing a road safety innovation fund to invest in research and targeted initiatives aimed at reducing incidence of road traffic crashes.68 MAIC and the Nominal Defendant's key priorities for 2017-18 include:  implementing the recommendations of the CTP scheme review, including the immediate progression of seven recommendations and the further investigation of five recommendations to provide for greater scheme efficiency and affordability  exploring opportunities that position MAIC and the CTP scheme to manage future innovation and disruption  continuing to support a culture of innovation and improvement in service delivery within MAIC, Nominal Defendant and across the CTP scheme.69 The following table provides a summary of the MAIC budget for 2017-18 in comparison to 2016-17.70

Agency 2016-17 2017 - 18 $’000 $’000

Motor Accident Insurance Commission 26,448 23,874

67 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 37. 68 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 37. 69 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 37. 70 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 40.

26 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

4.3 Queensland Productivity Commission The Queensland Productivity Commission (QPC) is an independent statutory body established under the Queensland Productivity Commission Act 2015. It provides independent economic and policy advice to the State with the goal of increasing productivity, driving economic growth and improving living standards in Queensland.71 In 2016-17, the QPC commenced two major inquiries as directed by the Treasurer:  Manufacturing in Queensland: to identify options to improve the sector’s productivity and competitiveness. An issues paper was released for public consultation in October 2016 and a draft report was released in May 2017. The final report is scheduled to be delivered in August 2017.  Service delivery in remote and discrete Aboriginal and Torres Strait Islander communities: to consider how available resources can be best used to improve outcomes that meet the needs of discrete and remote Aboriginal and Torres Strait Islander communities. A consultation paper was released in March 2017. A draft report is due for release in August 2017, with a final report to be delivered in November 2017.72 Five competitive neutrality complaints were investigated and reports completed in 2016-17.73 The QPC provided advice, guidance and assessment of approximately 300 regulatory proposals to ensure impacts are carefully and fully assessed. In August 2016, the Queensland Government Guide to Better Regulation replaced the Regulatory Impact System Guidelines (July 2013). The Guide will assist agencies to develop regulation that is necessary, effective and efficient and has clear benefits for Queensland. It streamlines the assessment of low risk, low impact regulatory proposals by having departments self-assess. The QPC has a new audit role evaluating the success of departmental self-assessments.74 In February 2017, advice was provided to the Government on the Red Tape Advisory Council recommendations to identify models of regulation that can reduce the burden of regulation.75 In 2017-18, the QPC will contribute towards the Queensland Government's objectives by continuing to provide independent, expert policy advice on issues relating to productivity, best practice regulation and competitive neutrality.76 The QPC’s 2017-18 budget of $45.3 million in Queensland Treasury administered funding compares to administered funding of $36 million budgeted in 2016-17. The increased level of funding reflects greater employee expenses associated with a staff increase of 9 FTEs in the 2017-18 Budget and increased supply and service costs associated due to the launch of the Trade and Investment Strategy.77

71 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 50. 72 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 50. 73 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 50. 74 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 50. 75 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 50. 76 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 50. 77 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, pp 57-58, 61.

Finance and Administration Committee 27 2017-18 Budget Estimates – Appropriation Bill 2017

4.4 Trade and Investment Queensland Trade and Investment Queensland (TIQ) is the Queensland Government's dedicated global business agency for trade and investment promotion. TIQ uses its global and regional office networks to identify international export opportunities, to promote Queensland exporters to potential customers, to identify international investors for foreign direct investment and to promote Queensland as an ideal destination offering diverse sectoral and investment solutions.78 Through the whole-of-government Trade and Investment Strategy, TIQ seeks to promote Queensland capabilities and opportunities to the world and support our businesses to succeed in global markets.79 TIQ's mission program team supports ministerial trade and investment missions and official visits including those for the Governor and the Leader of the Opposition. Programs are developed based on government priorities, market opportunities and business capability.80 TIQ led the development of two major strategies in 2016-17. The first, the International Education and Training Strategy to Advance Queensland 2016-2026, articulates the Queensland Government’s vision for the International Education and Training industry. It provides a framework for industry and government to work together to grow the industry and enhance the State’s reputation as a leading global provider of international education and training services. The second strategy, the Advancing Trade and Investment – Queensland Trade and Investment Strategy 2017-2022 aims to use Queensland's natural and acquired strengths to tap into opportunities in international markets.81 These two strategies include numerous initiatives which will be used to progress trade and investment opportunities throughout the State and across the globe and help attain the performance targets for 2017-18.82

4.4.1 Issues raised at the public hearing – Trade and Investment Queensland Issues raised by the committee in relation to TIQ included:  The strategic goals and purpose of the Queensland Trade and Investment Strategy 2017-2022  Consultants engaged by the Trade and Investment Commission in the development of the Queensland Trade and Investment Strategy, the process for engaging those consultants and the value and scope of work undertaken by the consultants  Attendance of Ministers at the annual Premier of Queensland’s Export Awards in 2015 and 2016  Consultation with Trade and Investment Queensland in relation to remarks made by the former Trade Minister that could impact on export trade  The status of, and process for, the recruitment for the role of Agent-General in London  Attendance of business delegates on ministerial trade missions since 2016

78 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 52. 79 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 52. 80 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 52. 81 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 52. 82 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 52.

28 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

 The work of Trade and Investment Queensland, with other government agencies, in a number of industries including biofuels, agriculture and mining technology  Collaboration between Trade and Investment Queensland and other state government agencies to attract foreign investment in Queensland.

5. Minister for Employment and Industrial Relations The Minister for Employment and Industrial Relations, Minister for Racing and Minister for Multicultural Affairs has the following ministerial and portfolio responsibilities:  Queensland Treasury – Industrial Relations service area and employment initiatives within the Economic service area  Department of National Parks, Sport and Racing – Racing service area  Queensland Racing Integrity Commission, and  Department of Communities, Child Safety and Disability Services – the Multicultural Affairs portfolio, within the Community Services service area.

5.1 Queensland Treasury – Employment and Industrial Relations The Industrial Relations service area contributes to a fair, safe and just Queensland through a range of activities, including:  delivering workplace health and safety services  providing advice and standards to keep Queenslanders safe at work  developing standards and strategies for electrical safety and improved electrical safety performance  delivering workers’ compensation services  managing industrial relations framework and public sector bargaining.83 The Office of Industrial Relations works collaboratively with business, the community, government entities and the not-for-profit sector to reduce regulatory burden and make it easier and cheaper to run a business.84 In 2017-18, $145.8 million in controlled departmental expenses has been budgeted for the service area, compared to a controlled service area expenses budget of $141.4 million in 2016-17. Contributing to the increase are costs associated with the Workers' Compensation Services and Workplace Health and Safety Queensland, which are funded by additional funding from WorkCover Queensland.85

83 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 13. 84 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 13. 85 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, pp 18-19.

Finance and Administration Committee 29 2017-18 Budget Estimates – Appropriation Bill 2017

5.1.1 Budget highlights – Employment and Industrial Relations 2017-18 The service area’s key priorities for 2017-18 include:  implementing recommendations from the Best Practice Review of Workplace Health and Safety Queensland  conducting the five yearly review of the operation of the workers’ compensation scheme as the Workers’ Compensation and Rehabilitation Act 2003  leading and preparing the Government's response to the Parliamentary Committee's Report into Coal Workers’ Pneumoconiosis (CWP) and implementation of recommendations regarding workers’ compensation changes  continuing to progress initiatives under the Government’s Improving Safety for Queenslanders at Work Policy, including conducting targeted compliance and advisory activities for priority hazards and industries  improving work health and safety and return to work outcomes for high risk industry subsectors and the priority work-related disorders  implementing the recommendations of an independent review of electrical licensing including enhancing the requirements for electrical contractor and electrical worker competence, licence eligibility, and continuing professional development  continuing initiatives to support the safe introduction of smart grid and renewable energy technologies  taking action in response to recommendations from the Trading Hours Review  implementing legislative changes to respond to the issues raised in the parliamentary inquiry in the labour hire industry  leading the Queensland Government submission to the National Wage and State Wage Cases.86

5.1.2 Issues raised at the public hearing – Employment and Industrial Relations Issues raised by the committee in relation to the portfolio of employment and industrial relations included:  Entitlement to Back to Work Program  Youth unemployment rates and measures  Measurement of success in employment policies  Consultation undertaken by the Minister with industry in relation to proposed changes to the Back to Work program and youth jobs policies in the last six months  Targets met by the Back to Work program  Extension and key features of the Back to Work program to South-East Queensland  Prosecution launched in relation to the Department of Transport about the Ripley overpass and risks to health and safety in relation to asbestos  How the Back to Work program has worked for different demographic groups

86 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 13.

30 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

 Information on the Sticking Together project piloted in Cairns, Townsville and Logan  Advice provided by Under Treasurer to the Minister and the government with respect to the Back to Work program being extended from regional Queensland to South-East Queensland  Increase in targets for workplace incidents  Workplace Health and Safety budget figures clarification  Queensland Police no longer participating in Royal Commission into Trade Union Governance and Corruption  Terms of reference and selection panel for new appointments to Work Health and Safety Board and the WorkCover board  Impact of job losses at New Acland Coal Mine and planning for assistance. The Minister for Employment and Industrial Relations, Minister for Racing and Minister for Multicultural Affairs undertook to provide a response to a question taken on notice in relation to public health risks associated with works undertaken on the Ripley overpass. The response to this matter is included in a volume of additional information tabled with this report.

6. Minister for Racing The Minister’s responsibilities for racing are split across service areas within Queensland Treasury (with administrative responsibility for the Queensland Racing Integrity Commission) and the Department of National Parks, Sport and Racing (the Racing service area).

6.1 Queensland Treasury – Queensland Racing Integrity Commission The Queensland Racing Integrity Commission (QRIC) is an independent statutory body which oversees the integrity and welfare standards of racing animals and participants in Queensland.87 The QRIC contributes to the Queensland Government's objectives for the community of creating jobs and a diverse economy and building safe, caring and connected communities through our strategic objectives of:  safeguarding the welfare of animals involved in racing  administering the rules of racing independently, impartially, and consistently  exercising best practice, skills and processes to detect, investigate, and prosecute compliance and integrity breaches  enhancing public confidence in the integrity of Queensland’s racing industry  encouraging people with information about offences in the Queensland racing industry to share what they know.88 The QRIC's key priorities and business objectives are encapsulated in the recently endorsed QRIC Compliance and Enforcement Strategy. This strategy articulates desired welfare and integrity outcomes for the Queensland racing industry and outlines a comprehensive plan for working towards

87 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 62. 88 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 62.

Finance and Administration Committee 31 2017-18 Budget Estimates – Appropriation Bill 2017 these outcomes over the next four financial years. It is the cornerstone of the QRIC’s strategic and operational plans.89 Key initiatives planned for 2017-18 include:  development and delivery of a comprehensive induction and training program for race-day stewards and investigative stewards  establishment of an internal intelligence capability to optimise available QRIC resources  delivery of the Racing Science Centre's Capital Acquisition Plan  improved education and awareness of racing industry participants with regard to their welfare and integrity obligations.90 The budgeted controlled expenses for the QIRC in 2017-18 is $28.1 million. This compares to an estimated actual expenses for 2016-17 of $26.3 million.91 The expenditure increase is mainly due to an increase in employee expenses in 2017-18, based on the Commission operating at full establishment in the next financial year, noting that 2016-17 was the Commission's first year of establishment and staff recruitment has been finalised progressively during the course of the 2016-17 financial year.92

6.2 Department of National Parks, Sport and Racing – Racing service area Within the Department of National Parks, Sport and Racing, the Minister is responsible for the Racing service area.93 The Racing service area administers the Racing Act 2002, provides policy advice to government on matters relevant to the commercial operation and viability of the racing industry and administers programs related to the provision of Queensland Government funding to the racing industry. The Racing service area excludes the Queensland Racing Integrity Commission and Racing Queensland, which are separate statutory bodies.94 Department controlled expenses for the Racing service area in 2017-18 are $33.7 million, compared to budgeted service area expenses (controlled) of $30.5 million in 2016-17.95

6.2.1 Budget highlights – Racing 2017-18  Provide policy advice to the Minister for Racing to support renewal and growth in Queensland’s racing industry  Provide $6 million (of $21 million over four years from 2016-17) for the Country Racing Support Program (CRSP) to support country racing

89 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 62. 90 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 62. 91 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 66. 92 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Queensland Treasury, 2017, p 69. 93 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of National Parks, Sport and Racing, 2017, p 1. 94 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of National Parks, Sport and Racing, 2017, p 8. 95 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of National Parks, Sport and Racing, 2017, p 11.

32 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

 Administer $25 million for racing infrastructure projects across the three codes of racing.96

6.2.2 Issues raised at the public hearing - Racing Issues raised by the committee in relation to the portfolio responsibilities of racing included:  Cost of review into the surface of Eagle Farm and where payment will come from  Response to issues identified in relation to Eagle Farm  Wagering performance targets for the thoroughbred code in 2016-17  Responsible entity for implementation of the Eagle Farm track improvement project, Racing Queensland or Brisbane Racing Club  Redevelopment of Albion Park  Outline of Country Racing Support Program, process for determining projects and process for determining future projects  Whether a charged member of a turf club committee should remain on the committee or resign  Funding for Ipswich Turf Club  Impact of Cyclone Debbie on racing infrastructure  Animal welfare programs operated within QRIC  New announcements relating to body worn cameras for QRIC inspectors for gathering of evidence  Release of five-year infrastructure plan  Consultation by Racing Queensland in relation to harness and greyhound clubs  Selection process for Director of Stewarding and Licensing at QRIC and cost of suspension of Mr Jamie Dart  Investigation of Mr Jamie Dart  Allocation of additional prize money for country racing in 2017-18  Community consultation in relation to Albion Park  Identification of organised crime operations in the racing industry and time frames for charging of persons involved.

7. Minister for Multicultural Affairs

7.1 Department of Communities, Child Safety and Disability Services The Department of Communities, Child Safety and Disability Services aims to enable all Queenslanders to participate in and contribute to a fair, resilient and prosperous State.97 The department’s activities are delivered through three service areas:

96 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of National Parks, Sport and Racing, 2017, p 8. 97 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of Communities, Child Safety and Disability Services, 2017, p 2.

Finance and Administration Committee 33 2017-18 Budget Estimates – Appropriation Bill 2017

 Child and Family Services  Disability Services, and  Community Services.98 Multicultural affairs initiatives are administered by the Community Services service area, which includes Multicultural Affairs Queensland (MAQ). MAQ contributes to social and economic opportunities for people from culturally and linguistically diverse backgrounds across Queensland. Continued funding in 2017-18 of $1 million is provided to support, through the Celebrating Multicultural Queensland grants program, community events and projects that celebrate and promote the benefits of multiculturalism. $2.2 million is provided to support, through the Community Action for a Multicultural Society (CAMS) program, social connectedness for culturally and linguistically diverse individuals and groups.99 The total operating budget allocated for Multicultural Affairs Queensland in 2017-18 is $8.2 million, an increase of 5 per cent over 2016-17.100

7.1.1 Issues raised at the public hearing – Multicultural Affairs Issues raised by the committee in relation to multicultural affairs included:  Applications for Celebrating Multicultural Queensland grants and the criteria for assessment  Members of the grants assessment panel  Number of staff in Community Services that work in Multicultural Affairs Queensland  Functions of Multicultural Affairs Queensland  Staff budget for Multicultural Affairs Queensland  Measurement of building social cohesion campaign  Discussions had by Minister with the Health Minister regarding death of Manmeet Sarma and external expert investigation into the Moorooka bus incident report, and release of report  Community halls for South Sudanese, Congolese and Dinka communities  Initiatives driven as a result of the Multicultural Recognition Act 2016 and creation of Multicultural Queensland Charter, and  Achievements of Celebrating Multicultural Queensland Grants Program.

98 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of Communities, Child Safety and Disability Services, 2017, p 1. 99 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of Communities, Child Safety and Disability Services, 2017, p 11. 100 Queensland Government, Queensland Budget 2017-18 Service Delivery Statements, Department of Communities, Child Safety and Disability Services, 2017, p 11.

34 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

Statement of reservation

The Palaszczuk Labor Government promised a jobs bonanza but gave Queensland a jobs crisis and a budget con job. The details exposed in the Palaszczuk Labor Government budget proves that Queensland under Labor faces higher unemployment, higher costs of living, less projects started and delivered, and more and more job-stifling red tape. Queensland is stagnating, the community is crying out for leadership and we have a government stuck in neutral. Labor’s softly, softly approach is failing Queenslanders, doing nothing is not working and the economy is hurting. Families and businesses are paying more through higher taxes and increased living costs and much needed infrastructure across Queensland is not being built. Instead of leading the way in job creation and job security, Queensland is falling behind the other states. Labor has failed to meet its own employment projections, meaning 80,000 less jobs will be created over the next three years. Youth unemployment is out of control and above 20 per cent in many parts of Queensland and up to 50% in the Outback. Premier The 2017 Estimates hearings again confirmed the Palaszczuk Labor Government is anything but open, accountable and transparent. Under the Premier’s leadership we see Ministers under ongoing investigation for the use of their private email accounts, and Ministers disregarding the Premier’s own direction to refrain from conducting government business on anything other than a protected, ministerial-issue device. The Premier also revealed she was comfortable with Ministers defying her edict made in the Parliament that she expected: “All work related calls and emails to be done through the official phone that is provided to them via MSB. That is my clear expectation. That is what I clearly told cabinet and that is what I expect." When asked about various Ministers contravening this direction, the Premier failed to properly respond and in doing so failed to ensure her ministers did not conduct government business through private email accounts. The Premier did not answer questions on this topic, parroting the words “CCC”. It would appear she is unwilling to accept responsibility for questionable actions of her Ministers. Since Estimates the Member for Yeerongpilly has been forced aside from his Ministerial position and the Premier has been embarrassed into announcing an overhaul of the rules governing the use of emails due to the widespread usage of private emails amongst ministers. The Premier also used Estimates as an opportunity to table and release documents and reports which were long overdue. The only explanation for these documents being made available on the day is because the Premier avoided answering questions, thus escaping proper scrutiny and avoid having to answer questions on the topic during the Estimates hearings. For example, the Working for Queensland survey was conducted between April and May of 2016, yet was only made publicly available on the day of the Estimates hearings - more than a year after the survey was conducted. Perhaps that the Premier had previously refused to make this document available was because the survey shows drops in her department’s satisfaction with organisational leadership and job development. The Premier also released figures on the day of Estimates revealing yet another blowout in the size of the public service, following on from the government’s inability to keep to its own fiscal principle

Finance and Administration Committee 35 2017-18 Budget Estimates – Appropriation Bill 2017 linking growth in the public service to population growth. Again, the constant delay and then dumping of information makes a mockery of the government’s commitment to openness and accountability. This blowout in the public service is now being investigated by professional services firm KPMG, although the Premier refused to answer questions about how much KPMG was being paid to come in and perform a function which is within the remit of the Public Service Commission. The Non-Government members are also disappointed with the ongoing uncertainty in relation to the second performing arts theatre in Brisbane. The Premier said the business case for that project had been received in the first quarter of 2017, yet we are no closer to an investment decision. The Building Queensland pipeline report released the day after the Finance and Administration Committee hearings actually indicates the business case has been delayed and won’t be completed until the final quarter of 2017. In almost three years the Labor Government has just delayed this project, and it’s clear from the answers given at the estimates hearing Brisbane is no closer to getting a much-needed second venue in Brisbane. Treasury and Trade Opposition members again used Estimates to highlight the implicit risks of the government’s $4 billion raid on the public service superannuation fund. It was revealed during estimates hearings that the Treasurer’s own Chief of Staff had used the terminology raid, or “raiding the fund” in internal emails sent to the Treasurer and his office. This serves to show the short-sighted nature of the government’s super plunder. The Treasurer was also forced to admit that he had provided the wrong information to journalists in a press conference where he underestimated the probability of the state public sector super fund going into deficit and potentially requiring a top up from government. The Opposition Members of the FAC are extremely concerned the Treasurer of the state could make such a clear and obvious mistake when conducting a press conference in relation to the latest Actuarial Investigation of the State Public Sector Superannuation Scheme. This mistake is even more astonishing considering the Treasurer and his office were given fair warning of the release of this document and provided with countless briefing notes from Queensland Treasury detailing the contents of the report. It’s clear in the budget papers, and was again made clear through Estimates questioning, that state- owned power generators are gouging profits and this is driving up the cost of power for the people of Queensland. The Australian Competition and Consumer Commission and the Australian Energy Regulator are either investigating or have raised concerns into the practices of the energy generators of which Mr Pitt is a shareholding Minister, yet he refused during estimates to acknowledge an Issue. It also emerged during Estimates that Queensland Treasury’s officers had been unfairly besmirched by the Premier’s office in relation to the Works for Queensland program. It is right for the Under Treasurer and other officers to stand by the original Treasury estimates that this program would create 600 jobs, not the 6,000 jobs as claimed by the Deputy Premier. As the Member for Bundamba highlighted during the Estimates hearings: "The general community out there only understands full-time-equivalent jobs.” The Treasurer agreed - and we would again highlight the disparity between 600 and 6,000 jobs in relation to Works for Queensland program, it’s sad the Deputy Premier won’t admit it. The Non- Government Members were pleased, however, to hear the Treasurer finally admit his stalled market led proposals framework wasn’t working and adopt many of the changes the LNP had already announced in February. Many of the components of the new MLP framework, released on the day of estimates, mirror the LNP’s changes and changes industry stakeholders have long been calling for. It’s disappointing it’s taken the government so long to act on its less than one per cent success rate - but the LNP Members of the FAC are happy that its policy and the cries for change have finally prompted action from a Treasurer that has thus far failed to admit his failures in this field.

36 Finance and Administration Committee 2017-18 Budget Estimates – Appropriation Bill 2017

In relation to trade, it was revealed that Labor mate Craig Emerson had been employed to work on the Trade and Investment Queensland review. With the total cost of the contract in which he was involved totalled at more than $80,000. Employment and Industrial Relations On the Minister’s watch and according to the May 2017 regional labour force statistics released by Queensland Treasury, employment has decreased in the last year, unemployment has increased in the last year and more people have given up looking for work in the last year. It’s not a great record from the Employment Minister, who may be more appropriately entitled as the Unemployment Minister. According to the Minister, last year South-East Queensland jobseekers were left out of the Back to Work program because of the 'unique employment challenges facing regional Queensland’. This year those same jobseekers have been added to the program - in recognition of the challenges in the labour market in the South-East - including the Minister’s own electorate. It’s no wonder the Minister dismissed youth unemployment Issues in one of her first interviews with the Courier Mail. As at May 2017, youth unemployment in Outback Queensland is 53.9%, Townsville is 21.6%, Wide Bay is 24%. It’s also a concern that the budget for Workplace Health and Safety Queensland has reduced across the forward estimates. No wonder the CFMEU are campaigning against the Minister for ‘health and safety neglected under ’s watch”, in her own electorate. Racing Of great concern, the Minister backed the plans of Racing Queensland to re-develop the Albion Park precinct and re-locate harness and greyhound racing to alternate venues. This is a plan that has had almost $1 million spent on it and has recently been knocked back through the Brisbane City Council planning approval process. It should be scrapped now before any more money is wasted. Albion Park could have used that $1 million to upgrade its existing facilities. The Minister could not provide a date when the Eagle Farm track review will be finished, when the track will be back on-line or the cost of the review, although she did confirm the review was delayed. Why would Queenslanders have any confidence that Labor will be able to get our premier racing facility back on track? Multicultural Affairs The LNP Members of the committee are disappointed the Minister for Multicultural Affairs refused to answer questions about the We are Queensland campaign, despite her key involvement in the announcement. As the Minister cited as being responsible for social cohesion initiatives, in the spirit of budget accountability, Queenslanders would have expected more information to be forthcoming from the Minister. Queensland deserves better. A Tim Nicholls led Liberal-National government will Build a Better Queensland. The LNP’s Plan will create jobs, support small business, invest in education to raise standards and we will provide better services for families and retirees. We will restore business confidence and get investment flowing to create jobs throughout all of Queensland.

Finance and Administration Committee 37 2017-18 Budget Estimates – Appropriation Bill 2017

An LNP Government will reduce the risk to our economic security by focusing on six drivers to strengthen and diversify the Queensland economy. The six drivers are: • Tourism • Agriculture • Resources • Construction and Manufacturing and • Services, Science and Technology and • Education Without a strong economy. Governments can’t provide better services in our hospitals, a better education for our children or invest in new technology and equipment to help police protect our communities. The LNP has a four-point plan to help get young Queenslanders working. It includes a $5,000 Queensland Apprenticeship incentive for small business; a $500 Tools for Tradies vouchers; a $4,000 Job Start Incentive; together with discounts on Work Cover premiums for small business. An economy can’t grow if it’s weighed down by high costs and one of the biggest costs is electricity. We’ll make sure that Queensland’s energy security is not put at risk and that we don’t end up like South Australia with blackouts and industry shutting up shop. A 50% renewable energy target in Queensland will mean higher prices and we won’t stand for it. The LNP is committed to leading a government that is better for Queensland. More government isn’t the answer to our problems - better government is. The LNP will be a common sense Government which listens, plans and acts to build a better Queensland. Only by Building a Better Queensland - will we deliver the jobs needed and restart our economy.

38 Finance and Administration Committee