28 Oct 1999 Legislative Assembly 4483

THURSDAY, 28 OCTOBER 1999 of steps to this process: stakeholder consultation, the passage of legislation through the Parliament, compliance with the Federal Native Title Act and allowance through Mr SPEAKER (Hon. R. K. Hollis, Redcliffe) the Senate. read prayers and took the chair at 9.30 a.m. Finally, after a costly and frustrating delay, I am pleased to advise the House that I have now received confirmation from the PETITIONS Commonwealth Attorney-General that we have The Clerk announced the receipt of the passed a critical stage in this process. following petitions— Yesterday, the Federal Attorney-General advised me that he has notified the relevant Booral Road, Wondunna parties that he proposes to make determinations under the Native Title Act that From Mr Dalgleish (330 petitioners) sanction the Queensland State provisions. requesting the House to allocate the That essentially means that, subject to necessary funds to carry out the much needed consultation, the Federal Attorney-General has road works on the section of the Booral Road, found that my native title regime complies with Wondunna from Sugar Coast Village to the the requirements of the Federal Native Title River Heads turn-off to rectify the current Act. problems before more lives are lost. Indigenous groups and members of the public will have until 14 January to lodge Police Resources, Peregian Beach submissions, shortly after which we expect a From Mr Davidson (32 petitioners) final decision that will allow Queensland to requesting the House to request the Minister implement its system. I urge those groups to for Police and Corrective Services to enhance carefully analyse the regime that I have the police presence in the Peregian Beach developed on behalf of the Government as area. they seek to comment on its compliance with the Federal legislation. It is a good scheme Petitions received. that will work in everyone's interests and allow development to proceed. PAPER The Australian Institute of Geoscientists, which represents thousands of professional MINISTERIAL PAPER mineral explorers, recently stated— The following paper was tabled— " '... the Queensland ... Provisions ... Attorney-General and Minister for Justice provide the only sign of light at the end of and Minister for The Arts (Mr Foley)— a very long tunnel ... They provide the Electoral Commission of Queensland— best opportunity explorers have for getting Annual Report for 1998-99. on with their job.' " It went on to state— MINISTERIAL STATEMENT "Acceptance of the Queensland Native Title provisions will provide a model for other states, creating potential for nationally Hon. P. D. BEATTIE (Brisbane Central— uniform provisions with obvious benefits ALP) (Premier) (9.32 a.m.), by leave: The for industry." Queensland Government has been working hard to deliver a fair and balanced process for The geoscientists have struck gold here. native title management in this State. One of This is indeed a model that should be followed my very first initiatives as Premier was to by all other State jurisdictions. The establish, on behalf of the Government, an geoscientists have cut through the overburden open and consultative process to deliver a of political posturing and they have reached workable system that reflected people's rights the nugget of truth, which is that my and allowed sensible development to Government's scheme is the one that can progress. In other words, I got all the deliver the outcomes that people have been stakeholders together to work through a seeking for some years now. solution. A similar model was followed with the As members will know, to reach this critical regional forest agreement and we are now stage we have undergone a long and following it with tree clearing. From the laborious process of consultation with Federal beginning I said that there would be a number officials, with a number of technical 4484 Ministerial Statement 28 Oct 1999 amendments being brought back to this that South Bank has become a wonderful Parliament at the request of the Federal attraction for both people and investment. It is coalition Government. For a process that was a must-see for visitors to Brisbane and is established by the Howard Government, we becoming a tourism magnet for this city and were hoping that they would be able to allow surrounding areas. alternative State provisions to be implemented The initial development of South Bank within six months of their passage through and the subsequent masterplan works have Parliament. Instead, now it will probably take increased the desirability of development land about 20 months from when we started the in the area. Private sector investment includes process in July 1998 to when we finish it early Rydges South Bank Hotel at $60m, the Thiess next year. headquarters at $30m, which I opened This point has not been lost on the recently, the Imax Theatre, which I also Queensland Mining Council, which wrote to opened recently, the Hoyts cinemas at $20m, Daryl Williams last week, commenting— and the Mirvac development due to start in "We do not see the level of urgency February at $100m. I participated in the that we would have expected given it was announcement of that development. In the Commonwealth's initiative to have addition, the Queensland Conservatorium of states implement alternative state Music has chosen to locate there. That regimes, and with a disastrous scenario development is worth $35m. Also, work on for exploration being evidenced month building Queensland's College of Arts, worth after month by tumbling investment." $25m, is due to start in February. That gives a total investment in development of $270m. I table a copy of the letter for the information About five million visitors are attracted to South of the House. I thank the Queensland Mining Bank every year, and another 4.5 million Council for its unsolicited support. It obviously people visit Queensland's Performing Arts had an impact. I also table a copy of the letter Complex, the Queensland Museum, the from Daryl Williams. Queensland Art Gallery and the State Library No thanks can be given to the Nationals each year. and Liberals who sit across the Chamber, who The State Government has made this chose not to exercise whatever influence they possible by driving this development, with have over their Federal colleagues. Perhaps capital spent on infrastructure since the end of that was because they have no influence at all Expo '88 totalling $196m. I acknowledge that and are regarded as a joke in Canberra. I am a series of Governments—National Party confident that my native title scheme complies Governments and Labor Party Governments— with the Federal legislation, and Mr Williams have driven that total investment. The initial has vindicated my position. I am confident that development cost of $130m and the current my scheme will withstand the scrutiny of the master plan improvements have so far injected Senate or any other forum, because my another $66m, with another $13.5m being scheme is fundamentally fair and balanced. spent on providing the footbridge and $1.5m I am delighted to have the support of the on the Maritime Museum next year. Federal coalition Government for the State's Stage 2 of the master plan has increased scheme. This is the outcome of sensible values significantly. Two years ago values were consultation with the stakeholders, which has about $600 a square metre and land was delivered a Queensland solution that should difficult to sell. Today's values are between become the national model. I table those $900 and $1,400 a square metre and land is documents. highly sought after. South Bank's 800-space underground car park, opened in December MINISTERIAL STATEMENT last year, is expected to generate $2.5m in revenue each year. It all adds up to South South Bank Parklands Bank being one of Queensland's major Hon. P. D. BEATTIE (Brisbane Central— success stories and, as I said, a major magnet ALP) (Premier) (9.38 a.m.), by leave: The for attracting tourism to the south-east corner State Government's development of South of this State. Bank Parklands has attracted private sector development worth $210m over the last 10 MINISTERIAL STATEMENT years. In other countries, sometimes the land used for world expos has posed major Business Headquarters problems and has become a scar on the host Hon. J. P. ELDER (Capalaba—ALP) cities. However, in Queensland, the State (Deputy Premier and Minister for State Government has provided strong leadership so Development and Minister for Trade) 28 Oct 1999 Ministerial Statement 4485

(9.41 a.m.), by leave: The Beattie the Gold Coast City Council. It is evident from Government's determination to make this that the Beattie Government has worked Queensland the Smart State is fast becoming and is working with business to build and a reality, with leading industry players choosing broaden the State's commercial base and the to locate operations in this State. These State's economy. The job dividends in this companies bring a number of important factors industry are mounting significantly. to the State. Firstly, there is the key objective— jobs. The types of jobs created are well-paid and skilled positions. This leads to the State MINISTERIAL STATEMENT becoming known as a technological hub and, National Competition Policy in turn, this attracts further business. Since Hon. D. J. HAMILL (Ipswich—ALP) coming to Government in July 1998, the (Treasurer) (9.44 a.m.), by leave: I wish to number of high-tech companies that have inform the House of the recent release of the come to the State makes an impressive list. Government's new guidelines for the public Global computer giant IBM has established an benefit test to be undertaken in relation to the Asia-Pacific call centre. US software supplier National Competition Policy. These new Saville Systems, Indis Industries and guidelines for the public benefit test will enable Computer Storage Group UTL/Quantum are the Beattie Government to ensure that the among some of the headline companies. The interests of people and communities are put reasons given by these companies for their ahead of economic ideology. Significantly, this move to Queensland include political stability, is the first time that the guidelines have been competitive leasing and property costs, a made available publicly. This reflects the skilled work force, both technically and in Beattie Government's unique consultative foreign languages, an attractive climate and approach to economic reform. The guidelines the cost of living compared with that in have been made available on the Treasury southern capitals. Department web site and we welcome the However, recent research by the comments and suggestions for further respected property group PRD Realty clearly improvements from unions, consumer demonstrates the success of Queensland representatives and other community becoming a high-tech centre. The research stakeholders. The revised guidelines will found that high tech was emerging as one of themselves be a living document and will be the fastest growing tenancy sectors in improved as necessary to reflect community Brisbane, climbing from 3,764 square metres suggestions and priorities. just two years ago to 17,235 square metres Labor has been instrumental in last year. In the first six months of this year, IT humanising competition reform in Queensland. tenants committed to 16,960 square metres— Whilst still in Opposition we demanded the more than 22% of the total space leased. In rigorous application of a public benefit test to late September I had the pleasure of opening ensure that economic rationalism did not the new premises of a world leader in design impact on struggling rural communities and and manufacture of microwave radiofrequency industries. It was only because of the then components, that is, Filtronic Comtek, at Labor Opposition's successful amendment of Murarrie. The company, which is a wholly the Queensland Competition Authority owned subsidiary of UK-based Filtronic, came legislation being introduced by the Borbidge to Australia just four years ago. The Government that social concerns received due Queensland Government provided assistance recognition in that legislation. to the Australian company under the Queensland Industry Assistance Scheme and The new and strengthened public benefit already more than 50 high-technology jobs test guidelines do not just promise to reflect have been created, and the Australian the concerns of the community; they explicitly operation services the Asia-Pacific region and set out the processes that review committees beyond. From small beginnings, Filtronic now must follow to consider the social and employs 100 staff. employment impacts of proposed reforms. One of the flaws in the old guidelines was that Recently, Australia's second largest pay they provided lots of detail about economic television provider, Austar Entertainment, models and income transfers but had confirmed Queensland as its principal base of considerably less to say about assessing the operation when it announced that it would impacts on people and communities. Under employ a further 1,000 people in the next five the new guidelines not only will review years at the purpose-built complex at Robina. committees be required to undertake a The Austar decision followed assistance detailed employment impact assessment and provided by both the State Government and social impact assessment; they will also be 4486 Ministerial Statement 28 Oct 1999 given a rigorous process to follow to ensure equipped to conduct a Statewide audit of the comprehensive consideration of these mobile cranes to check safety standards. issues. Mobile cranes have caused some devastating The Department of Families, Youth and incidents in recent years by coming into Community Care has developed a framework contact with powerlines and toppling at specifically to assess the social impact of any building sites. More than 1,000 cranes located proposed reforms, and I thank the Minister for at construction sites and in crane hire yards will her department's assistance in that regard. be targeted. The program is a proactive With these guidelines, the Beattie Government endeavour to lower the unacceptable toll in has put the focus back on people and we can workplace injuries and deaths in Queensland. be confident that any reforms do carry with WorkCover recorded 93 fatalities and 73,000 them a real benefit to the community. The compensated injury claims last year. The Beattie Government believes that competition targets of the safety campaigns are selected policy can improve the use of taxpayers' by the division, in consultation with the money and provide ongoing community industry, based on the level of incidents benefits, if it is administered sensibly. However, recorded in the particular industry or related to Governments are only there to deliver services a particular hazard. The new policies will lead to people. We must ensure that reforms to more notices and prosecutions of employers actually deliver improved quality of life through who do not look after the basic safety better services and more jobs rather than requirements of their workers. simply embodying some economic rationalist Together with the blitz on mobile cranes, I ideology. I table the guidelines for the am launching a video on the dangers of information of the House. operating cranes in the vicinity of powerlines. The video has been produced by the Department of Mines and Energy's Office of MINISTERIAL STATEMENT Electrical Safety with the assistance of the Division of Workplace Health and Safety Division of Workplace Health and Safety. Hon. P. J. BRADDY (Kedron—ALP) Brambles and Energex also offered expert (Minister for Employment, Training and assistance in producing the video. It Industrial Relations) (9.47 a.m.), by leave: I graphically depicts the dangers of mobile wish to inform the House of the continuing and cranes striking powerlines, whether they are successful operations of the Workplace Health above the crane or below an excavation site. and Safety Division of my department. Earlier The education process will continue next this year I announced the division's policy month when the division's new compliance initiative, the Queensland Workplace Health program will be highlighted at seminars across and Safety Enforcement Framework, which the State. Business should take advantage of details new enforcement, investigation and these seminars to receive information on the prosecution policies. Honourable members new enforcement, prosecution and would be aware that in the past the division's investigation policies. This information should inspectors concentrated on encouraging help stop injury and death to workers. voluntary compliance with workplace health and safety standards. Our new enforcement Last financial year employers were fined framework tips the balance towards a more more than $300,000 in 64 serious robust regime to ensure that health and safety prosecutions. The cost in human terms is standards reach a higher compliance level. An much higher, and these could be avoided with important aspect of that policy is Statewide careful assessments of workplace risks and audits of industries and hazards. In planning work practices. I commend the second of the these blitzes, the Division of Workplace Health safety blitz targets under the enhanced and Safety consults with industry groups to enforcement framework of the Division of help target specific safety issues. I am pleased Workplace Health and Safety to the House. to say that both trade unions and employer organisations strongly support a more MINISTERIAL STATEMENT proactive stand on these important safety issues. The special audits commenced in Legal Aid Queensland August, with inspectors targeting the Hon. M. J. FOLEY (Yeronga—ALP) residential construction industry. (Attorney-General and Minister for Justice and In consultation with industry, the division Minister for The Arts) (9.50 a.m.), by leave: has decided that the next target of a blitz will Much has been said in the media recently be the mobile crane industry. From November about the crisis facing legal aid throughout this year, specially trained inspectors will be Australia. This crisis is a direct result of savage 28 Oct 1999 Ministerial Statement 4487

Federal funding cuts. Queensland has not Today, I am able to inform the House that been immune to the Federal coalition's slash Legal Aid Queensland has just been and burn mentality. Legal Aid Queensland has recognised as a finalist in the Australian suffered a $2m a year Federal funding cut, Quality Awards for Business Excellence. This with devastating consequences, particularly for means that Legal Aid Queensland has been people seeking assistance for family law recognised by leading Australian business matters. By contrast, the Beattie Labor organisations as a leading edge organisation Government has increased the State's in all areas of business performance. This contribution to Legal Aid Queensland by $5m award has been the result of a serious a year over the amount received when the commitment to a total quality service approach members opposite were in control of the to management at Legal Aid Queensland Treasury. That extra funding includes a notwithstanding the financial strains caused by $500,000 boost to community legal services to the Federal coalition Government's savage enable them to expand their crucial services. funding cuts. It was as a direct result of the increased State funding to Legal Aid Queensland that I MINISTERIAL STATEMENT had the honour, during a recent visit to Cairns, Notified Areas; Police Powers to launch the integrated indigenous strategy—an initiative which aims to make a Hon. T. A. BARTON (Waterford—ALP) real and practical difference to the lives of (Minister for Police and Corrective Services) victims of crime in remote indigenous (9.54 a.m.), by leave: Under the Police Powers communities. The development of this strategy and Responsibilities Act 1997, provision was is evidence of the Beattie Labor Government's given for notified areas to be created to allow commitment to tackle violence against women police to exercise move-on powers. As the Act in our society and to support victims of crime. states, a local government or Government The strategy will bring relief and support to entity may apply to the Police Minister for the many indigenous women and their families declaration of a stated area as a notified area. living in remote and isolated communities. It However, the Act also states that, before the will assist indigenous women who have been Governor in Council declares an area to be a the victims of sexual assault, domestic notified area, the Minister must ensure any violence and other forms of assault to gain requirements prescribed under a regulation access to specialist legal services. A focus of have been complied with. the strategy will be informing and educating By the time the 1998 State election was women in remote communities about their called, the regulation setting out the legal rights and empowering them to use the requirements for notified areas had not been justice system to protect themselves and their put in place. In fact, it seemed very little had children. It is about turning back the tide of been done to develop the regulation. As soon violence against women in our society. as I became aware of the situation after being sworn in as Police Minister, I began the While developing this strategy, Legal Aid process of developing the regulation. Queensland found from speaking to Unfortunately, very little consultation had been indigenous community support service workers done with local authorities and Government in far-north and central Queensland that agencies regarding the regulation. In fact, indigenous women often had little awareness since there was such a diverse body of opinion of their basic legal rights, including their rights amongst authorities and the Local in criminal law, such as criminal compensation; Government Association of Queensland on their rights in relation to dealings with police, how notified areas should be declared, I had the Government and the local community; and to begin a very detailed consultation process their rights under family law. This strategy aims to achieve consensus amongst all the to change that situation. agencies and authorities. The $240,000 allocated to this initiative I am pleased to say that this consensus comes from the extra $5m a year in funding has been reached and the Governor in Council that the Beattie Labor Government is providing signed off on the notified areas regulation to Legal Aid Queensland, and I congratulate amendment recently. The regulation clearly Legal Aid Queensland for its fine work in sets out what must be done by local developing this strategy. In addition, I should authorities and Government entities when like to take this opportunity to congratulate applying for a notified area. Before applying, Legal Aid Queensland for gaining further they must consult with local police and, if the recognition for its outstanding service to applicant is a Government entity, they should Queenslanders despite Federal funding cuts. consult with the local authority or authorities 4488 Ministerial Statement 28 Oct 1999 the proposed area is located in. The applicant Both members clearly do not understand must also publicise their intentions as well as a legislation enacted under their term in map of the proposed area and the proposed Government and have forgotten the irrefutable times the area is to start as a notified area and commitment given by the member for Crows call for submissions from interested persons Nest during the debate on the Police Powers regarding the proposed notified area. and Responsibilities Bill on 19 November 1997. Notified areas and picket lines were The regulation also sets out what raised by the member for Fitzroy during the information has to be supplied with the debate, and this was the then Minister's application and if the application is relevant to reply— a certain event or events. Applicants can also apply for temporary declarations of one month "The right of workers to picket will not and the applicant must justify in detail the be affected by this legislation. In fact, we duration of the period during which the area is accepted one of his amendments, which to be a notified area. will guarantee that. It was never intended to affect peaceful assembly." There has been a great deal of interest from some local authorities about move-on There cannot be a much clearer commitment powers and notified areas, so I expect an initial than that made by the member for Crows influx of applications. However, there has also Nest, but it was obviously not clear enough for been a great deal of misinformation spread the member for Surfers Paradise and the about move-on powers which should be member for Toowoomba South. cleared up so potential applicants know exactly where they stand. What has not been widely MINISTERIAL STATEMENT publicised is the fact that police already have extensive move-on powers and do not need a Queensland Child Care Strategic Plan prescribed notified area in order to exercise 2000Ð2005 these powers. Hon. A. M. BLIGH (South Brisbane—ALP) (Minister for Families, Youth and Community Under the Police Powers and Care and Minister for Disability Services) Responsibilities Act, which came into effect on (9.59 a.m.), by leave: Those of us who are 6 April 1998, police can move on people from parents are well aware of the importance that shops, child-care centres, preschool centres, we all place in having safe, affordable and all schools, licensed premises, railway stations accessible child care for our children. and land surrounding these stations, and Unfortunately, it has become more difficult for automatic teller machines. Police can issue a parents to find the quality, affordable care their move-on direction if a person's behaviour is children deserve. Many services are finding it causing anxiety to a reasonable person increasingly difficult to maintain their viability, entering or leaving a place; if a person is with many forced to close their doors. This is interfering with trade or business at a place by due to a range of factors: massive cuts in unnecessarily obstructing, hindering or Commonwealth Government funding have left impeding someone leaving or entering a the child-care sector reeling, changes in labour place; if a person is behaving in a disorderly, market and demographic patterns, the indecent or threatening manner; or if a person changing needs of families and unplanned is disrupting the peaceful and orderly conduct growth in some parts of the sector. of an event. Local authorities should take these facts into account when considering The Howard Government has ripped more applying for notified areas. than $800m out of child care across Australia. The State Government can never replace The other issue which needs to be those funds, but we can work with the industry highlighted is the reprehensible and quite to create a more viable, secure child-care incorrect calls made by the Opposition Leader sector. To that end, I am pleased to inform and also by the member for Toowoomba members that the Beattie Government has South during the Gordonstone and Korea Zinc been actively working in partnership with the industrial disputes earlier this year. During the child-care industry and families to tackle these Gordonstone dispute, the member for issues. Later today, I will be launching a new Toowoomba South supported the Emerald direction for child care in Queensland with the Shire Council's request to make the Emerald release of the Queensland Child Care Airport a notified area. During the Korea Zinc Strategic Plan 2000-2005. This plan will take dispute, the member for Surfers Paradise Queensland child care into the new called on the Government to declare the picket millennium. It will aim to facilitate a modern line a notified area. child-care system that is flexible and 28 Oct 1999 Ministerial Statement 4489 responsive to the ever-changing needs of piloting child-care service hubs, which Queensland parents and families. It will aim to would provide education health and maintain the viability of the valuable child-care information services; sector, which employs around 30,000 people expanding mobile outreach service in this State, and will allow working parents to models; maintain their employment knowing that their child is being cared for in a safe environment. introducing traineeships as an entry level requirement for unqualified child-care The Beattie Government is committed to workers, to increase the quality and working in partnership with this valuable retention of staff; and industry to ensure that it has a viable future, with greater job security and quality care for developing a new regulatory framework to our children. In order to develop the plan, enable safe, innovative, flexible service more than 40 focus group meetings were held delivery. across the State, around 500 telephone The plan also proposes changes to the interviews were held with parents, and nearly current regulations to address the changing 300 written submissions were received. The child-care needs of parents, and tackle the rise child-care industry forum, established by the of unregulated or "backyard" care. The Beattie Government early this year, also Government intends to develop regulations to brought together a range of stakeholders, from limit the number of children in backyard care the child-care industry, Government situations and to introduce parent information departments and trade unions to help develop campaigns to assist parents in choosing safe the plan. and suitable care for their children. The The consultations raised many important Government will be addressing this as a matter issues facing service providers and families, of priority. including— The strategic plan is a "living" document, rising child care costs, which have forced designed to reflect the dynamic and changing some parents out of the work force; nature of Queensland, the needs of the need for a greater range of affordable Queensland families and the child-care and accessible child care to meet the industry. As such, the plan will need to be changing needs of families and people reviewed regularly. Reports on achievements will need to be made and changes will be working non-standard hours such as shift published annually. workers; a lack of integration between child care The Queensland Child Care Strategic services and early education services; Plan reflects the Beattie Government's commitment to working in partnership to differing regional needs; deliver high quality child-care services for all a renewed philosophy to inform and guide Queensland families. This plan aims to ensure policy development; and the need for a that Queensland parents have access to the more flexible regulatory framework. best child care in Australia, one that meets the This feedback was then used to develop our modern needs of parents and children in the plan. The plan encompasses five key goals to 21st century. help create— a strong child-care industry to improve MINISTERIAL STATEMENT Queensland's standard of living; Fire Awareness Week better access to child care and early Hon. M. ROSE (Currumbin—ALP) education services; (Minister for Emergency Services) (10.04 a.m.), better employment and training by leave: Eighteen Queenslanders have died opportunities for child-care workers; in house fires so far this year. This is an better planning for the provision and alarming and tragic statistic. It is also a location of child care services; and frustrating statistic for Queensland's thousands of dedicated firefighters—both rural and urban. a new regulatory framework for child care Recent research conducted by the in Queensland. Queensland Fire and Rescue Authority into Proposed strategies to help reach these goals domestic fire fatalities has shown that many include— were preventable. For this reason, educating establishing a one-stop employers' and the public about fire prevention and safety has industry child care information and become a major part of a firefighter's job. In advisory service; 1997 and 1998, their hard work had begun to 4490 Parliamentary Criminal Justice Committee 28 Oct 1999 pay off with a dramatic drop in fire-related family from fire is not hard, nor is it expensive. deaths. In 1997 there were five domestic fire Smoke alarms are one of the cheapest forms deaths; last year it was down to four. This of life insurance you can get, while developing year's aberration suggests a level of and practising a home evacuation plan with complacency has begun to creep into the your family will take only a few minutes of your community, despite the constant, dedicated time. People also need to consider having a efforts of our firefighters. fire extinguisher and fire blanket on hand. No-one knows better than firefighters the I urge Queenslanders without smoke costly, and sometimes deadly, consequences alarms in their homes to make the decision of fire—one of the most destructive, during Fire Awareness Week to have one devastating and terrifying forces of nature. installed. If they already have smoke alarms in Across Australia this week, they have teamed their homes, they should think about putting up with the Fire Protection Association of an evacuation plan in place or investing in a Australia for Fire Awareness Week. They will fire extinguisher or fire blanket. A better- be out in force to spread the fire safety prepared community is a safer community. message. Over the years, they have developed a number of highly successful public awareness campaigns that, without a PUBLIC WORKS COMMITTEE doubt, have helped to save lives. They have Report taught lifesaving messages to more than Mr ROBERTS (Nudgee—ALP) 50,000 Year 1 students around the State (10.08 a.m.): I table the Public Works through the Fire Ed program. They have Committee annual report 1998-99. I thank worked with children identified as fire setters to committee members and the research and help them break the habit through the Fight Fire Fascination program. In conjunction with executive assistant staff for their support and Rotary and RACQ-GIO they have installed assistance throughout the year. I commend the report to the House. smoke alarms in the homes of thousands of elderly Queenslanders through the Smoke Out program. They have provided householders PARLIAMENTARY CRIMINAL JUSTICE with important fire safety advice through COMMITTEE Operation Safe Home. And this year retired firefighters will take the message to elderly Report Queenslanders through Seniors Fire Ed. Mr LUCAS (Lytton—ALP) (10.09 a.m.): I The State Government is proud to be lay upon the table of the House the report of able to support our firefighters in their fire the Parliamentary Criminal Justice Committee safety endeavours. This year, we have entitled A Report on an Investigation by the provided them with a record $19m public Parliamentary Criminal Justice Commissioner safety budget. This money will be channelled into the Alleged Unauthorised Disclosure of into a range of projects, including new and Confidential Information Concerning an expanded fire prevention and safety initiatives. Investigation by the CJC in Respect of Mr A total of $6.5m will be spent on fire safety Norman Alford. inspections and advice, while $4.6m will go In March this year, this committee referred towards public education campaigns. Around a matter to the Parliamentary Criminal Justice $1.5m has been allocated to fire education Commissioner requesting her to investigate and safety programs in schools and existing and report to the committee in relation to programs such as Fire Ed, Operation Safe whether there was an unauthorised disclosure Home, Fight Fire Fascination and Seniors Fire of information or other material by the CJC or Ed will be further developed and expanded. one of its officers concerning an investigation Money will also be spent on fire investigation by the CJC, including investigative hearings to help determine the cause of fires, which held by the CJC, in respect of alleged or may help to prevent them in the future. suspected official misconduct on the part of Mr The QFRA's public education campaigns Alford and another, which information or other continue to be highly successful, but the material under the Act is to be treated as mounting fire death toll this year proves that confidential and was referred to in an article in we must continue to be vigilant. We need to the Courier-Mail newspaper on Wednesday 17 work together to prevent, or at least minimise, March 1999, written by Mr Michael Ware, fire-related death and injury. Mr Speaker, as entitled "Alford admits to physical bond". any firefighter will tell you, the only thing more The committee referred this matter to the frightening than waking up in a fire, is not Parliamentary Criminal Justice Commissioner waking up at all. Protecting yourself and your as it raised the issue of whether there had 28 Oct 1999 Private Members' Statements 4491 been an unauthorised disclosure of the Queensland electricity supply confidential information, that is to say a "leak", industry." by the Criminal Justice Commission or one of its officers. This committee is of the view that any concerns regarding possible leaks from PRIVATE MEMBERS' STATEMENTS the CJC go to the very heart of the public's Hospitals confidence in the CJC and to the committee's Miss SIMPSON (Maroochydore—NPA) role to ensure that the CJC is accountable to (10.11 a.m.): This Government's Stalinist the committee and, through the committee, to approach to health management is about the Parliament and ultimately to the people of putting patients last and threatening hospital Queensland. Further, this particular matter was staff with the loss of their jobs if they speak one that had attracted considerable media out. Following the discovery of a spy camera in and public interest. a ceiling of the Toowoomba Hospital, morale in The Parliamentary Criminal Justice the public health sector has plummeted. Commissioner has furnished to the committee Yet another step in the systematic her report of her investigation into this matter. downgrading of public hospital facilities in The Parliamentary Commissioner has Queensland was taken this week in Cairns. concluded that it is unlikely that there was an One quarter of Cairns Base Hospital's medical unauthorised disclosure of the information beds were axed. The closure of 27 beds of referred to in the terms of reference by the ward G-East was completely without warning, CJC or one of its officers. notice or discussion, according to medical The report of the Parliamentary staff. If these radical changes were in the best Commissioner speaks for itself. The committee interests of the Cairns region, why were the has resolved to table the present report on the treating physicians not consulted? Dr Clive basis that, in all the circumstances, it is in the Hadfield, of the Cairns physicians group, said public interest that the report of the that patients' lives would be put at risk by the Parliamentary Commissioner be made administrative push to cut costs and that major available to the public. I commend the aspects of the planned hospital committee's report to the House. redevelopment were being cut. He is one of 10 Cairns physicians who wrote to local media rejecting claims by the acting district manager NOTICES OF MOTION that they were keeping patients in hospital for Minister for Environment and Heritage and too long. Minister for Natural Resources The Minister for ward closures, Wendy Edmond, declined to comment in the press on Mr NELSON (Tablelands—IND) these dire community concerns and the axing (10.10 a.m.): I give notice that I shall move— of 27 beds at Cairns on the grounds that it is a "That this House— local issue. That is totally unacceptable from a (a) censures the Minister for the Brisbane-based Minister who is responsible for Environment and Heritage and this. This is not a minor matter. Nor is it a minor Minister for Natural Resources over matter that the Minister has presided over an his handling of the lease renewal at extraordinary level of ward, theatre and clinic Shelburne Station, Cape York; and closures throughout this State, including at Royal Brisbane the closure of two wards, 40 (b) calls on the Minister to now renew outpatient specialist clinics and four intensive the same lease to maintain care beds; at Prince Charles Hospital the environmental integrity of the entire closure of three intensive care beds and other Shelburne area and guarantee that beds; at Toowoomba the closure of more than indigenous heritage in this area is not 20 beds; and at Nambour the closure of 36 lost." beds. The Health Minister should at least have Minister for Mines and Energy the fortitude to tell the Cairns community what other cuts are planned and how far over Mr ROWELL (Hinchinbrook—NPA) budget the Cairns Base Hospital is. The (10.10 a.m.): I give notice that I shall move— ongoing campaign to downsize acute public "That this House notes the failure of health facilities in this State is more evidence the Minister for Mines and Energy to for those unbelievers who still doubt the power adequately fulfil his ministerial of the Beattie Government's slash-and-burn responsibility to ensure a viable future for report. The Health Strategy Advisory Project, 4492 Private Members' Statements 28 Oct 1999 adopted by Cabinet earlier this year, led to the would not. I invite all members to join with me establishment of a task force to find ways to— in voting "Yes" for an Australian head of state. Time expired. Time expired.

Republic Meat Processing Mr WILSON (Ferny Grove—ALP) Hon. T. R. COOPER (Crows Nest—NPA) (10.13 a.m.): The constitutional referendum in (10.15 a.m.): The meat industry is one of the 10 days' time will be a once-in-a-lifetime most important industries in this State and, as opportunity to modernise one key part of our such, the coalition supports efforts to assist the structure of Government: the head of state. industry in adjusting to changing and very Australia's democracy is protected by checks difficult market conditions. But the Beattie and balances. A critical one is the head of Government has repeatedly evaded disclosure state. The Prime Minister and Cabinet, through of the assistance provided to certain meat Parliament, exercise the executive power of processing companies in this State, unless it Government. The Prime Minister is always in has been politically convenient to do so. the thick of the hurly-burly of partisan party politics. However, the head of state is a In this House the Premier boasted of the neutral, impartial, bipartisan umpire who is not assistance offered to ConAgra to expand its involved in day-to-day Government but who AMH Dinmore operation, but no details of that stands above politics to protect the assistance have been provided. In reply to a Constitution and Australia's democracy. question on 19 August, the Deputy Premier The referendum is not a vote of claimed that the Beattie Government had confidence in the Prime Minister or in Queen given no assistance to meat processors under Elizabeth II, who has performed her role with the Major Projects Incentive Scheme or the great distinction, sensitivity and dignity. Like it Queensland Investment Incentive Scheme. He or not, there is only one choice on Saturday, 6 then disclosed that Darling Downs Bacon, November. We can vote for a head of state Western Exporters and Southern Queensland who is and must always be a foreigner, who Exporters had been given assistance under pays no taxes, who does not live in Australia the meat processing development initiative, but on the other side of the world, who does and rightly so. But the Deputy Premier then hid not vote in Australia or experience day-to-day behind commercial in confidence and refused Australian life and whom Australians cannot to disclose further details of Government choose. Or we can vote for a head of state assistance to meat processors. who must be an Australian, who lives and In reply to another question, the Transport votes in Australia, who pays taxes like the rest Minister disclosed that Queensland Rail, an of us, who is part of Australia's life and culture, arm of Government, was building a $5.85m who is nominated by Australians and who in livestock unloading facility at AMH at Dinmore. effect is chosen by consensus of the supreme In reply to another question regarding law making body in Australia—the Federal assistance offered to AMH Dinmore's Parliament. meatworks, the Premier implied that Broadly, I support the principle of the assistance had been offered when he said direct participation of people in the processes that the Dinmore works was able to of Government, but fortunately this is Australia, demonstrate that it had a sound and exciting not America. A direct election of the head of business plan. state would not give consensus across the The Premier and his Labor Government community or a neutral umpire—the very have been evasive, far from open and opposite. We would be subject to a highly accountable and less than honest on this controversial, partisan political campaign, just issue. I call on the Beattie Government to like we have seen in the lead-up to this restore some credibility to the process and referendum. If an honourable member were a throw open the books to disclose exactly how member of the Ferny Grove Bowls Club voting much assistance has been offered to each at an AGM for a new club constitution, would abattoir under each assistance program. There he or she demand that the club president should be nothing to hide. We on this side of must not be a member of the club, must live the House advocate sensible support for the outside Queensland, must always have a meat industry, but it must be fair. It must be proxy to attend club meetings and functions, equitable for all participants in the meat and must never have a drink at the bar or play industry and not just provided to one favourite in competition pennants? Of course they son. 28 Oct 1999 Private Members' Statements 4493

Republic Australia's future rests with the republic. Australians no longer need to share the Hon. J. FOURAS (Ashgrove—ALP) Queen of another country. We need to go (10.17 a.m.): One of the arguments that has forward. We should understand that we need been put for a "No" vote in the 6 November this Australian nation to be ours. referendum is, "If it ain't broke, don't fix it." People pushing this line refuse to address the Time expired. real question in the referendum, that is, do Australians want an Australian head of state? Road Noise, Caloundra Electorate This referendum is being put because there are more republicans than monarchists in Mrs SHELDON (Caloundra—LP) Australia. Therefore, the answer to this (10.20 a.m.): I have been trying to get justice question is an emphatic yes. This is confirmed for some of my constituents since last July by the monarchists' bankrupt campaign of regarding road noise problems that residents scares and distortions about the proposed of Golf Links Estate and surrounding areas, republic model. They have given up defending such as Milbong Street and Beerburrum the monarchy. They have dishonoured their Street, have to live with. These houses are Queen. along and near the Nicklin Way. The noise has been exacerbated by the removal by the Main Australia is a Westminster monarchy. If Roads Department of a shrubbery buffer zone we vote "Yes", we become a Westminster on the Nicklin Way. The noise and exhaust republic with an Australian head of state—a pollution that is now occurring since the president. The president would have the same removal of thick brush and trees from both powers as the Governor-General now has, sides of the Nicklin Way has been the catalyst would continue to exercise these powers on for 128 residents signing a petition to the the advice of the Prime Minister and would Minister for Transport, Mr Bredhauer, which I retain the reserve powers to check any illegal will table. The petition reads— actions by the Executive. "It is with deep concern, we the The test of maturity for a nation is undersigned bring to your attention the knowing when to move forward. To not do so shocking detrimental conditions created at the Centenary of Federation defies by the removal of thick brush & trees from both sides of Nicklin Way to the commonsense. It is an important symbolism. intersection of Beerburrum St. which Cutting our ties with the monarchy will formed an excellent buffer zone. The road invigorate the spirit of Australia. noise & exhaust pollution is unacceptable. The direct election supporters are The immediate erection of a suitable chancing everything on the hope of a model acoustic paling fence & the replanting of containing direct election at a future date. thick bush brush in the mulch would thus Yesterday John Howard said that he would not eliminate aforesaid problems, and, very support a referendum based on direct election importantly, the devaluation of our homes of the president. By voting "Yes", direct & property." election advocates will not have achieved all The only answer I can get from the their ambitions but will have at least achieved department has been that the delay in a republic, which is more democratic than the responding has been due to noise levels being system we have today. taken and that, at present, this road does not I am outraged at the manoeuvrings of our warrant noise barriers because certain noise Prime Minister to deny the wishes of the levels have not been reached. This does not majority of Australians to become a republic. take into consideration the factor that the road John Howard is backward looking. His spoiling runs through a gully in a hill and the noise tactics may win the day on 6 November, but a obviously rises and magnifies. republic is inevitable. I ask the Minister to act immediately to see that commonsense enters this debate and The debate on the republic highlights that that he organises the erection of suitable noise it is time for people to be more fully informed barriers and vegetation to provide adequate about our Constitution. Much more relief for these people. They deserve to have a prominence should be given to civics reasonable lifestyle, which has been education in our schools. Australia's future interrupted and will continue to be interrupted should rest on informed debate, not on as long as this bureaucratic nonsense distortions and scaremongering. continues. 4494 Private Members' Statements 28 Oct 1999

Republic moving away and businesses were closing Mrs LAVARCH (Kurwongbah—ALP) down, they are now booming. These regions (10.22 a.m.): In the lead-up to the Federation can now not get enough good workers, referendum 100 years ago, Australians from all businesses are being established, housing is walks of life placed on public record why they at a premium, jobs are being created and the would be voting "Yes" to Australia becoming a towns are buzzing with activity. And why are nation. On 6 November, Australians will go to these areas booming? It is because of water! the polls to decide two crucial questions about That is why they are booming. our national identity. Today I want to place on Secure water supplies provided by both public record why I will be voting "Yes" to both Government and the private sector have questions. driven the development of high-input, labour- On the question of whether the Australian intensive new industries like cotton, grapes Constitution should be altered to insert a and vegetables. With previously assured water preamble, I will be voting "Yes" because the supplies, irrigators and other industries had the preamble seeks to encapsulate the Australian confidence to invest millions of dollars in those condition into our ultimate legal regions. But fear and uncertainty are now document—something that is sorely missing at resounding around these communities. The present. It highlights the unifying values, water entitlements they depend upon to run achievements and aspirations of our nation by, their farms, to employ the workers and to amongst other things, honouring indigenous support the communities are under threat from Australians, recognising the contribution of this Labor Government. immigrants, upholding equality of opportunity Irrigators have secured water entitlements for all and noting the national spirit which binds from the Government in the past. They were us together. And contrary to public belief, it expected to use them, and they have done does not include the word "mateship". The that. They have invested in their towns and put other question, of course, is the question of up their own money. But now, using dodgy becoming a republic—an independent nation. science and a campaign of all sorts of awful This is a question of utmost importance to our things, this Government is threatening to take national identity and our future. For the away those entitlements without fundamental reason that it is time that we had compensation. In doing so, it is threatening an Australian as our head of state instead of a industry, rural communities, this State's foreign monarch, and that by becoming a economy and the very workers it is supposed republic we will truly be the independent nation to support. The Minister and his Government that we are in spirit, I will be voting "Yes". must recognise that security of water I also take this opportunity to pay tribute entitlements is not negotiable. They must not to the member for Moggill, the Leader of the take this security of entitlements away. Liberal Party, who has been the only person No new dams are being built in on that side of the House to have the courage Queensland at this time. The Government is to stand up and support the "Yes" case. I ready to start imposing huge charges on have his "Yes" badge—his badge of honour. It people who want to use water. Even water that is the last one left. I acknowledge the member comes out of the sky—it wants to charge them for Noosa and the member for Tablelands, for that! Members opposite are a dreadful mob who sought "Yes" badges. Where is the of people when it comes to looking after rural member for Noosa? And to all of those people. They try to pretend that they look after members on that side of the House who have them, but they really do not. told me in private that they are supporting a "Yes" case, I say, "Speak up. Do not keep it to Mr SPEAKER: Order! Before I call the yourselves. Get out and say it." They can start member for Townsville, I point out to members by signing the Founders Book at 1 o'clock that we need to listen to these two-minute today in the old Chamber. speeches. I hope that all members will give respect to the person speaking.

Water Supply Entitlements Hon. V. P. LESTER (Keppel—NPA) Republic (10.24 a.m.): The irrigation industries are some Mr REYNOLDS (Townsville—ALP) of the biggest contributors to the Queensland (10.26 a.m.): Last week I called on economy and regional towns like Dirranbandi, Queenslanders to grasp the opportunity to St George and Emerald. Whereas years ago take Australia into the next century as a new some of those towns were dying, houses were republic for the new millennium. being moved away, young people were Queenslanders, even more than their southern 28 Oct 1999 Questions Without Notice 4495 counterparts, have a lot to gain from Australia his own admission, he agreed that the becoming a republic. More and more, our average reef fisherman fished the reef only economic ties are with the Asia-Pacific region. two to four times a year. He also admitted that That is recognised by the Liberal Leader. This recreational reef fishermen account for less is where we are geographically and, than one quarter of all reef fish taken. increasingly, this is where we are economically Considering that a reef fisherman, managing and socially. as much as four trips a year and catching his For all these reasons, it is an increasing current legal bag limits equates to 2.5 fish per absurdity to have as our head of state the week on which to feed his or her family, that is Queen or King of England. Australia must hardly an overkill. The reef fisherman is the present to the people of the Asia-Pacific region basis of a $2 billion recreational fishing as a truly independent nation that is part of industry—worth far more than the commercial their region, wanting to trade with them as a industry and also employing more. One must genuine part of their region and no longer as a question the QFMA's logic in targeting the colonial outpost. To achieve this, a new recreational industry. symbolism is important, The old symbolism I am pleading with the Beattie does get in the road. It is both a cause for Government to knock this QFMA proposal on confusion and serves to set us apart from the the head right now, because such blatantly region in which we live. biased attitudes cannot be in the public The most pleasing aspect of the interest. If the Labor Government does not do referendum matter is that support for the "Yes" this, then obviously it has not learnt from its case is bipartisan politically. While the vast mistakes of the Goss era, when Molly Robson majority of prominent Labor leaders—past and tried to close down national parks to present—are advocating a new republic, it is recreational fishing, which left hundreds of especially pleasing to see prominent Liberals, thousands of Queenslanders carrying the such as the Treasurer, Peter Costello, the bumper stickers: "I fish and I vote." Liberal Leader in the House today, Dr Watson, Every reef fisherman in Queensland is former Prime Minister Malcolm Fraser and the outraged by this QFMA proposal, and the most significant National Party identity of QFMA knows this. I am asking the Beattie recent history, former Deputy Prime Minister Government to leave the $2 billion recreational Doug Anthony, all advocating a "Yes" vote. industry alone, or jobs will be lost. Boat, I call on Queensland business and outboard motor and tackle shop sales will community leaders to come out publicly in the plummet. I ask the Beattie Government to be next week and advocate a "Yes" vote on 6 fair and pressure the QFMA to target the facts November for a republic for Australia, and and take a closer look at the thousands of especially for Queensland. Our identity in the tonnes of reef fish that are being exported by Asia-Pacific region is a must for Australia. the commercial fishing industry. Great leaps Queensland business leaders especially must have been made by aquaculture for the live show leadership on this issue. They must lead fish trade. That is where we should be the way, in a business sense, into the new heading. I am asking the Beattie Government millennium. to reconsider its stance on attacking the recreational industry. Coral Reef Finfish Fishery Time expired. Mr KNUTH (Burdekin—IND) (10.28 a.m.): I Mr SPEAKER: Order! The time for private rise to comment on the QFMA draft members' statements has expired. management plan for the coral reef finfish fishery. I also note that the member for Cairns QUESTIONS WITHOUT NOTICE raised sensible issues on this draft plan in September, and I commend her input. As I Chevron Gas Pipeline have been a frequent reef fisherman myself, I Mr BORBIDGE (10.30 a.m.): I ask the can fairly say that I have more knowledge on Minister for Mines and Energy if he can inform this subject than half the academics who are the House of the degree of ministerial and trying to justify their positions in the QFMA. Government involvement in the decision by After having a lengthy conversation with Energex and Ergon to act as aggregators of one such person, who was quite intent on customers for Chevron Gas, and can he questioning the democratic process of the indicate to the House the nature and extent of Legislative Assembly, I realised that I was the exposure of Queensland taxpayers as a speaking to a man with his own agenda. On result of the risks associated with this activity? 4496 Questions Without Notice 28 Oct 1999

Mr McGRADY: The decision by Ergon community services industry plan will assist in and Energex to involve themselves in the long-term planning, economic viability and Papua New Guinea to Queensland pipeline stability and the development and resourcing was a commercial decision taken by both of effective and innovative models of service boards. As Minister for Mines and Energy, I delivery across the sector. Industry and public had no input whatsoever into any decision feedback is critical to the further development which those companies made. I want to stress of the community services strategy and I invite that they were strictly commercial responses to the detail as well as the overall decisions—decisions taken by those direction of the paper. corporations which they obviously believed The three key elements of the strategy were in the best interests of both individual are based on our election commitments: the corporations. development of an agreed set of principles to guide the relationship between Government Olympic Games and non-Government community services, improvement of funding and grants Mr BORBIDGE: I ask the Minister for administration and the development of a Tourism, Sport and Racing: is the State community services industry plan. We will pay Government funding any suites at Sydney's particular attention to community services for Sheraton Wentworth or any other hotel during rural and remote communities and Aboriginal the 2000 Olympic Games and, if so, what is and Torres Strait Islander communities. the expected cost and who will be allocated these suites? The result will be administrative arrangements that promote coordination and Mr GIBBS: At this stage I have no service responsiveness and which minimise knowledge of that in any shape or form. inefficiencies and barriers to effectiveness. After all, this is about getting efficient and Volunteers in Community Services effective services delivered by very dedicated people. Copies of the consultation paper and Mr SULLIVAN: My question is directed to feedback forms are available from the the Premier. I draw the Premier's attention to Department of the Premier and Cabinet, GPO the enormous contribution made to society by Box 185, Brisbane Albert Street, 4002. volunteers in the provision of community services, and I ask: what is the Government One of the issues that confronts this State doing to ensure that community services are is its decentralisation. It is a significant impost provided in the most effective way? on resources and resource allocation. What the Government is seeking to do is to make Mr BEATTIE: My Government is seeking certain that people are provided with services submissions from the public on how best to regardless of where they live. But that is a very provide community services because we value tall order. It is difficult because there are the contribution made by not only volunteers 3,500,000 of us spread across huge but community groups. Along with the Minister distances. Brisbane is closer to Melbourne for Families, I recently launched the State than it is to Cairns. Under those circumstances, Government's major consultation paper on our this consultation, which was launched by the community services strategy at a function Minister and me, is fundamentally important to attended by more than 300 people from the our future plans. community services industry. The key focus of the strategy is the development of a more effective, efficient and Olympic Games equitable system of community services in Mr HEALY: My question is directed to the Queensland through an industry plan. We Minister for Tourism, Sport and Racing. How have demonstrated our commitment to many Olympic Games tickets has the community services, and what we are aiming Queensland Government been allocated for to do now is ensure that the best use is made events in Sydney and to whom have they of every dollar and every hour of effort been allocated? because the people here are committed and Mr GIBBS: I am fascinated with this dedicated. fascination that the Opposition seems to have The paper, called Strategic Directions: about the Olympics. I must assume that Investing in Queensland's Community whoever may be in Government during the Services, is geared to developing a framework Olympic year will obviously be the recipient of for change in the way community services are tickets in some form. I understand that some organised and delivered. Developing a tickets have been allocated for the Olympic 28 Oct 1999 Questions Without Notice 4497 soccer matches at the Gabba. An allocation A number of recent scares both in has been made, but I do not have the figure Australia and overseas have highlighted the at hand at the moment. SOCOG has made an need for a comprehensive food safety accreditation for myself as Minister for Tourism, regulatory regime. The key is to have in place Sport and Racing in relation to my attendance preventive measures for food safety along the at the Gabba. I understand that I am entitled entire food supply chain. It is essential to to have one person accompany me to the ensure that food safety measures are in place soccer matches. right back to the farm so that products Mr Borbidge: That's okay; we are just supplied for further processing, resale and asking about other tickets. export are kept safe all the way through the processing line. Mr GIBBS: I am coming to that. That is the only knowledge that I have in relation to One of the great things about the reputation of this State is that we are seen as any allocation of tickets. A letter was sent to green and clean. In terms of exports of these me by, I think, Mr Hollway some months ago products, we have to maintain that reputation advising me that some arrangements would because out of that will come exports, and, be made in relation to tickets to the Olympics, from that, jobs. What it means is that the new but I was given no detail. At this stage I have authority will work with Queensland Health to no knowledge of what arrangements have ensure that food safety is monitored from been made—whether it be for myself, other paddock to plate. Ministers, or Ministers from other Governments throughout Australia. I have absolutely no idea The authority will be established within six of the arrangements which may have been months and initially will absorb the food safety made in relation to the allocation of tickets, if functions of the Queensland Livestock and Meat Authority and the Queensland Dairy any. Authority and also assume responsibility for implementing food safety programs for Food Safety seafood. Both national and industry-based standards will be administered and Mr PURCELL: My question is directed to implemented by the authority through the Premier. Food safety is extremely accreditation systems. It will also advise the important to today's consumers and for the State Government on appropriate regulatory reputation of our tourism industry. I ask the schemes to implement food safety. The Premier: what is the Government doing to authority will also provide a boost to regional protect consumers and to protect our employment by commissioning local reputation as a healthy destination for tourists? government officers and third-party auditors to Mr BEATTIE: Queensland is set to undertake audits of the food safety programs become the national leader in food safety in on its behalf. the three high-risk areas of meat, dairy and Recently, when I was in Japan I noted seafood. Other States have implemented that there is an upsurge in the export of some arrangements for food safety. New produce from this State—not just meat and South Wales is in the process of joining some of the others that I have referred to; Queensland in putting meat, fish and dairy Golden Circle has significantly improved its food safety under the one authority. exports. There are significant export increases in products such as mangoes. I am As members would appreciate, these encouraged that some of the barriers in Japan primary industries are fundamentally important are coming down. That is good news for to the wealth and growth of this State; Queensland producers and it is good news for therefore, protecting their reputation is very Queensland farmers. I know that, as the important. Queensland will lead the field Japanese economy continues to improve, following Cabinet's approval for the exports will increase. establishment of a new agrifood authority in this State. The agrifood authority will be responsible for assuring the safe production, Tariff Equalisation handling and transport of food products from Mr ROWELL: I refer the Minister for Mines the farm through to manufacturing throughout and Energy to statements attributed to him in Queensland. It will coordinate a number of the media that Energex and Ergon will be food safety programs which have until now required to accept greater responsibility for been handled by different Government tariff equalisation, and I ask: what is the nature agencies. So, there will be central of the increased responsibility for Energex and coordination. Ergon? 4498 Questions Without Notice 28 Oct 1999

Mr McGRADY: I thank the shadow It will be an important job generator for his Minister for the question. In recent times, we electorate, and he advocates strongly for his have heard a lot from the Opposition about electorate. tariff equalisation. I make it perfectly clear that, In relation to the Australia Trade Coast, whether the members opposite want to call it there have been some developments. by any other name, the facts are that this Marketing both nationally and internationally Government is committed to tariff equalisation. has started on a 35-hectare industrial park at Those of us on this side of the House who live in remote areas are passionate about tariff the site of the old Borthwicks building near the equalisation. Without it, if a person wants to Gateway Bridge. Members who are familiar build a brewery in Cairns and somebody else with that site would know that it is located on wants to build one in Brisbane, the person in the eastern side of the bridge as one is Brisbane has a major advantage over that coming into the city. On the other side is the person in another part of the State. So the Metroplex development. The new site is members opposite are spreading nonsense adjacent to the electorate of the member for about this Government being opposed to tariff Lytton and is in the electorate of the member equalisation. Today in this Parliament, I want for Bulimba. to make it perfectly clear that it is a Demolition work has been completed. The fundamental part of this Government's policy Department of State Development, through to maintain tariff equalisation. the Property Services Group, has scheduled This Government is all about those major development work on that site and on people who live in the country parts of this the adjoining sites that we will manage to State. Yesterday, the National Party's view of consolidate over the next six months. those people who live outside the metropolitan Relocation of electrical infrastructure is in area was exposed. It had an opportunity to progress to provide a very efficient subdivision allow one of the Ministers of this Government of the site. Major earthworks contracts are to go to a forum in which issues affecting about to be let and they will be awarded in the people in rural areas could have been not-too-distant future. discussed. What did it do? At the last moment, The work will pave the way for a it refused to allow this person to go and substantial industrial land development, a articulate the needs and the concerns of those substantial holding on the Brisbane River right people who live in country and regional within the Australia Trade Coast precinct and Queensland. the gateway ports. It is an extremely good No matter what the members opposite piece of industrial land. It has all the transport say in the various news outlets throughout this linkages that one looks for—the arterial road, State, it should be made clear that this rail access, the proximity to the port itself and, Government and the Australian Labor Party via the bridge, the proximity to the airport. It is are committed to tariff equalisation. The the only large industrial site available in south- members opposite can call it what they like, east Queensland with the potential to have but we are committed, because we care about access to all of those key infrastructure modes. those people who live in country and regional Already, considerable interest has been Queensland. shown by a number of large organisations that Mr BORBIDGE: I rise to a point of order. are seeking to locate on the site. The types of Obviously, the Minister has forgotten that businesses that we want to attract to the site when a previous coalition Government are manufacturing and engineering-type introduced tariff equalisation, the Labor Party industries—those that have the opportunity to opposed it. create high value-added opportunities for the Mr SPEAKER: There is no point of order. State and, consequently, significant job opportunities for the region in and around the Lytton and Bulimba electorates. Australia Trade Coast The Australia Trade Coast is a joint Mr LUCAS: I direct a question to the initiative of the State, the city, the Ports Deputy Premier and Minister for State Corporation and the Airport Corporation. We Development and Minister for Trade. Can the have been very successful in marketing that Minister give the House any update on the vision around the world. The Trade Coast Trade Coast industrial precinct? vision is of Brisbane as a business city, as a Mr ELDER: I can, and I thank the global trading post comparable to any other in member for the question. The member for the world. I might say that it is the goal of this Lytton has a very keen interest in this initiative. Government and its partners to make sure that 28 Oct 1999 Questions Without Notice 4499 we achieve that and deliver to Brisbane which it identified what it saw as a potential industry and job opportunities. conflict of interest on the part of the National Competition Council. The Productivity Commission found that further reforms under Alleged Misuse of QAS Vehicle competition policy needed to take greater Mr MALONE: I ask the Minister for account of the impact on the wider Australian Emergency Services: could the Minister advise community. The Productivity Commission whether she has knowledge that a senior staff wrote, "it does leave it"—referring to the member used a QAS vehicle, sponsored by a National Competition Council—"open to local firm, located in the north coast region for criticism that it is both interpreting and making a pig hunting trip to the Texas area? What the rules". We have repeatedly made that action has the Minister put in place to ensure criticism in respect to the operation of the that the misuse of QAS vehicles does not National Competition Council. It is good to see occur again? the Productivity Commission taking up the Mrs ROSE: I thank the honourable cudgels in a similar way to the Queensland member for the question. If the member has Government. any evidence of the misuse of an ambulance The interim report of the Senate Select vehicle, then I am quite happy to have a look Committee on the Socioeconomic at that evidence, to have the matter Consequences of the National Competition investigated and to get back to him. Policy criticised the operation of the National Competition Council, stating on the one hand that it thought that the public benefit test had National Competition Policy been defined too narrowly and certainly did not Ms BOYLE: I refer the Treasurer to the take into account impacts on rural areas, and Queensland Government's latest again suggesting that the dual roles of the improvements to the implementation of National Competition Council should be National Competition Policy in Queensland separated. Again, that is directly in line with the and to the release of new public benefit test submissions being made by the Queensland guidelines, and I ask: what support has the Government. Government received for its efforts to I took some heart recently when the humanise National Competition Policy reform? Deputy Prime Minister, Mr Anderson, again Mr HAMILL: As honourable members criticised the National Competition Council for would be aware, the Beattie Government is its insensitive handling of issues. I hope that determined to ensure a sensitive and sensible those are more than simply words. Rather, I administration of National Competition Policy in hope that the message that we in Queensland Queensland. To that end, we have presented have continually put has at least reached the those new guidelines for the operation of the ears of the Federal Cabinet and that we can public benefit test. We have also been quite expect some support at that level, so that forthright in our criticisms of the attitudes sensible reforms of competition policy are expressed from time to time by the National adopted in Australia. Competition Council and, when it comes to National Competition Policy in this country, the Mr SPEAKER: Order! Before calling the way in which it seems to take on the role of member for Nerang, I recognise in the public gallery students, parents and teachers of the both policy adviser and policeman. Birdsville State School in the electorate of In fact, it is gratifying to not only be able Gregory in outback Queensland. They are put in place those new guidelines for the celebrating the centenary year of outback administration of the public benefit test in education. Queensland to recognise the social and economic impacts of National Competition Policy, particularly on our regional and rural Nerang Ambulance Service Accommodation communities, but also it is gratifying to see that Mr CONNOR: I refer the Minister for the arguments that have been consistently put Emergency Services to the fact that the forward by this Government are slowly being Nerang Ambulance Service was recently adopted by other entities including, I might removed to the Worongary fire station, which say, some members of the Federal Parliament has been closed as an operational fire station and also in recent publications of Senate since the opening of the new nearby Robina committees and the Productivity Commission. Fire Station. I ask: could the Minister explain I draw the attention of the House to the why she put the Ambulance Service in a Productivity Commission's recent report in hastily erected tin shed immediately next door 4500 Questions Without Notice 28 Oct 1999 to the fire station, which remains closed and Queensland Food and Wine empty except for garaging an old fire engine? Mr HAYWARD: I ask the Minister for Mrs ROSE: There was a memorandum of Tourism, Sport and Racing to inform the understanding between the Queensland House of any new initiatives by Tourism Police Service and the Queensland Queensland to use Queensland's unique food Ambulance Service for the Queensland and wines to attract more tourists? Ambulance Service to occupy the Nerang Mr GIBBS: I thank the honourable Police Station on a temporary basis. That member for the question, because when I look memorandum of understanding expired in July at him I can see the keen interest that he 1998. Since that time, the Ambulance Service takes in the product that I am about to launch. had been operating on a month-by-month Today, I am launching the new regional guide basis out the Nerang Police Station. prepared by Tourism Queensland that showcases the wide range of food and wine The Nerang Police Station had conducted that we have to offer in Queensland. The a review of its accommodation needs and how guide is called A Taste of Queensland. It is it could better utilise the Nerang facility. In the designed to entice tourists to sample the meantime, the Queensland Ambulance regional food and wine specialities on offer Service began operating out of the old QFRA throughout the State. It highlights station at Worongary. When the police Queensland's fabulous variety of fresh foods indicated a need to more fully utilise their and many specialities, wineries, eating accommodation at Nerang, discussions were precincts and popular scenic destinations, as held between the ambulance and the police well as our regional food festivals that about a mutually suitable time for the celebrate local ingredients. ambulance to move out. As we are all aware, Queensland is a foodie's paradise. With the exotic fruits of the The Ambulance Service relocated from tropical north, succulent mud crabs and wild Nerang to Worongary on 4 October and has barramundi, export quality beef, fresh produce, taken over the old QFRA accommodation. quality wines and Australia's finest deepwater That accommodation is, in fact, being used. and reef seafood, we are lucky that we have it The 10 paramedic ambulance officers are all. A Taste of Queensland outlines the using the plant room for their vehicles, which gastronomic delights of regions, including the are under cover for the first time. They were Gold Coast, Brisbane, the Sunshine Coast, out in the weather and the sun at Nerang. The south-east Queensland country, the outback demountable that has been provided for them and western downs, the Fraser Coast, provides only sleeping accommodation and a including Bundaberg, the Capricorn region, lounge room. They are using the old fire including Gladstone, Mackay and the station kitchen, office and ablution facilities Whitsundays, Townsville, Cairns and tropical and they have established a gym in the loft. north Queensland. The demountable is temporary until we build In 1997, visitors to Queensland spent an office, study, bedrooms and dining room more than $27.5m on food and beverages facilities at a cost of around $100,000. alone. Queensland is forging a growing Feedback from the paramedic ambulance reputation for world-class food festivals such as officers is that, for the first time, they feel that Noosa's Hot and Spicy Food Festival, they have an identity, which they did not feel Stanthorpe's Apple and Grape Festival, they had at Nerang, where they operated out Brisbane's Paniyiri Greek Festival and of two rooms. They have cleaned up the old Ingham's Australian-Italian Festival. station, they are painting the interior and they A Taste of Queensland also promotes the now happily call it home. The fire truck parked State's growing wine industry by highlighting at the Mudgeeraba plant room is used for wine producing regions and festivals. Each training and in no way adversely affects year, Queensland's wine industry continues to ambulance operations. go from strength to strength. We have more than 40 wineries established. The booklet has We are replacing the one temporary been developed in conjunction with Restaurant facility at Nerang with two permanent Catering Queensland, the Department of State ambulance stations, one at Worongary and Development, the Department of Primary one at Helensvale. We are looking after the Industries, restaurateurs, the media and the hinterland, we are looking after the people of wine industry. Nerang and we are looking after the people of This very first copy is hot off the press. I the Gold Coast. give recognition to one of the finest food and 28 Oct 1999 Questions Without Notice 4501 wine experts in this Parliament, the honourable apology whatsoever for their abject failure to member for Southport, who has lost five stone implement their election commitment of $34m in weight over the past six months. In order to a year to disability services. I have not heard it. entice him back to the wonderful world of Has there been an apology for their abject eating, I am going to present him with the very failure to close the disgraceful Sir Leslie Wilson first copy of the booklet. Youth Detention Centre and build another youth detention centre? No! Has there been any apology for their abject failure to replace Department of Families, Youth and the outdated Children's Services Act? No! Has Community Care there been any apology for their failure to pass Mr BEANLAND: I ask the Minister for on Commonwealth/State disability funding to Families, Youth and Community Care and disability services for CPI increases? No! Has Minister for Disability Services why she has there ever been any apology for appointing failed the parents and children of Bundaberg the member for Beaudesert to this sensitive by sitting on her hands after repeated requests portfolio? No! Has there ever been an apology for help by the mother of a 15 year old girl who for the farce that they created around the continues to be sexually exploited by a 30 year Children's Commission, the flawed legislation old man? Is this another reason why Premier that they put in place and the shambles Beattie no longer trusts her and her surrounding the paedophilia report? Who department? could forget the craziness surrounding Bob Ms BLIGH: I am unaware of the details of Bottom's appointment and the van driving the particular case to which the honourable around Brisbane with sensitive documents member refers. I do not believe that this seeking sanctuary in the Office of the Chamber is the appropriate forum in which the Speaker? I never heard an apology for that. If details of individual families and children the National Party believes that the people of should be discussed. Queensland and the people who rely on these services will ever believe that they have any However, I can say that I am very aware track record or that any apology will be that a group of parents in Bundaberg is enough, they are wrong. concerned about the problems that parents often encounter with teenagers and adolescents as they go through a difficult time. Water and Alcohol Safety Project The member for Bundaberg has spoken to me on a number occasions. I have given a Mr MICKEL: I refer the Minister for Police commitment to the organisation concerned and Corrective Services to recent media that I will visit as soon as possible and talk coverage of the launch of the Water and about the current legislation, the proposed Alcohol Safety Project on the Gold Coast, and legislation and any suggestions that its I ask: can he advise the House of the merits of members have to improve it. the project and what impact the project will have on schoolies week party goers? I am very pleased to have a question from the honourable member, because it gives Mr BARTON: Earlier this month on the me an opportunity to bring to the attention of Gold Coast I had the pleasure of launching the the House some of the articles in last week's Water and Alcohol Safety Project, or WASP, newspaper about the new-found love of the as it is affectionately known on the Gold Coast. State National Party for the social welfare It is an initiative of the Gold Coast water police needs of the electorate. Some honourable in conjunction with other stakeholders and members will have noticed in both radio and sponsoring organisations. This is a very print media that the Leader of the Opposition important program which arose from concerns brought to the attention of his party the fact about the perceived increases in water that, in his view, they would be unable to come associated fatalities on the Gold Coast. It is a back into Government unless they were able, very disturbing fact that alcohol was a firstly, to focus more on the social welfare contributing factor in more than 50% of water needs of people, including spending on child related fatalities in the Gold Coast area. protection and disability services. However, he Clearly, there was not only room for this went further and said that it was time that they educational project but also a major need for stopped apologising for their time in it. Although it is a police initiative, it is also Government. I disagree; they have not funded through the National Drugs Strategy. It apologised anywhere near enough for my is designed to educate the public about the liking or for that of many people whose lives dangers associated with consuming excess are affected by the issues in my portfolio. It is alcohol and using drugs while taking part in my recollection that there has been no water activities or water sports. This project has 4502 Questions Without Notice 28 Oct 1999 identified the relevant stakeholders and is Mr Hamill: Who was it? The Duke of working closely with them, has developed a Wellington, perhaps? range of strategies to promote responsible Mr BEATTIE: The petition from Mr Grice behaviours and is seeking to achieve a long- had one signatory. term attitudinal change in relation to the use of alcohol on or near the water. This will include A Government member: That would be a any water-based sport or recreational activities, record, wouldn't it? including swimming, surfing, boating, jet skiing, Mr BEATTIE: It will go down in the record sailing, fishing, waterskiing and any other water of this Parliament as the petition with the least related sporting and recreational activities. number of signatures on it. More and more people are enjoying Mr Mackenroth: Maybe someone Queensland's natural recreational areas. As a shredded the other names. boatie who spends some time on the Gold Mr BEATTIE: I take that very seriously. Coast whenever I can get away, I know that Were the other names shredded? I want the the Gold Coast has some great areas for honourable member to tell this House— water-based sport and recreation. It is very Ms Bligh: They ate them. important that everybody be made aware of the dangers of alcohol use or misuse whilst Mr FELDMAN: I rise to a point of order. In undertaking any form of water-related activity. relation to the comment made by the Minister This is particularly relevant with respect to for Families, perhaps we should look in the schoolies week, which we are about to enter. I bowels of the Premier for the rest of those? say to school leavers: go to the Gold Coast Mr SPEAKER: Order! There is no point of and have a good time, but be aware of the order. dangers. I know that some of them will be over Mr BEATTIE: Mr Speaker, the Minister for 18 years of age and are entitled to enjoy a Tourism did a good job of whetting my drink. If they do, they should not mix drinking appetite earlier, and the member for alcohol with any water-based activities. This Caboolture just did a good job of getting rid of project has my support, as the relevant it. I think I will go without food for the rest of Minister, and the very strong support of this the day. I think the interjection by the Minister Government. I express my appreciation to all for Families was quite appropriate. Someone of the stakeholders and sponsors for their may have eaten them. We cannot seriously enthusiastic support for the WASP initiative. give huge weight to a petition with one We all look forward to the success of this very signatory, bearing in mind the context of this important project, because it will generate whole issue. This issue has gone on like Blue long-term benefits to all Queenslanders, Hills—it has gone on and on. But do particularly if we can change the attitude that honourable members know the difference? sees people overindulging in alcohol while engaging in water-based activities. Mr FELDMAN: And it will not go away. Mr SPEAKER: Order! The honourable member will resume his seat. Heiner Inquiry; Mr K. Lindeberg Mr BEATTIE: The difference between this Mr FELDMAN: I refer the Premier to the issue and Blue Hills is that at least Blue Hills Lindeberg petition tabled yesterday, and I ask: was funny sometimes. given that each and every one of us in this Mr Schwarten: And it had an audience. place is compromised until the serious Mr BEATTIE: That is right; it had an allegations contained in the petition are audience. There is no audience for this issue. examined, what action will he take to have There have been more inquiries into this issue those allegations investigated properly and than we have had hot dinners. The answer is: restore confidence in the parliamentary no, no, no, no, no and no. It is done. It is process and this Parliament? finished. It is over. Mr BEATTIE: I thank the honourable Mr FELDMAN: It was one of the best member for the question. I must admit that I rating shows on the Sunday program. have not had an opportunity to study the petition in detail. When I have an opportunity, I Mr SPEAKER: Order! The member for will study it in detail and examine all of the Caboolture! This is not a debate. signatures on it. I understand that there is only Mr BEATTIE: I missed that. one signature on the petition. That is an This is an historic petition, because it has overwhelming petition—one signature! the least number of signatures. That says it all. 28 Oct 1999 Questions Without Notice 4503

State School System was using this pretext to reduce the funds paid Mr WILSON: I refer the Minister for to the State school system. This is just not fair; Education to the fact that today is national it is just not reasonable; it is just not just; and it Public Education Day, and I ask: what is the is not conducive to a sound education for our State Government doing to foster the future of children. public education and what difficulties does the State Government face in supporting our great State school system? Tree Clearing Restrictions on Freehold Land Mr WELLS: For 150 years our great State Mr LESTER: I refer the Minister for school system has been providing generations Environment and Heritage and Minister for of Queenslanders with the education that has Natural Resources to his Government's enabled them to make our State what it is announced intention to introduce tree clearing today. In Education Queensland we have restrictions on freehold land and to his call on recently conducted the 2010 Consultation. We the farm lobby and the environmental are looking to consult with and find out from movement to reach a negotiated outcome, the people of Queensland what knowledge, and I ask: given his preference for a skills and understanding our children will need negotiated outcome, what will he do to shift in order to deal with the work force, the society the Queensland Conservation Council from its and the times of the end of the first decade of hardline and scientifically unjustified position the 21st century. However, the implementation that there must be no net loss of vegetation of that report and those ideals requires the that is "not of concern" by June 2001 and no cooperation not only of the State Government clearing at all by June 2003? What is he going but also that of the Commonwealth to do about them? Government. Our difficulty with that is that the Mr WELFORD: I am very pleased to be Commonwealth Government's support for the able to answer the member's question and State school system is being withdrawn on an indicate to the Parliament that our incremental basis and more or less Government will do what the previous continuously. Government failed to do. We will bring the Let me be very clear about this: there are parties together and resolve this issue in a good reasons of faith or of family tradition or of responsible and constructive way, and we will culture why people might choose to send their achieve an outcome that will be for the children to a non-State school. That decision enduring benefit of rural Queensland. It will should be respected and it should be underpin the sustainability and productivity of supported financially by State and Federal rural land so that the rural industry continues to Governments. Therefore, I welcome the thrive and prosper into the 21st century as it Commonwealth Government's decision in the has throughout this century. The salinity report last Budget to increase its funds to non-State released the other day and the other mounting schools from $448m to $507m. This came at scientific evidence about the importance of the same time as the Commonwealth maintaining a diverse landscape in order to Government was reducing funds to the State maintain the sustainability of production school system from $308m to $307m. A cut systems in rural industry is making clear why should not accompany an increase. It is simply this is only one component of a range of not fair to a large number of our children—72% initiatives our Government is taking to build the of our children. foundation of long-term economic security and production sustainability in rural lands. The iniquitous enrolment benchmark adjustment system, which the Commonwealth In relation to the issue raised by the Government runs, was recently used as a honourable member about the achievement of pretext to further cut the funds to the State no net loss of vegetation, let me remind school system. Over the last two years $6m members of the Opposition that that principle was taken back—clawed back—by the was a term of the NHT partnership signed by Commonwealth on the basis of the enrolment Mr Borbidge when he was Premier. One of the benchmark adjustment on the pretext that the elements of the NHT partnership agreement proportion of students in this State school signed with the Commonwealth was that the system had declined by a fraction of a per ultimate goal in the management of a diverse cent. But the truth of the matter is that the landscape is to achieve no net loss of total number of students enrolled in the State vegetation. What we will be doing not just with school system increased by 7,000. The the conservation movement but with the other consequence of that is that there were more stakeholders—rural industry groups, the urban students, yet the Commonwealth Government development industry and local government— 4504 Questions Without Notice 28 Oct 1999

Mr Beattie: We had a meeting only the recently published report of the Federal caucus other night. meeting that the backbench is not similarly Mr WELFORD:—is working towards silent. achieving an outcome that will be a In November of last year I wrote to all responsible and careful approach to this issue. State and Commonwealth parliamentary As the Honourable Premier has just indicated, members about the significance of the findings he, Minister Mackenroth and I met with all the of the Productivity Commission inquiry into interest groups earlier this week and we have nursing home subsidies. I was actually urged them to work towards a constructive heartened to receive overwhelming support approach which will maintain the economic from all parties, including a lot of people in this viability of the rural industry and also underpin House, for the efforts of the Queensland the long-term ecological sustainability of rural Government to achieve equitable treatment for lands. providers of aged care and their clients in Queensland. I now encourage them in their own endeavours to publicly embarrass Minister Aged Care Bishop in order to highlight the Minister's Mr FENLON: I refer the Minister for Health denial of a decision of interim relief, as to recent newspaper reports that several recommended by the Productivity Queensland Federal members of Parliament Commission, even in the absence of a final have expressed their displeasure with the decision on the whole system of funding. I handling of aged care matters by the Minister urge all members to keep on fighting for a fair for Aged Care, Bronwyn Bishop, and I ask: can deal for Queensland's frail aged who cannot the Minister advise the position of the fight for themselves. Queensland Government with regard to the disparity in funding provided for residential care for Queenslanders? Statutory Levy Collecting Powers Mrs EDMOND: I can readily empathise Mr COOPER: I refer the Minister for with those members across this Chamber and Primary Industries to his intention to introduce also the coalition Federal members of legislation to abolish the statutory levy Parliament from Queensland regarding the collecting powers of five primary industry inactivity of the responsible Minister, Bronwyn organisations to take effect next year, and I Bishop, on this issue. It is a matter now of ask: given that October is now drawing to a public record that Queensland has received close, only four sitting weeks remain this year the lowest level of Commonwealth nursing and the Government has 30 pieces of home subsidies in Australia. This is continuing legislation still awaiting debate, when will he even after the Federal Government's own introduce this legislation to give some security research organisation, the Productivity to those vital farm organisations and research Commission, found that this underfunding providers, crop insurance programs and deserves to be rectified. The extent of the contingency funds that currently depend on underfunding is significant. It is about $50m statutory levies; and if this legislation is not across-the-board, and it is not just in State- enacted by the end of this year, what action owned nursing homes; it is also in privately will he take to ensure the operations of those owned nursing homes. That money is needed groups are not disrupted mid season? for the subsidisation for the care of the aged in Mr PALASZCZUK: The State currently those nursing homes. imposes compulsory levies on producers of I have made previous ministerial five commodities—sugar, fish, milk, pork, and statements in this House in which I have fruit and vegetables—to fund producer advised the House of the deliberations of the representative bodies. There are over 60 Productivity Commission. The inquiry producer bodies that do not have compulsory commenced in July 1998 and a report was levies. As I said earlier, I will be introducing provided in January 1999. After Federal legislation in this session to provide a new Government consideration, the final report was framework for these bodies. The short answer released in March of this year. to the honourable member's question is: in due course. Honourable members interjected. Mr SPEAKER: Order! There is too much audible conversation. Queensland Ambulance Service Staffing in Mrs EDMOND: But the silence from Remote Areas Minister Bishop has been deafening in the Mr PEARCE: I refer the Minister for seven months since then. I gather from the Emergency Services to the recent media 28 Oct 1999 Questions Without Notice 4505 reports about the difficulties of attracting money will also be spent on the purchase or teaching and health professionals to remote construction of additional residences to attract areas of the State, and I ask: can she tell the staff and their families to more isolated areas. House whether the Queensland Ambulance This year there has been a specific allocation Service is experiencing similar problems and, if to construct two new ambulance staff so, what is being done to improve the residences in Charleville. The 1999-2000 situation? capital works budget for the QAS also includes Mrs ROSE: I thank the honourable almost $1m for new ambulance staff member for the question, because finding residences at Coen, Karumba, Mornington permanent ambulance staff to live and work in Island and Mount Garnet as well as the new remote areas of a State as vast as ours is a ambulance station at Karumba. constant challenge for the Queensland Ambulance Service. Queensland Ambulance Police Bodyguards; Premier is always looking at new ways to attract officers Mr GRICE: I ask the Premier: can he to the more isolated communities. I am confirm that this morning at 8 o'clock a pleased to announce that a number of those member of Parliament was refused entry to a strategies have begun to pay off. In fact, staff lift by his police bodyguards? Will it be now his vacancies in rural and remote Queensland arrogant practice to stand by while his have reached their lowest level in years. bodyguards remove elected members of As at 1 July this year, rural vacancies were Parliament from lifts, corridors and toilets to down by four from 16 at the same time last make way for his exalted presence, or is it just year. On top of this, more than 30 officers that he and the Deputy Premier need police have been permanently appointed to positions protection from the member for Charters in regional Queensland, particularly in western Towers? areas of the State. Officers have been Mr BEATTIE: I have to tell the member permanently placed at locations including Ayr, for Charters Towers that I know the member Hughenden, Charters Towers, Mount Isa, for Broadwater has a sense of humour, but it is Marlborough, Woorabinda, Yeppoon, getting a bit sad. I would be delighted to travel Emerald, Clermont, Dalby, Miles, Cunnamulla, in the lift with anyone, even the member for Dirranbandi, Stanthorpe, Warwick, Kingaroy, Broadwater. That is how generous I am: I Murgon, Beerwah, Cooroy, Gympie, would be delighted to travel in the same lift Mossman, Innisfail, Tully and Mareeba. This with him. proves that the Government is committed to Mr Elder: I'd have got out. delivering services to all Queenslanders, not just those living in big cities. Mr BEATTIE: The Deputy Premier has higher standards than I have, but I would have A number of key Queensland Ambulance been happy. I do not want this to become Service strategies have been successful in simply a cheap political stunt from him or assuring equitable access to ambulance anyone else. services for rural and remote communities. Mr Grice: Don't throw them out of the lift These strategies include improving then. aeromedical transport services through the Royal Flying Doctor Service and QAS-owned Mr BEATTIE: I will give him a serious aircraft, upgrading radio and electronic answer and he will regret having asked the communications by installing repeater stations question. The bottom line is this: my wife's and links and regular consultation with local father has passed away and there is a funeral ambulance committees at a community level. in Bundaberg today. I was moving very quickly The 1999-2000 State Budget includes a because of a number of circumstances $700,000 injection into rural and remote involving my children. It was an unprecedented incentives on top of a $400,000 allocation last set of circumstances, but it was one that financial year. related to the death of my wife's father. Although the QAS focuses on employing locals where appropriate, it is difficult for them Portion 238, Logan City to maintain their skills because of the small Mr MUSGROVE: I refer the Minister for number of cases they treat. The scheme Environment and Heritage and Minister for provides officers who are prepared to spend Natural Resources to the Government's pre- time in remote communities with certain election commitment to jointly purchase an conditions, including special leave, an isolation area of land within Logan City known locally as bonus, living allowances and an integrated portion 238 for the purposes of nature transfer system. For the second year running, conservation and community recreation. I ask: 4506 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 what progress has been made in meeting that reopen the South Burnett Meatworks at election commitment? Murgon. Does he understand and can he Mr WELFORD: I thank the honourable explain to his colleagues the importance of the member for his commitment and efforts in South Burnett Meatworks to Queensland's pursuing the issue so vigorously on behalf of primary industries? What, if anything, has he his constituents. I am pleased to announce to done to assist in having that plant reopened? members of Parliament that a couple of weeks Mr PALASZCZUK: The expressions of ago I had the great pleasure of handing over interest period for the sale of all or part of the to the Logan City Council, on the site of South Burnett Meatworks' assets closed on 6 portion 238 in Logan City, a wonderful area of August 1999. The administrator considered native bushland, a cheque for $842,000 to three proposals, including one from the cover 50% of the purchase price of portion directors of the South Burnett Meatworks. 238. That will add 133 hectares of land at Suncorp-Metway Limited, the secured creditor, Cornubia to the public open space of the agreed to fund the care and maintenance Logan City area. Before the last election, the program during the expressions of interest Labor Party promised to assist the Logan City period. The Government provided priorities to Council to secure this unique habitat for many facilitate this arrangement. Now the State species, which is right on the doorstep of the Government will consider funding a business urban community of Springwood in Logan. We plan and the care and maintenance costs for a have now delivered on that promise. further three months. However, that is subject The Logan City Council and the local to the administrator's pursuing a viable communities are also to be congratulated for proposal for the sale of the operation as a their efforts to preserve this land situated just going concern. south of the Venman Bushland National Park. At a creditors meeting held on Friday, 3 Its purchase will add to the protection of an September 1999 the administrator important koala habitat in the Daisy Hill area recommended that the meeting be deferred and provide another valuable green belt in the until 29 October 1999 while a proposal south-east for the community's benefit. The submitted by R. A. Wenham be considered. Government's contribution to this purchase The meeting accepted the administrator's was made on the basis that the land will be recommendation. The Government continues protected under the Nature Conservation Act. to liaise with the various stakeholders in an The next step is to prepare a management endeavour to find a viable proposal to reopen plan for the area giving priority to issues such the meatworks. The Government does as conservation, recreation, fire management recognise the significance of this business to and general maintenance. That management the South Burnett region. That is why the plan will be developed with extensive Government will be holding a Community community consultation to ensure all members Cabinet meeting in the South Burnett region to of the local community can be involved in the talk to the people affected not only in the ongoing protection and management of that meatworks but in other areas as well. wonderful area. In the long term, it may be possible to link that portion of bushland to the COMMONWEALTH PARLIAMENTARY Venman Bushland National Park. ASSOCIATION This project is an excellent example of the Annual General Meeting way that State and local governments can Mr SPEAKER: Order! The time for work in partnership to achieve positive, questions has expired. The annual general enduring conservation outcomes in key areas meeting of the Commonwealth Parliamentary for all Queenslanders. It is pleasing to see the Association will be held today at 1 p.m. in this responsibility for protecting our environment is Chamber. being shared across all levels of Government. This purchase is not only a win for the environment but yet another successful APPROPRIATION (PARLIAMENT) BILL delivery on a commitment that our party made APPROPRIATION BILL at the State election last year. I thank the Resumption of Committee on Appropriation honourable member for his contribution to that Bill effort. Estimates Committee E Report South Burnett Meatworks Resumed from 27 October (see p. 4440). Mr SEENEY: I refer the Minister for The TEMPORARY CHAIRMAN (Mr Primary Industries to the ongoing attempts to Reeves): Order! The question is— 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4507

"That the report of Estimates accepted by the regulator. There will be Committee E be adopted." substantial opportunities lost for refineries for Mr ROWELL (Hinchinbrook—NPA) the base metals that come out of the north- (11.30 a.m.): This is the first time the west minerals province of the State. Queensland Government has been in deficit If we are going to be smart, as the since 1977. It is in deficit to the tune of $1.24 Premier says, we need at every opportunity to billion. I think that is quite significant. value add to those minerals that are worth The estimates revealed an escalation in over $1 billion in export income to electricity equalisation costs. One of the major Queensland. The use of electricity will be a concerns with the budget of the Department of significant benefit if we are to increase the Mines and Energy was the blow-out in the value of our raw products right throughout CSO payments for the 1998-99 year in Queensland. comparison with the previous year. $93m was Electricity is one of those areas that is so budgeted for, but the actual cost blew out to important. There is no doubt that if we do not $419m in the 1998-99 financial year. The have a competitively priced source of energy, budget used payments from the Government then industry that would have been attracted owned corporations to offset the community to the most advantageous location for service obligations. There was an increase in processing will miss out. But it goes beyond dividends payable from the generation the new industries. Existing industries have to corporations to come to terms with the compete in both domestic and export markets. massively increased community service If goods are manufactured in Townsville, obligations. where the price of power is considerably higher The director-general of the department than in Brisbane, and the same opportunities said that the CSOs were higher than are not available in the contestable market, it anticipated for tariff equalisation but that in is only logical that, in pricing the manufactured 1999-2000 there is expected to be a decrease item, where high-cost energy is used the due to the stabilisation of the electricity prices, Brisbane manufacturer would have a distinct which would result in a lower tariff equalisation advantage. If the Burdekin cane farmers can payment to retailers. The Minister attributed use lower electricity charges to irrigate their the massive escalation to the energy pool crops, then they will be more competitive with price of $60 a megawatt as against a forecast the low labour cost countries such as Brazil. of $37 a megawatt. There is a belief that the This will be critical in the light of the years we market will stabilise and that the CSOs will have been experiencing of low world prices. reduce to $259m in 1999-2000. Both the Time expired. director-general and the Minister thought this The CHAIRMAN: I recognise the presence was achievable. If in the future the in the gallery of students and staff from commitment is to continue with tariff Glenview primary school. equalisation, which is a fair and reasonable expectation for Queenslanders who do not live Honourable members: Hear, hear! close to generators, how will we prevent an Hon. K. W. HAYWARD (Kallangur—ALP) increased cost of supply of electricity in light of (11.35 a.m.): It is a pleasure to speak in the the variations that may occur when purchasing debate on the report of Estimates Committee electricity? E. I wish to focus on the area of Mines and One of the issues that has to be Energy. One of the key initiatives of the addressed is the distribution of generating department for the 1999-2000 financial year is capacity. We have to ensure that it is to set aside $2m to enhance and increase appropriated around the State to at least cut mineral exploration and energy exploration in down the cost of power losses in the distance Queensland. I recognise that as a key initiative over which power has to be delivered. The because, as we in this Parliament all know, problem will continue to be exacerbated if mineral exploration is a high-risk activity. There power stations are located in one particular is no guarantee that a mineral explorer will get area of the State. It is not only about power some results. There is no guarantee even that losses in the distances that energy has to an explorer will be able to identify a reasonably travel but also about the additional increase in prospective area or then go to the next stage the existing conductors if growth is of obtaining a mineral development licence decentralised in the State. We do not want a and, finally, a lease. manufacturing industry centred around the Exploration is the initial activity. The fact is generators that are located in one area of the that mineral exploration activity is, like a lot of State because proposals are put forward and things in our society, very price sensitive. One 4508 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 of the problems in exploration activity, not just seven regional electricity councils to provide in Queensland but also in Australia and right input into Energex and Ergon and to ensure around the world for that matter, has been that Queensland communities retain an falling export prices for most minerals and bulk important voice in relation to their electricity commodities. The most obvious example is supply. gold and gold mining. Every night on the news Time expired. services we are given the price of gold. Miss SIMPSON (Maroochydore—NPA) With the problem of falling export prices (11.41 a.m.): This Government is a secretive, for minerals, the level of mineral exploration Stalinist Government in its approach to has continued its downward trend. For managing Queensland Health. When any example, the March quarter of 1999 was 7% Government, such as this one, condones lower than the estimate for the December using hidden cameras in the roofs of hospitals quarter of 1998. In dollar terms, the March to spy on staff, it is understandable that this is quarter expenditure of $166m was the lowest going to strike fear into the hearts of those since the March quarter of 1993. As I said staff right around the State. And yet the same before, this is what occurs in a situation of measure of that Government is that it is falling prices for minerals. holding back information under freedom of The problem is that, in order to find information laws, quite blatantly, by abusing minerals, prospective areas need to be the processes and by taking wheelbarrows of identified, and that is as a result of mineral information through Cabinet after I have put in exploration. It becomes a vicious circle, requests for legitimate information. It makes a because the lower the price of minerals the joke of the Charter of Social and Fiscal less exploration there will be, and the less Responsibility of the Beattie Labor exploration there is the less likely it is that Government, because where is the minerals will be found. transparency, where is the accountability, As I said, the setting aside of $2m for when basic information which should be mineral exploration in Queensland is a key available to the people of Queensland and the initiative of this budget and of the department. various health districts is not available on the As a result of this, potential prospective areas public record and is taken through Cabinet in are identified by the department through a the weeks after I have lodged requests under detailed mapping process. That will give an freedom of information? opportunity for explorers to take on the I want to refer to the assets tax, or the so- opportunity of exploration activity, certainly with called equity return, which this Labor no certainty but with some added knowledge. I Government has introduced—mortgaging the take the opportunity to congratulate the assets of the Health Department, mortgaging Minister and the department on setting aside the social infrastructure from here to eternity that $2m to enhance and increase mineral under this Labor Government. I do not think exploration and energy exploration in that people have fully realised the full impact Queensland. of this, and I just wonder how the Health The Government, of course, is Minister sat idly by in Cabinet when this tax determined to provide Queensland with world- was applied to every hospital in Queensland. class electricity and gas services. Importantly, Every future redevelopment or current hospital they are characterised by reliability, efficiency project or little country hospital will have a 6% and competitive prices. Of course, steps have tax applied to their assets holdings for assets been taken—decisive steps—to ensure that over the value of $5,000. In reality, that is the energy sector performs to the highest going to be an operational tax, because those possible standards. who cannot flog off the hospital morgue or the In the electricity sector, the Government hospital precinct will have pressure put on has instituted industry reform processes to them to come up with the money to fund that ensure that the Queensland electricity sector is tax back to Treasury—a 6% tax. able to provide a more reliable and competitive I cannot understand how a Labor supply of electricity and overcome deficiencies Government can put a tax on infrastructure and inadequacies that existed with the where obviously there are no commercial previous structure. Ergon Energy was created returns to be made. That is going to have a following the amalgamation of the six former major impact, particularly in rural areas, where electricity distribution corporations and is now the fat cat bureaucrats who have increased one of the largest and most powerful their salaries in the Health Department are corporations in regional Queensland. The going to be putting pressure on those country Minister, of course, has appointed members to hospitals. If they do not have a certain 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4509 turnover of staff and procedures, they will say, question the actions of a Minister who does "Why do we need them?" We know why we not provide adequate funding to a very, very need them: because they provide a basic level important area dealing with some of the most of coverage and care. hazardous material that hospitals and a variety With regard to the accrual accounting of other sites could have on their premises. process, once again we found that, in these Time expired. Budget papers, there was a disgraceful lack of Mr PEARCE (Fitzroy—ALP) (11.45 a.m.): any targets or measurements of real activity Estimates Committee E heard from the and outcomes. Continually in the process, we Minister for Mines and Energy and the Minister found that the Government would use the for Health, and in the time available to me I will excuse, "We have gone to accrual restrict my comments to the portfolio of the accounting." The Health Department would Minister for Mines and Energy. have a very good idea of the transitional arrangements that are in place; it was just that The appropriation for the Department of the Minister did not want to bring that Mines and Energy is a budget of $333.122m accountability into the Chamber and let people for the 1999-2000 financial year. I want to look know what the impact was upon the district at what is happening in the mining industry budgets and upon the various services under the Mines and Energy portfolio. It will be throughout the State. no surprise to honourable members that I will start with the Queensland coal industry. I wish After the introduction of this Budget into to advise the House that Queensland's coal the Parliament, I have had wardsmen, nurses production increased by some 7% in 1998-99, and health professional staff around the State and exports increased to a record 85 million saying to me, "We are having our hours cut tonnes. This confirms that coal is the world's back. We are being laid off. We have wards most economical source of energy, and we being closed. There is no real increase in our can expect coal exports to increase over the Budgets." Despite what the Minister has put coming years. out in her press releases, she has not released any evidence which provides proof of a real The Queensland Government is also increase in funding to many of the districts supporting investigations into clean coal throughout this State. There is no evidence of technologies. The Department of Mines and a full funding of the enterprise bargaining Energy contributes funds to the Cooperative agreement which increased the Health wage Research Centre for Black Coal Utilisation, the costs by $135m in a recurrent year—an Coal Utilisation Research Unit at the University extraordinary increase in costs. We cannot see of Queensland and the CSIRO coal where that has been fully funded to the classification research facility at the districts. And certainly, from talking to people Queensland Centre for Advanced who are having their hours cut back, it appears Technologies. In addition, the Government's that there is no evidence, and the Minister QTHERM coal promotion program provides provided no evidence during the Budget technical information demonstrating the process. attractive environmental and superior utilisation properties of Queensland coal for the world's I want to refer to the Radiation Safety Act. markets. It is very important that this be brought to the attention of the people of Queensland. It was The Government is dedicated to doing listed as an important outcome of the previous everything possible to assist exploration and financial year, yet it has not all been development in Queensland and, as a proclaimed. Extraordinarily, we have seen a consequence, the Government has developed reduction, under this Government, in the an $8m initiative to promote exploration in this actual number of audits done on sites State. The exploration initiative, about which containing hazardous radiation material and the member for Kallangur has already spoken, the monitoring of how those sites are handling will concentrate on creating more effective and that material. New legislation was introduced efficient means of capturing and maintaining which was supposed to make it safer for the geoscientific information and producing people of Queensland in relation to radioactive geoscientific information products which meet material. But the Government did not fund the needs of the resource sector. The initiative enough people to go out and monitor those also incorporates the production of general sites. It is completely crazy for a Government promotional information and the development to say that it is introducing legislation to make of strategies to promote the State's mineral it safer, and then reduce the monitoring of prospectivity and investment potential. sites and the number of audits of sites that are The Queensland Government is also handling that extremely hazardous material. I committed to introducing policies which will 4510 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 ensure that Queensland is not simply seen as and very dedicated work. I thank the Ministers a quarry where companies dig minerals out of and their officers for their work and their input. the ground and export them overseas in their The role of the Mines and Energy portfolio raw state. A Government working group is is to "maximise the sustainable net benefit to currently developing a policy framework to Queensland from the identification, encourage further value adding to minerals in development and use of its mineral and Queensland, as well as listing a range of energy resources". There would be many in project development opportunities aimed to my electorate—and I am sure in other attract further investment and employment into electorates as well—who would add, "not to the industry sector. the detriment of those people who live within The Carpentaria-Mount Isa Mineral the affected community". I would again put on Province study, established by the Goss the record the unresolved issues between QCL Government in 1992, was successful in paving and EEMAG members and an emerging the way for investment of more than $3.5 potential problem between Suncor/SPP and billion in the State's northern region. The study residents at Targinni. facilitated the creation of over 2,000 direct I commend the allocations in the budget permanent new jobs and around 6,000 to in relation to alternative energy, including the 8,000 indirect jobs in associated industries. $5.5m rebate program for remote area power The current Queensland Government wants to supply schemes. Those of us on mains power build on the enormous success of that initiative do not realise the impost of not having a 240 through its north-west Queensland volt supply to the house. development initiative. The project aims to identify and evaluate further economic One issue of emerging concern is development opportunities for indigenous and community service obligations. In question non-indigenous employment by helping to time today, the Minister reaffirmed the facilitate, for example, new business and Government's commitment to tariff enterprise development, mining and mining equalisation. I am sure all honourable services, as well as tourism and agribusiness. members support the Minister in that reaffirmation. Access to land for exploration for mining is Before the Estimates committee, the critical. In this regard, the key issue is the Minister and Mr Boyle referred to the 1998-99 introduction of practical native title legislation. This Government has taken the initiative to Budget blow-out with regard to community introduce a comprehensive package of service obligations and referred to the more legislation to get explorers and miners back on difficult estimating process for CSOs in the the ground in Queensland. We are now competitive electricity market. It was projected dependent upon Commonwealth approval of in the Government's first Budget that CSOs would be at $90.5m. The actual amount the alternative State provisions to the right to climbed to $419m. That is a huge over-cost to negotiate. I am hopeful that this will occur in have to cover in any Budget. The current early 2000. estimate for this year's Budget is $259m. It is There has been some criticism by critical that the community service obligation is elements of the exploration industry that the fully funded in order to recognise the diversity alternative State provisions are too complex for and interdependence of our State. exploration and that they will discourage The Health portfolio is always an emotive investment. The provisions are constrained by area because health is a fundamental issue to the Commonwealth legislation, but they do the quality of life of people in all electorates. provide for reconnaissance exploration Concerns were expressed about staffing activities, including most drilling, to proceed levels—particularly the number of nursing staff. relatively simply. The provisions give— The Minister acknowledged the difficulty of Time expired. recruiting nursing staff. In my area, there was Mr BAUMANN: I rise to a point of order. an increase in the number of staff in the Mr Chairman, I draw your attention to the state administration area as opposed to the nursing of the Committee. area. There may be a good reason for that, but people in hospital would much rather see Quorum formed. an increase in trained nursing staff numbers. Mrs LIZ CUNNINGHAM (Gladstone—IND) In all areas there is a need for highly (11.51 a.m.): At the outset, may I thank the trained nursing sisters. Some years ago there member for Mackay for his work as chairman was a change of focus and the result was that of the committee. I also thank Veronica and university qualifications were needed for the other committee staff for their professional nursing training. I am probably from the old 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4511 school because I believe that in-ward-trained There was ample opportunity for the nurses had a very compassionate approach to members to raise pertinent questions and patient care. Whilst I acknowledge the need concerns during the public hearing, but it for good educational qualifications in this area, seems that they only thought about them later this must be balanced with good patient care in the privacy of their post-Estimates meeting. skills. The success of the Westminster system I am sure everyone in my electorate depends on an Opposition that is prepared and able to ask the questions that it feels would say that the hospital staff in my area are should be answered and to ensure that the wonderful. I commend each and every person relevant information goes out to the public. involved, whether they are in the private or public sector. But there is one area of The Government is very comfortable with emerging need on which I could not receive a the format of the Estimates committees. The definitive response from the Minister. I refer to Government certainly has nothing to hide; in community nursing. With Federal case mix fact, I am more than happy to talk about our funding, patients are being discharged earlier. achievements anywhere at any time. I asked the Minister for an indication of the To address what seems to be a major amount of dollars that had been allocated to gripe from those opposite: there are obviously community nursing for early discharge post- times when commercial-in-confidence acute care in the community, as well as those information needs to remain simply that. We who are discharged from day surgery. I could could have a situation where detailed not get a dollar figure from the Minister. I was commercial information can simply not be concerned to see that that allocation was provided. This is not because of any desire on increased in real terms. the part of the Minister or the Government to The Minister confirmed that there were be secretive, but in many cases we are talking increases in community health in the areas of about highly sensitive commercial information mental health, youth health nursing and child which has to remain confidential. health. I would not say that that is not Presumably, we are all in agreement that necessary, but there is a critical need to the Government owned corporations must increase the funds allocated to community operate in the commercial world. When those care nursing as a result of the early discharge opposite were in Government they took the of patients. The staff are stressed and are axe to the Government owned generators and overworked. They are compassionate people split them into three competing corporations. who see the need of the discharged patients. That action placed the generators into the They often work extra hours in an endeavour cold, hard, commercial world. I have to say to ensure good quality of life for those that, in general, they are operating patients. successfully in the marketplace. I have expressed, and continue to It is not the action that I would have express, concern at the equity return. I heard taken, but those opposite were busily trying to the responses from the Ministers. I thank the set up the industry so that it could be flogged Premier for the briefing that he organised with off in bits and pieces to the highest bidder. Treasury— They wanted nothing to do with the industry except to get their hands on the almighty Time expired. dollar. But, having split the industry into Hon. T. McGRADY (Mount Isa—ALP) competing commercial operations, those (Minister for Mines and Energy and Minister opposite must accept the consequences of Assisting the Deputy Premier on Regional their actions. They cannot now turn around Development) (11.56 a.m.): I have read the and expect the corporations to place their Opposition's minority report in which it is commercial operations in jeopardy to satisfy claimed that I refused to answer certain what basically amounts to idle curiosity. questions. May I say that for four and a half It would have been appropriate for the hours I sat and took questions from the non-Government members to be fair in their committee. I have to say that most of the summation. As I have said previously, for four sensible, probing, constructive and beneficial and a half hours I answered questions and I questions came from the Government believe we covered a vast amount of members. The whole purpose of the Estimates information related to this portfolio. At the end system is to allow the Opposition to extract of the day, I believe the process worked very information from the Minister as to how he or well. It was in the best interests of the she has managed the portfolio and the budget Westminster system and it supported the associated with it. Estimates committee members. 4512 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999

I have a passion for the mining industry Firstly, the Minister refused to answer and, indeed, the energy sector, because I every non-Government question on believe that these industries are the dynamo notice—not just one or two, but the lot. The that drives the Queensland economy. I am questions had to be reformatted before the pleased with the way in which the Beattie Minister would answer them. No doubt, the Government has turned around the electricity Minister was shamed into action and forced to industry in a very positive way. Brownouts and show a little accountability when he woke up blackouts are no longer headlines on a daily that only he and the member for Kedron were basis, as opposed to how things were in the attempting to avoid accountability. When the days of the Borbidge Government. We have Minister did answer questions, again and amalgamated the regional electricity again he hid behind the old tired formulas of distribution corporations from six into one—a commercial in confidence and confidentiality decision that is now accepted by all as the clauses. right decision, but one that the Borbidge The member for Gladstone wanted to Government refused to make. Even though all know about the terms for which energy the expert advice suggested that this should corporations had signed for Papua New be done, the Borbidge Government had eyes Guinea gas. Quite rightly, she wanted to know only for flogging off the industry to grab the whether they were signing up for a almighty dollar. competitively priced gas product. I support the Papua New Guinea gas project and this is a During the Estimates committee process, fundamentally important question. However, I believe that we passed on a tremendous the Minister answered— amount of information and demonstrated the very positive things that have been achieved in "As the terms of the agreements are my portfolio. We have restructured the commercial in confidence and are subject electricity industry, introduced new safety and to confidentiality agreements, price and health legislation, established an Office of terms of supply are not able to be made Sustainable Energy, set up groups to help available." combat downturns in the mining industry and In other words, the taxpayers and electricity help further unlock the vast potential of our users of the State are to be kept in the State, taken initiatives to increase mineral dark—perhaps in more ways than one if this exploration in our State after several years of Minister continues to keep deals like this one neglect, and introduced a new era of secret. environmental management in the The Minister even refused to disclose the Queensland mining industry. Those are the amount of mining royalties paid to each types of things that make a difference. They coalmine on the basis that it conflicted with are the things that make this State great. I find section 334 of the Mineral Resources Act. it rather sad that the Opposition does not When asked if he had any legal advice to back seem to recognise the significance of those up that curious interpretation, he refused to points. They prefer to pull stunts, whinge and answer. He danced around with a few complain. sentences, but would not disclose whether this Time expired. retreat from accountability was soundly based or just another exercise of ministerial Mr MITCHELL (Charters Towers—NPA) arrogance. When asked what advice from (12.01 p.m.): I rise to speak to the report of Government owned corporations the Minister Estimates Committee E, especially as it relates had received as to their likely dividend to the portfolio of the Minister for Mines and recommendations, which they are required to Energy. I have listened to the Minister's give to the Minister and the Treasurer by 30 response to the report. However, I say that September, he again refused to answer. He one of the most disturbing things to come out said that it would be inappropriate to comment of the Estimates committee hearing as it on the figures until the shareholding Ministers related to the portfolio of the Minister for Mines made their own decision. and Energy was the repeated attempts by the That really sums up our concerns. Firstly, Minister to avoid answering questions and we have a Minister of the Crown refusing point being accountable for his actions. Although blank to cooperate with the parliamentary the Energex fiasco received the most publicity Estimates committee and disclose information from the hearings, the Minister's repeated that he had and that the public has the right to refusal to come clean on how he and his know. Secondly, we have a Minister who Government are operating should have makes no bones about his view that it is not received more publicity. appropriate for Parliament or the community to 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4513 receive information that is not in his interests to secretariat, the Chief Hansard Reporter, Mr disclose. That is another chapter of this Alan Watson, and his staff and the Minister's trust-me approach to Government. parliamentary attendants for their valuable He gives out as little information as possible, support and assistance. has unfettered powers and treats Parliament The committee examined the budgets of with disdain. Queensland Health and the Department of The Opposition believes that this Mines and Energy. Previous Government Minister's performance at the Estimates speakers have dealt with the budget of the hearing was not only substandard but also Department of Mines and Energy. In the time highlighted a much more troubling dimension that is available to me, I intend to speak to the of the Beattie Government—a retreat from budget of Queensland Health. The accountability and a reliance upon Queensland Labor Government is corporatisation as a means of hiding critical implementing the largest hospital building and information from the taxpayers. I would have refurbishment plan in Australia. The visionary thought that whether or not a body is Statewide Health building program was corporatised, the ultimate shareholders—and initiated by a Labor Government in 1992. The they are the voters of Queensland—deserve program includes the rebuilding, refurbishment some answers and not just a trust-me and re-equipping of public hospitals, aged-care response from the two shareholding Ministers. facilities and community health centres It was not just the old chestnut of commercial throughout Queensland. The total cost of this in confidence that was relied upon. As I program is now estimated at $2.8 billion. mentioned, the Minister would not tell the During 1998-99, the program reached its peak Queensland Parliament how much each and with $632m spent on the capital works every mine is paying in royalties. No doubt, the program. This financial year, more than $563m shareholders of these mining companies can will be invested. That includes major and will find out, either in the annual reports of investment in the Herston hospital campus, these entities or at their annual general the Princess Alexandra Hospital and the new meetings. However, the Queensland public Townsville Hospital. and the Parliament were fobbed off by the However, there are highlights in Minister. communities across the State. An amount of Finally, this Minister would not disclose $9.2m is earmarked towards the refurbishment what his GOCs had advised were their likely of Cairns Hospital's A and B blocks, which dividends. He did not disclose that because house the general wards and support services did he not want to. It could have proved for the clinical wards. This year, there is an embarrassing. It could highlight that he and his allocation of $26.6m for mental health fellow shareholding Minister, the Treasurer, facilities, including new accommodation for intended to rip more money out of them, pyschogeriatric patients at Charters Towers. thereby placing them at a commercial There are new facilities for patients with disadvantage and making the task of proactive acquired brain injury at the Moreton Bay maintenance all the more difficult. Nursing Care Unit at Wynnum. At the All in all, it was a disappointing and Toowoomba Hospital, we are building new and troubling performance from a Minister, not in a expanded facilities and services for acute new, open and accountable Government that mental health patients. We are also has nothing to hide and is operating redeveloping Wolston Park. Another significant effectively, but in an arrogant and tired investment is the $20.5m allocated to the Government that, although it has been in Mater Hospitals to redevelop the Mater power for just one year of its term, is already Children's Hospital. showing signs of being an administration that There is building activity right across the is not up to the task and one that will do State. We are completing and commissioning anything to avoid the glare of accountability. a new community health centre at Mr MULHERIN (Mackay—ALP) Cunnamulla, which will integrate the current (12.06 p.m.): In speaking to the report of Aboriginal medical service. At Bamaga, we are Estimates Committee E, I thank the deputy building a new 14-bed acute facility and we are chair and member for Hinchinbrook, Marc building new facilities at Palm Island. We are Rowell, the other members of the committee, also involved in the progressive completion Ministers and their departmental officers for and commissioning of a new link building for their cooperation and contributions during the the Bundaberg Hospital. Estimates process. I commend also Ms In my electorate of Mackay, $16.6m will Veronica Rodgers and the committee be spent to complete Stage 3 and Stage 4 of 4514 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 the hospital redevelopment. The Finally, throughout the Estimates process redevelopment at Mackay will include a new the Minister for Health and the Minister for women's section, a child and adolescent unit, Mines and Energy demonstrated that they a new medical records unit, a new allied health were on top of their portfolios through their building, a new front entry, an emergency knowledge and their clear vision for the future department and a new ambulance entry, a for their departments and Queensland. I new day procedures unit, refurbished medical commend the report to the Committee. imaging, a refurbished intensive care unit, a Mr SEENEY (Callide—NPA) (12.11 p.m.): new fourth operating theatre and a dedicated I rise to comment on the report of Estimates aged-care rehabilitation unit. All of that work Committee E. Although I did not attend the should be completed by Christmas 2000. Estimates committee hearing, the portfolios Queensland Health's capital works branch that the committee investigated are particularly has become extremely proficient at designing important to my electorate. When I read the and managing these large projects and transcript of the committee hearing, I was ensuring that Queenslanders get real value for interested to note that the Minister for Mines money from their hospitals and other health and Energy avoided so many of the questions services. We are building a network of modern, that were put to him. That raises some very first-class hospitals and other health services serious concerns about the ability of the throughout the State. They allow Queensland Minister to come to grips with the huge issues to keep pace with modern best practice in involved in his portfolio. health care. I note that the Minister has not seen fit to However, under this Government, Health stay in the Chamber today to hear the is about much more than hospitals. We are comments of members of the Opposition and building a sustainable health system that does members from his own side concerning his its utmost to keep people out of hospitals or, if very poor performance at the Estimates treatment is required, a health system that committee hearing. Yesterday, we were treats people close to where they live. For treated to an enormous whinge session from example, an additional $5m was allocated in the Minister and his colleagues about how we prevented him from going to Canberra. When this year's budget to support community-based one reads the transcript of the Estimates palliative care services for the terminally ill. The committee and one witnesses his performance Government recognises that many people who in this place today, it is no wonder that the suffer from progressively deteriorating illness Minister wanted to go to Canberra. He, of all want to remain in their homes for as long as possible. That is as it should be and we are people, should be present. A number of making it possible. Ministers have portfolio areas that cover rural Queensland, so someone else could easily This year the Government is injecting a have gone to Canberra. Instead, the Minister further $13m into mental health initiatives. This for Mines and Energy tried to use that as an will ensure the continued expansion of excuse to avoid his responsibilities with respect community-based mental health services in to accountability in his portfolio. line with the Government's 10-year mental When I looked at the transcript of the health strategy for Queensland. The Estimates committee hearing, the first thing Government is tackling the drug problem. A that I looked for was any mention of the new training program is being developed to Callide C Power Station, which is critically assist medical practitioners to detox drug important to my electorate. Apparently, the dependent people in the community. A sum of Minister's conscience is still troubling him over $40,000 has been made available in this the Callide C project. Members will remember year's budget to conduct three training that it was a major issue in the Estimates sessions for 45 medical practitioners committee hearing last year. We all remember throughout the State who want to be involved well how the current Minister for Mines and in drug detoxification programs. This program Energy twice tried desperately to stop the complements three other drug training Callide C project, but he was unsuccessful. I programs funded by Queensland Health, am pleased to say that the Callide C project is including the Methadone Training program, well into its main construction phase, which is the Naltrexone Relapse Prevention program providing a huge economic boost to the whole and the addiction studies courses at the of the central Queensland region and the town University of Queensland. Those four of Biloela in particular. I congratulate all of the programs make up the most comprehensive people who are working long hours in multiple training program in substance abuse available shifts on the Callide C project for the work that for health professionals in Australia. they are doing. 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4515

It is particularly gratifying to see such a person has preached the highest principles of huge project come to fruition because, when behaviour that are needed in our society, but the coalition was in Government, all of the she is condemned by her own words and people involved in the portfolio put in a great actions. Increasingly, the member for deal of effort to get that project to the stage at Maroochydore makes up stories without any which it was ready to go ahead. Unfortunately, factual basis, promotes untruths and simply the coalition lost Government at the election. tells lies in the Chamber. On an almost weekly Because I know of the effort that the current basis she claims that a hospital is closing, yet Minister for Mines and Energy put in to trying none of those claims have eventuated. to stop and to sink that huge project, it is Unfortunately for the member, she has done particularly gratifying to see that it is taking this so often that even the media have shape in Biloela. As I said, it is obvious that stopped listening to her because they know the Minister's conscience still troubles him, that she is simply not telling the truth. because he was again responding to the issue For example, about a month ago the at this year's Estimates committee hearing. member's claim about the Prince Charles The Minister was asked about Hospital was shown to be false. She said that maintenance issues relating to Energex and people were being disadvantaged because Ergon. There is a lot of concern in central services had been cut when in fact two new Queensland regarding maintenance. When 12-strong community health teams had been one drives beside some of the main power put in place. It was a lie. She said that services lines, it is pretty obvious that the maintenance were being cut because wards were being programs are certainly not what they could be. closed. Old wards were being closed because Even the casual observer can spot poles that a new $120m hospital wing was opened. The look very much in need of replacement. It is residents and the patients of the north side of not hard to find poles with white crosses Brisbane were provided with the most modern painted on them, which means that they need and up-to-date facilities. The false claim by the to be replaced. It is not hard to see poles that member for Maroochydore, the shadow Health have been around for a heck of a long time. Minister, was that services were being taken Indeed, some almost have crosses painted on away. That was another absolute lie. top of the crosses. The shadow Minister The member also claimed that services recognised the problem with maintenance and were being taken away from the mental health asked a question of the Minister on the issue, area because the Winston Noble Unit was and that question was taken on notice. It is being closed. It is correct that the 40 year old interesting that when we eventually received Winston Noble Unit was closed, because a the answer, we saw that rather than providing new and thoroughly modern mental health unit any sort of increase in funding to address the has already been built and opened. Residents fairly obvious maintenance problem, there has been a marked reduction in the total on the north side of Brisbane are being expenditure on maintenance for Energex and provided with the most modern health facilities Ergon from $69,000 to $65,000 for the current that we can provide, yet the member opposite year. Once again, that points to a disturbing has claimed that we are taking mental health trend. The trend line should be going the other facilities away from people. Again, that was a way, yet the Minister sees fit to cut the lie. maintenance budget at every opportunity, I refer now to some of the more positive rather than increasing it. aspects from this positive Minister in the Mr McGRADY: I rise to a point of order. positive Beattie Government, which is actually The Minister has no input at all into the doing things for people. One of the budgets of Energex or Ergon. Government's biggest projects is continuing the Goss Government's 10-year rebuilding The CHAIRMAN: Order! There is no point program, which will put some $2.8 billion worth of order. of new facilities into hospitals throughout Mr SEENEY: I thank the Minister for that Queensland. We are committed to continuing comment. that program. Again, it was Labor that said, Mr SULLIVAN (Chermside—ALP) "Let's do a revamp of the hospital system and (12.16 p.m.): I wish to speak on the Health provide Queenslanders with the most modern aspects of the Estimates committee hearing. It and up-to-date health facilities throughout the is a shame that today we have seen an State." extension of the disgraceful performances of We are committed to preventive the Opposition spokesperson for Health over programs. For example, we have committed recent months. On a number of occasions, this $3m to the Strengthening Families Program. 4516 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999

The program offers free parenting on the system, which is already under strain courses—the Positive Parenting Program, or through increasing demand. This further PPP—at 30 locations throughout Queensland. impost will only make matters worse. The training programs have been offered by I am concerned that the bureaucrats who community health nurses who have been will have to meet this budgetary requirement trained to lead group classes and to provide each year will look for ways of minimising their one-on-one advice to parents experiencing liability to that tax. For example, some regional behavioural problems with children. We are and outer metropolitan hospitals have large also in the process of expanding the service areas of land surrounding them. For example, into rural and remote areas, with 60 child a substantial amount of curtilage surrounds health nurses to be trained from early next the newly built Redland Hospital, adjacent to year. The expansion includes providing my electorate, that will probably not be resources such as the self-help PPP program, required for many years until it needs to be which parents in remote areas can work utilised for additional buildings. The hospital is through at their own pace. The feedback from in a fast-growing area. When bureaucrats in this program has been phenomenal. The the Department of Health look at the Bayside people who have gone through that program Health District, they may think it appropriate, have said to members of Parliament and to because of the increases in the value of the the Minister that it has been one of the most large amount of land on the Redland Hospital remarkable things in which they have site, to address the budgetary requirements by participated. Yesterday the member for selling part or all of the land that is not Mundingburra highlighted the feedback from a currently in use. That would have a disastrous program in her area and the positive results effect on the amenity of the hospital. The area that have come from it. is a notable example of low-density The Opposition Health spokesperson is development. Patients are encouraged to take on the record attacking the Government for advantage of the hospital grounds as the funding such programs. On 16 March in an favourable environment created through the interview on the ABC's Carolyn Tucker program hospital's design is conducive to recovery. I on 4QR this Government was attacked for would not like to see that hospital being spending money on "soft social welfare areas pressured, because of this new budgetary within the Health portfolio". It seems that the requirement, into disposing of some of the member for Maroochydore was referring to the land on its site. The city hospital sites are not Strengthening Families Program and our under threat as they are already at their school nurse program. She claims to be pro capacity and the current redevelopments will families, yet she has been extremely anti- mean that no vacant land will remain on the families and destructive of family support in her sites. criticisms of this funding proposal. She is more As a comparison, I cite the Logan and interested in seeing victims than in trying to Redland Hospitals. The site of the Logan prevent people from becoming victims or Hospital, which is also undergoing expansion, patients. Fortunately, her views are not shared is fairly constrained and any future expansion by her colleagues or by the general will have to be upwards. However, in respect of community. the Redland Hospital and other hospitals in In conclusion, I congratulate the Minister similar circumstances throughout the and her staff on the work they do. I pay special State—and I think the Townsville Hospital was tribute to the nursing, administrative and on a new greenfield site—there might be support staff at the Prince Charles Hospital pressure to reduce the size of the land- and at other health facilities within the holdings of those hospitals so as to meet the Chermside electorate. They do tremendous demands of the equity return. I am very work. They give of their best at the research concerned about that. It is wrong to impose a and clinical facilities. tax of this type on particular portfolios. The Health portfolio is probably one of the Time expired. portfolios that is under the most pressure in Mr HEGARTY (Redlands—NPA) terms of future expectations. I ask the Minister (12.21 p.m.): I note from the Hansard record of not to consider any disposal of assets in trying Estimates Committee E that some concerns to meet her budgetary requirements in the were expressed in relation to the Health coming year. That would be a retrograde step, portfolio. I refer specifically to the 6% equity because the hospitals in fast-developing areas return on assets, which will impact on the of Queensland—the south-east and the annual budget to the tune of almost $200m northern regional cities—may need to utilise per annum. That will put enormous pressure their additional land-holdings at some point in 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4517 the future. If those holdings were sold off now, needs of patients and their families, we have in the future they could expand only at backed our commitments with hard cash. This considerable cost by acquiring other sites at an budget again boosts funding for mental health appreciated price. That would reduce the and allows many programs introduced last funds available to the Health Department in year to be expanded. the years to come. This Government has made job creation a Time expired. priority, and Health is no exception. This year Hon. W. M EDMOND (Mount Coot-tha) our Statewide Health building program will (Minister for Health) (12.26 p.m.): Firstly, I create more than 8,300 full-time equivalent recognise all of the hard work that goes into positions in the building and construction preparing for the Estimates by Queensland industry. In 1998-99 our initiatives created 733 Health staff and the many staff in ministerial new jobs in Queensland Health and there are offices around the State. Getting all of the hundreds more in the pipeline this year. The information together is a big task and I new Noosa Hospital will create 200 health appreciate everything my officers have done to positions. The new Robina Hospital will create support me in this regard. about 350 new health positions. Up to 50 additional skills-based nurses will be recruited I thank also the chairman of the over the next two years, an additional 18 child committee and all of the members of health nurses will be employed and 11 extra Estimates Committee E. For the information of emergency registered nurses will be appointed the previous speaker, I indicate that, yes, I will to emergency departments. They are just a be selling off wasted assets around the State few of the examples. We will also appoint to do what I am doing, for example, at about 80 extra clinical staff in both mental Redcliffe at the moment, namely, providing an health in-patient and community sectors. expanded new facility by selling off bits and pieces so that the people of Redcliffe have a Extra scientists and technical officers will community health facility that is worth having. be employed at the John Tonge Centre for If the honourable member has a problem with forensic services and we will be employing that, he should go to Redcliffe and tell them more staff specialising in indigenous health. that. Yes, I will be selling off the existing We are skilling Queensland and committing Townsville Hospital site, after the new hospital $20m over four years to support the has been completed. To suggest anything establishment of the comprehensive cancer else is arrant nonsense. Should we sit on research centre at the Queensland Institute of paddocks or little houses that nobody has Medical Research. We are providing a further rented for donkey's years just so that the $8m to help establish a medical school at honourable member for Redlands can feel James Cook University, and the money is comfortable? That is nonsense. there; it is up front; it is being spent. The Beattie Government has made An extra $4m will be shared by the Health a top priority. This year we are Australian Red Cross blood service and delivering another record recurrent budget of haemophilia centres. There is also $1m $3.45 billion to meet the health needs of available to expand services at child health Queenslanders. In addition, another $563m is centres. I am delighted that $3m is available to earmarked for capital works projects. This is a expand our strengthening families parenting big capital works project budget. Almost all of initiative, which has been such a support to the substantial increase in Health funding this stressed out families around the State. We year has come from the State Government, have boosted funding to community palliative with the Commonwealth Government care services, as has already been mentioned. contributing just $20.7m extra. By contrast, the Mr Mickel: What about the school Beattie Government is injecting both money nurses? and confidence into our free public hospital Mrs EDMOND: We are expanding the system, which was treated so poorly by the school nurse program. We have provided a previous Government. $2m a year boost in funding to non- As we run through the initiatives funded in Government mental health organisations this Budget, we touch on many of the hopes because we recognise the important role they and aspirations of ordinary Queenslanders. play. We have also reduced waiting times for We know that at some stage one in five elective surgery. We have increased funding— Queenslanders will suffer mental health $12m more—into Home and Community Care problems. Mental health is an issue of services in this State. We have tackled waiting fundamental importance to our community. times in public emergency departments. We While members opposite paid lip-service to the have the capital works program back on 4518 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 track—actually building hospitals and authorities. While they all conformed roughly to equipping world-class hospitals for Queensland the accrual accounting processes, there were families. a number of anomalies which I brought up in I can understand why the Opposition the Estimates hearing itself. While each of members do not like this, because it really them was only small, when all those small shows them up. The Government has also anomalies are added together it simply is not fully funded the equity return that they are possible to have faith in the accuracy of the whingeing and whining about rather than documents. There is a need—certainly in the implementing a capital charge that was going case of Education—to go back and have a to rip money out of the recurrent budgets of look at uniformity or standardisation. hospitals. This is a good budget. These are One of the questions I asked was whether positive initiatives, not the negative harping we or not the executive officers of two statutory have heard. authorities had the authority to sign off on the Time expired. documentation contained in the MPS statements. The response from the executive Report adopted. officer of the Board of Senior Secondary School Studies was, "I believe so." Because Estimates Committee F two of the statements had been countersigned by the executive officers and the other Report statutory authority account had been signed The CHAIRMAN: Order! The question is— by the chairman of the board, I think there is a "That the report of Estimates need to go back and have a look at the Act Committee F be adopted." and clarify any legal irregularities, if they have occurred. My reading of the Act says that the Mr QUINN (Merrimac—LP) (Deputy board is empowered to construct the budget Leader of the Liberal Party) (12.32 p.m.): In and the board reports to the Minister and, rising to speak to the Estimates Committee F unless the CEO has the authorisation of the report, at the outset I place on record my board through a resolution of the board, then it appreciation for all those departmental officers may be open to debate whether or not it is who came to the hearing on the day and within the power of the CEO to sign that provided material in both written and verbal particular documentation. form. It is no easy task for officers of the department to get themselves ready for an In terms of standardisation, that is an Estimates hearing. There is an enormous issue that the boards and the Ministers could amount of number crunching to do and look at. I think there may be similar perusal of information both on the day and occurrences in other Government departments prior to those hearings. I think it would be where there is a mixture of executive directors remiss of any of us if we did not voice our and board chairmen signing the relevant appreciation of the amount of work done by documents. As I said before, it would make it the officers within the various departments not easier across all portfolios to have this only within the 9 to 5 time frame but also in common approach. That is an area that we terms of their own time after the 5 o'clock bell need to be looking at. goes. Mr Wells: I will take it on board. At the outset I also say that the change in Mr QUINN: I raised it on the day, but I did format this year from cash accounting to not want to pursue it on the day because I accrual accounting certainly presented some wanted to get on with the job of examining the difficulties for most members—from both sides. financial details. I think it is one of those areas Direct comparisons from previous years simply where, unless we look at the legal aspects, we were not possible. I think it will take a number may find that someone will challenge it further of years before the process settles down and down the track and we will not have a proper all of us are completely au fait with the new answer. As I said before, the answer that the procedures and understand them completely. officer gave was, "I believe so." That sort of For my part, I do not profess to have complete said to me that he was not sure. If he had the knowledge of the process at the moment, but authority he would have said, "Yes." The hopefully that will come in the future. alternative, of course, would have been, "No", In my view, there is a need for some and then we could have been in some standardisation or uniformity in the way the difficulty during the day. documents are presented. I know that within The other issue I wish to raise, apart from Education there were the departmental the consistency and the construction of the accounts and then we had three statutory documents themselves, relates to the priority 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4519 that the Government has placed on education. other ones put forward from the Tory I raised this issue the other day when I spoke electorates. I do not do it. They are absolutely about Estimates Committee A in that the fair. The unfair criticism by the member for Premier's Department received an increase in Moggill and the member for Clayfield is totally its budget of $58m and the Education refuted. Both programs are community based. Department's increase was not much more Obviously, approvals depend on the quality than that. When there is a substantial increase and quantity of applications submitted by in the Premier's Department budget of 41% grassroots community organisations. We know and Education's budget has an increase of that some areas have more well-developed somewhere between 2% and 3%, that shows community support systems than others. I a lack of priority. reject the insidious and unfair criticism. Hon. P. J. BRADDY (Kedron—ALP) In relation to WorkCover, I also am (Minister for Employment, Training and astonished at the continuing attack on Mr Industrial Relations) (12.37 p.m.): At the outset Gerard Murphy by the member for Clayfield. I wish to defend and affirm the efficacy, validity Mr Murphy is a former President of the and value of the Community Jobs Plan and Queensland Law Society and the Law Council the Community Employment Assistance of Australia. He is widely recognised by people Program, which was under some attack by the on both sides of this House—other than the member for Clayfield in the report and also member for Clayfield—as a person of great from the Leader of the Liberal Party outside integrity. He is an extremely experienced this place. Let us be clear about this. These lawyer. I do not think it is at all a disadvantage programs have assisted thousands of long- that as a solicitor he acts for plaintiffs. I think term unemployed people and provided there is a place on the board for people who invaluable infrastructure, particularly in regional are experienced in acting for plaintiffs as a communities. lawyer. The other matter that refutes the attack is In terms of the member for Clayfield's that the approval process was designed attempt to deny his role in introducing a specifically to be fair. In fact, although it was system that has resulted in some WorkCover my policy that the Government has adopted, it premium increases, history will tell the true excludes me from determining which projects story. The difficulties being experienced by are approved. I did not seek any capacity to some employers as a result of the transition to approve these projects. Approvals are decided full experience-based rating can be laid in each area by an independent committee squarely at the feet of the former Minister and that includes local community representatives. the former Government. I should stress that We see in the CJP projects that more than WorkCover is adamant that 89% of employers 56% of the projects have gone to non-Labor received a lower premium rate this year. electorates. I had no part in that; the In relation to the member for Clayfield's community representatives and the attack on Madonna Jarrett, again that is totally committees decided that. So to suggest that unfair. The selection panel recommended there is any unfairness is absolute politics MJM Issues Management because of Ms played at its lowest and at its worst by an Jarrett's demonstrated knowledge of the Opposition that did not even have an employment Minister when it was in workers compensation system gained through Government. her extensive involvement in previous reviews by this Government and also by her The CJP is by far the bigger of the two experience working in New South Wales. programs discussed, with $21m allocated, and 56% of those schemes went to non-Labor In relation to the main committee report, I electorates. The CEAP schemes are not believe the committee has it wrong when it dreamt up by me or by my office or by my says that there is some uncertainty about department; they are community projects which departments or organisations should do which are suggested. Sure, seventy-odd per it. There is no uncertainty at all. The cent of them went to Labor electorates, but I organisational units of each department can did not pick them; I did not promote the be examined. The definition says that GOCs projects. Most interestingly—and this are included in that. If this committee wishes to absolutely and totally refutes the insidious and change that, that is fair enough; but there is unfair nature of the criticism—not one no uncertainty, so there should not be any application under the CEAP program from a criticism on the basis of uncertainty. The coalition electorate was rejected by the suggestion to change is a matter for the committees. If 70% of them went to Labor committee. electorates, it was because there were no Time expired. 4520 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999

Mr HEGARTY (Redlands—NPA) how the schools were expected to expend (12.42 p.m.): As a member of Estimates their budgets to make the information Committee F, I will first take up the point just technology initiatives work within the context of made by the Honourable Minister for the move to a Smart State. Employment, Training and Industrial Relations Mr Reeves: We like having unions in relation to the pork-barrelling of those Labor involved in the Smart State. electorates that benefited from the Community Employment Assistance Program. Mr HEGARTY: The member is not even in his correct seat. He sometimes acts as Deputy Mr Reeves: Didn't you hear what he just Speaker and he does not even know the rules said? of Parliament. He is sitting there interjecting. Mr HEGARTY: I am pointing out to That is pathetic. honourable members that the spending in The Beattie stealth tax will impact on most those electorates far exceeded that in coalition portfolios. Obviously we will see a selling off of electorates: $3.3m for the ALP electorates and assets in Education and TAFE. Of course, that $0.5m for the coalition electorates. When one will have a detrimental effect in outlying areas, considers the area of the State that the Labor where job creating initiatives and educational Party represents as a percentage of the total facilities are far more important than the few land area and compares that with the total dollars that will be returned to the Treasury by land area that the coalition represents, one this retrograde initiative. I sincerely hope that it realises that the Community Employment will not impact on the unemployment rate, Assistance Program represents a particularly in relation to TAFE, because we are disproportionate distribution of equity. The supposed to be gearing up to provide more hypocrisy speaks for itself. I will not pursue the training places. That will obviously have a matter any further. diminishing effect on expectations in those The jobs program in Queensland today is areas where facilities may be sold off. not performing to the expectations generated Time expired. by the rhetoric that the Beattie Government is Mr ROBERTS (Nudgee—ALP) always touting. I believe that the employment (12.47 p.m.): I place on record my thanks to all level will be locked at 8% because of the types committee members for their input into the of measures this Government has introduced. Estimates process and also to committee staff The target that the Premier always talks about for their professional advice and assistance might be fine for the media but the reality is throughout the inquiry process. I particularly that, as a result of budgetary changes, mention research director Meg Hoban, portfolios such as Health, Education and research officer Sarah Lim and executive Transport and Main Roads, which were job- assistant Sandy Musch. Also, I thank both generating portfolios, will be diminished by the Ministers for their contributions and the lack of funding available, particularly for extraordinary amount of work that is obviously infrastructure under the Transport and Main Roads portfolio. carried out by departmental officers during the inquiry process. As to the Education portfolio—I spoke to I will mention briefly some of the key the Minister about the shortage of capital initiatives in both portfolios. Firstly, in relation to funding available. I highlighted a high school employment initiatives, one of the impressive at Victoria Point in my electorate that was achievements is in the apprenticeships and desperately in need of a student facility. The traineeships sector. Of course, that reverses expectation of that building being on line for the sad decline that occurred under the the new school year in the year 2000 has coalition Government. The target number of slipped back owing to budgetary shortfalls. The subsidies to employ apprentices in the private Minister acknowledged that he would review sector in the 1998-99 year was 2,500, but the that situation in light of the information that I result was an impressive 4,117. Similar results provided to him during the Estimates. I am were also achieved in the provision of hopeful that he will make good his subsidies to employ trainees in the private commitment in that regard. sector. The target this year was 2,000; the I turn now to the Microsoft deal in the result was 2,449. Apprenticeship targets in the Education portfolio. That revealed how badly public sector and the Housing Industry Trade the teaching fraternity in Queensland were Training program are also on track to achieve sold out, even to the extent that the Teachers better than targeted results next year. The Union had to campaign to ensure that the number of employment opportunities created Minister came good with his deal and included through assistance to the long-term them in the consultation process in relation to unemployed is also encouraging: 1,450 was 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4521 the target, but 3,774 people were assisted by discussions at least on this matter in the very Government programs. By any measure these near future. I believe that the Banyo site, with are impressive results and the Minister and his the siting of a primary school, a secondary department should be congratulated on their school and a university all within walking efforts. distance of each other—in fact, just across the With respect to education, I want to focus road from each other—presents us with a on one issue relating to the budget allocation unique opportunity to explore the possibilities. of $1.3m out of a $6m contribution the In the Estimates Committee F report Government will make towards the relocation some procedural matters were raised in of the Australian Catholic University to Banyo. relation to questions on notice and also the In my view, this provides enormous definition of Government owned corporations. I opportunities for north Brisbane as well as thank the Ministers for their cooperation in opportunities to implement some innovative relation to the issues and questions that were educational systems within public education. put before them in the Estimates process. The The concept I am trying to promote at this site Ministers quite rightly exercised their discretion is one of a seamless transition between in terms of refusing to answer some questions. primary school, secondary school and However, the committee believed that, in the university education. I think those within the end, there probably should be only two system would agree that there are sometimes restrictions on questions on notice put before artificial barriers between those levels. Ministers: first, that they relate to one subject or one issue only and, second, that the One of the key strategic issues for Minister retain the right to not answer a Education Queensland is to actively promote question the answering of which would be public education and to reverse the decline in unduly onerous. the Year 12 apparent retention rate and in the enrolment share of State schools. In my view, Mr STEPHAN (Gympie—NPA) one way of addressing this is to introduce (12.52 p.m.): It gives me a great deal of innovative processes and initiatives which will pleasure to join in the debate on the report of enhance the learning outcomes available in Estimate Committee F as it relates to our State school system. employment and training. This issue is certainly very important for me and my area The siting of the university at Banyo and, indeed, right throughout the State. presents a unique opportunity to implement some of these innovative systems that will I am concerned about the possibility of benefit both students and staff alike. The not being able to get enough workers out in proposal I am talking about involves the the fields in rural areas. There seems to be an development of formal links between the attitude that "if you can't put a motor on it, we Nudgee State School, the Banyo high school don't want to know about it". A lot of things just and the Banyo university. As I have stated, it do not work that way. I know that it is difficult to involves the concept of a seamless transition match people with jobs in this area, but for those students who need it between certainly the problem is impacting on our primary, secondary and university education. capacity to produce. I give the example of milking cows. Some producers are now having As an example, a gifted and talented to milk over 1,000 cows a day. It is difficult to Year 7 student could tap into appropriate find someone to take responsibility for such a subjects at the Banyo high school. Gifted and large task. talented Year 12 students could be enrolled in appropriate university subjects as a part of I refer to programs put in place in 1997 their studies. Similarly, high school students which did achieve a great deal for that needed remedial teaching or schooling Queensland. The 1997 Year of Training could access teachers from the primary school achievements include an enhanced User to enhance their chances of progressing Choice program, a quality framework for VET through the education system. Such cross- policy, a significant increase in the number of fertilisation of students would not only enhance traineeships and a growing awareness by the their educational prospects but also provide Queensland public of the value of training. unique professional development opportunities Other initiatives of that year included the for teachers, who could also move between establishment of a small business training the schooling levels according to need. advisory committee to advise Government on improving participation in training in the small Mr Wells: These are good ideas. business sector. That initiative was very well Mr ROBERTS: I thank the Minister. I do received. The Rural Industry Training Task intend to put forward a formal proposal for Force was developed to develop strategies to 4522 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 address rural training needs. Eight rural round school is a real school. A real teacher in a real tables were also established. classroom in real time responds to real There was significant growth in overall students, but the students may be dispersed traineeship numbers right throughout the throughout the entire State. The consequence State. There were 26,339 new approvals for of this is that the tyranny of distance, which traineeships in 1997-98. Included in this figure has for so long been an impediment, is approvals for part-time trainees and 180 new particularly to our smaller rural and isolated school-based traineeships. It is about looking schools, is going to be, over a period of after the young ones as well. several years, obviated. Instead of the situation where children who have a particular Specific funding initiatives were provided interest in a particular subject are unable to to deliver around 30,000 additional pursue that interest further by virtue of the fact Government-funded places over two years. that there are not enough students in that There was better access to training through particular school to constitute an entire the expansion of the User Choice and classroom, they will be able to lock into the Competitive Funding programs, for which Internet and take part in the virtual school. This $125m was committed. This figure includes will be of benefit to students in the city, as well. new initiatives of $6.5m for an employer assistance program. That was also very well There are multiple instances of students received. who have a particular interest in a particular subject and who are unable to pursue that There was reform in the apprentice and interest by virtue of the fact that there are not trainee system through increased enough students in that school to constitute a employment-based delivery of training, part- class. This will enable students to play to their time apprenticeship arrangements, User strengths, and that is what education is all Choice and new apprenticeships in schools. about. The most successful academic Time expired. outcomes are always achieved by students Hon. D. M. WELLS (Murrumba—ALP) who play to those strengths—to the subjects (Minister for Education) (12.58 p.m.): I thank that they are best at or in which they have a honourable members for their participation in proven record of interest. the debate. The Education budget is one Sitting suspended from 1.02 p.m. to which will generate a sea change in education 2.30 p.m. in this State. The first six months of our term of Mr WELLS: I was referring to some of the office were involved with dealing with the new initiatives of the Education budget. I leftovers of the previous Government. The mentioned the virtual schools pilot. I should Leading Schools program had to be also mention the Strategic Initiatives Fund, abolished. The question of school-based which is encouraging the spread of particular management had to be put behind us. Now excellent initiatives in the education sector. we are in a position to move on. In the brief time remaining, I wish to refer The background against which we will be to some of the issues that were raised by moving into an era when educational issues rather than management issues will be the key honourable members on the other side of the questions that exercise us is the 2010 House in the reservations document. One of Consultation, which will yield a 2010 those involved a series of subtractions which strategy—a strategy that will enable the people suggested that the increases in the budget of Queensland to look forward for a whole would do little more than cover the escalation due to increased enrolments. decade to the kinds of outcomes that we hope for for our children at the end of the first The situation is that the massive recurrent decade of the 21st century. What kind of skills, expenditure increases which were a feature of what kind of understandings and what kind of last year's budget are all preserved in this socialisation to the world do we want our budget, so they will continue. The $35m children to have as they face the work force Education For All initiatives, based over four and the society of the second decade of the years, the increase of $5m in behaviour 21st century? management funding, and the increases in a whole range of areas are a feature of this These are key questions relating to Government. Also remaining is the $17m education. Many initiatives in this Budget increase in the area of literacy and numeracy. relate to the perspectives which we derive from The other proposition put by the reservations the 2010 consultation. One of these is the document included the structural changes— virtual school, of which I have spoken to honourable members very recently. The virtual Time expired. 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4523

Hon. K. R. LINGARD (Beaudesert—NPA) Budget because I have already announced (2.32 p.m.): If it is that we are to look at accrual those schools." accounting, and if it is that we are to look at Definitely, I have a personal interest, the strategic planning that is involved and the because the Education Department has budgeting and the performance management identified the need for a high school in the that is to be needed, and if we are to look at northern part of the Beaudesert Shire for the community needs and Government outcomes year 2001. But I would certainly have thought in both priorities and services in certain sub- that, in this year's Budget, allowing for the fact outputs, then certainly we would be looking at that the next Budget comes down in the fact that the Education Department has to September of next year—and if it is that a consider that capital is a means to an end, not school is to be prepared for the year 2001— a means in itself. We have to look at the surely, by the next Budget, planning would capital projects that are to be identified. We have all been done, tenders would have been have to look at the expansion that is to be put out and, by September next year, those included there, and we have to look at the schools would be under construction. implications, that is, the acquisition cost and So I would have asked the Minister, "Is it depreciation cost. true, as the coalition is saying, and is it true, as I am disappointed that the Minister for the coalition documents say, that $40m has Education spoke before me in this debate, been dropped from capital works for the year because I would have liked him to answer why 2001? And why is it that you have just it is that, in the budget that has been allocated $44m for Building Better Schools presented in capital works, there is no and put $26m down for primary schools and provision for schools in the year 2001. There is $18m down for secondary schools but have no doubt that schools for the year 2000 are not identified anything about the procedures identified. Page 18 of Budget Paper No. 5 that are to be carried out?" Surely, in mentions Bentley Park as a new school to Managing for Outcomes in accrual budgeting, open in 2000. The sum of $44.6m has been that would have been necessary. So I would mentioned in relation to the Building Better have asked the Minister, "Is it true, as the Schools program. There is no doubt that the coalition is saying, that $40m has been budget identifies $26m for Building Better dropped from the year 2001?" Schools in the primary school area and $18m In relation to a new high school for the in the secondary school area. But nowhere is it northern part of the Beaudesert Shire, in all identified which schools are to be built in the fairness everyone has identified the need for a year 2001 and how much money is allocated high school. Everyone has recognised that the to that. All other budgets that I have seen in Beaudesert High School cannot expand any previous years always identified the schools for further, and that a high school has to be built the next year—which are obviously under a in the northern part of the shire. But there is building program now—and then the schools still misunderstanding about where that high that are to be proceeded with for the year after school is to be built. Is it to be built at that, that is, the year 2001. One would think Jimboomba, or is it to be built at Flagstone that, certainly, capital has to be put aside now Creek? The community wants Jimboomba. in this year's budget for those schools that are The Beaudesert Shire wants Jimboomba. But to be built in the year 2001. it seems as though the Education Department is still going ahead with its idea to build it at Surely, in some cases, there will be Flagstone Creek—an area where there is not a acquisition of land. Surely, in most cases, shop, no infrastructure at all, no police stations there will be pre-planning that must be done. and no ambulances. They are all back at The tender documents have to be prepared. Jimboomba at this stage. But in this budget there is absolutely no statement about that. When we look at the Time expired. accrual budgeting procedures, there is no Mr WILSON (Ferny Grove—ALP) doubt that there has to be provision for capital (2.37 p.m.): It is my great pleasure to speak in works under Managing for Outcomes, which support of the majority report of Estimates the budget mentioned. So it worries me that Committee F, dealing with Employment, the schools for the year 2001 may have been Training and Industrial Relations and put on hold. After the Budget was presented, I Education. These are two key portfolio areas said to the Minister outside this Chamber, within the second Beattie Budget. That Budget "What about the schools for the year 2001?" is one of the most sober and responsible The Minister, in all fairness, has said, "There is Budgets that has been seen by this State. It no need to announce them in this year's identifies some key areas of service and 4524 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 activity that are traditional to a Labor Party Apprenticeships have been repositioned Government here in Queensland. Those key within Government policy and programs to areas are jobs, education, community safety, become a key part of getting young people health, regional development and others. The into jobs. It is all very well for us to talk about list goes on. They are key foundation stones jobs, jobs, jobs as we must, must, must; what for any Labor Government Budget here in we must also do is build up the status, the Queensland. importance and the value that we give to apprenticeships. We must not be In relation to the first half of the report, overwhelmed by the preoccupation of recent dealing with Employment, Training and years of everyone wanting to go to university. Industrial Relations, I commend this Minister, Our job is to ensure that education is available Mr Braddy, for the high priority that he has for all Queenslanders, but it is important to given—supported by the Premier—to the restore the balance between trade training and defence of the TAFE system here in higher education. I am sure we will continue Queensland, which had started to become run along the path of providing that balance. down by the ideological preoccupation of the coalition to outsourcing everything that it There is one other aspect of the possibly could and running it down and turning employment area to which I wish to refer. I it over to the private sector. I am pleased that strongly support the school-based we have set in place a package to restore the apprenticeship approach that this Government place of the TAFE system within the vocational has adopted. I have seen the fruitful results of education sector here in Queensland. There is that scheme in my area. a commendable increase of about $13.1m for Time expired. all the TAFE institutes to provide extra places Mr HORAN (Toowoomba South—NPA) for 7,800 students. (2.43 p.m.): In addressing the report of This is particularly important in my Estimates Committee F, I want to concentrate electorate, which is served by the Brisbane on that part of the Budget which deals with Institute of TAFE with two campuses—one at school-based traineeships and school-based Oxford Park and another at Grovely, both of apprenticeships. It is sad to report that there which are in the electorate of Everton but has been a breakdown in the system. This has which draw their student population from the affected some hundreds of school students north-west suburbs, including the electorate of throughout Queensland. The scheme is Ferny Grove. The second important TAFE organised by DETIR. institution out my way will be the Northpoint The students who are graduating this year TAFE, which will have an annexe constructed at the end of Year 12 would be under a two- at the Ferny Grove Tramway Museum. year agreement. Either they would graduate Electrical and mechanical trade subjects will be with a trainee certificate, or, if they were doing taught at this annexe. This institution will be an apprenticeship, they would graduate with a involved with the Brisbane light rail project. set amount of the apprenticeship completed. These are two good examples of the However, DETIR has written to the schools and importance of rebuilding the institution of TAFE the students and indicated that the school- in the community. based training agreement will terminate on 19 The second item in the employment November. Literally hundreds of students will portfolio which I want to endorse is the be affected by this decision. These students supported funding which has been provided will not have the certificate which they and their for the Industry Training Advisory Bodies—the parents expected them to receive at the end ITABs. I speak of this with a great sense of of Year 12. It was anticipated that the students affection and some knowledge because of the would graduate with academic qualifications as eight years that I spent on the executive of well as with traineeship qualifications. I believe Construction Training Queensland. This some 40% of the students will not receive the organisation performs a marvellous job in a certificate. tripartite, non-partisan way in bringing all the Honourable members might ask how this industry players together—the unions, the has come about. It has come about because Government and the employers—to develop some of the students did not commence the proactive and innovative training programs. A course right at the beginning of the two-year second organisation which does the same period. Many warnings have been given that thing extremely well is BIGA Training—the this could happen. DETIR has had ample Building Industry Group Apprenticeship opportunity to make arrangements to allow the Training scheme—which has now established students to complete the necessary modules offices on the north side at Brendale. to enable them to get their traineeships. 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4525

Many TAFE colleges have programmed a and Industrial Relations and the Department of number of classes for early December. This Education that our Government's unrelenting situation is not really the fault of TAFE; the commitment to jobs and skilling our community problem lies completely with DETIR. It is very is being driven. We are witnessing growth in unfair that these students are going to be apprenticeships, traineeships and jobs short-changed. The children should have been generally—State Government facilitated allowed to receive their certificates on growth that has been unprecedented in the graduation. past decade. DETIR has written and said that 19 In 1999-2000 $42m has been provided to November is the cut-off date. The agreement create 2,400 public sector traineeships and to will be terminated at that time. These kids continue funding for 508 apprenticeships should be given a chance. As I said earlier, created in 1999. The $2,000 cash bonus some 40% of the students who signed off on incentive for private sector employers to take this program will be affected. The students on additional apprentices or trainees in areas affected by the termination of the program do of skills shortage has also created new job not come only from Toowoomba and the opportunities for young people. This is the south-west areas of Queensland; they come bread and butter stuff of the Labor Party. from various regions right across the State. There is no doubt that the futures of our young There is a possible alternative and it is people cannot be left to unfettered market vital that DETIR gives it some consideration. It forces. should be possible to extend the period before The State Government has an economic termination to 31 December to enable the and a moral imperative to facilitate the take-up students to complete their traineeships. It is of apprenticeship and other job opportunities the traineeship area that is being particularly in Queensland. The Howard Government is affected. The hosts who are offering the letting the team down badly with its savage traineeships signed up for a certain amount of cuts to labour market programs and its highly time. There were no upper or lower limits. If competitive job services market. Although our these kids are forced to sign a part-time or full- Opposition colleagues did not see fit to have a time agreement, the different arrangements designated employment portfolio when they involved will not suit many of the employers. had a stint playing with the levers of As a result, a number of hosts are saying no. Government, our Government is firmly The school-based traineeship scheme committed to our designated Employment was more attractive to hosts at a time before portfolio and innovative public policies and the children left school. There is a good programs, such as Breaking the philosophy behind endeavouring to get Unemployment Cycle. students to undertake such a program. What Two and a half years ago, the Howard has happened is a real tragedy. DETIR should Government took $8 billion out of labour be taken to task. The money allocated in the market programs. As a State Government, we Budget has not been wisely spent. There has have great difficulty filling the gaps left by that not been sufficient monitoring throughout the great hole. The proof of the pudding is in the past 18 months to two years to ensure that the eating, and this Government's Breaking the students were achieving their targets and were Unemployment Cycle program has been an being provided with the training modules. It outstanding success. In my own electorate, was necessary that arrangements were in high-need areas such as Acacia Ridge and the place at the end of the two-year period to Inala/Forest Lake corridor have benefited from ensure that the students graduated with their State Government supported projects that give traineeship certificates. skills, confidence and job placement to long- If we are sincere and fair dinkum about term unemployed people, including a group providing jobs and traineeships, this matter about which I am particularly concerned, and should be addressed. It should not be left in that is the mature-aged workers in my area— such a mess at the end of the traineeship people in their 40s and 50s—who have been period. I call on the Minister to ensure that retrenched. these children are looked after. In terms of expenditure in the Education Time expired. portfolio, we are also seeing proof of this Ms STRUTHERS (Archerfield—ALP) Government's commitment to improving the (2.47 p.m.): I feel a great deal of pride in literacy and numeracy skills of young children supporting the expenditure outlined in the and the information technology skills of report of Estimates Committee F. It is in these students through the Schooling 2001 initiative. two portfolio areas of Employment, Training The commitment to a ratio of one to seven 4526 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 computers per student and then soon after On 31 March 1998, the national one computer per five students has been well apprenticeship and traineeship figures were received by schools in my electorate. This released and showed that 183,000 people year, capital allocations have increased and, were in training, with Queensland accounting again, this is good news for the Archerfield for more than 44,000 of the total. When one electorate with new State high schools under considers that Queensland's population was at way for the rapidly growing communities of that time around 18% of the national total, the Calamvale and Forest Lake. apprentice and trainee numbers at 23.9% was I am also pleased that 1,600 students in an excellent endorsement of coalition policies Queensland are pursuing a school-based at work. apprenticeship or traineeship. Schools such as In terms of the building industry, the the Nyanda High School in my area have been Minister has often claimed that the growth in seeking school-based vocational education apprenticeships and traineeships is the result and Job Pathways opportunities. Nyanda is of his Government's policies. That is simply not well positioned, given that the school backs on true. The statistics for the period June 1998 to to the Building Industry Group Training November 1998 indicate quite clearly that the Association—BIGA—and the Construction most dramatic growth in new approvals was Training Centre at Salisbury. It is also adjacent occurring well before any of the Labor to industrial areas. However, the withdrawal of Government's employment and training Commonwealth Government Job Pathways initiatives had any chance of influencing the funds to Nyanda has put a heavy burden back training prospects of apprentices and trainees. on the State Government to assist such In mid July 1998, new approvals for schools with these initiatives. We have simply apprentices were 12.6%, which was an been unable to fulfil the demand despite increase on the rate the previous year, while increases in this budget. building industry new apprenticeships approvals were up 32.5% and traineeships Queensland is a Smart State but we will were up by 68%. Clearly, the turnaround in be even smarter when the Budget initiatives in apprenticeship numbers in the building and these two portfolio areas bear even more fruit. construction industry was well and truly under Mr SANTORO (Clayfield—LP) (2.51 p.m.): way during the time of the coalition I reiterate the appreciation that I included in Government and certainly afterwards. my statement of reservations for the good Yesterday, the Minister again made that work performed by the officers of the statement in the Parliament. It is not surprising committee and the professional chairmanship that it received absolutely no coverage of the member for Nudgee. I think that it is fair whatsoever, because all the major sections of to say that the 1999-2000 budget for DETIR is the media know that what the Minister is the first genuine departmental budget of peddling is certainly not true. That is the Minister Braddy and the Beattie Labor reason why the Minister's statement yesterday Government. It is a budget through which we did not get any coverage whatsoever. can measure the performance of the Minister I wish to turn now to several other aspects and his Government against promises that he of the department's budget. I refer to the sale made prior to the last State election. of assets. In Opposition, the Labor Party and I will make a few comparisons. Firstly, the the unions campaigned heavily against the contribution from the honourable member for sale of assets, particularly TAFE Queensland Gympie certainly showed the efficacy of the assets. In Government, the Minister has coalition's employment and training policies. announced the sale of $34m worth of assets. The honourable member for Gympie Two of the sites to go are Coorparoo TAFE commenced to outline the employment record and the horticultural campus at Oxford Park. I of the previous coalition Government. In heard one honourable member speak about common with a couple of other members, the the TAFE facilities at Oxford Park. That is one honourable member who has just preceded that is to go. How well I remember the vicious me castigated the coalition Government for and dishonest campaigns mounted by unions not having a Minister for Employment. The and members opposite against the imaginary Ministers of the previous Government were all sale of those assets by the former coalition Ministers responsible for employment growth, Government. Under this Government, they are and the figures for employment growth of the going to go. previous coalition Government speak for In relation to Mr Gerry Murphy, I am not themselves. In terms of employment convinced by the Minister's arguments. There generation, we were the leading State, and is a clear conflict of interest in the appointment that record speaks for itself. of that individual to WorkCover. That is what I 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4527 have been told by stakeholders and that is education system have wallowed in old what I have been told by the industry. That systems, in old methods of running the image of a conflict of interest will just not go economy and have floundered. So whether away. In terms of the increase in premiums for one takes the altruistic or the practical WorkCover, I acknowledge and continue to approach, one realises that education is support the introduction of experience-based essential and must be given the highest rating and premium setting. That was one of priority. my very real, proud achievements in workers This Beattie Government's $3.9 billion compensation reforms. However, the Minister allocation to the education system in and his department have fiddled the "F" factor Queensland illustrates its commitment to of the equation. Its application has been making Queensland the Smart State. Of altered by the WorkCover board and the course, the basics must be addressed for all of current Government. That has led to the our young children coming into the massive increase in premiums, but I will say classrooms, and that is basic literacy and more about that later on. numeracy. Although some of the preschool In Opposition, the Labor Party and also programs and the home education methods the unions campaigned heavily for an end to have made some children much more ready to VERs. In Government, they sing a different fit into the formal structure of Year 1, a tune. In answer to a question on notice, the significant number of people still come through Minister informed me that, this financial year, the formal schooling process with difficulties in WorkCover expects via the VER process to literacy and numeracy. Programs such as the dispense with 208 staff at a cost of $5.8m. If Reading Recovery Program have resulted in members look at my statement of reservation, great benefits for a certain number of they would see that I also advise that in 1998- students. Although the cost in terms of teacher 99, 86 employees accepted VERs at a cost of allocation and in resources can be relatively $33, which should of course be $3.3m. So high, it is a cost that this community has to much for job security right across DETIR, not to bear because, without basic literacy and mention the possible redeployment of 200 numeracy, we are not giving our children the staff members at the Moreton Institute of chance to progress in the best possible way. TAFE! There are great challenges facing the Of course, the Minister and other people Minister. Some of them involve behaviour object to the fact that we mentioned Madonna management problems. Because of changes Jarrett, who is simply a Labor mate. There is in our society, we have well and truly gone no denying that. She might have been away from the old adage "children are to be competent in her work and she may have seen and not heard". In so many ways, our even given some good advice, but it is not society is saying, "We recognise children; we reflected in the legislation, which is a recognise that they are to have their say; we retrograde piece of legislation. All we are doing recognise that, in the past, some of the is what honourable members opposite used to practices that were imposed on children"—and do when they were in Opposition. At that time, I use that word "imposed" advisedly—"are they used to accuse the coalition Government simply not appropriate to today's society." That of appointing friends of the Liberal Party or the can lead to significant challenges in behaviour National Party. This Government has done management within the classroom. precisely the same. Another factor is the higher retention rates Time expired. for Year 12 students. Previously, young adults who were not coping well with school or who Mr SULLIVAN (Chermside—ALP) did not find school to their liking could leave (2.56 p.m.): I rise to support the Estimates and get a basic job or an apprenticeship. They committee report and to congratulate in could face the realities of the work force. particular the Education Minister on the work that he and his department have done in this Mr Welford interjected. area. Education is so important, because it Mr SULLIVAN: I notice that the member deals with the future of our children and the for Everton is agreeing with my comments future of our country. If one wanted to talk about the education system, and that is strictly in financial terms, then one only has to excellent. Higher retention rates have meant look at South-East Asia, Ireland and other that a number of students stay in upper countries where the Government's investment secondary classes, even though they really do in education led to a return of great economic not want to be there. Sometimes they show benefit for those countries. The countries that their resentment through their behaviour. This have not given the highest priority to their can cause very significant problems for the rest 4528 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 of the class and the teacher. I encourage the around the building at the time. The comment Minister to continue the grants that his from the media and elsewhere was that the department provides to behaviour hearings were unutterably boring. People were management programs. getting around with glazed eyes, wondering The Education for All program, which what on earth it was all about and commenting provides for students with disabilities or on the time that it was taking. I am not learning difficulties, is well received by blaming anyone for that. I think that the idea teachers. There can be problems with having of an Estimates process is right and the students with severe learning difficulties in accountability factor is proper and appropriate. normal classrooms if a lot of time has to be However, we have to come up with some given to one or two students, which means improvements to the system so that the that other students can miss out on receiving hearings are more interesting and more extra help. That is a growing challenge and we informative, regardless of which side of politics will have to face it, no matter which side of is in power. politics is in Government. I met a fellow who had been sitting in the I give my strong support to the Minister for gallery during the Estimates hearing. I ask the his initiatives to improve teacher housing. The Chamber not to hold me responsible for his Federal Government's fringe benefits tax has language, but his words epitomised what a lot hit hard. We have to pay about $8m under of the Estimates hearings were about. When I that FBT, which is a cost that we should not asked what he thought, he said, "Boring as have to bear for what we have to deal with. I bat shit." I said, "That might be so and I guess encourage the Minister to continue with his a lot of people would agree with you. In fact, good work. most would agree with you. If the bats are offended, they could always say that things Reported adopted. are as boring as the Queensland parliamentary Estimates hearings." Members Estimates Committee G from all sides of Parliament have said that, as have Hansard and the media. Therefore, Report somehow we must improve the system. We The TEMPORARY CHAIRMAN (Ms could look at what other Parliaments do. We Nelson-Carr): Order! The question is— do not have to reinvent the wheel. We have come this far. "That the report of Estimates Committee G be adopted." In some cases, the adversarial side of the process comes to the fore. It is okay if people Hon. T. R. COOPER (Crows Nest—NPA) want to indulge in that sort of thing. However, I (3.02 p.m.): Firstly, I place on record my have always taken the view that we need to appreciation of the work of David ask questions to elicit information so that we Thannhauser, the committee research officer, can do something constructive with the and the other committee staff involved in the information. That is the way that I have investigation of the Primary Industries portfolio. approached the process and the Minister has Others will speak on the portfolios that they are responded accordingly. I have to play my part interested in. in trying to improve the system and I am quite I acknowledge the work of Brad happy to study the processes that operate in Henderson of my office who did an enormous other States so that we can make our system amount of work in preparing for the Estimates better. hearing. I acknowledge the officers of the I am greatly concerned at the reduction of Department of Primary Industries who $26.6m in the DPI's 1999-2000 budget when attended the hearing. They quite obviously put compared to the actual figure from last year. in an enormous amount of background work That is of extreme concern. The equity return so that they could answer the questions that is, in fact, an assets tax that will be felt by all were put to them, which, of course, is their job. departments. The Primary Industries Minister I think that does a lot of good in that it ensures and other Ministers will find that to be the that all departmental staff are on top of their case. When we were in Government, we also work. However, I acknowledge that the found that Treasury would try various things Estimates process does take an enormous from time to time. That can put an enormous amount of time. strain and stress on a department when it is Various members of the media and other trying to manage a budget and continue to interested people listened to the Estimates support its programs. There is not a shadow of hearings, although one would not even know doubt that some programs within Primary that they were on unless one was wandering Industries will be hurt, and that will unfold as 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4529 time goes by. We will keep on eye on that. not replaced by other temporary, funded However, our main concern is that the people positions supported by new projects. in the industry will be hurt, and that too will In relation to the Queensland Boating and unfold. Fisheries Patrol, there is no reduction in the I will have more to say on these matters ability of the patrol to carry out its enforcement as time goes by. Five minutes is not a lot of functions. time to address all of the issues that were In relation to the Animal and Plant Health raised during the Estimates hearing. These Service, the Estimates committee was advised things will be ongoing. A Budget is not of the service's budget with reference to the forgotten in 24 hours. It is in place for a full 12 papaya fruit fly program. Kevin Dunn, the months and we will most certainly be taking a Executive Director of the DPI's Animal and keen interest in it over that period. I reiterate Plant Health Service, told the committee my thanks and appreciation to all of the about the wind down of the papaya fruit fly people who made our task of investigating the program due to its success. It was a national Estimates of the Department of Primary program, with funding from the Industries a little easier. Commonwealth and from each of the other Hon. H. PALASZCZUK (Inala—ALP) States. The success of the program has seen (Minister for Primary Industries) (3.08 p.m.): In a reduction in revenues from those sources. speaking to the report of Estimates Committee I wish now to refer to another item in G, I will outline the Government's commitment today's Queensland Country Life. Under the to advance Queensland's food and fibre to the heading "Balanced budget fosters Smart world. Under the 1999-2000 budget of the State", Rob Lawrence from Hughenden Department of Primary Industries, the Agency stated— for Food and Fibre Sciences is being created. "The way I see it, this Budget gives This delivers on our election commitment to the opportunity for future prosperity and create a world leading food and fibre science improved quality of life for all of us and is technology and innovation organisation. The showing the way forward with real Agency for Food and Fibre Sciences will confidence." strengthen Queensland's position as a world I believe Mr Lawrence's comments are leader and innovator in food and fibre particularly applicable to the budget of the production. It will enhance consumer and Department of Primary Industries and the market focus, deliver improved services to State as a whole. clients, and generate economic, social and environmental benefits to all Queenslanders. I now turn to the executive directors within the Department of Primary Industries, who I I will address a few matters raised by the believe have taken on the challenge that the Opposition regarding the budget of the Government has issued to them in relation to Department of Primary Industries. The 1999- putting together the Agency for Food and 2000 budget for the Department of Primary Fibre Sciences. The agency will be launched Industries is a cash appropriation of $376m officially some time in early December. I from all sources. There are no cutbacks in staff believe it will become the catalyst for improved and no cutbacks in services. I am advised that services from the Department of Primary this is some $6m more than the coalition Industries for the primary sector in Government handed down as its DPI budget Queensland. The appointment of Director- prior to last year's election. General Warren Hoey has been like a breath I wrote a letter regarding the issue of the of fresh air. He has been very well received by beef industry services, which appeared in not only the clients of the Department of today's edition of Queensland Country Life. Primary Industries but also its staff throughout Staff numbers at DPI's Queensland Beef Queensland. He has a unique quality in that Industry Institute increased from 203 to 216 he is able to mix readily with both our clients under the Beattie Government. This increase and staff. In conclusion, this Government is was due to the appointment of eight trainees about advancing the Department of Primary and several temporary, externally funded Industries through innovation, technology and positions. The institute advises that it would extension. have a staff number of 205 if all eight Mr DAVIDSON (Noosa—LP) (3.12 p.m.): I traineeships ceased without any of the rise to speak on the report of Estimates trainees securing substantive positions and if Committee G. Firstly, I acknowledge the efforts some temporary, externally funded positions of the Research Director, David Thannhauser, due to cease during the 1999-2000 year are and his staff. He adopted a very professional 4530 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 approach with respect to all members of I have alway said that I do not believe Estimates Committee G. Nothing was a that the current Estimates process represents problem and he met the deadlines to which he the best use of taxpayers' resources. Based was committed. I place my appreciation for on my experience as a Minister, I know that David on the public record. I acknowledge also weeks and weeks of work by departmental the efforts of the staff in the Opposition offices, officers at all levels has to be undertaken in Mike Thomas and Kevin Riley, who spent order to prepare for a two or three-hour many hours with me preparing our case for Estimates session. I question whether that is Estimates Committee G. I thought the the best use of resources. I acknowledge the Chairman, Grant Musgrove, conducted the need for the Opposition to have the hearing very professionally. The outcomes opportunity to question Ministers on their negotiated with the chairman were to my budgets. However, I do not believe that the satisfaction. process we have in place at the moment is I thought the approach of the staff of Fair cost effective and is the best use of resources. Trading was professional. They were well Perhaps at some time in the future honourable briefed and had most of the information that members from both sides of the Chamber can the Opposition and I, as shadow Minister, review the process and try to find a more efficient use of taxpayers' funds and resources required from the Minister and her department. so that staff are not tied up for weeks and, in Throughout the process we raised a number of issues, including one case involving business some cases, months at a time in preparing for registrations. On 22 September, a person a two-hour Estimates hearing. known to me applied to the department for The Minister referred to the opening of business registration forms. The forms arrived some new Fair Trading offices, which was a on 23 September. I have no complaints about Labor Party policy before the last election. that; it is very good service. On 24 September That commitment was also given at the the forms were returned to the Department of Estimates last year. That has not eventuated. I Fair Trading. During the hearing I informed the understand there are some problems with Minister that the person who lodged that regional Fair Trading offices. For example, I application had not heard back from the have received a number of complaints from department as at 14 October. The Minister people in the Maryborough area that their advised that the registration had been actions are not processed with sufficient processed on 11 October and had been sent. speed; that there seems to be a delay in Given the information provided by the Minister investigating some of the complaints brought at the hearing, I contacted my constituent, to the attention of the office. In the interests of who advised me that he had not received the Queenslanders lodging complaints with registration by 17 October. A couple of days Consumer Affairs, the Minister should ensure later, on the 19th, he advised me that he had that they are addressed in a more timely received the business registration. The Minister manner. I understand that some of the offices may have to look at this process. The request are operating with a tight number of for the application forms was responded to investigators. The investigation of these speedily. Perhaps there is a problem with consumer issues presents a tireless job for the processing the registrations and getting them investigators. I know the Minister is committed into the mail. I draw this issue to the attention to ensuring that some of the offices are of the Minister. Perhaps she can have a look resourced, such as that in Mackay. She has at it. It is vital that we provide the most placed people there— expedient and professional service that we Time expired. possibly can to ensure that people can create business opportunities for themselves and the Ms NELSON-CARR (Mundingburra—ALP) people of Queensland. (3.17 p.m.): I was honoured to take part in Estimates Committee G and I congratulate the There seem to be some problems with Government on a Budget that has wide the BACHCO business registration computer support. Under the good chairmanship of the system. Based on the answer she provided, member for Springwood, the democratic the Minister seems satisfied that most of those process adopted at the hearing allowed for problems have been sorted out. There will efficiency and resulted in a broad cross-section always be teething problems with any new of questions being answered regarding the computer system. Let us hope that the $1.7m three portfolios. Importantly, this Budget that has been spent and the ongoing represents a new approach to public sector commitment of the provider to iron out the financial management in Queensland. It has bugs that have been experienced will produce been prepared on a full accrual accounting a solution. basis and in accordance with the Charter of 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4531

Social and Fiscal Responsibility. The object of a number of questions relating to equity and managing for outcomes is better value and fair trading and women. However, it was targeted services that meet the needs of interesting to note the number of questions Queenslanders. asked by the member for Maroochydore that The Department of Primary Industries is had nothing to do with the Minister's portfolio. focusing on the food and fibre sectors of our Indeed, many of her questions were community, establishing Queensland as a completely irrelevant. Even more interesting sustainable and responsible partner within the and certainly more alarming was the fact that international and local food and fibre sectors. not one question was asked about the $102m The Department of Families, Youth and budget of the Department of Aboriginal and Community Care has received a $113m Torres Strait Islander Policy and Development. increase in funding to $665.7m. I congratulate This budget is double that of Fair Trading, yet the Minister on her commitment to several of not only were no questions forthcoming but the Government's priorities as mentioned. the Opposition spokesman, Vince Lester, did not even show up. Further, One Nation, who The rebuilding of the Cleveland Youth consistently condemn funding for Aboriginal Detention Centre in Townsville is welcome people, also had a no-show. They talk about news indeed. But the Youth Justice Service in accountability, but I think the people of Kirwan has particular interest for me and the Queensland would be very concerned to know wider Townsville/Thuringowa community. Early that the coalition and One Nation do not really intervention is the best solution to youth crime. care at all about Aboriginal and Torres Strait But for young offenders already facing the Islander people. possibility of life behind bars, positive steps for rehabilitation and resocialisation have to go a The Beattie Government has taken long way in preventing further crime. This progressive steps towards providing centre in Townsville has a number of trained indigenous Queenslanders with a stronger professionals and in collaboration with other voice in public administration and a greater agencies, non-Government service providers leadership role in advancing indigenous affairs. and the community at large the department This Government is attempting to reduce past can support these young people and their injustices and smooth the way to a path of families before it is too late. It is indeed a reconciliation. In so doing, the funding strong partnership with the community. increase will also include continued Because the Beattie Government is enhancement of infrastructure and indigenous committed to tackling crime and the causes of communities and compensate former State crime, we are now able to see the introduction Government employees who were unlawfully of positive approaches to keeping young underpaid. offenders out of detention, integrating them Funding of $6.3m has been allocated to into the community and significantly implement a public education campaign to decreasing the risk of reoffending. This service inform potential claimants. Further initiatives in Townsville will actively seek to reduce the have been funded to improve the wellbeing overrepresentation of indigenous young and quality of life of Aboriginal and Torres people in the youth justice system, particularly Strait Islander people. I congratulate the in detention. Townsville/Thuringowa was Minister on her vision to improve the standard chosen to trial this new community approach of living in indigenous communities, including to young offending because it was identified economic development and employment, as a high-need area. more effective community governance The community justice pilot program on systems, a more equitable justice system Palm Island is another positive step by the relevant to indigenous issues and a Department of Families, Youth and commitment to empowering indigenous Community Care in assisting young people to people to practise, promote and protect their face the consequences of their actions. With culture and heritage. experienced professionals, young offenders, The Torres Strait retail stores replacement their families and their victims have the scheme is one example of this commitment opportunity to hear each other out and make and was long overdue. $12m over four years amends. The Minister in her concern for youth has been provided to replace 16 retail stores in justice services has provided an urgent the Torres Strait region, providing valuable response to youth crime in our communities. services to the community, including the The Minister for Aboriginal and Torres supply of fresh fruit and vegetables on remote Strait Islander Policy and Minister for Women's islands. Until this Government came to office, Policy and Minister for Fair Trading was asked these outer island residents have been 4532 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 dependent on outmoded and run-down stores are. This Minister, who has done a lot of as their main retail source of essential items. travelling, who has done his level best to try to This Budget is a sound and balanced understand the Department of Primary Budget delivering its key priorities and Industries, goes out there and talks to people introduces many new initiatives to provide a and makes a good impression generally. I find better quality of life. I commend the report to it very hard to understand that he cannot see the House. what will happen if we continue to undermine those essential parts of the Department of Mr ELLIOTT (Cunningham—NPA) Primary Industries, particularly the extension (3.22 p.m.): I would like to challenge the services. If members look back to the days Minister for Primary Industries here today. when the coalition was in power in the Before doing so, I would like to say that I seventies and eighties, they will see that that personally find him to be a good bloke. He extension service played a tremendous role. In tries to be helpful. I would like to thank him particular, it fossicked for information from and his good officers for their support in people who were travelling overseas, from respect of Bush Connection in Toowoomba those doing their own research or from those both in the immediate past and in anticipation who were purely and simply smarter than the of his continuing championing of that particular rest of us. cause along with his colleague the Honourable Anna Bligh. We used the extension offices to glean that information. We worked out what it was What we are doing there is very important they were doing that was so successful and and I am sure it cuts across all political then extended that through to all of the other boundaries. It is a tremendous amount of work farmers who were willing to listen and take that and it is not going to decrease. Bush support and assistance. We ensured that the Connection have a tremendous role to play. lowest common denominator was lifted closer They are doing a fantastic job and I think it is to that of a person who was excelling in a very important that we all continue to support particular field. That is really one of the main them. I would also like to thank the Minister for roles of the extension services of Primary the bipartisan support that has been given to Industries. If we do not have those people out the Centre for Climate Applications in there walking around the paddocks with their Toowoomba. I think that is also very important. feet in the dirt, then we will not have that I would like to go on record as saying those service working properly and we will not have two things. However, I would like to urge him to the research that we are doing ourselves. use his best endeavours to stop the drift back There is some wonderful research being done to the purge of the Goss days when we saw down at Hermitage Research Station. Paul Ed Casey absolutely gut the DPI. We saw Johnson and all of the people down there are some 700 or 800 places within the DPI go working on barley, chickpeas, sorghum and during that period. Surely this Minister does goodness knows what. They are dedicated not want to go down in history as having people. They know what they are doing. They presided over another such purge where we do absolutely fantastic work. The Government just continue to decimate the services of the should not let their work be wasted by not DPI out in rural centres. disseminating it back into the community to One wonders whether anyone ever learns ensure that it lifts the productivity of primary anything from history. If Government members industries right throughout this State. do not look at what happened in the past and the tremendous political reaction against the I urge the Minister to build on the things ALP, I do not know what we have to do or say that he has done well. As I mentioned, he has or what figures we have to point out to them to done well with Bush Connection and the bring them to their senses. The services Centre for Climate Applications in Toowoomba. He should build on those. He should not let offered by the Department of Primary Cabinet members and others undermine what Industries are part and parcel of the lifeblood he is doing in respect of these other areas. of inland and rural centres. They just cannot continue to slash and burn and rationalise, no Time expired. matter what flag they like to fly it under—the Mr MUSGROVE (Springwood—ALP) level playing field, National Competition Policy (3.27 p.m.): I would like to commence my or something else. comments by acknowledging the tremendous I know there are members opposite who amount of work done by the committee staff, are just as opposed to National Competition in particular, David Thannhauser and his team Policy and the purge of rural support-based who put in a tremendous amount of work and services such as the DPI as we on this side made the life of all committee members that 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4533 much easier, particularly as we moved through this by way of criticism, questions by the the negotiation phase and where rulings were member for Noosa and the member for Crows required on the admissibility or otherwise of Nest were ruled out under various Standing particular questions. Orders. I can appreciate those members being I would also like to thank all members of a little disappointed with that. In future I think the committee for their contribution. In that a decision needs to be made that either particular, I would like to acknowledge the the Sessional Orders are amended to allow deputy chairman of the committee, the greater flexibility in questions on notice or, member for Indooroopilly, for his work. He alternatively, the chairmen of the various certainly had a very clear understanding of the Estimates committees need to ensure strict Standing Orders relating to the committee and compliance with Sessional Orders. Given the was, in fact, the only non-Government choice of an application of a culture developed committee member whose questions complied over time and the adherence to the Sessional with the Standing Orders. Some people may Orders laid down in this place, as chairman I refer to the honourable member as a pedant, believed that it was my role first and foremost but sometimes pedantry pays off. to comply with the Sessional Orders. Conversely, the contribution from the Of course, these hearings are conducted member for Maroochydore was of somewhat at great cost and effort. I join with other less value to the committee. The member was members who have speculated that there may not an official part of the committee but was be a more cost-efficient mechanism for granted leave by all members of the conducting these hearings. In particular, I committee to join the committee. would like to float the possibility that these Unfortunately, shortly after being granted that hearings may be conducted while the House is leave, she accused me of trying to gag the sitting, particularly as these hearings are held committee and generally carried on with the in the Upper Chamber and not in the feigned outrage that honourable members get Legislative Assembly. used to in this place, but I do not think that I would also like to take this opportunity to had a comfortable place in the life of the acknowledge the great amount of work that committee which all members worked hard to has been done by the agencies that appeared conduct in a spirit of cooperation and before the committee in preparing their budget constructive comment. I remind that documents and their answers to the honourable member that she was there by committee in the transfer to accrual budgeting. leave and by agreement of all committee Time expired. members. I resisted ruling that the committee debate her assertions about my chairmanship Mr BEANLAND (Indooroopilly—LP) in private in the interest of an open and (3.33 p.m.): I place on record my thanks to the accountable committee. committee members, the chairman of the committee, the staff and the research director, I would like to thank all Ministers for their who has already been mentioned, Mr David constructive contributions. I thank their Thannhauser. Mr Thannhauser showed every personal staff and their departmental staff for courtesy to all members of the committee and the huge amount of work that they put into the certainly to me. He showed that he is very preparations for the Estimates committee. I efficient in the way he goes about his work. think it was demonstrated amply that all those We owe a debt of gratitude to him. departments are going ahead in great leaps and bounds and making a wonderful It is interesting to note the range of contribution to their respective portfolio areas. interest groups and others opposed to this Answers to the committee were provided in an Beattie Labor Government Budget. One open and timely manner, even those that were aspect I found most alarming about the perhaps somewhat onerous in the amount of Budget itself, particularly in relation to the detail they required. Department of Families, Youth and Community Care and the Disability Services Of course, I know that some members of portfolio area, related to the Ministerial the committee were perhaps a little Portfolio Statements. It appears—and the disappointed when some of their questions Minister indicated this to the committee—that were disallowed by me on points of procedure. various parts of the Ministerial Portfolio I make the observation that, over time, a Statements were misleading. There is culture might have developed in this place opportunity within the portfolio statements to where questions on notice do not comply with put various notations that need to be put to the Sessional Orders laid down by the ensure that the correct information is being Parliament. In particular, and I do not mean supplied. However, in many cases, that did not 4534 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 occur, the statements at the top of the pages some cutbacks in order to find funding to pay were inaccurate or wrong and the veracity and for that asset tax imposed by Treasury on all the validity of the document were found departments. The Department of Families, wanting. Many important parts of the Youth and Community Care is the last document in relation to outputs and other department that can afford to give up that sort aspects were plainly incorrect. I hope that in of money, which will no doubt run into millions future those Ministerial Portfolio Statements of dollars if it were to undertake a future capital can be correct, because there can be no works expenditure. excuse for this. A great deal of care needs to One alarming aspect is the fact that be exercised in the preparation of them so that Premier Beattie does not trust the Minister. the information supplied to Parliament and to That came out on page 8 of his Budget the members is correct. Not only members Speech, where the child protection shortfall read the portfolio statements; a range of was blamed on the Minister and the people take as the truth the information that bureaucracy. I do not think the Premier's they find within those Ministerial Portfolio saying those types of things and thinking in Statements. To find out later that parts of the that particular direction augurs well for the statements are incorrect is simply not good department and the Minister. It is quite enough. concerning that jobs, jobs, jobs is not at the I asked a question in relation to the break- forefront of this Minister. The capital works up by electorates of grants paid to community allocation was not spent. organisations and other non-Government Time expired. bodies during the 1998-99 financial year by the department. For the interest of members, I Mr FENLON (Greenslopes—ALP) point out that the Minister did advise me in (3.38 p.m.): I rise to speak in support of the great detail of the various grants to the various recommendation contained within the electorates. I thank her for that. I took the Estimates Committee G 1999 report. In doing trouble to work out the actual percentage of so, I would like to pay particular attention to the total funds and the number of seats. I the Primary Industries portfolio. I would like to found it rather interesting that the point out that a very fresh breeze is blowing Independents and One Nation Party received through the countryside of Queensland, across 10.28% of the funds and have 13.48% of the the plains in the west, through the Lockyer seats. The Liberal Party received 6.89% of the Valley and to the far north. It is a fresh breeze funds and has 10.11% of the seats. The that is initiated in the southern suburb of National Party received 16.75% of the funds Brisbane called Inala. It is in the form of that and has 25.84% of the seats. The Labor Party very fine Minister for Primary Industries, the received 65.76% of the funds and has just member for Inala, Henry Palaszczuk. over 50.56% of the seats. For what it is worth, Mr Lucas: The farmer's friend. that is a breakdown of those particular figures. Mr FENLON: He is indeed the farmer's Various members will make out of those friend. We have to ask: why is this so? Apart figures what they want to make out of them for from the obvious wit, physical dexterity and themselves. personality of the honourable member, he In relation to the Budget overall, I think it does bring something very different to that is most disappointing that all departments portfolio. We have to examine this very highly were hit again this year by the particularly large protected sector from an historical perspective. Budget deficit of $1,235m highlighted in It is no coincidence that Queensland has been Budget Paper No. 2 on pages 93 and 94. It described historically as the State of agrarian reminds one that, with such a large debt, socialism in terms of that very high level of under this Government we have already protection. It is unfortunate that in the past too started to head down the road of John Cain, many people from that industry have been in Victoria's famous Premier for debt, and South charge of that industry. Australia's former Labor Premier, John Before members opposite get too excited Bannon. The Budget deficit is there in black about that comment, they should understand and white. In future, all Government that the sheer principle is what I am attacking departments will have to pay the penalty for here. In modern management it is a damned that. good idea to throw in somebody who has a The same applies to the Beattie stealth very different perspective. That idea could be tax, equity return tax, asset tax or whatever taken to extremes and the suggestion made terminology one might like to use. This time that it is not a good idea to put teachers in around it was funded by the Treasury, but in charge of education or engineers in charge of future years the departments will have to make Main Roads, but the fact that somebody with a 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4535 very different perspective is now overseeing addressing this Chamber that was more that Ministry of Primary Industries represents a pathetic than the one we just witnessed. very refreshing change. It is a change that I I am pleased to rise to make some believe has been accepted and appreciated comments on Estimates Committee G. I will very well in the bush. direct my comments to the answers given by That change is certainly reflected in this the Minister for Primary Industries as they budget, which provides a very new mentality related to the purchase of the interests of and approach to this portfolio. It is a step away Boral as part of the regional forestry from what really has been historically a farm agreement and the establishment of gate mentality towards a far more creative hardwood timber plantations. There is growing approach. It is a new direction that I hope will concern in timber communities that, for all the be maintained. I hope that we are in the very fine sounding words, the State Labor initial stages of this change. It is a change Government is more interested in the politics away from that farm gate mentality to a new of this issue than in providing any real future approach which is market driven and for the timber towns and the people who technology driven. depend either directly or indirectly on the industry. I welcome the initiatives contained within this budget, especially in relation to I take this opportunity to call again on the emphasising the importance of biotechnology. Government to provide some much-needed I also urge the Minister to continue with the detail to fill in the gaps that exist so that we very sound approach he is already taking in know what is being proposed for the future of terms of marketing, because this is a two- the timber industry. A lot of detail needs to be ended process. I think we in Queensland have provided about how some parts of that been very remiss historically in terms of agreement are to be achieved in the hard connecting both ends of the process. That is, world of reality. we have to grow for the market and we have Of particular concern to me are the timber to go out there and find the market. I believe mills at Eidsvold and Theodore, both currently that we have a long way to go in terms of owned by Boral and both proposed to be Governments working with industry. There are purchased by the State Government and on many good models overseas to follow in terms sold to another operator. The only reason of industries taking the initiative and going out Theodore is involved is that it is currently and finding a presence in the other countries owned by Boral and is therefore caught up in in which markets are to be established. I think the deal with the Government to purchase we need a new approach. We should get Boral's operation completely. Boral was never away from a very bureaucratic approach to involved in the RFA area, nor does the mill overseas marketing and strive for an approach source timber from that area. The Eidsvold mill which is far more entrepreneurial—one which is not located in the RFA area either, but it looks to various new forms of overseas agency does draw some timber from that area. and representation in order to market our Despite continual assurances from the Deputy product. Premier in this place, following the RFA agreement Eidsvold now faces a very I think there is a lot more to be done and uncertain future. there are new approaches to be taken in those terms. I will be saying a lot more about this in Both mills and their dependent the future. Tomorrow I will be tabling a report in communities have certainly not shared in the relation to my overseas trip. There is a lot of false euphoria generated by the proponents of insight that I hope to provide in terms of the RFA agreement. Both Eidsvold and getting the marketing organisations, the Theodore will see their timber mills purchased industry organisations themselves, to have a by the Government and then supposedly presence. Many of our markets are very resold to another private operator. That attracted to direct connection to the producers. sounds fine in theory, especially if people are expounding that theory from the isolation of Time expired. George Street. In reality, it raises many issues Mr SEENEY (Callide—NPA) (3.43 p.m.): that have caused and will continue to cause That pathetic attempt at addressing the concern to the workers and the members of Primary Industries portfolio as dealt with at the the general communities in Eidsvold and Estimates committee is an accurate indication Theodore. of just how well this portfolio is understood by Those communities need a guarantee those on the other side of the Chamber. I that their mills will be on sold with a dedicated struggle to remember an attempt at and inseparable timber allocation—an 4536 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 allocation that is sufficient to ensure the mills' detail to be provided to give some substance survival. That allocation must be sufficient in to the RFA and to give some guidance to the terms of quantity and quality. Most importantly, people of the timber communities who are they need a guarantee that the allocation dependent on the great timber industry. cannot be transferred to another operation Hon. J. C. SPENCE (Mount Gravatt— somewhere else. If they were, these ALP) (Minister for Aboriginal and Torres Strait operations would become targets for other Islander Policy and Minister for Women's mills, who would be seeking to transfer the Policy and Minister for Fair Trading) quota to boost themselves. If that occurred, (3.48 p.m.): I rise in support of the report of the end result would be the loss of mill jobs in Estimates Committee G. I begin by thanking Eidsvold and Theodore—mill jobs that are members of the committee. The reports I have critically important to the economic base of had from my ministerial staff and from the those communities. department certainly were favourable. They If there is any honesty in this RFA deal had very positive dealings with the committee. and if this Government is fair dinkum about I thank the chair and the committee members any of the rhetoric that it has continually for that experience. sprouted in this place, then the people who I also acknowledge the hard work that work in the timber industry in Eidsvold and was put in by my departments and statutory Theodore will be given some hard answers. authorities in preparation for the committee They need some detail that they can make this year. I think all Ministers would some measured judgments on. They need acknowledge that this was a particularly difficult some facts that they can rely on and make year because of the change to accrual some decisions about in relation to their future. budgeting. From a Minister's point of view, and They certainly do not need any more political certainly from a department's point of view, it rhetoric. They do not need any more smoke was a new set of figures to understand. I think and mirrors tricks. we are in the swing of it now and hopefully in I believe, and I said at the time, that the future years we will all be able to sail through RFA was a political deal worked out on the that process with more ease than was 15th floor in George Street and sold by a experienced this year. battalion of smart PR people and a compliant While working with the committee was a urban media. Now five weeks have passed positive experience, there were some and there is a growing realisation that the negatives on the day. As Minister for reality is in the detail and there is precious little Aboriginal and Torres Strait Islander Policy, I detail to be had. was particularly disappointed that the Another issue raised at the Estimates Opposition should choose to ignore that committee hearing was the establishment of department and that policy area in the hardwood plantations. There are a great many committee debate. The Opposition chose to questions left unanswered in this area as well. spend three hours debating the budget for the Where is the money to establish these Department of Equity and Fair Trading, a plantations and where are they proposed to be budget of just over $40m, but chose to located? If the mills throughout Burnett's towns completely ignore the budget of the are to survive in the long term, then some of department of Aboriginal and Torres Strait these plantations need to be located in the Islander Development, a budget of over Burnett region. Already there has been much $100m. talk from the Government about the jobs I believe that indigenous people in involved in establishing and maintaining those Queensland should find that insulting. The proposed plantations, and the jobs they would Queensland community should find insulting provide would be very valuable to many the fact that they have an Opposition in this communities in the Burnett. Not only would the State that cannot even be bothered to do its jobs contribute to the economic base, but job as an Opposition, that is, to scrutinise the locating the plantations there would also Government's budget. The Opposition failed to ensure the future of the mills at Eidsvold, scrutinise a $100m budget—a budget of a Theodore, Mundubbera, Monto, Mulgildie, whole department. These are the very same Wondai and Allies Creek. people—and I include One Nation members I take this opportunity to urge the and Independents in this—who go out into the Government to seriously consider the Burnett Queensland community and criticise region as a location for the hardwood accountability in Aboriginal and Torres Strait plantations that are to be established as part Islander organisations and how the of the RFA. I call again for a great deal more Government spends its indigenous money. 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4537

Yet when given the opportunity to have some poor has expanded considerably, and it is understanding and to ask us questions, they widely recognised that the rural and regional passed us by. We do not believe that the sectors of this nation are missing out. More Opposition has a shadow Minister for this than ever before, our primary industries need department or for this portfolio. At least, no- the support and commitment of the one turned up on the day. Government; they need policies which provide On a positive note, though, I was pleased vision and hope for the future; and they need that the Department of Equity and Fair Trading practical and straightforward assistance which received a favourable report from the gives them some chance of reducing the rapid Opposition; that there was no dissenting spiral of decline that they are now report. I believe that this is a vote of experiencing. They need to know that their confidence in my performance as a Minister State Government cares about them enough and certainly in my departments and the to give them a fair go. statutory authorities that I administer. I thank And what have they got from the Beattie the committee for that. Obviously, the Labor Government? They have a Minister for Opposition, like the people of Queensland, Primary Industries who has, for the past 18 appreciates that the Department of Equity and months, simply and systematically removed Fair Trading is doing a very good job and almost every chance our rural sector has for a recognises that. fair go. They have received a DPI budget Moving on to the Office of Women's which has been slashed by $27m. They have Policy, a number of members of the received a DPI capital works program which committee have drawn attention to the poor has been cut back by 20%. They have performance of the honourable member for received a new tax on capital works—that Maroochydore, who came along to ask a few Beattie stealth tax—which will cost the DPI questions about the Women's Policy budget. I $11.3m this financial year. Our primary would say to those members who were producers know that this arrangement will force disappointed that I think the member for the DPI to extract higher returns from its Maroochydore is more to be pitied for her existing assets, and they are fully expecting to ignorance than scorned for her bad manners be hit with new fee-for-service charges or to during the committee. The member for see a DPI sell-off of infrastructure and assets Maroochydore clearly displayed that she had which do not return the required 6% no understanding of the Office of Women's dividend—a sell-off which will only add to the Policy or its budget. She chose to waste her damage being done by the Beattie Labor time asking me about the budgets of other Government. Government departments and rarely touched They have seen much-needed water on that particular policy budget. development programs cancelled, stalled or The Equity and Fair Trading Department completely lost in the Palaszczuk paper was pleased with the level of questions, shuffle. They have seen their timber industry particularly by the Government members, who all but disappear. They have had George fully understand the great achievements in Street bureaucrats determine that Queensland increasing the budget of that department, property owners are incapable of deciding how particularly in the area of education. We were to administer their own properties and that able to draw a stark contrast, because even in they should be told how to manage their a tight fiscal year we were able to increase the vegetation processes. budget allocated to the education branch of Our primary producers have suffered a the Equity and Fair Trading Department. Of $9m purge of the DPI animal and health course, that was an area that was sadly budget, when animal and plant health is one neglected by the coalition when in of the most important trade issues of all. We Government. We believe, in the Equity and heard words from Mr Beattie, the Premier, Fair Trading Department, that it is more yesterday. We have heard words from the important to educate Queensland consumers Primary Industries Minister this morning. As a than to prosecute people who are doing the net exporter, and a State so dependent on our wrong thing. Last year and next year, we will clean and green market reputation, pest and see more of that education. disease surveillance is just too important to Time expired. compromise. Mr VEIVERS (Southport—NPA) Queensland's major beef-producing areas (3.53 p.m.): The recent Victorian election has have suffered a reduction of 11 research and highlighted the fact that Australia is becoming extension jobs from the DPI Beef Industry two societies. The divide between rich and Services Division. The fact is that our 4538 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 producers struggle in a market which has seen Hon. A. M. BLIGH (South Brisbane—ALP) prices slide. Even though they contribute $1.7 (Minister for Families, Youth and Community billion to this State's export earnings and Care and Minister for Disability Services) regional employment, that does not seem to (3.59 p.m.): I am pleased to speak to the generate any pride or support from report of Estimates Committee G. I thank the Queensland's Minister for Primary Industries. committee chair, members of the committee The hope provided by the coalition and committee staff, particularly research Government's budget commitment to scrap director David Thannhauser, for their hard work stamp duty on crop insurance and loan and organisation of the Estimates committee refinancing has been diminished by the process this year. Beattie Government's refusal to uphold these The 1999-2000 Budget Estimates initiatives. In fact, what our primary producers process has afforded me an opportunity to have seen is a return to the bad old days of highlight the significant reform that has been the Goss Labor Government, when millions of accomplished in the previous budget and dollars were plundered and hundreds of jobs outline the continuation of reform in some were lost to sackings, redundancies and shamefully neglected areas, such as child retrenchments. Now, our dairy industry has protection and disability services. This reform been told to wait and see. The Primary and rebuilding of a system that had been Industries Minister, Henry Palaszczuk, does abandoned by members opposite has been not have the knowledge, expertise or strength accomplished in partnership with the to make a decision for himself or for community. I take this opportunity to recognise Queensland's dairy industry. He has asked our the important contribution of our non- dairy farmers to hang on and see what Victoria Government partners over the past year and does. He does not have the courage to state to thank all officers of my department for their that dairy deregulation will only benefit the big hard work and dedication to change over the processors and the big retailers; that there is past 12 months, particularly my director- nothing in it for Queensland dairy farmers. general, Mr Ken Smith, and staff of the It has not even been 12 months since Finance Branch in their preparation of material post farm gate deregulation, and the public for the Estimates. Thanks also go to the staff have been hit with two price increases totalling of my ministerial office in this regard. 12c per litre. Deregulation was supposed to It is because Labor cares that we injected deliver more choices and lower prices, but an unparalleled budgetary increase into the obviously it is proving to be the opposite. Total disability services sector and the child deregulation of the dairy industry, including protection areas of my portfolio. Because we removal of the regulated farm gate price, are about delivering, we will ensure that funds would push farm gate prices down and force are distributed equitably and fairly. The hundreds of dairy farmers out of the industry. member for Indooroopilly asked a question on The sheer size of the industry and the notice of Estimates Committee G in relation to aggressive nature of the major processors and funding by electoral boundaries. He did not retailers will make sure of that. ask any questions about this material at And if Mr Palaszczuk does not have the Estimates Committee G, but he has come in courage to take a stand on deregulation on here this afternoon and has tried to make behalf of Queensland dairy farmers, then he some obscure political point. I would like to should at least have the courage to show make the point that we distribute funds on the bipartisan support for the billion-dollar, five-year basis of need and not on the basis of electoral restructuring package proposed by the boundaries. The coalition cared so little that it Australian Dairy Farmers Federation. The did not even bother to find out how many Queensland coalition certainly does not Queenslanders needed support in areas such support dairy deregulation, but at least we as disability services. We have built a system recognise that our dairy farmers will need from the ground up and laid a foundation for a support should it go ahead. At least we fairer system in the future. understand that a contingency plan needs to The priorities for my department this year be put in place and our dairy farmers given include the care and protection of children who every opportunity to restructure their come into care and those who come into businesses to survive. contact with the youth justice system. In the I have only touched on a few of the area of child protection, the Government has damaging effects of this Beattie Labor committed $100m over the next four years to Government. increase the State's capacity to care for children who are at risk of coming into our care Time expired. or who are already in our care. This money will 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4539 be used to boost the front line of our Forde inquiry. I can only assume that the department's work by 250 workers over the member for Indooroopilly failed to read the four years and provide better resources for report of the Forde inquiry. Anybody who has service providers supporting abused and read that report could not fail to be moved by neglected children and their families. the experiences of people who have been to The shadow Minister has tried to make Westbrook. The member has either not read it much of the staffing figures in this regard. or he truly believes that Westbrook was a first- There is no doubt that he is either unable to class facility and should be replicated. It is a add up or unable to understand the changing disgraceful comment. All those who suffered in nature of a large and complicated work force. this facility are entitled to the support of all Seventy positions were advertised nationally members of this Parliament. They are on the weekend after Estimates Committee G. obviously not going to get that support from There was huge interest, and I am pleased to the member for Indooroopilly who, in my view, report that we have received over 400 phone should apologise unreservedly to the past calls seeking information about the positions. residents of that shameful place. In the area of youth justice, the Forde We have a long way to go in this portfolio, inquiry outlined significant need for reform but much has been achieved and we have based on an urgent upgrading and much to look forward to in the coming years. replacement of Queensland's youth detention We will continue to get runs on the board facilities. On this issue, as I have said on many where it counts. occasions, members opposite should hang Time expired. their heads in shame. Once again we see a Report adopted. history of promises to spend up big and construct better detention facilities, but no Clause 1, as read, agreed to. political will to deliver on this commitment. Clause 2— To date, we have spent over $3m in just Mr BORBIDGE (4.05 p.m.): I move— 12 months in comparison to the previous "At page 4, line 5, before 'from'— Government's spending of $4,000 over three insert— Budgets. We have spent 800 times more in 12 months than the coalition spent in two and a ', less the total amount relating to equity half years. This is just the beginning of our 10- returns for departments,'." year $63m youth detention infrastructure plan. The 6% equity return—the Beattie stealth tax, A crucial part of the youth justice infrastructure the capital works tax, the assets tax, call it plan is the closure of the outdated and what one will—brings with it enormous inadequate Sir Leslie Wilson Youth Detention implications down the line. The Opposition Centre at Windsor. This was another believes it is very important that, as these commitment where the previous Government problems evolve, people from one end of failed. Why? Queensland to the other should know which Perhaps the answer to that lies in the members of this Chamber voted in a division member for Indooroopilly's speech in the to implement this particular measure. Budget debate in this Chamber on 16 This is nothing more and nothing less September. I think it is important that than a 6% impost on every school in honourable members know that the following Queensland, every road, every police station, words were actually said by the member for every hospital, every operating theatre, every Indooroopilly, because I believe it was a hospital ward, every hospital bed, every disgraceful contribution. He stated that the ambulance station, every fire station, every Goss Government disposed of the State's best DPI facility, every TAFE college, every bridge and major youth detention facility. The and every public housing project. This is member could only be referring to the nothing more than a grab for cash by the Westbrook youth detention facility at Premier and the Treasurer. It will mean more Toowoomba that was closed after 94 years of money for the Premier and Treasurer but less extreme violence, institutional cruelty and for front-line service delivery, because this neglect of boys in care. capital charge will act as a massive Yes, that institution was closed by the disincentive to the development of vital social Goss Labor Government. It was a proud and capital infrastructure, particularly in rural achievement of that Government. The and regional areas. Westbrook facility was the subject of a 1961 This tax will inevitably lead to cuts in real inquiry. There was another inquiry in 1994. The services to real people in real towns and cities facility was again examined in detail by the across the State. Government members 4540 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 should make no mistake: this particular tax is a more money for schools, the Department of cynical exercise—a con on a massive scale Education will be trying to minimise its capital which will leave no Government department base in order to minimise its exposure to the unscathed except the Treasury and the equity tax, the capital tax, the Beattie stealth Premier's own department, which is well- tax. equipped to cope with the additional demands Instead of going to the Cabinet Budget because of the huge boost in funding which Review Committee hearings fighting for new the Premier granted himself whilst he had the capital expenditure in hospitals, Queensland keys to the vault. Health will be forced to make do with what it Under the equity tax—the capital tax, the has. That scenario will be replicated across BST—Government departments will have to virtually every department. Under this dubious cop their budget cuts on the chin or wind back regime, there will be no incentive to keep their costs by an equivalent amount. That will Crown land that has been carefully identified be felt in the area of service delivery where and accumulated over the years for future ordinary, decent, hardworking Queenslanders roads, for future hospitals, for future police everywhere will pay the price. Ultimately, they stations, or for future schools. Why not sell it will pay this tax in terms of services forgone. and avoid the tax? I believe that the Main Departments will have no option but to slash Roads Department would be thinking just that, their service delivery by the appropriate particularly when it has an effective 10% cut in amount to meet the bill. funding while vast sections of this State are Queensland Health will have major crying out for roadworks. problems. We are already seeing beds closing This capital charge is a massive in the redeveloped Cairns Hospital, as the disincentive to prudent and intelligent forward shadow Minister for Health revealed this planning. Why hold on to the land for the new morning. The Bundaberg Hospital is another hospital, for the new school, for the new DPI hospital where Queensland Health is looking office, or for the new police station? Sell it now hard for savings and reducing services. My and avoid the Beattie tax grab. Get rid of it fear is that this tax could lead to the closure of now to protect the base. Get rid of it now to entire hospitals. Health boffins have already avoid the tax. The only problem is that, run their eyes over hospitals such as the generally speaking, over the years these Nanango Hospital. provisions have been made across The justification advanced—and I think Government departments for very good the Premier and the Treasurer have been reasons—future planning, foresight, vision. pinching ideas from the National Competition They were made with the idea that in a Council—is that this tax will force departments growing State we might need more land for to better manage their assets. Read for that: hospitals, we might need more land for better reduce their assets—assets that provide schools or we might need more land for police the infrastructure to provide communities stations to provide the future capacity to across the State with vital services such as deliver basic and essential services to education, health, police, transport, Queenslanders wherever they live. ambulance cover and protection against fire. I say to the Committee today: make no This new invention of Labor parallels its $1.2 mistake, BST avoidance, equity tax avoidance, billion Budget deficit. By definition, for capital tax avoidance—whatever we want to departments to increase their assets means call it—will be the new game on the increasing their tax exposure—their exposure Government block. It is going to reduce the to the capital tax, the Beattie stealth tax, the scope and quality of Government services to equity tax. Conversely, to reduce their assets the people of Queensland. This Government is would reduce their tax exposure. That is making a greedy, selfish attempt to shore up certainly a powerful incentive for departments its own fiscal inadequacy and its own to shrink their asset base. This paints a immediate future by robbing future frightening scenario for communities right generations of the legacy that would provide across the State, particularly in rural and for basic infrastructure that Queenslanders regional Queensland. deserve wherever they live in this great State. What price the small, isolated one-teacher The Government must be held to account. school? What price the small, one-man police That is the reason why the Opposition is station in a small rural community? What price moving this particular amendment. the community health centre in a regional This afternoon, each and every member town? Instead of going to the Cabinet Budget of this place, including, of course, the Labor Review Committee hearings and fighting for members, the Independent members and our 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4541 other non-Government colleagues will have to member for Gladstone, I point out that the make a decision as to whether they are purpose of the amendment is, firstly, in clause prepared to back this tax grab that will 1, to remove the amount that is going to inevitably mean over time—maybe not this departments. I think the second amendment year, maybe not the year after, but inevitably actually removes the obligation. over time if it remains in operation—a Mr Hamill: No, sorry. reduction in services in their electorates. I say to each and every Government member that, Dr WATSON: My understanding is that it unless they support this Opposition removes the obligation on departments to amendment, that is what they will be voting fund it. So the purpose of the amendments is, for. They will be voting for a reduction in first of all, to remove the amount going to the Government services. departments with respect to the outputs and, secondly, to remove the obligation to pay for Mr Hamill interjected. them this year so that in fact there is no net Mr BORBIDGE: The Treasurer can laugh, difference. We know already from the because the Treasurer is the beneficiary. I speeches made by the members opposite that remind honourable members of lemmings that the purpose for it this year was simply to jump over the cliff. They could keep following include in the departmental outputs the equity the man who has nearly brought down two return that they calculated to be due based Labor Governments in Queensland in a row. upon the net equity of the departments as at They could keep following the Treasurer who, 30 June 1999 and then in the expenses despite receiving a Rhodes scholarship, include the equity return as an expense. In strategically and tactically is a dunce. They that way, because it was not taken into could keep following the Treasurer, who is one account in this particular Budget, there is no of the greatest political disasters the Labor effect on the net asset position. Of course, Party has ever foisted upon the people of from July of next year, every new school, Queensland. Even in this incredibly hospital, courthouse and road is going to be incompetent Government not many Ministers hit with this assets tax, this Beattie stealth tax. can lay claim to nearly bringing down two Labor Governments. However, the Treasurer Mr Hamill: How is that? can do that. Dr WATSON: Every new asset is going to Today we will watch to see who will be the increase the net equity of the department. The lemmings who will follow this Treasurer over net assets are going to go up. According to the cliff, because over time this particular tax what the Treasurer has said in the past, the and the impact of this particular tax will result in departments are not going to be compensated a reduction of Government services in each for the extra net assets. I presume that and every electorate. decision is yet to be made. However, as the Treasurer has said, the objective is that, in the Mrs LIZ CUNNINGHAM: In a number of future, departments are going to be instances I have expressed concern about and compensated in their outputs at 6% of the net opposition to the equity return. I believe that, equity position that existed as of 30 June over time, the principle of the equity return will 1999. If there are changes in the net asset diminish the ability of departments—particularly position in the future, that 6% will have to be asset heavy departments, by their very absorbed by the department. nature—to either invest in new buildings or upgrade existing buildings. It is possible that a department can reduce its tax by reducing its net equity. However, my concern is that these two However, most departments, particularly those amendments, which intend to remove from the that are capital intensive, are going to find that Budget the dollars involved in the they are moving the other way. If members compensation for the equity return for this look at last year's Capital Works Budget, they year, do not remove the obligation within the will see what impact an extra 6% will have on Budget documentation for the departments to the increase in the asset base of the pay that equity return in the future. I would like departments. For example, in Health it will be to know how that obligation will be met without about $36.5m; Transport, $132m; Housing, the dollars. As I understand it, the money for $14.5m; agriculture, $8m; in conservation, the equity return will be taken out but the $6m; in Education, $18m; law and order, obligation will not be removed. If my $22m; Mining and Energy, $49m; general understanding is wrong, how will that obligation services, $16m; and economic services, about be otherwise nullified? $2m. That is the net increase in the asset Dr WATSON: It gives me pleasure to base of those departments, and the 6% will enter this debate. For the benefit of the apply to that net increase. 4542 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999

Based upon last year's capital works, the introduced to provide a management incentive increase will be something like $300m. The to improve the efficient use of assets, but it will fact is that, to pay for the increase, not make a commitment on whether or not it departments will have to remove some of the will continue that policy in 2000-01. assets that they currently have on their books. During the Estimates committee hearing I They will have to improve the "efficiency" of asked the Treasurer the following question, their departments. That is the major argument which he never satisfactorily answered: how will that the Government has used to introduce the equity return provide an incentive in this this asset tax. The Government has argued Budget, when department managers do not that the introduction of this tax will encourage know whether or not it will be continued in departments to manage their assets in a more subsequent years? I gave the example of a efficient manner. Of course, we saw the fallacy department that has a $100 asset. If it sells of part of that argument in the case of the that asset, $100 goes to Treasury and the Parliament. department only gets a saving of 6%, or $6. In the Estimates Committee A hearing, Where is the incentive? Ninety-four dollars has the Speaker was asked how he will improve already gone and it will take a heck of a long the efficiency of the Parliament when its major time before it is recouped. At present values, assets include the Parliament building and one may never save that amount. It behoves historical things such as books and paintings managers of departments to keep their assets that have been given by shires throughout the rather than sell them. State for the Parliament to exhibit. The Speaker was asked how he will improve the When one looks at the way that the efficiency and utilisation of those assets, when equity return figure has been calculated, one he cannot get rid of them. As the Speaker so realises that not even Treasury can get it right. accurately answered, "You can't." We will find The tax on Treasury—the equity return—is that the amount of the equity return included $8.33m, but on what basis is that figure in our outputs will go straight back to Treasury calculated? Treasury could not even come up as the equity return. Of course, that raises the with the figures on which that was based. question of how the 6% equity return will When we questioned the Treasurer in detail improve the management efficiency and received an answer on notice, all that he associated with this place. The same said was, "We should have included other argument can be applied to every department aspects that were not directly in the Treasury that does not have the luxury of changing its Department. Over time, we expect it to move asset base because of policy, political reasons to the Treasury figure." If Treasury could not or historical reasons, such as in the case of the get it right, I have no confidence—and I Parliament. suspect most members on this side of the Parliament have no confidence—that other We have already seen the impact of this departments will have got it right. with the Education Department. A couple of weeks ago, the Oxley secondary school was I suspect that when one goes through the nominated to be closed. This issue has been Budget in detail, one will find that even the net associated with the Department of Education equity position has not been substantiated. If for some time. The department knows that the the Government cannot get it right in its first land that the Oxley school occupies is probably Budget and if it cannot determine what the net worth $10m, or whatever. By selling the equity position is for a department on 30 June school, the department will reduce its asset 1999, what hope is there of encouraging base and, presumably, pay the $10m back to managers to manage their assets correctly? Treasury. Of course, that will reduce the They do not even know whether the amount of tax that the department has to pay Government can get the net equity position in the future. The problem is that the right. If the Government is going to encourage department will need to replace such an asset departments to manage their assets more with another school. When one starts to efficiently, the first thing that it has to do is to increase the asset base through the measure the figure correctly. Treasury has development of schools, the tax on the failed to do that and I suspect that Education Department will go up. departments across Government have failed to do it also. The Government has argued that the Budget for 1999-2000 has been fully funded. Those are a few of the issues that need However, the Government has failed to say to be addressed. No doubt, insufficient what it will do in 2000-01. It is trying to have thought has been put into the process. As the two bob each way. On the one hand, it is Leader of the Opposition said, it a tax and saying that the equity return is being nothing but a tax. 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4543

Mr HORAN: I join the debate to support extracted from their recurrent budget. They will the amendments moved by the Leader of the then face the problem of funding the payment. Opposition. This assets tax—and it is an They have to determine what services will be assets tax, not an equity return—is one of the cut back and what restrictions will have to be greatest con tricks that has ever been foisted placed on the department in order to make up on this Parliament. It has been called an for the millions of dollars that will be extracted equity return as part of the spin doctoring, to from their recurrent budget. make it sound like money that is coming in I return to my point about Governments rather than money that will be going out of the trying to find sources of money. The present departments, which is what it is. sources are Commonwealth funds and State Every department that increases its net receipts. The Government looked around for asset value—which is what should happen another source and it found one. The shadow every year because new schools, hospitals, Treasurer has given an indication of the result police stations and roads are being built—even of applying a 6% formula to the amount allowing for depreciation and so forth, will bring represented by the net increase in assets. The about a liability of 6% of that net increase. figure is in the order of $300m. He is not far That will be due and payable on 1 July next from the mark. Prior to the Estimates hearing financial year, because the liability for this for Police and Corrective Services, I placed a assets tax is accruing day by day throughout question on notice seeking the net increase in this financial year. the assets of the Police Service and the Honourable members interjected. Department of Corrective Services. The answer indicated that, based on multiplying the The CHAIRMAN: Order! There is too expected net increase from 1 July this year much audible conversation in the Chamber. through to 30 June 2000 by 6%, the Police Mr HORAN: That liability is accruing day Service would have to find $5.5m and by day. I am quite sure that many members of Corrective Services would have to find $5.2m. the Government are not aware of this. During A total of $10.7m will be paid from the portfolio the Estimates committee hearing, we of one Minister to Treasury through this assets discovered that the Minister for Police and tax or, as the spin doctors call it, the equity Corrective Services simply did not want to return. discuss the issue. He kept saying, "It's next So the Government was looking for year's problem. We'll see what happens then." money and it suddenly found a new source of However, the problem is happening this year money, that is, taking money out of the because the liability is accruing day by day. It budgets of its own Government departments. is accruing for the Minister for Police as he Let us take Lang Park as an example. If the builds police stations. As he buys equipment Government decides to go ahead with that over a certain value it accrues, because that redevelopment, where on earth will it find the comes under the definition as given to us in $340m that is needed for that project? the Treasury briefing. The net asset value Through extracting $10.7m via an assets tax increases not only through buildings, but also from the Minister for Police and Corrective as equipment is purchased, less the Services and through extracting further depreciation or what old equipment is sold off. amounts from other departments—and the This assets tax will be applied on the increase amounts will be substantially larger for some of in net assets that occurs this financial year. the other departments—the Government will Each year, Governments have a certain build up between $200m and $300m per year, amount of income and every Government which it will use every year for a particular would like to have more. The only income is capital asset or project. Each and every what is obtained from the Commonwealth and department will be so screwed down through receipts that come in during the year. The having to pay this assets tax that we will see a Beattie Government is trying to find another drastic reduction in services from each source of income. It found that income source department. by putting the screws on its departments and It is the classic smoke and mirrors trick. using a formula to extract millions of additional Why would the Government not say that it has dollars from the recurrent budgets of each all of this extra money when it knows that part department. The formula will be applied to the of that money will be coming from its own capital section of the budget, that is, 6% of the departments? This assets charge is something net increase in the asset values of the that Treasury has had in its holsters for some department. However, the payments will be time. Earlier in the 1990s we would remember met from the recurrent budgets. On 1 July that former Treasurer De Lacy introduced a 2000, every Minister will see that money similar charge on the Health Department. He 4544 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 taxed the non-labour component of the Health Government and, in particular, Ministers a Department by 5%. On 1 July every year, the favour, because they will bear the brunt of this. poor old Health Department lost a They will get the blame for the cuts that they performance dividend. Now it has got this will have to make and for the restraint they will new— have to show and the effect this will have on Mr Borbidge: And he liked it so much he rural and regional services, in particular primary thought he'd apply it to local government. industries services. I think this is starting to sink in with some Ministers. They realise that in the Mr HORAN: That is right. The tax now not-too-distant future they will be in a very goes under another name—the equity return. difficult situation. However, this time a different formula is applied. It does not matter where it is applied. We remember the Goss years, when rural This one is applied to capital, but it could be and regional Queensland was severely applied anywhere. The whole idea is to use it handicapped through the irresponsible closing to take millions of dollars out of every single down of assets such as railways and department and use it for some other purpose. courthouses. A whole range of DPI offices, with about 700 personnel, were closed. All of We saw this tax in the time of Mr De Lacy. that was done in the interests of economic This tax will suit the Premier, Mr Beattie, who next year will say, "We've got all this money to rationalism. For a long time rural and regional build Lang Park", or for another of the Queensland was affected deeply. We were Premier's schemes. This year there was a trying to put that back together. However, I massive increase of 41% in the budget of the now fear that the same thing will occur again. Department of the Premier and Cabinet. The That was all but confirmed by officers at the Estimates hearings when we questioned them Government will have all of this money, but about assets. Without a doubt this is an assets where will it be coming from? The money to tax. It is a charge on all infrastructure and pay for these fancy plans will be coming out of assets. During the Estimates hearings, I the recurrent budget of the Police Service, the asked— Health Department and every other department. This is nothing other than a tax. It "I understand how it works. The main is a dishonest way of presenting the Budget. thing is, as you have answered, you are Why did the Government not just present the looking for properties to dispose of?" Budget and reduce the budgets of the The answer from the departmental officer was, departments? Instead the Government is "That is correct." They are now going around going through this tricky manoeuvre whereby, the State and examining all of their for example, the Police Service will be told it is infrastructure to see what they can sell off. getting $900m, when in reality it will be getting That has been admitted. We are told by the only $894.5m, because $5.5m will be taken Minister, "We won't sell anything viable and out at 9 o'clock on the first morning of the new worth while. We'll sell anything that's not." financial year. Most assets are viable and worth while. The This is a dishonest system. It is smoke fact is that some of those assets will have to and mirrors. It is economic rationalism gone be sold off. That is a tragedy. We have seen it absolutely mad. It shows no degree of all before in other States. We have heard confidence whatsoever in the managerial about Cain in Victoria. We get sick of hearing ability of the senior executives of departments. that. Nevertheless, we must never forget the This State is being subjected to the greatest lessons of history. When Labor Governments con trick of all time. Next year the Budget will come to power and they start up, as the be brought down and the funding allocated to member for Toowoomba South said, with their the departments will not be what they actually fancy smoke and mirrors and witchdoctor-type receive. The amount they will actually get will tricks, such as this one, it is the people of the be the funding allocation less the assets tax. State who pay the price. This is a dishonest way to present a Budget. It is typical of the Beattie Labor Government. It What members of the public and likes to use fancy terms and to present the big members of this Parliament want is to be able picture, similar to what we saw with respect to to understand what the Budget is all about the RFA. But when it gets down to what and where the money is going. It does not happens to individuals, we see that it is all have to be difficult. One does not have to be smoke and mirrors. Einstein to understand budgeting, but the trickery that goes on in this place sometimes Time expired. makes it extremely difficult even for Ministers Mr COOPER: I, too, support the and members to understand the Budget. If amendment. I think we are doing the they cannot understand the Budget, how on 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4545 earth can the poor people out there in rural glaring example. The cuts have already and regional Queensland understand it? They started, and they will continue. We will certainly have no hope. They will just feel the adverse be reminding members in this place as those effects of cutbacks, and the cutbacks will cuts and asset sales start to unfold, and they come. will. That is the tragic part of it. I do not know As I have said, I think it is tragic that we why the members opposite had to go about it see a deficit in this Budget of $1.235 billion. It this way. As far as I am concerned, this is absolutely astounding that so little has been Government has its priorities all wrong. made of that, because that is the sort of thing There has also been underspending in that I thought we had got away from. I thought regard to the development of the fishing that we were making sure that our Budgets industry, which is an industry of major balanced. Queensland had a reputation for importance in this State. Despite all the talk that over the years. It should be sacrosanct. It about enforcing and upholding the fishing should not be able to be tampered with. Yet industry regulations, we see major reductions here we go on the roller coaster. The members in vessel replacement. The Minister is making opposite come into Government, they spend an absolute mockery of the words that he like mad and start up crazy operations such as used when he said that he was going to this, and it is left to subsequent Governments uphold and enforce fisheries regulations when to put things right again. he does not give his officers the money to do No matter what honourable members it. think of him—he might have been a I think this equity tax, of which we have loudmouth, a mug lair—Kennett at least already heard a lot and about which we are started to put Victoria back on the rails after a going to hear a lot more, was explained very dreadful period during the Cain and Kirner clearly by the member for Toowoomba South. regimes. As I said, it is the sort of thing that Ministers Mr Hamill: That was one of the nicest are going to have to understand because they things anyone has said about him in the last are going to be in for an awful shock in the few weeks. not-too-distant future—in the months that lie ahead. I know what it is like to be a Minister Mr COOPER: The Treasurer knows how when departmental heads— bad those times were in that State. All I am saying is that this Government should not Mr Mickel: Unfortunately, so do we. head down that track, because sooner or later Mr COOPER: The member opposite is someone will have to pay the price. Mr Hamill not a Minister. Once upon a time I would say, will be remembered as the Treasurer who "Yes, I think you have the potential to be one", started off with a shocking Budget deficit and so he should sit back and listen to what he then introduced this assets tax that is going to might be in for if ever he does get there. It can cripple departments, especially departments be extremely difficult when a Minister tells his such as the Department of Primary Industries. departmental head that he wants to do It has already been admitted that the search is something. If he travels around the State he on for assets that can be disposed of to gets a pretty fair indication of what people out account for the $11.3m in equity tax—assets there want. If he comes back and says to his tax—that the DPI will have to find. That is a lot departmental head, "I would like to start of money. The Minister's own Budget papers working up some priorities on this or that show that there has been a $26.6m reduction particular project", the first thing that is said to in the Primary Industries budget. What sort of him is, "Minister, we do not have the funding. a message does that send? I heard members You get us the funding and then we can saying earlier what a great fellow the Minister implement what you would like to do." The is, yet he cannot even maintain the level of member knows darned well that he would not funding in his own budget. have a chance. He would have a snowball's The people of Queensland are going to chance in hell of actually doing it. be the ones who will suffer. It is tragic. We are What Treasury and the Treasurer are seeing examples of it already in the beef doing in introducing this tax is crippling the industry. Staff numbers were cut from 216 ability of Ministers to operate properly and down to 205. When I raised that issue at the provide services around the State—the very Estimates hearings, the response was, "What thing that people want and need. That is the is 11 people? That does not really matter. You very first thing that people out there will say do not understand the beef industry." A cut is that they want—help from the Public Service. a cut is a cut. We were told that there would That is very, very difficult to provide when the be no cuts to staff, yet here we have one funding is cut off. 4546 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999

Earlier in this debate the Minister the Gulf of Carpentaria. It is caused by the mentioned the Agency for Food and Fibre lowering of salinity by more fresh water Sciences. The concern is that, although the discharge and turbulence, which stimulates the Government is going to be short of money, it is migration of juvenile banana prawns from their placing another two layers of bureaucracy over nursery habitats in creeks and rivers. the institutes. We know and he knows how Although river discharge has been valuable the institutes have been. We think recognised as contributing to the high they will be affected adversely. We are going productivity of estuaries, the extent and to make sure that they are not. I can see it magnitude of river regulation throughout the coming now: by loading that particular section world is enormous. At the current rate of dam of the department with another two layers of construction throughout the world it has been bureaucracy, the Minister is going to make it estimated that more than two-thirds stream extremely difficult for the institutes to operate. flow will be regulated by the year 2000. There It is the sort of thing that they simply do not are 375 dams in Australia. These structures need. reduce water discharge and change the The job of a Government is to get seasonal pattern of flow. Very rarely have the services out to the people, not stymie them by ecological needs of the downstream estuaries adding more and more layers of bureaucracy and coastal zones been considered. There are and that, I am afraid, is what we are going to several reasons for this. Firstly, there seems to see and that is what the people are going to be a genuine lack of interest in following up get. The figures in the Budget prove it. I think the impacts of major river projects, particularly that is a tragedy, because this State has been downstream of the impact; secondly, the areas in a very, very good financial position over downstream from the impact are often out of many years. The Borbidge Government the jurisdiction of the agency responsible for maintained that good financial position, but regulating water flow; thirdly, the funding now this Government has set us on the path agencies for fresh water and marine research that we have seen followed by southern are separate bodies; and, fourthly, there is States. That is the last thing I ever thought we often little interaction between these two would see in this State. bodies in managing the waterways. Mr TURNER: In speaking to the It is still seen that water going to sea is amendment, I point out that I am concerned wasted, but this is not true. Dams cause major about the equity tax and its effect on services repercussions to our environment and to Queensland and its potential impact on industries that rely on free-flowing river water resources programs and environmental systems. Timing and magnitude of river flow is studies. River discharge has an important having a far reaching influence on many effect on the physical and biological commercially important species found in characteristics of estuaries and inshore waters. estuaries. Interrupting the flow of rivers is River discharge greatly affects the abundance detrimental to all marine life. This translates to of fish and crustaceans and can determine a real economic cost to commercial and whether the mouth of an estuary is closed or recreational fishers and should be weighed open and available for breeding and migration against the economic benefits of water of fish. The number of species and the storage. composition of fish communities is influenced I suggest that all flow regulation projects by salinity from the estuary mouth and the on coastal rivers must consider the enormous condition of the entrance channel. repercussions of their actions on the Mangroves and salt marshes provide downstream estuaries and coastal waters. I critical habitats for the juvenile stages of many suggest that the Department of Natural fish and crustaceans. Nitrogen and Resources and the Department of Primary phosphorous carried through the river system Industries make funds available to study the stimulate photoplankton and microalgae natural river flow of the river systems currently production, important primary sources in being controlled. I further suggest that these coastal food webs. River flow affects the departments use that information to imitate as community structure of fish and their food closely as possible the natural emissions of webs in estuarine systems. Catches of every regulated river system in Queensland. plankton feeding fish are greatly reduced Miss SIMPSON: I rise to support the where river systems are controlled. Opposition's amendment, which seeks to Over a 25-year period it was noted that remove the equity return—this most wicked there was a high correlation between the assets tax—from this appropriation legislation. catches of banana prawns and high rainfall in I need to draw the attention of the Chamber to 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4547 the hypocrisy of the Labor Government. It There is another impact in relation to beats its breast about how terrible National other assets that have increased in value. I Competition Policy is—I agree that NCP has give as an example the prime real estate at horns and that there are many things that Herston or the public land on which Noosa need to be altered—but here it has a policy Hospital is situated. While it is under lease to a which is far worse than National Competition private provider, the assets are publicly owned. Policy in its potential impact on rural and I also refer to the Robina site. Anywhere there regional Queensland. is an asset which will increase in value, This policy has no public interest test. pressure is placed on the other assets, and There was no consultation with the ways those assets can be flogged off are communities that will see their assets—their sought. social infrastructure, their rural We have this iniquitous situation of a hospitals—downgraded by stealth. The property market being able to drive a wedge Government will not spend the money to into the operational budgets of State upgrade them, because every upgrade will infrastructure. I cannot understand how a mean a 6% tax on that improvement. The Labor Government could actually introduce a Government will be pressing to downgrade commercial return upon the very infrastructure and sell off a range of rural hospitals and that Queenslanders have already paid for, or clinics. The people affected were not consulted will be paying for into the future with their about the implementation across Government taxes, with the expectation that certain social of a tax designed to give a return to Treasury infrastructure will be provided for them. from the capped operational base of the social What hospitals will be closed? I have provision portfolios. already mentioned a few of the country Let us look at the Health portfolio. One hospitals that are already under threat and cannot get a commercial return on a morgue. under review. What about other hospitals that One cannot get a commercial return on a will never be upgraded to the extent that they hospital. How on earth is the Government need to be into the future? Already the Cairns going to get a commercial return on a dental Hospital, a major regional hospital, has had clinic which is providing social services to local some 27 medical beds closed. Those opposite people? Yet that is what this Labor were boasting, saying, "We will treat those Government has sought to do. It is incredible potential patients with day procedures." I can to think that the Labor Government whinges tell members opposite now: not all medical and goes on about National Competition patients can be treated by day procedures. Policy—it is a little late in the day for that—yet This is a regional hospital dealing with people has now come up with a policy for a 6% tax on who may have had a long way to travel. Those every piece of infrastructure in this State that is people cannot be stepped down into the valued over $5,000. community. There are no alternative facilities. Sometimes people have to travel for days to The bureaucrats from Brisbane say to get to that major regional hospital, yet this their weak Health Minister, "Look at Nanango Government is saying, "It's not important. Let's Hospital—or Wondai or Gayndah or Yeppoon throw them out into the community." or Eidsvold." We could name a number of country hospitals around Queensland. They This is an example of the way the will never again see any upgrade. I know that Government has driven this whole Budget. It is in certain areas these bureaucrats have said to back to the economic rationalists who do not local people, "This hospital is marginal. Only so understand the nature of a decentralised many people are using the services here. I State—the nature of a State that must provide don't think we really need this hospital." But social infrastructure to communities that will not the people know that those hospitals are have the same number of people using anchoring the very health infrastructure of facilities as in Brisbane or in other highly those communities and are maintaining the populated urban centres. These places have presence of health professionals. But that requirements that are different from those in does not matter to the economic rationalists Brisbane. who believe that services can be centralised The people who make these decisions sit and that those people do not deserve some in their ivory towers, collecting their record sort of consideration. This policy has no public salaries that have increased under this Labor interest test. This policy will be implemented by Government, and they forget that these stealth. People will find that bits and pieces of people have a right to a say. These people the State's infrastructure are flogged off have a right to be consulted when their assets without consideration. are being sold off. The Government is selling 4548 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 off the very things that people in this State 1996, is the report that the Borbidge/Sheldon fought for—the very services that they expect Government caused to be produced. It was and that are pivotal to the continued existence chaired by Vince FitzGerald, and the other of their communities. commissioners were Commissioners As I said before, National Competition McDonough, Carmichael and Thornton. Policy has nothing on the assets tax that this Recommendation 3.7 of that report Labor Government has introduced— stated— mortgaging the social infrastructure and the "The Government should allocate future of this State. Every Labor member existing and new capital to Government should hang their head in shame. I am departments and agencies and make all surprised that this ever got through Cabinet. departments and agencies subject to an Obviously Cabinet Ministers were asleep on asset usage charge regime as part of the job, they did not understand it or they did budgeting for the provision of service not care what impact this would have across outputs through service agreements or Queensland. contracts." Mr HAMILL: If I were seeking to raise That concept was fulsomely embraced by the additional revenue through this Budget, I then Premier, the present Leader of the probably could have levied a cliche tax on the Opposition, and the then Treasurer, the member for Maroochydore. I would have member for Caloundra, in the long awaited made a motser! document called the State Strategic Plan The rhetoric we have been showered with 1997-2007. I presume the Leader of the this afternoon is just that—rhetoric—and hollow Opposition remembers it. rhetoric at that. A series of speakers from the Mr Borbidge: You're drawing a rather Opposition have spoken in support of the longbow. amendment moved by the Leader of the Mr HAMILL: When it was actually Opposition. The only telling comments in the endorsed by the coalition Cabinet, the coalition debate until now were the comments made by Cabinet embraced this concept that systems the member for Gladstone, who actually and incentives would be introduced for the understands the import of the Opposition efficient management of capital under the amendment, even if the Leader of the control of Government agencies. Opposition and the shadow Treasurer do not. I will come to that in a little more detail later. Mr Borbidge: So we introduced it. That's news. It's all our fault! There seems to be a fundamental misunderstanding—maybe it is just an Mr HAMILL: This is the document that the intentional ignorance—on the part of the Leader of the Opposition signed. This is his Opposition as to what the equity return is all very document. But I know that the Leader of about. Contrary to the repeated claim that it is the Opposition suffers selective amnesia, and somehow a tax and an impost on he suffers it here again this afternoon. departments, the facts show quite clearly that Perhaps I might try to assist his recollection of it is not. these sorts of matters. Under the coalition Government, the incentive to manage capital Mr Borbidge: What is it? was in fact applied in one department and one Mr HAMILL: I am glad that the Leader of department only. Of course, that was the the Opposition has finally asked. Hopefully Health Department, under the then Minister for now he will be able to come out of the pool of Health, the member for Toowoomba South. ignorance in which he has been wallowing and Mr Borbidge: You opposed it. understand exactly the concept that is the Mr HAMILL: Yes, we did oppose the equity return. If he does not understand it, the capital charge which was being meted out on suggestion can be made that when he was the Health Department, because the capital the Premier he did not understand the very documentation to which he actually added his charge that was being meted out on the name. Health Department was quite unlike the equity return. The capital charge that was being The concept of the equity return had its meted out on the Health Department was to genesis in the change to accrual accounting. It be a payment that was coming straight out of had its genesis in Queensland in the the operating budget of the Health Commission of Audit report, which the Department to pay for the new capital which Borbidge/Sheldon Government commissioned was being added to that department. In fact, upon taking office in Queensland in 1996. The in my Budget last year I did away with the Commission of Audit report, dated 30 June iniquitous capital charge which the 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4549

Borbidge/Sheldon Government imposed upon appropriation made to the department in health services in this State. respect of those assets. Miss Simpson interjected. Dr Watson: That's not what you said Mr HAMILL: I think it passing strange that before. the new Health spokesperson for the Mr HAMILL: When have I said otherwise? Opposition could close her eyes and shut her I have never said otherwise. ears to the fact that it was the Government of Mr Horan interjected. which she was a part that tried to levy an iniquitous capital charge upon health services. Mr HAMILL: Again, the perpetrator of the iniquitous hospital capital charge seeks to Miss SIMPSON: I rise to a point of order. interject. He should be ashamed of himself. He The Treasurer is misleading the Committee. was prepared to slash the operating budgets Could he explain when this charge is coming of hospitals to pay the iniquitous National Party into implementation? inspired hospital capital charge. The CHAIRMAN: Order! There is no point Mr Borbidge interjected. of order. Mr HAMILL: No, there is no tax on roads Miss SIMPSON: That was to fund $1.3 and tax on schools and tax on hospital beds, billion of unfunded promises of a Labor or anything else for that matter. What is there, Government. It was not on every asset in the through the equity return, is an incentive to State. He has doubled that. departments to look at their capital assets and The CHAIRMAN: Order! There is no point their use. And if a department chooses to do of order. The member will resume her seat. nothing, all that department has to do then is There is no point of order, and she knows it. to repay the 6% value on the capital assets which has been added to its budget and pay it Mr HAMILL: Is it not interesting that a back over the course of the year, and it does capital charge that was levied on health not need to do anything at all with its particular services was fine if the National Party put it in departmental assets. place? But what members opposite object to is a concept whereby all departmental budgets Mr Horan: Exactly. That's what we've said are increased to the value of 6% of the net all along. They're going to pay 6% tax on the controlled assets of the department. In all of increase in the net assets unless they flog off the discussion, and in all of the ranting and an equivalent amount in capital. raving and rhetoric that we have had this Mr HAMILL: Unfortunately, the member afternoon, there was something which was for Toowoomba South cannot see past his forgotten, and that was that it is not an equity own hospital capital charge. What the member tax, simply taking money from departments; for Toowoomba South is in fact describing is the equity return is in fact balanced by a the way in which his Government's hospital payment to departments. Of what magnitude? capital charge worked. He does not have the Of the magnitude of the equity return! wit to understand that the equity return is something very, very different indeed. Mr Horan: This year. This leads me to the amendment that has Mr Borbidge: This year. been put forward by the Leader of the Mr HAMILL: Every year. This is where the Opposition. For the benefit of all honourable Leader of the Opposition again chooses to be members, I ask them to think about this. The selective—this time not with his memory but Leader of the Opposition has form. This is the with the truth. He is selective with the truth. In Leader of the Opposition who has led the fact, only rarely, if ever, does he select the coalition to defeat not once, not twice, but truth as his course of action. three times in a row, and at the rate he is What is being done is that into the going he will do it again—that is, of course, if Forward Estimates has been factored the they leave him there long enough to give him equity return. The appropriations in the the chance to lead them to defeat four times Forward Estimates reflect the 6% of the value in a row. But this would be the import of the of the net controlled assets of the Opposition's amendment. Allow me to read departments. And contrary to the very false the clause with the words that the Opposition and mischievous claims being made by a has proposed inserted. It would read as series of speakers from the Opposition, if a follows— department increases the value of its assets, "The Treasurer is authorised to pay then obviously the equity return increases, but $17,963,032,000 less the total amount the equity return is matched by the relating to equity returns for departments 4550 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999

from the Consolidated Fund to here, and the money is $1.8 billion which the departments, as itemised in Schedule 1 Opposition wants to knock off the for the financial year starting 1 July 1999." appropriations. I assume that members opposite have no I am quite comfortable about going objection to that. That would be the amended outside the Chamber and telling people that clause if the Committee was foolish enough to the Opposition wants to slash the Health vote for it. But what would that mean? It would budget, slash the Families budget, slash the mean that the appropriation made available to Education budget, slash the Primary Industries Government departments this year would in budget, slash the Natural Resources budget fact not be the $17.9 billion—no, no, no. In and slash every other budget. I wonder how fact, it would be a sum of just a little over $16 far the courage of those opposite will extend billion. So members opposite propose to cut when they go outside and tell the public that $1.8 billion off departmental appropriations. they were prepared to do that. The What a very clever little Opposition they are! amendment is nonsense and does not What intelligence dreamed up this deserve any support whatsoever on the floor amendment? of the Chamber. A Government member: Gooses. Mr BORBIDGE: We have just heard a Mr HAMILL: Geese? lamentable and pathetic explanation from a Ms Bligh: Dangerously stupid geese. person who is not up to the job. Let us very simply go through how the Treasurer deals Mr HAMILL: Have a gander at them! For with the amendment that we have moved. goodness' sake! What intellect put forward an Does the Treasurer know how to do it? It is a amendment which suggests that the way to simple matter of setting the equity return at deal with the equity return is to slash almost $2 zero—a simple administrative decision which billion off departmental budgets? Members the Treasurer is not prepared to take. The opposite should be ashamed of themselves. equity return is set at zero and there is no Dr Watson interjected. impact in respect of the Budget. A Mr HAMILL: As for the erstwhile professor kindergarten dunce would know that; a of commerce, do not tell me he dreamed this Rhodes Scholar should. If a Rhodes Scholar up! I would have expected better from him. I does not know that, one has to ask how he would have thought he would have ever received that award. understood the concept. Then again, I have The Treasurer knows, because what we been disappointed before and I guess I will be have seen in this pitiful explanation from the disappointed again with the calibre of the Treasurer is a lamentable litany of excuses Opposition which faces us across this based on the Beattie doctrine of it always Chamber. being someone else's fault. The Treasurer There are some technical problems came in here and, in response to our concerns associated with this amendment if the about cutbacks, he told us, "The Commission Committee was foolish enough to support it. of Audit made me do it." This is the The term "equity returns" is unknown to the Commission of Audit that the Treasurer legislation. It is unknown to the Financial attacked and criticised as shadow Treasurer Administration and Audit Act. All the when he sat on the Opposition benches. The Opposition is doing with this amendment is reality is that the Commission of Audit made a reducing the appropriation. I think it would be a number of recommendations which were not very interesting exercise for the Opposition to accepted by the previous coalition go out on the hustings and say to people, "We Government. Shortly, my colleague the want to slash $2 billion from departmental member for Merrimac will enlighten the budgets." I think the Opposition deserves a Treasurer a little further about admissions from round of applause—if we could ever find an the Public Service in respect of the timing and audience who would be prepared to applaud the working up of these particular proposals. such arrant nonsense from the Opposition. Let me also enlighten the Treasurer on a The nonsense peddled by the Opposition couple of other aspects. I refer to various is apparent to all. The member for Gladstone serious contradictions which raise the question asked a question which I thought was posed as to whether the Treasurer has misled the more to the mover and seconder of the Parliament today. I believe that the Treasurer amendment. She asked how it would work. was not at the Treasury briefing for his Budget The member for Gladstone did not receive a this year. He was sidelined. In response to response. The fact of the matter is that the questions from members of Parliament, the member for Gladstone was on the money Deputy Under Treasurer confirmed to 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4551 members attending the Treasury briefing that share it around, the Treasurer mentioned that this particular equity return is unfunded from it came out of the State audit which the next year. That statement was made at the coalition put in place when it assumed office in formal briefing from Treasury officers. 1996. Mr Horan: The Treasurer confirmed as The fact is that the audit recommended a much in his own speech—in his own words. number of broad-ranging approaches, but it Mr BORBIDGE: He virtually confirmed it, did not recommend an equity return. Those as the member for Toowoomba South says. details were finalised later on. When I put a That was the answer given by a senior officer question to one of the public servants at the of the Treasury at the formal Treasury briefing Estimates committee hearing in relation to the for members of Parliament. The Treasurer was Department of Education, part of the reply was not there. He did not know. I would have as follows— thought that, after all the trouble the Treasurer "The incentives introduced under the got into this year, he would have made a few management for outcomes were actually inquiries about what was going on when he developed over the period of May 1998 to went back to his office. March 1999." The other incredible rewriting of political The suite of incentives included the sale of history that we had from the member for land and a couple of other minor things as well Ipswich today related to the capital charge that as the equity return. It was developed within was in place during the tenure of the member that time frame. If the Treasurer's memory is for Toowoomba South as Minister for Health. as good as mine, he will recall that the election There was a capital charge in place. Do was called halfway through May 1998. If we go honourable members know why? When the back to the first week of May 1998, we find member for Toowoomba South became that this side of the Chamber had two weeks in Minister for Health there was $1.2 billion in which to put this in place—namely from 1 May unfunded capital works promised by the to halfway through May. The Government had member for Brisbane Central, who is now the from halfway through May right through to the Premier. During his 100 days of listening he end of March 1999. had been all around the State and he had Do honourable members realise whose been promising new hospitals and new works. baby this is? This is not our good idea, as the We had $1.2 billion unfunded. Treasurer likes to say; this is the Treasurer's Mr Horan: The week after Mundingburra own good idea! If it is such a good idea for the he went up and down the State and doubled State schools of Queensland, why not share it everything. with the other education sectors? Why not allow the non-Government schools to Mr BORBIDGE: That is right. The week participate in this and have the benefits of the after Mundingburra he went around the State equity return? I do not see them knocking and doubled everything, as the member for down the Government's doors and asking to Toowoomba South said. That capital charge be included in the equity return. The private was introduced for the purpose of funding sector receives capital funds and recurrent now-Premier Beattie's unfunded commitments funds from the Government. Why put them at for the Health capital works program across a disadvantage to the State school system if it Queensland. is such a good idea? We honoured those commitments of the What about the creches and current Premier, even if he was incapable of kindergartens? They get recurrent funding. doing so. I would have thought that the They get capital funding as well. I have not Parliament would have received a decent seen them beating a path to the Treasurer's explanation from the Treasurer this afternoon. office asking to be included in the equity Instead, we have had a further demonstration return. What about the universities? They get of the Treasurer's incompetence. He does not capital funding as well. They have not knocked even know what his officers told Government down the Treasurer's door saying that they and non-Government members at the want to be included. This applies only to Treasury briefing. controlled funds, that is, the State school Mr QUINN: The Treasurer obviously thinks system, and not administered funds that go to that this equity return is such a good idea that the non-Government sector. As I said, the he wishes to share the responsibility with this question has to be asked: if it is such a good side of the Chamber. I can tell the Treasurer idea, why not apply it to all educational that we want no part of it, even though he institutions and allow them to share in the thinks it is such a great idea. In his effort to benefits, if there are benefits? The reason is 4552 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 that the other sectors know that it is a tax on more importantly, we have to take into account assets and they do not want any part of it. the educational implications for the kids They know what it is really all about. attending those schools. The Minister cannot In respect of the Department of simply argue that he needs to close the Education, the public servants made some schools on economic grounds; the decision other critical comments about it. How is the has to be based on what is best for the kids at Education Department going to fund its equity the school. As I said, this measure will put return costs? Through the sale of extra land? increasing pressure on the department to go Through the efficient use of capital assets? through its asset base of existing schools with This is the answer that one of the public a view to amalgamations and closures. The servants gave to the Estimates committee— largest percentage of students, parents and teachers who will be affected by such a move "... I think over a period of several years, are those in the metropolitan area. As I said, the approach of close scrutiny of our already we have seen the first example of this asset base to ensure that, for example, occurring. surplus land is not maintained. As you would probably recall"— As I said, this is not a coalition initiative. Its genesis lies on Labor's side of the and I was the Minister at the time— Chamber. It came about after the election "land that would have been surplus to our campaign. The coalition has had no part in it. requirements comes under heavy scrutiny It is not ours; we do not wish to put our so that we do not actually have a land signature to it. Despite the benefits that the bank of any description." Treasurer seems to think that there are in the measure, the coalition does not believe that They have no surplus, non-usable land, except that is the case. The coalition believes that it that land required for the construction of will have negative impacts, and it will be schools in the foreseeable future. All the opposing it. redundant land, all the excess land that has proven to be of no use, has been disposed of Mr HORAN: I am so pleased that the over a period. So if the Education Department Treasurer responded, because he has is going to realise any benefits from the equity confirmed all that we knew was happening with return, its only option is to reduce the capital this assets tax. Most of us attended the base of existing schools and make the briefing by Treasury. I well remember that, savings. The department does not have the once we started questioning and receiving luxury of a land bank it can dispose of to accurate and honest answers from Treasury, generate some efficiencies to pay the equity the chairman of the meeting, the member for return. So we will see a closer scrutiny of Sandgate, wanted to shut down the meeting. schools with the idea that savings can be He said, "Time to go. Lunch is over." made by amalgamating schools or putting in a The Treasurer started off trying to blame single principal to oversee a number of the coalition—and my colleague the shadow campuses so that down the track the schools Minister for Education has shown very could amalgamate on one site, which would accurately that this little baby belongs right in ultimately lead to the closing of schools. the Labor Party basket—but then he went on During the debate on the Appropriation to say that we were all wrong, that we did not Bills, I said that the pressure will not be on the know what we were talking about, and that this small country schools. Compared to the large was an in and out thing: the money was metropolitan schools, they are peanuts. If coming in and then it was going out. We know members opposite believe that we are upset that that is what is happening this financial about the reduction in services in the country, year. they are right. However, the major impact of Mr Hamill: And next year. this measure will be in metropolitan areas Mr HORAN: That is where the Treasurer is where there are large schools and where the wrong. It does not happen in the next financial price of land is high. We have seen it already. year. I will tell the Treasurer why. Although the The department is moving to close the Oxley Treasurer tried to con us by saying that it is in Secondary College. Other school communities and out—and we know that it is for this year in the major metropolitan areas will come but not for next year because Treasury officials under similar pressure because of this tax. told us so at the Treasury briefing—the Undoubtedly, the Minister will argue that it Treasurer then went on to say something like, is a good idea to start closing inner-city schools "If they manage their assets and so forth, they if they are not using their asset base correctly. will get the repayment" and then, "but if the There is some validity in that argument. But department does nothing, they repay 6% of 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4553 that added capital throughout the year." The I say again: in his speech the Treasurer Treasurer confirmed it. It is in Hansard. For confirmed that this is what is happening. example, if the Police Service with a net Treasury officials confirmed that as well at the increase in assets of $91m does not sell off briefing. Nothing could be clearer. The $91m worth of assets, then it is up for 6% of Treasurer should not try to tell us that, by $91m. If that department does not sell off charging departments 100% and then giving valued assets such as a horse paddock out back 100%, he is offering them an incentive. the back of Quilpie, then it is up for this 6% Business does not work that way. This is a assets tax. direct assets tax payable out of recurrent It is quite clear to the coalition, and was expenditure. made quite clear to us by Treasury officials, Mrs LIZ CUNNINGHAM: I thank the that this is funded only for this year—for the Minister for his kind words earlier. I might blot totality of the assets up until 30 June 1999. that copybook with the questions that I have to They were valued on 17 May. Any increase in ask him now. net asset value will be subject to a 6% asset I disagree with the member for Merrimac, tax. The only way Ministers can reduce the who is expecting that the attention and the totality of that tax that their departments pay is focus will be on assets that will be sold in the by selling off assets so as to reduce the net city area. Historically, that does not occur. The asset value. assets are sold in the country, because there If it was not done that way, why on earth are fewer votes and there is less kick in the would there be an in and out system? Does country. We end up with fewer assets. We end the Treasurer reckon that this is some sort of up with people having to travel further to get to incentive or disincentive? Why would there be health and education facilities, or whatever it is. Therefore, I find it really difficult to accept an incentive whereby 100% comes in and that argument. 100% goes out? That is no incentive or disincentive for a department to manage The Treasurer said that the genesis of this assets whatsoever. When it comes to being 6% equity return was in accrual accounting. I Treasurer, the Minister is an absolute fool. I will am yet to be convinced of that. It is not repeat the Treasurer's own words. He said, "If integral to the principles of accrual accounting. the department does nothing, they repay 6% Unless I can understand it more clearly, I of that added capital throughout the year." I believe that it is often introduced when accrual will repeat the example of the Police Service: it accounting comes in because—and this is my has an increase in net assets of $91m and if it cynical belief—there is so much to be learnt does not sell off $91m worth of assets, then it when the process is changed from a cash will have a net increase of $91m and it will base to an accrual base. The learning curve is have to pay 6% on it. so steep that it is easy to slip a new tax or a new responsibility into the system. At that time, My colleague the shadow Education it is fairly easy to add another element to the Minister has said that, when it comes to process. assets, there is no more meat to cut off the As far as the FitzGerald audit report is bone. He knows that any assets that the concerned, that report was absolutely Education Department has are required for the abominable. FitzGerald recommended that the future. I know that any land that the Police State sell off anything that was not nailed Service holds is earmarked for future police down. I do not see that there is a lot of stations. They certainly do not want to sell off credibility at all in the FitzGerald report. their police stations to try to reduce the increase in the net asset values so that they The Treasurer said that there was a $1.8 pay less tax. billion appropriation in the Bill that was directly attributed to the equity return. He rightly said The Treasurer has applied a formula to that the two amendments were intended to, capital, which means that a tax has to be paid firstly, take the appropriation from Treasury and it has to be paid out of the recurrent part down to the departments, which would be of the budget. As the shadow Education reduced by $1.8 billion; and, secondly, reduce Minister said, this tax applies only to the dispersion within the departments by $1.8 Government departments. I ask members to billion. The Treasurer asserted that if this goes imagine the hue and cry if Catholic Education through, the departments will be $1.8 billion built more convent schools and increased their better off. I would have thought that that $1.8 net asset value and then had to find out of billion would have had to have been isolated their recurrent budget 6% of the increase of as recurrent funding to cover the 6% the net asset value. obligation. Therefore, that money is not going 4554 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 to be available to the departments for nothing to do with accrual accounting either. disbursement generally, such as on This is the Treasurer's own little tax. It is operational capital works. It will have to be nobody else's tax. He tried to blame this side isolated within each department's funds for the of the Chamber and that argument has fallen equity return. If that is not the case, I would apart. This Treasurer has brought in a record appreciate a response from the Treasurer. Budget deficit of $1,235m and a new tax, and I have asked previously: if the equity now he is trying to blame everybody else for return dollars are removed from this Budget that. and the obligation is not removed from the The member for Gladstone and the Budget, would that leave the departments in member for Merrimac are quite right when they an untenable position? If the dollars are talk about the loss of assets and the closure of removed, that is, both from Treasury down to schools, police stations, hospitals and hospital the departments and from the departments' beds across the State. That is what will dispersion, is it true that the principle of the happen. Both members outlined a number of equity return is a policy principle only? It is not situations that we will see arise, not just in in the Appropriation Bill and, therefore, that metropolitan Brisbane but right around obligation could be removed administratively. Queensland. The Education Department is The Treasurer's answer relating to the top- already getting organised for it. The member up was the first time that I have heard that for Merrimac mentioned that it is trying to do point being made. Until that statement was away with principals, amalgamate campuses, made, I had not been able to get a response put one principal in charge of several on the question of the availability of a top-up campuses and so on. This is what it is all to departments when their built assets and about, and the Treasurer knows it full well. I land assets escalate in value, which is what we have never heard such illogical nonsense in would expect to happen. Valuations on my life. property and buildings escalate or appreciate Where is the efficiency in bringing money over time. Today is the first time that I have in with one hand and handing it out with the heard that there is going to be a top-up other? Perhaps Bill Ludwig has not heard included in each budget for the escalation of about this one yet. Of course, I am reminded those valuations. However, if departments are that former Treasurer De Lacy had a beaut to be required to dispose of assets, how will idea, too. We all remember the local that obligation be brought into play when, in government performance dividend. the past, departments that acquired land for An Opposition member: It was a ripper! future use bought the land at its current value knowing that it would appreciate and that the Mr BEANLAND: It was a ripper all right! It holding costs were less than the future only lasted until Bill heard about it. The purchase costs? That would be a detriment to Minister for Primary Industries can laugh! As the departments. soon as big Bill Ludwig heard about it, it went down in a screaming heap. That seemed like a I ask the Minister to clarify this issue: if a good idea at the time and this is exactly the department will be free to determine what its same thing. There must be something in the non-performing assets will be and it lists all of water that Labor Treasurers drink, because its assets as necessary to its function, who will they come up with such beaut ideas. The local determine whether that decision is right? Will it government performance dividend was a be Treasury, will it be the Treasurer or will it be nonsense and this is exactly the same. the Cabinet that will decide that the expectation of the department— For years Treasury has been trying to get a performance tax, an assets tax, a Time expired. performance dividend, a stealth tax—call it Mr BEANLAND: A little while ago we what you like—and the Treasurer has fallen for heard a lot of illogical nonsense from the it hook, line and sinker. There is always Treasurer of this State. The Treasurer is now someone who comes along that they can trying to tell us that in future years this money sucker, and they certainly got one this time. will be funded by Treasury. He says that we will Of course, members have mentioned that have it coming in with one hand and going out there is no public interest test in this at all. This with the other, yet Treasury officials told us that is a straight little sham that the Treasurer is this was not going to be the case. What would trying to blame on everyone else. He is trying be the point of doing that? When that to make out that departments will not have to argument did not stack up, the Treasurer absorb this extra charge in future years, but moved on to another illogical statement and they will. They will have to find the money from blamed accrual accounting. Of course, it has somewhere, and it will come from cuts in 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4555 services. Services in the community will be cut, return, or assets tax. I wish to approach it from not just in one part of Queensland but right a different angle. I suppose a case could be across the State. It will be felt everywhere. made, with some difficulty, that this could be I warn the people of Queensland that this helpful for static departments. With difficulty, a sham that is being conducted by the Beattie case could be made that it could be good for Government is certainly a stealth tax. There is static regions in Queensland. However, I come no question that it will be unavoidable. from a growth area. There are many growth Departments will have to find the cash, areas in Queensland—the Sunshine Coast, otherwise why do it in the first place? Why the Gold Coast, Townsville and Cairns. show any interest in it at all? There is no Members from those areas should be very purpose in it unless it is utilised in this manner. concerned about this tax, because it will hit The Treasurer is trying to blame this side of the those areas very hard. These are regions that Chamber. He has even gone back to the would have planned for their future growth and FitzGerald report and so on. We did not assets would have been put aside. What will introduce or accept this, because we knew happen? Pressure will be put on the exactly what it was about. When that departmental offices in those regions to start argument fell apart, he went on to blame unloading some of those assets. I can give accrual accounting. It is little wonder that the honourable members some examples. Treasurer almost brought down two Some areas on the Sunshine Coast will Governments and got into trouble recently. need new schools. In some cases, the land for Mr Springborg: He brought down one. those schools has been put aside. There will be pressure on the departmental offices in Mr BEANLAND: He brought down one. those areas to flog off the land for instant gain. Mr Borbidge: Trying hard to get the In order to build a school later on, they will double. have to buy land at an inflated price. I worked very hard to retain an old teacher's house at Mr BEANLAND: In racing terminology, he the Buderim Mountain State School that was is trying for the double. supposed to be sold off a couple of years ago. Mr Springborg: With the teddy bear That house at that school is being put to very tunnel. good use. Once again, there will be pressure Mr BEANLAND: Yes, with the teddy bear on the district office. The gurus in Brisbane will tunnel. He did well with the teddy bear tunnel; put pressure on district officers and will say, the member for Warwick is right. "You don't really need that teacher's house." Again, they will have to go through the process Mr Borbidge: He wishes he was in it now. of establishing the need for that school house Mr BEANLAND: That is where he will end to remain. That is disgusting. up. That is where the Government of which he At Buderim, land has been set aside for a is a part will end up if Ministers fall for this future police station. I have not been able to exercise. I can understand why they are not get a commitment for a new police station at present for this debate. They know what it is all Buderim. Therefore, there will be pressure from about. They are ashamed that they caved in Roma Street on the assistant commissioner, through the Cabinet Budget Review who will be told to consider selling that land Committee process and fell for the exercise because there are no immediate plans for a being thrust upon them. They know that at the police station at Buderim. However, we will end of the day they will have to pay for it. This need one. It might not be next year and it is illogical. It is nonsense and a smoke and might not be in five years. However, it will not mirrors trick at its best. The Treasurer can be too far down the track. After that land is explain it and slip around the place, just as his sold, which Government will have enough leader does. The Premier is very slippery. I see money to buy land at Buderim to build a police that the Treasurer is now taking on this slippery station? It will be extremely difficult to do that little exercise. No snake oil salesman tactics will in the future. work in this case. The Treasurer would have to be slipperier than a snake oil salesman to sell As the Sunshine Coast grows, we will need to move ambulance stations and fire this around Queensland, because the people stations to more appropriate areas. Some of of this State are wide awake to the con job the land for those facilities has been set aside. being perpetrated on them today. There will be pressure on those departments Mr LAMING: I appreciate the opportunity to flog off the land in order to get the to speak again about the assets tax. Other miserable 6% equity return. If they flog off the honourable members from this side have done land they might get $1m. They will get 6% on a pretty good job of dismembering this equity that money. They will be dying in their socks 4556 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 before they get their money back. In addition, Government and the former conservative they will lose the opportunity to build that Governments before that had the foresight to necessary asset. put these assets aside because they would be I will give the Chamber another example. needed in the future. We have recently set aside a CAMCOS The Government will be flogging off our corridor for a future rail and fast transport birthright if it goes ahead and puts into practice service on the Sunshine Coast. Will we have this equity return. This is a new hollow log. We any ability to get some compensation for thought Labor had emptied them all out during people who are going to be disadvantaged in the Goss years. However, it has created a new the short term? No way! Every amount of hollow log and it will empty it out the minute it compensation and every early land acquisition is created. I know the Treasurer is listening made in that transit corridor will add to the very intently to both me and the Minister for asset register and that will make it more Families— difficult for the department to keep its asset Mr Hamill: The Minister is making more value low and not miss out on its equity return. sense than you are. That will make it almost impossible for members on the Sunshine Coast to seek Mr LAMING: If that is the case, there is equity and fairness for those people who will not much hope for the Department of Families! be disappointed. Mr Hamill: I was listening to you, though. In a place such as the Sunshine Coast Mr LAMING: That is good. public housing will always be sought after. The Mr Hamill: I don't resile from my local area office is constantly looking around comment, however. for good land for future public housing. It will be told, "Don't worry about looking for it, Mr LAMING: I have only three minutes because we're not going to buy it. As a matter left, so I will have to keep moving along. I of fact, you have to flog off some of the land would like the Treasurer to tell me what other that you have already bought." The officers in States in Australia have put this into effect and Brisbane will be under pressure from Treasury whether they still have it in place. The to flog off the land. Public housing on the Treasurer might like to answer that question. Sunshine Coast will go backwards. I hope that We are told that there will be a payment the honourable members representing Cairns, back to the departments of an equal amount. I Townsville and the Gold Coast are also do not know about that. The growth areas in listening, because their areas will receive the Queensland will suffer. Where are a lot of same sort of treatment. coalition members located? In those growth We have a pilot station on the spit at areas—the Sunshine Coast and the Gold Mooloolaba which, one might say, is presently Coast! The members for Currumbin, Cairns, underutilised. I am sorry that the Minister for Barron River, Townsville, Mundingburra and Transport is not in the Chamber at the Cook will rue the day they voted for this, moment. He was in here earlier. He will be because they will spend the rest of their time in under pressure from Treasury to flog off the this Chamber, whether they are in Government pilot station. That is prime real estate—some or Opposition, asking themselves, "Why did I of the best real estate in Australia. The sale of vote for that?", because they will have flogged that asset would represent a big reduction in off the land that we will need for future growth. the assets for the Department of Transport. I An honourable member interjected. find it difficult to contain my emotion, because if it goes we will never get it back. In the future Mr LAMING: The honourable member that land at Mooloolaba would be the likely should think about this, too. Anybody in a location for the harbour master, DPI Fisheries, growth area should think about how they vote the water police and the many other services on this amendment, because they will be the that we have to have and which can only be losers. I will not take any more interjections, located near the water. What will they do? because my time is running out. They will flog it off! I want this on the record: I would like to ask the Treasurer: is he when we start talking about moving the aware of any departments that are appropriate people into that facility, all sorts of approaching him or Treasury to readjust their reasons will be given for that site being depreciation schedules so they can get in early inappropriate. Mr Chairman, do you reckon on this new form of budgeting where, instead they are lazy assets? I do not. Honourable of spreading the depreciation over the life of members on this side of the Chamber do not the asset, they bring it in early, get the money believe they are lazy assets. The former in and then cry poor mouth in five years' time coalition Government, the previous Labor for an equity injection because they have 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4557 brought it all in early? You mark my words. The knows this is true. We waited until the end of Treasurer might like to comment on whether 1998—no extension. I thought, "No, I will wait he has already been approached by some till the next Budget comes down. I will give him departments to start moving it around— the benefit of the doubt." I went to the people bringing the depreciation forward. There are and said that I would give him the benefit of three questions that I would like answered: the doubt, but not even a stone has been what about the growth areas; what about other turned. Today in Malanda there has still not States—have they put it in—and has he or been a stone turned. During this debate I have Treasury been approached by any heard arguments— departments to move forward the depreciation Mr Springborg interjected. register so that they can cry poor mouth down the track and ask for equity injections? Mr NELSON: I am sure he could have. I should have listened to the member's wisdom Mr NELSON: Essentially, what we are on this a long time ago. I stand corrected. talking about is leap of faith and it is a leap of faith I am not willing to take, considering that The point is that I have listened to the the Treasurer sitting over there is the same contributions from both sides of this Chamber Treasurer who stood in this Chamber and told on the issue of equity return. To me, it me emphatically—it is recorded in essentially comes down to a matter of trust. I Hansard—that he would this year build the do not have faith in this Government when it extensions to the manual arts block at the says to me that it is not going to close down Malanda State High School. I repeat, as I said small schools. I suppose we could even take it in my speech in the Budget debate, that that a step further. I could say, "If the Minister still has not been done. The Minister should could stand in this Chamber and guarantee read Hansard. He has a short memory. that not one single police station, not one single small school and not one single Mr HAMILL: I rise to a point of order. I Government asset"—hospital, ambulance would have thought that the responsibility for station, whatever—"in my electorate or in any school infrastructure rests with the Minister for other electorate in north Queensland was Education, not the Treasurer. going to close as a result of this"— Mr NELSON: The point is that, when I Mr Pearce: What if the P & C asks for the raised it in my speech, I said that I would like school to close down? the Budget to contain money to build that manual arts block. The Minister then came into Mr NELSON: Very few P & Cs would ask this Chamber—it is in Hansard; I implore him to for a school to be closed. This comes from the go and read it—and guaranteed that it would member for Fitzroy, who says that police do be built this year. The Minister can read it; I will not attend his Anzac Day functions. One has stand here and wait. to ask oneself a question there. The CHAIRMAN: Order! I have listened to My point remains that the Minister cannot the Minister's point of order. Unless the give those sorts of guarantees. He knows he member refers to the amendment moved by cannot. Yet again, this is the same Minister the Leader of the Opposition— who guaranteed me that that high school would be built by the end of the year and, as I Mr NELSON: I am referring directly to the said, here I am still waiting for it. amendment. The Treasurer has said that his accrual The CHAIRMAN:—which relates directly to accounting system is a system used by the Budget arrangements, I will have to sit him businesses. Far be it for me to wade into an down. accounting debate. However, did we not just Mr NELSON: I am referring directly to the sell the TAB because we could not run it as a amendment. We are talking here about business? Therefore, why are we trying to use accrual accounting and the equity return. In business accounting methods in the running of my opinion—and the people of Tablelands are a Government? That is a simple question that also saying this to me—what we are talking needs to be answered. Obviously, successive about is a leap of faith. We have to trust the Governments in this State are hopeless Government that it is not going to come back business managers because they managed to on us in the future and that we are not going sell off—I am not just talking about this State to lose our assets. I am saying that I have to but also federally—every business we own take a leap of faith with the Treasurer who said because we cannot make any money out of to me that the manual arts block would be built them. Entities such as Telstra go for a song by the end of the year. We waited until of the and then end up making billions of dollars, as end of 1998. He is squirming because he the TAB will do very soon. 4558 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999

I am not willing to make this leap of faith. work these things out? What methodology is On behalf of the people of Tablelands, I am he going to use, or is it just going to be a case not willing to bargain with their one-man police of we have to take it at face value and then stations and their small schools. They are not accept an attrition over a period of time as bargaining chips as far as I am concerned. As each of those departments is encouraged by far as I am concerned, the member for the fact that they have to pay this tax each Ipswich, who is the Treasurer in this State, year to sell off those assets and further reduce owes a debt to the people of Malanda. They services to regional areas? know that. I will continually remind them of The other question that I believe it is that. Until that school is built, anything that he incumbent on the Treasurer to answer is: why puts up in this Chamber gets the "no" vote 6%? How did he arrive at 6%? If it is simply a from me. tax that is paid in one end and paid out the Mr SEENEY: I rise to participate in this other end, as the Leader of the Opposition debate to support the amendment that has suggested, why was it not 0%? Why is it 6%? been proposed by the Leader of the Where did that figure come from? I think we Opposition, and I do so most sincerely. I do so need—and the people of rural and regional to express my concerns on behalf of my Queensland deserve—an answer to those constituents. My electorate of Callide is very particular questions. similar to the one that the member for Fitzroy The other thing that I find particularly represents, and I would have thought that he disturbing is the tendency to blame accrual would have at least been well mannered accounting. It has been something of a cop- enough to listen to what I have to say, out, if you like, that every time anybody gets because I know that most of his constituents into trouble over the presentation of this share the same concerns. It is out in these Budget, it is suddenly the fault of accrual regional electorates that we believe the effects accounting. I am beginning to wonder how of this innocuous assets tax will be felt the many people on that side of the Chamber most; it is where this tax will impact the have actually taken the trouble to come to any hardest. sort of an understanding of what accrual accounting is. There is absolutely no We cannot blame the people of rural and connection between the need for this particular regional Queensland for being somewhat assets tax and the introduction of an accrual dubious about this particular proposal, given accounting system. That contention is just that the proposal is being put up by the man absurd. who was going to shut down the entire country rail network. Remember when the present I think the member for Gladstone Treasurer was Transport Minister? There was a probably had it right in that it is an opportune proposal then to tear out every rail line west of time to introduce these things because there is the coast. The question that comes to mind so much confusion around. There is a lot of straightaway is: will those rail lines be lazy confusion about; there are a lot of new terms assets under the definition that is going to be that people have to come to grips with. used in this particular proposal? It is incumbent Nobody is really free from the experience of on the Minister when he stands up before the that steep learning curve that the member for conclusion of this debate to provide us with Gladstone talked about. some real definitions. What is a "lazy" asset? I think it is an opportune time to slip these This is a serious issue and I believe that the things in—to try to work the con, to try to con people of rural and regional Queensland need people with something that is not really what it a serious answer. They deserve a definition seems. We really have to be suspicious that from him. They deserve an indication from him that is the case with this proposal for a 6% as to what types of assets he is talking about. assets tax on every Government asset, on All that the briefing notes and the information every asset that provides the services that are that has been provided to us give as a so badly needed in my electorate. I guess it is justification for this particular assets tax is a the same in every electorate but more need to encourage departments to dispose of especially in the electorates that cover rural lazy assets. and regional Queensland. Those electorates cannot afford to lose any more Government What is a "lazy" asset? Is the Burnett services. In those electorates there has been a railway line a lazy asset? Is the Mundubbera shortage— Hospital a lazy asset? Is the Eidsvold Hospital a lazy asset? What about the Cockatoo State Time expired. School? Is that a lazy asset? How does he Progress reported. 28 Oct 1999 Minister for Mines and Energy 4559

MINISTER FOR MINES AND ENERGY had to have more megawatts quickly, it was far Mr ROWELL (Hinchinbrook—NPA) too late for good planning and far too late for (6.01 p.m.): I move— cost-effective megawatts. "That this House notes the failure of Instead of being in the box seat in relation the Minister for Mines and Energy to to power generating assets towards the end of adequately fulfil his ministerial this decade, which was where we were headed responsibility to ensure a viable future for under the clear planning of the National Party, we were in a position where prices blew out the Queensland electricity supply fantastically because we had too little good industry." base load plant and far too much intermediate The Queensland electricity supply industry and peak loading. That was a massive is facing the biggest set of challenges in its planning failure on the part of the Goss history. By the middle of 2002, the last Government and the current Minister when he remaining elements of Government control of was Mines and Energy Minister in that the industry, not just in Queensland but also in Government. We are going to literally pay for Victoria and New South Wales, will be stripped that incompetence and dithering, potentially away. From that point on, the Queensland for many years to come. The proof of the industry will be on its own in the national pudding is in the eating. electricity market and on its own in relation to Queensland entered the national the national electricity grid. In relation to the electricity market last December. The price was generating sector, the distribution sector and not the $37 per megawatt hour that the the retailing sector, we will enter the age of the Minister calculated. It was nowhere near it. It survival of the fittest. Most importantly, was $60 per megawatt hour. That blew out the consumers will be on their own. cost of tariff equalisation in Queensland for The ability of the Queensland 1998-99 from a budget estimate of $93m to Government to influence security of power $420m and probably more. That is a massive supply and to influence power prices will be miscalculation. Even that 400% increase is an gone. The tragedy for this State is that the understatement. We are told that some of the member for Mount Isa has been the Minister 1998-99 blow-out has been spread across to for Mines and Energy in some of the most this financial year, when the tariff equalisation crucial years leading to this transitional era community service obligation is estimated to which the Goss Government originally cost $259m. committed us to. The result of that The Minister reckons he is going to pay custodianship is an unmitigated disaster. for that increase out of an increased dividend The ineptness of this Minister during the on the generators. He may be able to get time he last managed this portfolio ensured away with that this year because, while the that we are now nowhere near the position retailers took a hammering in the first six that we could have been in as the competitive months of the national electricity market, the pressures start—and they have already generators obviously made a killing. But how is started. Now he is playing games and putting he going to meet the community service his head in the sand in a way that could lead obligation payments in the years ahead, to an absolute disaster in the maturing phase particularly since the old sources of revenue of the open market, particularly for household are either gone or going? The Minister will not power consumers. The Minister does not even tell us. He refused to do so again in question have a plan. He tried to put one together time this morning. He just indicates that he recently under orders from the Premier, and now supports the tariff equalisation policy the Premier threw it back at him. That occurred introduced by the National Party, which his just a few weeks ago. party opposed when it was originally introduced. Other coalition speakers in this debate will go through some of the challenges in a bit Mr McGrady: I wasn't here then. more detail. I will lay them out briefly. They are Mr ROWELL: Well, hooray. That is a frightening. The first and last concern for most welcome Labor back-flip. All we want to know Queenslanders is price. Mr McGrady long ago is how he is going to do it, given that the lost control of the price of power in this State. traditional sources of funding have either He has given us a very dysfunctional disappeared or are disappearing. generating profile that has thrown prices into chaos. In the Goss years he and his Premier Mr Elder interjected. neglected the need for new capacity for so Mr ROWELL: No, not back in the 1950s. long that by the time they worked out that we It was back in Tom Burns' day. I think the 4560 Minister for Mines and Energy 28 Oct 1999 member knows that. He is just trying to avoid market that the industry is now entering, the the issue. only generators that are going to be called The Government is apparently none the upon to come on line are the cheapest—the wiser, even after spending half a million dollars generators generating the lowest price power. last year on consultants to try to come up with The most effective generators, the most some answers. One that the Minister hints at is modern generators and the most competitive the dumping of his responsibility onto Energex generators are not inside Queensland. Our and Ergon, the distributors and the retailers. generators will be competing with the Apparently they will have to arrange their tariff generators in New South Wales and Victoria, structures to cover the equalisation principle. thanks to the hiatus and planning— The Minister will not answer that question Time expired. either. He ducked it again in question time this Mr QUINN (Merrimac—LP) (Deputy morning. Leader of the Liberal Party) (6.11 p.m.): It is The simple fact is that under the policies my pleasure to second the motion moved by that he initiated Mr McGrady will lose all the member for Hinchinbrook. One of the control—not only of retail prices but also of crucial issues on which we urgently need some new retailers entering the market. If the degree of openness and accountability from charges of Energex and Ergon have to be this Minister is the issue of price. We know that weighted to cover equalisation, then the the Government's ability to control price is now customers will simply go to another retailer. limited and that it is going to go altogether The future of tariff equalisation is one over the next three years. That, in itself, is a issue about which the Minister needs to give price of the reform process which the Minister some answers. If he is not listening, then I himself started with the former Labor Premier hope that the Premier and the Deputy Premier and with the former Labor Prime Minister, Paul are, because they need somebody in the Keating. But that does not mean that policy portfolio who is capable of developing some decisions of the Government—particularly answers and developing them pretty quickly, some very important policy issues on which it is because time is running out. making decisions right now—cannot influence prices, even in a totally competitive market in There are at least two other massive the future. I refer in particular to the future of issues for taxpayers that this Minister seems to the State's generating profile, which is entering be totally ignorant of as he blunders around a period of intense development and change. his portfolio with all the style and aplomb that Callide C is under construction, Millmerran has he showed us from 1992 to 1996. One is the been approved and Kogan Creek awaits threats to which taxpayers have been exposed approval—all major coal-fired plant, 2,500 by the role of Energex and Ergon acting as megawatts worth, and a quantum leap in our aggregators for the Chevron gas project. I am generating capacity. sure that everyone in this House wants to see that project get up. It could be magnificent. But alongside those developments, we There is little question of that. have the Government seeking to promote the Chevron gas project, based on taxpayer That project could deliver the gas supplies underwriting of contracts for some 180 to north Queensland that are particularly petajoules of gas, based almost exclusively on crucial for that region if we are going to have power generation projects. That presents a anything approaching competitively priced conundrum—a puzzle, a riddle, if you like. The power in an area of total competitiveness. But simple fact is that gas, as a fuel for power it has to stand up. Energex and Ergon have generation, is expensive in relation to coal. contracted for some 180 petajoules of gas Kogan Creek recently advertised power for from Chevron, ostensibly without any sale at $28 per megawatt hour—extraordinarily Government pressure whatsoever. But what low in relation to even relatively recent coal- are the risks? What do we need to know? The based power, but a sign of the great advances Government cannot tell us. We recently asked that are being made in technology in that that specific question of the Treasurer. What industry. Callide C and Millmerran are going to he said was almost incredible. He said that he be in the same ballpark. The kindest industry did not know what the risks were; he knew they estimates are that gas-fired power is going to were there, and there were plenty of them, but be much closer to $40 per megawatt he just could not put his finger on them. hour—perhaps as low as $35—but most Taxpayers beware! probably, and on a very low gas price, in the There is another massive problem high thirties to around $40. In a crowded, looming out there of which the Minister seems competitive market, that is a massive to be totally unaware. In the totally competitive difference. 28 Oct 1999 Minister for Mines and Energy 4561

Apart perhaps from gas plants in some of We on this side of the House have some the more isolated areas of the State—where very serious concerns about what is going on the competitive advantage of coal could be in terms of power generation in this State. reduced by distance—there would be very little There are no answers forthcoming from the potential for gas-fired generators to get their Minister. Not only do we want the answers, but call from NEMMCO to come on line, to industry in general wants the answers. There is generate. In fact, coal could even be an enormous amount of money at risk competitive in some of those more far-flung here—billions of dollars of private enterprise markets if the battle between super efficient money, not to mention taxpayers' dollars—and coal generators reached the level it clearly the Minister, to date, has been silent. And could. unless we get some answers fairly soon, the industry just will not know where it is. So why are we promoting gas, in a competitive market, as a power-generating Time expired. fuel? There is only one way it can make sense, Hon. J. P. ELDER (Capalaba—ALP) and that is in the context of a carbon tax (Deputy Premier and Minister for State regime. Figures published this week suggest Development and Minister for Trade) that the Commonwealth's Australian (6.16 p.m.): I rise to oppose the motion. Greenhouse Office is looking at a carbon tax Members opposite have made a totally lame regime that would relate back to a $27 per attempt to discredit my parliamentary megawatt-hour addition to the price of coal- colleague from Mount Isa. Unfounded based power and $16 per megawatt-hour for allegations about his handling of the electricity gas-based power. If that became a reality, industry have consistently failed to register, then we would be seeing prices for coal-based both in the industry and in the community. power around $55 per megawatt-hour. Gas They connect about as often as Glenn would be in the same range and, therefore, McGrath's bat does when he is on the pitch. would be highly competitive. But overall, the The temporary Leader of the Opposition price of power would be through the told the House earlier this week that he would roof—almost half as expensive again as it is put this Minister under close scrutiny this week today. in question time. And what have we seen? The Minister is absolutely silent on this Nothing but a couple of questions, and that issue. It is a massive issue. It is a rapidly was supposed to be a grilling! Well, if that was maturing issue. It is so important an issue that a grilling, it was totally for vegetarians, because the member for Mount Isa's silence is yet it was about as limp as an old celery stick. another way in which he has, across two Labor The fact of the matter is—and it has been administrations, sought to dupe exposed in the gallery and in the media—that Queenslanders on this incredibly important Opposition members did not allow the Minister issue of power. He cannot be allowed to get to go to what was the most important regional away with it any longer. He has to give us development conference that this State and some answers. He has to give the industry this country have held in the past decade. some answers. And the only answer he can They said, "We are going to leave him in here, possibly give, in this policy arena with such and we are going to put him under a grilling." massive implications, is that he is gambling; he And what did he get? Nothing! It was a very is having a punt. The Minister is gambling with political and cynical attempt. The problem for billions of dollars in State and privately owned the Opposition is that everyone saw through assets on a carbon tax regime. that. If there is another explanation—and for I was sitting with the Leader of the House the life of us we on this side of the House this morning, and we were talking about what cannot see it, and industry cannot see it—then the tactics of the Opposition might be today in we need to hear it, and we need to hear it relation to that. I said, "They would not be soon. Industry is desperate to hear it—as the stupid enough, after not asking a question Minister must know if he has been opening his yesterday, and because of the criticism they mail or his newspapers—and the consumers copped yesterday, to ask him questions today, deserve to know if the future of lower prices in because it would just reinforce their stupidity." this State, and potentially massive exposure of The Leader of the House said, "Well, they are Ergon and Energex to risks in relation to probably stupid enough to do it." And what Chevron gas, is a flutter on the market by the happened today? Sure enough, both the member for Mount Isa with billions of dollars of Leader of the House and I, sitting in here their chips. dumbfounded, said, "Look at that. They have 4562 Minister for Mines and Energy 28 Oct 1999 asked questions." Their stupidity is free-falling. realities of life. What it means is that significant They have free-fallen to new depths. supply for the Queensland market is coming Opposition members were seen to be on board over the next few years. cynical. Everyone in the media, in the gallery Initially, the criticism was, "You are not and in this House saw them as being cynical, supplying any power." Now the criticism is, and today they reinforced it by asking the "You are supplying too much power." The Minister questions. They need a bit of help commercial realities of life are that there will be with their tactics. And if they want it, I am quite sufficient power. Do those opposite know what prepared to do it. But I have to tell them that happens to prices as demand increases? they have to pick up their game as an Because we are in a commercial market, Opposition, because they are starting to look commercial realities apply. I know that sooner pretty stupid indeed. or later the penny will drop for those opposite. Members opposite gave us blackouts and When there is significant supply in the market brownouts. They gave us Queenslanders prices tend to drop. It will be our generators being kept in the dark. In the last two years that will be pumping electricity into New South that they were in Government—and people in Wales. the gallery would remember this—we had It is extraordinary that those opposite say blackouts and brownouts. And why? Because that the plants in New South Wales will be they could not control their GOCs. They could competitive. Those plants have been not control their salaries or their maintenance mothballed. Those plants are old technology. programs across their power stations. At least The new technology is taking place in when this Minister came to Government, the Queensland. The plants in Queensland will be first thing he did was put in place a regime of the ones that will be exporting power. It does maintenance that has seen that situation not take a bright spark or a genius to work that improve. out. Mr Rowell interjected. The Minister for Mines and Energy has Mr ELDER: The member for Hinchinbrook got hold of the portfolio, restructured the is a bit like the member for Callide. The lights industry, brought on the power projects and are flashing, the boom gates are down, but brought on the supply. That is a feather in this the train is not coming, is it? They are dimwits Government's cap. over there. There is not one bright spark Time expired. amongst them who could actually see that maintenance was a problem. This Minister did. Mr MULHERIN (Mackay—ALP) (6.22 p.m.): Our Government is determined to Let me put the spotlight on a few of the provide Queensland with a world-class projects that are coming on board. The tight electricity industry characterised by reliability, power demand situation evaporated because efficiency and competitive prices. The we have a lot of new plant coming on board. economy demands it and Queenslanders We have the new Oakey 300-megawatt deserve it. I believe that we are delivering on peaking plant nearing completion. We have this. Directlink, which is the 180-megawatt interconnector that is scheduled for From the moment the Government came commissioning in February next year. We have to power we have been open and transparent the main interconnector, namely Westlink. It with the people of Queensland and industry in was formerly Eastlink. The only thing that relation to the Queensland generation sector. happened there was that the missing links It is a bit rich for the Opposition to be accusing opposite delayed it. As a result, it hits the deck the Government of failing to provide a viable in 2001. We have Callide C and Millmerran, future for the electricity industry. After the which will lead to increased capacity over the Opposition's gross mismanagement, the next three years. We have other projects electricity industry we inherited was: more coming on board, namely Kogan Creek and concerned with profits than reliability and Tarong. The commercial reality of life is that service; suffering a tight demand/supply they are not all going to get up. situation, exacerbated by the previous We have the Papua New Guinea gas Government's decision to scrap Eastlink; and pipeline coming on board as well. If we can get racked by problems with the coordination of that project up with the support of the Papua electricity supplies and maintenance. New Guinea Government and the The only future the electricity industry Commonwealth Government, we will. It is offered was one of unreliable supplies and understood that all those projects will not be blackouts. We therefore inherited an industry able to get up because of the commercial in some disarray, struggling to deliver 28 Oct 1999 Minister for Mines and Energy 4563 adequate supplies of electricity to keep the The Government plays an important role lights on in Queensland. in facilitating private and public sector power Mr Mitchell: You did nothing for eight projects. While the Government has been years. somewhat restricted in the information it can release, it has provided, and will continue to Mr MULHERIN: What about your provide, strategic direction to the industry. Minister? He would not get up and apologise to the people of Queensland for the blackouts. After its election, the Beattie Government What a shame! What a sham! launched an immediate independent review of maintenance practices in Queensland One of the Government's first actions was generators. This review was headed by Ron to establish the Summer Readiness Project McGuigan and Dick Williams. Do honourable team consisting of high-level officers from the members remember the document which the Department of Mines and Energy, PowerLink Minister for Mines and Energy, when in and other elements of the electricity industry. Opposition, tabled showing that Tarong Power They quickly developed a strategy for Station had a 35 man-years backlog in squeezing every last drop out of Queensland's maintenance? That is what this Government generation system, while looking for inherited. opportunities to reduce demand. Mr Rowell interjected. The Government also coordinated a successful energy efficiency advertising Mr MULHERIN: What about the 32 years campaign designed to help people reduce when members opposite were in Government? demand for electricity. This work is being When they were in Government for 32 years continued through the Office of Sustainable we had the Northern Electric Authority and we Energy which provides information to had blackouts in north Queensland. We did consumers on ways to use energy more not have an interconnector. We had hardly efficiently and save money. any generating capacity in north Queensland until we had the interconnector. Due to the tight demand/supply balance, and the fact that boosting generation capacity In February 1999, Cabinet also approved would take some time, the Government the establishment of an Electricity Monitoring moved to fast-track the construction timetable Unit to monitor the maintenance procedures of for the Queensland/New South Wales Government owned generators. The EMU is interconnector. In addition to this, the Minister now up and running and will further contribute for Mines and Energy ordered an immediate to ensuring that Queenslanders enjoy a secure review of the Callide C project to ensure that and reliable electricity supply. the project would deliver satisfactory outcomes In relation to the retail sector, the for the Government and, in turn, the people of Government has moved to establish a new Queensland. consumer protection unit within the In addition to Callide C which is under Department of Mines and Energy. This new construction, and the Oakey Power Station unit will protect the interests of consumers by which is due for completion at the end of the investigating complaints against electricity year, the Government has recently been entities and providing assistance in resolving dealing with a number of power station disputes through mediation and arbitration. proposals, including Millmerran, Kogan Creek, This unit represents the first-ever body to be Tarong North, Wambo, Swanbank E and the dedicated to the needs and rights of electricity North Queensland Power Project. The number consumers in Queensland. Work is also under of projects currently being considered way— demonstrates the new dynamic nature of the Time expired. electricity market in Queensland. Private and Mr SEENEY (Callide—NPA) (6.27 p.m.): I public investors are basing their decisions on rise to support the motion that was moved by their assessment of the market. Obviously, the member for Hinchinbrook. It is interesting these decisions require strict confidentiality to see the Deputy Premier come into the because of the commercial consequences. Chamber to back up another useless Minister. Thus, while the Government still has a This seems to be the Deputy Premier's role in role to play in overseeing development of the this Government. Last night he was in the electricity market, the entry of competing Chamber picking up the pieces after the market players means that the Government incompetent performance by the Minister for needs to carefully balance the need for Environment and Natural Resources. Tonight commercial confidentiality with the need for he is trying to prop up the useless Minister for transparency. Mines and Energy. I can inform the Deputy 4564 Minister for Mines and Energy 28 Oct 1999

Premier that he has a lot of work ahead of been aggregated by Energex and Ergon have him. been identified. There are at least 400 The threat that this Minister ignores, megawatts of new power proposed at namely, that publicly owned generating assets Townsville, as well as the conversion of two in Queensland could be stranded by the liquid-fuelled peaking plants there to gas. That economic reality of a competitive market, is gives around another 500 megawatts. There very real. The threat was alluded to by the has been a suggestion of 700 megawatts of Deputy Premier himself, although I do not gas-fired plant to be built by Tarong Energy, think he understands it. and NRG has plans for a 368 megawatt gas- fired power plant at Gladstone—which can only In fact, the threat verges almost on the really be based on the possible Comalco inevitable. The member for Hinchinbrook has Alumina Refinery. raised the matter, particularly in terms of the So there is another 2,000 megawatts, impact of the price discrepancy between coal without including such things as the 303 and gas. But the fact is that there are more megawatts coming on line at Oakey next year fundamental reasons why the record of this and the 500 megawatts of power from New particular Minister expands that risk. As the South Wales via Westlink towards the end of member for Hinchinbrook has pointed out, next year or early in the year 2001. In other Queensland's generating profile is no longer words, if all of these projects were approved the fittest following some of the decisions that and went into construction, we would have a flowed from the need, under the Goss virtual replication of the entire generating Government's mismanagement of this capacity of the State within three or four years. portfolio, to achieve expedient rather than Obviously, that is unlikely. Some projects are effective megawatts to meet demand. not going to get the go-ahead, either from the We have, therefore, to a rather disturbing Government or its backers. That is pretty extent in this State, a very dysfunctional obvious. generation profile: too little competitive base However, a significant proportion of that load versus too much non-competitive base capacity is likely to get the go-ahead and the load, and too strong a bias on shoulder, competition is going to be so fierce that some intermediate and peaking plant. There are two will not survive. It would seem obvious that the major and related complications ahead for the most likely victims are going to be the older uncompetitive elements of our system. One is assets, the less efficient assets that are in the the now rapidly emerging mass of state-of-the- system because of the hiatus in the planning art coal-fired plant. That is going to be super during the early 1990s when, for the six years competitive. Stanwell and Callide B are of that of the Goss Government, not one major power generation. That amounts to 2,100 megawatts station was built. When those assets are of very good power. Callide C, at 840 stranded by the economic realities of a megawatts, is now under construction. competitive market, that is going to be Millmerran is also a goer—at 840 megawatts. taxpayers' money down the drain. It is going to Kogan Creek is ready to go—at 700 mean disruption to communities. It is going to megawatts. That amounts to 2,380 megawatts mean a loss of jobs in those communities. This of coal-fired power set to come on line over the Government and this Minister should come next three or four years, subject to decisions of clean and tell us how they are going to cope this Government, on top of the 2,100 pre- with that particular set of circumstances. exiting megawatts of highly competitive capacity. These stations are likely to be the Hon. K. W. HAYWARD (Kallangur—ALP) only stations on the Queensland grid which will (6.30 p.m.): It is a pleasure to rise in this be able to compete effectively with New South debate and speak in opposition to the motion Wales's oversupplied system and Victoria's that has been moved by the member for privatised system. A lot of our other generating Hinchinbrook. The fundamental issue in this assets are therefore likely to be at motion is the matter of balancing supply and considerable risk of becoming power demand and ensuring future supply. If museums. members took the opportunity to listen to the contributions of the members for Merrimac and Another tier of the threat is the Hinchinbrook, they would know that the issue Government's push for gas-fired power that they were most concerned about was projects as part of its efforts to consolidate price. Those members were worried that in the demand for the Chevron project. It is very future demand would exceed the supply and difficult to tell precisely how many megawatts would therefore push up the price. However, it of gas-fired power the Government is pushing seemed to me that, in his contribution, the for because not all the customers that have member for Callide went on about having too 28 Oct 1999 Minister for Mines and Energy 4565 much supply in the future and that that would Northpower and Transenergy have also have the effect of driving down prices. He said proposed an underground 180 megawatt link that, on the basis of prices being driven down, between Terranora and Mullumbimby to be some power stations will become called Directlink. This interconnector is planned uncompetitive. So anybody who was listening to be in service by early 2000. These power to those contributions would know that there is projects will take system capacity to around some confusion among the members opposite 8,062 megawatts in the summer of the year who moved this motion. 1999-2000, 8,562 megawatts in the summer When this Government came to office, it of the year 2000-2001 and 9,402 megawatts inherited an extremely tight supply and in the summer of the year 2001-2002. This is demand position. That is well known to expected to provide more than sufficient everybody in this place. The record of the reserve capacity to meet expected demands previous Government was highlighted by its at these times. cancelling of the Eastlink project and putting in The point that I think was missed by the its place enormously expensive power member for Callide in his contribution when he purchase agreements for peaking power referred to an oversupply is that the stations. We all know that that happened. Last interconnector will provide the opportunity to February we saw demand peaking at almost export power to the national grid. 6,000 megawatts. In the 1999-2000 year, Time expired. depending on weather conditions, we could Mr MITCHELL (Charters Towers—NPA) see peak demand reaching 6,500 megawatts. (6.36 p.m.): The future of tariff equalisation in However, I think it is important to note that, this State is another issue that this Minister since last summer, over 550 megawatts of new generator capacity has been has ducked and one that he has to stop ducking. We welcomed the commitment that commissioned in Queensland to meet the the Minister gave this morning during question expected demand over the summer period time that the Labor Government will continue and a further 276 megawatts of capacity is to fund the equalisation policy that Joh Bjelke- scheduled in January next year. It is expected Petersen put in place for all Queenslanders. that these new supplies will provide sufficient That is really good stuff, but is it enough? We capacity to meet expected peak demands in need to know how the Minister is going to do the 1999-2000 summer. Obviously, that is that. In the past, tariff equalisation was funded when the biggest demand for power occurs. I by higher prices for commercial and industrial think that we all know—and certainly the consumers and cross-subsidisation between Minister knows better than most of us—that Brisbane and regional and rural consumers. the situation will be monitored constantly, as it Recently, a major source of funds has been was last summer, and action will be taken the dividends and the income tax equivalents should difficulties arise. from the corporatised power industry. The fact In 2001 the Callide C extension will also is that one of these sources has gone and the be commissioned. That will add something like other is about to go into free fall. 840 megawatts to Queensland's capacity in Because of the restructure, the major two stages. It is estimated that in the first commercial and industrial customers are now stage in May 2001 it will be 420 megawatts buying their power on the open market. Since and a further 420 megawatts in December last December, the biggest of them has been 2001. The Government has also embarked on doing that and all the others in two tranches an accelerated program for bringing the since. So the source has gone. It has finished. interconnector on line. It is finally going to get There are no longer the higher dividends from here. This link will provide an additional 500 the larger users in this State. That puts more megawatts of capacity in Queensland. pressure on the dividends and income tax, just Importantly, with reference to what the as that source also starts to decline, because member for Callide said, it will provide the we are getting a privatised power industry by ability for Queensland to export up to 1,000 osmosis. One only has to look at the megawatts to the national grid. So not only will generating industry to see that. The Millmerran the demand be met but also the extra Power Station is a totally private sector project. capacity, as it becomes available, will be able The proposed Kogan Creek project is a totally to be exported to the national grid. The private sector project. Perhaps the Tarong accelerated program will see 200 megawatts extension is looking a better proposition. Most of capacity on line in December 2000 and the of the projects in relation to the new gas-fired remaining 300 megawatts in the first quarter of plants are private or private/public partnership 2001. projects. More and more, the dividend and 4566 Minister for Mines and Energy 28 Oct 1999 income tax streams are going to benefit the Government knows that as well as anybody. private sector shareholders, and Canberra's Whether it be a gas power station or any other coffers, at the expense of the Queensland sort, we need a power station in north Government. Queensland to provide that equalisation. Of While this happens, prices are volatile. course, that may be only one of many The difference between the cost of supply to solutions to the problem. We all know that and the easy-to-reach, high-volume markets in the both sides of the House have spoken about it. south-east and the more isolated, relatively The Minister spoke about the new power lower-volume markets elsewhere throughout stations coming on line in north Queensland. It the State is becoming wider and more stark. I does not matter where power stations are can relate to that very well because my located, the power still has to be transported electorate is located in an area where that has thousands of kilometres to the people who occurred. We lose a lot in power generation need the equalisation tariff prices. It does not from the generators in the south of matter how many power stations there are; the Queensland, which has to get the power up to power still has to be transferred to the top end. north and north-west Queensland. The guesstimate is obviously an unsustainable price, but anyone who is prepared to predict A Government member interjected. that we are going to see lower prices in the Mr MITCHELL: This is very important, and longer term is simply guessing. that is why the Minister has to do a lot of work Time expired. on this issue. We are going to run into problems down the track with tariff Mr ROBERTS (Nudgee—ALP) equalisation. I am pleased that the Minister is (6.41 p.m.): The electricity industry structure looking at the issue now. However, no matter that was put in place by the former coalition what party is in power, it is going to get harder Government was clearly set up to privatise the and harder in the coming years. I believe that industry. Why else would it have fractured the this is a big issue and one that we have to industry into small saleable parts? As a result consider very seriously over the coming years. of that policy, the Government owned corporations were forced to focus on financial The member for Hinchinbrook spoke about the very uncomfortable signal that performance and profitability at the expense of emerged in the very early days of customer safety and reliability of supply. In February 1998, power station breakdowns Queensland's involvement on the national resulted in load shedding, widespread electricity market in relation to the scale of economic losses and social disruption. Who these costs. The tariff equalisation CSO was can forget the deceit of the previous Minister in budgeted at $93m and came in at about keeping potential power shortages secret from $420m—a massive misjudgment by the the people of Queensland? Minister and the Government and potentially a sign of things to come. I am just wondering As a result, when it came to office, the what we could expect this year. I think the Beattie Government committed itself to an figure of $259m has been bandied about, independent audit of generation maintenance which is some three times greater than $93m. in the GOCs to provide appropriate steps to minimise the risk of future power outages. Mr The conventional wisdom is that power prices are going to fall in the competitive Ron McGuigan, formally the CEO of CS market. That has not been established. In fact, Energy, was commissioned to undertake this that is being challenged by the early results, in independent audit, which identified a number which the guesstimate was a price of $37 per of key problems. All of the maintenance megawatt hour and the reality was $60 a identified as being of a high priority has been megawatt hour. With the gas power stations eliminated under this Government. coming on line, it is said that it will be about To ensure that maintenance problems do $40 a megawatt hour, but I believe that it will not recur, the Government has ensured the be a little higher than that. We should watch establishment of an Electricity Monitoring Unit the pricing of power over the next few years within the Department of Mines and Energy. once these gas-fired power stations come on One of the primary duties of this unit will be to line along with the peak load stations in Oakey oversee the continued implementation of and Townsville.that we have coming on line sound maintenance procedures and to ensure Power prices will be at a higher level and an ongoing audit of maintenance practices in we have to try to get equalised tariffs across the industry. the State. Of course, it will be beneficial to The Government has also recognised that locate a power station in north Queensland there is a scope for improvement to network and the Minister knows that. Indeed, the reliability by both electricity distribution 28 Oct 1999 Minister for Mines and Energy 4567 corporations. Whilst many outages are the and safety within the industry is a major priority result of storms and animal and bird contact, it for the Government. I oppose the motion is important to ensure that the distribution moved by the member for Hinchinbrook. system is maintained at a high standard to Hon. T. R. COOPER (Crows Nest—NPA) minimise supply interruptions. In recognition of (6.45 p.m.): When a series of blunders is the need to continuously improve reliability committed over a considerable period, one levels, the distribution corporations have thing leads to another. It is timely to spell out increased their 1999-2000 budgets. Emphasis some of the blunders that have occurred since has been placed on increasing preventive this Minister took office. Obviously, as the maintenance such as vegetation management accountable person, the bucks stops with the and pole maintenance so that emergency Minister, even though some problems may maintenance in future years can be reduced. occur down the line. Sometimes, that can The Government also places priority on develop into quite a record. I have the ensuring high standards of employee and unfortunate task of spelling out some of the public safety associated with the electricity blunders that have occurred under this industry. In fact, the Government has already Minister. taken a number of significant steps to upgrade safety standards. Both the Department of In July 1998, the Minister commissioned a Mines and Energy and the distribution 10-week inquiry into power station corporations are taking leading roles in the maintenance which ran until October 1998. promotion of electrical safety in the The inquiry recommended that electricity community. generators conduct their own reviews, which was a total waste of time. The inquiry simply For example, this year Energex is recommended that the generators repeat what implementing a number of major safety it was supposed to have done. initiatives aimed at improving electrical safety awareness and promoting the safe use of From July 1998 to March 1999, we saw electricity. Those initiatives include a $500,000 the Gordonstone debacle. Instead of stepping television and print safety education campaign in to resolve the issue, the Minister allowed targeting the major causes of injuries and militant miners to continue to block business. deaths from electricity. Ergon is also He then offered $200,000 to the strikers, undertaking investigations into its maintenance despite the fact that they were being paid by status and safety issues as a part of its the union to strike while receiving a payout ongoing improvement program. Specifically, from the company. Ergon has undertaken safety planning, risk From July 1998 to October 1999, we have assessments, training consultation and seen the results of the unresolved or very workplace inspections and audits. badly resolved native title issues, which have As a part of the Government's program, caused a sharp drop in mining exploration. the Department of Mines and Energy regularly That has led to the continued refusal of undertakes field audits of Energex and Ergon permits to the Valhalla mining project. The distribution networks to ensure their uncertainty caused by the preference for the compliance with electrical safety standards. Chevron gas pipeline has stalled or cancelled The Government has responded to claims by many proposed power projects. The extension Mr Keith Stenhouse, a former director of of the Tarong Power Station is still uncertain Energex, about the general safety and and $5m was cut from the program to bring maintenance practices of Energex. Mr power to the Boulia and Barcoo Shires. Stenhouse has indicated a willingness to In July 1998 the regional mines office was provide material and information on his claims moved from Townsville to the Minister's home to assist a Government investigation team. town of Mount Isa. The Minister was accused That team comprises Mr Ron McGuigan of of putting the $800m Callide C Power Station McGuigan and Associates and Mr Dick on hold while he looked for a loophole in the Williams, an official of the Electrical Trades contract in order to protect the Chevron gas Union. The team has been selected by the pipeline. The Minister was also accused of Government to examine safety reports and wanting to keep electricity prices unnaturally associated issues in relation to the high to help the Chevron gas pipeline. maintenance of Energex's electrical lines following some of the allegations by Mr In August 1998, the Minister apologised Stenhouse. The Government and the industry in advance for blackouts, causing concern in take responsibility for electrical maintenance both the business and residential arenas. In and safety very seriously. Indeed, the September 1998, a coalition budget of over maintenance of word-class levels of reliability $100m was stripped from the Callide C project. 4568 Minister for Mines and Energy 28 Oct 1999

There was rolling blackouts and load shedding Hon. T. McGRADY (Mount Isa—ALP) throughout Queensland. (Minister for Mines and Energy and Minister In October 1998, there were claims of a Assisting the Deputy Premier on Regional conflict of interest due to the Minister's interest Development) (6.50 p.m.): I am really going to in the Mount Isa based mine training company miss Mr Cooper when he goes! Many MIGATE. The Minister repeatedly urged honourable members would be familiar with Queenslanders to cut the use of electricity to the famous speech about the light on the hill by that great Australian Ben Chifley. The "light forestall blackouts. Townsville Hospital staff on the hill" speech is about the Australia that had to use hand-operated equipment to keep Chifley dreamt of—an Australia in which critically ill patients alive after a brownout and people had security. During the Borbidge generator failure caused by a loss of power. years, I used to dream not so much about the In November 1998 and December 1998, light on the hill but about the lights in the Aboriginal cultural monitors were paid $31.25 State—if only they would stay on. Blackouts an hour sitting money—a total of $2.8m—on and brownouts were the order of the day. This the Calvale-Tarong transmission line. From did not just happen by accident. The November 1998 to March 1999 the Queensland electricity industry had been Government was left open to legal action due allowed by the coalition Government to to delays in the construction of an electricity deteriorate and to become a national joke. It line to the Pasminco Century Zinc mine. In was apparent that few in the Borbidge December 1998 we saw another coalminers Government knew anything at all about the strike. In January 1999 the Minister declared industry. Times certainly have not changed. that he was personally against mains power The structure put in place by them was north of the Daintree River, despite impact undoubtedly set up to be privatised and sold assessment studies showing that off to the highest bidder. When we came to environmentally sensitive power is possible. office, the industry was in chaos and there Then we saw Cooktown losing power for up to were blackouts and problems almost on a daily 32 hours. In February 1999 Birdsville basis. But that is not happening today, is it? It experienced continual power surges and is not happening today because this blackouts for up to 13 hours while the Government came in, took a firm hold on the temperature reached 49 degrees and 50 industry and took action to overcome the degrees in the school classroom. In April 1999 problems. We are still taking action to make he appointed the first of his cronies, Keith De changes that will benefit both the industry and Lacy, as Chairman of Ergon Energy, and there the community well into the future. was a round of appointments to the new Our changes and the structure that we electricity boards, which were largely a case of put in place are not about flogging off the jobs for the boys. In May 1999 Energex failed industry. We took action to produce a new to read 140,000 electricity meters and then structure for the industry and it is working well. sent out bills based on guesses as to what Our restructure was designed to provide better was owed. Often they were overestimated. In services in line with community expectations June 1999, northern businesses were forced and to ensure greater reliability in the State's to pay 40% more for power than their southern electricity system. Our Government has turned counterparts. In July 1999 the mining warden around an ailing industry which we inherited accused the Government of stopping him from from the former coalition Government. The doing his statutory duty to investigate all scaremongering and whingeing from members serious accidents in the mining industry. The opposite is typical of their culture of complaint. list goes on and on. Can we ever forget the admission by the Mr Elder: No, it doesn't. You have half a former Minister that almost 3,000 jobs would page left. Read it. disappear from the electricity industry as a Mr COOPER: There is heaps. direct result of the policies of the coalition Government? Honourable members talk about Mr Elder: It doesn't go on and on. responsibility. Was it a responsible action for Mr COOPER: The Minister has chalked the former coalition Government to cancel the up this record. It does not read very well. The good work being done by the former Goss list goes on and on. I missed out on half of it; I Government in relation to renewable knew I would not have enough time to read it technology? Was it a responsible action to all, because I have only five minutes. I will destroy Eastlink? This action was taken not table the list. because the Goss Government had made the wrong decision but simply because the Goss Time expired. Government had made that decision. Within a 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4569 few short months of coming to power, the Seeney, Simpson, Springborg, Stephan, Turner, coalition had realised that it had made a Veivers. Tellers: Baumann, Hegarty terrible mistake so it then had to rush in and NOES, 41—Barton, Beattie, Bligh, Boyle, Braddy, support the building of high-cost peaking plant, Bredhauer, Briskey, Clark, E. Cunningham, D'Arcy, which today is a massive millstone around the Edmond, Elder, Fenlon, Foley, Fouras, Gibbs, Hamill, necks of the people of Queensland. This is just Hayward, Lavarch, Mackenroth, McGrady, Mickel, another legacy of the coalition's dark years. Mulherin, Musgrove, Nelson-Carr, Nuttall, Palaszczuk, Pitt, Reeves, Reynolds, Roberts, Rose, That is why, upon coming into Schwarten, Spence, Struthers, Welford, Wellington, Government, one of our first actions was to Wells, Wilson. Tellers: Sullivan, Purcell negotiate with the Government of New South Resolved in the negative. Wales to expedite the construction of the interconnector. We did that. We gave the tick Sitting suspended from 7.01 p.m. to to Callide C, which will produce some 840 8.30 p.m. megawatts of power. We gave the tick to Millmerran, which will produce approximately the same amount, and we are giving APPROPRIATION (PARLIAMENT) BILL consideration to projects at Tarong and Kogan APPROPRIATION BILL Creek. The jewel in the crown could be the Resumption of Committee on Appropriation massive project that will see a gas pipeline Bill stretching from Papua New Guinea into Resumed on clause 2 (see p. 4559). Queensland—a project that people used to only dream about. This project will create Mr HEALY: My colleague the member for thousands of jobs for the people of our State Toowoomba South outlined during his and create a balance in the energy mix in the contribution to this debate the absolutely Sunshine State. There is an important debate incredible situation that took place on 13 raging in this State about the mix of energy, September 1999 during the MLA pre-Budget about the merits or otherwise of the gas briefing, which I understand has been pipeline from Papua New Guinea, and about commented on by either the current Treasurer the future role of coal and coal bed methane. or the Premier when he was in the position of Government, industry and others are having acting Treasurer when he said, as I sensible and in-depth discussions about the understand it, "That will be the last time that future of the energy industry, yet the coalition we give anybody a briefing prior to the has not contributed anything at all to this Budget." debate. They are yesterday's men and What happened at that briefing was that women. They are devoid of ideas. They are all of a sudden it was revealed by the Treasury devoid of a vision at a time when we should be officials who conducted that particular briefing taking a bipartisan approach. exactly what the equity return or the assets tax When future generations look back on the was all about. If I recall—and the member for changes that occurred in the Queensland Toowoomba South will agree with me—it was electricity industry, as we move into the new not so much the look of horror that was on the millennium the conservative parties in this faces of Opposition members but the look of State will be seen for what they are and for horror that was on the faces of members of what they were. There are certainly no bright the Government. They started to ask sparks on their benches; the are burnt-out questions about this equity return and it is fuses. The attack that the Opposition has obvious that they had not heard about the launched on us today has simply turned out to equity return either. be a fizzer. As other Government members Mr Borbidge: They realised they were at have said, there are big projects happening their own funeral. now. They are on the starting blocks. There are companies lining up at the border to come Mr HEALY: I believe that that is quite in and join our electricity industry. right. There were members at that briefing who looked in absolute amazement at the Treasury Time expired. officials when they realised that this could have Question—That Mr Rowell's motion be an effect and a major impact on the assets agreed to—put; and the House divided— throughout all of those departments within AYES, 37—Beanland, Black, Borbidge, Connor, their own electorates. They found it absolutely Cooper, Dalgleish, Davidson, Elliott, Feldman, Gamin, incredible when it was explained to them, Goss, Grice, Healy, Horan, Johnson, Kingston, particularly when they read the definition of the Knuth, Laming, Lester, Lingard, Littleproud, Malone, equity return in that particular document, which Mitchell, Nelson, Paff, Pratt, Prenzler, Quinn, Rowell, was explained as— 4570 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999

"A periodic payment reflecting the used to years ago ... Today, if they do go potential benefit forgone by Government to recreation camps, they go off to broken as a result of its investment in the equity down recreation camps which in some of an agency. One of a number of cases ... are a safety problem." balance sheet initiatives, it is designed to And he said— encourage agencies to maintain a capital structure appropriate for the delivery of "Let us make a decision based on services." usage and what needs to be spent on them as to whether the Government I think that that certainly sent shivers down the should keep them all. Do we keep some? spines of many people, including many Do we dispose of the lot?" members of the Government. Mr Borbidge: I didn't think Merri Rose Let me say that the cat was really and would do that. truly released from the bag yesterday during the debate on the report of the Estimates Mr HEALY: Yes, over the years those committee hearing into the portfolio of recreation camps have played an important Tourism, Sport and Racing. Who let the cat and vital role in the development of young out of the bag? In fact, it was our old friend the Queenslanders in this State. Over the years Minister for Tourism, Sport and Racing! Over the well-educated shadow Minister for the past couple of weeks I have been having a Education attended some of those recreation look at exactly where in that particular camps. department this tax could affect some of its Mr Horan: My kids went to Ficks Crossing assets. Recreation Camp. Lo and behold, I raised some questions Mr HEALY: The children of the member during my contribution to the Estimates for Toowoomba South went to the Ficks committee debate about recreation centres Crossing Recreation Camp. These are around Queensland. As honourable members recreation camps which have, through healthy know, we have 12 recreation centres around lifestyles, forged the development of our the State. They are, of course, Christmas children. And what is the answer from this Creek at Lamington; Lake Julius, Mount Isa; Government? This Government's answer is Seaforth, Mackay; Currimundi, Sunshine not, "Let us pour some money into them to Coast; Ficks Crossing, Kingaroy; Leslie Dam, make sure that they are upgraded and provide Warwick; Lake Perseverance, Crows Nest; a magnificent facility for children"; the answer Lake Tinaroo, Atherton; Magnetic Island, is— Townsville; Yeppoon, Capricorn Coast; Tallebudgera on the Gold Coast; and Storm Mr Laming: Flog them off. King Dam, Stanthorpe. Mr HEALY:—"Let's flog them off." So It is no surprise that each and every one here we have 12 recreation camps from far- of these recreation camps has been losing north Queensland to the Gold Coast.They are money. These recreation camps are valued at located in all electorates; it is right across-the- a total of $33.03m and they have been losing board. We have them from the Gold Coast to money. I am not going to criticise this Stanthorpe to Townsville— Government or previous Governments Mr Laming: Labor electorates, too. because of that, but I wonder, if there is the Mr HEALY: We have them in Labor pressure on a department to return this 6% electorates as well; we have them in Mackay. asset tax, what would be the logical decision of a department? Pay the 6% or flog off some of Mr Borbidge interjected. the assets? Mr HEALY: Exactly. I have to say that I An Opposition member: Flog it off. found it absolutely horrifying to hear it suggested that some of these recreation Mr HEALY: Flog off some of the assets. camps would just simply be disposed of. So I happened to inquire of the Minister yesterday in this debate about these assets. It is probably something that we have to What did the Minister say? The Minister said— reflect on because it is going to go right across all departments. There are assets right across "Somewhere along the line a the departments that are in danger of being Government has to make a decision flogged off because of this assets tax. That will about whether we keep some of those occur because Treasury needs to get the recreation camps or not ... money to pay for the first underlying Budget The reality is that these days those deficit in over 25 years. Where is the fiscal camps are not used as much as they management of the Rhodes scholar? It is out 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4571 the door; it is gone! For the first time, this State seen some pretty sad sights, but this is one of has been embarrassed by a Treasurer who the saddest we could ever see. quite clearly has not got his finger on the This Treasurer, who has so much form, is button. I have some major problems with this trying to allay the concerns of this Parliament. I particular Budget because of this asset am not sure there would be too many tax—and that is what it is. I would hate to think members of this Parliament, particularly on his that we are going to jeopardise the children of own side, who have had their concerns our State. allayed. Notwithstanding that he is a Rhodes In his address yesterday the Minister for scholar, that he was taught at Oxford, this Tourism, Sport and Racing made it quite clear Treasurer did some quite remarkable things that he was definitely going to save when he was previously in Government. That Tallebudgera. In fact he said— leads me to be concerned about his capabilities in Government today. The "I will give the member this honourable member for Callide spoke about undertaking, though: under no "lazy assets". I am not sure what that means, circumstances will I ever be a party to, in but when he was Minister for Transport the any shape or form, selling off the camp at now Treasurer closed one-third of Tallebudgera or allowing it to run further Queensland's railways because he thought down. It is an icon in Queensland. It they were lazy assets. Wayne Goss went deserves money being spent on it. It is straight into a tailspin, straight into damage one of the prime locations for kids and control. He promised that he would close only families to be able to go on holiday if they about half of what the honourable member were to be provided with an upgraded tried to close. and modern sort of recreation camp on that site." The other great piece of political mastery on the eve of the 1995 State election was the What about all those other sites proposal to build a road straight through a throughout Queensland? Sure, Tallebudgera koala habitat. is an icon, and I commend the Minister for making the commitment that he is going to Mr Horan: The teddy bear tunnel. spend money on the Tallebudgera Recreation Mr SPRINGBORG: The teddy bear Camp, but what about Leslie Dam in the tunnel, as Sir Joh called it. It was a real ripper. electorate of Warwick? This Treasurer tells us that the people of Mr Horan: Ficks Crossing. Queensland have nothing to fear from his Government and from this obnoxious 6% Mr HEALY: What about Ficks Crossing? community service assets tax. This tax tears What about Currimundi? What about Lake the heart out of Government responsibility. Tinaroo and Magnetic Island and Yeppoon One thing Parliaments here in Australia and and Storm King Dam? As I understand it, worldwide must do is start putting a bit of when we were in Government there were compassion and a bit of social and community some proposals to upgrade Storm King Dam. understanding back into their policies and the There was money allocated for Storm King decisions they make. This tax is straight out of Dam. I feel quite passionate about these the London School of Economics. It has no recreation camps because I think they are an place whatsoever in a decentralised State important part of the sorts of things we are such as Queensland, a State which covers able to provide youngsters throughout this over two million square kilometres—a very big State. It will be an absolute travesty if the 6% State in which it is always very difficult to strike assets tax that this Government seeks to a balance with regard to the delivery of introduce in this Budget has an effect on some services. of these important recreational facilities in this State. When a Government starts taxing services based on their ability to return, it Mr SPRINGBORG: Quite clearly, the strikes at the very core of what Government is Parliament has absolutely no choice tonight all about. Government is not Microsoft. but to support the amendment which has Government is not BHP. Government is not been moved by the Honourable the Leader of Electrolux. Government is not General Electric. the Opposition to remove this obnoxious Government is not any of those sorts of big community service assets tax from the State companies that the Honourable the Treasurer Government's Budget. This is one of the most might hold up as icons. Government is about dreadful things that I think any State delivering services to people. The sooner the Government has brought into this Parliament Treasurer and members opposite start to since it was first established in 1859. We have understand that, the sooner we can start to 4572 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 have a real debate in this place about I know that members who represent regional common decency and common social areas are very concerned. The honourable standards. member for Merrimac spoke earlier about the I know that people in my area are very implications for a number of schools in concerned about the implications of this Brisbane. Once we get into the bureaucratic proposal. A moment ago the member for economic rationalist argument, it may be just Toowoomba North revealed to this Parliament as easy to say, "We will close this school down the first sinister steps of the 6% community because we have to make some savings service assets tax. The Treasurer can try to somewhere to offset the community service dress it up as equity charges or as efficiency assets tax. We will bus the kids across the dividends or whatever he wants to call it, but it suburbs of Brisbane. We will bus the kids is a community services assets test. This is a across the metropolitan area." That is going to tax on Government's ability to deliver services happen, notwithstanding what the Treasurer in those areas where they may not necessarily might say. pay. Government is not about getting a return As revealed by the member for on the services or the infrastructure that it puts Toowoomba North, the Department of Sport is into those centres; government is about already starting to consider how it is going to supplying services to those people. Once we meet its obligation to Treasury in so far as the start to say that there must be a return of 6%, community service assets tax is concerned. It it strikes at the very heart of what government is already looking at it. It is looking at it with is all about. regard to the magnificent facilities that have Honourable members opposite are the played such an important role in the ones who profess a belief in a fair go. They are educational, recreation and sporting the ones who supposedly stand up for the opportunities for young people in this State battler. I think in their heart of hearts some of over a long period. I went to Leslie Dam when them probably do. At the end of the day, the I was at the Yelarbon State School. It was a only way we can truly judge their standards great place. It is not falling apart and and what they believe is by noting the action deteriorating as the Honourable Minister was they take in the Parliament tonight. trying to make out yesterday. It is quite okay. As I recall, Storm King Dam had some money I agreed with the honourable members for spent on it a couple of years ago to try to keep Toowoomba North and Toowoomba South it up to date. Departments should not turn and other members of this Parliament when around and say, "This is the first way we are they talked about the consequences of the going to meet our obligations for the briefing we had before the Budget was community service assets tax and we are brought down in relation to what would happen going to deny the kids of Queensland a with accrual accounting and other such things. wonderful opportunity." That is what this is all We were given that briefing so that we could about. have a better understanding. My understanding of accrual accounting was that The Minister is picking winners and losers. is made it very easy to hide things, certainly at The Tallebudgera outdoor recreational centre the initial stage when we were getting used to will have money spent on it. What about the it. other 12? What about the two in my It is fair to say that honourable members electorate? That means they go by the opposite had little idea about the implications wayside as the Government and the of this equity charge. We had to ferret out departments desperately try to rob Peter to what it was all about. I do not blame the pay Paul. That is what this is all about. It is Treasury officials, because they have a job to shonky economics. It is voodoo economics. do. They do their job at the behest of the Mr Healy: It is the new FOI—flogging off Government of the day. When they were infrastructure. asked what it actually means in relation to, Mr SPRINGBORG: There is no doubt say, a TAFE college with two vacant buildings, about that. It is Beattie's competition policy. they said, "Well, you may have to sell them, Premier Beattie stands up and rails against the because you have to get a return on that forces of dreadful economic rationalism that particular asset which is not being used." That permeate the very heart of Canberra. He rails is what this is all about. about it out in rural areas and says that he is As of 1 July next year, any net increase in great and that he is going to do all sorts of assets has to have a 6% community service things. He goes out there and cartwheels assets tax applied to it. That concerns me around the place, but at the end of the day greatly, because I represent a rural electorate. what does he do about it? Absolutely nothing. 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4573

Through the Council of Australian Only this morning, the possibility of the Governments, of which he has the opportunity removal of another service was bought to my to be a signatory and to determine things, the attention. There are grave concerns in the Premier has played no active role with regard electorate that the retail section of the power to competition policy whatsoever. So what is board is to be closed and replaced with a call his response? He brings in his own competition centre. This is something on which I would like policy in Queensland. He aims to strike at the clarification from the Minister—as to whether or heart of Government. He aims to strike at the not this is planned for the future or already is a efficiency of Government. He aims to make fact. things more competitive within the Mr Hamill: Which Minister are you talking Government sector—for all the wrong reasons. about? Honourable members need to be very, Mrs PRATT: The Minister for Mines and very concerned about this, because this is Energy would be fine. The Ministers are aware sinister. It is a 6% return on the assets of that the communities of the electorate are Government. It is a 6% return from a already sensitive to the loss of services in rural department—which is trying to deliver areas, and it is best that any concern be services—to the Treasury. So those addressed, and addressed quickly. Government departments then have to make Another concern which has been bought the hard decisions, and they make those hard to my attention is that the Allgas name will decisions by gutting services which they change to Energex on 29 October 1999. This determine are inefficient. And we are talking notification was received by consumers to here about small schools—whether they be in inform them that "Energex is working towards the suburbs, in rural areas or in regional areas. the convenience of providing a single energy We are talking about issues such as upgrading account." I have to ask: convenient to whom? hospitals when they cannot make the nominal A concern of many pensioners is that the 6% return and they have to make the combining of the gas and electricity bills will community assets return or tax return to the make it very difficult for them to meet those Government. What does it do for rural roads? costs in one big hit. I trust that that will be What does it do for those of us who want to addressed, too, and that suitable see the Government enhance police arrangements will be made available to capabilities in rural areas—to carry on from pensioners to enable them to pay in a way where we left off when we were in that will save them the embarrassment of Government—and have 24-hour police having to ask for extensions of time. stations? What does it do for courthouses? In the Proston area already the Time expired. ambulance officer has been removed, and so has the police officer. Although Proston is a Mrs PRATT: I rise to speak to the minimum of 45 minutes from the nearest big amendment tonight. In common with all school, it is not unheard of for schoolchildren members in the Chamber, I eagerly received to be transported on this type of bus trip. We and searched the Budget papers to see what have other one-teacher schools, including benefits would flow into the towns of the Benarkin, which has for some time been Barambah electorate. The comments from requesting another building—even a other members to the effect of "Boy, your area transportable—or a school that has already didn't get much" were not needed, but at least been closed. That is not much to ask, one they confirmed my own observations. Again, I would think; but this would cost money and, can only repeat that which I have stated therefore, the school would become a prime before, that is, that funding for the towns of candidate for the students to be transported to the electorate is contained in the section titled the nearest school at Blackbutt. "Other". We can add to the list the uncertainties The 6% equity tax appears to raise some surrounding the South Burnett Meatworks. The very interesting, if not frightening, possibilities. Ministers will all be aware of the confusion and The major one is the threat to one-man police uncertainty that has hung over the Tarong stations, schools and ambulance stations. In Energy expansion, the future of Tarong Coal rural Queensland, there is a real belief that and the SUDAW rail project. These are all many of the services are being eroded—as uncertainties that are inflicted on rural most members would know. I ask all Ministers Queensland in the electorate of Barambah. I to take on board the concerns I bring to them understand that the expansion of Tarong was tonight and look forward to a resolution or a carrot brought out by the National Party prior answers to these concerns. to the last State election and that there were 4574 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 many processes to be undertaken between she was due to give birth. My electorate that time and any announcements which could secretary and I pursed every avenue to find be made. If rumours were money, at this point accommodation for this family, but the in time the Barambah electorate would be very common answer to all requests for emergency rich. But rumours are not money, and the accommodation was, "I'm sorry, there is none Barambah electorate is not a rich place, with around here." I was aided by a lady from the unemployment and poverty being two issues Cherbourg community and, finally, we found rating very high on the list of concerns. that lady accommodation in a caravan. This The uncertainties which hang over the deficiency is one that I would also ask the towns of the South Burnett are quite Ministers to take the time to assess, with the debilitating. Mine workers and shopkeepers, hope of some form of emergency housing maintenance engineers and any other being established. occupation one can think of are all still waiting This 6% equity tax is a real worry to a lot for something to happen. Whole towns— of people. The rural sector will, once again, Kingaroy, Nanango, Yarraman, Blackbutt, bear the brunt of any Government decisions Murgon, Goomeri, Wondai, Kilkivan and many on this tax. other areas—face the threat of this 6% equity Mr ROWELL: I would like to make some tax. As I said, small schools, one-man police brief remarks because this issue has some stations and ambulance stations have been bearing on my part of the world. Very often we waiting for a long time for this Government to find that schools are closed— make decisions which will benefit them. Mr Hamill: Particularly on weekends. The land-holders who have had their Mr ROWELL: That is true. That was a properties dissected by powerlines, then marvellous observation. I am sure the Minister another set of powerlines, and then had has enlightened the Chamber. surveyors trekking through their properties mapping out the best route for the railway line, Mr Hamill: I am just trying to lighten up are another group who need to know exactly your speech. where they stand. Perhaps this Government is Mr ROWELL: I thank the Minister very waiting until the Community Cabinet meeting much for his assistance; it is greatly to make an announcement. We all wait, appreciated. Many small schools are forced to although with impatience. There are many who close. The schools are wanted by the local wonder why these announcements have to community because very often they have such wait so long. Those in this Chamber realise facilities as tennis courts. The community has that there is nothing done without gaining the had input into the provision of those facilities. maximum political mileage possible, and the Many of the people of the area reared children timing of announcements is made with that in who formerly attended those schools. These mind. people contributed to the facilities of the People who are living close to, on or school through the P & C. Under the equity below the poverty line do not thank politicians return regime a lot of pressure would be for holding off on announcing opportunities exerted by the Department of Education to sell that may put bread and butter on their tables. the school. As a result, the people of the area Many of the schools in the area have applied would be unable to retain the facility as a for funding for projects which were promised community centre. under the previous Government, but that A classic example is the Helens Hill State funding has not eventuated. I ask that these School. The student numbers declined to schools be taken into consideration when about only 12 students. I am sure the former decisions are being made for further capital Minister for Education would recall the steps expenditure—but not for moving. I ask the that had to be taken in order to keep the Ministers of all portfolios to be honest and up school open. That school would attract more front with the rural communities and the shire people to a P & C meeting than schools which councils and give them a clear indication of have 300 or 400 students. The people of that what the future holds for them. The councils area wanted to retain their school. The facility work hard to stretch their funding to get the was not simply used for educating children; it maximum benefit for minimum dollars. was also used as a community centre. The school was in danger of closing when it was Recently, within a period of nine days, I burnt down and steps had to be taken— was in need of emergency housing on two occasions. The first situation involved a woman Mr Hamill: That's an old trick. who, with her husband and three other Mr ROWELL: It may be in the Treasurer's children, arrived in my office two days before book of tricks, but it certainly is not in the book 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4575 of tricks of the people in the Helens Hill area. Mr ROWELL: You have just quoted a They are good, honest people. They did not classic example of what could happen if we do go to Oxford University. It is absolutely not have the foresight to maintain such ridiculous to suggest that these people would corridors. We must ensure that rail corridors burn the school down. are preserved. It may be necessary to re-open We had a very sensible outcome in that such corridors in the future. The equity return instance. If the numbers of students are proposal could put pressure on the retention of drastically reduced at any time, the school rail corridors. building can be transported away from the site. A Government member interjected. However, the site will remain for the benefit of Mr ROWELL: Obviously, we do not have the local community. I am sure the nickel being taken from Greenvale to Yabulu Government would not have taken these steps any more. However, if we maintain that rail if we had not had the input of that dedicated corridor it may be used in the future if we find group of people. I commend the former another mineral resource in the area. That Minister for Education for the role that he corridor could service a mine, the cattle played in relation to the Helens Hill State industry, or some other industry. We do not School. want the situation to arise in which Another school to which I wish to refer is Queensland Rail, or some other Government the Ripple Creek State School— department, might want to use that corridor in the future only to find that it has been closed Mr Mickel: Tell us about Acacia Ridge and sold off. High School; it was closed down. Rural populations can decline because of Mr ROWELL: I do not know anything drought, poor world prices for exports, or for about Acacia Ridge; it is a little out of my many other reasons. We could lose some patch. The Ripple Creek State School was important facilities in our rural areas if closed down when the student numbers fell. Government agencies such as the Health However, the Department of Natural Department, the Department of Education, Resources made use of the premises. The last Queensland Rail, or some other department, thing that anyone would want to see is the decided to cash in on their resources. This sort Department of Education taking over that of thing can happen in areas of Queensland area. Another Government department has where we have fluctuating seasonal conditions been able to make use of this resource and and uncertain markets. The last thing that we service the district. want to do is flog off those resources and then I believe that the equity return proposal find that later on we have to pay a high price will put a lot of pressure on vacant industrial to re-establish them. land. There is every possibility that such land We have seen examples in Brisbane and will be resumed and sold instead of being Townsville where industrial land has been sold maintained for the future development of the off in order to enable a Government local area. If a town had excess housing department to capitalise on resources. I blocks we could find that some Government understand that this could be called lazy departments—such as the Department of equity. It is vital that we ensure that such Public Works—which needed additional cash things do not happen. Each Government might sell off some of the blocks instead of department should use discretion and maintaining them for the future development commonsense to ensure that it has enough and growth of the area. land available for future development. It is Many hospitals in regional areas are not important that we maintain the resources receiving the level of service that they require. which are so important to our rural and The equity return proposal gives the Health regional areas. Department an opportunity to reduce services Another important issue is road closures. to country hospitals. Eventually such hospitals It will be a great shame if commonsense does would not be well patronised because they are not prevail and we reach the stage at which not providing a sufficient level of service. I each department reviews its requirements hope that will never happen, but pressure can and— be applied to sell off rural hospitals in order to Time expired. recover cash. Mr HAMILL: The substance of my Rail corridors are extremely important— comments that I made a few hours ago is Mr Mickel: Like the Gold Coast corridor; unchanged. However, I want to clarify a couple remember that one? of points ever so briefly. Firstly, the member for 4576 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999

Tablelands raised an issue. I would like to The CHAIRMAN: The Treasurer asks that recall briefly to the Chamber that, last year in those remarks be withdrawn. the appropriation debate, a matter had been Mr NELSON: I find it highly offensive that raised concerning the Malanda High School the Treasurer is making misleading statements vocational education block. I made some about me. I do represent my electorate. He is inquiries with the Education Department the Minister, not me. because, as a former Minister for Education who initiated the Building Better Schools The CHAIRMAN: I ask the honourable program, I had a keen interest in vocational member to withdraw the remarks under the education. At that time I was able to advise Standing Orders. the member that the vocational education Mr NELSON: I withdraw. block at the Malanda High School would Mr HAMILL: In relation to the matter that indeed be upgraded under the Building Better was of concern to the honourable member, I Schools program and that the Education am advised that, as I had informed him last Department had advised me that that work year, allowance was made in the 1998-99 would be completed in that fiscal year. That Capital Works Program for the work to was 13 months ago and, to the best of my commence, but some redocumentation was knowledge, that work would have been required to incorporate a refinement of the undertaken. functional area provisions. The brief from the This evening, the member raised the Office of the Department of Education goes on issue in the Parliament, I guess, accusing me to state that the redocumentation is being of breaking a promise. He never raised it with undertaken at the present time and should be me in the intervening 13 months. completed in the near future to allow the calling of tenders for this project at an early Mr Nelson: Oh! Come on! I gave you the date. The project is included in the current benefit of the doubt. You said it here. I gave 1999-2000 program with the work expected to you the benefit of the doubt. What did you be fully completed this financial year. do? Nothing! Am I supposed to chase you up and make you do your job? I suggest to the honourable member that he should do his homework, he should do his Mr HAMILL: Mr Chairman— work on behalf of his constituents and The CHAIRMAN: Order! Does the continue to follow up this matter. Treasurer need protection? Mr NELSON: I rise to a point of order. I Mr HAMILL: No. I know that the member find the remark that I do not do work for my for Tablelands is a very, very busy member of electorate highly offensive, untrue and typically this Chamber and he has many, many things characteristic of this Minister, and I ask for it to on his mind. I know that his time is at a be withdrawn. premium. I do not want to further aggravate a Mr Sullivan interjected. very angry ant but, in good faith, I took up the Mr Nelson interjected. cause for the member for Tablelands because obviously he has not taken the trouble to The CHAIRMAN: If this continues, I will follow up this matter. During the dinner dismiss the Government Whip as well as the adjournment, I did. For the information of the member for Tablelands. The member for member for Tablelands, I want to say that I Tablelands asked for the remark to be did— withdrawn, with a little bit of colourful language thrown in. The Treasurer knows parliamentary Mr Nelson: The people of Malanda really procedure. In future I wish he would follow it. believe you. Mr HAMILL: In proper deference to the Mr HAMILL: I did for the member what he forms of the Chamber and to the honourable could have done for himself. I consulted with member's sensitivities, I withdraw anything that the Education Department. In fact, I obtained he may have found offensive. I do say that the a brief from Susan Rankin, a very senior officer information is there on the record. I entreat of the Department of Education. For the him— information of the honourable member for Tablelands, let me put it on the record— Mr Nelson: Bricks and mortar aren't there on the record, that's for sure. You can't lie to Mr Nelson: You're a liar. the people of Malanda. Mr HAMILL: I rise to a point of order. The Mr HAMILL: I entreat the member to do remarks just made by the member for his duty by his constituents. I also ask him to Tablelands are not only unparliamentary but again withdraw remarks that are offensive and I ask him to withdraw them. unparliamentary. 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4577

The CHAIRMAN: Those remarks are honourable member for Merrimac who asked recorded by Hansard in the interjection. I ask previously why this is not applied, for example, the member to withdraw them in the proper to the Creche and Kindergarten Association or manner. capital that is provided to non-Government Mr NELSON: Of course, any remarks that schools—is that, as the statement that I just the Minister finds offensive, I will withdraw. read indicates, it applies only to the controlled net assets of the department. In the same way Mr HAMILL: Mr Chairman, thank you. I as we provide a range of support to a whole thank the member for Tablelands for his variety of community organisations, such as courtesies. the Queensland Cancer Fund or the various In relation to the substantive matter hospice care organisations in the form of before us, various claims were made about capital grants, they are not controlled funds. statements that were made at a briefing that They are administered funds by departments; was afforded to all honourable members prior they are not controlled funds; they are not to the presentation of the Budget. I was subject to the application of the 6%. Therefore, listening keenly, because it was suggested in light of those funds that we provide to those that the Deputy Under Treasurer, Mr Gray, other organisations, of course, the money that informed members of a certain state of we appropriate to departments to cover the operations with respect to the equity return. I equity return is not appropriated in respect of was keenly interested in that, because I those administered assets and, likewise, the actually have before me a statement that had 6% is not applied because it does not apply to also been prepared by the same Deputy administered assets. It is really quite a simple Under Treasurer in relation to the operation of arrangement. the equity return. One might ask: what is the incentive for For all honourable members, I will refer to departments? It is up to departments to the following words that had been penned by decide about how best they manage their the Deputy Under Treasurer— assets. There is no compulsion for departments to make decisions about their "The return is calculated as a assets. However, should departments decide percentage of an agency's net assets to dispose of certain assets that they control, (Total assets less total liabilities). The rate then they would retain a benefit as a result. I for 1999-2000 is 6%. The same rate of think members on both sides of the Chamber, 6% will be used for all departments and particularly those who have been Ministers in applied to the department's controlled net line departments, would well remember plenty asset base. Payment of the equity return of battles with Treasuries—it does not matter will be made on a quarterly basis. The which party is in power—over the retention of way it is allocated to outputs will depend moneys derived from the sale of assets. This is on agency costing methodology. a way of ensuring that departments retain Because departments are fully benefits from assets that they seek to dispose funded for the agreed cost of services, an of, assets that they consider to be of a low amount equivalent to the equity return priority. There is no imperative in any of these has been included in each department's arrangements for any department to dispose recurrent appropriation for 1999-2000 and of any asset whatsoever. I commend Mr is built into the Forward Estimates base in Gray's words to all members. the outyears, at the same level as in Mr SPRINGBORG: Nothing that I have 1999-2000. In following years, as and heard from the Treasurer in the past five to six when a department is given an equity minutes has in any way allayed the concerns injection to increase its asset base, its that I originally had when I spoke in this place budget will recognise the resulting about half an hour ago. We have just heard increase in recurrent costs and will be the Treasurer confirm that we are still going to increased accordingly by 6% of the equity have a community service assets test. Only a injection." minute or so ago, the Treasurer also admitted I think that those points, which were put that there is an incentive for a department to together by the Deputy Under Treasurer, dispose of any assets that it believes to be should clarify beyond all doubt as to the inefficient or not in the department's best operation of the equity return. It is not like the interests to keep. That is code for the fact that hospital charge that Mr Horan knows very well. assets that are community service obligation It is not a one-way extraction of funds from assets in the true sense—that is, assets that departments. The point that I would the Government in this State is responsible for make—and this is to help, for example, the administering—are going to be disposed of or 4578 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 closed down. That is the simple reality. There courthouses. He gave heart to the people of is no other way of reading that. We know what the affected regions. He gave them room to this means. We know that it refers to assets believe that Government was interested in the that are controlled by departments. We have services that they needed in their known that since the day we had the briefing communities. with the Treasury officers. That is obvious from As a result of this provision, the portfolio the Budget papers. that I shadow, Justice and Attorney-General, Mr Hamill interjected. will be suddenly pressured, directly or indirectly, to start looking at the viability of courthouses Mr SPRINGBORG: I can tell the Treasurer around the State. Perhaps the department will that it is very obvious to me. In the Treasurer's have to look at closing some of the own words, we are talking about an incentive courthouses that we reopened, some of which for the departments to consider disposing of are also Government agencies in this State. assets that they do not believe are making the That is what this is all about. correct return to the State or that are a cost to the State. That is what this means. There are There is no way that the Treasurer can no ifs, buts or maybes. That is the basis of our talk about incentives to better manage assets. concern. That means that we have to start applying private enterprise principles, just as Microsoft, That is not what government is about; General Electric and others do. That is not government is about delivering services. As what Government is about at all. Government soon as one starts delivering services through is about providing services for people through assets such as courthouses, police stations, the maintenance of assets in regard to which it schools, railway lines or whatever the case has a community service obligation. This may be, one starts picking winners and losers. community service assets tax will strip away One starts discriminating against areas, the heart and motivation of Government. whether it be in the suburbs or the regions. One could easily draw a line and say, "Private Time expired. enterprise might not be able to make this pay, Mr NELSON: I wish to pick up the thread so why should we make it pay?" However, we of what the member for Warwick has said. I are not dealing with private enterprise take up the very important points that he concepts, and nor should we. made. We should all take heed of his stern wisdom on this subject. He has been a I take honourable members of this member of the House since a young age and Parliament back about only 10 years to when he has learnt a lot. the Goss Labor Government was elected. What the Treasurer is doing here tonight—and Recently, the Minister made some very he is being tacitly supported in his endeavours pointed allegations that I had not raised a to bring in this iniquitous 6% community certain matter. Again, the Minister has plainly service assets tax, which has been dressed up and clearly misled the Parliament. It is very as some sort of equity charge—will take us unfortunate that I have to stand up and do back to that time. The first action of the Goss this— Government when it came to power is about to Mr HAMILL: I rise to a point of order. My be repeated in a provision in this legislation statement was that the member never raised which is going to be passed tonight. the matter regarding the Malanda High School with me for the past 13 months. He has The first thing that the Goss Government alleged that I misled the House. That is not did was to close down 26 courthouses only untrue but it is also offensive. I ask for it to because they did not pay. Those courthouses be withdrawn. had no role to play in the community service obligation of that Government. Perhaps those The CHAIRMAN: The Minister finds the courts heard only 40 cases a month, but the remarks offensive and asks that they be Goss Government did not consider that the withdrawn. next closest courthouse may have been 200 Mr NELSON: Mr Chairman, I find it very kilometres or 300 kilometres up the road. That hard to withdraw them when I hold in my hand Government did not care at all for the people a document dated 16 September—actually, it who relied upon those courthouses to provide is from Hansard—which shows that I raised the a whole range of services. When we came matter with the Minister in my speech during back into Government, we did not have an the Budget debate. I will quote from Hansard iniquitous 6% community service assets tax to clear this matter up. dressed up as an equity charge. When the The CHAIRMAN: The member need not honourable member for Indooroopilly was bother. He will withdraw under Standing Attorney-General, he reopened many of the Orders. 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4579

Mr NELSON: I withdraw the words that The CHAIRMAN: Under Standing Orders, the Minister finds offensive. I will quote from I ask the honourable member for Tablelands the speech that I made during the debate on to withdraw the remarks. the Budget on 16 September 1999. Page Mr NELSON: I withdraw whatever the 4081 of Hansard, which I will table, states— Minister finds offensive. I withdraw "Again, I am sure that if members emphatically. look at Hansard they will see that the The CHAIRMAN: I will now hear the member for Ipswich, who at the time was second point of order from the Treasurer. the Treasurer, stood up and said that that would be done." Mr HAMILL: I rise to a point of order. Mr Chairman, I now draw to your attention the That was a reference to the high school. I went snide remarks from the Leader of the on to say— Opposition, who implied that I told untruths to "It has not been done. That is not letting the House. Again, that is offensive. I ask for it me down; that is letting down the people to be withdrawn. of Malanda. I guarantee that those The CHAIRMAN: Before I comment on people know that." the remarks, I will say this: I am in the chair in That proves that I did raise this issue. this Chamber and the colourful language from both sides—the adjectives and other words I took the Minister to be a man of his that are being used—is not parliamentary. I word, as I was told he was by people who object to it. I am sure that the Parliament know him. I gave him the 12 months that he objects to it. The Treasurer has asked the said he would do it in. I actually thought of Leader of the Opposition to withdraw his raising the issue at the end of 1998, but I remarks. thought, "No, the Minister said a year. The Minister said that he would get it done this Mr BORBIDGE: Mr Speaker, I do so. The year." I thought that he meant the financial Hansard record speaks for itself and I am year. Being a man of my word, I let that go. happy for the Members' Ethics and The financial year passed and I raised the Parliamentary Privileges Committee to have a issue in September in my speech during the look at this. Budget debate. The Minister misled the House Mr NELSON: Mr Chairman, I would like to when he said that I did not raise it again. I did. go on. Referring to— Mr HAMILL: I rise to a point of order. The CHAIRMAN: No. I take it that the The CHAIRMAN: Order! This debate is honourable member is now going on with his being sidetracked. The issues that the speech? member is currently raising bear no Mr NELSON: Yes, Mr Chairman. I wish to relationship to the amendment moved by the refer again to fairness, understanding and Leader of the Opposition. trust. I certainly speak on behalf of the people Mr BORBIDGE: I rise to a point of order. If of Malanda when I say that I do not trust the Treasurer. Tonight in this Chamber he has that is the case, the comments made by the proven that he is totally unwilling to take Treasurer when he attacked the honourable responsibility for his actions in this matter. How member also bore no relation to the could I tell my constituents that I supported the amendment that I moved. In light of the fact that it appears that the Treasurer has misled Treasurer on this issue? I will definitely support the House, it would appear to be fair that the the Leader of the Opposition in this case, honourable member for Tablelands be allowed because he has shown himself to be an to respond, particularly when the Hansard honourable man, and the Treasurer certainly record shows that the honourable member for has not. Tablelands is telling the truth, even if the Mr HORAN: The more the Treasurer tries Treasurer is not. to explain away this assets tax the more he Mr HAMILL: I rise to a point of order. I gets his feet on the sticky paper. In common have two points of order. Firstly— with my colleague from Toowoomba North, I wish to read out some of the definitions in the The CHAIRMAN: The member for briefing document given to us before the Tablelands will resume his seat. Budget was brought down. "Equity return" is Mr HAMILL: The comments of the defined as— member for Tablelands that I misled the "A periodic payment reflecting the House are offensive and untrue, and I ask for potential benefit forgone"— them to be withdrawn. that is the important word— 4580 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999

"by Government as a result of its assets is to have a zero net increase. In other investment in the equity of an agency. words, if their assets go up by $100m, they One of a number of balance sheet should flog off $100m worth of what the incentives, it is designed to encourage Treasurer calls lazy assets. We know that that agencies to maintain a capital structure is not possible. How would the Police Service appropriate for the delivery of services." sell off horse paddocks in the bush or ground I asked a question of a Treasury official about reserved for a police station somewhere? How funding and I wrote down the following note of would Education sell off $100m worth of his response— schools? How would the national parks be sold off? "Fully funded this year, but not next year." Firstly, Ministers have to decide what they will sell off or get rid of to reduce the net "Equity" is defined as follows— increase in assets in order to reduce the total "The surplus of assets over liabilities. amount of assets tax they have to pay. When It represents the Government's net their assets tax has been determined, they financial interest in an agency." have to find the money to pay the assets tax. "Assets" are defined as follows— There are only two ways to do that—flog off something more or go to the recurrent budget, "The physical and non-physical items which is what will happen. We will see services with an expected life greater than one reduced and programs delayed. The projects year that an agency owns and/or controls, in the Budget will not even be started. They will and that are used in the delivery of be let go until the 12th month. services. Examples include buildings, X- ray machines, school laboratory This is a dishonest tax. Irrespective of how equipment and computer hardware and the Treasurer tries to describe it, it will be software." payable and it will not be funded next year. It will be funded only this year. All Labor Once we work out our assets, we take away members have been conned into this. This is our liabilities from our assets. The periodic about Premier Beattie getting together a little payment reflects the benefit that has been forgone by Treasury. That is what this is all cash slush fund to pay for a few things such as about. I want the Treasurer to listen to what I the Roma Street parklands or Lang Park, or for have to say, because he must explain to this a slush fund for the next election. Where will Chamber what he meant in his first speech that slush fund come from? Out of the pockets when he stated that "if the department does of Queensland taxpayers, who will have their nothing, it must repay 6% of that added capital services reduced! Police and teaching services will be reduced. Overtime will be cut back. throughout the year". That is what he said. I Programs will be delayed. Small schools and wrote it down. It will be in Hansard tomorrow anything else that is not in Labor Party morning. In other words, they have to pay 6% electorates will be closed down. of the added capital throughout the year. But in his previous speech he also went on to say Time expired. that the payment has to be on a quarterly Mr QUINN: The problem that this side of basis. He has also spoken about the fact that the Chamber has with the equity return is that this is an incentives system. Members on both we are getting two stories. We are getting one sides of the Chamber would agree with me explanation from the public servants and we when I say that the Treasurer tried to tell this are getting another explanation from the Chamber that this is an incentive. He tried to Treasurer. At the briefing with senior con us into thinking that the money would be departmental officers from Treasury that paid in and that they would pay exactly the honourable members were given prior to the same amount of money out. The mind Budget being brought down it was made plain boggles. This is the National Competition to all members that the equity return was fully Policy gone mad. It is the Beattie version of funded in this Budget but unfunded in the next the National Competition Policy. Budget. When we think about what the equity We do not believe that this will be funded, return is designed to achieve we see that the because the Treasury official told us at the only way that it can work in terms of providing briefing that it was funded only up to this year. incentives is if it is unfunded. All of the That is the $1.8 billion that came in and explanations that the Treasurer has given here cancelled itself out in this year's Budget. Next tonight are gobbledegook. They do not make year it will not be funded. That is the truth. The any sense. They would not offer any incentives only way that departments can get out of to the various departments in terms of what paying the 6% tax on the net increase in their the Treasurer is trying to achieve. We are 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4581 getting two messages—one from the public servants agreed about what it involves. Treasurer and one from the public servants. The person who is at odds with them is the I mentioned the fact that at the briefing Treasurer. He is sending mixed signals, prior to the Budget the senior Treasury officials because he has been forced to change the explained the equity return, how it was meant basis on which the equity return is calculated to operate and the fact that it was unfunded in and how it is meant to apply. This side has next year's Budget. In Estimates Committee F, been accurate in its portrayal of how it is when a question was asked of a senior meant to apply. The confusion has come from departmental officer from the Education the Treasurer. He has been caught out Department about the equity return, she changing the basis after the briefing was given provided the explanation that it was in the to members of Parliament. context of a suite of incentives. We have to The other point I wish to raise is the bear in mind the explanation that the percentage applied. When we were at the Treasurer gave a moment ago in trying to briefing with the Treasury officials, they made it describe how the equity return would work. He quite plain to us that the equity return was a said that it involved a retention of a cost of opportunity tax applied to the percentage of the proceeds from asset sales. I department; in other words, it was what the will read what the senior public servant from Treasury could have got if it had put its money Education said in terms of the equity return on something such as the overnight money and its context. She stated— market instead of giving it to the various departments. That is why it is set at 6%: it is "In addition to the equity return, the roughly equivalent to interest rates. The incentives, including the payment of question the Treasurer has to answer is: as interest on cash balances, the retention of interest rates move, what is going to happen operating surpluses and the retention of to the equity return percentage? We are in a proceeds from asset sales subject to historic period in which we have low interest CBRC approval, form a balanced set of incentives that are designed to reward rates. Interest rates are now forecast to move best practice financial management." upwards. Will the equity return next year start to jump up in line with the cost of opportunity? The Treasurer said that the equity return In other words, will it go to 7% and the next involved a retention of a percentage of the year to 8%? It is the cost of using the proceeds from asset sales. The senior public money—quite true. servant commented that the retention of asset Time expired. sales is one of a number of incentives in the suite. Therefore, we have two positions. We Question—That Mr Borbidge's have the department being able to retain the amendment be agreed to—put; and the full asset sales. However, the Treasurer is Committee divided— saying that the equity return is a percentage of AYES, 38—Beanland, Black, Borbidge, Cooper, E. those asset sales. Where is the sense in that? Cunningham, Dalgleish, Davidson, Elliott, Feldman, Where is the sense in the department selling Gamin, Goss, Grice, Healy, Horan, Johnson, something, getting a percentage of it and then Kingston, Knuth, Laming, Lester, Lingard, keeping the full amount of the asset sale? Littleproud, Malone, Mitchell, Nelson, Paff, Pratt, That is why this side of the Chamber has Prenzler, Quinn, Rowell, Seeney, Simpson, Springborg, Stephan, Turner, Veivers, Watson. concerns about what the Treasurer is saying. Tellers: Baumann, Hegarty We are getting mixed explanations. We are NOES, 40—Barton, Bligh, Boyle, Braddy, getting different explanations from those given Bredhauer, Briskey, Clark, Edmond, Elder, Fenlon, by the public servants. Foley, Fouras, Gibbs, Hamill, Hayward, Hollis, Mr Chairman, you can see why we are Lavarch, Mackenroth, McGrady, Mickel, Mulherin, concerned about the impact of the equity Musgrove, Nelson-Carr, Nuttall, Palaszczuk, Pearce, return. We cannot get a straight answer from Pitt, Reeves, Reynolds, Roberts, Rose, Schwarten, the Treasurer. We are getting confused Spence, Struthers, Welford, Wellington, Wells, Wilson. Tellers: Sullivan, Purcell answers. I suspect that the answer was as given to us by the senior Treasury officials the Resolved in the negative. first time. And as a result of public concern, Mr BORBIDGE: I move the following particularly on this side and on the backbench amendment— of the Labor Party, there has been a change "At page 4, line 9, after '1999'— of heart. Then he has tried to cobble together a different explanation of what the equity insert— return was all about. That is why we have ', less the amount relating to equity confusion in the Chamber tonight. The senior returns for the department,'." 4582 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999

I am not going to unduly delay the Mr HAMILL: Mr Chairman, I rise to a point Committee because clearly this is a of order. The claim made by the Leader of the consequential amendment further to the Opposition in relation to the awarding of an debate that the Committee has just had. interactive gambling licence is not only However, I will make a couple of observations. offensive but also untrue. It was found to be Those observations are very simple. Each and so not by me but by the Auditor-General and every member who voted for the 6% tax will the Criminal Justice Commission. I ask for it to pay a political penalty at the next election be withdrawn. because, as it starts to bite and as those Mr BORBIDGE: If the honourable schools, police stations, hospitals and member finds it offensive I will withdraw. I will recreation camps are affected, we will be substitute: he gave a cyber casino licence to doorknocking and letterbox dropping every members of the Queensland Labor Party. marginal seat of every member who tonight has committed, in my view, one of the most Mr HAMILL: Mr Chairman, I rise to a point dishonest and deceitful acts of political of order. The Leader of the Opposition skulduggery that this State has seen in a long continues to mislead the Chamber. The time. Leader of the Opposition makes claims which are offensive and untrue and which are seen Government members interjected. to be untrue by the independent inquiries of Mr BORBIDGE: If honourable members both the Auditor-General and the Criminal opposite want to string the debate out, Justice Commission. I ask for them to be honourable members on this side of the withdrawn. House are more than happy to do that. That is Mr BORBIDGE: If the honourable not our intention at this stage, but if that is member finds it offensive, I will withdraw and what they want, we are more than happy to substitute: he issued cyber casino licences to oblige. people, including members of the Queensland I just want to make the point that nothing Labor Party. that the Treasurer said tonight convinced us Mr HAMILL: Mr Chairman, I rise to a point that we are wrong. Nothing that the Treasurer of order. I will not lower myself to the standards said tonight convinced us that he is right. In of the Leader of the Opposition, however— fact, I think the Government might have learnt a lesson from this entire exercise, because it The CHAIRMAN: Order! I ask the Leader provided a background briefing on the Budget of the Opposition to withdraw under Standing by independent, effective and efficient officers Orders. of the Treasury who then proceeded to answer Mr BORBIDGE: Mr Chairman, with questions honestly and openly. Of course, as respect, I would suggest that you have a those Treasury officers started to respond, we conflict of interest. saw the Government members going whiter The CHAIRMAN: If that be the case, I will and whiter and whiter, because the Treasury leave the chair. officers told it not as the Treasurer told the Mr HAMILL: Has the Leader of the Parliament tonight, but they told it as it was. Opposition withdrawn? Mr Chairman, I asked Even if we accept the quite tortured logic for the remarks in relation to me to be of the Treasurer that somehow this is a good withdrawn. I ask the Leader of the Opposition idea, which we do not accept, and that this to withdraw unreservedly, according to the particular 6% equity tax or capital tax or Beattie Standing Orders. stealth tax is fully funded, then it serves no Mr BORBIDGE: What does the Minister purpose. It is neither an incentive nor a find offensive? disincentive. It is a book entry. If it is fully funded, they destroy their own arguments. The CHAIRMAN: The Minister is asking There is no logic even if we accept the twisted that the remarks he finds offensive to himself logic that the Treasurer has tried to put before be withdrawn under the Standing Orders. I ask the Parliament this evening. you to withdraw. What we have is a legacy from the man Mr BORBIDGE: I am pleased to do so if who tried to close down one third of the the Treasurer would advise me which remarks Queensland Rail network—a man whose he finds offensive. legacy to the south side of Brisbane was a The CHAIRMAN: The Leader of the koala tunnel, a man whose legacy to this term Opposition knows the Standing Orders as well of the Parliament was a cyber casino licence to as anybody and that is not required under the his mates—and what we have is a Treasurer Standing Orders. He will withdraw the remarks. who is continuing his form. He knows the Standing Orders and he knows 28 Oct 1999 Appropriation (Parliament) Bill; Appropriation Bill 4583 that he has to withdraw the remarks this particular capital tax or equity tax or unequivocally. Beattie stealth tax in the first place? Mr BORBIDGE: I am happy to withdraw, Time expired. but I will substitute my remarks with the Mr HORAN: In debating this amendment comment that the Treasurer issued a cyber we are going over the same detail. This needs casino licence to companies associated with to be explained again and again, because we Labor Party identities, including the member have not had an accurate and correct answer for Woodridge. That is a statement of fact and from the Treasurer. Every time he has got to that is the track record of this Treasurer in this his feet he has given us a different view. place. That is the form of this Treasurer in this place. What we are seeing tonight is a Mr Elder interjected. continuation of that form—a continuation of Mr HORAN: The Deputy Premier is part of the policies and strategies of a man who is a the Cabinet that accepted this. His massive political liability to the Labor Party in backbenchers did not know about this. He this State. Nothing in respect of those should have been at the briefing. particular issues can change the facts that are We had the Treasurer tell us that the fully documented. return is calculated on 6% of the total assets This is all about honourable members minus the total liability. The Treasurer has told opposite being conned or deceived, not us that payment is on a quarterly basis. We knowing or being naive in respect of the have had the Treasury officials tell us that the implementation of a new 6% tax—a tax on payment was fully funded for this year and that every road, school, recreation camp, hospital, there was no payment for next year. The operating theatre, hospital bed, police station, Treasurer has the gall to come in here and try classroom and bridge from one end of to tell us that this is some sort of incentive Queensland to the other. system whereby all of the 6% will be paid in and then they are going to pay out the 6%. He Since about half past four this afternoon calls that some sort of an incentive system. the Parliament has been waiting for an The Treasurer is the man who, when he was explanation from the Treasurer. It has not Minister for Transport, turned the people been forthcoming. The Treasurer has against the Goss Government. contradicted himself. He has contradicted his Government members interjected. Treasury officers at the briefing on the Budget that was provided to members from both sides Opposition members interjected. of the Chamber. Tonight we have heard a The CHAIRMAN: Order! The crossfire will litany of untruths from the Treasurer. We have cease. had the allegation— Mr Cooper interjected. Mr HAMILL: Mr Chairman, I rise to a point Mr Elder interjected. of order. The false and offensive claim by the The CHAIRMAN: Order! The honourable Leader of the Opposition is such that I ask that member for Crows Nest and the Honourable it be withdrawn according to the Standing Deputy Premier! We wish to hear the member Orders. There have been no untruths uttered who is speaking. I call the member for by me at all in relation to this debate or any Toowoomba South. other matter. Mr HORAN: If there was a turning point in The CHAIRMAN: I ask the Leader of the the term of the Goss Government, it was the Opposition to withdraw. attempted closure of the Winton railway line. Mr BORBIDGE: I withdraw. We had the That was when one could palpably feel false allegation that this was the creation of throughout Queensland that people had the previous Government. We had the woken up to what was happening—how the documentation provided by the member for lines were being ripped up, how courthouses Merrimac that it was an invention of this were being closed down and how services in Government, perpetrated by this Government. rural Queensland were being removed. That We had the attempt to blame it on the was the turning point. But the icing on the Commission of Audit. The Treasurer knew that cake was when this same Treasurer, the then to be totally and absolutely false. Then we Minister for Transport, put forward that heard perhaps the greatest falsity we have proposal for his teddy bear tunnel and the had from the man who is Treasurer of this highway through koala country. State. If as he says it is fully funded—Treasury Now we see a mistake that is as stupid says that it is not fully funded—then why have and as blundering as one could possibly 4584 Appropriation (Parliament) Bill; Appropriation Bill 28 Oct 1999 imagine. How can all those backbenchers notice that and no-one will feel it. But they will blindly support this? I saw their faces at the notice it, because we will tell them, and they briefing; they went ashen. And the member for will feel it. Sandgate, who was the chairman of the So the Government is going to get this committee, tried to guillotine the whole thing extra money. It has found a new source of because the questions were embarrassing and revenue: a 6% asset tax, which will deliver—we the answers that were coming accurately from calculate—somewhere between $200m and Treasury officials were embarrassing. Members $300m a year. I can tell members that it is opposite could see it unfolding. They could not going to cost the Police Department in the believe their ears. They were hearing about a order of $5.5m, and Corrective Services 6% asset tax on departments; that as they got $5.1m, on the basis of their answers during their funding for capital equipment, and as the Estimates hearing. The Government has they spent $100m during the year and found a new source of money for its slush increased the net asset value of their fund. That is the rationale behind this. It is departments, that would make them liable for taking money out of its own pockets. It is like a 6% tax on the increase in that net asset saying to someone who has signed up with a value, less whatever assets they could football team, "You are going to get $400 a manage to sell off, thereby reducing the game, but there is a 6% performance dividend increase in that net asset value. on it. You won't actually get $400, because we As I said in my previous speech, the result will take $24 out of it before we actually give it of all this will be that departments will to you." endeavour to reduce their net asset value so that the 6% that they pay is as small as Mr Veivers: And next year. possible. That means that they will sell off Mr HORAN: And next year they will do it everything possible to reduce the net increase again and again and again. So the footy club in their assets. We know the dangers there. that is paying out $400 a player per win is We know what will happen. It will happen in actually paying out only $376 per player. The the rural and regional electorates. But not only players think they are getting $400—because that, it will happen in the towns and suburbs, it was in the contract—but the club is saving too; school grounds will go, spare ground that itself $24 per player. So it will have all this extra is available for anything else will go, buildings money with which it can buy another player or will go, and anything else that is of use will go. another coach. And if Mr Beattie was the Secondly, once the net asset value is president of the club, he would go out on a determined and once the department has to propaganda campaign and buy some more make, in the next financial year, its quarterly journalists, more TV ads and so on. payments of the 6% asset tax to Treasury, Mr Borbidge: Can you say that again a then it has to find the money. And where will it bit slower? The Treasurer is trying to follow it. find it? There are only two sources: sell off Mr HORAN: I do not think he understands something else, or reduce the recurrent football analogies. Maybe if I said it was the budget by that amount. We will see delaying Oxford dominos team or a croquet team, he tactics. New programs that are espoused in might understand. But I was putting it in terms the Budget will not start until later in the that the average person would understand. financial year. Overtime will be denied. Every old trick in the book will be used to find and The uncovering of this tax during the save that $3m, $4m, $5m, $10m, $12m, Budget process has been something that $15m or $20m that that department has to members of the Labor Government did not find. expect. As the Opposition Leader said, I doubt that we will get as comprehensive and as What is it for? This asset tax penalty on accurate a briefing as this ever again, because each and every department is simply to build normally they like to do it themselves, and they up the slush fund for the Premier, because he would have pulled the wool over our eyes. But has realised that, in relation to all the promises fortunately, we have all the explanations there that his Government is making—all the in black and white. unfunded promises—it does not have the cash to do it. It is not prepared. Its only income is Next year, Queenslanders will be faced from the Commonwealth Government or its with a real reduction in services as each and own receipts. The Government is not game to every department, quietly and stealthily, finds increase taxes. But if it wins the next election, the few million dollars that it has to find to pay it will whack up the taxes. But in the meantime, its 6% asset tax which, as the Treasurer said, instead of increasing taxes, it will tax the will be due and payable on a quarterly basis. departments, and it thinks that no-one will The Treasurer confirmed that the payments will 28 Oct 1999 Revenue and Other Legislation Amendment Bill (No. 2) 4585 be on a quarterly basis. I thought they would Schedules 1 to 3, as read, agreed to. be made on 1 July. He said the payments Bills reported, without amendment. would be made on a quarterly basis. So every quarter, the departments have to make sure that they have a few million dollars out of their Third Reading existing budgets— Bills, on motion of Mr Hamill, by leave, Mr Springborg: You sack your nurses on read a third time. a quarterly basis. Mr HORAN: That is correct. The Ministers will have no say in this, because the Treasury REVENUE AND OTHER LEGISLATION will just take it. It will just come straight out. We AMENDMENT BILL (No. 2) will see a reduction in recurrent budget funds. Second Reading We will also see more selling off of current Resumed from 21 July (see p. 2766). assets in order to pay this asset charge. And on top of that, before that even starts, we will Dr WATSON (Moggill—LP) (Leader of the have seen the selling off of assets as Liberal Party) (10.14 p.m.): I am pleased to departments endeavour to reduce the net rise to speak on the Revenue and Other increase in assets so that the totality of the 6% Legislation Amendment Bill. I am sure that the tax is less. Treasurer will be happy to know that this debate will be much shorter than the previous Mr Rowell interjected. one. Mr HORAN: That is the point. Another This Bill proposes amendments which fall reason that the Government is trying to get into two categories. In the first category the this money is to meet the Budget deficit—the amendments are occasioned because of $1.2 billion, $400m of which is Government judicial decisions. The Government seeks to debt and $800m of which is Government maintain the status quo of the particular Acts owned corporation debt. That is probably what before those judicial decisions were made. The the money is going to go to—not to anything legislation involves amendments to the Stamp useful, like capital works. It will probably go to Act and to the Payroll Tax Act. These pay off the Beattie debt that we have seen in amendments have been brought about this Budget. This is bad politics. It is bad policy. because of the decision in the case involving It is probably one of the most stupid examples Allders International. That was a matter which of economic rationalism gone mad and involved businesses that are conducted on politicians who do not understand what the Commonwealth property paying State taxes. public want. They have been conned by We have amendments to the Stamp Act with Treasury bureaucrats to fund the Premier's respect to reassessments. We also have slush fund. changes to the Land Tax Act as a result of the Time expired. decision in the matter of Tattersalls Club v. The Question—That Mr Borbidge's Commissioner of Taxation. These changes amendment be agreed to—put; and the have been made necessary because of Committee divided— judicial decisions at either the State or Commonwealth level. AYES, 37—Beanland, Black, Borbidge, Cooper, E. Cunningham, Dalgleish, Davidson, Feldman, Gamin, The second category of changes Goss, Grice, Healy, Horan, Johnson, Kingston, introduced by this legislation relates to Knuth, Laming, Lester, Lingard, Littleproud, Malone, changes in the Commonwealth law and Mitchell, Nelson, Paff, Pratt, Prenzler, Quinn, Rowell, attempts to more efficiently administer laws Seeney, Simpson, Springborg, Stephan, Turner, which have been affected by changes in Veivers, Watson. Tellers: Baumann, Hegarty Commonwealth law. In this particular category NOES, 40—Barton, Bligh, Boyle, Braddy, the major area concerns the Commonwealth Bredhauer, Briskey, Clark, Edmond, Elder, Fenlon, Managed Investments Act 1998, and the flow- Foley, Fouras, Gibbs, Hamill, Hayward, Hollis, on effects of that Federal legislation into the Lavarch, Mackenroth, McGrady, Mickel, Mulherin, Stamp Act and the Payroll Tax Act. The Musgrove, Nelson-Carr, Nuttall, Palaszczuk, Pearce, Pitt, Reeves, Reynolds, Roberts, Rose, Schwarten, purpose of this legislation is to ensure that Spence, Struthers, Welford, Wellington, Wells, Queenslanders are not financially Wilson. Tellers: Sullivan, Purcell disadvantaged when complying with the new Commonwealth requirements. Resolved in the negative. In addition, the legislation introduces Clause 2, as read, agreed to. changes which ensure that we have better Clauses 3 to 6, as read, agreed to. arrangements with the Customs Department in 4586 Sugar Industry Bill 28 Oct 1999 the implementation of the Fuel Subsidy Act because of an error made during drafting by 1997. Parliamentary Counsel. The changes introduced by this legislation Now that the amendments have are really refinements. The refinement of appeared, as members would see, they all legislation is a never-ending process. This will relate to clause 36. As I just outlined, the not be the last such Bill before this House. In amendments are necessary because of a principle, the Opposition does not find itself at drafting error in the Parliamentary Counsel's variance with the Government and we will Office. It is a case of correcting the numbering support the Bill. for the subsections applying to that particular Hon. D. J. HAMILL (Ipswich—ALP) clause. (Treasurer) (10.19 p.m.), in reply: I thank the Amendments agreed to. Leader of the Liberal Party for his support of Clause 36, as amended, agreed to. these measures. They are sound measures, and they are measures which facilitate the Clauses 37 and 38, as read, agreed to. more efficient operation of our revenue base. I Schedule, as read, agreed to. commend the Bill to the House. Bill reported, with amendments. Motion agreed to. Third Reading Committee Bill, on motion of Mr Hamill, by leave, read Hon. D. J. HAMILL (Ipswich—ALP) a third time. (Treasurer) in charge of the Bill. Clauses 1 to 35, as read, agreed to. SUGAR INDUSTRY BILL Clause 36— Resumption of Committee Mr HAMILL (10.20 p.m.): I move the Hon. H. PALASZCZUK (Inala—ALP) following amendments— (Minister for Primary Industries) in charge of "At page 25, line 24, '(7)'— the Bill. omit, insert— Resumed on clause 17 from 26 October (see p. 4340). '(8)'. Mr PALASZCZUK (10.23 p.m.): Mr At page 26, line 7, '(8)'— Chairman, in response to the amendment omit, insert— moved by the honourable member for '(9)'. Burdekin, I can say that I see where he is coming from. However, the Government has At page 26, line 18, '(9)'— proposed an amendment that makes the omit, insert— position perfectly clear. I suggest that the '(10)'." honourable member reconsider his amendment. I understand that his concern is I understood that amendments had been legitimate, but he should rest assured that it circulated. However, I will speak to the matters has been addressed by the Government's in question. The amendments amend clause amendment. 36 of the Revenue and Other Legislation Amendment Bill (No. 2) to correct subsection The Government's amendment is to be numbering for section 35B of the Stamp Act preferred since it makes clear that any 1894. The three new subsections for section cancellation or variation of a cane production 35B of the Stamp Act 1894 are being inserted area has no effect on the obligations under by this Bill. Parliamentary Counsel incorrectly the supply agreement of anyone bound by the commenced the numbering at subsection 6 supply agreement. Furthermore, the specific rather than at subsection 8. This is very much wording of the Government's amendment has a machinery amendment to address the been approved by Canegrowers and the renumbering to ensure that the subsection Australian Sugar Milling Council. The numbering for section 35B is correct. Government's amendment was prompted by the concern of both Canegrowers and the Mr Horan interjected. Australian Canefarmers Association in order to Mr HAMILL: No, I understood that the state more clearly that the cancellation of amendments had been circulated, and I variation of a cane production area has no apologise if they have not. They are simple effect on the obligations of anyone bound by renumberings in relation to the section the supply agreement. It is not open to 28 Oct 1999 Sugar Industry Bill 4587 misinterpretation as to who is bound by the (c) each person having title to, or supply agreement. For an individual interest in, the mill or the land from agreement, it is the grower and the mill owner. which cane is to be supplied to the For a collective agreement, the amendment mill, or the cane." makes a footnote reference to clause 43. If the honourable member for Burdekin puts Mr KNUTH: In response to the Minister's clause 43 and clause 17 together, I believe amendment, I might be looking at this in a that his concerns will be answered. different way, but I still fail to see— Amendment negatived. The CHAIRMAN: I remind the member for Burdekin that we are discussing his Mr PALASZCZUK: I move the following amendment No. 5. amendment— Mr KNUTH: Yes, but the Minister just "At page 24, lines 28 to 32— replied that it is covered in his amendment. I omit, insert— fail to see how a grower can still prosecute a 'on the obligations under the supply miller if an event occurred. agreement of anyone bound by it.1'. The Explanatory Notes to the Bill state— 1 In relation to collective agreements, see "The principle objective of the Bill is section 43 (Collective agreement— to facilitate an internationally competitive, effect)." export oriented sugar industry based on sustainable production that benefits both Amendment agreed to. the persons involved in the sugar industry Clause 17, as amended, agreed to. and the wider community." Clauses 18 to 20, as read, agreed to. As it clearly states, the Bill is supposed to Clause 21— benefit both persons involved. After two and a half months of consultation, local growers were Mr COOPER (10.33 p.m.): I have a query not convinced of the validity of the findings of for the Minister. We recognise that clause 21 Canegrowers Brisbane. The problem is that outlines the process of cane production boards Canegrowers Brisbane may have notified the calling for applications from growers for the Minister that it accepted some of his grant of unallocated hectares. Subclause (4) amendments to the Bill, but Canegrowers provides that, as provided for under a Burdekin still holds many reservations. regulation, the board must call for applications The other day the Minister accused me of from growers and, in response to the call, a listening to the ACFA. He has just admitted grower can apply to the board for a grant of that the ACFA prefers the Minister's unallocated hectares. As the process of calling amendment on clause 17 to my amendment. I for applications is not set out in the Bill but will think that perhaps the ACFA was more openly be detailed in the regulations, what process will contactable regarding this Bill than some be put in place for the calling of expressions of canegrower groups were. interest and by what means will growers be notified? Unfortunately, this Bill has pitted canegrower group against canegrower group. In that context, I draw the Minister's It has pitted farmer against canegrower and attention to clause 26(10), which specifically farmer against farmer. The growers in my provides that, in the case of the dispute electorate have indicated clearly to me that resolution process relating to mill productivity they are not happy with many sections of the increase applications, notification is by means Bill. Therefore, I cannot accept the Minister's of a notice in a local newspaper. I am simply response to clause 17. seeking some information about the process, because I am sure the Minister would agree Mr PALASZCZUK: To give the that this is an important provision. Growers will honourable member a little bit more only be able to participate if the public information, I suggest that he looks at clause notification process is handled correctly. Again, 43(1) of the Bill, which states— by what means will the growers be notified? "A collective agreement made for a mill is binding and enforceable in any Mr PALASZCZUK: In response to the court of competent jurisdiction as a honourable member's queries, I will cite the contract on— drafting instructions for the Sugar Industry Regulation 1999, as agreed by industry. (a) the mill owner; and Subclause (4) details the process by which a (b) each grower who enters, or who is current cane production board calls for taken to have entered into, the applications from growers for the grant of agreement; and unallocated hectares. The process is not to be 4588 Sugar Industry Bill 28 Oct 1999 overly prescriptive and is to include the expansion issues. On face value, that sounds following. The cane production board calls for fair enough. It is similar to the way that the applications by publication of a notice in a Industrial Relations Commission intervenes in newspaper likely to be read by people in the industrial disputes. However, we discover that, relevant mill area, or through some other under the Bill, a miller can unilaterally refuse to public medium in the board's local area abide by the arbitrator's decision and refuse to sufficient to bring the notice to the attention of increase its milling capacity. In the exact words people in the area. The notice must be of this Bill, "If the mill owner rejects the published in a way likely to ensure that people arbitrator's decision because the owner refuses in the area understand the purpose and to invest the capital necessary to carry out the content of the notice. The notice is to specify a decision, the arbitrator's decision is of no sufficient time frame within which applicants effect." This is a cop-out. are able to submit applications. I cannot stand by and pave such a The notice must provide details of a blatant one-way street for milling companies. contact person, telephone number and The way the Bill stands, a mill can agree to address so that people may contact them commit to expansion. To capitalise on the should they have any queries arising from the expansion plans the grower can invest notice. The notice must also make clear that: significant money preparing additional land for applications for unallocated hectares will not cane assignment, planting crops, watering necessarily be granted—the purpose of the them and so on. The mill can renege on its notice is to assess the real demand for expansion plans. However, there is little or no increased hectares in the mill area; following recourse for farmers to recoup their outlays. To receipt of all applications, the board will assess address this anomaly, the Bill must either the level of demand and refer it on to the remove the mill's escape clause or be relevant negotiating team, and; in assessing changed to allow the relevant mill suppliers the demand based on the applications, the committee to reject the arbitrator's decision board will consider the likelihood of the with no threat of penalty. It is for this reason application's success if unallocated hectares that I have moved the amendment. Once were available. amended, clause 23(4) would be balanced I believe that the drafting instructions of and read— the regulation that the honourable member "If the mill owner rejects the referred to and that I have just read should arbitrator's decision because the owner satisfy his query. refuses to invest the capital necessary to Mr KNUTH: I withdraw amendment No. 6 carry out the decision or if the mill circulated in my name. suppliers committee rejects the arbitrator's decision because it refuses to agree to The TEMPORARY CHAIRMAN (Mr the investment that growers would have Mickel): The member has not moved it, so to make to carry out the decision, the there is no need to withdraw it. arbitrator's decision is of no effect as a Clause 21, as read, agreed to. final decision of the negotiating team Clause 22, as read, agreed to. under section 184." The TEMPORARY CHAIRMAN: I ask for Further to this addition, subclauses (5), (6), (7), the indulgence of the honourable member for (8) and (9) must all be deleted. The reasons Burdekin. Can he give us an indication of the are as follows: firstly, if the arbitrator's decision amendments that he may not be proceeding is of no effect, then the expansion can with? happen; secondly, the intent and wording of the nominated subclauses only serve to Mr KNUTH: I will not proceed with confuse the fact that the arbitrator's decision is amendment No. 6 and amendment No. 7. of no effect. Once amended, this clause is far Clause 23— less confusing and now balances miller and Mr KNUTH (10.39 p.m.): I move the grower interests. following amendment— Mr PALASZCZUK: I find this amendment "At pages 29, lines 27 to 31 and difficult to understand. Is it the member's page 30, lines 1 to 16— intention to stop forever any chance of growers being able to transfer between mills, because omit." that is the effect of the honourable member's If it remains unamended, clause 23 allows amendment? This amendment would result in for an arbitrator to intervene when miller and growers being locked in to a mill and growers grower negotiating teams cannot agree on being unable to expand their cane production 28 Oct 1999 Sugar Industry Bill 4589 area. If growers show that there is a demand went to the Internet site of the Office of for unallocated hectares and if a mill owner Parliamentary Counsel and searched all of refuses to then make the necessary capital Queensland's consolidated Acts, subordinate investment to increase the mill's crushing legislation and current Bills. In a search of capacity, this amendment would mean that 5,612 documents for the use of the words there is no provision for an arbitration to "reasonably fair way", the Office of resolve the dispute between the grower and Parliamentary Counsel database came up with mill owner. Growers would then be unable to only one document that used those words, expand and would be bound to a mill that and that was this Bill. The granting of consent refuses to increase crushing capacity. If this notices is a potentially very important process amendment were to go through, there would and to provide in this clause that a cane be no basis on which the dispute between production board is to use a process which is growers and the mill owner regarding not even required to be fair but only expansion could be resolved. I would argue reasonably fair—whatever that means—seems that this amendment would result in a negative to be imprecise and substandard. Therefore, I outcome for the mill area's profitability and for ask the Minister: what is intended by this the economic position of the wider local area. requirement? Based on the research that we Furthermore, I reiterate that Canegrowers and have done, this standard is unique in the Australian Sugar Milling Council have Queensland legislation and subordinate agreed to the transferability as it is drafted in legislation. the Bill. Mr PALASZCZUK: As growers make Mr KNUTH: The Minister keeps referring applications mentioned in subsection (2), to the backing of the Australian Cane Farmers those applications might come in as a bundle and Canegrowers for this Bill. Effectively, I of 20 in the mailbox. Then a decision has to have no option other than to accept the be made about how they will be processed Minister's statement. and in which order. That is why the Bill is The TEMPORARY CHAIRMAN: Are you worded in such a way, that is, to give the seeking leave to withdraw your amendment? indication that it is going to be a reasonably fair way—not fair, but reasonably fair. It is then Mr KNUTH: Yes. up to people to decide how they will process Leave granted. those applications as they come in. Clause 23, as read, agreed to. Mr COOPER: I think the Minister takes my point. As I said, a search of 5,612 pieces of Clauses 24 to 26, as read, agreed to. legislation and subordinate legislation revealed Clause 27— that that expression has never previously been Mr COOPER (10.44 p.m.): Clause 27 used. I draw that to the attention of the deals with the process of moving cane supply Chamber. We will have to see how it works. It from an existing mill. The clause is a technical is unique and it is something that I do not think one dealing with the various steps that the should have been allowed to slip through. The growers and the relevant cane production Minister probably did not realise that this board have to follow. What concerns me is the expression has never been used before. It is wording of subclause (3), which provides— very difficult to work out what is meant by "reasonably fair". "As growers make applications mentioned in subsection (2), a reasonably Mr PALASZCZUK: I wish to explain this fair way of selecting each grower in priority fully to the honourable member. At the drafting to other growers must be used to move stage of the Bill, the draftsman was very consent notices." specific in requesting that the term "reasonably fair" be used as the wording in this Bill so as to I specifically draw the attention of the Minister take care of the example that I gave the to the words "reasonably fair way". The honourable member previously. subclause does not state that a cane production board has to use a fair method for Mr Cooper: That is interesting. prioritising growers in granting consent notices. Mr PALASZCZUK: It is. We would like some clarification of the quaint Mr ROWELL: At the end of the day, if term "reasonably fair way". Sometimes that there is going to be a movement from one mill can be a little unfair, a little tainted with bias area to the other, I think it really comes down and display a lack of professionalism. It is to the fact that the receiving mill also has to leaving it a bit open. decide what capacity it has. I think there would To see what other Queensland legislation be a little bit more to it than "a reasonably fair or subordinate legislation uses this language I way" because I think it would be at the 4590 Sugar Industry Bill 28 Oct 1999 discretion to some degree—or it should be, Mr PALASZCZUK: The term "reasonably anyway—of the receiving mill and also the mill fair" means basically that it is fair in all the that is going to lose that cane, because the circumstances, for example, assessing problems very often associated with transport applications in order of priority as far as that is have to be considered. possible. It is not possible if multiple I do not know that "a reasonably fair way" applications are received at the one time. That really covers that situation. There has to be is basically the reason why "reasonably fair" some ability, I think, for either mill to decide has been included as the wording, as I said which are the best areas for the sake of the previously, on the instructions of the transfers that may occur—which ones would parliamentary draftsmen. go and which ones would not. Who really Mr COOPER: Without belabouring the decides which is a reasonably fair way? Could point, I think we have made the point, and the the Minister indicate that? Who actually point is well and truly on the record. So if any decides which is a reasonably fair way? Would problems arise from this sort of interpretation it be the receiving mill or the mill that is going of "reasonably fair", I think we have made that to increase the area of cane that is coming to point and the Minister has put his point of view it? on the record. Perhaps this might still have to be clarified more fully in the future. But at least Mr PALASZCZUK: The honourable the Minister has given his explanation on the member mentioned mill one and mill two. record. So we will go with that. Quite obviously, mill two is open to make its own decision and the people who are involved Clause 27, as read, agreed to. can then apply to mill two if they want to. Clauses 28 to 30, as read, agreed to. Mr MALONE: We are dealing with Clause 31— legislation here and it seems to me that either Mr KNUTH (10.54 p.m.): I move the it is fair or it is unfair. "Reasonably fair" I do not following amendment— believe is a term that should be used in legislation. Quite frankly, as I said earlier, "At page 37, line 18, after 'years'— legislation is either fair or unfair. I would like a insert— more reasonable explanation from the ', other than because the grower has Minister. I know it is part of the drafting, but it experienced personal or financial just seems to me that in reasonably hardship, or because of natural disaster or prescriptive legislation the words "reasonably other emergency'." fair" do not seem to be held in context. I have said enough about the mill/grower Mr PALASZCZUK: I understand the point imbalance. I turn now to a trait that I believe is made by the honourable member for Mirani. poorly represented in this proposal, and that We are talking about a drafting situation here. trait is compassion. Only an ostrich that had I would just put this case before the had its head in the sand for the past six honourable member. I do not believe it is months would be oblivious to the dire straits possible to have an absolutely fair way. That is that cane farmers find themselves in. They not possible. That is why the draftsmen have have the lowest world sugar price in more than insisted on having "reasonably fair" rather than a decade, a trade playing field that is about as "absolutely fair", which is basically what the level as the Great Dividing Range and honourable member is referring to. snowballing competition from large sugar Mr ROWELL: Once again very briefly, producing countries such as Brazil. what I think the Minister was saying before is As the member for Hinchinbrook touched that it is really at the discretion of the receiving on the other night, many farmers in the mill as to which areas they accept and which Burdekin are making less than the average they do not. Is that correct? I just want to industrial wage earner. That is in the Burdekin, clarify that because, if that is the case, why do which is probably doing better than most sugar we not clearly come out in the legislation and growing electorates at the moment. The say that it is the receiving mill? Is that correct? people from north of Burdekin, such as Hinchinbrook, Mulgrave and a few of the other Mr Palaszczuk: That is correct. areas north near Cairns, are doing it tough. Mr ROWELL: Why do we not put in the They have rat plagues, unprecedented wet legislation that it is the receiving mill that has seasons and low c.c.s. levels. This Bill cannot the discretion as to what cane it accepts and hope to solve all these woes in one fell swoop. not talk about "a reasonably fair way"? It is not It would be unreasonable to believe that it very clear in the legislation. would. I did hope, however, for a Bill that 28 Oct 1999 Sugar Industry Bill 4591 expressed a little more compassion for farmers (b) no cane has been supplied to the hard hit by factors that in most cases are mill under a supply agreement for at beyond their control. least 2 years, other than because the grower has experienced personal or This Bill rightly makes allowances for financial hardship or because of a natural disasters but allows little leeway for natural disaster or another personal and financial problems. Let me give emergency." honourable members one example. Under clause 31(1)(a), a cane production board can Mr PALASZCZUK: The honourable cancel a cane production area if no cane has member has raised some very important been supplied to a mill under a supply issues. We in this Parliament all understand agreement for at least two years. This clause how terribly the growers within the sugar must allow for an exception for personal and industry have suffered over the past couple of financial hardship. years. I will not go into the reasons that I believe they have suffered great hardship, but As the member for Hinchinbrook touched I will refer to the honourable member's on the other night, a lot of farmers are proposed amendment. Basically, clause 31 currently getting into any crop that will put food details circumstances in which cane production on their tables; the situation is getting that areas may be varied or cancelled. However, desperate. There is no rock-solid guarantee the honourable member for Burdekin wants to that the current dismal world sugar price will amend it so that natural disaster, emergency not continue for another two to four years. or personal or financial hardships are taken Under this Bill, if cane farmers are facing the into account. wall and it proves not viable to supply sugar, after two years they can have their cane First of all, the effects of natural disaster assignment revoked. In most other industries, and emergency on a collective agreement are farmers can stop growing or switch crops until provided for in clause 52. That is covered. their product can be sold for a price above the Secondly, it is not possible to legally interpret cost of production. That is not so under this Bill what is meant by "personal or financial because the compassion component is hardship". These concepts are extremely subjective and, I believe, in the spirit of the missing. legislation, inappropriate to be included. But this issue is not just about sugar Personal hardship could be anything from prices, and there should be a personal face to marriage break-up to illness. It is too vague. this Bill. Say, farmer Joe with no children works Financial hardship could mean one thing to his farm but does not earn enough money to one person and something completely employ a farmhand or two. That is a reality. different to the next person. One person's own Farmer Joe, a battler farmer all his life, irresponsible actions could result in their discovers he has bowel cancer and spends the financial hardship. I do not consider it next two years having treatment for the appropriate that the Bill should then excuse condition and is unable to work his land. If we those people from their obligations under the pass this Bill unaltered, farmer Joe can fight legislation. If a grower has personal hardship back from a life-threatening disease to find his of a severe nature, he or she has the cane assignment has been stripped from him. opportunity under the Bill to seek to negotiate Come on, we have to be reasonable here. We an individual agreement with the mill so as to have to put a little bit of heart back into the satisfy their own individual circumstances. rural heartland. There are just too many As a final point, I suggest that the show hardships to have to put up with a section of cause process detailed in this clause would the Bill that is so blatantly biased against provide the grower with ample opportunity to compassion. In a bid to do this, I have moved make out his or her grounds for why they had this amendment. not fulfilled their obligations under the supply In its amended form, clause 31(1) would agreement. The cane production board has read— the discretion to consider the matter. "The cane production board The issue of the effects of natural disaster established for a mill to which a cane and emergency on a collective agreement is provided for in clause 52. Secondly, I believe it production area relates may cancel the is not possible to legally interpret what is cane production area, or vary the cane meant by "personal or financial hardship", production area by cancelling part of its although I do believe that the honourable number of hectares, if satisfied that— member has very clearly made the point about ... the plight that is being faced by the growers in 4592 Sugar Industry Bill 28 Oct 1999 his own district. I am glad that he has brought the show cause period for growers, provides their concerns to the attention of the Chamber that the cancellation of a cane production area in the debate on clause 31. has no effect on any right of a mill owner to Mr KNUTH: The only problem I have with take proceedings against a grower to recover relying on clause 52 is that I do not believe it is an amount under, or for breach of, a supply definitive enough. While I believe the Minister agreement. Yet, as we have pointed out, there has good intentions, when we are dealing with is no reciprocal provision enabling a grower to mills and farmers we will see that not sue a mill owner who breaches a supply everybody has the integrity of the Minister. A agreement by shutting down. miller could interpret "emergency" as a This subclause highlights the point just terminal or possibly terminal sickness. That is made that the Bill is fulsome in setting out the my only problem with the words "other rights of one side of the industry but deficient emergency". I believe the Bill should be more by ignoring many growers' rights or moving the definitive. goal posts so that their existing legitimate entitlements are being eroded. We have found Mr PALASZCZUK: I can understand the this throughout the Bill and it epitomises our position from which the honourable member is concerns. The reason for the high number of coming, but I just cannot see how else we can amendments and queries from the Opposition define "natural disaster or other emergency is that all the feedback we are getting is that affecting cane growing, harvesting, delivering, the growers feel that they are the ones who transporting or crushing". I believe that clause are having the goal posts shifted and the 52 covers all the contingencies that the constraints placed on them. If they are feeling honourable member for Burdekin has shown that way, they have a legitimate reason to. concern about. I ask the Minister to answer my query Mr COOPER: The Opposition shares the about the reduction in time for a grower to concerns of the member for Burdekin. I think respond to a show cause motion from 30 days he has made his point. This clause deals with to 28 days. It does not sound much at all, but the situation of a cane production board being that is in isolation. The cumulative effect of the able to cancel a cane production area or part growers I guess being discriminated against in of its number of allocated hectares if it is that sense has created quite a bit of satisfied that one of three enumerated events discontent out there. I cannot quite have occurred. Those mentioned include non- understand why this has been done, because supply of cane to a mill for at least two years, in my opinion we should be enacting non-compliance with a condition of the cane legislation in the best interests of the growers, production area and use of the cane rather than making life more difficult for them. production area for a purpose excluding cane Mr PALASZCZUK: Quite simply, my growing; in other words, the cancellation under understanding from the advice I have received clause 31 is not at the request of the grower. A is that 28 days is the standard time frame show cause notice is given to the grower and, applied across all legislation. Therefore, 28 under clause 213, 28 days is allowed for the days was included in this Bill to bring it into line grower to respond. I draw the Minister's attention to section 152 of the Sugar Industry with other Queensland legislation. Act, in which 30 days' notice is allowed for. The Amendment negatived. Minister might inform the Chamber why there Clause 31, as read, agreed to. is a reduction of two days mandated by this Clauses 32 to 35, as read, agreed to. Bill. The cancellation of a cane production area could have catastrophic consequences for a Division 7 heading— grower and it may be that professional advice Mr PALASZCZUK (11.10 p.m.): I move is needed. With all of the kinds of ramifications the following amendment— that can flow, any reduction of time, even two "At page 40, line 10, 'of cane days, can sometimes be a very serious matter. production areas'— What concerns me also is that this type of omit." narrowing of growers' rights and entitlements seems to be the hallmark of the Bill. Each of This amendment has been considered these changes may seem relatively minor necessary due to a proposal to insert a new when looked at in isolation, but their subclause 2 into clause 36, to which I will refer cumulative effect is to significantly move the in a moment. It will now be clear that Division 7 goal posts in the industry in a manner that is applies generally to expansion of cane not beneficial for growers. I point out that this production area and also to season length. very subclause, subclause (8), which reduces Amendment agreed to. 28 Oct 1999 Sugar Industry Bill 4593

Division 7 heading, as amended, agreed Australian Sugar Milling Council and with to. Canegrowers. These bodies wished it to be Clause 36— made clear in the Bill that negotiating teams, in deciding anything about expansion, must Mr KNUTH (11.11 p.m.): I move the have as their objective enhancing the profit of following amendment— the mill owner and the grower supplying cane "At page 40. line 14, after to that mill. How well I remember that '("expansion")— discussion! insert— Amendment agreed to. 'giving full consideration to raw sugar Clause 36, as amended, agreed to. storage capacity and the availability of viable markets.'." Clause 37— Now we come to an addition that is Mr KNUTH (11.14 p.m.): I move the required to ensure that negotiating teams work following amendment— with guidance from the market reports and "At page 40, lines 26 and 27— directions, etc., of the Queensland Sugar omit." Corporation. The driving force behind this amendment is commonsense. There is not In light of my previous amendment much point in having a wholesale sugar regarding situations in which the arbitrator's industry expansion if the forecasts indicate that decision is of no effect, changes must now be neither the necessary infrastructure nor price made to a related clause, clause 37(5) on trends exist to support such growth. A large- page 40. The amendment I move is quite scale expansion of cane production areas simple: delete the whole of subclause (5). must take several factors into account: firstly, Subclause (5) specifically conflicts with clause can the resultant sugar output be stored with 37(3) and clause 23(4), especially clause existing facilities; secondly, do the 23(4), because this latter subclause lies within world/domestic sugar price forecasts justify Division 3(3) and (4). It is in the section that industry expansion; and, thirdly, a desire for deals with applications affecting cane caneland growth must not come at the price of production areas relating to more than one worsening world market gluts and further mill, effectively moving cane supply from one endangering the viability of existing mill to another. Queensland canefarms. Members will note that on page 29, lines Mr PALASZCZUK: The Government's 23 and 24 clearly state— amendment to clause 36 satisfies the "If the mill owner rejects the amendment proposed by the member for arbitrator's decision because the owner Burdekin. The Government's amendment is refuses to invest the capital necessary to appropriately more comprehensive and takes carry out the decision, the arbitrator's into account the profitability of the mill owner decision is of no effect as a final decision and growers. There is a broad range of of the negotiating team under section matters that the negotiating team must 184." consider in determining everything about the size of expansion. It is not appropriate to really Clause 37(3) says the same thing in fewer get into the level of detail as suggested by the words. Therefore, clause 37(5) is unnecessary member for Burdekin. and conflicts with the requirement contained in subdivision 3 of Division 3, to which it refers. Amendment negatived. Mr COOPER: I have some queries on Mr PALASZCZUK: I move the following clause 37. Division 7 of Part 1 deals with the amendment— expansion of cane production areas, and "At page 40, after line 14— clause 37 deals with the situation where there insert— is a dispute about expansion. As the Minister knows, clause 184 sets out a dispute '(2) In deciding anything about expansion, resolution process for certain disputes and the negotiating team's objective is to provides that a decision, properly reached, is enhance the profit of the mill owner and binding on both parties. But I do draw the the growers supplying cane, while taking Minister's attention to subclause 3, which full account of local circumstances.'." provides that if the effect of the decision under I know that I should not be saying this to clause 184 is to require capital investment by a the honourable member for Burdekin, but this mill owner, the mill owner can walk away from amendment follows consultation with the the process. 4594 Sugar Industry Bill 28 Oct 1999

Members on this side of the Chamber forced capital investment applies both to mill recognise that it would be unfair to compel mill owners and to growers. owners or growers to make capital investments Mr PALASZCZUK: To answer the against their will. The working party said at member for Crows Nest, I would suggest that page 224 that it is inappropriate to force either he looks at clause 37(4) which should satisfy a mill owner or its canegrowers to make capital his concerns. It reads as follows— investments in expansion-related activities, for example, increasing crushing capacity or the "Nothing in this division requires a development of new cane production areas. I grower to accept an allocation of hectares think it is only fair and sensible that there be a to the grower's cane production area recognition that, in certain circumstances, it without making an application." would be unfair and commercially unrealistic to Could I say to the honourable member for assume that a mill owner be expected to Burdekin that clause 37 establishes the invest huge amounts of money in capital dispute resolution process in relation to the expansion when that mill owner may not have difficult issue of expansion. This clause makes the funds to do so, or the nature of the capital clear that clause 37 relates only to disputes expansion is such that it could jeopardise the about expansion generally and does not commercial viability of the mill in the short extend to other disputes—for example, relative term. pricing schemes. I would like to inform the It is important to emphasise that the Committee that this clause has been inserted same principles apply to growers. It is the as a recommendation of the Sugar Industry same thing as we mentioned before. It is not Review Working Party. what this clause says. Again we see the Mr ROWELL: I think this is a very grower isolated. On its face, this clause simply interesting area. It really says that if the says that whenever a decision is made under growers have the will to expand, that clause 184 requiring capital investment, one expansion will be limited by whether the mill side of the dispute can walk away. It does not decides to put in the capital investment. Why say that it must be significant capital is there not something in this legislation which investment, and it does not say that it must be gives the growers, if they decide to become capital investment that would be commercially involved in a milling operation, the right to any imprudent. It does not define what capital increased area that they may desire to plant? investment is. They should be able to mill the cane The Minister can correct me on this point themselves. Perhaps another mill may come in if he wants to, but my reading of the Sugar and decide that it wants to become involved in Industry Act failed to disclose anything similar milling the additional capacity of cane that to this. The Opposition does not object to the could come from an expanded area. principle that, in given circumstances, it would One group should not be denied the be unfair and improper to attempt to force a opportunity of expanding because the other mill owner to invest its money in capital group does not want to invest. The problem expansion. In fact, any commercially sensible we are facing is that there is an person would know that this would be interdependence between mills and growers. counterproductive and incapable of being In fact, one without the other does not work. effectively enforced. But as this clause stands There is substantial capital investment on both it contains a massive loophole—a loophole sides. We need an aggregate amount of which any mill owner could utilise—and sugar—probably about 1 million tonnes—to growers who have legitimately taken actions make a mill viable. Perhaps somewhere down on the basis of clause 184 could well be left the track there could be an opportunity for a high and dry. So I ask the Minister why this smaller sized operation to become involved in clause has been drafted in such an open- an expanded area—say 150,000 or 200,000 ended manner and whether he concedes that, tonnes. This could be viable. Is there anything as it currently stands, it has the potential of in this legislation, let alone in this clause, that allowing mill owners to ignore decisions made would allow a person to invest money in a mill under clause 184. and enable that mill to crush the expanded I ask the Minister what action he intends area? That is not taking sugarcane away from to ensure that the dispute process in clause 37 the existing sugar mill. It simply allows for the is not able to be routinely bypassed in this additional capacity to be crushed by the new manner. I also ask the Minister why the clause entity which may be put in by the growers or was drafted so that it applies only to mill another organisation which sees an owners when the working party made it clear in opportunity for putting in either a large or small recommendation 4.5 that the principle of crushing operation. 28 Oct 1999 Sugar Industry Bill 4595

Mr PALASZCZUK: I suggest that the have the same problem in that area. There is honourable member has a look at clause really no solution to the problem. If the mill 24(7), which addresses the balance for decides that it wants to expand, it can growers. For horizontal expansion, growers advertise and it can go to the Cane Production may withdraw their applications at any time. Board and say, "We are prepared to do this, They cannot be forced to expand. There is that and the other." The point that the nothing to stop a new mill operating in member for Crows Nest made is valid. There is expanded areas. The honourable member an opportunity for the mills to do something raised a query about new mills. I repeat: there about expanding in most situations, but in is nothing to stop a new mill operating in an many situations there is no opportunity for the expanded area. growers to expand if the mills decide that they Mr COOPER: I would still like some do not want to undertake the capital clarification of the point I made earlier about expenditure. what we perceive to be fairly extensive The only option the growers have is to put loopholes. We interpret it that any mill owner a mill in their own area. That is fraught with can utilise it. Growers who have legitimately problems because one probably has to get up gone through a process involving clause 184 to one million tonnes to warrant the building of may be left high and dry. I was asking the a new mill. That is the only thing that will Minister what action he can take to ensure that enable the grower to utilise the expanded the dispute process in clause 37 is not able to area. We are talking about many hundreds of be routinely bypassed by the mill owners being millions of dollars. It is difficult for the growers able to walk away and the grower not being to expand when they see market opportunities able to do so. There is a discrepancy there. and when prices are good. The growers could Mr PALASZCZUK: Basically, if the mill be in areas where they have available water. does not want to expand and invest, The growers are governed by the capital transferability will become available to the investment of boards in Sydney and, perhaps, growers. in New York where some of the larger institutions operate. Mr ROWELL: That is a very interesting subject and I am pleased that the Minister has Mr KNUTH: It was interesting to note that raised it. Can the Minister tell me this: if there the Minister said that this clause was was a desire for transferability and a grower recommended by SIRWP. SIRWP also wanted to expand, but the existing operation recommended transferability, but the Minister decided that it was not prepared to invest did not include full transferability measures in finance in relation to the additional capacity, the Bill. I also remind the Minister that, under where would the grower take his cane, say, in the competition policy agreement—the the Herbert River district? It is something like intergovernmental agreement with the 100 kilometres to Tully and it is about 200 Commonwealth—this Bill has to be set under kilometres for the Burdekin people. Where is guidelines according to the National the grower's opportunity to transfer? Competition Policy. If the mill is not doing a good job of crushing a farmer's cane and he is Mr PALASZCZUK: The honourable not happy with the returns that the mill is member has raised a very difficult issue. If the delivering and if that farmer does not have the grower can expand, he will basically have to right to transfer his cane assignment, where is establish his own mill. Nothing can be done the competition? about that. I raised this issue during the debate. I Mr ROWELL: It denies a certain group of noted that, in his reply, the Minister referred to growers the opportunity to expand because of each of the contributions of the Opposition the lack of capital investment. If we had a members. However, he failed to reply to my situation such as that which prevails at contribution. Can the Minister let the Chamber Innisfail, the grower could go to South know this right now: will this Bill affect Johnstone mill or Mourilyan. In the Mackay Queensland's agreement with the district the grower could go from the Commonwealth in terms of repayments? Will cooperative mills to the CSR mill at Sarina. this Bill mean that we are going to lose Mr Malone interjected. hundreds of millions of dollars because we do Mr ROWELL: It could be the other way not comply with the competition policy set around, yes. That is more likely. The point I am down by the intergovernmental agreement? making is that the grower then has to get the Mr MALONE: I want to continue from permission of the mill that he wants to go to in where the member for Hinchinbrook left off. In order to be able to expand. The grower might terms of actually transferring cane from one 4596 Sugar Industry Bill 28 Oct 1999 mill to the other and the conditions under and none of the growers on the tablelands which the member suggested that there is no want to see the Mossman mill closed. opportunity to do that, there is usually no other However, they want the ability to, in some avenue except for the mill owner and the cases, move their consignments to the new growers to agree to an extended season either Tablelands mill because it was built to take up before the recognised start to a harvest or the extra load caused by the burgeoning sugar after the recognised end of a harvest. industry on the tablelands. Unfortunately, that brings into play some Recently in Atherton the Premier stated inequalities with the farmers that already have that he saw fields that, when he was a young cane assigned to that mill. The problem arises boy, used to be planted with maize, potatoes when a growing area is in a situation where it and tobacco and which are now planted with cannot actually transfer from one mill area to sugar. Of course, that came about through the another, as described by the member for Hinchinbrook, in either the Burdekin area or restructuring of the tobacco industry. the Ingham area—and possibly a lot of other Therefore, we have a new sugar-growing area areas up and down the coast. It makes it very which is expanding quickly. We have the difficult for growers in those areas to expand if Tablelands mill to deal with that extra there is no like obligation on the millers. I am production, but the issues surrounding this not even suggesting that there should be dispute have been brought home to me very clearly. I do not know if the Minister could go anything in the Bill to force the millers to through what the tablelands farmers should be expand, but it really puts those growers who doing in this regard. However, I must draw to are moving forward and who want to expand the Minister's attention very much that I am their operation in a very difficult position. talking only about the disputes that have been Worse, it also puts the growers who are brought to my attention between the established in a difficult situation because they Mossman mill and the Tablelands mill. are then supplying cane, possibly at times of the year when cane is traditionally not Mr PALASZCZUK: I have taken on board supplied, which will have impacts on the return the contributions by the shadow Minister, the that they get for their cane and the potential member for Hinchinbrook, the member for return for their cane in the following year. So Mirani and, of course, the honourable there is some injustice in that area. members for Burdekin and Tablelands. The Bill Mr NELSON: I would like to buy into this provides for growers to expand where possible. discussion at this stage because of the issue As the honourable member for Mirani said, no that I raised earlier during the debate. I do not mill can be forced to make a capital think that the situation could be illustrated investment. Unfortunately, the impossible clearer than by referring to the ongoing cannot be achieved in this Bill. If the problem that exists between the Tablelands circumstances are such that, for the moment, mill—which, as far as I know, is one of the a grower cannot expand, the Bill cannot do newest mills in Queensland—and the anything to help. However, those Mossman mill in relation to disputes and the circumstances will not remain forever. At the ability of farmers to represent themselves in a end of the day, we really have to consider mill dispute. Again, I accept what the Minister said viability. It is a crucial issue, because the last about this issue the last time. However, I must thing that we want to see is mills closing. make this point perfectly clear: the tableland The honourable member for Burdekin growers do not have any representation on the spoke about competition payments. I am board of the mill at Mossman. Therefore, they confident that Queensland will not lose any are at a significant disadvantage when it competition payments as a result of the Bill. comes to these dispute clauses. The honourable member for Burdekin also Mr Malone: They are not shareholders in raised the issue of transferability. Basically, the mill? transferability is an industry agreement that I have implemented fully. I have said this on Mr NELSON: No, but they also supply many occasions and I have a heads of one third of that mill's cane and, as I said agreement that I referred to when we last before, 45% of its sugar output. My main concern is that, as far as I can see from my debated the clauses of this Bill a couple of limited reading of the Bill, that dispute clause days ago signed by both the Canegrowers and does not really take into account the situation the Australian Milling Council. such as the major, ongoing, draining dispute Mr ROWELL: I have just one small issue. that the Tablelands mill has with the Mossman I would like to clarify something that the mill over many issues. Again, I must stress that Minister said. There is nothing that I indicated I do not want to see the Mossman mill closed that would make a mill not viable. 28 Oct 1999 Sugar Industry Bill 4597

Mr PALASZCZUK: No, no; I understand contrary to the recommendations in the report that. of the Sugar Industry Review Working Party. Mr Rowell interjected. Members of that review working party determined that the length of supply Mr KNUTH: Can the Minister give the agreements should be determined by Chamber absolute surety and confidence that negotiation in the local area. If a grower Queensland will not suffer under the guidelines wanted to ensure that he was party to a supply of the Competition Council because of the agreement that ran for only one crushing make-up of this Bill? Can the Minister assure season, the grower could negotiate an the Chamber that Queensland will definitely individual agreement with the mill owner. If not lose out on payments because this Bill local areas want to have a one-year collective may not comply? agreement, they can. There is nothing at all in The CHAIRMAN: Before the Minister the Bill to prevent this. It is all about begins, I remind the member for Burdekin that commercial flexibility, since supply agreements under Standing Order 109, that was the last are commercial contractual documents. time that he can comment on this particular clause. Mr KNUTH: Can the Minister tell the Chamber whether he will comply with all of the Mr PALASZCZUK: I reiterate what I have recommendations of the working party? Will he said. Perhaps the honourable member's exempt the ones that he wants to leave out? thoughts were elsewhere when I said it. However, I think it is important that I repeat Mr PALASZCZUK: I assure the this. I am confident that Queensland will not honourable member that the overwhelming lose any competition payments as a result of majority of recommendations of the working the passage of this Bill. party have been accepted and incorporated in the Bill. Amendment negatived. Clause 37, as read, agreed to. Mr COOPER: I draw the Minister's attention to clause 38(3), which provides that a Clause 38— supply agreement may be for one or more Mr KNUTH (11.40 p.m.): I move the crushing seasons. That is what the member for following amendment— Burdekin is referring to. As I read the Bill, there "At page 41, line 11, '1 or more is no upper limit to the period that a collective crushing seasons'— agreement may go for. Under clause 46, certain rights are written in for agreements that omit, insert— are longer than four years in duration. We 'only 1 crushing season'." support the ability of the growers and mill It is without doubt that the full owners to negotiate collective agreements that consequences of this Bill will not be known suit the circumstances of the particular area. until it is amended, passed and implemented. Likewise, we support the ability of the parties I believe that there remains even more devil in to negotiate a term that they want. the detail yet to be discovered. It is for this Nevertheless, as the Minister knows, a reason that I move that in clause 38, at page collective agreement can apply to growers who 41, line 11, "one or more crushing seasons" voluntarily enter into an agreement and who be deleted and "only one crushing season" be are deemed to have entered into an inserted. agreement. In that regard, I refer the Minister This provision allows for any problems to clause 45(3). encountered within the agreement to be The Bill also allows a negotiating team, addressed in the next crushing season. With without giving notice, to have preliminary the high levels of grower apprehension already discussions to decide the period or range of exhibited towards this Bill, it would be unwise periods that the collective agreement may be. for any of those growers to be bound to In addition, when notice is given under clause multiyear agreements from day one. Several 41 informing growers that negotiations for a years of consecutive single season collective agreement are about to start, that agreements are necessary to iron out any notice need only specify the period or range of glitches that are sure to emerge. This clause periods that the collective agreement may can be amended by Parliament at a later date possibly cover. As the Minister knows, once a if a majority of growers expresses a desire for collective agreement is entered into, it requires multiyear contracts. more than 20 growers bound by it to object Mr PALASZCZUK: The amendment before the negotiating team can vary it. I will proposed by the member for Burdekin is come to the basis of the variation later. 4598 Sugar Industry Bill 28 Oct 1999

It concerns me that the Bill does not Mr PALASZCZUK: Clause 41(1)(d) states provide an upper term limit and is silent about the period or range of periods that the the matter, other than in clause 46. Having collective agreement may possibly cover. regard to the deeming operation of collective Mr COOPER: We are aware of clause 41, agreements and the possible exercise of as I mentioned in my preamble to the market power by mills in given circumstances, I question. As I said after that, as the Minister ask the Minister: why is the Bill silent on this knows, once the collective agreement is matter? What effective remedies does a entered into, it requires more than 20 growers grower have, when they are deemed to have bound by it to object before the negotiating entered into an agreement that may be for an team can vary it. What concerns me is that the inordinately long period? What redress does Bill does not provide an upper term limit. We that grower have? are concerned that there should be an upper Mr MALONE: The Minister must term limit. We are also concerned that the Bill understand that the negotiating team has the is silent on the matter, other than in clause 46. flexibility to actually negotiate an agreement Having regard to the deeming operation of for any length of time at all. In the early stages collective agreements and the possible of the new Bill, it would be wise certainly to exercise of market power by mills in given look at a minimum length term, to suck it and circumstances, why is the Bill silent on this see, to ensure that all of the conditions of the matter? What effective remedies does a Bill are recognised and worked through by the grower have, when that grower is deemed to negotiating team. I raise my concerns about have entered into an agreement that may be pushing for a length of time such as 10 or 15 for an inordinately long time? What redress do years in the early period of the settling in of the the growers have if it is an inordinately long Bill. period, because there is no upper limit on the Mr PALASZCZUK: In response to the length of time that the agreement can run for? member for Crows Nest, individual contracts We are concerned about the length of time. are always open to growers and the length of Mr PALASZCZUK: The concerns of the the agreement will be found in the member are legitimate. In relation to the advertisement or the notice in the paper. length of agreements, they are open to Mr Rowell: Are you talking about commercial negotiations. In relation to the last individual people or collectives? point raised by the honourable member, growers can enter into individual agreements if Mr PALASZCZUK: Collectives. they want to. Mr Rowell interjected. Amendment negatived. Mr PALASZCZUK: That is right. The length of the time will be in the notice in the Clause 38, as read, agreed to. paper. Progress reported. Mr Malone interjected. The House adjourned at 11.50 p.m.