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14 October 1987

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14 October 1987 4498 Wednesday, 14 October 1987 THE SPEAKER (Mr Barnett) took the Chair at 2.15 pma, and read prayers. VIDEO TAPES CLASSIFICATION AND CONTROL BILL Amendment: Petition MR HODGE (Melville -- Minister for Conservation and Land Management) [2.16 pm]: I have a petition couched in similar terms to many which have been presented to the Parliament in recent times relating to "R"-rated videos, the need for a review of penalties in respect of child pornography and other matters. The petition bears 30 signatures and I certify that it conforms to the Standing Orders of the Legislative Assembly. T'he SPEAKER: I direct that the petition be brought to the Table of the House. (See petition No 68.) WILUNA SHIRE COUNCIL Division: Petition MR 110GHTFOOT (Murchison-Eyre) [2.18 pm]): I present the following petition -- To the Honourable the Speaker and Honourable Members of the Legislative Assembly of the Parliament of Western Australia in Parliament assembled. We, the undersigned, Petition the Parliament of Western Australia to direct the Minister for Local Government to bisect the Shire of Wiluna at an appropriate longitude to create a new Shire in the East to the Northern Territory/South Australian Border. The petition bears 40 signatures and I certify that it conforms to the Standing Orders of the Legislative Assembly. The SPEAKER: I direct chat the petition be brought to the Table of the House. (See petition No 69.) MT MAGNET DISTRICT HIGH SCHOOL Upgrading: Petition MR LIGJHTFOOT (Murchison-Eyre) [2.20 pm]; I have another petition which reads as follows -- To: The Honourable the Speaker and Members of the Legislative Assembly of the Parliament of Western Australia in Parliament assembled. We, the undersigned request that the buildings and facilities of Mt. Magnet District High School be upgraded to provide a) One campus for the Pre-primary, Primary and Secondary sections, b) A more permanent structure befitting school numbers and town size. c) Classroom sizes and numbers to accommodate abovemnentioned figures. d) All support facilities viz toilets, outdoor assembly areas, storage facilities etc be provided. Your petitioners therefore humbly pray that you will give this matter earnest consideration and your petitioners, as in duty bound, will ever pray. The petition bears 169 signatures and I certify that it conforms to the Standing Orders of the Legislative Assembly. [Wednesday, 14 October 19871 449949 The SPEAKER: I direct that the petition be brought to the Table of the House. (See petition No 70.) HEALTH: TOBACCO SMOKING Dangers:Petition DR ALEXANDER (Perth) [2.21 pm]: I have a petition which is not correctly addressed. It should be addressed to the Speaker and the House. It reads as follows -- To the Honourable the President and Members of the Senate in Parliament assembled: We the undersigned, (i) are greatly disturbed by the dangers to health posed by passive smoking, and evidence of which is being documented daily by medical authorities around the world; (ii) note that environmental tobacco smoke has been identified as the major pollutant in aeroplane cabins, and that its direct threat to health is recognised in the special leave provisions for flight attendants specifically on grounds of upper respiratory infections; (iii) appreciate the government's undertaking to legislate for smoke-free travel on aeroplanes, but are dismayed at the apparent reluctance to follow up the Minister for Aviation's December announcement with action; and (iv) call upon the government to make smoke-free aeroplane travel a reality without further delay, and to ensure that smoke-free areas which cannot be contaminated by recycled pollutants, are available at all aerodromes. And your petitioners as in duty bound will ever pray. The petition bears 21 signatures and I certify that it conforms to the Standing Orders of the Legislative Assembly. Speaker's Ruling THE SPEAKER: I note that the petition presented by the member for Perth is addressed to "the President and Members of the Senate"; accordingly, the petition is out of order and must be presented in that place. THE RURAL AND INDUSTRIES BANK OF WESTERN AUSTRALIA BILL Standing Orders Suspension MR PEARCE (Armadale -- Leader of the House) [2.23 pmj: I move, without notice -- That so much of the Standing Orders be suspended as is necessary to enable proceedings on the "Rural and Industries Bank of Western Australia Bill" to be taken to the stage that the second reading of the Bill is moved at this day's sitting. Yesterday I discussed with the Leader of the Opposition the proposition that in order to give the Opposition the maximum time to consider this Bill, we would like to get to the second reading stage as quickly as possible. The motion I have moved will permit the Treasurer to make his second reading speech immediately after the Bill is read a first time, after which the debate will be adjourned. The SPEAKER: I advise members that to be carried, this motion needs an absolute majority of the House. If there is a dissentient voice when I put this motion, I will need to divide the House.- Question put. The SPEAKER: I have counted the House. There is an absolute majority present, and as there is no dissentient voice, I declare the motion caried. Question thus passed. 4500 [ASSEMBLY] Inerdacrionand FirstReading Bil introduced, on motion by Mr Brian Burke (Treasurer), and mead a first time. Second Reading MR BRIAN BURKE (Balga -- Treasurer) [2.26 pnij: I move -- That the Bil be now read a second rime. I have pleasure in introducing this Bill which will provide for a modern framework for the Rural and Industries Bank to continue a prominent role in the community in this newly deregulated and competitive industry. The Government decided to conduct a thorough review of the existing Act which, as a result of amendments over the years, had become cumbersome and old fashioned. In the process it was concluded that the best course of action was to rewrite the Act completely to make it more readily understood, and to ensure flexibility of operation for the bank in today's changing markets. In the course of the review regard was given to the question of the constitution of the board of the bank -- a matter which had been raised by the Opposition in 1984. The origin of the Rural and Industries Bank of Western Australia dates back to 1894 when, as the Agricultural Bank of Western Australia, it was established by legislation for the purpose of promoting rural enterprise. By 1944 the economy had become more diversified and, although agricultural development was far ftom complete, the Government recognised the need for a broader-type State financial institution. The Rural and Industries Bank Act 1944, therefore, replaced the old Agricultural Bank Act and gave a wider charter to the bank to assist in the development of the Stare. The present Rural and Industries Bank Act has been amended on some 21 occasions since its inception and it still retains a structure conceived in a highly regulated environment and includes many restrictions on the bank's flexibility in meeting the requirements of commercial competition. For example, the Act contains a number of prescriptive conditions with respect to lending rather than accepting them as a matter of contract between the customer and the bank. The Act is definitive as to whom the bank may make loans, with people in the rural sector referred to as "settlers' and people in industry referred to as "manufacturers". Members of this House are aware of the rapid changes that have occurred in financial markets in recent years, in particular the deregulation of the market coupled with the issue of new banking licences. While the competitive performance of the bank has been excellent in recent years, a danger existed that if the 1944 Act were to continue in existence the Stature would inhibit the performance of the bank to the detriment of the State. The principles upon which the new legislation is based are -- (i) that the bank should conduct its affairs with a view to promoting the balanced development of the State's economy and the maximum advantage of the people of Western Australia; (ii) thar the bank should operate in accordance with accepted principles of financial management; and (iii) that the bank should operate in conditions as comparable as practicable with those in which its private sector counterparts operate. The first two of these principles appear specifically in clause 6(3) and (4). The third is reflected in clauses 12 and 13 dealing with banking powers, clause 28 in respect of payment of the equivalent of income tax and dividend, and clause 4(7) which requires the bank to pay State taxes and charges. I turn now to the main features of the Bil. The Bill continues the existence of the present Rural and Industries Bank and all its rights and obligations are preserved in "saving" provisions in the new legislation. However, the existing legislation vests the management of the bank in five comm-issioners, four of whom are full-time commissioners. The commissioner concept dates back to 1906 when the forerunner to the bank, the Agricultural Bank, was controlled by three trustees, one of whom was a fail-time trustee. The current management structure of the five commissioners. has been in place since 1953. (Wednesday, 14 October 1987) 450150 The Bill through clauses 5.,6, and 7 will bring the management structure of the bank into line with the management structure of the Commonwealth Banking Corporation, the State Banks of New South Wales and South Australia, and private banks. There is a clear separation of function between the board and its chief executive officer.
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