30 Nov 1999 Legislative Assembly 5523

TUESDAY, 30 NOVEMBER 1999 To print all of the road rules would require a major publication; therefore, a decision was taken by Queensland Transport, in consultation with the Queensland Police Mr SPEAKER (Hon. R. K. Hollis, Redcliffe) Service and other stakeholders including the read prayers and took the chair at 9.30 a.m. RACQ, to print a brochure containing those significant changes to the road rules with which motorists would need to become familiar. The ASSENT TO BILLS State Traffic Support Branch of the Mr SPEAKER: Order! I have to inform the Queensland Police Service have advised my House that I have received from His Excellency department today that they were fully the Governor a letter in respect to assent to consulted on the brochure—which I also certain Bills, the contents of which will be table—and are satisfied with its accuracy and incorporated in the records of Parliament— presentation. That brochure is written in (sgd) Peter Arnison language designed to be easily understood by all Queensland motorists. All of the statements GOVERNOR in the brochure are correct and identify the Message No. 5199 major new road rules that Queensland The Governor acquaints the Legislative motorists are required to abide by from Assembly that Bills intituled: tomorrow, 1 December. Of course, all other "A Bill for an Act to amend certain local road rules which govern driving in Queensland government legislation, and for other continue to apply. purposes" "A Bill for an Act to amend the Health Services Act 1991, Medical Act 1939 and PETITIONS Tobacco Products (Prevention of Supply The Clerk announced the receipt of the to Children) Act 1998" following petitions— "A Bill for an Act to amend the Trade Measurement Act 1990" Prostitution Laws "A Bill for an Act to provide for the regulation of private health facilities and From Mr Feldman (37 petitioners) for other purposes" requesting the House to rigorously reject any having been passed by the Legislative proposals to further liberalise the current laws Assembly, and having been presented for the relating to prostitution. Royal Assent, were assented to by the Governor, in the name of Her Majesty, on the Twenty-Ninth day of November, 1999. Prostitution Laws The Governor now transmits the Bills to the From Mr Reynolds (171 petitioners) Legislative Assembly, to be numbered and requesting the House to reject any move to forwarded to the proper Officer for enrolment, legalise brothels in Queensland and do all in in the manner required by law. its power to restrict and contain this immoral Government House, Brisbane, 30 November practice which is so harmful to society. 1999. A similar petition was received from Mr Horan (4 petitioners). PRIVILEGE Petitions received. National Road Rules Hon. S. D. BREDHAUER (Cook—ALP) PAPERS (Minister for Transport and Minister for Main The Clerk informed the House of the Roads) (9.33 a.m.): I rise on a matter of tabling of the following documents— privilege. On page 3 of today's edition of the Queensland Times newspaper, a claim is PAPERS TABLED DURING THE RECESS made that the National Road Rules brochure, The Clerk informed the House that the being distributed by Queensland Transport, following papers, received during the recess, were tabled on the date indicated— contains errors of fact. This claim by an unnamed police officer is wrong and may 29 November 1999— unnecessarily alarm members of Queensland's Bore Water Boards, Drainage Boards, motoring public. The fact is that the new Water Boards—Summarised Annual Australian Road Rules to come into effect Report 1998-99 tomorrow substantially mirror existing Queensland River Improvement Trusts— Queensland road rules. Summarised Annual Report 1998-99 5524 Papers 30 Nov 1999

Gladstone Area Water Board—Annual Transport Operations (Road Use Report 1998-99 Management—Driver Licensing) Late tabling statement by the Minister for Regulation 1999, No. 301 Environment and Heritage and Minister for MINISTERIAL RESPONSE TO A PETITION Natural Resources (Mr Welford) relating to The following response to a petition, received the Gladstone Area Water Board Annual during the recess, was tabled by The Clerk— Report 1998-99 Response from the Minister for Communication STATUTORY INSTRUMENTS and Information and Minister for Local The following statutory instruments were tabled Government, Planning, Regional and Rural by The Clerk— Communities (Mr Mackenroth) to a petition presented by Mr Bredhauer from 509 Charitable and Non-Profit Gaming Act 1999— petitioners, regarding the constitution of a local Charitable and Non-Profit Gaming Rule government for the township of Weipa— 1999, No. 298 I refer to your letter of 28 October 1999 Environmental Protection Act 1994— referring to me a petition lodged by Mr Ian Environmental Protection (Noise) McNamara regarding the constitution of a Amendment Policy (No. 1) 1999, No. 296 local government for the township of Weipa. Environmental Protection Act 1994, Justices Act 1886— I have responded directly to Mr McNamara and have enclosed a copy of Environmental Protection Amendment my response for your information. Regulation (No. 2) 1999, No. 297 and Explanatory Notes and Regulatory Impact 24 Nov 1999 Statement for No. 297 Mr I A McNamara Gas Act 1965, Petroleum Act 1923— 5 Cumrumja Close WEIPA QLD 4874 Gas and Petroleum Legislation Amendment Regulation (No. 2) 1999, Dear Mr McNamara No. 294 I refer to your petition to the Legislative Hospitals Foundations Act 1982— Assembly concerning the creation of a local government for the township of Hospitals Foundation (Townsville General Weipa, which has been referred to me by Hospital Foundation) Repeal Rule 1999, the Clerk of the Parliament. No. 293 The request expressed in the petition has Hospitals Foundations Amendment been noted. Regulation (No. 1) 1999, No. 292 As you are no doubt aware, officers of my James Cook University Act 1997— Department have been discussing with James Cook University Statute No. 3 Comalco Aluminium Limited its position (Fees) 1999 regarding the constitution of a town commission for the township of Weipa. James Cook University Statute No. 4 (Making and Notifying of University Rules) It is understood the Comalco Board 1999 supports the process in principle, however, is considering a number of Justices Act 1886, Transport Operations (Road issues prior to making a formal request for Use Management) Act 1995— the town commission to be constituted. Traffic and Other Legislation Amendment Consideration can then be given to Regulation (No. 1) 1999, No. 299 seeking the approval of the Governor in Local Government Act 1993— Council to the establishment of a town commission. Local Government (Implementation of Reviewable Local Government Matters) The Weipa Citizens' Advisory Committee Amendment Regulation (No. 1) 1999, will be kept informed as matters progress. No. 291 Yours sincerely Marine Parks Act 1982— TERRY MACKENROTH Marine Parks (Cairns) Amendment Zoning MINISTERIAL PAPER TABLED BY THE Plan (No. 1) 1999, No. 295 CLERK Transport Operations (Passenger Transport) The Clerk tabled the following paper, received Act 1994— from the following Minister during the recess— Transport Operations (Passenger Minister for Aboriginal and Torres Strait Transport) Amendment Regulation (No. 4) Islander Policy and Minister for Women's Policy 1999, No. 300 and Minister for Fair Trading (Ms Spence)— Transport Operations (Road Use Management) Queensland Building Tribunal—Annual Act 1995— Report 1998-99 30 Nov 1999 Ministerial Statement 5525

MINISTERIAL PAPER newspaper pointed to a decline in volunteer The following papers were tabled— work—particularly in the welfare sector. I urge (a) Minister for Communication and members of this House to encourage Information and Minister for Local nominations and to nominate people. Government, Planning, Regional and Rural Nominations will close on Friday, 7 January Communities (Mr Mackenroth)— 2000. I hope these new awards will play a part Copy of a reference issued to the in turning around this trend against people Electoral Commission of Queensland on being prepared to volunteer. A panel of 24 November 1999 in relation to a review eminent Queenslanders including former of the composition of Aramac Shire Federal parliamentarian, Sir James Killen; Council and the assignment of councillors former Queensland Governor, Mrs Leneen to divisions Forde; Mayor of Cairns, Councillor Tom Pyne; (b) Minister for Health (Mrs Edmond)— director-general of my department, Dr Glyn Townsville District Health Foundation— Davis; Queensland Newspapers Editor-in- Annual Report for the year ended 30 June Chief, Chris Mitchell; and former President of 1999 the Premier's Community Welfare Committee, Written statement in accordance with Lyn Comben, will judge the winners. They will section 46KB of the Financial decide who will receive the Premier's Administration and Audit Act 1977. Millennium Awards for Excellence. Those living legends will then be honoured at a ceremony at Parliament House MINISTERIAL STATEMENT on 26 January, the day we celebrate another Premier's Millennium Awards momentous occasion, Australia Day. Australia Hon. P. D. BEATTIE (Brisbane Central— Day 2000 will be the day we recognise and ALP) (Premier) (9.36 a.m.), by leave: It gives reward the special qualities of those me great pleasure today to announce the ambassadors who have helped make establishment of the Premier's Millennium Queensland the great State that it is. I look Awards for Excellence. The aim of these forward to the assistance of all Queenslanders awards is to recognise Queenslanders who in celebrating Queensland's living legends. For have made a significant contribution to this the information of the House, I table a copy of State over the last 25 years of this century, to one of the advertisements that will appear in celebrate Queensland's living legends. It is the Courier-Mail seeking nominations from only fitting that we show our appreciation to Queenslanders. these people for playing their part in shaping Queensland into the great State we proudly call home. The calibre of recipients will no MINISTERIAL STATEMENT doubt follow in the footsteps of other great Smart State Queenslanders like former Premier of Hon. P. D. BEATTIE (Brisbane Central— Queensland and lawyer T. J. Ryan; singer ALP) (Premier) (9.40 a.m.), by leave: Gladys Moncrieff; aviator Bert Hinkler; and Honourable members will be well aware that Neville Bonner, the first Aboriginal person to sit my Government proposes to make in Federal Parliament. Queensland the Smart State to guarantee our I am seeking bipartisan support for this future. This will be achieved through increased initiative and have written to the leaders of the research and development, improved various political parties in this House seeking curriculums and education facilities and a that, because I believe it is important to sharper focus on policies that ensure recognise the great achievers and inspire Queensland is ready to take advantage of others to succeed. The categories for the opportunities when they arise. At the same Premier's millennium awards include business time, we are also supporting our traditional leadership, education/science, primary industries. Queensland's economic wealth, industries, mining, tourism, local government, and therefore our quality of life, will continue to environment, charity/welfare/health, be generated by miners, primary producers indigenous affairs, multicultural affairs, and the tens of thousands of people arts/culture, and sport. employed in the tourism industry—rocks, crops All Queenslanders will be invited to and our beautiful environment. nominate people they believe have performed It was in this light that I initiated exceptionally well or who have made an discussions yesterday with entrepreneur important contribution to Queensland. One Richard Branson to locate the headquarters of important way to contribute to society is by his Virgin Australia airline in Brisbane. The volunteering. A recent piece in the Australian launch of Virgin Australia gives us the 5526 Ministerial Statement 30 Nov 1999 opportunity to create hundreds more jobs for Toowoomba, as well as Brisbane. We are the Queenslanders through cheaper airfares to our most decentralised mainland State. This is tourist destinations. I am determined to do another reason why it would make sense for what I can to attract the headquarters to Virgin to have its headquarters here. Queensland because Mr Branson is predicting I told Mr Branson that Boeing has located the creation of 300 new jobs in the first year of its Asia-Pacific headquarters in Queensland. operations. I know this will be difficult, but we My Government is now examining the are prepared to give it our best shot. possibility of establishing a training facility for I spoke to Mr Branson yesterday and I aircraft maintenance staff. My message to Mr told him that Queensland is very keen to have Branson was that we want him here and that the Virgin Australia headquarters here in he should talk to us before he makes any Queensland, along with the maintenance base decisions. In fact, to borrow a line from the and the call centre, notwithstanding bids from Tourism Queensland advertising campaign, Victoria and New South Wales. I also told Mr which the Minister for Tourism, Sport and Branson that my Government is prepared to Racing and I launched, what I said to Mr offer an incentives package to his company Branson was simply this: where else but which will cover payroll tax concessions and Queensland? relocation costs. This would include normal commercial incentives as well as helping to find hangar space for the airline's planes. The MINISTERIAL STATEMENT presence of the regional headquarters of Gold Coast, Convention Centre Boeing in Queensland will help our push for Hon. J. P. ELDER (Capalaba—ALP) the headquarters of Virgin Airlines because of (Deputy Premier and Minister for State the high quality skills associated with aircraft Development and Minister for Trade) maintenance, and I will come back to that in a (9.43 a.m.), by leave: In the past few years, moment. the Gold Coast has become one of the most The introduction of the Federal favoured destinations for delegates of Government's goods and services tax will conventions of all sizes. This growth has mean at least a 7% jump for domestic airfares largely proceeded on the back of the coast's to Queensland's tourism destinations. outstanding natural facilities and the very large Therefore, we are concerned about its impact hotels which do not have convention centres. on tourism. Ironically, the Federal However, this Government has seen the need Government's GST will not affect flights to to provide a dedicated convention centre on destinations such as Noumea, Bali and Fiji, the Gold Coast to consolidate the growth that which makes those destinations more has occurred so far and put the Gold Coast in competitive with the Sydney and Melbourne a position to attract further large-scale markets. Tourism is one of the most conventions. competitive industries in the world. The Government received several Queensland cannot afford to start with a 7% proposals for a convention centre in the cost disadvantage. If Mr Branson can reduce second half of last year and early this year. We domestic fares and therefore help to offset the formally called for expressions of interest so GST slug, Queensland tourism and tourism that we could test the market. From here a jobs will be the winner. It is our second biggest short list of four contenders was compiled in industry. March. This was reduced to three in August Mr Branson told me that he was and then two when some of the consortia investigating the possibility of operating which had been short-listed left the process. services between cities with a population of Despite the urgings of those opposite, this 50,000 and more. That has very specific Government remains committed to having a benefits and relevance to this State, the most convention centre on the Gold Coast. decentralised mainland State of Australia. If Consequently, I am pleased to announce to Virgin Australia gets permission to fly to these the House that Jupiters Limited will be the centres—we know that it will not happen preferred tenderer for a $145m Convention overnight; there will be introductions as part of and Exhibition Centre on the Gold Coast. The the Olympic Games where they will be convention centre should be ready by March seeking, along with other airlines, to take 2002, subject to the project gaining the advantage of the Olympics, and no doubt this necessary approvals from the Gold Coast City will spread to the regional centres over time—it Council. will mean cheaper fares to Cairns, Townsville, The Government received two very good Mackay, maybe Hervey Bay, Rockhampton, proposals. Jupiters was judged the better of the Sunshine Coast, the Gold Coast, the two, and we will now go into detailed 30 Nov 1999 Ministerial Statement 5527 negotiations on formal binding agreements for Queenslanders, and that is what we are doing the construction and operation of the here. It is the Beattie Government that is convention centre. A major point of the delivering to the Gold Coast a facility it needs Jupiters proposal is that it will help provide a and one which will create more jobs in the great economic stimulus to the Gold Coast. It future. has a strong focus on the convention market but will also provide a venue for exhibitions, entertainment and sporting events. There will MINISTERIAL STATEMENT be considerable benefit for existing hotels and Lang Park Redevelopment, Impact associated retail and service industries on the Assessment Study Gold Coast. It is proposed that the facility will Hon. R. J. GIBBS (Bundamba—ALP) be built off the Gold Coast Highway close to (Minister for Tourism, Sport and Racing) the existing Jupiters Casino at Broadbeach. (9.37 a.m.), by leave: On 31 August the Having this facility here means that it will be Government announced that Lang Park was accessible to existing businesses and the preferred site for Brisbane's new world- commercial development, and that in turn will class stadium. At that time, the Premier and I benefit the broader Gold Coast business gave a public commitment that the Lang Park community. redevelopment would involve a comprehensive I realise that there has been a great deal planning and assessment program and of discussion and speculation about this extensive community consultation. We are matter, but it is the Beattie Government which honouring that commitment. Senior officers is giving the Gold Coast its long awaited from my department have already conducted convention centre which will be a huge boost a number of public forums on the planned for the coast's traditional industry—tourism. redevelopment with local residents and other The centre will be owned by the State interested parties. Tomorrow the Government Government and operated by Jupiters and will will advertise a public tender for a consultant to be able to host conventions of up to 2,000 conduct the impact assessment study into the delegates. In combination with its existing Lang Park Stadium development. That study facilities, Jupiters will actually be able to host is expected to begin in February. Today I am two conventions of this size at the same time releasing for public comment the draft terms of and provide a venue for concerts and sporting reference of that study. events for 6,500 people. It could also host This comprehensive impact assessment exhibitions requiring up to 7,000 square study is being undertaken to ensure that the metres of indoor space with an additional final outcome meets the needs of the whole 2,000 square metres outdoors. In planning community and the stadium users. Key issues terms, the Gold Coast City Council will retain to be addressed in the IAS include the responsibility for normal local authority transportation, traffic and pedestrian access approvals for the centre. It is this requirements; impacts on local residents and Government's intention that this will be done the broader community; noise, lighting and air through the Integrated Development Approval quality; economic issues, including impacts on System of the Integrated Planning Act. local businesses; visual and social impacts; The Jupiters proposal also involves the re- and impacts on surrounding land uses and routing of Little Tallebudgera Creek so that the land use planning. Other potential centre is accessible to the Gold Coast environmental impacts include soils, water Highway. This in turn involves the relocation of quality, waste management and infrastructure the boat ramp and the senior citizens centre. needs and requirements to facilitate the What this will mean in practice is that some project. parkland will be given up for the convention The terms of reference is like the recipe centre, but Jupiters in turn intend to donate for the study and, once finalised, will form the other land to public parkland so that overall framework for the studies that will be there is an actual net gain in public space and conducted to look at the impacts of upgrading public parkland in the area. the site. For those who have an interest in the This facility has been sorely needed for proposed stadium development and its some time now as the Gold Coast is entering a potential impacts, now is the time to have a new phase of its development and needs to say on the issues that will be addressed in the concentrate more on value adding to its technical studies themselves. traditional industries. Those opposite seem to Public comments on the draft terms of think that they have a monopoly on reference are encouraged and must be representing the Gold Coast. However, we received by 15 February 2000. During the promised to be a Government for all period when the draft terms of reference are 5528 Ministerial Statement 30 Nov 1999 being publicly displayed, an independent The bank's board and management had community consultation team will be working wanted a resolution of the Government's directly with the community to help identify shareholding position since the time of the community issues, promote understanding of Suncorp-Metway merger in 1996. They had the IAS process and facilitate public response argued that the ongoing uncertainty to the draft terms of reference. At the same surrounding the Government's intentions was time, preliminary investigations will also be inhibiting the bank's long-term strategic conducted on the stadium design, transport planning and, ultimately, its growth prospects. planning and the development of commercial We have removed that uncertainty and models. passed ownership of the Bank of Queensland Interested parties can telephone the Lang to where it truly belongs—that is, to the private Park Stadium information line on 3235 9084 to investors of Queensland and to the employees arrange for a copy of the draft terms of of the bank itself, who were enthusiastic reference of the impact assessment study to participants in the share offering. be posted. Copies of the terms of reference Throughout the sale process and the can also be collected from Sports House, lead-up to the offering we sought the Bank of corner of Castlemaine and Caxton Streets, Queensland's views and structured the sale to Milton; the office of the member for Mount ensure that it preserved the 125 years of Coot-tha, Ms Wendy Edmond, 76 MacGregor tradition for the Bank of Queensland as a Terrace, Bardon; the Department of Tourism, strong, vibrant and independent Queensland Sport and Racing, Level 3, 85 George Street, financial institution. We took our time making Brisbane; or the stadium web site, sure we got the right outcome at the right time. www.dtsr.qld.gov.au/stadium. This sale process was not about maximising profits or rationalising the MINISTERIAL STATEMENT Queensland financial services sector. It was about preserving a viable and energetic Bank of Queensland Queensland institution with more than a Hon. D. J. HAMILL (Ipswich—ALP) century of tradition. It has preserved career (Treasurer) (9.50 a.m.), by leave: This morning opportunities in the financial services sector for I would like to thank the Treasury officers, the future generations of Queenslanders. The very joint lead managers and those who provided strong response to the offering reflects specialist advice, as well as the 30,000 positively on the Bank of Queensland, which is Queensland investors, who helped make the one of the most recognised and respected recent sale of the Government's shareholding financial institutions in this State. I wish the in the Bank of Queensland such a success. Bank of Queensland board, its management, The shares sold by the Government in the staff and customers and all those who recent Bank of Queensland public offering participated in the offering all the best for the began trading on the Australian Stock future. Exchange yesterday morning. Again, like the Government's recent float MINISTERIAL STATEMENT of the Queensland TAB, the Bank of Queensland stock debuted at a respectable Regional Arts Development Fund premium to their retail issue price of $5.15 a Hon. M. J. FOLEY (Yeronga—ALP) share. The shares, which are trading on a (Attorney-General and Minister for Justice and deferred settlement basis, closed yesterday at Minister for The Arts) (9.53 a.m.), by leave: $5.25. This price is lower than the price for the Last Saturday, I opened the 1999 Regional head stock in the bank because it is trading Arts Development Fund conference in ex-entitlement. That is, buyers of the deferred Yeppoon. Entitled Re-visioning Regional Arts, settlement stock are not entitled to receive the this conference on Saturday and Sunday, 27 bank's 13c a share final dividend which, after and 28 November was an historic occasion. It taking into account franking credits, is worth was the first time representatives of local about 19c on a bulked up basis. government and regional communities from The sale of the Government's 40% around Queensland have been brought shareholding in the Bank of Queensland together to determine how funding is spent on honours a binding commitment given by the arts and culture at a grassroots level, by previous Government to the Commonwealth to regional communities for regional sell down our holding in the bank. By communities. completing the sell-down we have not only The strength of Queensland's cultural life honoured that commitment but also delivered lies in its regional diversity. Art is not something future certainty for the bank. solely for the winter palaces of the capital. It is 30 Nov 1999 Ministerial Statement 5529 the brilliance of the Mornington Island dancers, (9.56 a.m.), by leave: The Office of Fair the rich tradition of outback bush poetry, and Trading has just completed its annual toy the innovative story-telling of the panels of tiles survey and the results are encouraging. in the Innisfail River Reflections public art Consumer safety officers surveyed several project. major toy traders and discount stores in The importance of regional arts funding Brisbane and on the Gold Coast. They also was reflected in the high turnout of delegates surveyed stores in Rockhampton as an from around Queensland at the conference. example of a city that typifies the unique One hundred and fifty delegates attended variety of traders found in most Queensland from 50 local council areas in Queensland and regional centres. The survey concentrated on 60% of speakers came from regional areas, toys in the $1 to $20 price range because indicating the level of regional support for this there is a greater risk of problems with low-cost partnership between Arts Queensland and toys. local government councils. The purpose of the annual survey is to The RADF program was first introduced by identify and remove unsafe toys from sale and Labor in September 1991, and one of the first to test others that are considered suspect. The acts in office of the Beattie Government was to Office of Fair Trading will use this valuable honour this commitment to regional and rural marketplace intelligence to provide guidance Queensland by increasing RADF spending in to consumers to help them make informed, 1998-99 from $1.5m to $2m. In 1999-2000 safe choices about toys in the lead-up to one this Government again increased RADF funds, of the busiest consumer periods—Christmas. this time by $250,000 to $2.25m. In addition, our consumer safety officers RADF has to date funded over 4,000 provide valuable advice to suppliers on safety individual arts and cultural development deficiencies. The Office of Fair Trading has projects across regional Queensland since introduced mandatory safety requirements for 1991. Local government support for RADF is toys. By law, toys judged as suitable for high and continues to rise. Ninety-three per children under three must not contain small cent of Queensland local councils lodged parts as they are a choking hazard. In other RADF bids in February 1999 for the 1999-2000 words, if it cannot be bitten, tugged, sucked, financial year. chewed, jumped on and thrown about, forget it. Also, projectile toys for all ages should not The scheme is growing. In 1998-99, 107 be powerful enough to cause eye injuries. local government councils and 14 community councils in far-north Queensland partnered the Thirty-five retail toy suppliers were State Government in funding local and surveyed and around 350 different toys were regional arts and cultural projects. In 1999- examined. As well as determining if toys 2000 that grew to 115 local councils, and it is comply with mandatory manufacturing hoped that a drive to include more indigenous requirements, the Office of Fair Trading is also community councils will see 18 participating concerned about labelling on toys that could across the State in 2000. This increase in affect child safety. Labels should be accurate; State funds to regional Queensland was met otherwise consumers lose faith in them and in by a 1999-2000 increase in local government the toy market generally. funding of $200,000 to $872,171. I am very pleased to report that only two The Beattie Government's focus on of the 350 toys surveyed were regarded as regional development and the creation of jobs dangerous and needing to be withdrawn from in our regional communities is nowhere more sale. One of these was a $3.95 toy clearly demonstrated than in our commitment submachine gun set—a toy gun and four to those who live in and foster the arts and suction darts. Consumer safety officers were cultural life of Queensland's regions. Through concerned that the toy gun could also forums such as this recent Yeppoon discharge other, more lethal projectiles such as conference, this Government is giving those sharpened pencils. The toy store that supplied communities a say in their own future growth. the toy gun has voluntarily agreed to remove it from sale. The consumer safety section is taking steps to identify the importer and MINISTERIAL STATEMENT pursue the voluntary removal of the toy from Annual Toy Survey any other suppliers. Hon. J. C. SPENCE (Mount Gravatt— Eleven toys of the 350 surveyed were ALP) (Minister for Aboriginal and Torres Strait sent for safety testing. Of these, only one Islander Policy and Minister for Women's failed the test—a small wooden wheel toy Policy and Minister for Fair Trading) shaped like a turtle. It is a simple push toy for 5530 Ministerial Statement 30 Nov 1999 infants. When the toy was subjected to tests to $726,000; south-west Queensland— simulate biting, dropping and twisting, it broke $270,000; and south-east Queensland— into parts that were small enough to choke a $267,000. In north Queensland, important child. The Office of Fair Trading has asked the flood mitigation works will be carried out on the toy retailer to stop supplying this toy and to Herbert, Johnstone, Burdekin, Russell and remove and check other wooden toys to Douglas Rivers. ensure their standards are intact. A further 16 This financial year, the Beattie toys were either incorrectly labelled or lacked Government has committed $486,000 towards safety warnings. The retailers concerned have the River Improvements Trusts Program. This been advised about these deficiencies. is an increase of $236,000, or almost 50% on Although these failings are not regarded last year. One of the reasons for these as serious enough to warrant withdrawal of the additional funds is to enable the trusts to products, the practice of alerting retailers is become more proactive in preventing expected to ensure improved performance in problems rather than repairing damage after it the future. Consumers must have confidence has occurred. At the same time, I am in labelling. Of course, many toys suitable for encouraging river trusts to take an integrated older children pose dangers for the younger approach to managing our river catchments to ones. Much Christmas paraphernalia—such as provide more effective and sustainable fabric Christmas stockings with attached outcomes. adornments—are also potentially hazardous. I want to particularly congratulate the The survey results are pleasing in that North Queensland River Trusts Association, they show a generally high level of chaired by Mrs Pat Botto, for taking a lead in marketplace compliance with toy safety this proposed whole-of-catchment approach to standards. Only two products withdrawn from natural resource management. The sale out of 350 surveyed shows a high level of association is actively encouraging and safety awareness. And for this, I commend facilitating individual trusts to develop stream retailers throughout Queensland. And lastly, management plans and works programs in but most importantly, I wish all consumers a close consultation with catchment groups. The happy and safe Christmas. recently completed North Queensland River Trusts Association conference in Innisfail provided a significant step towards achieving MINISTERIAL STATEMENT these outcomes. River Improvement Trusts I have asked the association to work Hon. R. J. WELFORD (Everton—ALP) closely with the Landcare and Catchment (Minister for Environment and Heritage and Management Council and my Department of Minister for Natural Resources) (10.01 a.m.), Natural Resources to develop plans for an by leave: Today I would like to take this integrated catchment-based management opportunity to highlight to the House the approach. A steering committee is now outstanding work of thousands of people working on the preferred model for integration around Queensland involved in river of planning and management activities and improvements trusts. With the knowledge of the role of Government in these new this Government's commitment and support, arrangements. It will provide recommendations dedicated people in communities around to me on options for a new structure. Such Queensland are acting to protect our rivers, strong partnerships, and more powerful streams and flood plains from severe flood management structures, will provide a lead in damage and degradation. The work of these addressing whole-of-catchment issues and river improvement trusts is particularly more integrated natural resource important in north Queensland, where heavy management. rain in the wet season has the potential to I congratulate the river improvement trusts cause flooding. on their contribution to catchment I am pleased to inform the House that the management and flood mitigation and, most 18 river trusts throughout Queensland will this importantly, the protection of lives and year access $3.8m in funds for improvements property. The natural synergy between these to waterways. This is a combination of trusts and like-minded organisations, such as integrated catchment management, Rivercare catchment management groups, provides an and NHT grants, State Government subsidies opportunity for strong partnerships and even and river trust funds. The approved funding will more effective resource management. The be divided amongst trusts in north winners from such arrangements will be local Queensland—$2.5m; central Queensland— communities throughout Queensland. 30 Nov 1999 Private Members' Statements 5531

PUBLIC WORKS COMMITTEE by declaring a moratorium on any Report plans to introduce mandatory tree- clearing guidelines on freehold land; Mr ROBERTS (Nudgee—ALP) (10.04 a.m.): I lay upon the table of the House (2) the introduction of voluntary, the Public Works Committee's report No. 61 on scientifically-based tree-clearing public sector backflow prevention programs. guidelines on a regional basis to be The Minister for Public Works and Minister for prepared over the next 6 months; Housing requested the committee to consider (3) the State providing full compensation inquiring into the issue of public sector for any loss in property value or backflow prevention programs following a viability for the protection of areas of period of intense media and parliamentary high conservation value; debate. The committee was unable to produce (4) the State Government and industry a unanimous report on this issue. The majority groups conducting an education report has focused solely on matters relevant campaign to inform producers of the to the inquiry's terms of reference. Several voluntary guidelines and other issues were raised by witnesses, which recommended practices; were considered by those supporting the majority report to be peripheral and, in some (5) continued satellite monitoring by the cases, unrelated to the terms of reference. State Government and collaborative scientific studies with industry to In summary, the committee found that, ensure such guidelines facilitate whereas high-risk sites do exist, overall sustainable vegetation management; backflow presents a minimal risk to public and health, it is easily prevented, and current public sector programs are an appropriate and proper (6) a commitment by the State management response. The committee found Government that if such studies that public sector agencies were efficiently prove to result in sustainable managing their programs and that they were vegetation management practices effective in minimising the risk of backflow being adhered to, the voluntary tree- incidents occurring in public sector buildings. clearing guideline program be During the inquiry, a number of witnesses and maintained." submissions alleged that serious health consequences had arisen from backflow PRIVATE MEMBERS' STATEMENTS incidents within Queensland public sector facilities. The committee conducted its own State Government Achievements research into these incidents and determined Hon. R. E. BORBIDGE (Surfers that they were unfounded. Paradise—NPA) (Leader of the Opposition) The committee hopes that the publication (10.07 a.m.): Last week in this Parliament, the of this report will provide some balance to the can't do Premier detailed to the House his debate on backflow and help allay some of the non-achievements to celebrate his 17 months unnecessary fear that was generated during in office. And going through those particular the public debate on this issue. I commend achievements one by one—the achievements the report to the House, and I give notice that, of the can't do Premier—some of them go on Thursday next, I will move that the House back to the Bjelke-Petersen era, some of them take note of the committee's report. go back to the Cooper era, some of them go back to the Goss era, and some of them—indeed, the majority of them—go back NOTICE OF MOTION to the two and a half years of minority coalition Tree-clearing Guidelines Government in this State. In fact, the only project that the Premier can claim as his own is Hon. R. E. BORBIDGE (Surfers the Lang Park superstadium. He has taken Paradise—NPA) (Leader of the Opposition) credit for everything that every Government (10.05 a.m.): I give notice that tonight I shall has done in Queensland for well over a move— decade. "Recognising the threat of mandatory So what do we see? Because this tree-clearing guidelines and the Government needs to cover up this absolute unresolved question of compensation for charade of non-performance, we see the loss of property values and viability, this weekend stuntman in action. We have a State Parliament supports: Government of stunts, not of substance. We (1) protecting Queensland's environment had some beauties over the course of the and putting an end to 'panic clearing' weekend. We had the $100m ransom note to 5532 Private Members' Statements 30 Nov 1999

Senator Hill, which was faxed through to his "Whilst it is the current intention of office on Saturday morning with a demand for the developer and trustee to renew the payment by sunset on Sunday. We then had lease, circumstances such as changes to the incredible admission that we are going to time share law might arise where the revisit daylight saving, that that is now Labor lease is not renewed and the right to use Party policy in Queensland. And then we had accommodation will cease." the juiciest of the lot: this Premier is going to Whilst this time share offer may comply with do what no other Australian leader has been Australian Securities and Investment able to do; he is going to take on the tobacco Commission rules, I strongly urge my giants, and he is going to win. So Premier constituents not to sign up before they obtain Beattie is going to take on Philip Morris. He is reliable, independent advice. It could be a wise going to take on all the others. Never mind decision for those who have already signed up about the jobs, never mind about the billions to exercise the five-day option and get out of of dollars that will be wasted by a stuntman, the contract. not a Premier. Time expired. Time expired.

Caboolture Electorate Club Premier of Australia Mr FELDMAN (Caboolture—ONP) Mr PEARCE (Fitzroy—ALP) (10.09 a.m.): (10.11 a.m.): I rise today to formally express Mining communities are again being targeted the gratitude of the Caboolture electorate to by sales representatives pushing tax-driven the leaders and front bench members of the investment schemes or timeshare options, Beattie Labor Government, the National Party such as the one that has been brought to my and the Liberal Party because never attention in recent days. The latest scheme before—at least not in the last 10 years—have that people have signed up for is a timeshare the Caboolture people seen such bipartisan option offered by a company called Club interest in Caboolture. Call the community Premier of Australia. Sales representatives cynical, if one will, but they see this acting for and on behalf of Club Premier have intervention as a desperate grab for the voter been signing up prospective unit holders in base that the major parties lost at the last timeshare units in Bali. State election. I do not have time to go into the finer Community leaders wish me to pass on details, but Club Premier offers for purchase their total appreciation and their request that timeshare units for one week per year. The the major parties continue to fight over who prices vary from $16,000 for a studio gets credence for what project and who apartment to $18,900 for a one-bedroom unit receives kudos for what lobbying. The people and $23,500 for a two-bedroom unit. These of Caboolture are so thankful for the pennies figures were confirmed as late as 4.30 p.m. from heaven that keep falling into this yesterday by Club Premier management. On electorate—an electorate that is so under top of this, there is an annual management pressure from the reduced infrastructure fee of $410, $435 and $512, respectively. If inflicted upon it that the recent approvals are honourable members do the sums, they will just catching up with the abuse and neglect see that the promoters will receive $832,000 from both sides of this House over the last 10 for a studio apartment when 52 weeks are years. sold. The management fee alone for the same period is $21,320. In the last two weeks, we have seen $350,000 fall out of the back pocket of the For a one-bedroom apartment, the Minister for Transport for the Bribie bridge. Mr company will earn $982,800 if it sells 52 Don Craig, the real lobbyist in the electorate, weeks, while raking in $22,620 in wishes to thank the Minister for that little bit of management fees. If one looks at the same money that fell out of his back pocket. The scenario for a two-bedroom apartment, one will Elimbah State School P & C Committee see that we are talking about $1,222,000 with wishes to thank the Minister for Education for $26,624 in management fees. The current the $820,000 that fell out of his back pocket seven-day accommodation and flights last week. He must have had a big tear in his package to Bali is around $1,130. back pocket. The school was very much under On page 8 of the company's strain because of its inadequate toilet facilities. unprofessionally presented prospectus, under The new facility was badly needed. I have the title "Risk Factors", unit holders will see that already thanked the Minister for Police for the the units are not freehold. The document extra 10 police who have been assigned to the states— area since February this year. 30 Nov 1999 Private Members' Statements 5533

My electorate has been so under and not because they are not council pressure from increased population numbers concerns. Mr Matthews says— and increased student numbers that it is "At the last election in 1997 there hoping that the pockets of all Ministers on the were 47 candidates and I expect a like front bench are as deep and have as many amount for the year 2000 election. tears as those of the Ministers I have Council resources and staff are always mentioned because it will take a lot of chaff to functioning under considerable pressure. I buy back the votes from this disempowered, simply cannot have staff deviating from disfranchised and disgruntled voter base. The their normal duties to satisfy the zeal of people in my electorate are looking forward to such a number of aspiring councillors. The the ministerial pockets being as big and as system simply will not bear 47 separate torn as those I have mentioned and for the attacks on its day to day functioning." money to keep falling on the electorate and making it as green as grass once again. Well, excuse me! It is not a matter of these concerns or problems being manufactured. The people of my electorate do not want The CEO is indulging in arrant nonsense. to see neglect any longer; they want to see What I want to know is who directed the CEO the money, which they have been wanting for to write this letter. the past 10 years, coming into the electorate. Time expired. Time expired.

Local Government Funding Pine Rivers Shire Council Mr HOBBS (Warrego—NPA) (10.15 a.m.): Mrs LAVARCH (Kurwongbah—ALP) I wish to advise this House about finance, (10.13 a.m.): I know elections bring with them Labor Party style. In a desperate need to fund a silly season, and the local government the Budget, this Government raided election scheduled for 25 March 2000 is no departments of $568m. This money was taken exception. Even though the elections are four from departmental working funds. I wish to months away, the silly season has already advise the House of the impact of these cuts struck in the Pine Rivers Shire Council. on local government. Some $26.9m was The season was kicked off by a letter sent handed back to the Government and was thus last week by Mr John Matthews, the Chief lost to local government. Executive Officer of the Pine Rivers Shire The Minister for Local Government, Mr Council, to Division 6 candidate, Michelle Mackenroth, is a member of the Cabinet McJannett. I seek leave to table that letter. Budget Committee. He irresponsibly led an Leave granted. unwilling pack of Ministers to undertake these Mrs LAVARCH: In this letter, Mr Matthews refunds to Treasury. One would have thought firstly points out to Mrs McJannett that he is that a Minister with his experience would have aware that she has announced her intention to realised the long-term consequences of his stand as a candidate, but as he has not actions. That was money which the Minister's formally announced the election he must, of department may require this year if local necessity, regard her announcement as a government applications come in on time. statement of intention only. What does this Mr MACKENROTH: I rise to a point of mean? He does not explain himself, but it can order. The member is misleading the House be reasonably inferred that he is saying that, in about what I have told him. I have told him on his view, no-one can refer to themselves as a at least 15 occasions that if local governments candidate until he calls the election. ask for money, they will be paid. I do not know But it gets better! Mr Matthews goes on to why the honourable member continues to say that he is also aware that Mrs McJannett mislead the House. has commenced campaigning and has Mr SPEAKER: Order! There is no point of attempted to rectify resident grievances by order. attending at the council and speaking to staff. Mr HOBBS: The Minister's department The CEO's response to this is: "I require you to may require this money this year if local cease this practice." government applications come in on time. Do honourable members know why the Most importantly, how is the Minister going to CEO issued this directive? It is not because fund local government next year and the year the grievances are not worthy of being after when the Government has to find in followed up, not because they are not excess of $500m in order to catch up when genuine, not because they cannot be rectified other departments call on their funding? This 5534 Private Members' Statements 30 Nov 1999 money will have already been spent in the has a car, one is more inclined to drive to work, 1999-2000 financial year. particularly if public transport is not reliable. Minister Mackenroth has placed local A review of public transport usage in the government in a precarious financial position Centenary suburbs is warranted. This review for the future. The Minister said that it would could identify the number of people who would be okay because he was on the CBC. He said access public transport if it were more reliable that he would fund any shortfalls. However, and more frequent. This should be followed by other Ministers may have other ideas. Mr a public transport promotion campaign. I urge Mackenroth will not be the Minister for Local the Minister for Main Roads to work in Government forever. His tenure is only consultation with the Brisbane City Council to temporary. The positions of the Minister and undertake this essential review. the Government come up for review in one and a half years' time. The way this Government is performing, the prospect of it Gun Laws being returned is becoming very questionable. Mr HORAN (Toowoomba South—NPA) Local government in Queensland has (10.19 a.m.): When the new gun laws were been aware of delays in the uptake of grants introduced in Queensland, very strong and subsidies. For some time, local indications were given to people that they government has put in train measures to would be able to have the number of guns speed up applications. As a result, the funding they required under category A or category B. needs to be available. Many years ago, we did On page 1 the Government's formal document away with the strict guidelines— stated— Time expired. "As long as you have the appropriate licence, there is no restriction to the number of firearms or amount of Centenary Highway ammunition you can own." Mrs ATTWOOD (Mount Ommaney—ALP) At the moment, people who are applying for (10.17 a.m.): From about 7 a.m. to 9 a.m. on firearms under category A and category B are week days, the Centenary Highway being severely questioned about or denied the bottlenecks for about 2 to 3 kilometres from additional firearms that they are seeking. We the Toowong roundabout. In the afternoon, in the Opposition are receiving reports from all the bottlenecks occur at the Ipswich Road end over the State about this. This is particularly of the highway. This amount of traffic places a concerning for those who are seeking category great strain on the highway. Brisbane's A firearms, because under the legislation there Western Gateway Environmental Quality report is no need to state a particular need for a indicates that numbers of vehicles will increase firearm as long as the applicant has the from 35,000 to 65,000 by 2011. licence. With respect to categories B, C and People living along the highway are others, there is a need for people to state their already suffering from the trauma of increasing need for any additional firearms they require. It traffic, noise and fumes. The Department of has always been the spirit of the legislation Main Roads is currently trialling a reduction in that people should be able to have any the speed limit on part of the highway close to number of category A or category B firearms residential areas. The problem has no simple that they require and wish to obtain under the solutions. If we add an extra lane to the permit system. highway, a bottleneck will still occur at the I call on the Beattie Labor Government to Toowong Cemetery and onto Milton Road. tell this Parliament in a statement whether or However, at the other end of the highway, not it has provided any political direction to the Federal Government funding needs to be Weapons Licensing Branch and whether or provided to improve the Ipswich Motorway not it will stand by the legislation so that roundabout to facilitate easier traffic flow onto decent, law-abiding people who have licences Ipswich Road. An alternative and less to own firearms, and who under the legislation expensive solution would be to increase and have every right to obtain additional firearms encourage the use of public transport. under categories A and B, can do so without The Lord Mayor of Brisbane has long being harassed and made to feel like criminals promoted clean air policies, particularly in when they are questioned about or denied relation to the use of public transport and firearms additional firearms. reducing the number of cars on roads. We want to know what political direction According to 1996 census data, 50% of has been given. This side of the House stands households have 2 to 3 motor vehicles. If one by the legislation. We guarantee that the 30 Nov 1999 Private Members' Statements 5535 legislation will ensure that people can obtain and I look forward to updating this House on the firearms that they need. We demand to their future success. The capability of the IT know what direction has been given. centre will be put to the test in the New Year, Time expired. when the Smithfield State High School will be the first State school in Queensland to offer Years 11 and 12 students with a Certificate II Smithfield State High School in Arts, Interactive Media in conjunction with Dr CLARK (Barron River—ALP) the prestigious QANTM Corporation (10.21 a.m.): Two weeks ago, I joined Multimedia Centre, Queensland's largest Education Minister Dean Wells on a very multimedia company. special occasion—the opening of the new Information Technology Centre at the Rosslyn Bay Boat Harbour Smithfield State High School. Honourable members may remember that last October I Hon. V. P. LESTER (Keppel—NPA) told the House of the arson that destroyed the (10.23 a.m.): I wish to make a couple of IT building, which also housed the radio studio. comments in relation to the attitude of one or Students and staff lost vital resources and two Ministers opposite. Recently, the thousands of hours of work. The Cairns construction of a new trailer park at the community and other schools rallied behind Rosslyn Bay Boat Harbour has raised some Smithfield, coming forward with offers of issues that people were not happy about. Over support and replacement computers, and the about 18 months, we did all that was possible Far North Queensland Assistance Fund to have those issues resolved. We invited the initiated a fundraising appeal. The Education Minister to the area. Unfortunately, there was Minister flew to Cairns days after the fire, and I almost an open confrontation between the am proud to say that the Government made a Transport Minister and the Wilson family of the commitment to the principal, school council Keppel Bay Marina. and the P & C not just to replace what was lost Mr BREDHAUER: I rise to a point of order. but to create a state-of-the-art building Mr LESTER: No! Come on, you cannot designed with input from the school to take get out of it. advantage of recent advances in technology so that students could continue to produce Mr SPEAKER: Order! The Minister has a award-winning work at the cutting edge in point of order. multimedia and information technology. Mr LESTER: You cannot get out of it. The result is the centre opened by the Mr SPEAKER: Order! The member for Minister, which houses three fully equipped Keppel! computer labs, space for teaching and Mr BREDHAUER: To suggest that there technical staff and a sophisticated lecture was confrontation between me and anyone is theatre for multimedia preparation and wrong and offensive. I ask that it be withdrawn. presentation. The radio studio has been restored and incorporated in another teaching Mr LESTER: Rather than— block with upgraded facilities, and a new Mr Borbidge interjected. computer lab has been added to the arts Mr SPEAKER: Order! No, the Minister building, where creativity and technology will asked for a withdrawal. The honourable be melded into multimedia productions—all at member will withdraw. a total cost of approximately $1.1m. Mr LESTER: There is nothing to withdraw. I take this opportunity to thank Minister Dean Wells for his commitment to the Mr SPEAKER: Order! The honourable Smithfield State High School and to member was asked to withdraw those congratulate the Principal, Larry Gallagher; statements. Elaine Oliver, the President of the School Mr LESTER: Withdraw what? Council; Brendan Delargy, the President of the Mr SPEAKER: Order! The honourable P & C; and IT staff, in particular John Hamilton member was asked to withdraw those for his vision and commitment. Under this statements which the Minister finds offensive. leadership the school has dedicated itself to ensuring that Smithfield and its students will Mr LESTER: I do not know how I can continue to be at the forefront of IT education withdraw something that I cannot withdraw. and achievement in Queensland schools. Mr SPEAKER: Order! You can withdraw; I have no doubt that students from that is in the Standing Orders. Smithfield will make a significant contribution to Mr LESTER: If it suits the Minister, I will Queensland's goal to become the Smart State withdraw it. I tried to save three Norfolk Pine 5536 Private Members' Statements 30 Nov 1999 trees on a mound. However, the Minister did coaches and officiators, volunteers and service not just shift them, he smashed them down. to junior sport as well. That is what happened. The residents of the The night will stay long in my memory as marina and the people of Yeppoon were very the night that Queensland sport honoured angry. For the Minister to turn around— itself—and so it should—with the successes it Mr Bredhauer interjected. has had over a number of years. One point that stands out for me was the number of Mr LESTER: The Minister cannot get out sportswomen who, either individually or as a of it. team, were nominated or who were successful Time expired. in the categories of sport. A few years ago, I think the awards would have been dominated by the Rugby League players and cricketers of Queensland Sports Award the sporting world. I believe sport has come a Mr REEVES (Mansfield—ALP) long way in this State. In the year 2000 and (10.25 a.m.): Last night, along with a number beyond the future looks terrific for sport. of my colleagues on both sides of the House, I had the pleasure of attending the Sports International Day of People with a Disability Federation of Queensland 1999 Queensland Sports Award. The night was to showcase the Mr TURNER (Thuringowa—IND) 1999 Sports Award. The night also was used (10.27 a.m.): Next Friday is the International to present the Queensland sporting heroes of Day of People with a Disability. On that day we the century. Never before—and, may I say, celebrate their progress, achievements and perhaps never again—will such Queensland their improved quality of life. In 1981 we sporting legends be in the one place at the celebrated the Year of the Disabled. In that one time. Among others in attendance were year, we opened the closet doors to bring such legends as Mal Anderson, Lisa Curry, disability services out of the Dark Ages. Peter Gallagher, Ian Healy, Joyce Lester, Craig Changes have been made to laws, funding, McDermott, Tony Shaw and Vicki Wilson. support services, building codes and attitudes, bringing about positive improvements to their I have been to many sporting functions or quality of life. events but never have I witnessed a longer standing ovation than when the names of the Access to recreational activities is on the Queensland sporting heroes who were increase, with community understanding and attending were announced. This standing awareness contributing greatly towards ovation was matched only during the speech providing specifically designed leisure activities of the legend of Queensland sport, Rod Laver. and equipment. The user friendly Strand development showed a lot of forethought and Mr Schwarten: A Rocky boy. understanding, allowing easy access to the Mr REEVES: As the Minister said, he was beach, along with the much longed for a Rocky boy. He is a man who epitomises disability accessible jetty, which will be great for what Queensland sport is all about. He talked fishing. about his early days at Rockhampton and the In my maiden speech in Parliament I great heights that he has achieved, including declared my commitment to creating equal his personal triumphs over the past year. I opportunity for the disability sector of the think I speak on behalf of many of the community. Changes in community attitudes honourable members who were at the Sports have gone a long way to empowering people Federation awards last night when I say that it to see their abilities instead of their disabilities. was an absolute privilege and an honour to Many now enjoy careers, study and participate attend and be in the company of such great in sporting activities, drive their own cars, live sportspeople. alone and travel. Although there are still a lot The Sports Federation of Queensland, of gaps to be filled, these people can see a under the guidance of Peter Cumiskey as light at the end of the tunnel. Chief Executive and his assistants—Nadine It was Sara Henderson who said, "If you Dennis and Ingrid Keates—should be can't see a light at the end of the tunnel, slide congratulated on putting on what surely must right down there and light the bloody thing be regarded as the greatest sporting night of yourself." Today many people are doing just the century. To me, one of the highlights of that, but there are still others who are unable the evening was the fact that we not only to do that. They need us, as a conscious acknowledged the great sportspeople of the caring body, to slide right down that tunnel year and the century but we also and, on their behalf, light the biggest bonfire acknowledged the great sports administrators, we have ever seen. We need to light that 30 Nov 1999 Questions Without Notice 5537 flame not only for people with a disability but Mr BREDHAUER: Why does he not make also for the family carers who take up the a personal explanation instead of interrupting shortfall of Government assistance. They carry my answer? the burden of meeting the needs of their loved Mr BORBIDGE: I find the suggestion that ones, and their voluntary sacrifice does not go I am not supporting the Government's moves unnoticed. Awareness, understanding of the offensive and I ask that it be withdrawn. I am challenges met every day by people with a seeking information in regard to the future of disability, a little of our time and assistance Qantas and Ansett services. where needed—this is how we can celebrate the International Day of People with a Mr SPEAKER: Order! It is not a debate. Disability. It is an honour for me to be invited to Mr BREDHAUER: Anything he finds open this celebration for Thuringowa. offensive I withdraw. I come from Cairns; I live in Cairns and my seat covers an area to the north and west of QUESTIONS WITHOUT NOTICE Cairns. We have representatives in this Energex Parliament who remember the shot in the arm Mr BORBIDGE (10.30 a.m.): I ask the that Compass was—while it lasted—to the Minister for Mines and Energy: why has he tourism industry. We have an opportunity here endorsed business plans of Energex to to develop a significant boost to regional consider moves into credit cards, home loans tourism on the Gold Coast, on the Sunshine and the telecommunications industry? Coast, in Mackay, in Rockhampton, in Townsville, in Cairns, in Toowoomba, in Mr McGRADY: I have said many times in Longreach—in centres throughout the State of this place in relation to the activities of the Queensland in our second biggest industry, Government owned corporations that the our second biggest employer, and the board is there to make decisions as to how Hanrahan over there says, "We'll all be they can grow that particular business best. I roon'd." think we are creating a very dangerous Mr BORBIDGE: I rise to a point of order. I precedent if the Minister of the day becomes did not realise Virgin was going to fly to involved in every single decision of those Longreach. boards. I also say that my understanding is that the Energex board discussed some of Mr BREDHAUER: If we can attract a third those proposals and rejected them. airline to the State of Queensland, it will provide tourism benefits across the length and breadth of this State. The people in the Virgin Airlines outback, the people whom the Leader of the Opposition purports to represent—although Mr BORBIDGE: I refer the Minister for not him and his mates from the Gold Coast, I Transport and Minister for Main Roads to the appreciate—and the people on the Gold Coast Government's efforts to entice Virgin Airlines to would benefit from a third airline coming to locate its Australian base in Queensland, and I Queensland. We could make the Gold Coast would make the point at the outset that those more competitive with those destinations moves enjoy bipartisan support. overseas which are going to become cheaper Mr Elder: But! in relative terms because his mates in Mr BORBIDGE: No, I ask a very simple Canberra introduced the GST which will bump question: what assurances have been up domestic air fares by 7%. obtained from Qantas, Ansett and their This is the responsibility of the Premier, affiliates that they will maintain services to rural who I understand spoke with Mr Branson and regional Queensland at current frequency yesterday, and the Deputy Premier and and cost levels in light of the prospect of a Minister for State Development. They will be price war on major east coast capital city looking at a package that might be used to routes? lure Virgin Airlines to base its headquarters here. We will undertake initiatives to try to Mr BREDHAUER: I would have thought attract a third airline here. I would be confident that of all the people in this Parliament who that, if we could get a third airline up and would have been supporting the Premier's running, it would improve air services initiatives to attract a new airline—a third throughout Queensland, improve air services airline—to this State, the member for Surfers to regional centres, and improve business and Paradise might have been one of those who employment opportunities for people was lending a bit of support. throughout the State. It is a crying shame that Mr BORBIDGE: I rise to a point of order. the likes of the member for Surfers Paradise 5538 Questions Without Notice 30 Nov 1999 come in here and start putting obstacles in the stars were: Vicki Wilson, John Eales—the list road, undermine, whinge and whine and carp goes on. Most even know that both teams right from the very first day. were captained by Queenslanders. If Mr BORBIDGE: I rise to a point of order. honourable members look at the international Those remarks are offensive and I ask that performance of Queensland athletes in 1999, they be withdrawn. It is clear that the Minister less than a year out from the Sydney has not received assurances from Qantas and Olympics, they have every reason to feel Ansett that they will maintain their regional confident of more sporting success in the services. future. Mr SPEAKER: Order! The Leader of the The national spending on sport 15 years Opposition has asked his question. He will ago was $8m. Now it is more than $150m. The resume his seat. obvious question is whether we should keep funding high performance sport at that level Mr BREDHAUER: I withdraw. once our shot at glory in Sydney next year has passed. One argument is that elite sport is one Queensland's Sporting Achievers of our great national products and that funds should not only be maintained but increased Mr SULLIVAN: I refer the Premier to to ensure we keep our place on the Queensland's outstanding sporting success in international sporting ladder. Another is that the past 12 months, and I ask: is he aware of we should be channelling funds into our any new rising stars to join the ranks of communities, giving priority to areas such as Queensland's great sporting achievers? junior development and promoting widespread Mr BEATTIE: Last night, along with other participation and physical activity for all of us. I members, I had the pleasure of attending the would argue that the Federal Government Queensland Sports Federation Awards, where needs to do both: keep supporting the elite world women's triathlon champion Loretta sports system and attend to community needs Harrop was announced as the Queensland as well. sportsperson of the year. Loretta, who is 24 The Queensland Government is reviewing years old, has won five firsts, a second and a its funding to sport. We have made significant third in international competitions this year. On contributions and we intend to continue to do behalf of all members of this House and all so. We want to make sure that opportunities Queenslanders, I congratulate her on being an are made available to build and to provide outstanding athlete and on her success, as I opportunities for talented young people. We passed on to her father and sister last night. are also acting on the ever present threat of I also had the pleasure of presenting the drugs in sport. Next year we will develop drugs Patron's Award for Service to Sport. in sport legislation to support the testing of Interestingly, it is the first time in five years that Queensland athletes, but Government and the patron, who is the Premier, actually sport will need to remain ever vigilant. attended the awards. The winner of that award Last night I had the pleasure of sitting was Castlemaine Perkins, a company that has next to Rod Laver. What a great done much to support sport. Queenslander! I am happy to report to the Dr Watson: Goss didn't attend. House that his health has improved Mr BEATTIE: Wayne Goss was the last significantly and he is a gentleman—a great Premier before me who did attend the awards. ambassador, not just for tennis and not just for The Leader of the Opposition when he was Queensland, but for Australia. Premier never did. I am told that this was the first time that Bank of Queensland Float the patron was able to present the award, so it Mr SLACK: I refer the Treasurer to was great to be there last night. The coming of Saturday's issue of the Sydney Daily a new millennium is an appropriate time to Telegraph, which reported that more than reflect on the future of sport in Queensland. 3,000 general pool applications for Bank of Sport largely personifies what we have Queensland shares were left stranded in believed an Australian to be: strong, brokers' in-trays when he closed the determined and big-hearted. Government's offer two days early, and I ask: Sport has been increasingly important in does he believe that it is fair that mum and fashioning our identity. Even people who do dad investors across Queensland should miss not consider themselves sporting fans have a out when they had clearly lodged applications fair idea who won the Rugby World Cup and with their brokers before his unannounced the world netball title this year and who the closure; can he explain why he departed from 30 Nov 1999 Questions Without Notice 5539 accepted industry practice in not advising in my ministerial statement this morning, the brokers of his intention to close the offer early stock is trading strongly. There is a lot of to avoid this kind of unfortunate situation; and investor confidence. The Bank of Queensland will he review his arbitrary decision to reject can be justly proud of the outcome and so can those mum and dad applications lodged with the people of Queensland. brokers prior to last Tuesday's early closure? Mr HAMILL: That is a very timely question Pacific Motorway by the member for Burnett, considering that I made a ministerial statement in this place Mr PURCELL: I refer the Premier to announcing the decision last week. It has yesterday's official opening of the first stage of taken the Opposition a week to catch up with the Pacific Motorway. I ask: what is the the news. timetable for completion of that massive project? Mr Bredhauer interjected. Mr BEATTIE: I am delighted to tell this Mr HAMILL: If he actually read the House that the first stage of the Pacific Hansard as opposed to the Sydney Daily Motorway is a reality. Yesterday the Transport Telegraph, he might be up to date. In relation Minister, the Honourable Steve Bredhauer, to the particular matter to which the and I officially opened the first of six sections honourable member refers, I could firstly refer of the motorway. We did it with style as well. him to my ministerial statement last week in The $52m, 2.5-kilometre section delivers a which I made it abundantly clear why the long-awaited improvement to an important action was taken to have the offer closed economic and residential district. The Nerang when it was. The offer closed to those retail section stretches from the Nerang River to investors as announced. It also remained Pappas Way. The other five sections of the open for Bank of Queensland shareholders world-class $750m, 43-kilometre motorway that and employees up until 5 p.m. on Thursday. will link Queensland's two biggest cities are The reason for that action was that, by the due to open by March next year. We are on time the announcement was made, it was target. What a can-do Government! already heavily oversubscribed. If the member for Burnett spent more time reading the offer The motorway will provide eight lanes document than he spends reading newspaper between the Logan Motorway and the Smith reports that are about a week late, he would Street Motorway and six lanes from the Smith know that the offer document made it Street Motorway. It forms part of the national absolutely clear that applications had to be highway system. I am pleased to acknowledge received by the share registry. Therefore, one the Federal Government's input. Senator would expect that people who put applications Boswell was at the opening yesterday. He into their brokers would expect that their made a reasonable speech, too. It is good to brokers would put the applications across to see the Federal Government in partnership the share registry. with the State Government on that issue. It has been a massive project and a massive As I said, the decision was taken because feat of engineering. The Pacific Motorway is the offer was already heavily oversubscribed. Queensland's smart road. New technologies, The action that I took on behalf of the new materials and new construction methods Government was exactly in line with the offer have been introduced during its completion. I document and the provisions in the offer have to say that the member for Cook is one document. I took legal advice on the matter. of the best Transport Ministers this State has The legal advice confirmed to me that the ever seen. What an impressive performance action that was being taken was not only from this Minister! proper but was appropriate and was in keeping with industry practice. If the member for Information technology has been Burnett suggests that those applications that perfected and applied, with video cameras were with brokers should now be included, improving security and the supply of then that would represent an enormous information. The environment has also been breach of faith with the investing community. It given top priority, with the protection and would, no doubt, also give rise to certain legal enhancement of wildlife corridors, rivers and entitlements for some sort of measure of streams along the route. Construction has compensation. All that would be wholly involved literally moving hillsides and imprinting inappropriate and quite contrary to the legal a new super highway— advice that was taken. Mr Johnson: Did you invite any koalas? The offer of the Bank of Queensland has Mr BEATTIE: Is the member opposing been extraordinarily successful. As I indicated this road? 5540 Questions Without Notice 30 Nov 1999

Construction has involved literally moving number. They included major Queensland hillsides and imprinting a new super highway investors. I say to the member for Moggill— right in the midst of one of the busiest travel Mr Borbidge: Bad luck for mum and dad, connections in the nation. Up to 85,000 cars isn't it. have continued to use the road each day as workers got on with the job of creating a new Mr SPEAKER: Order! The Leader of the highway. The motorway has also been a major Opposition will cease interjecting. provider of jobs, almost 2,000 at the peak of Mr HAMILL: The Leader of the construction and a further 4,000 in industries Opposition would be the last person who supplying the project. This motorway will not should be concerned about the interests of only benefit the Gold Coast tourism industry mum and dad investors in the Bank of but it will also enhance the potential for Queensland. It was the Leader of the development and economic growth along the Opposition, when he was the Premier, who corridor between Brisbane and the Gold Coast. tried to sell out the whole of the Bank of Everyone associated with this road—the State Queensland into the Suncorp-Metway merger. and Federal Government departments, the In fact, were it not for the Labor Opposition at contractors, private industry suppliers and, the time with the support of the member for most importantly, the workers—have been Gladstone, the Leader of the Opposition would trailblazers in constructing this highway. I have sold out the Bank of Queensland lock, congratulate them all for their hard work. When stock and barrel. So much for his crocodile all stages are completed, this project will rank tears for so-called mum and dad investors. among Australia's great national The man has no shame, no honour, no developments. This is the Beattie Government morality and no decency. delivering again. It was built by us. We have carried on and delivered. We will make certain Mr BORBIDGE: I rise to a point of order. that the Gold Coast gets the attention it Why does the Treasurer not explain to the deserves. We are building new convention House how he rigged the rules to assist Labor centres and new roads. The Gold Coast has Holdings? never seen such activity. Mr SPEAKER: Order! There is no point of order. Bank of Queensland Float Mr HAMILL: As I said, he has no Dr WATSON: Talk about superficial! I refer decency, no morality, no integrity and no the Treasurer to the Government's sale of its honesty. To make the claims that he has just 40% stake in the Bank of Queensland. Can he made further demonstrates that point. The confirm that mum and dad investors—to use whole process in relation to the allocation of his terminology—have received a maximum of shares in both the TAB and the Bank of 245 shares each? Can he confirm that, by way Queensland was conducted to the highest of comparison, the ALP's investment possible standards undertaken under the company, Labor Holdings Pty Ltd, has supervision of a probity auditor, a feature in received in the order of 10,000 additional these offers that never featured whatsoever in shares? Can he confirm that that will take some of the stranger dealings that went on Labor Holding's total stake to almost 90,000 when the coalition Government was dealing shares? Does he believe that it is fair that his with Suncorp-Metway. Labor mates can get an extra 10,000 shares when small investors are restricted to 245 and many missed out altogether through no fault Gold Coast Convention Centre of their own? Mr REEVES: I ask the Minister for State Mr HAMILL: In response to he who Development and Minister for Trade: can he purports to be the shadow Treasurer, I make tell the House of the employment implications the following comments. No, I cannot confirm of the construction of the convention centre on those figures that the member for Moggill has the Gold Coast? rolled out this morning, because I suggest to Mr ELDER: What a happy day it must be him that they are probably incorrect. Secondly, for those opposite—The member for Surfers as we indicated from the outset, the offerings Paradise, the member for Merrimac, the that were made to retail investors gave member for Nerang and the member for preference to Queensland investors and that Southport—because a new convention centre indeed occurred. In relation to institutional is on the way. Who delivered it? This investors, I am not aware of the detailed list of Government delivered it. They failed; we institutional investors. There were quite a delivered. 30 Nov 1999 Questions Without Notice 5541

The only thing that those opposite ever the Gold Coast. Those opposite failed. We did in terms of the convention centre—I will tell delivered. those opposite their record, because I have it—was nothing. Those opposite had a report done and they then gave it to the member for Local Government Water Charges Nerang. That is probably why nothing Mr PAFF: My question is to the Minister happened. He wanted it in his electorate and for Communication and Information and the rest of them, of course, wanted it in their Minister for Local Government, Planning, own electorates. They all jacked up. What Regional and Rural Communities. As a happened was that giving it to the member for consequence of the recent Supreme Court Nerang gave it the deep six. It went nowhere decision that invalidated the two part water and it has been nowhere since the day he charges by local government and invalidated looked at that report. Make no mistake: this will the previous Government's National be a big project for the Gold Coast and it will Competition Policy, how will the Minister be a big boost for the traditional tourism address the serious problem facing local industry on the Gold Coast. In direct terms, it is authorities? How will he address the court's likely to employ around 1,800 people in decision facing local authorities with construction and up to 300 people when it is reimbursements of approximately $1 billion of up and running. This is a big job generator for water rates and charges? the Gold Coast. The indirect stimulus is immeasurable. Occupancy rates in hotels will Mr MACKENROTH: The first part of the go up. It will also assist the service industries. question is in fact wrong because I do not believe that the decision of the court Mr Beattie: Money for the economy. invalidated the legislation nor the National Mr ELDER: It will be money for the Competition Policy. The court decision found economy. All those small businesses will that the Logan City Council did not apply the benefit from what will be a significant economic two part tariff policy under Chapter 10 of the opportunity for the Gold Coast. It also provides Local Government Act correctly. So the a natural boundary for the Surfers honourable member's proposition is wrong. At Paradise/Broadbeach precinct. It integrates all this stage I am obtaining legal advice in the Broadbeach infrastructure and in fact the relation to the court decision to see whether broader Gold Coast tourism infrastructure—the the decision of the court affects any of the hotels, the bars and Pacific Fair. This is a great other 16 councils that have applied this policy. day for the Gold Coast and a great day for the Once I receive that information, I will then small businesses, the tourism operators and make a decision as to how I believe we should the hotel operators on the Gold Coast. By any go about it and take that decision to Cabinet. standard, this is a huge boost for Surfers The situation as I understand at this stage Paradise, Broadbeach and the southern Gold is that the Logan City Council still has the Coast. opportunity to lodge an appeal in the court. Mr Beattie: A great day for Merri Rose. Having done that and until that appeal is Mr ELDER: It is also a great day for that heard, I do not believe that any council in member who has been part of the Queensland would be in danger of having to Government decision that has delivered a pay back any money. There is a period of time project to the Gold Coast when the member in which we can consider this issue, but I can for Surfers Paradise, the now very temporary tell the Logan City Council that I will give them Leader of the Opposition, could not. He had a far more consideration than they have given chance. He could not deliver it. He failed. It us. has again been up to this Labor Government to deliver outcomes for the Gold Coast. There has been nothing accidental about it. We have Additional Domestic Airlines delivered time and time again for the Gold Dr CLARK: My question is directed to the Coast. That effort has been recognised by the Minister for Tourism, Sport and Racing. I refer council and by the business community. They to the announcement that Virgin Airlines plans have been highly complimentary of this to launch a no-frills domestic airline in Government in terms of delivering for the Gold Australia. Can the Minister advise the House Coast. They have been miserably whether the Beattie Government is negotiating disappointed in the Opposition, particularly with another major UK airline to establish a when they were in Government. Minister after new Queensland-based holiday airline that will Minister after Minister and the Premier could offer highly competitive fares to our State's not deliver one large infrastructure project for tourism destinations? 5542 Questions Without Notice 30 Nov 1999

Mr GIBBS: The honourable member asks together and say, "It's simply not on. It's not a very important question this morning. Yes, I acceptable." The reality is that this country is can confirm that we have been in negotiation deprived of good air services in terms of with a major airline currently based in the UK in competitive airfares, and this is a way to go relation to providing the same sort of service to about rectifying it. Queensland that Virgin Airlines announced a couple of days ago. Honourable members would be aware that this Government went to Tree-clearing Permits the last State election with a policy that we Mr SPRINGBORG: My question is to the would not only investigate but also become as Honourable Minister for the Environment and involved as much as we possibly could in Heritage and Minister for Natural Resources. I encouraging a third airline into Queensland refer to the Premier's comments in Saturday's and Australia to ensure that we were Courier-Mail where he said— competitive in terms of domestic airline fares. "Mr Beattie said no resolution would There has been a perception in the be possible without a Commonwealth tourism industry for many years that we are commitment to compensate owners of disadvantaged in this country, particularly in more than 1.5 million hectares who relation to the leisure market, for the travelling already held tree clearing permits." public who wish to utilise air services at holiday This is in relation to the Government's times but find it cost prohibitive. With that in prohibition on tree clearing. A commitment mind, the major reason I recently visited the along these lines was also reaffirmed in UK was for discussions with a particular airline. today's Courier-Mail as well. Given these I am pleased to say that Tourism Queensland extraordinary comments from the Premier, and the airline have completed a joint when will the Government start this feasibility study and business plan to assess unprecedented process of revoking pre- the possibility of commencing operations here existing tree-clearing permits from as a schedule charter leisure carrier. The study leaseholders? What compensation will be itself has been highly positive and the paid? business plan has recently been endorsed by the airline's board as a result of those recent Mr WELFORD: Our Government has discussions in London. been engaging in very extensive consultations with rural industry leaders and other I am obviously not in a position today to stakeholders in this issue. This was something identify the airline for reasons that are started by the previous Government. Like so commercial in confidence, but I want to many other major issues which they had a expand a little on the question that the Leader responsibility to address, they squibbed it. of the Opposition asked of the Transport They never got around to addressing it, Minister this morning in relation to regional air notwithstanding the fact that, as part of the services being affected by a decision of this NHT partnership agreement entered into by Mr nature. The simple reality is that, whether Borbidge and the Federal Government, they those opposite are in Government or we are in had a responsibility to address the scale of Government, once negotiations of this nature vegetation clearing in Queensland to protect are opened it is always predictable that there rural land in Queensland and to protect the can be a reaction against regional air services State's biodiversity. by Qantas and Ansett. I would hope that that Our Government proposes to work would not be the case. What we are through the issues closely with all essentially talking about here is an airline to stakeholders. We have been doing that over service the leisure industry, which is a growing the last few weeks. What the Premier says is industry, which does not attack the traditional absolutely right: if the Federal Government is market held by Qantas and Ansett—that is, serious about addressing biodiversity in primarily the business traveller. We are Queensland, the last State in which substantial interested in looking at the leisure market to biodiversity in vegetation remains, then it get more tourists into Queensland. should make a commitment of $100m to I would hope that there would be a support our Government in providing bipartisan attitude adopted in this Parliament assistance to rural producers to make the regardless of who is on this side of the House adjustments that are necessary to bring about that, if either major airline in this country that outcome. If the Federal Government is started with the shenanigans of threatening serious about addressing the greenhouse regional air services in Queensland as a implications of Queensland vegetation retaliatory measure, the full force of the parties clearing, accounting for 80% of all vegetation here and the parties in Canberra would come clearing in Australia and up to 18% of 30 Nov 1999 Questions Without Notice 5543

Australia's greenhouse impacts, then it should station. Naturally there is equipment in place to commit $100m, partly out of the $400m of handle the possibility of oil spills. It would be greenhouse funds it has available to it, to irresponsible of the power station operators to address that issue and achieve that outcome. not take these precautions. Dr Watson may Our State Government, unlike the have had something to complain about if previous one, is taking responsibility for this these safeguards were not there, but he issue. We are not avoiding our responsibility, chooses to knock them simply because they but we are not going to carry that burden are there. alone. It is a shared responsibility of the I would like to make this perfectly clear to Federal and State Governments. The Premier Dr Watson and to the Opposition. They have and this Government stand solid behind the spent the past two weeks opposing gas-fired rural producers of Queensland in expecting the power stations. Their colleague Senator Hill Federal Government to fulfil its commitment to has spent the past couple of weeks opposing support that transition and protect rural coal-fired power stations. Now, to finish the producers. trifecta, those opposite have decided that a Rural producers are entitled to the respect hydro station, which was a coalition and support they are receiving from our Government project, is no good either. Government to achieve this outcome which all The facts are there. There has never stakeholders have agreed needs to been an oil spill from the hydro installation into occur—that is, better management of Lake Wivenhoe. Dr Watson refers to three vegetation across the landscape. They agree incidents at Wivenhoe. None of them involved with that outcome. It is a question of providing any oil spills into the lake. Tarong Energy tells support for that outcome to be achieved. We me that these accidents were recorded as part will get that support from the Federal of a very firm commitment to environmental Government if the Opposition joins us in management. They have recorded even the making that call on the Federal Government to most minor event as part of their overall achieve that outcome. I challenge the commitment. What is more, two of these Opposition to put its support behind its incidents happened during the coalition years complaints and support our Government in in Government. Of course, we heard nothing getting $100m from the Federal Government from Dr Watson at that time. to assist rural producers to achieve a This comes down to Dr Watson's political sustainable outcome. games. Proposals for a gas-fired power station as part of a billion dollar scheme will greatly Wivenhoe Dam, Pollution assist the environmental balance of power stations in this State. I keep on saying to Dr Mr ROBERTS: I ask the Minister for Mines Watson that he is terribly wrong. and Energy: has the hydroelectric station at Wivenhoe Dam polluted the waters with oil, as alleged by the Leader of the Liberal Party last Flood Boats week? Mr MALONE: I refer the Minister for Mr McGRADY: I thank the honourable Emergency Services to an answer given in member for the question. The hydroelectric Parliament last week in relation to the Collins installation at Lake Wivenhoe is one of the class flood boats not meeting positive flotation great success stories of this State. It has been requirements for registration and her operating continuously since 1984. I am happy subsequent statement to the media that any to acknowledge that it was an excellent boat not up to standard would not be allowed concept. It was built during the coalition years to respond to an incident, and I ask: given that in Government. I am happy to give credit there are 45 rescue boats that do not meet where credit is due. However, it surprises me to the survey safety standards for flotation and hear Dr Watson rubbishing this installation and that the annual flood season is almost upon painting it as an environmental disaster simply us, can the Minister indicate which areas in this waiting to happen. State will not be covered by SES flood rescue Dr Watson has been suggesting that boat operations and can she provide an there have been oil spills into Lake Wivenhoe. estimate of the number of Queensland He is terribly wrong. The simple facts given to residents who will be exposed to this added me by Tarong Energy show clearly that there risk? has never been any oil contamination of Mrs ROSE: I thank the member for the Wivenhoe Dam from the hydro power station. question. Standing offer arrangements are Oil contamination is an environmental now in place for the provision of flood rescue management issue for the hydro power boats and the supply and fitting of outboard 5544 Questions Without Notice 30 Nov 1999 motors. Of the $1.5m provided for the flood announce that the Queensland Building boat replacement program, $250,000 was Services Authority has made good use of its expended or committed in 1998-99, $500,000 powers in preventing so-called phoenix has been provided for 1999-2000, $500,000 building companies. Phoenix companies are has been provided for 2000-01 and $250,000 those which, like the bird in ancient mythology, has been provided for 2001-02. rise from the ashes after ruination. The flood boat compliance program, Unfortunately, there is nothing mythical about which is what the member refers to, revealed these building companies. The original that there were a total of 46 flood boats phoenix reinvented itself every 500 years or currently in use that did not comply with the so, but these phoenix companies are more Transport Operations (Marine Safety) likely to reinvent themselves only months after Regulation 1995. Due to this situation, priority the builders' original demise. For instance, a has been given during the current financial director of a failed building company might be year to replacing all non-compliant boats. found pulling the strings behind the scenes of that building company while having the It should be noted that on 14 October company registered in friends' or family 1999 Queensland Transport granted the non- members' names. compliant SES flood boats an exemption from marine regulations up until 1 August 2000. Obviously, these companies have had the This exemption allows for the continued use of potential to cause a lot of damage to these boats for operational and training Queensland's consumers, subcontractors and purposes. suppliers in the past. So when we were framing new building services legislation, both Of the 46 non-compliant boats, 11 boats Government and industry felt that it was very can be upgraded, leaving a total of 35 to be important to pre-empt phoenix businesses. replaced. The current status of the program is The anti-phoenix provisions of the new that 11 boats have already been replaced, 16 legislation came into effect on 1 October this boats are currently on order and it is hoped year. Individuals, directors, secretaries and that a further eight will be ordered in the near anyone else involved in a failed company, that future. The 11 boats already supplied have is, a company that has had to action gone to Condamine, Normanton, Babinda, bankruptcy proceedings, is prohibited from Morven, Tiaro, Nebo, Hinchinbrook, Eidsvold, entering the industry for five years. They are Pittsworth, Kilcoy and Imbil. labelled as excluded individuals or excluded Orders for six 4.6-metre v-hulls for St companies and will retain that status for five George, Ayr, Augathella, Tully, South Kolan years after a bankruptcy event. In future, and Brisbane southern group have been companies must not have an excluded placed and are expected to be delivered in the individual working or being associated with that first week of December. Six 5.3-metre flat- company. bottomed work punts have been ordered for Less than eight weeks into the new law, Rockhampton, Lowood, Chinchilla, Weipa, the BSA has now given notice to two industry Surat and Dalby. Expected delivery is operators that they are excluded individuals. approximately the same. One 5.3-metre They face a five-year ban unless they can Yamba flat-bottomed work punt has been satisfy the BSA. The latest is a director of ordered for Winton and three 6-metre work Marbret Pty Ltd. This company has been punts have been ordered for Birdsville, active in commercial construction on the Gold Karumba and Bedourie. Indications are that Coast, but this month was placed in they should be delivered during the first couple administration and stripped of its licence by the of weeks of December. I am more than happy BSA. Marbret owes creditors about $1.3m and to provide the locations for the outstanding is itself owed $1.1m by a developer. ones. The other builder which is liable to feel the anti-phoenix sting is a director of Aramah Queensland Building Services Authority Homes, a company in which the member for Ipswich West has taken some interest. The Mrs ATTWOOD: Could the Minister for liquidators moved in on Aramah on 3 Fair Trading advise the House as to whether November, about a month after it was placed the Queensland Building Services Authority in administration. In the two years before that has made use of the anti-phoenix company company's collapse, the liquidator has provisions in the newly amended QBSA Act? reported that Aramah directors drew an Ms SPENCE: The member for Mount estimated $750,000 from that company. An Ommaney has shown a genuine interest in the Aramah director has been threatened with a Queensland building industry. I am pleased to five-year ban from the industry. 30 Nov 1999 Questions Without Notice 5545

Tallebudgera Recreation Camp commence down there at some time in the Mrs GAMIN: I refer the Minister for future. As the Minister responsible, I will Tourism, Sport and Racing to his assurance in continue to do my best before the Budget this House that the Tallebudgera Recreation Review Committee to get funding for that area. Camp would not be sold and his statement As I said, it is an icon. that the camp deserves money being spent on I am aware that Governments, including it, and I ask: can the Minister confirm that, last the former coalition Government, have been financial year, his department had identified approached on a number of occasions by $7m as its contribution towards the upgrade of people in the private sector who want to buy the Tallebudgera Recreation Camp and asked that land and develop it themselves. That is Treasury to contribute another $7m? Can the something that we simply will not allow to take Minister also confirm that Treasury not only place. That is an assurance that I give the knocked back his application for additional member again today. And immediately my funding but also took the department's $7m department is in a position to do so, money will from its budget? I ask the Minister: will he seek be put in there for the redevelopment to take to have Treasury's blatant grab of place as quickly as possible. departmental funds overturned and ensure that these funds are rightly used to upgrade the Tallebudgera Recreation Camp, which is a Meat Exports project that he supports so strongly? Mr MULHERIN: I ask the Minister for Mr GIBBS: I thought that that was Primary Industries: can he outline what action actually an extract from Blue Hills. However, I the Government has taken to promote the will answer the question in the best way I can. international trade of Queensland meat The reality is that I have given the member an processed in abattoirs which have only undertaking, as I have to this Parliament, that domestic accreditation and which previously there is no intention by the Government to sell could not tap into overseas markets? the Tallebudgera Recreation Camp. The reality Mr PALASZCZUK: As the Minister for is that it is an icon throughout Queensland in Primary Industries, I am committed to terms of recreation centres. In fact, if we advancing Queensland's food and fibre to the undertook studies throughout the State, we world. Soon after the election of this would find that many of those people who Government, I was alerted to the possible tend to be in the 60 or above age bracket export eligibility of Queensland meat actually honeymooned at Tallebudgera. processed in domestically accredited abattoirs Mr Johnson interjected. to certain overseas markets. Mr GIBBS: I never honeymooned there, In December last year, the Queensland but I can remember, as a young man in the Livestock and Meat Authority announced that surf club, going up there a few times. I can it would issue health certification for product remember distinctly seeing the member eligible for export to New Zealand from haunting the beach close by. I must say that, domestically accredited works which complied in those days at least, the member did look with relevant Australian meat processing reasonably good in a pair of Speedos, but we standards. The QLMA advised that this move would never get him into a pair of them today. was in line with the Trans-Tasman Mutual The Government is undertaking a full Recognition Agreement enacted by Australia review of recreation camps throughout and New Zealand. The QLMA also advised Queensland. I believe that members should that it intended to examine the possibility of have some concern about some of them and extending these arrangements to other the condition they are in. In fact, one in countries. particular in this State has an occupancy rate This move had enormous benefits for our each year of about 5%, which means that, pig industry, which for some time had only one overall, we are subsidising that particular export-accredited abattoir, and that was at recreation camp, which is serving very little Cannon Hill here in Brisbane. In less than 12 purpose, to the detriment of other recreation months under this arrangement, more than centres throughout Queensland where the 260,000 kilograms of high-value Queensland Government could be spending money. smallgoods have been exported, principally to There is a commitment that, ultimately, New Zealand, with some product being sent to the Tallebudgera Recreation Camp will be the Solomon Islands. Our success, coupled upgraded. I think we started that and sent a with the State Government's support for the very clear signal last year when the Playroom wider pork industry, including its more than was demolished to make way for works that will $1.8m support for the Darling Downs Bacon 5546 Questions Without Notice 30 Nov 1999 expansion, sparked calls from New Zealand to State to know that it was Rosemount ban Queensland pork earlier this year. chardonnay, which is my favourite, so I can announce to the House today that a obviously she had done her homework. similar arrangement for domestically accredited A Government member: You mean it abattoirs will now operate for Queensland wasn't a local product? meat and meat products into East Timor. I am Mr Foley: You chardonnay socialist, you! advised that Queensland meat and meat products eligible for export are beef, veal, Mr McGRADY: Honourable members can lamb, mutton, goat meat, pork, venison and refer to me as the chardonnay socialist from poultry. Again, the QLMA will be responsible now on. for the health certification for exported Mr Borbidge interjected. domestic product. Mr McGRADY: I will not repeat the As is the case with the trade to New comment that was made after the Leader of Zealand, meat intended to be exported to the Opposition said to make sure that she did East Timor must be produced in accordance not spike it. with prescribed Australian standards and have an easily identifiable trace-back system. It will Coming back to serious matters—as the then be the responsibility of the prospective Premier said, we have plans for one 450 coal- exporter to identify the clients for such product. fired extension to the Tarong Power Station Our country is working hard to assist the and two 350 units of gas. There has been people of East Timor to rebuild their some discussion as to the exact location of the homeland. I am pleased to announce that our gas units. As I have said in this place on many Queensland meat industry may also have the previous occasions, environmental studies will opportunity to play a part in this effort. be undertaken. If there is the slightest threat to Brisbane's water supply the project will not go ahead. I have made that perfectly clear. Tarong Power Station As to when the gas-fired project will start, Mrs PRATT: I direct a question to the my understanding from the officers at Tarong Minister for Mines and Energy. With reference was that it would actually start before to the Tarong coal power extension and the Christmas. Coming back to the main gist of the gas units at Wivenhoe, and the Premier's question— statement that the gas units will not be sited at Mr Elder: Coal. Wivenhoe if there is any threat to the Brisbane water supply, I ask the Minister: what Mr McGRADY: Coal, sorry—when the alternative sites have been given priority? With coal would start. Coming back to the main the existence of a water pipeline—currently question: obviously, if there are some unused—carrying water from Wivenhoe to concerns about the water supply, we would Tarong, would this not solve the anxiety look at some other site. However, at this point displayed concerning Wivenhoe by combining in time it will certainly be in the South Burnett, all units at Tarong? As Tarong already has and that is where I believe it will happen. permits for two coal and one gas unit, is This Government is expending $1 billion consideration being given to having these in the electorate of the member for Barambah. permits altered to two gas and one coal to There was jubilation in the community when accommodate both the coal and gas we had the Community Cabinet meeting in extensions? And will the coal extension be Kingaroy. The Beattie Government will not let started before Christmas, as was stated during down the people of the South Burnett. the media conference at Kingaroy? Mr SPEAKER: Order! Before calling the Minister, could I say to the group of Government-funded Housing Independents at the back of the Chamber that Mrs NITA CUNNINGHAM: My question is questions are becoming a bit long. I would ask directed to the Minister for Public Works and that questions be more precise. Minister for Housing. I refer to the State Mr McGRADY: The question was a bit Government's housing programs, and ask: can long, but I will do my best to answer it in the the Minister outline recent initiatives taken to order of the points raised. First of all, the expand the availability of Government-funded member for Barambah appreciated the work housing in the State, especially in rural and that the Government undertook. In fact, she regional areas? supplied me with a bottle of wine to thank me Mr SCHWARTEN: This Government has for the work that we did. Being an honest recently been involved with bringing a number member—which I am—I want the whole of the of projects to completion. We were just 30 Nov 1999 Questions Without Notice 5547 speaking about Kingaroy. At the Community throughout Queensland. I have here the Triple Cabinet meeting in Kingaroy, the member for H award for him. I am more than happy to Barambah joined the Premier and me in present him with the certificate for the Howard opening the $694,000 units which had been Hobbs hypocrisy award. Three weeks ago he constructed in the area. Although I did not was saying that it was a project which he would receive a bottle of wine—Chateau Kingaroy—I not support. did receive a great quote from the honourable Time expired. member. She said that the project rose like the phoenix from the ashes. That was a tribute to everyone who worked on the project. Caloundra Hospital Operating Theatre Another project which rose like the Mrs SHELDON: My question is directed to phoenix from the ashes was one which was the Minister for Health. As the operating built in your own electorate, Mr Speaker, in theatre at the Caloundra Hospital is to close at Margate. I was thinking of naming it "Phoenix" Christmas for 10 months in order to allow for until you came along with a better one, the hospital upgrade, I ask: will she guarantee namely, the Arthur Mason units. This was a that the theatre will close for only 10 months; tribute to a local singer who has made an guarantee that all existing surgery sessions will enormous contribution to the community. This be reinstated; guarantee that, with the action highlighted the importance of local upgrade, further surgery sessions will be made people remaining in local communities. I available to accommodate the growing need; congratulate you, Mr Speaker, on that and pay transportation costs for the many wonderful opening ceremony. I have received elderly patients and pensioners who over this some good feedback. This project will provide period will have to travel to Nambour for quality accommodation for at least 16 couples. surgery? The Laura Johnson home also rose like Mrs EDMOND: I find it amazing that here the phoenix from the ashes. The honourable we have one member who does not seem to member for Mount Isa was behind that project. want her hospital upgraded. That is The Government contributed $1.4m and the disappointing, because the people of council and the local community contributed Caloundra and the Sunshine Coast want the $100,000. I opened that project a couple of upgrade. They are very confident that the weeks ago. It was a very big event in the area. Government will provide the services for which they have waited so long. Mr McGrady: You got some mangoes. We all know that the member for Mr SCHWARTEN: I got some very nice Caloundra took money from the Nambour mangoes out of that, yes, from the honourable upgrade budget and put it into the Caloundra member's tree. I can tell the honourable Hospital. The member for Nicklin knows very member that the mangoes disappeared like well that the member for Caloundra siphoned the phoenix. off some $4.5m to put into her electorate. She Such projects as this have the support of was not content with all the funds that went honourable members on this side of the from every other portfolio into her electorate Chamber. It is pleasing to see that members while she was Treasurer. Pity help the poor opposite support the projects as well. For people of Queensland who did not live in example, this weekend the member for Caloundra! The member for Caloundra, Warrego, Mr Hobbs, on my behalf will open a however, could not make it happen because set of units at Dirranbandi. It is pleasing to see for the first six months we had the absolute Mr Hobbs embracing, as he always does, freeze on capital works in Health. That action public housing in his electorate. saw every project in the State go backwards. However, there is a bit of a dark side to all This Government is up to scratch. We are this. The Government had to contribute an getting on with the job. Last year, the extra $30,000 to the project. One would never Government— call that a phoenix project, because it has Miss SIMPSON: I rise to a point of order. taken three years to build. This highlights the The Health Minister is misleading the House. problem that one has with such projects. She took these programs out of the first The reality is that the project was budget and delayed them by 12 months. welcomed by Mr Hobbs, who said, among There was no capital works freeze under us. other things, that it was great to see that it was Mrs EDMOND: Last year, the capital air-conditioned. He agrees with that now, but in works program spent not only everything it was September he was saying that we did not want meant to spend, but it was actually ahead of airconditioning in public housing units time. We will be doing everything we can to 5548 Matters of Public Interest 30 Nov 1999 get the Caloundra Hospital finished ahead of land in Queensland. However, the facts time. indicate otherwise. Mrs SHELDON: I rise to a point of order. Honourable members may not realise it, There has been $14.8m in the budget for the but there is more standing woodland in last three years for the Caloundra Hospital and Queensland today than there was at the time it is still unspent. of white settlement. History tells us that, when Captain Cook sailed the east coast, the first Emergency Service Workers; WorkCover things he saw were fires. In that era, the Aborigines used to burn off areas. Also, Mr PEARCE: My question is directed to lightning would start fires in woodlands and the Minister for Emergency Services. I draw grasslands. The whole countryside was vastly the Minister's attention to the thousands of different. For example, Grassy Hill at Cooktown Rural Fire Division volunteers, State is now covered in woody vegetation. If we go Emergency Service volunteers, auxiliary to Cape York and most other parts of firefighters, honorary ambulance officers and Queensland, we find a thickening of other Emergency Services personnel and their vegetation. When the stage coaches used to need to often respond to an emergency during run in western Queensland, they took hessian their hours of work. I ask: are these men and screens for privacy when people needed to go women covered for compensation for injury or to the toilet. Today there is so much timber death incurred while travelling to an along those roadways that a dog can't bark. Emergency Services centre or incident from That example serves to illustrate that the their place of work and while returning to their vegetation is thickening. place of work on completion of their duties? The carrying capacity of rural land is also Mrs ROSE: The short answer is yes. I being affected. In the past, whereas a certain thank the member for his question; I know he number of sheep or cattle were on a run, the is a great supporter of the Emergency thickening of vegetation means that there is Services. I am happy to inform the member now less grass and, therefore, they no longer that paid and volunteer emergency workers have the same capacity. who perform approved duties for the Department of Emergency Services are Dr Bill Burrows has documented this covered by WorkCover policies or contracts of change in a scientific assessment. Anybody insurance with WorkCover Queensland. who wishes to look at it can do so. The Statutory benefits include journey claim cover Minister's figures indicated that from 1995 to which commences when the paid worker or 1997 some 340,000 hectares per year, or an volunteer leaves his or her residential property 18% increase, was cleared, 40% of which was boundary or the property boundary of their on leasehold land and 57% of which was on place of non-Emergency Services employment freehold land. Interestingly, for 1991 to 1995 to travel to where they are required for the figure was 289,000 hectares, of which 53% Emergency Services-related duties. The cover was leasehold land and of which 44% was continues until they return to their place of freehold land. However, the figures given to residence or the property boundary of their me when I was the Minister indicated that place of non-Emergency Services related between 60% and 70% of regrowth was employment. Similarly, they are covered by included in that overall calculation. How has statutory benefits when they start on the the figure suddenly gone down to 18%? One journey if they respond to a call-out received imagines that some sort of calculation has while away from home or work. If they live on been made in relation to the long-term permits large rural properties, the residential property that have been issued. However, not enough boundary is the boundary of the house yard, time has elapsed for those to have any real not the property boundary. effect. This suggests that there is something Mr SPEAKER: Order! The time for wrong with the Minister's figures. questions has expired. Also, each year in excess of 40% of all clearing reverts to regrowth. I will cite some of MATTERS OF PUBLIC INTEREST the figures for this year. Of the 340,000 hectares of land cleared each year, 40% Tree Clearing reverts to regrowth, which gives us 136,000 Mr HOBBS (Warrego—NPA) (11.30 a.m.): hectares. That leaves 204,000 hectares. If Recently, much has been said about tree 65% of that is regrowth, that leaves 61,400 clearing in Queensland. The perception given hectares of cleared land. If we take into by this Government and conservationists is consideration the 72 million hectares of that irresponsible farmers are wrecking public woodland in Queensland, that represents 30 Nov 1999 Matters of Public Interest 5549

0.0008 of a per cent of the area. We are not needed. There needs to be a mixture. I have talking about a lot of land in this instance. used a dozer to smooth out a wash-out. Once Research has identified that the grass takes hold, it will bind the soil and Queensland's grazing industry is also a net water will not erode it. sink for greenhouse gas carbon dioxide and It is important to state that land-holders not a net source, as has been promoted by are responsible. This has been the case for many. Research also indicates that the the past 10 years in particular, since Landcare thickened Queensland vegetation absorbs has been operating and property plans have approximately 140 million tonnes of carbon been put together. The modern farmer knows dioxide each year—more than double the a lot about sustainable management. Labor volume being emitted by the land use and has an agenda to stop all vegetation forestry sectors. Therefore, the previous management in Queensland. Its media national greenhouse gas inventory figure campaign on tree clearing, salinity and which attributes land use and forest industries endangered species is total misinformation. as contributing 24% of the total national Outrage was expressed by the Minister about carbon dioxide emission is absolutely incorrect. the permits that have been issued. Those Today the Minister quoted some figures. permits were sustainable permits issued by his He stated that land clearing in Queensland own department. Not one endangered tree contributes to about 18% of Australia's would have been lost under that process. Any greenhouse impacts. In reality, that figure is trees of concern or vulnerable species are not correct. Also, the Kyoto talks found that taken into consideration. The permits were emissions by land clearing had by 1995 issued under very strict guidelines. There is no already fallen to 78,000 megatons. Thus sense in suddenly becoming upset by the Australia could increase emissions from land number of permits that have been issued. clearing and still meet the Kyoto targets. That Today, when asked whether he was going is the situation. to revoke those permits, the Minister did not Also, more research needs to be carried answer the question. Therefore, it is clear that out on crops—for instance, cane and the Government is going to revoke those cotton—and various grasses to determine their permits. How low can they go? He also capability as carbon sinks. After all, cotton is a expressed outrage about the areas of trees woody weed. Those are issues that we need cleared. There has never been a qualification to assess. Through thickening, trees also by the Minister in relation to regrowth. As I said cause land degradation. People do not often before, he cites a figure of 18%. Under our realise that. They think that the more trees we Government, the figure was 65% of the have the better off we are. That is not the calculations. Something has gone wrong. The case. In many instances, where we have more figures are not right. We need some trees we have less grass, because there is not explanation of them. We should be able to enough moisture for it to grow. That produces compare them with the briefing notes that I more run-off. At the end of the dry season, the had when I was the Minister. rain comes down and the topsoil is washed I turn to the issue of salinity. The Minister away. That is basically because there are too said, "Shock, horror. There is a report about many trees. In my region of Warrego there is salinity in the Nindigully region—7,000 now double the number of trees that there hectares which has not been found before." were previously. However, in truth it was only 2,000 hectares—an ancient lake that has been there Mr Lucas: You've got to be cruel to be since time began. Everyone has known about kind, have you, when you're knocking down it. The local farmer knew about it and trees? conducted a Landcare operation there. Seven Mr HOBBS: Sometimes you have to be. years ago, while monitoring it the way any Out in those areas they do a lot of clearing in good, responsible farmer would do, he applied the mulga country and the natural grasses and for NHT funding and received money to put vegetation come back. They have to manage down some bores. They were monitoring the it to make sure that they do not get too many water, because they were also farming on trees. It is a real problem. People must some of the land. After three applications for understand that situation. People also think NHT funding—and the first two times they were that we must have trees to stop erosion. That knocked back because it was not classified as is not the case. Buffel grass and binding-type significant—they were given some money. grasses are more effective in binding the soil That is the way misinformation is being together to stop the erosion of creeks and peddled out there. The salinity audit states gullies. On major river systems trees are also that this information is yet to be independently 5550 Matters of Public Interest 30 Nov 1999 reviewed and it should be considered earlier speech, which somehow found its way preliminary in nature and that it is not expected onto the Internet, I have received an that dry land salinity in Queensland will enormous and unexpected response from dominate the landscape within the next 100 people who are recognised as sufferers of CFS years, as observed in southern and Western and who have been dealt with in the same Australia. In respect of those regions, it is way as my constituent. being stated that salinity may occur through I wish now to move on and deal with tree clearing. However, we now have double several matters of which I have become aware the number of trees in that catchment than at as a result of personal interviews, letters and the time of white settlement. What they are telephone calls I have received from CFS saying is illogical. sufferers in Queensland and New South Mr Lucas: What's your basis for saying Wales. A database has been activated and that? much of what I will speak about today has Mr HOBBS: The number of trees has come from surveys, supporting documentation doubled. The country is thickening because and personal interviews with men and women there are no fires to burn the suckers and they diagnosed as CFS sufferers. If time permits I keep growing. That is the reason. We will be talking about collusion between the recognise that salinity is an important issue insurance industry doctors and the consumer and that we should plan accordingly. However, watchdog, as well as about approaches made this Government should not impose to me by CFS sufferers for the support of unreasonable standards. The most damaging voluntary euthanasia. Let me start with the event to Queensland was the introduction of latter. rabbits. It may come as a shock to hear that a Time expired. number of CFS sufferers have put it to me that, for them, voluntary euthanasia would be the best option. Why, members may ask, Chronic Fatigue Syndrome would they consider such an option? Because Mr PEARCE (Fitzroy—ALP) (11.40 a.m.): CFS sufferers are victims! They are the victims Today I wish to revisit an issue that I raised in of a society that sees them as lazy layabouts. this place on 17 August. I spoke about the A recent example was the very public difficulties confronting a marginalised group of promotion of Hamilton Island as a place to lay chronically impaired persons within our about by using the words "chronic fatigue community whose needs are being ignored syndrome". CFS sufferers are the victims of and who are constantly being attacked by unethical and illegal activities by insurance insurance companies. These same insurance companies that are not accountable to anyone companies are using every weapon in their for their actions. CFS sufferers are the victims dirty tricks arsenal to stall payments on claims of possible collusion between the insurance for total and permanent disablement for industry and the Life Insurance Complaints sufferers of myalgic encephalitis—ME—or Board, now known as the Financial Industry chronic fatigue syndrome—CFS. I highlighted Complaints Service. They are the victims of the obvious and proven intent of private doctors "for sale", that is, doctors who will write insurers to vigorously protect a "no precedent" reports that insurance companies want. policy of not awarding TPD payouts for CFS claims. I talked about insurance companies They are the victims of insurance not being accountable for their actions, about companies that deny valid claims and then claimants having no rights, and I highlighted prolong and protract the process in the hope the impact of the bad faith behaviour of the that the claimants will drop out—even commit insurance industry. suicide. This is despite the sufferer having reports from numerous doctors and specialists Parliament heard how one insurance confirming their CFS diagnosis. I am aware of company—National Mutual, now trading as one CFS sufferer who has had her illness AXA Australia—has treated a constituent of diagnosed and supported by one professor of mine and how the company had put this rehabilitation and occupational medicine, two decent woman through an immoral, obscene physicians, two psychiatrists and three general and unjust process to victimise her. I have practitioners. She even had one of the information which identifies Hanover Life, insurance companies own examiners agree Australian Casualty and Life, Lumley Life, that she was a CFS sufferer, yet her claim is Royal and Sun Alliance, Tindal Life, Royal still being denied. Insurance, FAI Life and Colonial Mutual as all playing the same dirty game of killing off the As victims, they have no rights to access sick in preference to payouts. Following my reports supplied to the insurer by so-called 30 Nov 1999 Matters of Public Interest 5551 medical experts. As victims, they are required and left to die. CFS sufferers are put through to disclose everything about themselves. The so much pain and humiliation that they are victims are forced into financial hardship, forced to feel abandoned and unwanted, and despair, frustration and, finally, submission that is why there is overwhelming evidence of because of the deliberately extended and many of them committing suicide. Voluntary unsympathetic claim process. These victims euthanasia is therefore a more dignified are discriminated against on the basis of a option. The medical profession who fail to specific impairment, which is now recognised in recognise CFS underestimate the the questionnaire of insurance companies corresponding suicide risk, but the list of requiring the medical history of a person to be victims grows. insured. They are victims of an insurance Doctors nominated by insurers are industry culture that will use the lowest of selected and portrayed as independent, but gutter tactics to protect a "no precedent" when we start looking at the collected data the agenda. They are the new lepers of our real picture begins to emerge. I want to talk society. about one particular doctor who has been CFS sufferers do not want to be sick, cut used on a regular basis by insurance off from the world or unable to sustain a loving companies in assessing CFS claims. This relationship, go shopping, go to a movie or go doctor, whom I will not name here today, holds to the beach. Why would a person suitably a very powerful position as an examining qualified and capable of earning in excess of doctor. He has an alleged history of poor $100,000 a year spend their time fighting an behaviour when examining insurance insurance company for a $30,000 payout for a claimants. He uses his power to humiliate permanent disability? Before becoming ill, women in particular by forcing them to obey many CFS sufferers were highly paid his instructions as part of his examination. He professionals. On top of this, CFS sufferers seems to get a thrill out of women dressed know that, owing to the lack of funding for only in their nickers tiptoeing around so that he genuine medical research, there is no known can check their posture and balance. cause, diagnostic test, treatment or cure for their condition. There is no respect for them or I have been made aware of one alleged their illness. The lack of Medicare funding for sickening incident, which is too disgusting to testing and treatment and the high cost of go into detail about in this place. Even if it specialist services mean that many CFS were only half true, then we have a leading sufferers are left to beg, borrow and sell up to doctor in a major Brisbane hospital who is a cover the cost of care and services. dirty, perving old man. He is a problem. He is biased against CFS and should be The unwillingness of superannuation immediately taken off the insurers' preferred funds, workers compensation and disability list of so-called independent medical insurers to compensate CFS sufferers means examiners. My understanding is that they often do not have the resources to afford complaints have been lodged with the specialised care. This, of course, only Queensland Medical Board. exacerbates their feelings of hopelessness. They then become victims of financial debt Insurance companies need to understand which, like a cancer, eats away at any savings that I am prepared to name this doctor and they may have from the forced sale of homes those companies that are allowing women to and other personal belongings. They lose be abused in the interests of protecting their confidence in themselves. The odds are immoral "no precedent" policy, of not stacked against them. accepting liability for claims made by CFS CFS sufferers are aware that the sufferers who, because of their illness, can no insurance industry is spending millions of longer work to provide for themselves. I intend dollars to protect its "no precedent" policy of to keep pursuing this bad faith behaviour of TPD claims for CFS sufferers. These are sick insurance companies. I will name the doctors people with a disease, fighting a system that regularly used by the insurers. I will name the smells of collusion, lies and abuse. It is no insurance companies and produce the victims. wonder that I have them requesting I give this word of warning to doctors who consideration to be given to the proposal that do not believe in CFS: the Federal they be allowed a choice of final solution. To Government has commissioned draft many CFS sufferers, voluntary euthanasia guidelines for the evaluation of prolonged CFS represents a more dignified and humane and the diagnosis and management of this option than the current process of torture, disease. The National Health and Medical deprivation and despair. They feel like an Research Council understands and recognises unwanted animal that has been abandoned that ME—CFS—is a serious and debilitating 5552 Matters of Public Interest 30 Nov 1999 condition that impacts on its sufferers and Community Care? Under the Briztram proposal causes considerable hardship for families and we had a real light rail network that serviced carers. The continual denial of independent the growing demand areas of the City of examiners that CFS exists raises the question Brisbane. What we have now is a half-cute, of professional negligence. half-smart proposal from a half-cute and half- This is one of the most sickening issues smart Premier. that I have had to deal with as a member of Let us consider the redevelopment of Parliament. I am just fed up and disgusted South Bank. It was all announced during the with the way that CFS sufferers have been period of the previous coalition Government treated. It is about time that people in the and detailed in the Budget documents. The profession and people in Government looked redevelopment of the Roma Street rail yards at the way that the insurance industry has goes back to Premier Goss. There have been been treating these people. In this place today variations on the theme, but even Mr Beattie's I again—as I did on 17 August—call for a full claim that it would be the lungs of the city was investigation into the way that the insurance not original; they were the exact words of his industry is dealing with the sufferers of CFS. Labor predecessor, the former member for Logan in this place. Airtrain Citylink from the airport into town—who signed it? Who State Government Performance negotiated the deal? Who announced the Hon. R. E. BORBIDGE (Surfers start of the project? Again, it was the previous Paradise—NPA) (Leader of the Opposition) coalition Government. This Government had (11.49 a.m.): As this Government stumbles nothing to do with it, except to install an towards the halfway mark of the life of this incompetent Minister for Transport who Parliament, we see increasingly that delayed the start of construction by over 12 Queensland is slipping back into a public months. administration mediocrity disguised by a Australia TradeCoast was first announced massive but empty public relations effort on as the Brisbane international trade the part of the Premier. What we have development zone by the previous National witnessed in recent days is an example of the Party Government in 1987. Nothing happened massive sensitivity of the can't do Premier over during the six years of Labor Government in his performance since he was commissioned. Queensland until it was resurrected by the What we saw today was quite curious. We saw member for Burnett in his capacity as Minister the leader of the Labor Party in Queensland for Trade and Economic Development in the seeking to take credit for the coalition initiative State of Queensland. Who did all the hard that destroyed the Goss Labor Government. yards in relation to the Port Road? Again, it We saw the Premier of the day trying to take was the member for Gregory as Minister for the credit for the Pacific Motorway presided Transport and Main Roads in the previous over by my colleague the member for Gregory, Government. who I understand was not even invited to the As to Tarong—I seem to remember a formal opening ceremony of Stage 1 at Cabinet meeting at Nanango in about Nerang on Monday. April/May of 1998. The $1 billion coal-fired Mr Cooper: The City Watch-house. expansion was given the nod, the tick, the go- ahead by the previous coalition Government. Mr BORBIDGE: I will go through this, That was before this incompetent Minister for because what we have is mounting evidence Mines and Energy, who says on the one hand of just how paranoid this can't do Premier is that it is okay for him to interfere in the salary becoming. In a ministerial statement on 26 package of the CEO of Energex but on the November 1999, he named in this place his other hand, when it comes to Energex going crowning achievements. Let us go through into the telecommunications industry or going them. Firstly, he named the light rail project. into credit cards, it is none of his business. Do we remember Briztram? Do we remember That was before the power industry was the proposal put forward by the previous plunged into an emerging State bank by the coalition Government and the then Minister for incompetent Minister who now presides over Transport, the honourable member for the Mines and Energy portfolio in this place. Gregory, to the Centenary of Federation funding proposals of the Commonwealth that In his ministerial statement, the member resulted in the Prime Minister signing off on for Brisbane Central, the pretend Premier, the funding for that particular project, which, unlike acting Premier, went on to say— what we have now, was not tampered with by "We have delivered a new Brisbane the Minister for Families, Youth and Watch-house." 30 Nov 1999 Matters of Public Interest 5553

That is news to a lot of people in this Technomart fiasco. I note that the well-oiled Parliament, a lot of people in the Police Technomart team is now leading negotiations Service, a lot of people in the justice system with Mr Richard Branson to attract Virgin to and a lot of people in the legal fraternity. Queensland. We have an unemployment rate Mr Cooper: Even Amnesty International in this State that is now as high as it was when came out for us. Labor came to office. We know the problem: all the big development projects, all the big Mr BORBIDGE: As the member for Crows infrastructure projects that are no longer Nest said, even Amnesty International came happening, have approximately a two-year out and gave the previous coalition lead time. All the major projects, the remnants Government credit. It is all very easy to unveil of the Goss era, the remnants of the coalition a plaque when someone else has done the era, have been delivered. Now we have the negotiations, found the money, started the emperor with no clothes. work and got the approvals going. It is all very easy to come along and unveil the opening We have a Premier who cannot put his plaque and try to get a bit of political mileage. moniker on one major project, except Lang The record shows that Premier Beattie had Park. Does anyone seriously believe that the nothing more to do with the delivery of the new EIS announced by the Minister today will not Brisbane watch-house than he did in be a forgone conclusion, because the orchestrating the lunar mission of Apollo 11, Government said that Lang Park is the site of although we will wait for him to take credit for the super stadium? Increasingly we have a that, too. Left Wing Labor Premier delivering on Left Wing social issues and forgetting about the During the Premier's ministerial statement, basics of what he was elected to do in this we heard the curious interjection by the State. He is forgetting about jobs and Minister for Mines and Energy. He decided forgetting about major projects. Then he is so that the Government should try to take credit super sensitive that he has to come into this for Callide C as well. What short memories place and mislead the Parliament in regard to those opposite have. When they came to projects that are not his. Government, they called for the contracts for Callide C to see whether they could get out of Time expired. building it. Now we have this extraordinary effort by the Minister for Mines and Energy to Casual Employment seek to take credit for that project. Mr ROBERTS (Nudgee—ALP) Mr McGrady: Not true. (11.59 a.m.): More than a quarter of Mr BORBIDGE: While the Minister for Queensland's work force is employed on a Mines and Energy is interjecting, I am casual basis. Some estimates place the figure reminded of his criticism of the peak loaders as high as one third. This has significant social that we put into Townsville. He said that they and economic implications for our State and were a massive liability for the power industry our nation. In this speech, I want to outline the in Queensland. In its annual report, the extent of the occurrence of casualisation, Queensland Power Trading Corporation discuss some of the social and economic states— impacts and also canvass options for addressing this growing phenomenon. Casual "These stations are a key element in employment has a proper and legitimate place providing security of electricity supply— in our industrial landscape. It is a convenient and their commissioning was a major form of employment that suits many achievement for Queensland." employees and employers. However, in recent Those are not the words of the coalition or the years, its proportion of the total work force has Opposition; they are the words of the annual grown dramatically. Current research indicates report of Labor's Queensland Power Trading the number of casual workers expressed as a Corporation to this Parliament. In fact, at the proportion of total workers in Australia has time, the member for Mount Isa was so keen increased from around 13% in 1982 to 25% in and so anxious to try to take some of the 1997. One study places the proportion in credit that he described the commissioning of Queensland as being around 31%. the peak loading power stations as a master Casual employment of males has more stroke. He told Peter Morley that it was a than doubled in the past 10 years. However, master stroke. despite this increase, casual work is still more Halfway through this term, a Premier who heavily concentrated among females, with was elected on the sole platform of jobs, jobs, around 38% of employed females being jobs has been able to deliver net bet and the employed on a casual basis. Between 1988 5554 Matters of Public Interest 30 Nov 1999 and 1998 almost 70% of net growth in the Casual employment is the most number of employees in Australia was in precarious of all employment patterns. casual employment. Over the same decade, Employees can be hired and fired at will, with full-time employment numbers increased by no notice and generally no ongoing only 7%. These are significant numbers which, entitlements. Job insecurity has flourished in my view, indicate a need to properly analyse since the slash and burn era of the late 1980s the impacts such a dramatic change in and early 1990s. In many respects, the traditional employment patterns are having on insecurity created by downsizing is now being our society and economy. replaced by insecurity caused by the Traditional full-time employment has been widespread use of casual employment. the means by which families have prospered Excessive job insecurity is one of the scourges and where individuals have gained the of modern times. It is insidious and eats away opportunity to meaningfully participate in at an individual's self-esteem and sense of economic activity. Stability in employment has worth. It has flow-on effects on not just the been a factor which has played a key role in health of the individual but also relationships stimulating other economic activity of and families. individuals such as major purchases of In terms of the cost of all this, our health houses, cars, holidays, education and health and social security systems wear the burden of services. Increasingly, more and more people social security payments and hospital and within our community are unable to participate other health costs and families and individuals in such economic activity due to their pick up the social and emotional costs. I precarious employment situation, with casual believe that an analysis of the real costs of the employment being a major player in this overuse of casual employment will reveal that regard, as well as unemployment. the costs to the community as a whole will The growth in casual employment fits outweigh the benefits accruing to industry. To neatly within the increasingly competitive reiterate my earlier point, for many individuals environment now established within most casual work is a convenient means of earning aspects of economic life. To succeed or supplementing their income. The lack of economically, our system requires individuals commitment to an employer, and vice versa, is and enterprises to be competitive. Those who a flexibility which suits the circumstances of cannot compete often fall behind and are many. However, for a growing number of forced to rely upon an increasingly diminishing individuals, casual work is becoming the only social security system for their sustenance. means by which they can access an income to The pros and cons of a competitive versus a enable them to participate within our economic cooperative and more interventionist economic system, albeit at a reduced level. model are too complex and contentious for the The irregularity or uncertainty of receiving short time available to me today. Suffice it to a regular pay packet has enormous say, I believe that the growth in casual implications in everyday life. Banks are employment is but one undesirable reluctant to lend to such employees, consequence of an economic system that irrespective of the length of their engagement. relies too heavily on the virtues of competition Casual workers are also reluctant to make as opposed to a model with a stronger longer term financial commitments, which has emphasis on cooperation and intervention. a flow-on detrimental impact on local But what are the real costs of an economies. Casual workers are also less likely excessive use of casual employment and what to engage in structured training related to their can or should be done to address the matter? employment or be seeking avenues for skill Casual employment was traditionally a means enhancement to progress through career of topping up the work force to perform one-off paths which are becoming a feature of modem tasks or to meet an increase in demand. dynamic enterprises. Most casual labour is Recent trends indicate that it has now employed on the basis of simply providing a transcended this to one of being a preferred set of skills or performing a set task for a set choice of employers, particularly in some period of time. The large growth in the industries. The dramatic growth in casual proportion of casual employment must have a employment and the impacts it is having on detrimental effect on the development of our communities has, in my view, lifted its status skills base as a State and a nation. beyond that of just another industrial issue to So what are the solutions to this growing be resolved by industrial tribunals. Given its employment inequity? Should we allow the impacts on the community and the economy growth in casualisation to proceed unhindered in general, it should be the subject of closer or should we develop a broader policy Government scrutiny. response which recognises the significant 30 Nov 1999 Matters of Public Interest 5555 impacts this issue is having on our economic and social costs which can arise communities? I suggest the latter. There are from job insecurity and under employment. some who suggest that our industrial relations In its pre-election New Directions legislation is responsible for the rapid growth of Statement, the Labor Party identified working casual employment. I reject this totally, as time reform as a significant issue worthy of similar rates of growth are evident in other further examination by Government. Specific States and also internationally where more reference was made to the increasing number deregulated industrial systems exist. Our of casual workers who are wanting more work. current industrial relations system has In that document, Labor committed itself to mechanisms to regulate the engagement of establishing a process to investigate working individuals on a casual basis. Provisions in time issues, including casualisation, and to put awards provide for additional payments to forward modern, progressive options to compensate for the loss of general address them. I applaud this proposal and entitlements to sick leave, holiday leave, notice encourage the Government to implement it as periods, etc. Our Industrial Relations Act has soon as practicable. I believe that a proper also recently extended long service leave and resolution of this matter is achievable through family leave entitlements to casuals in certain cooperation with employers, unions and circumstances. The latter measures seem to Government. It is a significant social and indicate some acknowledgment that casual economic issue which deserves an appropriate employment on a longer term basis has policy response from Government. It is in the become a feature in our economy. However, public interest for us to address it as soon as our awards and legislation do not address the possible. fundamental problems that arise from the practice. Tariff Equalisation One of the interesting observations that can be made about the extent of casualisation Mr ROWELL (Hinchinbrook—NPA) in certain industries is that it is generally lower (12.09 p.m.): The tradition of guaranteed, in unionised sectors. Unions have traditionally uniform, low power prices for Queensland opposed employment practices which householders is dead thanks to this Labor disadvantage workers. I believe that history will Minister for Mines and Energy and this Beattie judge the union movement well in its trenchant Labor Government. The Beattie Labor opposition to the widespread abuse of casual Government and this Minister have employment provisions. The declining levels of abandoned the battlers of this State for the union membership in some industries may be forces of the free market. Free market forces an explanation for a part of the growth in mean that, in all probability, there will be casual employment. In effect, declining significant increases in power bills for all unionisation has removed an obstacle for Queenslanders, possibly as early as the end of employers to impose more casual work this financial year. placements in their labour force. Additionally, The Minister is in denial about this fact. most awards do not, nor indeed does our He has refused repeatedly in this House to tell industrial legislation, place any restriction on the truth about what he has done—to explain the proportion of employees at an enterprise and to admit to the householders of that can be employed in this way. Queensland. The reason is obvious. The The solution to this issue can only be Minister knows that the first Government of this determined after gaining a full understanding State of Queensland that abandons the policy of the extent and the implications of the of tariff equalisation will be hurled from office at problem. The first step towards that is to have the very next opportunity Queenslanders have the parties acknowledge that a problem exists. to go into the polling booths. The facts are Unfortunately, the practices within some undeniable. That is the fate that awaits the industries suggest that, far from being seen as Beattie Government. a problem, the availability of large pools of The facts establish beyond all shadow of people willing to accept casual employment is doubt that, despite the denials, viewed as a positive force in our market Queenslanders have been abandoned to the economy. Our first hurdle, therefore, is to market by this Minister and by this Premier. highlight the costs of this phenomenon and This is how it has happened. The member for then encourage the relevant parties to discuss Mount Isa and the member for Brisbane appropriate solutions. There are good reasons Central dropped tariff equalisation at the end for Governments to take an active interest in of the last financial year like a hot brick. They this issue, not the least being the significant dropped it in a state of panic, because the 5556 Matters of Public Interest 30 Nov 1999 national electricity market did not perform the which I have been responsible for in putting way they expected it to. into policy. They are the very matters which Instead of the cost to Government of former Minister Gilmore and the coalition meeting tariff equalisation last financial year Government put in place to govern the being its estimated $93m, it ended up costing electricity industry when they restructured it at least $420m. That blow-out occurred as a back in 1996-97. The member for result of a massive miscalculation by the Hinchinbrook should either learn that or Government of the cost of power for the year. apologise. The Minister said that it would be $37 a Mr DEPUTY SPEAKER: Are you asking megawatt hour, but what did it come to? It through your matter of privilege suddenly came to $60 a megawatt hour. Instead of arising— having hundreds of millions of dollars from Mr HAMILL: I did actually ask for an dividends and from the taxes that the apology, but I will be happy to accept a Government charges the industry under the withdrawal of the comments which he made corporatisation regime that it created, massive concerning me. sums had to be diverted to subsidise equal Mr ROWELL: I simply asked him if it was power bills across Queensland. a fact. Those opposite did not like it. They Government members: Withdraw! wanted the money. It hurt so much that the Government abandoned Queenslanders to Mr ROWELL: If he finds it offensive, I the market. It did so by setting a limit on the withdraw. extent to which it would meet tariff equalisation Mr DEPUTY SPEAKER: I thank the from this financial year onwards. It was the member for Hinchinbrook. The member can directors of Ergon Energy who let the cat out get on with his speech. He has five minutes of the bag in the annual report. The truth is left. that the Government has established a preset limit in relation to its preparedness to meet the MATTERS OF PUBLIC INTEREST tariff equalisation subsidy. I ask the Treasurer: is that right? He gives no comment. Tariff Equalisation Mr HAMILL: Mr Deputy Speaker, I rise to Mr ROWELL, continuing: Last year, for a point of order. The honourable member example, Ergon would have had a massive asked a question of me and I am happy to trading loss if it were not for the $251m the provide the answer. The matters of which he Government paid to the corporation to meet complains are matters that his Government the cost of tariff equalisation. Energex would put in place. have been deep in the red also if it were not for the $150m rebate for tariff equalisation and Mr DEPUTY SPEAKER: Order! That is not the $22m for provision of below-cost electricity a point of order. There are other ways of to pensioners that it got from the Government. handling that, Minister—not through a point of order. A miscalculation of the power price again this year at any level, even vaguely in line with Mr ROWELL: If the cost of power for the the miscalculation last year, means that Ergon year comes in under the preset limit, then the and Energex will have to carry the can. The tariff equalisation will be met. But if it comes in plain fact is that they have nothing to carry it above that level, then Ergon Energy and with. Their cash reserves are exhausted by Energex—not the Government—will have to Government's demands for cash via dividends meet the cost. and income tax equivalents. There is no fat Interruption. with which to meet the cost of tariff equalisation if there is another bad year for prices. The Minister knows that. The Premier PRIVILEGE knows that. Nonetheless, they have Electricity Industry abandoned their constituents, and thus their Mr HAMILL (Ipswich—ALP) (Treasurer) political futures, to the vagaries of the market. (12.13 p.m.): Mr Deputy Speaker, I rise on a There are only two ways in which Energex matter of privilege suddenly arising. The and Ergon will be able to meet tariff member for Hinchinbrook makes various equalisation costs. The first option is, of assertions about my preparedness to answer course, to borrow. A very interesting point is questions in relation to the electricity industry that this was very strongly hinted at as the which I find terribly hurtful and very offensive. likely course by none other than the former The matters of which the member for member for Cairns and former Treasurer, Keith Hinchinbrook complained are not matters De Lacy, in Cairns, where he is now the 30 Nov 1999 Matters of Public Interest 5557

Chairman of Ergon Energy. Ironically, Mr De Multicultural Queensland Policy Lacy was one of the principal architects of the Mr NUTTALL (Sandgate—ALP) Goss Government's corporatisation policy (12.20 p.m.): Today I would like to inform my which decreed that the sole reason for being parliamentary colleagues about the first annual for Government owned corporations such as report on the implementation of the the power industry and public corporations Multicultural Queensland Policy submitted to such as Ergon was to meet a commercial rate the Premier in October 1999 by Multicultural of return for the shareholders. Affairs Queensland, Department of the Making a profit was their sole reason for Premier and Cabinet. Members will be being, and here was the architect of this creed receiving this report in the mail shortly. I being reported in the Cairns Post as saying suggest to them that it is very good reading, that it was of no moment if Ergon had to and I encourage them to take the time and operate at a loss to fund tariff equalisation. the opportunity to read it. Well, of course it is of great moment. It Mr Gibbs: Can I have five or six copies? involves a great contradiction of one of the cornerstones Mr De Lacy and his other Mr NUTTALL: I will be only too pleased to shareholding Minister, the member for Mount provide them to the Minister, and he can give Isa, set when they corporatised Queensland's them to his friends to read over the Christmas power industry in relation to a commercial rate break. of return. More than that, it contradicts one of In August 1998, the Government the branches of the trilogy Mr De Lacy loved to launched the Multicultural Queensland Policy. quote: low tax, full funding of public liabilities The policy provides a central coordination and borrowing only for projects that would framework for Government departments to service their debt from their revenue flow. It is manage Queensland's great diversity. Since impossible for them to service debt if they the launch of the policy, Queensland have to sell a product—the Government's Government agencies have individually or product—at below cost. Borrowing to fund a collectively instigated various policies and forgone revenue is like quicksand, but still the strategies to begin the Multicultural Premier and the Minister abandoned the Queensland Policy implementation, which is battler to the market. putting policy into practice. The other option is, of course, to raise Multicultural Affairs Queensland, as the prices. If it is a commercial entity charged with central coordinating agency within the making a profit as its sole reason for being, Department of the Premier and Cabinet, has then that is surely what Keith De Lacy would also undertaken extensive promotion of the logically want to do. The only thing that will policy across the public sector and established stop that happening is the Government implementation mechanisms, such as ordering Ergon not to increase prices, and that servicing the Interdepartmental Committee on is highly likely. The Minister knows that if Multicultural Affairs. As an integral part of the Queenslanders have to confront the logical implementation of the MQP, Queensland outcome of what he has done this side of the Government agencies are required to report next election, he will not be a member of the on their performance in implementing the policy in their annual reports. Government after it. So he will drive Ergon and Energex to the very brink of bankruptcy until The report to the Premier provides a after the next State election so that if Labor detailed account of what Queensland wins tariff equalisation can die instantly, which Government agencies have done and is what the policy is intended to achieve. achieved in 1998-99 in addressing multicultural issues and addressing policy programs and The main concerns I have relate to the services within their respective departments so loss of electricity, the length of the conductors that they meet the three basic principles of the around this State and the growing aggregation policy, that is, access, participation and of power stations at the southern end of cohesion. The report includes input from 22 Queensland. This will exacerbate the cost of Government agencies. MAQ has also reported power equalisation in the State. There is a on its special initiatives and strategies as the need for a better spread of base load stations lead agency in multicultural affairs. I am happy around Queensland. This is not evident at the to highlight some of the major items here for present time. It is an absolute necessity that the attention of all honourable members. we reduce the length of those conductors so that loss of energy does not continue at the As I mentioned, an Interdepartmental level we are experiencing at present. Committee on Multicultural Affairs, which is chaired by the Director-General of the Time expired. Department of the Premier and Cabinet, was 5558 Matters of Public Interest 30 Nov 1999 set up by Cabinet to drive and coordinate the As all honourable members may be Government's policy in relation to multicultural aware, the Government has also made affairs. The interdepartmental committee, considerable efforts to listen to the community. through its working groups on different Community Cabinet meetings were held in 14 functional areas, has significantly progressed a locations throughout Queensland, and 85 wide range of tasks, including the delegations were received from ethic development of a community relations plan communities. Members of ethnic communities which is a flexible blueprint designed to also contributed strongly to regional improve the community relations environment community forums and Multicultural Affairs in Queensland. These working groups are: the Queensland's own Statewide consultation, working group on Australian South Sea which was held in 11 centres across Islander communities; the working group on Queensland. These consultations received immigration; and the working group on the overwhelming and positive responses from MQP implementation. communities and identified a wide range of In the financial year 1998-99, which the issues that needed to be addressed. A report covers, a budget of $1.15m was summary of the issues is included in the allocated for grants programs under the report. policy's Cultural Diversity Support Strategy. Government agencies have actively These funds were primarily being used for two implemented the MQP either through special major strategies. The first is the Multicultural initiatives within their departments or the Assistance Program. This program provides incorporation of the MQP principles into their assistance to community relations projects that strategic and corporate planning. Some of the promote and advance multiculturalism in this highlights include Queensland education. State, including multicultural festivals, Education Queensland has implemented key seminars, workshops, conferences and the programs and strategies, including the dissemination of information on Community Languages Program and the multiculturalism and community development Ethnic Schools Program, which now receives projects that improve organisational support funds of over $130,000 from the Government. within ethnic community organisations. The This is the first time the Queensland program also provides recurrent funding to Government has provided direct funding to assist peak community organisations to fulfil support this worthy program. There is also the their advocacy and community building roles English as a Second Language Program and for the benefit of ethnic groups and the the combating racism package. promotion of multiculturalism in Queensland. In terms of Queensland Health— $750,000 was allocated to fund MAP projects. Queensland Health has developed service The allocation has increased to $1.28m for the agreements between corporate office and current financial year. health service districts throughout Queensland which now require these districts to report on: The second major strategy funded is the the development of a strategy for Local Area Multicultural Partnership Program, implementation of the MQP and the better known as the LAMP Program. This Queensland Language Services Policy; the program provides funding to local number of staff attending cross-cultural governments to employ workers to support awareness training; and the number of staff communities to build positive community who are skilled to provide mental health relations and develop strategies to facilitate services to people from diverse cultural equal access to Government services. The backgrounds. Service agreements with non- LAMP allocation for the year 1998-99 was Government health-related service providers $400,000 for six local governments, namely, now include requirements that organisations Brisbane, Hervey Bay, Ipswich, Cairns, operate in accordance with the Charter for Caboolture and, of course, Mackay, as well as Public Service in a Culturally Diverse Society. the Local Government Association of In addition, Queensland Health is developing Queensland. The allocation was increased to its own multicultural policy and Language $870,000 in this current financial year. In the Services Policy, and these will be modelled on current budget, eight additional local MQP. governments, including Gladstone, the Gold The Queensland Police Service has Coast, Logan, Johnstone, Maroochy, implemented a number of projects to improve Rockhampton, Toowoomba and Townsville, services to the diverse population. They will also receive funding under the LAMP include: the development of the You, the Law Program, which will bring the total to 14 and Society information package; a review of councils across Queensland. interpreter service provisions and usage; the 30 Nov 1999 Primary Industry Bodies Reform Bill 5559

Queensland Police Ethnic Youth Partnership; ensuring consistent implementation of the reconciliation activities; and the Living in Policy across Government agencies; Harmony project. more resources for multicultural activities The Department of Employment, Training and community advocacy; and Industrial Relations initiated a community improving access to grants funding, training identification project to develop training especially in regional Queensland; plans with ethnic communities. Plans are being improved access to appropriately developed on the Gold Coast, in north delivered services; improved community Queensland and in far-north Queensland. The relations; department has developed the Government's employment; and Breaking the Unemployment Cycle initiative to productive diversity. provide better access to employment opportunities for people of diverse cultural and In addition the Government will pay particular attention to the needs of the Australian South linguistic backgrounds. The nature, cause and Sea Islander community. On 21 September solutions to long-term unemployment in ethnic 1999 the Premier announced the Government's communities is to be investigated in intention to formally recognise the Community partnership with Multicultural Affairs as a distinct cultural group. Consultations are Queensland and the Workforce Strategy Unit. currently underway on an appropriate The department also has been working with Recognition Statement. outworkers, predominantly from Vietnamese, Mr Speaker, what I have highlighted are only Chinese and Cambodian backgrounds, to some of the initiatives being taken in support of ensure that they have access to relevant this important Government Policy. I strongly award and legislative provisions. recommend to my Parliamentary colleagues that they read the full Report as it reflects the Arts Queensland has developed its own Government's continued commitment to multicultural arts policy, called the Cultural implementing multiculturalism and provides a Diversity and the Arts Policy. MQP has been detailed account of the major achievements the linked to the Arts Queensland 1999-2003 Government has made in the last year as well as strategic plan. In 1999-2000, Arts Queensland the future directions on further development of will offer cross-cultural training for staff as part multiculturalism in Queensland. of the implementation of the MQP. Information I would like to take this opportunity to about its programs in languages other than commend the high level of professionalism and English will be published to increase access for commitment demonstrated through this Report clients from diverse backgrounds. by MAQ Executive Director and staff as well as Mr Deputy Speaker, there is only a short Departmental representatives on the IDC, the Working Groups and all those involved in part of my speech left, and I seek leave to implementing the Policy at the service level. have it incorporated in Hansard. Mr NUTTALL: I commend the report to Mr DEPUTY SPEAKER (Mr D'Arcy): We the House. would almost be prepared to grant the member an extension of time. Leave granted. PRIMARY INDUSTRY BODIES REFORM BILL Department of Families, Youth and Community Second Reading Care Resumed from 26 November (see The Department's Child Care Access and p. 5522). Equity Strategy included the following activities in 1998-1999— Hon. H. PALASZCZUK (Inala—ALP) (Minister for Primary Industries) (12.30 p.m.), in Developed new resources to support communication between families from reply: I have arranged to have distributed a culturally and linguistically diverse new set of amendments to the Bill. This set backgrounds and child care services. replaces that which was distributed on Friday. This new set is necessary because of two Child care service staff undertook training provided by the Queensland Program of changes in the amendments which the Assistance to Survivors of Torture and Government wishes to make. These changes Trauma (QPASTT). result from further discussions with peak The Department and MAQ jointly fund the Non- bodies and relate to the date of transfer of the English Speaking Background Youth Issues two bodies and the nature of trusts for Network Project conducted by the Youth canegrowers. Affairs Network of Queensland. This Bill epitomises the two key The Report highlights the priorities for future approaches of the Beattie Government to work under the Policy. These are: policy for primary industries. Firstly, it is about 5560 Primary Industry Bodies Reform Bill 30 Nov 1999 reform which benefits ordinary producers, not Queensland Pork Producers will all have an change for change's sake. Secondly, it is additional month to effect the transfer. We about gradual transition, not about radical cannot delay the implementation of this change. What the Bill also demonstrates is scheme of the Bill for too long because of the that this is a Government that is prepared to legal imperatives. govern in the interests of all Queenslanders, Also, the facilitating provisions of the Bill regardless of their occupation, their regional allow for extremely rapid action for transfers. status, or their political allegiance. For example, under the Bill, an incorporated As I said in my second-reading speech, it association could be registered in one day, would have been very easy for the when this would ordinarily take around three Government to have walked away from the weeks. Again, this is needed because of the five producer bodies provided for in this Bill. It urgency and makes the strict time frames a lot would have been easy to say that the more reasonable than may at first have problems could not be solved, it was all too appeared to be the case. difficult and we should just cut them adrift. We have not taken the easy way out. We have Secondly, I come to the treatment of worked hard, in consultation with the producer Canegrowers' subsidiary bodies and their groups and with our legal advisers, to find a assets. Following the introduction of the Bill, better way for the five bodies and for the concern had been expressed by some producers that they represent. All of the five canegrowers—notably in the Burdekin are ready to make the change and are very area—to ensure the proper future use of funds confident about the future. and assets which have been provided by way of levies. These decisions would be made by My department has been in daily contact the mill supplier committees and district with the producer bodies and has worked canegrower executives which are subsidiaries closely with them to explain how this Bill will within the three-tier Canegrowers structure. work to ensure that the transition is as smooth as possible in the circumstances. As a result of I want to ensure that, where assets have these detailed discussions between my been acquired by local bodies for the benefit department and the relevant industry bodies, I of local growers through levies on those propose that a number of amendments be growers, control of those assets continues to made at the Committee stage of debate. reside at the local level. It is not, and never Most of these do not raise matters of has been, the intention of the Government to policy and are consistent with the broad thrust seek control of these assets moved to of the Bill. There are, however, three matters Canegrowers' head office in Brisbane. I do not of a substantive policy nature requiring believe this was the intention of Canegrowers, explanation, namely: an extension of time for either. implementation arrangements; the treatment As drafted, the Bill provides that assets, of Canegrowers' subsidiaries; and the such as land and improvements, held in trust treatment of Queensland Fruit and Vegetable by Canegrowers for the mill supplier Grower local producer associations. committees and district canegrower executives Firstly, let me refer to the extension of are likewise to be held in trust by each time for implementation arrangements. At replacement company, along with any present, the Bill provides for the transfer of associated liabilities. However, not all the assets and liabilities from the five statutory locally funded assets are land and buildings. producer representative bodies to their Some mill supplier committees and district respective non-statutory replacement bodies to executives hold substantial cash reserves and occur one day following the date of other assets not covered by the trust commencement of the legislation. In other arrangements, such as computer equipment words, this was to happen on the day after and vehicles. assent. The Bill also provides for the The Bill, as initially drafted, provides that termination of existing levies on assent. these other assets become assets of Each of the bodies has different needs in Canegrowers immediately before the transfer terms of the timing of the change; hence the day and then transfer to its replacement body, Bill is to be amended to provide extra time which is to be a company limited by where it is needed. QFVG is happy to proceed guarantee. It is my understanding that on the day after assent, as is currently Canegrowers propose in the rules of the provided in the Bill. QCFO needs an extra replacement company that these assets will, week to complete its arrangements. once transferred to the replacement company, Canegrowers, Queensland Dairy Farmers and be held for and on behalf of equivalent mill 30 Nov 1999 Primary Industry Bodies Reform Bill 5561 supplier and district executive subsidiaries to recognised that the assets have been funded be established by the replacement company. by the relevant local producers and not by way However, this is unlikely to satisfy the of QFVG levies. increasing number of canegrowers who are I am pleased to announce to the House now starting to press for more legislative that agreement has now been reached with certainty as to the future use of their assets. It QFVG on amendments to the Bill which will seems that there is a concern that company enshrine local ownership and control of local rules can be changed far more easily than an producer association assets. I will explain Act, and hence initial safeguards in the rules these in detail during debate in the Committee could be removed at some later date. I believe stage. that these concerns need to be properly Before leaving this matter, I wish to addressed. commend the senior management of QFVG Accordingly, amendments have been for the responsible way in which they have prepared by the Office of Parliamentary handled this most difficult issue. They have Counsel in regard to the treatment of all assets sought at all times to achieve a workable and any associated liabilities of mill supply outcome while recognising the Government's committees and district canegrower policy framework, on the one hand, and the executives. These amendments protect and need to protect and preserve the rights of local preserve local grower interests. But they also producer associations in a legally defensible enhance grower control of their assets. Let me manner on the other. repeat—local growers will have more control of The consultation with the bodies their assets under this Bill than they have had themselves has resulted in 38 amendments to for the past 75 years. I will explain these in the Bill. I want to assist in a smooth transition, detail during the debate in the Committee and that is why I am prepared to make these stage. amendments. Many of them are only minor or Finally, I would like to inform the House as are of a technical nature. to the treatment of QFVG local producer I now wish to address some of the issues associations. Local producer associations are raised by honourable members opposite in this commonly described as the "base tier" of the debate. A number of these concerns have Queensland Fruit and Vegetable Growers already been dealt with by the Government's structure, although in a strict legal sense they amendments, so I do not intend to traverse are not subsidiaries of QFVG. This means that that ground again. The honourable member they are not the same in a legal sense as the for Crows Nest raised concerns about the mill supplier committees and district inclusion in this Bill of amendments to the canegrower executives within the Canegrowers Meat Industry Act. It is not, nor will it become, structure. Therefore, they have to be handled my general practice to add matters such as in a different way. this to legislation which deals with one topic. In There has been extensive discussion with this case, there is a degree of urgency to the Office of Parliamentary Counsel and with ensure that the Meat Industry Act QFVG senior management regarding how the amendments are in place by December. This Bill should handle local producer associations is because the QAC needs the power to enter and their assets and liabilities. In the Bill as it into contracts in relation to its Cannon Hill site now stands, those local producer associations as soon as possible. Australian Country which have been constituted as cooperatives Choice, the prospective investor in the site, have already been excluded from the statutory needs to get the contract signed for transfer arrangements because they are commercial reasons and so that it can begin distinct legal identities in their own right. An construction of its new kill floor on site. As this amendment is also proposed to exclude those new kill floor needs to be in place by few that are incorporated associations as well. November next year, commencement of However, the difficulty has been with construction cannot be delayed. Hence the regard to what to do with those local producer urgency to sign the contract. I assure the associations—and this is by far the honourable member for Crows Nest that, but majority—which are unincorporated and which for this urgency, I would not have included arguably have no proper legal status at these amendments in the reform Bill but would present. More particularly, the question is how have awaited an omnibus amendment Bill. to deal with local producer associations in a The issue of the Government's legal manner that is both legally sound and which advice has also been raised. I will not engage preserves the existing assets, liabilities and in a legal debate on the floor of the House. I obligations of these bodies. It is, of course, do not think that anyone can argue seriously 5562 Primary Industry Bodies Reform Bill 30 Nov 1999 that the Government would be acting with the House that some $18m per year is such urgency were it not extremely concerned collected by the five bodies through the levy about the doubts that have been raised. I system at present. Canegrowers itself collects have been asked repeatedly by members $6.7m and the QFVG collects about $5m. opposite to table the Government's legal Having to repay this money, even if it is limited opinions. All honourable members would be only to one year, would have dire effects. The aware of the concept of legal professional members cannot seriously suggest that the privilege that attaches to legal advice. If the Government should risk this. To do so would Government were to begin tabling its legal be irresponsible and highly detrimental to the advice or passing it around freely, it would lose interests of the organisation and its members. legal professional privilege. It is the strong It all gets back to legal doubt. If the position of Crown Law, the State's lawyers, Government is aware that there is a doubt, it that the advice cannot be released, and I will must act to cure that doubt. I can only hope abide by its view on this matter. If members that the members opposite would do the same would like me to, I can get legal advice from if they were in office. I am sure that the Crown Law on the loss of legal professional honourable member for Crows Nest would do privilege that would result and I will then table that, but I do have some concerns about other that advice. members on his side of the House. I would The shadow Attorney-General asked who also be profoundly concerned if they were has been advising the Government and prepared to ignore such a situation and run proceeded to suggest that whoever this was the risk of legal challenges. This would be an did not understand the law. The Government's abdication of responsible government. advisers on this matter have been Mr David The member for Mulgrave, always Jackson, QC, of the Sydney Bar, Australia's attentive to the needs of his constituents, pre-eminent constitutional lawyer; Mr Cedric raised a number of issues. I assure him that Hampson, QC, Queensland's most senior silk; these will be dealt with by the Government's and Mr Pat Keane, QC, the Solicitor-General. I amendments. The issue of stamp duty was suggest to the honourable member for raised by the member for Gladstone, the Warwick that he might want to reconsider his honourable member for Crows Nest and remarks about these learned gentlemen. If others. I reiterate what I said in my second- they say that there is a doubt that has to be reading speech, that is, stamp duty relief will resolved, I will move to cure that doubt. Their be afforded. However, this will not be done by advice is that the provisions of this Bill legislation, it will be done via ex gratia unequivocally cure any doubts that could arise. payment. This means that the duty is The shadow Minister and the shadow assessed in the first instance and has to be Attorney-General raised the issue of a flat fee paid, but then Treasury can make the refund. being a constitutional method of collection. It is Cabinet has already, on my submission, said the case that a flat fee raises fewer doubts that this will happen—and it will. This really than does the current system. However, has should be sufficient for honourable members either member thought through their opposite. suggestion that this would solve the problem? Mr Cooper: You can't trust Treasury. I very much doubt it. I cite the following Mr PALASZCZUK: I reiterate: Cabinet has reasons. A flat fee is obviously the same for all already, on my submission, said that this will producers, whether they be large producers or happen. small producers. The question emerges: what rate would one set? For equity reasons, it The issues raised by the Scrutiny of would have to be quite low so as not to Legislation Committee have been alluded to disadvantage the smaller producers. The by many members opposite. I believe I have revenue collected would be nowhere near addressed these issues in my letter of reply to sufficient for any of the organisations to the committee. At the end of the day, the continue their functions with any degree of committee's comments depend on the normality. This option was canvassed and was urgency of the Bill. As I have said, it is urgent dismissed as impracticable. and hence the measures are justified. I must take issue with one comment The member for Mirani raised the issue of made by the honourable member for Crows sugar research levies. These matters are not Nest, who suggested that even if the levies the subject of the Bill. The State BSES levy will were found by a court to be unlawful this would finish with the commencement of the new not bankrupt the organisations. With respect, I Sugar Industry Act on 1 January 2000. At the believe that this shows a flippant attitude to recent meeting of the Sugar Industry the financial wellbeing of these bodies. I inform Development Advisory Council a special 30 Nov 1999 Primary Industry Bodies Reform Bill 5563 industry working party was formed to examine producers from joining and funding other non- the best mix of funding options for the statutory representative bodies. industry. This can include contributions from Compulsory membership is itself not a the pool via the QSC, use of the restriction on competition. This is because the Commonwealth levy, local area agreements compulsory membership provisions are not and voluntary contributions. Industry values its linked in any way to the producer's right to research and development and I am sure that engage in the production or the marketing of it will work to find an acceptable mix of funding that particular commodity. To put it in a arrangements. different way, if a producer fails to pay his The honourable member for Mirani also membership fee, he or she will not be raised the issue of the single desk. My support prevented from continuing to produce or to for the single desk marketing of sugar is well market the commodity in question. If there known. I believe it is a crucial factor in the were such a restriction, then it would be caught success of our industry. The Sugar Industry up by the NCP. Act, which this House passed recently, secured Let us consider this example. If the Bill the single desk. In my eyes, this is one of its said that a commercial fisher would not get his key achievements. Next year the Government commercial fisher licence renewed if he failed will move to allow the single desk to be to pay the membership fee for the QCFO's conducted by an industry controlled marketing replacement body, then we would have a company. This is a huge step forward and restriction on competition as we understand demonstrates how far we have come. Who the term to mean. However, the Bill does not would have thought that this would have been contain this type of restriction. I will give possible for the sugar industry even two years another example. If the Bill said that a fruit ago? However, it is happening and it will give grower could not sell any produce at the the industry much greater control over its own Brisbane Markets unless he paid the destiny. membership fee to the QFVG's replacement A number of members raised the dairy body or if it said that a sugarcane grower could industry and the potential for deregulation. The not supply cane under a cane supply new Victorian Labor Government has allowed agreement if he was not a fully paid up its farmers a vote on whether or not to member of the Canegrower's replacement deregulate. The vote will be conducted from 6 company, then we would be dealing with December to 20 December and will be on the restrictions on competition. basis of one cheque, one vote. I urge Victorian However, the Bill does not contain any of farmers to think very carefully about what they these restrictions. It does not restrict are doing and the implications for their State production, marketing or competition. It also and for farmers in other States. I am keenly does not restrict a producer from joining any awaiting the outcome of the ballot and the other body he or she wishes to belong to. For Victorian Government's ultimate decision. example, it does not stop a canegrower from joining or continuing to belong to the ACFA. I Before I conclude, I notice that the assume that this is where the concerns of the honourable member for Burdekin is in the member for Burdekin are coming from. I can Chamber. He foreshadowed his concerns assure the honourable member that those of about possible National Competition Policy his constituents who wish to belong to the implications of this Bill in his speech on the ACFA will be able to continue to do so. The Bill Sugar Industry Bill. It was not clear to me at will not affect that in any way, shape or form. the time why an issue concerning the Primary Industry Bodies Reform Bill was raised in the In conclusion, I believe this to be a context of the Sugar Industry Amendment Bill landmark piece of legislation. As the member and nor was it clear whether the honourable for Mulgrave pointed out, the Bill replaces member was advancing argument in support some very historic pieces of legislation. It is of adherence to NCP principles. Anyway, I true that the times have changed, but let me hope to put his mind at rest by saying that this urge all producers to belong to their industry Bill does not raise NCP issues. Specifically, the associations. These associations do very fine Bill does not seek to impose restrictions on work. I deal with them regularly and they often competition as that term has been defined for provide me with wise counsel. At other times, the purposes of the legislation review they provide me with a damned good earful, component of NCP. This is because the Bill but that is their job and they do it well. Under does not seek to impose any restrictions on this Bill, they will do it even better. I commend the production or the marketing of any the Bill to the House. commodity and nor does the Bill prevent Motion agreed to. 5564 Primary Industry Bodies Reform Bill 30 Nov 1999

Committee There would have been no need to have Hon. H. PALASZCZUK (Inala—ALP) any retrospective provisions if primary producer (Minister for Primary Industries) in charge of groups had been given realistic time frames the Bill. from the outset. This amendment, together with the one proposed to clause 10, confirms Sitting suspended from 12.53 p.m. to the substance of our criticism. 2.30 p.m. However, I have some concerns about legal Clause 1, as read, agreed to. implications. Primary producer bodies, together Clause 2— with a range of other persons, including public Mr PALASZCZUK (2.30 p.m.): I move the servants, have been acting in reliance on following amendment— clause 2. They have assumed that any act that they may have done in conformity with "At page 10, line 8— this Bill, even though it was not in conformity omit, insert— with any existing laws, would be retrospectively '2.(1) Part 9 and part 10, divisions 1 and 2 validated by reason of clause 2(2). Instead, we commence on assent. now see that there will be no retrospective operation of this Bill, and it will be prospective '(1A) Part 10, divisions 3 and 4 only. commence 1 month after the date of assent.1'. I would not quibble with this seemingly 1 desirable move if an amendment were Parts 9 (Amendment of Meat Industry Act proposed that saved any act done in reliance 1993) and 10 (Repeals and other amendments)." on this Bill prior to the transfer day. The purpose of this amendment is to Unfortunately, there is no such clause in this ensure that the existing levy arrangements Bill. I have a question for the Minister. Has the cease on the commencement of this department sought advice on whether any legislation, that is, on the date of assent. Part person, including officers of primary producer 10 of the Bill provides for the repeal of existing bodies or public servants who have acted in legislation under which the current levies are reliance on the provisions of this Bill to date, made, the Acts in question being the Primary but who may have breached any current laws, Producers' Organisation and Marketing Act will be exposed for any action by the removal and the Fruit Marketing Organisation Act. The of the retrospective operation of clause 2(2)? amendment states that Divisions 1 and 2 of The Government owes a duty of care to Part 10 will commence on assent. These anyone who has relied on this Bill to date, who provide that, on assent, no levies may be has acted in good faith and without made under the two existing Acts. Those two negligence, to save their actions from any Acts will then expire one month after assent to legal challenge or legal proceedings. I am not allow more time for completion of transfer to sure whether this could be a problem or not, the replacement corporations. but I am uneasy that this matter is left up in Divisions 3 and 4 of Part 10 refer to minor the air. I look to the Minister for an explicit consequential amendments to two other Acts, assurance that the matter has been properly the Stamp Act and the Wheat Marketing investigated and that no problems exist. (Facilitation) Act. The amendments need not Mr PALASZCZUK: The officers of the commence until the expiry date of the two levy Office of Fair Trading were consulted during Acts. the preparation of this Bill. Those officers fully Mr COOPER: The Opposition appreciates understand and support the urgency behind that this amendment is consequential on the the retrospective provisions in the Bill. Those proposal to amend clause 10 so that the officers have agreed to register the transfer will be one month after the date of replacement corporations contrary to the assent. We have circulated our amendments. existing provisions of the registration We will be moving our amendment when legislation. They have done so in the clause 10 comes around. We support understanding that this Bill will be introduced extending the time for primary producer groups and passed by the Legislative Assembly. to effect the appointment of a replacement Those officers have done so in good faith on corporation. As the Minister knows, the the basis of that understanding. I acknowledge retrospective operation of this clause has that, as a general rule, such legislative caused a lot of comment and criticism. He will provisions are undesirable. However, in this recall my extensive quoting of the recent Alert instance, I consider that the urgent need to Digests on the matter. remove legal doubt that threatens the ongoing 30 Nov 1999 Primary Industry Bodies Reform Bill 5565 viability of the producer bodies justifies the when the organisations saw the amendments, retrospective provisions in the Bill. they were concerned. That is why the Minister Mr COOPER: I am not going to belabour has acted now. In future, amendments should the point. I am looking to protect officers, staff go out as early as possible. and other people who have been involved and The Minister has said that the who may have acted not with any negligence amendments are not technical ones. They are at all. We want to make sure that they are not designed to fix up typographical or drafting protected. That is really the point of my errors, although a little bit of tidying up is questioning. scattered through the proposals; rather, the Mr PALASZCZUK: I accept the concerns amendments are of a fundamental nature. For that have been raised by the honourable example, this clause needs to be amended to member for Crows Nest. delete one of the current objects, namely, to Amendment agreed to. transfer assets held for a local association that is not a cooperative to its committee members Clause 2, as amended, agreed to. on trust for its members. Clause 3— It is clear that the Government has not Mr PALASZCZUK (2.36 p.m.): I move the handled the issue of secondary bodies all that following amendments— well, particularly as they relate to the COD and "At page 10, line 14, 'generally,'— Canegrowers. There is enormous discontent and concern in the sugar industry. These omit. amendments are needed to address the many At page 10, lines 18 to 20— legitimate concerns that have been raised in omit." letters to me. Those involved have gone so far as to write letters to me—as no doubt they These are two proposed amendments to have to the Minister—expressing those clause 3. The first is simply a tidying up concerns. amendment and removes the word "generally" from the start of provision (a) of the clause. As I said, we do not intend to oppose the That word is unnecessary. The second Minister's amendments, but they are certainly amendment omits provision (b), which refers to proof of a Bill that has virtually been rushed the previously intended transfer of local into the Parliament without adequate producer association assets under trust consultation and without adequate arrangements. Following extensive discussions appreciation of the complexities of the various with the Queensland Fruit and Vegetable industries and the needs of the grassroots Growers it is proposed to deal with local primary producers. During the second-reading produce association assets in a different way debate, I said that this Bill represented a from that set out in the Bill as originally drafted. failure of due process. Confirmation of that is This is a procedural amendment. I propose to the fact that the Minister has had to move so explain the intended restructuring process for many amendments. Since last Friday the the local producer associations in more detail Minister has received numerous submissions when we consider amendment No. 4. from producer bodies, so he has had to submit new amendments today. But it is far better to Mr COOPER: The Government has take the time to get it right than to rush things circulated two amendments to clause 34. They through. That is the point we have been trying set out the objects of the Bill. The coalition to make all the way through. does not oppose those amendments, but there is no doubt that the objects clause has I doubt whether the amendments that will to be amended to reflect the fact that the be moved in Committee will go anywhere near Government has proposed no fewer than 38 dealing with all the problems that the rushed amendments in this Bill. We circulated those and compulsory creation of replacement amendments to producer organisations on corporations will cause. The manner in which Friday last. That enabled the organisations to something as incredibly difficult and complex come forward with their concerns so that the as this has been gone about represents a Minister was able to put forward some more case study of how not to develop and process amendments today. The Minister's major public policy. I will deal with some of the amendments did not go out until yesterday. major amendments later, but I do say to the The members of the organisations need time, Government that this fundamentally as everyone needs time, to consider the undemocratic Bill is riddled with problems. I amendments. If further amendments are doubt whether the objects as set out in required, they can still operate while waiting for clause 3 will be able to be achieved by the their concerns to be dealt with. I believe that, substantive clauses as they now stand and as 5566 Primary Industry Bodies Reform Bill 30 Nov 1999 they are proposed to be modified by the extensive discussions with the Office of amendments circulated. Parliamentary Counsel on the matter of local We are confronted with a piece of producer associations and their assets and legislation that has been changed by the day. liabilities. In the Bill as it now stands, these Each time new problems arise the legislation local producer associations that have been has to be modified in an attempt to deal with constituted as cooperatives have already been the latest problem exposed. That is what excluded from the statutory transfer happens with legislation. I have been in the arrangements because they are distinct legal Minister's position before. If it is not right the identities in their own right. However, the first time, then one thing can lead to another difficulty has been what to do with those local and so on. It is very difficult to have confidence producer associations, by far the majority, that that the Bill, when passed, will achieve those are unincorporated and that arguably have no objectives as set out in the clause because the proper legal status at present. production of the legislation has been gone Whilst the vast majority of the 110 local about in the wrong way. Those are the points I producer associations are essentially local wish to make on the Minister's amendments. I industry discussion groups with little in the way will be discussing other points later. The of assets, there are a few—perhaps five or six Minister may wish to comment; that is up to in all—that have significant amounts of money him. But we are very concerned about the way under their control, including a six figure in which this legislation has been handled. amount in at least one case raised by way of Amendments agreed to. membership subscriptions. Whilst it might be thought that the easiest solution would be Clause 3, as amended, agreed to. simply to exclude the unincorporated local Clauses 4 and 5, as read, agreed to. producer associations from the Bill altogether, Clause 6— this then begs the question of what is to happen to them and, perhaps more to the Mr PALASZCZUK (2.42 p.m.): I move the point, what is to happen to their assets, following amendment— especially funds under their control, liabilities "At page 11, after line 21— and employees. The key issue is how to deal insert— with local producer associations in a manner that is both legally sound and which preserves '(aa) each local association that is not a the existing assets, liabilities and obligations of cooperative or an incorporated these bodies and which also recognises association; and'." employee entitlements, accepting that the This amendment includes within the definition assets have been funded by the relevant local of "producer body" the various local producer producers and not by QFVG itself. associations within the Queensland Fruit and Agreement has now been reached with Vegetable Growers structure that are neither QFVG on amendments to the Bill which will cooperatives under the Cooperatives Act nor enshrine local ownership and control of local incorporated associations under the producer association assets. The currently Associations Incorporation Act. The effect of unincorporated local producer associations will this amendment is to allow restructuring be required to either incorporate, which will arrangements for the unincorporated local give them proper legal status, or wind-up and associations which number some 100 or so to distribute their funds back to the grower be carried out under this Bill in accordance with members. Once they are incorporated, their a process that has been agreed to with QFVG. members will have full ownership and control There are a number of amendments to the Bill of their assets and of course will have full required to give effect to this exercise, so a responsibility for any associated liabilities. The detailed explanation of the process is Bill already includes fast-track incorporation appropriate at this point. provisions put there for the benefit of QFVG Local producer associations are and the other four statutory producer bodies. commonly described as the base tier of the These fast-track arrangements will now be QFVG structure, although they are not legally extended to the local producer associations part of the QFVG because the Fruit Marketing and, in addition, QFVG will be empowered to Organisation Act 1923 does not specifically handle the incorporation process on behalf of give them recognition as subsidiaries. This those local producer associations who want to means that they are not the same in a legal go down that path. sense as the mill supplier committees and Amendment agreed to. district canegrower executives within the canegrowers structure. There have been Clause 6, as amended, agreed to. 30 Nov 1999 Primary Industry Bodies Reform Bill 5567

Clause 7— incorporate, then the same people who were Mr PALASZCZUK (2.46 p.m.): I move the members before this Bill will continue to be following amendments— members under the new arrangements. On the other hand, if an unincorporated "At page 12, lines 5 to 7— association elects to wind-up, then the people omit, insert— who were its members before this Bill will be '(a) for the COD—each sectional group the ones who are eligible to share in the committee under the FMO Act; or'. distribution of the net assets of the association. The second amendment is a At page 12, after line 11— minor one and simply deletes a superfluous insert— reference to a section of the Primary '(2) A local association does not have any Producers' Organisation and Marketing Act. A secondary body.'." reference to the Act itself is all that is required. As with the previous amendment, the two Amendments agreed to. amendments to clause 7 also clear the way for Clause 8, as amended, agreed to. restructuring arrangements for the Clause 9, as read, agreed to. unincorporated local associations to be carried out under this Bill in accordance with what has Clause 10— been agreed to with QFVG. The first Mr COOPER (2.48 p.m.): I move the amendment removes the requirement that following amendment— local producer associations be treated in the "At page 13, lines 1 and 2— same way as QFVG secondary bodies—namely, the sectional group omit, insert— committees—as local producer associations 'Meaning of "transfer day" are to be handled separately. The second '10.(1) The "transfer day" is the day that is amendment simply recognises that local 6 months after the date of assent or the associations do not have any secondary earlier day declared by the Minister by bodies within the meaning of this Bill. gazette notice. Amendments agreed to. '(2) The Minister may make a declaration Clause 7, as amended, agreed to. under subsection (1) only with the approval of the relevant producer body.'." Clause 8— The coalition has previously circulated this Mr PALASZCZUK (2.47 p.m.): I move the amendment, and I know the Minister has it. following amendments— We believe that this amendment will ensure "At page 12, after line 15— that, if enacted, many of the problems insert— endemic in this legislation can be dealt with. I cannot say that all of the problems can be '(aa) for a local association—the person is, resolved; certainly a lot more time may be immediately before the transfer day, needed for some primary producer a member of the association under organisations to work through the implications the Fruit Marketing Organisation of this Bill with both their professional advisers Regulation 1964, section 50; or'. as well as their members. The object of this At page 12, line 17, from 'PPO& M amendment is to ensure that the obligation to Act'— transfer rights, obligations and assets to a omit, insert— replacement corporation need not occur until six months after the date of assent or such 'PPO&M Act.'." earlier day agreed upon by a primary producer The first amendment inserts a definition of an body. Some primary producer bodies will be eligible producer for a QFVG local producer able to put in place successful corporations association. The definition refers to the current within relatively short time frames. Others may arrangements under the Fruit Marketing not be able to achieve that ambitious goal. Organisation Regulation and means that all The problems faced by some bodies such as persons who are currently members of a local Canegrowers are immense. I sometimes association are recognised under this Bill. This wonder if the people who have organised this is necessary as part of the proposed Bill have made sure that they have had restructuring arrangements for the local adequate discussions with these bodies in associations which I have already outlined. relation to the sorts of legal and taxation The effect will be that, where an implications this Bill brings with it and which unincorporated local association decides to have caught some of these bodies in their net. 5568 Primary Industry Bodies Reform Bill 30 Nov 1999

I have spoken to a number of industry period of time. Primary producer bodies can people and right now they are still getting nominate any date in the interim, and some advice. The professional people who are want to. However, we do not subscribe to the looking at both the Bill and the amendments principle that one size fits all. Each of these circulated last Friday have not worked through bodies has its own issues, problems and all of the issues yet. In fact, as I said, some of goals, and we believe that this Bill should be the primary producer bodies were not given flexible and proactive enough to recognise these amendments until Monday. As we these goals. speak, lawyers and accountants are trying to In short, this amendment in no way work out the taxation implications of certain disadvantages those organisations that can transfers. Many critically important questions move quickly nor places unfair and inequitable are still up in the air and may be so for another time frames on those that cannot. I believe week or two. that this is a practical, sensible amendment I have particular sympathy for the sugar and I urge the Minister to accept it. industry, especially with all of the amendments Mr PALASZCZUK: I believe that the proposed that will ensure that the assets of Government's amendment is appropriate, secondary bodies will be held in trust. This given the legal doubts. Keeping that in mind, I change, desirable as it is, has a range of believe that the Opposition's amendment is implications not just for Canegrowers but also unnecessary and superfluous and the for the various mill suppliers committees and Government will not support it. district canegrowers executives. The various secondary bodies in the sugar industry have Mr KNUTH: I support the amendment not been consulted, and it is impossible to say moved by the member for Crows Nest. I agree whether the amendments being moved which that Canegrowers deserves the right to are intended to assist them are in fact drafted proceed with transfers of assets and to form a in a manner which achieves their stated object. new corporate body. I also agree that many growers need to resolve issues with their own In these circumstances, the only sensible, peak bodies before transition dates are given. fair and responsible thing to do is to give a Many of the Minister's amendments will maximum period, which in this case is six alleviate most of these concerns. However, months, for the primary producer groups and issues will arise and issues need time to the various secondary bodies to arrange their resolve. It is for this reason that I support the affairs in accordance with the principles Opposition's amendment to give a further six mandated by the legislation. Obviously some months transitional period. I ask that the organisations will be able to arrange their Government accept that amendment. affairs much more expeditiously than others. In Mr ROWELL: Once again I urge the these circumstances, this amendment Minister to reconsider his position on this facilitates a staged and orderly transition to amendment. This amendment gives a great new arrangements. deal of flexibility to a range of organisations. Under this amendment, as soon as the As the member for Crows Nest said, there are primary producer organisation has finalised its some organisations that require immediate transition arrangements it can notify the transfer of their assets and their capabilities in Minister and the necessary declaration under order to collect levies as quickly as possible. proposed subclause (1) can be made. I am Organisations such as QFVG depend on them aware of at least two of the bodies who are on a daily basis. It is quite essential that that anxious for the transfer arrangements to be occurs. QCFO is in a similar situation. In the effected at the first available opportunity, case of Canegrowers it could be different. particularly having regard to the regressive way This amendment gives the opportunity to that this Bill has dealt with the collection of organisations to arrange their affairs in a existing levies. This amendment in no way manner that will be of benefit to the frustrates that goal. In fact, it empowers these organisation in the future. If it has some time groups by allowing them to nominate to the on its side, it has the prospect of making sure Minister a day which best suits their particular that whatever changes are made are of a circumstances. nature that will be for the future benefit of the To ensure that a clear, timely and industry, rather than having to rush into the absolute transition period is mandated, the process. I think the Minister has to admit that amendment ensures that six months after this Bill has come in very quickly. The assent is set as the maximum period of time Government has had to make some major within which the transition arrangements have changes. When we are dealing with millions of to be put in place. I repeat: it is a maximum dollars in assets, I think it is essential that 30 Nov 1999 Primary Industry Bodies Reform Bill 5569 organisations are given the opportunity to month after the date of assent. That has arrange their affairs. passed this Chamber and is included as the This amendment allows organisations to Minister's first amendment. This amendment make the relevant decision at any time. As proposes to give more flexibility—as has just soon as the Bill is assented to, they can go been stated, to six months. How will those ahead and make the necessary changes. If organisations stand in relation to collection of there is a requirement for them to attract the levies in that intervening five-month period? levy sooner rather than later, if they do not How will they be able to collect the levy and, operate on an annual basis which does not fit consequently, what impact will that have on in with this Bill, this amendment enables them the revenue for the association? to slow down the process and make sure that Mr PALASZCZUK: There will be no things are put in place that are best for the collection of levies in the intervening time until industry. the bodies are incorporated into their new Mills such as Rocky Point have not structures. actually finished their crushing. They will Mr COOPER: What the Minister has said probably go on to January. It is doubtful that is true, but the organisations have asked for they will get through their full crop even by that this. Some organisations want it more or less time because of the extreme wet weather straight away. Others do not. It is up to them conditions. They have to consider their position to make their own arrangements. They are and their future direction. quite prepared to do it as far as their funding is As the member for Crows Nest concerned. They have said that. If they are mentioned, taxation is another vital prepared to do that, it is their business. If that component. Rearranging affairs to take the is what they want in order to get their taxation best advantage of the tax system, particularly and legals right so that they can formulate in view of what will happen in the next six their body as they see fit, that is entirely their months, I think is particularly important. I hope business. They have asked for this flexibility. the Minister can see the logic and the They have asked for this time span. As I said, pragmatic view in what we are putting forward some organisations are ready to go. There are in this amendment. the five organisations that are ready to go. In speaking to the Government Honourable members should not forget: when amendments the Minister talked about there assent is given to this Bill it will be more than being one group going through the change likely around 7 or 10 January. We have to go almost automatically as soon as assent is through Christmas and new year. One can given, another group doing it a month after imagine how much business can be done in and so on. What we are saying with this that time. What we want is to make sure. We amendment is that any organisation that could have said that it should be the end of wants to make a conscious decision to go February, when everyone is back at work and about changing the method of the business can be done. However, we have organisation will have some time on their side. said, "Okay, at their request we will make it six If they consider that it is better to take a little months." If they can do it at any time within bit of time and even forgo some levies, they that six months, that is their affair, and they will be given that opportunity. The are happy with that. Government's amendment, which we have not Dr PRENZLER: One Nation will be discussed and which we should not discuss supporting the coalition's amendment to until the Minister moves it, actually cuts off that clause 10. Certainly, we do agree that this will opportunity for some organisations. give greater flexibility to the peak industry I think it is extremely important that the bodies in the rural sector to make up their Minister take notice of what we have put into minds precisely when they have all their affairs the amendment. It has been thought through in order and they can transfer across to the very carefully. It is an amendment which I think new body. So we will certainly be supporting gives the level of flexibility that is so critical this amendment. when organisations are dealing with major Mr ROWELL: I wish to reiterate what the assets. I would like the Minister to reconsider member for Crows Nest had to say about the his position on this amendment. timing. Had this been a period in the year Mrs LIZ CUNNINGHAM: I seek when businesses were fully able to cope with clarification from either the mover of the the necessities of conducting the transfer of amendment or the Minister. It is my their business, it may have been easier. But understanding that, as the Bill stands at the there is little question that the period between moment, the major changes will occur one the end of December and into January is a 5570 Primary Industry Bodies Reform Bill 30 Nov 1999 period when Government departments are not The Minister has put this amendment open. It is very difficult. People want to go before the Committee now, but we cannot away with their children for the school holidays. even communicate with our constituents. I can Very often, lawyers, solicitors and other only go by what my constituents were telling professional people want to get away. And if me before I came down here. I agree with the that does happen, organisations such as Opposition's amendment—that we really need Canegrowers will not be able to go fully more time. The last thing they said to me was, through the process of deciding what is best "We need more time." So I ask the Minister to for the organisation. consider the Opposition's amendment. As I have said, some mill areas are Question—That Mr Cooper's amendment having difficulty with finishing the crushing of be agreed to—put; and the Committee their cane. I think it is appropriate for the divided— Minister to reconsider our proposal. Yes, we AYES, 41—Beanland, Black, Borbidge, Connor, did think about making it the end of February Cooper, E. Cunningham, Davidson, Elliott, Gamin, because, after January, there would be a full Goss, Grice, Healy, Hobbs, Horan, Kingston, Knuth, month of consultation among the professional Laming, Lester, Lingard, Littleproud, Malone, people that each organisation wants. But we Mitchell, Nelson, Paff, Pratt, Prenzler, Quinn, Rowell, also considered that there were some Santoro, Seeney, Sheldon, Simpson, Slack, organisations that required a flow-on effect Springborg, Stephan, Turner, Veivers, Watson, with this legislation from what their business Wellington. Tellers: Baumann, Hegarty practices are at the present time. When assent NOES, 41—Attwood, Beattie, Bligh, Boyle, Braddy, is given to this Bill, it would enable those Bredhauer, Briskey, Clark, J. Cunningham, D'Arcy, organisations to continue. There is very little Edmond, Elder, Fenlon, Foley, Fouras, Gibbs, Hamill, time actually required for them to have to wait Hayward, Hollis, Lavarch, Lucas, Mackenroth, for a mandated period, which was stipulated McGrady, Mickel, Mulherin, Musgrove, Nuttall, Palaszczuk, Pearce, Pitt, Reeves, Reynolds, Roberts, previously and then rejected, and now we Rose, Schwarten, Spence, Struthers, Welford, Wells. have gone back to some other proposals. So it Tellers: Sullivan, Purcell has been a real mixed bag of where we are really going with this particular amendment. The numbers being equal, the Temporary Chairman cast her vote with the Noes. I believe that the flexibility—the fact that it can be done from day one after assent is Resolved in the negative. given to six months later—will determine Mr PALASZCZUK: I move the following exactly what organisations want to do. And if amendment— they do not have the capacity to attract levies "At page 13, lines 1 and 2— because of this, so be it. We were not the ones who introduced this legislation. We are omit, insert— trying to rectify a difficult situation for at least 'Meaning of "transfer day" one major organisation that has enormous '10.(1) For the COD, its secondary bodies assets. And the implications, as I have said, in and its replacement corporation, the relation to taxation and all those types of "transfer day" is the day after the date of things really have to be considered. assent. So once again, I am asking the Minister to reconsider our proposal, because I believe it '(2) For the Queensland Commercial is positive. It certainly has some incentive to Fishermen's Organisation, its secondary ensure, if there is a requirement to collect bodies and its replacement corporation, levies, that those organisations do not go the the "transfer day" is the later of the full time. However, it does provide flexibility for following days— those who want to collect the levies the day (a) the day after the date of assent; after assent to do exactly that. (b) 10 December 1999. Mr KNUTH: I agree with the member for '(3) Otherwise, the "transfer day" is the Hinchinbrook. As north Queenslanders, the day that is 1 month after the date of member for Whitsunday and I are having assent.'.". trouble at the moment with communications between here and north Queensland. We This is an important amendment which have a communication blackout. Some extends the date for the transfer of the assets labourer or a farmer has perhaps ploughed and liabilities from three of the statutory through a fibre-optic cable. I do not know what representative bodies to their replacement has happened, but I cannot even get to my bodies by one month. As presently drafted, advisory bodies to let them know about the the asset transfer arrangements were to occur Minister's amendments. the day after the commencement of the 30 Nov 1999 Primary Industry Bodies Reform Bill 5571 legislation, in other words, the day after grower has recently or even ever supplied assent. cane and paid levies and contributed to In view of the complexity of their internal the assets of the district that they will arrangements, especially in regard to the participate in the distribution of. property trust arrangements relating to the Such a fundamental issue should not assets of mill supplier committees and district be decided by Government without canegrowers executives, Canegrowers has consultation. That should be a matter for sought additional time for the transfer process. the replacement company and its I consider this to be a reasonable request, and members, the growers, all growers, to an extension of one calendar month after determine. assent is proposed. This will also apply to the Of further concern is that these Queensland Dairyfarmers Organisation and distribution entitlements will result in the the Queensland Pork Producers, who also CANEGROWERS Organisation and its need additional time. replacement corporation being unable to By contrast, both the Queensland maintain tax exempt status that has been Commercial Fishermen's Organisation and the applicable for the last 75 years. Queensland Fruit and Vegetable Growers are ready to transfer the day after assent. The One of the essential requirements for QCFO has asked for a specific date, 10 tax exempt status is that the body must December, to be specified, but this will only not be able to make distributions to apply if the Bill is assented to by then. members whether on winding up or Otherwise, the day after assent will apply for it otherwise. Your amendments would seem as well. to contravene this principle and this places seriously at risk the Organisation's Mr COOPER: The Minister is correct in tax exempt status. what he says about the QCFO. We recognise that. There are two organisations that are These beneficiary entitlement happy to get cracking and there are three that provisions should be withdrawn. They can are not so happy. I realise that the Minister and will be considered by the has received a letter from Canegrowers dated Organisation and its grower members as today's date. I would like to read that letter into part of the review that the Organisation the record because I believe it emphasises the has committed itself to undertake." concerns of Canegrowers. The letter states— The Government's amendment is the third "CANEGROWERS was surprised and amendment which has been put forward; in disappointed that parliamentary debate fact, it is the second in five days. It is starting on the Reform Bill was commenced to confuse the issue. I realise that the Minister without notice to CANEGROWERS is trying to come to grips with the concerns of particularly having regard to your recent the people involved, but this should have been letter of 25 November 1999. achieved through consultation. The fact that we are being presented with constantly The latest amendments introduced, changing starting dates for this Bill emphasises particularly those relating to s.46 and the the coalition's problem. treatment of assets have never been considered by CANEGROWERS. The coalition has moved an amendment which we believe is preferable to that of the CANEGROWERS has already Government. The House has divided on the conveyed to you its position in relation to coalition's amendment. The result is on the timing and the treatment of assets and record. need not restate them again. Many districts have also communicated with you I gave some consideration to this on these points recently in support of amendment over lunch. The Government is CANEGROWERS' concerns. proposing three different start-up times for the five primary producer groups. This amendment Your amendments do however raise proposes one start-up time for the COD, one issues that have never been considered for the Queensland Commercial Fishermen's by CANEGROWERS. These include the Organisation and one for the remaining three right of the minimum number of growers bodies. I am pleased that the Government has to order replacement of trustee or transfer listened to the submissions made by the COD of assets to new corporations. Of and the QCFO. I hope what has been agreed particular concern however is the capacity can be achieved in reality. for growers to order distribution of assets to growers in equal shares no matter how Extending the transfer day by one month large or small and no matter whether the from the date of assent for the remaining three 5572 Primary Industry Bodies Reform Bill 30 Nov 1999 producer groups—in particular Canegrowers— We have woven that into an amendment may not be sufficient. The coalition doubts that that we moved, which unfortunately was it will be sufficient, and that is why we tried to rejected. Really, I think what the member for get the Minister to extend it. This Bill will Crows Nest said about the period from probably receive assent by mid-December. Christmas on is very relevant because, during The intervening period is mostly taken up with that time, there is not a lot of activity. Those preparations for Christmas and new year. The legal people who have families and who want provisions could probably commence from 24 to take three weeks off during that period of December— the year will not be available or they will have Mr Palaszczuk: The Public Service have to rush into the office for a day to deal with the one week off. issues that are important to whichever organisation that we are talking about. Mr COOPER: We all know that things So I am really disappointed that the come to a halt. Sometimes one feels like Minister has not accepted the amendment, saying, "Thank heavens for that." Some because it is so essential for the preservation people look forward to a bit of a break. of the assets acquired through the levies that However, the people involved with this have been collected over a long period—levies legislation are being forced to do business in that have been used very frugally to purchase that time frame. When the period covers buildings and for the general workings and the Christmas and new year it makes their job liquidity for those organisations. In the time extremely difficult. At this time of year it is really that has been provided, they are not going to incorrect to say that it is being extended by a be able to arrange their affairs in a manner month because one has to have consideration that they feel comfortable with and in a for the public holidays involved. manner that they can test, nor will they have I believe I have made my point. As far as time to gain and to consider a variety of the Opposition is concerned, this does not go opinions on their options. far enough. The amendment does not deal Amendment agreed to. with what the organisations want. For the life of me, I cannot understand why the Minister has Clause 10, as amended, agreed to. not taken the concerns of the producers into Clause 11— consideration. There has been a lack of Mr PALASZCZUK (3.21 p.m.): I move the consultation. Each amendment to the following amendment— legislation leads to more instability. The producers are in a state of confusion and are "At page 13, line 10, after 'for the somewhat angry, and who can blame them? COD'— Mr ROWELL: I would like to reiterate quite insert— a bit of what was said by the member for 'or a local association'." Crows Nest. It is important to recognise that This is another amendment that is primary producers deal with other designed to facilitate the restructuring of the organisations as well as with Government QFVG local producer associations, which I departments. It takes quite an amount of time have outlined. to rearrange one's affairs. One needs opinions from many sources. I realise that the Minister Amendment agreed to. is more interested in engaging in conversation Clause 11, as amended agreed to. with the Minister for Women's Policy— Clauses 12 and 13, as read, agreed to. Ms Spence: I was discussing the Clause 14— legislation. Mr COOPER (3.21 p.m.): This clause Mr ROWELL: That's fine. I am sure you enables the director-general of the Department are interested. It is important that one gets a of Primary Industries to make an application in variety of opinions on the way in which one the Supreme Court to wind up a producer should handle certain issues, particularly when body or a secondary body if, prior to the so much money is involved in the transfer of transfer day, the producer body has not assets. One is not only dealing with appointed its replacement corporation or given Government departments; one is dealing with the Minister notice of the appointment of its people who have a wide range of expertise. replacement corporation. The power granted The coalition has moved an amendment which to the chief executive to make such an is workable. It will not disadvantage the application is an extremely powerful one, one Government. It allows the groups involved the that should be exercised only as a matter of right to raise the necessary levies. last resort. 30 Nov 1999 Primary Industry Bodies Reform Bill 5573

The five primary producer bodies, as well Mr PALASZCZUK: If the member looks at as the various secondary bodies, have subsection (2) he might find what he is after. received a totally inadequate period of time in I move the following amendment— which to prepare themselves for the full implications of this legislation. As I have said "At page 15, line 15, 'repeal'— before, right now lawyers and accountants are omit, insert— still trying to come to grips with the 'expiry'. ramifications of the Bill, as it may or may not eventuate by the time that it is eventually 12. Clause 14— passed by this Chamber. At page 15, line 17, 'been repealed'— In these circumstance, I think that to give omit, insert— a draconian power of this type to the chief executive of a Government department to 'expired'." make a Supreme Court application in the These are two minor amendments. The event that an artificial time scale is not met is first substitutes the word "expiry" for "repeal" potentially very, very unfair. The Minister needs and the second substitutes "expired" for to explain to the Chamber and to the wider "being repealed" when referring to the Primary community in what circumstances the winding- Producers' Organisation and Marketing Act up power will be activated. By that I mean: will and the Fruit Marketing Organisation Act in it be the policy of Government that, as soon as subsection (3). the trigger in clause 14 is activated, the chief These amendments have been executive will make an application to wind recommended by Parliamentary Counsel them up? Will notice be given before such an because, in a strict legal sense, these Acts are application is made? Will there be guidelines to expire rather than to be repealed. as to the use of that power? Mr ROWELL: The Minister referred me to In short, I would like the Minister to subsection (2). It states— explain to this Parliament and put on the record the purpose of the clause and how it is "The Supreme Court may, on the to be used so that he can assure members of application of the chief executive, order this place and those outside in the the winding up of the producer body or a organisations that the clause will not be used secondary body of the producer body." in a mechanical and unfair manner. The Where is the ministerial discretion there? I Opposition wants that assurance. thought that the discretion lay with the Mr PALASZCZUK: I can give the Supreme Court to do it, not with the Minister. Committee the assurance that the honourable Am I correct or not? Could the Minister member for Crows Nest is after. My respond to that, please? understanding is that each of the five producer Amendments agreed to. bodies has already a replacement body ready to take over, anyway. Clause 14, as amended, agreed to. Mr COOPER: We are concerned about a Clause 15, as read, agreed to. draconian power given to the director-general Clause 16— of the DPI that, if these organisations cannot Mr PALASZCZUK (3.27 p.m.): I move the meet this artificial time frame, it will just be an following amendment— automatic approach to the Supreme Court to wind them up, or will they be given some "At page 16, line 27, after 'the leeway? Where are the guidelines? What is COD'— the process that the Minister is going to follow? insert— Can I have an assurance that, in these 'or a local association'." circumstances, the Minister is not going to just use a draconian measure—a sledgehammer— This amendment is another of those to crack a nut? We believe that it is simply not required to implement the agreed restructuring necessary. arrangements involving the QFVG local Mr PALASZCZUK: Once again, I can producer associations. reassure the honourable member for Crows Amendment agreed to. Nest that that is not the case. It is basically a Clause 16, as amended, agreed to. discretionary power that is there just in case. Clauses 17 to 26, as read, agreed to. Mr ROWELL: Where does it talk about a discretionary power in the Minister? Could the Clause 27— Minister point that out to me? Maybe I have Mr PALASZCZUK (3.27 p.m.): I move the not read it closely enough. following amendment— 5574 Primary Industry Bodies Reform Bill 30 Nov 1999

"At page 21, line 6, after 'the COD'— Amendment No. 17 makes some insert— changes to the existing wording of clause 39(1) as recommended by the Office of 'or a local association'." Parliamentary Counsel. In order to give effect This amendment is identical to the to the transfer of assets from each of the five previous amendment, except that this one statutory producer representatives bodies to facilitates the incorporation of a local producer their respective replacement non-statutory association as a cooperative under the corporate bodies, the assets and liabilities of Cooperatives Act. the subsidiary bodies within each of them have Amendment agreed to. to be accommodated. These assets and liabilities need to be under the control of the Clause 27, as amended, agreed to. relevant statutory producer body in a legal Clauses 28 to 37, as read, agreed to. sense before they can transfer across to the Omission of heading— replacement body. That is what is happening here. Mr PALASZCZUK (3.28): I move the following amendment— In the case of the assets and liabilities of the mill supplier committees and the district "At page 25, line 13— canegrower executives within Canegrowers, omit." these are to be then handled in a particular way after the transfer in order to protect and This amendment should be considered preserve local grower control. I will describe with the following one as they deal with the how this is to be achieved when we consider same thing. They omit existing subdivision amendment No. 24. headings to effect a realignment of the subdivisions of Part 3, Division 1, of the Bill Amendments No. 18 and No. 19 cancel consequent on the introduction of trust the transfer of the assets and liabilities to the requirements for the assets and liabilities of QFVG local producer association assets mill supplier committees and district because these are to be handled in a canegrowers executives. particular way, as I have already described. Amendment agreed to. This means that subclauses (2) and (3) in clause 39 are now redundant and can be Clause 38, as read, agreed to. removed. Omission of heading— Amendments agreed to. Mr PALASZCZUK (3.29 p.m.): I move the Clause 39, as amended, agreed to. following amendment— Clauses 40 to 43— "At page 26, line 1— Mr PALASZCZUK (3.31 p.m.): I move the omit." following amendment— This amendment is basically the same as "At page 26, line 26 to page 27, line the previous amendment, which I have already 24— explained. omit." Amendment agreed to. This amendment has the effect of Clause 39— deleting clauses 40 through to and including Mr PALASZCZUK (3.29 p.m.): I move the 43, which I have just done. Clause 40 is no following amendments— longer necessary following the amendment to clause 39, which has just been discussed. "At page 26, line 6— Clauses 41, 42 and 43 dealt with the previous omit, insert— way in which QFVG local producer associations '(a) assets and liabilities of, or held or were to be handled. In view of the new incurred by, each secondary body of arrangements for these bodies agreed with the producer body;'. QFVG, which I have already outlined, these clauses are now redundant and need to be At page 26, line 18, after 'anyone removed from the Bill. else'— Clauses 40 to 43, negatived. insert— Insertion of heading— ', other than a local association,'. Mr PALASZCZUK (3.32 p.m.): I move the At page 26, lines 20 to 23— following amendment— omit." "At page 28, after line 1— 30 Nov 1999 Primary Industry Bodies Reform Bill 5575

insert— (c) under section 45, the assets are 'Subdivision 1—Preliminary'." transferred to the organisation's replacement corporation. Amendment agreed to. '(2) In this section— Clause 44, as read, agreed to. "assets", of a secondary body, means the Insertion of heading— following assets— Mr PALASZCZUK (3.32 p.m.): I move the (a) assets of, or held by, the secondary following amendment— body immediately before the "At page 28, after line 5— section 39 transfer; insert— (b) assets held immediately before the 'Subdivision 2—Transfer'." section 39 transfer by— Amendment agreed to. (i) the organisation's State council for, or for the objects or purposes of, the Clause 45— secondary body; and Mr PALASZCZUK (3.33 p.m.): I move the (ii) by the secondary body for, or for the following amendment— objects or purposes of, the "At page 28, line 7, 'section 46'— organisation or another secondary omit, insert— body of the organisation. 'subdivision 3'." 'Meaning of "eligible grower" for sdiv 3 This is a minor amendment to correct a '46A. In this subdivision, an "eligible cross-reference. Clause 45 makes a reference grower" is a person who, immediately to section 46, but it is proposed that the before the transfer day, is, under the subject matter of what is now clause 46 be PPO&M Act, section 30,2 a grower for— replaced by amended trust arrangements (a) if the secondary body is a mill relating to the subsidiaries of Canegrowers. supplier's committee—the mill or mills These will be set out in new sections 46 and the secondary body represents; or 46A through to 46D, which will form a new (b) if the secondary body is a district subdivision 3 in this part of the Bill. The cane growers' executive—the mill or amendment substitutes reference to the new mills in the district the secondary subdivision. I will outline these proposed new body represents. arrangements in the discussion to follow on amendment No. 24. 'Purpose trust for eligible growers Amendment agreed to. '46B.(1) The assets mentioned in section Clause 45, as amended, agreed to. 46 (the "trust property") are taken to be held by the replacement corporation (the Clause 46— "trustee") on trust. Mr PALASZCZUK (3.34 p.m.): I move the '(2) The asset is taken to be held by the following amendment— trustee on trust for the general benefit of "At page 28, lines 10 to 16— all eligible growers. omit, insert— '(3) The trust must not be carried on for the profit or gain of any individual eligible 'Subdivision 3—Trust for assets of grower. secondary body of Queensland Cane Growers' Organisation 'Reimbursement for transferred liabilities 'Application of sdiv 3 '46C.(1) This section applies if— '46.(1) This subdivision applies if— (a) immediately before the section 39 (a) the producer body is the Queensland transfer, the secondary body had, or Cane Growers' Organisation (the had incurred, a liability; and "organisation"); and (b) under sections 39 and 45, the liability (b) assets of a secondary body of the is transferred to the trustee. organisation, other than its State '(2) The Trusts Act 1973, section 72,3 council, are, or are taken to have applies to the trust property as if the been, transferred to the organisation liability were an expense reasonably under section 39(1) (the "section 39 incurred by the trustee in or in relation to transfer"); and the execution of the trust or trust powers. 5576 Primary Industry Bodies Reform Bill 30 Nov 1999

'Change of trustee or termination of trust trust by Canegrowers are likewise to be held in '46D.(1) The required number of eligible trust by its replacement body, which is to be a growers may, by signed notice to the company, along with any associated liabilities. trustee— However, it has to be recognised that not all of the locally funded assets are land and (a) change the trustee of the trust; or buildings. Some mill supplier committees and (b) terminate the trust and direct the district executives hold substantial cash trustee to transfer the trust property reserves and other assets not covered by the to a stated corporation. trust arrangements, such as computer '(2) However, a notice may be given under equipment, vehicles and so on, and some subsection (1)(b) only if the corporation's employ their own staff. constitution has provisions to the effect The Bill in its present form provides that that— those other assets would become assets of (a) the corporation's principal purpose is Canegrowers immediately before the transfer to act for the general benefit of all day and then transferred to the replacement eligible growers; and body, which is to be a company limited by guarantee. Canegrowers has proposed in the (b) the corporation must not act for the rules of the replacement company that those profit or gain of any individual eligible other assets will, once transferred to the grower. replacement company, be held for and on '(3) The notice may be made up of behalf of equivalent mill supplier committees different documents to the same effect and district executive district subsidiaries to be that, together, are signed by the required established by the replacement company. number of eligible growers. However, I consider that this is unlikely to '(4) In this section— satisfy the increasing number of canegrowers "required number", of eligible growers, who are now starting to press for more means a number of eligible growers that legislative certainty as to the future of those is at least 75% of all the eligible growers. assets. I believe that these concerns need to be properly addressed. Accordingly, 'Subdivision 4—Provisions to facilitate amendments have been prepared by the transfer'. Office of Parliamentary Counsel that 2 PPO&M Act, section 30 (Cane to be a specifically deal with assets held by mill commodity) supplier committees and district canegrower executives. 3 Trusts Act 1973, section 72 (Reimbursement of trustee out of trust These amendments, which take the form property)." of the new clauses now being considered, provide for all assets funded at mill supplier This is an important amendment and has and district executive level to be formally held the effect of implementing arrangements to in trust by the Canegrowers replacement safeguard the assets and liabilities funded by company. They will be held on behalf of the growers at the mill supplier committee and growers in the particular mill area in the case of district executive levels within Canegrowers. To mill supplier committee assets and on behalf understand what is proposed here, it is first of the growers in the mill areas that make up necessary to understand the present situation the district canegrower executive in the case of with the subsidiaries within the three-tier district executive assets. These provisions are Canegrowers structure. more substantive than what was proposed in At present, the mill supplier committees the replacement company rules. and district executives are not bodies To enshrine grower control of those locally corporate, which means that they cannot hold funded assets, the amendments also allow the property in their own names. Because of this, relevant growers to change or terminate the the Primary Producers' Organisation and trust arrangements based on a 75% vote in Marketing Act 1926 provides that the the case of each particular trust. This would, Canegrowers' council, which is legally a body for example, allow growers at mill level in any corporate, has to hold on trust for the mill one of the mill areas to transfer the assets to a supplier committees and district executives any local grower-owned and controlled company or land and improvements such as buildings a cooperative at some future time if they so funded by the mill supplier committees and decide. That will be their decision. It will not be district executives. the Government's decision and it will not be a Turning now to the Bill as first drafted, it decision that Canegrowers' head office can required that those assets currently held in make either. 30 Nov 1999 Primary Industry Bodies Reform Bill 5577

It is also proposed by an amendment to Canegrowers Council to the proposed non- be moved later in the Bill that this right to local statutory replacement corporation. Among the ownership will extend beyond the five-year life assets that will be transferred are those assets, of the legislation. This means that growers at both physical and monetary, of the various mill and district levels can make decisions local mill suppliers committees and district about the future ownership and control of executives. Currently, those assets are held in locally funded assets in their own good time. a trust-like relationship by Canegrowers for That particular matter is the subject of these secondary bodies. The object of the amendment No. 40, which I will deal with in latest version of this amendment seems to be due course. to ensure that the assets of these secondary Mr COOPER: Again, as the Minister is bodies will be held in trust by the replacement only too aware, the Chamber is presented with corporation. The Minister is nodding. The latest a set of redrafted amendments that have version of this amendment is a significant been necessitated by grower feedback. I improvement on the one we saw last Friday. It believe that that information should have been is now clear that the secondary body's assets obtained at the outset. are to be held in trust for the general benefit of all eligible growers. I do not wish to put too fine a point on it, Mr Palaszczuk: The Government but I have been in the Minister's position and I consulted. have introduced major legislation that made fundamental changes, as this Bill proposes to Mr COOPER: Over the past few days? do. This Bill will change the course of five We have been generating most of these primary producer bodies. It would have been a points for the Minister, because we have been good idea if the Minister had travelled the doing the consulting. I can assure the Minister State, taking various people with him to talk to of that. those at the grassroots. That way, a lot of the Mr Palaszczuk interjected. problems and concerns that have arisen could Mr COOPER: Hopefully, the Minister is have been hammered out in the initial stages. getting better and has learnt from all of this; I used to do that with legislation involving that would save a lot of mucking around for police powers, the Crime Commission, the Parliament. Corrective Services and so on. I even took Opposition members with me. I also took In addition, it is now clear that the trust people who could speak for and against draft must not be carried on for the profit or gain of legislation, so that we could get the bugs out any individual eligible grower. This is a of the legislation in the first place. That was not potentially important improvement. Likewise, I a perfect system, but it was a lot better than am pleased that in proposed clause 46D a this. trust can be terminated and the trust moneys transferred to a replacement corporation only if As I said, this is the third set of that corporation's principal purpose is to act for amendments. There have been two changes the general benefit of all eligible growers and in the past five days. This is getting very not for the profit or gain of any individual confusing for everyone. We certainly support in eligible grower. I was going to raise a number principle the non-statutory canegrower of queries about this matter. As far as we are organisation holding the assets of local mill concerned, this change overcomes a series of suppliers committees and district executives in concerns that the Opposition had. Some trust for the benefit of local growers. That is issues still need to be addressed even with something that we believe they should have. respect to the latest recast amendment. I wish Over the past couple of weeks, the status of to go through those with the Minister now. these assets has been the subject of much First and foremost are the tax implications debate in various parts of the State. This is just for the replacement corporation as well as for one example of the unnecessary concern that the secondary bodies concerned—both of the Bill has generated. There is no doubt that those groups. I am aware that there are there is strong local ownership and connection concerns that the wording of these with the various assets of local bodies that amendments could imperil certain taxation have been built up over many years through benefits which Canegrowers currently enjoys. the effort and dedication of local canefarmers. That was the reason that I quoted a letter We recognise that and strongly support earlier. It has been suggested to me that the legislation which enshrines continued local distribution entitlements enshrined in this ownership and stewardship of these assets. amendment could result in Canegrowers and As I understand it, the Bill in its current the replacement corporation possibly losing form transfers the assets of the Queensland the tax exempt status which it has had for 75 5578 Primary Industry Bodies Reform Bill 30 Nov 1999 years. We will need some clarification of that. It appreciate it if the Minister could address this is an essential requirement for tax exempt issue also and indicate whether there has status that the body must not be able to make been appropriate consultation with sugar distributions to members whether on winding industry secondary bodies about the practical up or otherwise. The operation of this Bill in implications of these amendments. We had a general and this amendment in particular look at these amendments over the luncheon could seriously place the organisation's tax recess. We do not believe that they have been exempt status at risk. I ask the Minister addressed adequately. We ask the Minister to whether the taxation implications of these make statements to the Parliament clarifying amendments have been considered by the the three issues that I have just raised. department and the legal advisers and, if so, Mr PALASZCZUK: The present what are they? We need to know whether amendments have been drafted to modify the there are any implications at all. I seek an amendments circulated previously that assurance from the Minister that these enabled individuals to access the trust property amendments will not trigger an unfavourable and assets. Had the previous amendments taxation treatment for any of the relevant been allowed to stand, there was a possibility sugar industry bodies. that the trust might have been exposed to The second issue that I would like the income tax. On advice, the trust has now been Minister to address concerns the implication of converted to what is known as a purpose trust, proposed section 46D. This clause allows a which holds the trust's property not for change of trustee or a termination of trust. We individual benefit but for the purposes of the have no problem with the proposition that 75% separate mill level and district-level bodies. or more of the eligible growers should be able Basically, if necessary, if there are any to direct a change in the trustee or a transfer problems—and we do not believe that there of the trust property to a new corporation. will be—the Government will certainly support There is no problem with that. The issue that approaches to the Taxation Commissioner for needs to be addressed is the future of these favourable rulings. assets, especially the physical assets, of the secondary bodies. We are keen to ensure that In relation to the other issues raised by local ownership and stewardship of those the honourable member, we have done assets continues and we certainly would not everything we can to ensure that the assets like to see a situation arise whereby the assets will be used for the benefit of local growers. were transferred to a corporation and then, at Once the assets are transferred, we can do no a later point, disposed of without the local more, because they will be out of the hands of canefarmers being consulted. There has to be Government. an assurance that local canegrowers in those Mr ROWELL: I have some concerns. I circumstances will be consulted. know what the Minister is intending to do. I I appreciate that recast proposed section think this is in the interests of the Canegrowers 46D is a major improvement on proposed organisation, for which levies are a large section 46C, but I assume that the source of revenue. Over time it has requirements spelt out in proposed section accumulated assets such as cars, computers 46D(2) would apply only to when a company is and so on. I can only hope that what the first incorporated, and the objection to this Minister is saying is right. His last comment subsection could not continue to be imposed was of concern to me. Once they are once the company commences operations. I transferred over, it is out of the hands of the ask the Minister to clarify that point. Government and its responsibility for statutory The final issue—and it is a practical bodies. That is the reason that we wanted to one—concerns the accounts of secondary make sure that they had sufficient time to bodies. It has been suggested to me that the implement whatever strategy was necessary. definition of "assets" in proposed section 46 In many cases, those funds have been hard includes not just buildings, vehicles, property won. Irrespective of seasonal conditions, for and real estate but also bank accounts. I ask example, extremely wet conditions, or very low the Minister: does it include banks accounts sugar prices, those levies have continued. also? The concern is that, by requiring all Canegrowers have been mindful that it was assets, including bank accounts, held by necessary to create some type of assets that secondary bodies at the moment be held in they could use in order to continue their trust by the replacement corporation, the effect business when times were not good. All of that of these amendments might be that problems has been done. are created for the day-to-day administration of The Minister's comments about purpose the affairs of secondary bodies. I would trusts sound fine. I hope it works. But what if it 30 Nov 1999 Primary Industry Bodies Reform Bill 5579 does not? For example, what if they transfer Minister. Okay, he has brought in the their assets into a purpose trust that does not legislation. He rushed it in after a consultation prove successful? They have been required to period of a few months with the heads of the do this within a short period. Will they be organisation, but the grassroots out there do denied the opportunity to go elsewhere or to not really know what this legislation is all about. form a different type of trust or facility that will We have not had the opportunity to go accommodate the situation? through it in any great detail. It is only the Had they had more time and been able to canegrowing members of Parliament and go over it thoroughly, it is highly likely that they certainly the organisation itself who have had may not have come up with the first decision much to do with the whole process of deciding that they made. Because of the rush that has which is the best option. been imposed upon them by the legislation I know that, during the course of the that the Minister has brought in and the Sugar Industry Bill debate a lot of issues were unwillingness to go back to the six-month raised with the organisations, both the ACFA situation if that was required—the law is and Canegrowers. I know that Canegrowers in complicated and very often it is necessary to particular went off on a tangent; they were not make sure that the waters are tested by a worried about the Sugar Industry Bill. I do not number of opinions. As we have said, those know whether that was a tactical decision, and opinions may not necessarily be available in I am not going to suggest that it was. They the time that has been allocated to test them had to deal with the Primary Producers' through the January period. Organisation and Marketing Act at the same time that they were dealing with a lot of I am extremely concerned—and I think changes that were going on within the sugar the Canegrowers are, too—because these industry and the Sugar Industry Bill that amendments were only circulated on Friday passed through Parliament. I can only hope—I after lunch. So it has only been over the would like a commitment from the Minister weekend that we have had the opportunity to and, unfortunately, I do not know whether the really look at them and consider them. If the commitment is going to be the answer that we Minister had allowed us the six-month period, need if things do go wrong—that there would they may not have gone down the track that be some changes. I am pretty sure that the they are going to be forced to and they would Minister probably would give that commitment, have had the necessary time to test the water but it might be too late to give the commitment as far as what the structure of this particular because the structure will already be formed. company is going to be. Taxation law is extremely complex and it is difficult to deal with Then there is the stamp duty aspect. in some cases. Sometimes a range of What happens with stamp duty when those expertise is needed, which will probably be organisations transfer from one type of trust to difficult to muster during this next month of the another? Is stamp duty required there? That is required time for the Canegrowers to actually something on which I would like a response, get together whatever form of trust they are too. We have the 75% consent by the group going to put their assets into. of growers who are directly involved in a mill supply area. That is fine; that is great. But is I just hope that what we are doing does any stamp duty going to be imposed when not end up in a situation where all those hard they change that trust or if there is a earned levies that have been paid by growers requirement to change that trust because this over some pretty difficult times end up being legislation has forced upon them a form of defrayed because we have been in a rush, trust that is not going to be totally suitable for because legislation for whatever reason has to their requirements? be passed in a very short period when we Mr PALASZCZUK: Just briefly, let me just could have had the option to extend that time reassure the Committee that the law of trust without any detrimental effect to that provides a large measure of accountability. organisation. I am fairly certain that, if it was to Those laws are the best protection that local forgo a few levies over a short period to ensure growers have for their assets, and I would that the right structure of that trust was put in assume that growers would not transfer to place, it would have done so. I am not another body if they were concerned about speaking necessarily for the organisation; I am their own interests. In response to a number of speaking for myself as a canegrower. I would other issues that the honourable member has have pursued that line of action. raised, I believe that this Bill basically returns I am not into rushing into things that could the control of the representative bodies back have a detrimental effect on me in the long to the grassroots where it really belongs, and term. We gave the six-months option to the getting it back to the grassroots will certainly 5580 Primary Industry Bodies Reform Bill 30 Nov 1999 make those grower bodies far more "At page 29, line 24, 'section 46.'— accountable than they are at present. Stamp omit, insert— duty has to be considered on its merits at the time that the transactions occur. The 'section 46B.'." honourable member would understand that as This is a consequential amendment to the well. inclusion of the new sections 46A to 46D, Mr COOPER: I know it might be causing a which I dealt with in the previous amendment. bit of frustration, but this is a major Amendment agreed to. amendment; the Government is intending to Clause 48, as amended, agreed to. replace a full section. Further to the question that I asked before, when it comes to assets, Clause 49, as read, agreed to. we are not dealing with just buildings, vehicles Clause 50— and property—real estate—but also bank Mr PALASZCZUK (3.50 p.m.): I move the accounts. Because of the fact that those bank following amendment— accounts are also held by secondary bodies at the moment and are then to be held in trust by "At page 30, line 7, after 'may be the replacement corporation, the effect of taken'— these amendments might actually create insert— problems for the day-to-day administration of 'by or'." the affairs of those secondary bodies. What I want now is an assurance that those bodies, This is a minor amendment and simply particularly the canegrowers and the sugar inserts several words inadvertently omitted industry, have been fully, adequately and from the original Bill. appropriately consulted as to the effect of Amendment agreed to. these particular amendments. Clause 50, as amended, agreed to. Mr PALASZCZUK: The Canegrowers Clauses 51 to 55, as read, agreed to. organisation has assured me that it will shortly be conducting its own review to determine the Clauses 56— industry view as to its future structure. The Mr COOPER (4 p.m.): Clause 56 and Government will not and should not be making clause 59 contain provisions that deprive this decision. These amendments will not current officers of primary producer bodies and impede this process in any way. They will secondary bodies from seeking compensation quickly introduce the non-statutory structure if they lose their jobs as a result of the which will make the organisation more changes mandated by this Bill. The responsive to the wishes of its members. The Explanatory Notes circulated with this Bill make grassroots consultation will occur and this Bill the following observation— does not need to be delayed for it to occur at "The Bill provides, in clauses 55 and a pace which industry can determine. 58, that each person who, immediately Mr Cooper: Have they been adequately, before the day of transfer to a new non- properly, appropriately consulted? statutory legal entity, is an officer of a Mr PALASZCZUK: I will be quite honest producer body and secondary body goes with the honourable member. We have been out of office without any compensation consulting with the five bodies consistently, being payable. continuously on a regular basis. In the past Such a provision could be said to be few days it has almost been on an hourly in breach of section 4(2)(a) of the basis. That is why we have a further set of Legislative Standards Act 1992—whether amendments brought into the Chamber—to the Bill has sufficient regard to the rights accede to the wishes of those grower bodies. and liberties of individuals, because the What more can we do in relation to provision deprives the persons concerned consultation when at the last moment we have of payment for services. The Bill therefore introduced very important amendments to this has a potentially adverse effect on the piece of legislation to satisfy the needs of income of those individuals. those grower bodies? In that regard it should be noted that Amendment agreed to. in this case the producer bodies are not Clause 46, as amended, agreed to. being abolished but converted to non- Clause 47, as read, agreed to. statutory legal entities. Under those circumstances, there is the opportunity Clause 48— and likelihood that the officers of the Mr PALASZCZUK (3.58 p.m.): I move the producer bodies will become officers of following amendment— the new legal entity." 30 Nov 1999 Primary Industry Bodies Reform Bill 5581

The Explanatory Notes then claim that the only continuity of service. I refer honourable compensation that could be claimed would be members to page 59 of the Bill. The Schedule compensation for meetings that the officers states— would otherwise be able to attend. " 'officer', of a secondary body, includes a I would like the Minister to specifically deal person who is a member, however called, with the issue of whether these clauses will of the secondary body's management have any effect on employees of primary committee or other body that governs its producer bodies. The term "officer" is defined affairs." in the Dictionary of this Bill in a manner that only has relevance to secondary bodies. Mr COOPER: I thank the Minister for that assurance. There is nothing mischievous I am concerned that, because of the way that about it at all, especially when one is trying to this clause has been drafted, employees could gain assurances for employees who could be be inadvertently affected. I would like to know affected by legislation. It is our job to see that what advice the Minister has about this matter. they are protected and defended. That is all I believe that any provision that deprives a we are doing. The Minister has clarified the person of compensation when they are circumstances in clause 51. The Minister's dismissed is a serious matter. In the context of assurance is clear. I believe the Assembly can this Bill and the fact that it has been rushed accept that. through pretty rapidly, it is even more serious. No explanation has been advanced as to why Clause 56, as read, agreed to. this unfair provision has been inserted. In Clause 57, as read, agreed to. these circumstances the Government needs to be sure that it will not operate in a manifestly Clause 58— unfair and inappropriate manner. Can the Mr PALASZCZUK (4.05 p.m.): I move the Minister provide some assurances on that following amendment— issue? "At page 33, lines 10 and 11, from Mr PALASZCZUK: This clause does not 'other than'— refer to the employees of a statutory producer omit, insert— body. Employees are covered by clause 51. Clause 56 refers to a situation with the elected 'other than— office bearers of a statutory producer body that (a) an asset held by the corporation on is being replaced by a corporation without trust under section 46B; or share capital, such as an incorporated association, a company limited by guarantee (b) a liability mentioned in 46C(1) to the or a cooperative. Clause 59 deals with a similar extent it can, under the Trusts Act situation in the case where the replacement 1973, section 72, be reimbursed by body is a company with share capital. Where the corporation from an asset held by the clause talks about persons who hold office the corporation on trust under of a producer body, it means the elected office section 46C(2).4'. holders of each of those bodies, for example, 4 Section 46B (Purpose trust for eligible the State councillors of Canegrowers or the growers) members of the board of QFVG. They will Section 46C (Reimbursement for cease to hold elected office on the transfer transferred liabilities) day for the particular body, because, once transfer occurs, there is no longer any Trusts Act 1973, section 72 organisation in existence for them to be office (Reimbursement of trustee out of trust bearers of. property)." Let me stress that this provision does not This is a technical amendment. It amends apply to employees. It would be grossly the clause that sets out some definitions of mischievous if anyone suggested that it did, terms that are used in Part 5 of the Bill which because clause 51 deals with employees. That deals with the transfer of assets and liabilities clause makes it crystal clear that employees of from a statutory producer representative body a producer body become employees of the to its replacement body in the situation where respective replacement body and they do so the replacement body is either a company or a with all their employee rights intact. Of cooperative with share capital. particular note is subsection (2) which states Amendment agreed to. quite specifically that this does not constitute a redundancy or retrenchment of employment Clause 58, as amended, agreed to. and that it does not interrupt an employee's Clauses 59 and 60, as read, agreed to. 5582 Primary Industry Bodies Reform Bill 30 Nov 1999

Clause 61— the two Acts referred to will expire rather than Mr PALASZCZUK (4.06 p.m.): I move the be repealed. following amendments— Amendment agreed to. "At page 34, line 15, 'repeal'— Clause 82, as amended, agreed to. omit, insert— Clause 83, as read, agreed to. 'expiry'. Clause 84— At page 34, lines 17 to 19— Mr PALASZCZUK (4.08 p.m.): I move the following amendments— omit." "At page 42, line 21, 'been Two minor amendments are proposed to repealed'— clause 61. The first substitutes the word "expiry" for "repeal" when referring to the omit, insert— Primary Producers' Organisation and 'expired'. Marketing Act and the Fruit Marketing At page 42, line 24, 'been Organisation Act in subsection (2) as, in a strict repealed'— legal sense, these Acts are to expire rather than to be repealed. I have explained that omit, insert— when discussing a previous clause. 'expired'. Amendments agreed to. At page 42, line 7, after 'transferring Clause 61, as amended, agreed to. producer body'— insert— Clauses 62 to 70, as read, agreed to. ', other than a local association,'. Clause 71— At page 43, line 1, 'or grown'— Mr PALASZCZUK (4.06 p.m.): I move the following amendment- omit, insert— "At page 38, lines 8 and 9, from 'by it 'and grown'." on trust'— These are four very minor amendments. omit, insert— The first two simply substitute the word "expired" for "been repealed". The third flows 'by the replacement corporation on trust from the restructuring arrangements for the under section 46B5 (the "net asset QFVG local producer associations, which we value").'. have already discussed. The fourth 5 Section 46B (Purpose trust for eligible amendment corrects a minor error in the Bill by growers)." substituting the words "and grown" in place of This is a consequential amendment, "or grown" in regard to defining who are which follows from the inclusion of the new presently producers in the case of the clause 46B. The present wording of subsection Queensland Pork Producers Organisation. I (1) of clause 71 refers to the previous clause can assure the honourable member that this 40. As the arrangements previously covered was done in very close consultation with our by the former clause 40 are now covered by Queensland pork producers at the very last the new 46B, so the cross-reference in 71 moment. needs to be amended as a consequence. Amendments agreed to. Amendment agreed to. Clause 84, as amended, agreed to. Clause 71, as amended, agreed to. Clause 85— Clauses 72 to 81, as read, agreed to. Mr PALASZCZUK (4.09 p.m.): I move the following amendment— Clause 82— "At page 43, lines 9 and 10— Mr PALASZCZUK (4.07 p.m.): I move the following amendment— omit, insert— "At page 41, line 10, 'repeal'— '(2) However, this section does not apply if— omit, insert— (a) the replacement corporation's 'expiry'." transferring producer body was a This is a minor amendment. It simply local association; or substitutes the word "expire" in place of (b) the replacement corporation is, or "repeal" in subsection (3) as, in a legal sense, becomes, an industrial association.'." 30 Nov 1999 Primary Industry Bodies Reform Bill 5583

This amendment proposes to replace the "At page 50, after line 25— present subsection 2 in clause 85 with a insert— reworded one which follows from the restructuring exercise for the QFVG local 'Exemption from State taxes producer associations. The effect will be to '106A.(1) Despite any other Act, State tax exclude two types of bodies from the is not payable in relation to— compulsory membership requirements of the (a) a transfer of assets or liabilities; or Bill. Firstly, none of the QFVG local producer associations will have compulsory (b) an application or entry made, receipt membership. Fruit and vegetable growers will given, or anything else done for be required to belong to QFVG itself for at acknowledging, evidencing or giving least three years, unless of course the growers effect to a transfer of assets or move earlier to dismantle the compulsory liabilities. arrangements. However, they will not be '(2) In this section— compelled to join a local association. "State tax" means a fee, duty or charge Secondly, as is the case with clause 85 as imposed under an Act.'." drafted, if one of the replacement bodies for any of the five statutory producer bodies This is the one we are referring to as becomes an industrial association, under the stamp duty. We have heard from the Minister Industrial Relations Act it will forfeit its right to that he has received assurances from Cabinet compulsory producer membership. that there will be an ex gratia payment to take care of any stamp duty. The organisations will Amendment agreed to. have to pay that stamp duty and it will then be Clause 85, as amended, agreed to. refunded. We have seen examples of this Clauses 86 and 87, as read, agreed to. before. We want to make it ironclad and inserted in the legislation. If it is Clause 88— unprecedented, we are not particularly Mr PALASZCZUK (4.10 p.m.): I move the concerned about that. It is about time we following amendment— made it precedent because we want to make "At page 45, lines 4 to 10— sure that those organisations are safe and secure from stamp duty. omit, insert— When the Minister introduced this Bill, he 'Application of div 3 said— '88. This division applies to a replacement "It is the Government's intention, and corporation if— this I state unequivocally, that the asset (a) its transferring producer body was not transfer arrangements will not result in a a local association; and stamp duty burden on industry." (b) on the third anniversary of the How this goal was to be achieved was later transfer day— spelt out in the following terms— (i) it is not an industrial association; and "It is intended that ex gratia relief will (ii) its constitution does not include a be provided for transactions that are membership exemption provision for undertaken for the purposes of the all of its members who are relevant legislation. Detailed principles for the producers for the corporation (its provision of that relief are to be developed "producer members").'." by Treasury and the Department of Primary Industries, having regard to the For the benefit of the Committee, this transactions undertaken." amendment is similar to the previous one and simply replaces an existing clause with a Just before lunch, the Minister said that reworded one to reflect the situation with the Cabinet had approved taxation relief and it restructuring of the QFVG local producer would simply be a matter of the relevant associations. bodies seeking a refund. If that was the Government's intention, the amendment Amendment agreed to. circulated by the coalition would give clear Clause 88, as amended, agreed to. statutory effect to that plan of action, except it Clauses 89 to 106, as read, agreed to. will go one better and do away with the requirement of lodging superfluous paperwork. Insertion of new clause— This is also something to help the Minister Mr COOPER: (4.12 p.m.): I move the when he is doing battle with Treasury, as we following amendment— have all had to do in the past. 5584 Primary Industry Bodies Reform Bill 30 Nov 1999

The amendment now before the House "Stamp duty is not payable for the represents nothing novel or untested. Rather, transfer of any property to the board." it is a clause based on provisions contained in numerous statutes introduced by both Labor There are numerous other examples I could and coalition Governments over the past quote. I do not want to take up the time of the decade. For the information of the Committee, Committee, but precedent is there. I will briefly outline previous pieces of The Minister has justified the lack of an legislation which have contained similar explicit provision giving State tax relief on the provisions. Under the Goss Government, a basis that other primary industry restructuring number of statutes were passed which exercises did not have specific stamp duty provided exemption from stamp duty and exemptions. While that may have been the other State taxes for bodies that were merging case, I would submit that the absence of State and going through transition arrangements. tax relief provisions in these statutes is no Two of these statues are still on the statute justification for adopting that course in this books. I draw the attention of the Committee provision. This Bill was not requested by any of to the Bank Integration (Bank of Queensland) the primary producer bodies. It has been foist Act 1993 and the State Bank of South upon them by Government. Australia (Transfer of Undertaking) Act 1994. For example, in the last mentioned The tax implications of this Bill are statute, there was a transfer of assets and enormous and still not quantifiable. Some of liabilities from the State Bank of South these industries, and in particular the sugar Australia to the Bank of South Australia and dairy industries, are currently going Limited. Subsection 1 of section 11 of that Act through extremely difficult times. In these provides— circumstances, it is not acceptable that these industries should be subjected to massive and "No stamp duty, debits tax or other forced restructuring and not be assured by tax or fee is payable under a law of force of law that they will not be subjected to Queensland in respect of— an extra tax slug at the end of the process. To any transfer effected by order of the say that they will get ex gratia relief is not good Treasurer under this Act; or enough. Ex gratia relief is discretionary and an application or entry made, or uncertain relief. Even the Minister pointed out receipt given or anything else done that the scope and terms of this relief is still to for a purpose connected with, or be negotiated. arising out of, such a transfer." There is plenty of precedent for the clause This is the type of provision found in legislation I have moved. It is fair. It is certain. It is based of this type. For the sake of completeness, I on plenty of precedent and supported by both draw the attention of the Committee to a few sides of politics. In my opinion, if tax relief is more recent examples of this style of good enough for banks going through legislation, passed this time by the recent voluntary restructuring, it is good enough for coalition Government—namely, the Bank of essential primary producer bodies going New Zealand (Transfer of Undertaking) Act through mandatory restructuring foisted upon 1997 and the Advance Bank Integration Act them by Government. On top of that, it is not 1997. Special stamp duty and other just the issue of stamp duties but a range of registration arrangements were set out in both other State charges that will be activated. It is of those statutes. I refer to sections 18 and 19 obvious, for example, that there will need to be of the first statute and sections 10 to 12 of the changes to the ownership details of land and second statute. All of the abovementioned various securities. It is essential that pieces of legislation related to bank comprehensive and fair tax relief be given to amalgamations or transfers, but there are these industries, as all of the changes being other examples of this Parliament applying the effected are changes being initiated by the same sort of principles to other arrangements State Government. where profit is not the motivating factor. This amendment will ensure that a lot of To quote but one example, I refer worries will be lifted and will assist these vital honourable members to the Arts Legislation industries at a critical time. I hope that the Amendment Act 1997. This omnibus statute Minister and the Government will accept it dealt with, amongst other matters, the under these circumstances, remembering that refocusing of five arts statutory bodies. One of there are plenty of examples of precedent that the series of amendments was to the Libraries have been applied to the banks, the arts and and Archives Act 1988. A new section 68E so on. There is therefore no reason on earth was inserted into that Act which provides— why this amendment should not be accepted. 30 Nov 1999 Primary Industry Bodies Reform Bill 5585

Mr PALASZCZUK: This Bill does not In his previous statement the honourable specifically allow for an exemption from stamp member asked the question: how will this goal duty in regard to the transfer of assets and be achieved? I refer specifically to the claim on liabilities from the five statutory bodies to the Friday that Treasury had failed to provide an respective non-statutory replacement bodies. ex gratia refund to the tobacco cooperative in That is why the Government will not be regard to the transfer of assets and liabilities accepting the amendment as moved by the from the former tobacco board. In fact, the ex honourable member for Crows Nest. gratia refund has been made. It was for an amount of $100,742.85, to be precise, and The reason for that is quite simple. It is a was paid out of Treasury to the cooperative on longstanding Government policy not to provide 20 November 1998—over a year ago. legislative stamp duty exemptions for corporate restructuring exercises. Rather, the Mr Cooper: It was 1996, though, that I policy is that, where there is a transaction that asked for it. is subject to duty under the Stamp Act, duty Mr PALASZCZUK: I do acknowledge that will be assessed in the normal manner but the this rebate was a long time in coming, since Government will consider the provision of what the tobacco board restructuring exercise was in is considered ex gratia relief. This means that, September 1996. However, as the honourable once stamp duty is assessed, the body that is member would know, in the intervening time, to pay the duty can apply to the Under between 1996 and 1998, the coalition was in Treasurer for a payment out of the power. Unfortunately, it was not able to Consolidated Fund equal to the amount of the achieve what I was able to achieve in under duty. three months. Therefore, I am quite confident that, at the end of the day, the provisions in In effect, we are talking about a contra or this Bill will be sufficient to allow an ex gratia offsetting transaction so that the stamp duty is payment to be made to the five producer paid and an equivalent payment is made back bodies. I believe that the amendment as to the body from Treasury. This has happened moved by the honourable member for Crows before with a number of primary industry Nest is unnecessary and therefore the restructuring exercises, such as the asset Government will not be supporting it. transfer involved with the formation of Grainco, Mr COOPER: The very point I make is the Australian Quality Egg Farms, now Sunny one that the Minister has made. It was 1996 Queen Egg Farms Ltd in the early 1990s, the legislation that related to the tobacco industry amalgamation of the various dairy and it was two years before Treasury made the cooperatives in the late 1980s and early payment. That is the point. I do not care who 1990s, and the restructuring of the tobacco is in Government, be it the Minister's side or marketing board into the cooperative in 1996. ours. We are speaking from bitter experience. The same process is to apply with the We do not want these five producer present restructuring arrangements required by organisations to wait two years for their ex this Bill as the Government has already gratia payments. We want it provided for in approved the concept of ex gratia relief for legislation so that the tax can be waived. It has transactions undertaken for the purpose of this been done before. The precedent is there. We legislation. The replacement bodies will have are speaking from experience. That is why, for to make formal application to Treasury for the the Minister's own sake, he should be ex gratia payment, but one might anticipate accepting this amendment. that they will not be wasting too much time in Mr KNUTH: I agree with the member for doing so. Crows Nest. I would like to see the surety that It should be noted that the Bill does not the member has asked for so that there will be prevent any further internal corporate no tax on Canegrowers' assets, whether they restructuring that any of the five replacement are standing or through transfers. This morning the Minister said that his department had been bodies might want to engage in at a future in daily contact with the producer bodies. That time. Such arrangements would have to be may be true. I am not denying that, but I can done in accordance with the relevant say now that the producer bodies have not legislation, for example the Corporations Law, been in contact with their growers. or the Associations Incorporation Act. Any such future restructuring arrangements would Mr Palaszczuk: That is not my fault. also be subject to the Stamps Act but, once Mr KNUTH: But this whole thing is being again, ex gratia relief could be applied for and rushed through too quickly. I am only the application would be assessed on its responding to what the members of the merits at the time. Opposition have already raised. I tried to call a 5586 Primary Industry Bodies Reform Bill 30 Nov 1999 meeting for growers and Canegrowers to It was not the wish of those organisations discuss this Bill so that we could sort out these that this Bill come into being in the manner problems and I could come straight down and that it has. I know that the Minister has said say, "We have sorted out the problems that that there has been consultation with industry. the Minister wants us to sort out", and we I think it was fairly short. It is not that industry could come here in one accord and agree or did not know that something was going to not agree with the Bill. But it has just been happen somewhere down the track, because I impractical. We just have not had that time. know that during the time I was dealing with primary industries there was talk about it and We have just gone through a lengthy there were negotiations going on. Now that sugar Bill. The growers are out there in the Labor has been in Government for some 18 paddocks trying to earn a quid and they have months it has made the decision in a very not had time to discuss this Bill. Most of the rapid manner to let the axe fall as far as these growers in the Burdekin do not even know that organisations are concerned. this Bill exists. It is only through the efforts of some hard workers within the growers One of the critical issues for these organisation that growers have been able to organisations is that they depend very heavily get some information. If legislation is going to on those levies. Those organisations represent be rushed through the Parliament, how can we growers and many others, and the BSES act in the interests of our constituents? interacts with those organisations. The Primary Industries Department is another organisation Mr ROWELL: It is of some concern that that it deals with. Banana growers and those we cannot get the exemption issue resolved. types of organisations also contribute. Very Presently the industry is facing a difficult often, many projects are financed and period. Prices are low and certain areas are commenced in association with primary seeing terrible crops. Right throughout far- industries. So the available funds that those north Queensland we are experiencing organisations have are quite critical to extremely heavy rainfall. I think it will be whatever projects they are involved detrimental to next year's crop. in—whether it be research, marketing, The organisation will now have to call on promotion or a whole range of things. its liquid assets to pay $1m, or something like This means that, in the interim, while they that, in stamp duty. I am only guessing. It may are waiting for this ex gratia payment to be much more; it could be something less. But occur—and it is no forgone conclusion that it is a substantial amount of money has been going to be the day after they lodge the requested by the Minister as a result of this application; in fact, it could be some Bill. Really, this is only revenue forgone. It is considerable time after that—those not a matter of money that will be taxed and organisations will have to raise additional funds then denied to the Government. The Minister somehow or other to pay for the stamp duty has certainly given a commitment in relation to that is going to be imposed upon them in view an ex gratia payment. The problem with ex of an ex gratia payment somewhere down the gratia payments is that they are not an track. That will be a drain on their absolute forgone conclusion with Treasury. finances—and, as I have said, very often at a There is every reason to believe that it could time when they can least afford it. I do not be a lengthy period of time before each want to see extra levies being imposed organisation that has an asset that has had to because those organisations have to pay pay out gets this ex gratia payment. stamp duty and then, hopefully, somewhere down the track in a year or two or whatever it The sugar growing industry is might be, they would receive back some experiencing poor world prices. In the past the finances in the form of ex gratia payments pig industry has had difficulties. I know that from that stamp duty. when I was Primary Industries Minister it was on its knees. If it has recovered, then that is As the member for Crows Nest has quite great. It is doing a lot of work in the export adequately spelt out, there have been industry to get back on its feet. instances where exemptions have been allowed. It looks as if banks and all sorts of Dealing with ex gratia payments in the organisations have been able to get manner that has been suggested could mean exemptions. Why is there such a rush to that for some time those liquid assets that are introduce this legislation, which now involves so critical, that will be part of a levy type payment to the Government of stamp duty? system and have been generated through a No doubt the Government will benefit from levy system, will be dried up to a certain extent having that money in its pockets for that to cover that ex gratia payment. period. I am certain it will not be paying any 30 Nov 1999 Primary Industry Bodies Reform Bill 5587 interest on those ex gratia payments, but Goss, Grice, Healy, Hobbs, Horan, Kingston, Knuth, those payments will be made at some time in Laming, Lester, Lingard, Littleproud, Malone, the future. Mitchell, Nelson, Paff, Pratt, Prenzler, Quinn, Rowell, Santoro, Seeney, Sheldon, Simpson, Slack, Is there any guarantee that the Minister Springborg, Stephan, Turner, Veivers, Watson, can give us as far as time limits on the Wellington. Tellers: Baumann, Hegarty payment of those ex gratia payments? The NOES, 41—Attwood, Beattie, Bligh, Boyle, Braddy, cash flow of those organisations is very critical, Bredhauer, Briskey, Clark, J. Cunningham, Edmond, and they need to know exactly where they Elder, Fenlon, Foley, Fouras, Gibbs, Hamill, Hayward, stand in relation to what will be, in many Hollis, Lavarch, Lucas, Mackenroth, McGrady, instances, a substantial payout for the assets Mickel, Mulherin, Musgrove, Nelson-Carr, Nuttall, that they have accrued. Palaszczuk, Pearce, Pitt, Reeves, Reynolds, Roberts, Rose, Schwarten, Spence, Struthers, Welford, Wells. Mr NELSON: It is my belief that the Tellers: Sullivan, Purcell Primary Industries Minister has won a lot of kudos in the industry. He is certainly spoken of The numbers being equal, the Chairman quite well on the tablelands by many groups cast his vote with the Noes. and many of the organisations that we are Resolved in the negative. seeking to re-form here. I say that because it is Clause 107— true. The phone lines to Townsville and further Mr PALASZCZUK (4.42 p.m.): I move the north have now been restored, and I have following amendments— been speaking to a few people up there. "At page 50, line 28, after The points raised by the Opposition and 'regulation'— members in this corner of the Chamber strike at the heart of the whole deal that members insert— are considering. The reforms that these '(a "transitional regulation")'. industries are going to go through will take a At page 51, lines 3 and 4— hell of a lot of time, especially in areas like omit, insert— mine. The Tablelands electorate is remote, and organisations there, such as the QFVG, '(3) A transitional regulation must declare have their headquarters based in the Lockyer, it is a transitional regulation. for example, which is very far removed from '(4) Subsections (2) and (3), this the tablelands. So a lot of time and effort, subsection and any transitional regulation organisation, management and dealing needs expire 1 year after the date of assent.'." to be done on many different levels. These amendments meet a commitment Throughout all of this discussion and I have given to the Scrutiny of Legislation debate, members have been talking about Committee to amend the regulation-making giving more time to the people who need it the provisions of the Bill so that any regulations most, especially in times of uncertainty. I made are only of a transitional nature and are represent an area that has a large dairy to expire one year after the date of assent. industry backbone, namely, Malanda, Millaa Amendments agreed to. Millaa and Ravenshoe. Those areas, in Clause 107, as amended, agreed to. particular, are facing many difficulties at the present time. And the added speeding-up of Clause 108, as read, agreed to. this process is certainly not helpful. Insertion of new clause— As I said, the Minister has won a lot of Mr PALASZCZUK (4.42 p.m.): I move the kudos in those areas. People in those following amendment— organisations and farmers on the ground are "At page 51, after line 7— talking quite favourably about the things that have been done by this Government and by insert— this Minister. So if any thought could be given 'Saving of operation of pt 3, div 2, sdiv 3 to the proposals that have been put forward '108A. Part 3, division 2, subdivision 3 is here, that would certainly go a long way declared to be a law to which the Acts towards making those farmers realise that they Interpretation Act 1954, section 20A are being looked after in the best of applies.6'. circumstances. 6 Part 3, division 2, subdivision 3 (Trust for Question—That Mr Cooper's amendment assets of secondary body of Queensland be agreed to—put; and the Committee Cane Growers' Organisation) divided— Acts Interpretation Act 1954, section 20 AYES, 41—Beanland, Black, Borbidge, Connor, (Repeal does not end saving, transitional Cooper, E. Cunningham, Davidson, Elliott, Gamin, or validating effect etc.)." 5588 Primary Industry Bodies Reform Bill 30 Nov 1999

This amendment inserts a new clause. '(2) This section applies despite another The effect of the proposed new clause 108A is provision of this Act. to allow the continuation of the trust 'Expiry of Act arrangements for the assets and liabilities of the Canegrowers' mill supply committee and '56B. This Act expires 1 month after the district executive bodies after the termination date of assent for the Primary Industry of the Act in five years' time. I have already Bodies Reform Act 1999.'.'." explained the trust arrangements. These amendments provide for the expiry Amendment agreed to. of the existing levy arrangements under the Primary Producers' Organisation and New Clause 108A, as read, agreed to. Marketing Act and the Fruit Marketing Clauses 109 to 113, as read, agreed to. Organisation Act on the date of assent of the Clauses 114 and 115— Bill. The amendments are necessary in view of the legal uncertainty regarding these levies. As Mr PALASZCZUK (4.43 p.m.): I move the provided for in the existing Bill, these two Acts following amendment— will expire one month later to allow the transfer "At page 55, lines 2 to 9— arrangements for Canegrowers, QDO and the omit, insert— pork producers to be completed. 'Division 1—Amendment of Fruit Mr COOPER: This clause amends both Marketing Organisation Act 1923 the Fruit Marketing Organisation Act 1923 and the Primary Producers' Organisation and 'Act amended in div 1 Marketing Act 1926 by providing that both '114. This division amends the Fruit expire one month after the date of assent of Marketing Organisation Act 1923. this Bill, and by providing for the issue of levies. At the moment, this clause simply 'Insertion of new ss 19 and 20 repeals both Acts. The amendment clarifies '115. After section 18— the issue of further levies. insert— With respect to both Acts, the 'No further levies after date of assent for amendment provides that a levy must not be Primary Industry Bodies Reform Act 1999 fixed, imposed or made under the repealed Acts from the date of assent of this Bill. The '19.(1) A levy must not be fixed, imposed Minister would be aware that some primary or made under this Act after the date of producer bodies have expressed concern assent for the Primary Industry Bodies about proposed sections 19 and 56A because Reform Act 1999. not only do they provide that new levies '(2) This section applies despite another cannot be made under the repealed Acts from provision of this Act. the date of assent to this Bill but they also 'Expiry of Act prohibit the imposition of existing levies. '20. This Act expires 1 month after the One primary producer group has made date of assent for the Primary Industry this point, and I think it is valid. Including the Bodies Reform Act 1999.'. word "imposed", which is not included in the Primary Producers' Organisation and 'Division 2—Amendment of Primary Marketing Act and which is defined in the Producers' Organisation and Marketing Oxford Dictionary as "to require the payment of Act 1926 a charge, tax or other obligation, and to force 'Act amended in div 2 compliance with", will almost certainly have the '115A. This division amends the Primary effect of, firstly, stopping the collection of Producers' Organisation and Marketing existing levies as from the day of assent and, Act 1926. secondly, stopping the recovery of any outstanding levies which were payable before, 'Insertion of new ss 56A and 56B but were not paid by, the day of assent. This '115B. Part 9, after section 56— would result in a one-month gap from the day insert— of assent to the transfer day where existing levies under the Primary Producers' 'No further levies after date of assent for Organisation and Marketing Act would not be Primary Industry Bodies Reform Act 1999 collectable and compulsory membership under '56A.(1) A levy must not be fixed, the PIBR Act would not apply. imposed or made under this Act after the In the case of at least one organisation, date of assent for the Primary Industry around 50% of all membership levies fall due Bodies Reform Act 1999. on 31 December, but because of the 30 Nov 1999 Retirement Villages Bill 5589 operation of this Bill as originally submitted to ' "section 39 transfer", for part 3, division this Parliament, it would not have been 2, subdivision 3, see section 46(1)(b).'. possible to collect those levies. I recognise that At page 60, line 8— in the case of this particular primary producer body, the revised amendments circulated by omit, insert— the Minister will hopefully resolve that issue. ' "trustee", for part 3, division 2, However, I am not sure that a similar problem subdivision 3, see section 46B(1). may not exist with the other producer bodies, "trust property", for part 3, division 2, having regard to the nature of this Bill, the fact subdivision 3, see section 46B(1).'. that it has had to be processed so quickly and the fact that some of these bodies have yet to These amendments are procedural. They come to grips with some of its implications. amend the Schedule of the Bill which contains This issue, which has been resolved in relation a dictionary to aid in interpretation of terms to one body, could arise in relation to some of used in the Bill. Amendment No. 42 amends the others. an existing definition consequent upon an earlier amendment in regard to asset transfer One way of preventing this unjust arrangements, while Amendment Nos. 43, 46 situation is to delete the word and 47 insert some additional definitions. "impose". Obviously, the Minister cannot Amendments Nos. 44 and 45 are purely simply scratch that out with a pen. As the consequential and remove some superfluous Minister has acted on the concerns of one of words in two of the definitions. the primary producer bodies—and we are Amendments agreed to. pleased about that—could he give a categorical assurance that there is not now a Schedule, as amended, agreed to. problem with the others? Bill reported, with amendments. Mr PALASZCZUK: Could I say for the benefit of the Committee that this section does Third Reading not prohibit the enforcement of existing levies. I can give the honourable member for Crows Bill, on motion of Mr Palaszczuk, by leave, Nest that assurance. read a third time. Amendments agreed to. Clauses 114 and 115, as amended, RETIREMENT VILLAGES BILL agreed to. Second Reading Clauses 116 to 122, as read, agreed to. Resumed from 21 July (see p. 2770). Schedule— Mr DAVIDSON (Noosa—LP) (4.49 p.m.): Mr PALASZCZUK (4.48 p.m.): I move the There are 300 plus retirement villages spread following amendments— throughout the length of Queensland, but the majority are situated here in the south-east "At page 57, lines 7 to 10— corner. Approximately 22,000 aged and omit, insert— ageing people are resident in these villages, all ' "assets and liabilities", of a producer of whom reside in these complexes under body, includes the assets and liabilities residence contracts of one form or another. I that, under section 39, are, or are taken notice that the Minister is not in the Chamber to have been, transferred to the body.'. yet. At page 58, after line 17— Today there are approximately 22,000 people as well as their children and relatives insert— who know that they have been betrayed by ' "eligible grower", for part 3, division 2, the member for Mount Gravatt, the Minister for subdivision 3, see section 46A.'. Fair Trading, the Honourable Judy Spence At page 58, lines 20 and 21, ', MLA. So angry and distraught are they with repealed under this Act'— the contents of the Retirement Villages Bill 1999 that this Minister tabled in the House in omit. July this year that, when opening a discussion At page 59, line 9 ', repealed under on this Bill, the question most often raised with this Act'— me by these aged people is the legitimacy of omit. the Minister's intentions with the Bill. For all of these 22,000 people, our last sitting was, for At page 59, after line 23— them, equivalent to their last supper, so badly insert— have they been betrayed by this Minister with 5590 Retirement Villages Bill 30 Nov 1999 all of her empty promises and rhetoric, not the Indeed, that is a statement of great truth, but least of which was the following—and I quote one that is now sadly ignored. In a ministerial from the Courier-Mail of Tuesday, 20 July statement on 17 August last year, the Minister 1999— said— "Through years of involvement with "The residents of Queensland's retirement village residents, I have retirement villages send me messages learned that many people opt for every week when I receive scores of retirement village living because of the letters imploring me to review the lifestyle it offers. legislation." I would like to take this opportunity to In that early flush of occupying ministerial inform you about the long overdue and leather, the Minister went on to say— significant changes to legislation that will "Our predecessors have left the improve your living standards and give issues that they thought were intractable you greater peace of mind." to a Government that can talk, listen to Thank the good Lord Minister Spence did not and understand the fears and concerns of promise them a life-destroying calamity, the retirement village industry." although she might as well have done. On The Minister said further— which planet do the Minister and her advisers "While Queensland retirement village reside? It certainly cannot be planet Earth, and residents and operators once felt it certainly is not south-east Queensland. The deserted and unacknowledged, our BMW motor company has just released a Government has made them a central terrorist-proof vehicle, complete with armoured component of legislative change. Our glass and anti-personnel equipment. I suggest program of legislative reforms will not just that the Minister places an order for one of be a bandaid approach to retirement these limousines immediately if it is her villages issues. Under this Labor intention to ever again visit a retirement village. Government, both residents and It is doubtful that any piece of legislation operators will be secure in the knowledge was ever brought into this House with greater that the legislative underpinnings of their expectation by those it would affect that its retirement villages are sound." content would resolve the faults and criticisms On 3 March this year, in another ministerial of the Act it was meant to replace than this statement on retirement villages, the Minister diatribe of convoluted theory and compromise stated— that has been described as "a handbook for "The working group has succeeded future developers and operators of retirement in constructing for Queensland retirement villages" by exasperated, confused, angry and villages a framework for a fair and desperate village residents who honestly prosperous future." believed that the Minister knew what they needed and wanted and was going to do That is rousing stuff—enough to raise the something about that situation. It is not as expectations of those 22,000 people living in though the Minister does not have an affinity retirement villages throughout Queensland with retirement villages and their residents. As that here at last was a Joan of Arc to the aged far back as November 1991, Hansard records and ageing, who most certainly did have this waffle by the Minister during the debate on problems with the current Act; here was a the Land Tax Legislation Bill- saviour who would put the wrongs to right. "Retirement villages are not enclaves On 5 May this year, when commenting on for the wealthy. a recent trip to villages at Buderim in answer to a question asked by the member for Nicklin, ... Ms Spence said among other things— People go to live in those villages "There seems to be a lot wrong with because they do not have the burden of the current retirement village legislation. home and garden maintenance and they The former Minister, the member for can share their leisure with people of the Indooroopilly, on two occasion tried but same age. They then live on a pension or failed to introduce new legislation. As the superannuation and thus have a fixed Parliament would be aware, a working income. In doing so, because they delay party is currently working on this. I am the move to hospitals or old peoples' pleased to inform the member for Nicklin homes for many years, they are not a and others that draft legislation will be burden on the community." going out for public consultation this week 30 Nov 1999 Retirement Villages Bill 5591

and new legislation will be introduced in cannot avoid mention of the ARQRV in a July. number of contexts. It is important that Queenslanders Thank you for sending me a copy of are involved in full consultation and have the latest draft Bill. I have sent my full input into this legislation before it hits response as requested to the legal Parliament in July. I look forward to services unit. I attach a copy of that members' observations, as I do those response, which I hope you will on this concerned residents throughout occasion take the trouble to read and not Queensland who have written to me just pass on to your departmental about this subject last year." advisers. However indifferent they may be Is it any wonder that village residents had to the concerns of residents, which is great expectations that all of their concerns apparent from the previous Bills with the and grievances would be considered and that drafting of which they have been involved, they would have a chance to have direct input you, as Minister, must take responsibility into legislation being formulated by the for what they produce. But it is not simply Government and this Minister? a question of detail and drafting. It is a question of philosophy." After all this and after all the consultation between the working party of operators and That is a most pertinent statement in the the representatives of the residents, such as realms of the proposed legislation, so let me the Association of Residents of Queensland repeat it: "It is a question of philosophy." The Retirement Villages (Inc.), one might have letter goes on— thought that the Minister had enough "Despite earlier drafts over the past evidence and fact to put together all- two and a half years, this draft shows, still, encompassing legislation to suit the needs of an abysmal ignorance of life in a all parties to this legislation and the industry. retirement village; ignorance of residents' Regrettably, this was not so, and the hopes modest requirements and expectations; and aspirations of residents were again ignorance of the frailty, physically and dashed on the barbs of the too-hard basket. intellectually, that advancing years brings; This was particularly disappointing to the ignorance of their susceptibility to many residents who had gone to the trouble of autocratic and intimidating management; submitting written responses to the draft ignorance of the reluctance to speak up legislation, as requested by the Minister, and or ask questions for fear of reprisals; even who are acknowledged on pages 3, 4 and 5 of to fear of being evicted for daring to do the Explanatory Notes. Even at the stage of so. the draft legislation, many residents who had These, Minister, are not figments of carried the fight for fairer legislation for years my imagination. They are sentiments could see the writing on the wall in terms of the which have been expressed to me by expectations and promises from the Minister. many residents in many villages so often I have a letter from a long-time village with the plea, 'Don't mention my name; resident and member of the ARQRV which don't take it any further, don't mention this spells out the despair over the draft legislation village'. Some, but only some, of their better than I can express it to this House. The fears may seem a little extreme, but they letter states— have been engendered by the attitudes and threats and bluffs of managers and "Dear Minister, operators. As you know, I am the vice-president The Act is probably not the place to of the ARQRV, and you may be aware recite all the rights of residents in that I shall possibly succeed Cliff Grimley retirement villages but, and I have made later this year (as president). this point in response to previous draft You may also be aware that I am a Bills, the Act should provide for severe member of that little group, Watchdog penalties for operators or their agents who RVL. Because of my involvement with the attempt any coercion or intimidation of ARQRV for the best part of a year now residents or attempt to deprive them of and because of that association's any of their civil liberties. I assure you, participation, albeit scandalously Minister, that such things do not happen outnumbered in the review process, I only occasionally; it is not an exaggeration have refrained from much personal to say they are rife. contribution, but I am now constrained to I enclose a copy of an article, 'Rights write in a personal capacity, though I of residence', to appear in the next 5592 Retirement Villages Bill 30 Nov 1999

ARQRV newsletter. The content was not militate against interests of residents plucked out of the air." those unscrupulous practises which I seek leave to table that article. oppress so many residents and of which you are thoroughly aware were made Leave granted. possible by the 1988 Act's silence on the Mr DAVIDSON: The letter then issues. continues— Your Bill is not silent. It legitimises "The part of the Bill which deals with them, enshrines them, in an Act of resident participation in the running of the Parliament. village actually decreases what very little Last year when you became Minister participation is conferred by the present responsible for retirement village affairs, legislation. What has increased in this Bill you undertook to address the matter that is the right of the operators to interfere in most concerned so many residents: years the activities of residents. The provision of having to wait, after vacating their unit, for operators or their agents to call for any return of what they paid for their meetings at almost the drop of a hat unit, years of continuing payment of simply increases the operators' service charges and continuing accrual of opportunity to bulldoze something past the exit fee payable to the operator. You unwitting residents without allowing them have done precious little to improve the time to consider or take advice. The lot of future residents; you have done provision to allow operators to address absolutely nothing for existing residents. meetings of residents' committees is to The most common expression in increase the operators' opportunity to your draft Bill is 'does not apply to existing bring undue influence on the deliberations residence contracts'. It reduces the of the committee. Such things as these references you have made from time to should be prohibited, not encouraged. time about the sorry plight of so many These provisions have obviously residents to nothing more than pious been requested of you or your rhetoric, of which we had so much from department by the operators' lobby. And your predecessor. you or your department has chosen to This Bill is incredibly anti-resident, allow them, to the considerable detriment Minister. I do not believe that you or your of residents. advisers have all been suborned by This Bill has failed to introduce the commercial interests, but, when it comes accountability for which residents have to legislation to protect consumers, which asked. You have not provided for is the raison d'etre of an office of residents' participation in any of the consumer affairs, you have shown budgetary procedures. All financial yourselves to be thoroughly inept. You matters and all financial decisions should all resign or be sacked from regarding the expenditure of residents' anything to do with consumer affairs in funds you have left, quite unequivocally, general and retirement village legislation in the sole control of the operator. in particular. Periodic statements of income and Residents across the State will be expenditure is not good enough. It is not thoroughly disappointed with your abject the bringing to account that residents failure to do anything for them. It is question. It is the propriety of the eminently possible that there will be a expenditure of their money! Whether what symphony of protests from residents, is meant for maintenance is getting when they realise that you have diverted to development, for example. comprehensively betrayed them. I have to It happens, Minister, it happens. say that I am not only likely to join that Those few, heavily outnumbered symphony, I am likely to do my best to representatives of residents on your help orchestrate it." review committee were able, over a very Then followed 10 tightly typed pages covering lengthy series of meetings, to extract a plethora of clauses justifying the sentiments some concessions from the intransigent set out in the letter. owners' lobby. By reading that letter I do not suggest You have done absolutely nothing to that all residents of all retirement villages advance the cause of residents beyond harbour those sentiments. They do not. Many that level of limited agreement. Indeed, residents manage to get along quite amicably you have introduced measures which with the operators/managers of their particular 30 Nov 1999 Retirement Villages Bill 5593 villages. That appears to be especially so in note that word "anxiety"— complexes that might not be considered profit "regarding several important clauses at oriented. While many have expressed present contained in the consultation draft concerns to me about the sorts of practices with the hope that you and your other that fostered the contents of the above letter, I Opposition colleagues will vigorously have received information from others who are contest those sections of the Bill which almost entirely happy with their current appear to negate the favourable positions. conditions of some leases and which As one would expect from the tone of that introduce other clauses which are particular letter, many operators who abide by disastrous for the future of present the current Act have very real and legitimate retirement village residents. As an elderly concerns that the industry as a whole could be single age pensioner and a resident of"— tarred with the same brush, and that simply is not the case. Equally it is true that even the a certain village— conscientious managers/operators and "for approximately 7 years, my concerns residents of retirement villages have concerns are very real and I can, from experience, with this Bill. As one developer/operator put it, vouch for their authenticity. If the draft is Part 5 of the Bill needs redrafting in its entirety. introduced as legislation without It is that person's opinion that Part 5, which amendment, it will confirm the opinion of pertains to the operation of schemes that have many of my fellow retirees that we would been outlined in the Bill, will be the cause of be better off living outside a retirement more disputes than ever, because he believes village. Your support in these important that that section is simply not workable. He has matters is vital to residents and to the given some excellent examples to prove his future growth of the industry, and I thank position. you in anticipation." Mr Speaker, I do not know about you or One might now better understand my your brethren opposite, but where I come from comments earlier about the Minister's 20 July the letter that I read and its attachments would 1999 comments that this legislation would be considered a monumental serve that one improve living standards and give residents might expect someone to have taken some greater peace of mind. The comments in the notice of. If a person had received not one but letter that I have just read do not give any a number of similar replies to their call for a substance to the Minister's claim of providing public response, surely the message should greater peace of mind. have sunk in that there were some very unhappy people in suburbia who felt It is not too difficult to understand this outrageously betrayed. Surely the line, "This lady's concerns when one reads in her Bill is incredibly anti-resident ..." says it all. submission—a submission to the Minister that has yet to elicit a reply—the following As the writer pointed out in the early part statement— of his letter to the Minister, the matter of legislation for retirement villages is not a matter "Clauses 101(1) to (5) are dangerous of drafting and detail, it is a matter of to residents of this village unless a 'cap' is philosophy. That point is obviously lost on this placed on maintenance reserve fund Minister. The bell should have rung for the charges the operator may impose." Minister and her advisers right about then, but The lady then goes on to advise of the poor if it did it must have registered in a far away management outcomes in her village and brain. As the Bill that has been tabled with quotes a current letter from management that much fanfare in this House by Minister Spence proposes that her fees should rise from $200 a shows, very little of the core complaints about month to $309 per month. As the lady points the original draft that I know found their way out in her submission, for single pensioners back to her department were acted upon. this increase would mean forgoing some of the A further example of this betrayal comes necessities of life. Can honourable members from an elderly lady who has lived in a village imagine that lady's state of mind when a for almost seven years. She is representative second letter from the management of her of many elderly ladies who are left on their village advised— own, usually with only a pension on which to "The new Act compels (when live. To such people, the proposed changes enacted) the payment of maintenance are entirely unsatisfactory. That lady wrote— fees struck by management and "I send this copy to you because of corroborated by the surveyor, whose fees my anxiety"— will be paid by the maintenance account." 5594 Retirement Villages Bill 30 Nov 1999

Is it any wonder that the word "betrayed" respond to the original draft Bill, then the tenor keeps raising its head when this Minister rises of any responses they may have made has in the House and makes the sanctimonious received the same attention that many of the assertion that she has saved the retirement residents received, which is obviously nil. village folk from a fate worse than death? If The Minister cannot say that this was all the Minister for Fair Trading had, just once, news to her before she presented this Bill to listened to those who sought her intervention this House. Prior to so doing, she went up to on their behalf in this matter, she would forever Buderim to meet village people in their own have found a dedicated group of people who, territory and she was left in no doubt what this along with their families and friends, would representation of village folk expected to find have become a cheer group forever. in this Bill. With a grandiose flourish that she What this Minister has created is a obviously sees as her trademark, she regaled dedicated and far from frail group of people in this audience with a view that she was the only the community, who now know first-hand what Minister, or member of any party, who really we on this side of the House have known for had their interests at heart—a statement which years—that here we have a Minister totally out should have told these long enduring folk who of her depth and out of touch with anything knew better that here was a member of a other than the selection of toilet brush holders, Government who really only wanted to hear despite the lofty speeches of the can-do ability herself eulogise her own performances and of this Beattie Government, which time and that she and her governmental colleagues time again, as the Bill shows, only serves to really did know what was best for residents and hoist this Minister and her colleagues with their the industry everywhere. That was in Buderim. own petard. And all of this in the Year of Older Persons! What a mockery and insult to these Ms Spence interjected. older people that this Minister claims to have Mr DAVIDSON: I have been to Buderim. I listened to them! have spoken to all those people at Buderim. The abrogation of her promises to current The Minister went up there twice and twice she residents of retirement villages—the entire made certain promises to them, yet she has 22,000 plus of them—is no better spelt out not delivered one. If she ever goes back to than in her second-reading speech, which Buderim she had better be very careful; they says— are waiting for her. "The working party considered the Ms Spence: You have never been there application of the Bill to existing villages yourself. and residence contracts and it was Mr DAVIDSON: I have been to Buderim. I considered that these matters are the have spoken to those people. They are waiting responsibilities of operators and residents for the Minister to return to Buderim. They and the Bill is merely setting out a want to know when she is going back to structure for both." Buderim. If honourable members think this is a total cop- When Minister Spence departed from that out from the residents' viewpoint, imagine what meeting, she should have been more aware of they must have thought when this statement what those villagers wanted in this Bill because followed in the Minister's grand performance in they had treated her treatise with disdain and this House at the last sitting. The member for had given her advice, which she would have Mount Gravatt said— been wise to heed. If Minister Spence is "The working party considered that, if planning another trip to Buderim, or even the Bill applied to existing contracts in Nambour—they are waiting for her as well in these cases, it would create undue Nambour—she would be well advised to do so financial hardship on operators and their only after seeking advice. financial structure could be affected." Honourable members will recall the To quote the Minister's second-reading speech statement contained in the letter I read to this when she presented another Bill to this House, House from a village resident who has more this is the type of transparency we are used to than a passing knowledge of the much touted in Queensland, particularly as it applies to working party the Minister places so much faith operators and residents. Everything in that in—"and because of that association's statement is transparent. I repeat: is it any participation, albeit scandalously outnumbered wonder that the residents of retirement villages in the review process." It is not difficult to see feel rejected, overlooked and betrayed? It why many residents feel that this Bill is nothing would appear that, if any of the operators had more than a blueprint and a handbook for replied to the Minister's exhortations to future village operators and developers. 30 Nov 1999 Retirement Villages Bill 5595

The Minister in her speech was at pains to and existing villages having their contracts point out that the working party concluded that reduced to that lower minimum level. the main disagreement about the continuation The clause that brings most concern in of service charges after vacation would be this area is clause 42. The word "agreeing" in dealt with more effectively by having stricter "agreeing to conditions more favourable" is processes in place to encourage more timely future tense. Existing contracts have already resale of units. In this case, any breach would been "agreed to"—past tense. This is the entitle a resident to seek intervention by the thrust of the concern expressed about this tribunal. In the words of one Buderim village clause and the misgivings about operators resident, what a load of codswallop! What this having grounds for amendments to contracts, ministerial statement alludes to is that great including public information documents. gift to the residents in this Bill, their ability to Existing contracts with their relevant clauses engage a real estate agent to sell their are considered to be sacrosanct, and any residency contract after a period of six months enforced changes as may be provided by this after the unit in question has been vacated. legislation would have the effect of changing Apart from the fact that many disclosure the laws governing contracts and the relevant statements already allowed such an event clauses of those contracts. where both parties to the contract agreed, the Clause 57(c) is also a matter of extreme fact of the matter is that real estate agents concern for residents and it is a particular area have no real interest in selling retirement units about which the Minister has been made because of the complexities of the disclosure aware in no uncertain manner as to residents' statement, now called a public information wishes. The use of the words, "provisions at document, when it is much easier for real least equivalent to" could tie up opposing legal estate agents to sell prospective clients a not- counsel for days. In other places, so could so-complicated property controlled by a body words such as "more beneficial". Who decides corporate. As residents themselves point out, what is more beneficial in these people interested in entering a retirement circumstances? village go to a retirement village, not a real estate agent's office, to seek the information The ultimate payment of exit entitlement they need to make such a decision. is a major concern to all residents, and existing benefits must not be eroded in any way. Each There are 238 clauses in this proposed village is geared to handle existing procedures legislation and there are many that do subject to any enhancement with any better appease some of the concerns of village conditions which the new provisions may residents. As has been expressed earlier, this impose. It may be obliquely intended that the Bill should not simply be a matter of detail and new provisions are mandatory or offered as a drafting; it is a matter of philosophy. Thus package deal. But it is imperative that any honourable members will understand that, for perceived superior existing rights of residents many residents who elected to enter villages must prevail in these circumstances. If Minister because at the time the obligations and Spence fails to take notice of this major responsibilities of both parties to the contract concern about this legislation, over 22,000 provided the residents with better conditions people will make her think that the net bet than were available at other villages, those affair is merely a storm in a casino. residents now have a major concern as to the ramification of clauses within this document Again on the matter of exiting rights, the that has been presented to this House. second paragraph of the Minister's second- reading speech says— There is a major concern that the new disclosure statement and clauses therein and "The agreement was reached after their ramifications will alter the nature of the operator representatives agreed to the original contract of residency, which included remainder of the resale provisions as clauses to those original contracts the applying to existing residence contracts conditions which made those contracts and and agreed to giving the tribunal power to those villages more favourable. As recently as order the payment of an exit entitlement March 1999, the ARQRV, in reporting on the to a resident if those resale provisions are progress of this Bill, advised that existing not complied with. contractual commitments cannot be altered. It is difficult to determine what benefit accrued This is all that residents who have carefully to existing residents, but it does appear that entered into those commitments require. It is the operators have agreed that the remainder agreed that there is a need for some villages of "resale provisions" shall apply as a package to have minimum conditions imposed by deal to existing contracts in the circumstances legislation, but that does not equate with other outlined in my previous comments about 5596 Retirement Villages Bill 30 Nov 1999 clause 57(c). If so, it would result in residents in present in existing residency contracts. those circumstances incurring thousands of Residents are responsible for the dollars in resale costs and commission where replenishment of this reserve fund and should the operator had specifically excluded the not see it dissipated by a receiver or liquidator resident from those costs. It would be a preparatory to the sale of the village to another diabolical betrayal of the rights of those operator. residents not to be condoned under any In connection with this maintenance circumstances. reserve fund, the income tax implications of Many of those residents are elderly and the present legislation also need further do not seek benefits to which they are not consideration. Under income tax ruling 94/24, entitled, only benefits for which they have retirement village operators are given most existing contractual agreements. The extent to substantial income tax concessions. Basically, which operators need financial assistance from the following provisions apply. A deduction is residents may be gauged from the lead article allowed for all development costs incurred, in the property section on page 23 of the including landscaping, roads, footpaths and Courier-Mail of 21 July, which announced buildings, as well as holding costs during million dollar expansion plans. Financial development and normal operating costs. The assistance to operators is non-existent and operator is assessed on the sale price of units, needs no encouragement. original or resale, exit fees, service fees and other general extraneous income. A deduction In the area of personal services charges, is allowed for the exit entitlement paid to a clause 20 provides that a maintenance reserve former resident. fund contribution is a proportion of the general services charge. Can the Minister explain why It will be observed that these provisions there is no proportion of personal services are most generous. However, with the charge when the equipment used to provide maintenance reserve fund being paid to and the personal services listed as examples in under the direct control of the operator, the clause 12(3) would be equally susceptible to amounts paid into that fund by the residents maintenance? for their reserve against future long-term maintenance costs will, under paragraph 10 of This flawed Bill has many such that ruling, become assessable income of the inconsistencies which some of my colleagues operator and subject to tax in his hands. Is this will touch upon. Another matter of grave what the Minister wants? The residents reserve concern is in the operation of schemes and contributions being eaten away by income tax management, which forms Part 5 of this Bill. payable by an operator! To obviate this, the Clause 97(1) is a prime example. This clause funds must remain trust funds held on behalf requires an operator to establish a of residents by an independent trustee. In this maintenance reserve fund to be held in a trust way, it will only be the interest earned on the account upon which the operator is to sign reserve which will become assessable. To withdrawal cheques. The security envisaged by ensure taxation at a reasonable income tax the use of a trust account under this provision rate, residents in actual residence from time to is only illusory. The account will hold on behalf time should be presently entitled to have both of residents their joint contributions formerly the income and capital of the reserve applied paid into a sinking fund to finance repairs, for the purposes intended. renovations, replacements and maintenance Clauses 97(3) and 99(2) should provide of a substantial but infrequent or irregular for payment of income tax, if any. These nature. This is the generally accepted purpose clauses provide for payments out of the of such a fund. The purpose of a payment into maintenance reserve fund and amounts to be a trust fund is self-evident and funds should budgeted for the fund respectively. It is noted only be available with the approval and that clause 100(1)(b) provides for payment into authorisation of an independent trustee. It is the reserve of interest earned, which obviously inappropriate that an operator act in this could attract income tax. In clause 103, the capacity. operator should be prohibited from paying Clause 46(1) provides for the appointment from residents' service charges his holding of a trustee for in-going contributions under a costs—that is, rates, etc—on undeveloped residence contract. This person should also act land which is being held for future as trustee for funds held on behalf of residents development. He is allowed an income tax available only for the purposes specified and deduction for these costs under tax ruling should not be available to a receiver or a 94/24 as previously indicated. Like any other liquidator in the case of insolvency of a developer, these costs form part of the manager or operator. These conditions are establishment costs. Clause 103(3) prohibits 30 Nov 1999 Retirement Villages Bill 5597 an operator from including in a general in these villages understand these services charge an amount for replacing village ramifications far better than the Minister capital items, but it also provides that this does obviously does. Clause 113 provides for a not apply to an existing residence contract. financial statement to be given within five Again, is it any wonder that village months of the end of the year showing income residents—the 22,000 plus with existing and expenditure during the financial year, contracts—believe this incompetent Minister including the capital replacement fund and the has done a snow job on them? maintenance reserve fund. Sundry other items Presumably, the other provisions are mentioned in this clause. contained in Part 5 do apply to existing Does the Minister intend in her Bill that contracts. I will comment in relation to the these provisions override conditions in existing contents of a PID concerning clause 113, contracts which require operators to provide which provides benefits additional to those quarterly operational financial statements, specified in the Bill. This is permitted under annual budgets and costs and service charge clause 74(6), but clause 37(4) provides that calculations which are then subject to perusal the Act shall prevail to the extent of any by and discussion with a finance committee inconsistency with a PID. Are the additional made up of suitably qualified residents who provisions in the PID an inconsistency and represent their fellow residents? If she does therefore of no effect? Will an operator be and if the provisions do mean just that, the permitted to amend the PID to provide lesser objective to facilitate participation by residents benefits than previously contractually in the affairs of retirement villages proclaimed committed by the operator/developer? Does by this Minister in her second-reading speech the Minister know what she is talking about? will not be attained. These are additional The answer is obviously no, which will come as safeguards accepted by residents to protect no surprise to anyone in this Chamber. their financial interests in their declining years A division of Part 5 of this Bill deals with and must not be eroded. financial accounts and statements. In the introduction background notes pertaining to Auditing by qualified auditors will never this Bill, reference is made to providing substitute for continued local village vigilance effective consumer protection mechanisms for by qualified village residents. This comment is the more than 20,000 frail, aged and elderly even further enhanced when one finds that, in people who live in the State's retirement the earlier draft Bill, provision was made for a villages. One can only hope that this resident to be nominated to inspect village statement was not meant to imply: "Here is a financial records no more frequently than once group of people, wholly bereft of logical per month. In this legislation, there is no such thought." In my dealings with retirement village provision. Why is this so? Where there is the people, I have met and dealt with many possibility of a conflict of interest as to cost people amongst those residents who are a allocation by an operator, should this provision solid core of residents with business, be retained under this part? Perhaps managerial and financial expertise, coupled somebody just forgot about this. Perhaps with commonsense and extended experience someone might like to reconsider this point, as of village life. Their views should not be indeed someone might like to reconsider this discarded as of no consequence, as it would extraordinarily inept and totally reprehensive appear this Minister has chosen to do, judging litany of betrayal and just plain stupidity. by what she has placed before us in this Other members from this side of the matter. House who do have an affinity with village life Clause 112 of Part 5 would suggest that and its problems, which are not necessarily the Minister and her advisers do not believe apparent in all villages, will address other that a level of competence exists in village life. deficiencies in this Bill. Minister Spence has Otherwise, it surely would not have appeared. indicated that she will revisit and review this The clause states that it provides for only legislation in 12 months time. Many residents quarterly statements of the capital in retirement villages are well into their eighties replacement fund and the maintenance and nineties. Many do not have a lifespan of reserve fund to be given to residents. What it 12 months. This Minister would be well advised specifically does not do is provide for quarterly to fix these obvious deficiencies now rather financial operating statements, which suggests than expose elderly residents and their families that these elderly folk simply would not to financial uncertainty and additional understand the ramifications of such a commitment, to say nothing of the continued document. Nothing could be or is further from entrapment and anxiety which this Bill now the truth. It is even truer to say that many folk engenders and imposes in many cases. 5598 Retirement Villages Bill 30 Nov 1999

It is important to mention when discussing heard one positive comment in that speech this Bill that the Minister faces another group from go to whoa. The member for Noosa was of very discontented folk who currently reside in Government for two and a half years and he in abodes covered by the Mobile Homes Act. could have done something about all of the Many but not all of these people are also matters that he whinged and whined about. retirees who have opted for a different lifestyle He did not one thing and he has said not one to that provided by retirement villages. If the positive thing. I do not see how he can stand complaints we receive from these folk— up in this place, say what he said and have complaints which the Minister appears to have any credibility. chosen to ignore, particularly in the area of Since its inception the Retirement Villages rents—are of equal concern to these people, Act 1998 has been the subject of a number of then we give the Minister timely warning that reviews. It has been looked at and discussed she is on the way to alienating another group to death by Governments of all persuasions. I of people with substantial voting power who have had deputations from various retired are not at all pleased with her current people who have come to see me over the performance in their areas of concern, and number of years I have been a member of that includes the booklet, Going Mobile, that Parliament. I have now inherited two very large the Minister has endorsed with a statement caravan parks where people do retire to. They which says— may not be the flash joints up the north coast "I am particularly pleased that the or the flash joints down the south coast, production has drawn on the experiences because they are workers who have retired of residents, tenants and park owners." and that is where they live. I have a very large I advise the Minister that, if she proposes to interest in making sure that people in address any of the people who speak to me retirement villages are looked after. about problems in the Mobile Homes Act, she The major stumbling block to effective would be well advised to call out for help. reform of this industry has been the complexity We on this side of the House are acutely and variety of residence contracts that have aware that Minister Spence has had many been developed over the years. Once we requests from all quarters of the retirement legislate to do something, the owners and village industry for changes to this legislation. It developers will try to come up with a contract is timely to point out to the Minister that her that will absolve them of responsibilities in Labor colleagues in New South Wales just regard to people who are in their villages. passed and enacted the New South Wales Under the previous Government, the first Retirement Village Bill 1999. There are many draft of the Retirement Villages Bill was clauses in this piece of legislation that are of released in December 1996. Following public the utmost importance to Queensland consultation and submissions, a second draft retirement village residents—clauses already was developed and released for consultation pointed out to Minister Spence which she has in August 1997. A considerable number of chosen to ignore, even though the retirement written submissions were received by the industry representatives have brought these Office of Fair Trading in response to that needed changes to this Bill to the Minister's second draft. attention. The major stumbling block to the At her public meeting on this Bill in development of the new legislation was the Buderim earlier this year the Minister indicated need to establish funds to provide for the long- that she would be adopting an approach term operation of the villages, to clarify the similar to that taken with the now enacted responsibilities of the operator and residents legislation. I can do no more than commend for capital and maintenance and to deal with the New South Wales Act to the Minister as the issues of retrospectivity. It is very hard for required reading before she proceeds any any Government to deal with retrospectivity, as further with this Bill. I recommend that the people in this House would know. When we Minister withdraw this load of confusing start making things retrospective, we start twaddle from the House and start again, that taking rights away from people who have she consider the needs of the elderly in our signed contracts and we leave ourselves open communities, especially in this the Year of to compensation. Older Persons. With the change of Government in July Mr PURCELL (Bulimba—ALP) 1998, discussions were held by the (5.30 p.m.): Before I address the Retirement Honourable Judy Spence, Minister for Fair Villages Bill I will make some comments on the Trading, with key resident and industry previous speaker's contribution. I do not think I associations on how best to address key 30 Nov 1999 Retirement Villages Bill 5599 issues of contention within the retirement to succinctly, passionately and consistently villages industry. A number of public meetings advocate the rights of village residents. As were attended by the Minister. As a result, the such, this association is now regarded by Minister decided to establish a working party Government and industry as the peak made up of persons to represent the residents organisation representing the residents of and the operators. The working party consisted retirement villages in Queensland. Despite of representatives from the Association of being 86 years of age, he is an inspiring Residents of Queensland Retirement Villages advocate for Queensland village residents. I Incorporated, as well as the Assisted Living have had representation from Mr Grimley. He Association, the Retirement Villages is a very articulate, well-spoken person. He Association of Queensland and Aged Care really does represent those people very well. Queensland, which are peak industry Despite the limitations of resources available to associations. The residents were represented him, Mr Grimley was able to clearly articulate by Cliff Grimley, whom most people in this sound arguments which resulted in village place would know, Bruce Ware, Jan Taylor and operators agreeing on many of the issues that Greg Chapman, who is a solicitor. The had eluded previous working parties. operators were represented by Bruce The issues here are very complex and McKenzie-Forbes, Jane Arthur, Jim Toohey, there is much at stake for present and future Glen Bunney, Ross Smith and, towards the residents, operators and the Government. I latter stages, Allan Gee. Mr Robin Lyons, a think that this Bill is soundly based on the solicitor, has provided some assistance to the deliberations of that working party and I think operators but was not an ongoing participant that is a very good base. If the Bill needs to be in the working party's deliberations. The revisited I am sure the Minister will do so, but meetings of the working party were facilitated over the years a lot of Ministers have put their by Beth Mayne and Damien Negus, mediators foot in the water and were not game to have a from the Dispute Resolution Centre in go and make sure that these amendments Brisbane. Officers from the Office of Fair were passed. Trading, while participating in the discussions, attended as observers. This was to enable Mr SANTORO (Clayfield—LP) (5.37 p.m.): those who live in the villages and those who I rise to support my colleague and shadow operate the villages to sit down and iron out as Minister the honourable member for Noosa. As many of these problems or issues that they I do so, I think it is important to recognise two saw as problems as possible and to agree on important threshold issues. Firstly, people as much as they possibly could. buying into a retirement village scheme are buying not just into a different form of The working party first met on 18 August accommodation but into a different lifestyle, 1998 and presented a report titled Heads of with all of the advantages and disadvantages Agreement—Retirement Villages Legislation that flow from it. Secondly, the number of Facilitation to the Minister in February 1999. retired Australians is estimated to grow from This document identified the areas in regard to around 12% of the population at the moment which consensus had been reached. It was to approximately 20% by 2030. Not only that, smart to get everybody to agree on as much but at the moment only 3% of Australia's as possible to start with. mature aged population live in retirement The working party met on eight occasions villages, compared with around 15% in the and the meetings lasted for four hours each. It United States. proved to be a useful mechanism whereby It is clear that there is not only a rapidly operators and residents were able to articulate expanding elderly population but also an their differing perspectives on areas of concern increasing number who are self-funded and work towards mutually acceptable retirees. Many self-funded retirees see these solutions. The dedication and stamina of all villages as providing an alternative and exciting participants in this process was most lifestyle. I am sure that will ensure that the impressive. All members were well prepared for number of Queenslanders opting for the the meetings and no doubt spent many hours retirement village lifestyle will continue to between meetings researching issues and increase rapidly. As I understand it, in excess exchanging documents for comment so that of 20,000 Queenslanders reside in the more the meetings would continue to maintain than 300 retirement villages in this State. momentum. Currently the majority of these villages are A special tribute must be paid to Mr operated by charitable and religious bodies, Grimley, who is the president of Association of but it is clear that the growth in the industry is Residents of Queensland Retirement Villages now funded and spearheaded by private Incorporated. Over the years he has continued capital. 5600 Retirement Villages Bill 30 Nov 1999

The existing 1988 Act, while a significant on many occasions accounts from relatives of advance at the time, is now well and truly loved ones who have either died or have had showing its age. Over the years, this legislation relapses and moved into nursing homes. The has been the cause of significant criticism from relatives have faced a situation whereby the both retirement village residents and owners. proprietor has left the unit vacant, claiming that From the viewpoint of owners, the legislation it cannot be sold, and yet the relatives have was often criticised as being overly prescriptive, been forced to pay ongoing charges. with an undue emphasis on process and form. Essentially, the problems that seem to Delays were a significant problem in the first arise on a regular basis concern a few key seven or eight years, with ongoing battles areas, the first being fees. By that I mean between proprietors or proponents and the entry fees, ongoing maintenance fees and the people charged with administering the deferred management fees. The second legislation. From the viewpoint of residents, the relates to village rules, particularly those legislation was seen as offering far too little concerning pets, visitors, adjustment to protection at point of entry, too little protection structures and noise. The third is the control of at point of departure, too little information, too the sale or transfer of the unit, with particular few rights, too little control on fees or scrutiny problems arising from delays in the sale, the of budgets and no emphasis on dispute price obtained and fees. These are not the resolution. only issues, but these three categories seem There have been a number of reviews of to arise on a regular basis. Any legislation this legislation over the years. The member for which is to meet the needs of the industry and Chatsworth led a team that issued a the aspirations of residents has to deal with discussion paper in June 1992, and the Act these matters. On top of that, it has to be was reviewed as part of the systematic review commercially realistic enough so that it does of Government regulations shortly afterwards. not act as a deterrent to investment in this Yet by the end of the Goss Government, there industry. was not even anything close to a blueprint for It should never be forgotten that there is reform. I say this because the Minister, when recognition now at the Federal level, among all she issued her media release on 21 July which political parties, of the need to encourage self- announced this legislation, said— funded retirement and self-funded retirement "The previous coalition Government living. Far from being a passing fad, privately spent two years making noises about the funded retirement villages are a key situation, but ultimately did nothing to component in retirement accommodation right rectify it." now and will become very much more The reality is that, under the coalition important in the future. As a Parliament, we Government, two draft exposure Bills were need to be keenly aware of passing legislation released for comment. The Bill that we are that not only is fair and equitable but which debating today is largely based on those Bills. also recognises the commercial realities of this The coalition was in Government for less than sector. two and half years, yet it did more than the The flip side of this is that mature Labor Party did in its six and a half years in Queenslanders who are self-funded retirees Government. And this Minister and this and who opt for this lifestyle are absolutely Government took over 12 months to introduce essential to the capacity of Governments to their own legislation which was, in fact, largely continue to offer social services to those most based on the efforts of the coalition. I mention in need. In short, the self-funded retirees need this only to put this matter in perspective and to be looked after because they are relieving to ensure that, while I support progressive and the State of a significant financial burden. It is strong retirement villages legislation, it would imperative that, if the retirement village be an absolute travesty of justice if the Minister industry is to continue to grow, this segment of or anybody else from the Labor side society has confidence that by entering a attempted to rewrite history, as we are seeing village they or their relatives will not be ripped more and more often these days. off and that they will experience a lifestyle Before commenting on some of the which is worth the significant capital investment clauses in this Bill, I recognise how difficult it is required. to craft legislation that meets the aspirations of My colleague the member for Noosa has the various parties. There is no doubt a lot of already given a very detailed and very very genuine concern from people in worthwhile analysis of the Bill and pointed out retirement villages and their relatives about a raft of problems which, as he said, warrant unfair practices that have arisen. I have heard the Minister seriously considering the 30 Nov 1999 Retirement Villages Bill 5601 withdrawal of this Bill. I will not go over the a very large Bill which has a host of seeming points he has made, except to note that there paradoxes and which will not resolve many of appears to be considerable community the issues which have bedevilled the industry discontent with this Bill on the Sunshine Coast. over the past decade. And in criticising the In fact, there is community discontent with this Bill—as the honourable member for Noosa Bill right across Queensland. and shadow Minister has done—he is As the honourable member for Noosa absolutely right, and he is to be supported by stated in his concluding remarks, the Minister all reasonable members within this Chamber. addressed a meeting at Buderim Garden So turning to the main provisions in the Village on 14 July, which was organised by the Bill, I am pleased to see that there will be a member for Nicklin and was attended by more more streamlined registration process. As I than 200 people. In a letter to the Sunshine mentioned, at various times the current Coast Daily of 20 July, P. G. Phillips wrote— legislation, which requires a retirement village "Despite the presence of some big scheme to be approved by the Registrar of guns from the Department of Fair Trading, Retirement Villages before a residence the answers to residents' questions were contract can be entered into, has been unconvincing and of no comfort justifiably criticised for being overly bureaucratic whatsoever to aggrieved residents." and overly prescriptive. I know that things have improved over the past few years, but it is The letter then goes on to say— clear, from the viewpoint of developers, that "Commissioner for Fair Trading, Ulla the current provisions are in need of significant Zeller, must have had her tongue in her overhaul. I note that, at the moment, religious cheek when she remarked that people did and charitable organisations can apply for an not want governments interfering with exemption from all or any part of the legislation their right to enter into contracts. and that there is also the ability for persons to Interference by government is precisely apply for a village to be declared exempt. In what residents do want: interference to addition, section 11 ensures that nursing override the ability of owners to keep ex- homes are not covered. residents or the estates of deceased residents waiting for years for any financial Under clause 229, current exemptions return from the vacated unit; interference can continue for up to two years. However, to stop owners from being able to there does not appear to be any power to continue charging the monthly exempt in the future, and the question I have maintenance fee to ex-residents or the is whether blanket coverage will cause estates of deceased residents for years problems and whether the scheme of the after the resident has left or died." legislation can be appropriately applied in an exhaustive fashion to non-charitable privately I quote from this letter to highlight the degree run homes, charitable homes and even of concern about the Bill that continues to nursing homes. The only exemption that I can exist. see applies to premises under the Mobile It is clear that this legislative exercise has Homes Act. I might add that while the major not satisfied many residents or developers; portions of this Bill would not have been and while that is not surprising, what does appropriate for this style of living, quite a concern me is the vague drafting of much of number of protections could have been the legislation. There is a series of terms used applied. The fact that mobile home residents in this Bill, some of which the member for have again been overlooked is another Noosa highlighted, which will only be puzzling and disappointing matter. So I would productive of litigation. There are broad appreciate some comment from the Minister approaches adopted which may or may not be on the practical implications of applying the Bill appropriate to all retirement villages. There is a across all types of institutions. I support all significant retrospective component—yet bodies being subject to fair legislation and all drafted in a way which has alarmed some elderly Queenslanders given protection. developers and failed to appease many However, I query whether this Bill will be residents. appropriate and relevant to all institutions. So at the end of the day, I believe that The third point that I make is that the the Bill is still riddled with problems and exemption from the Anti-Discrimination Act ambiguities. I concede—and I will soon point granted in clause 26 to allow a scheme out—that it contains many advances on the operator to discriminate on the basis of age to current law. Any advance in the law in this limit residents in a retirement village to older critical area is to be supported, and I do so. members of the community and retired But all of these advances are in the context of persons is needed. Likewise, I am pleased 5602 Retirement Villages Bill 30 Nov 1999 that a specific minimum age has not been set. I know that the existence of the charge Obviously, a situation could arise whereby one has caused problems for some developers, partner is over the minimum age and one is particularly with banking institutions raising a below. Taking a typical example, if the host of issues about which security had greater husband is 55 and the minimum age for priority—the mortgage, or floating charge or residents is 55, problems will occur if his wife is whatever or the statutory charge. In fact, in the 52. Nevertheless, I note that the term "older past some developers have claimed that the members of the community" is not defined, existence of the charge has acted as an and no statutory examples are provided. I impediment to the raising of much needed would be very interested if the Minister could capital. However, I think that the existence of provide some comments on the intended age the charge is essential for investor confidence, scope of this phrase. but there needs to be greater flexibility in its One reform I am particularly supportive of application. is the prohibition of a scheme operator from I note that clause 116 allows the chief exercising a limited, general or enduring power executive to exempt the application of the of attorney except in specified circumstances. statutory charge where the scheme operator is There is obviously a risk of a major conflict of a religious or charitable institution, or because interest arising and, in addition, there is also the chief executive is satisfied that the scheme the problem of inequality of bargaining power. operator will provide another security to secure The very fact that an elderly person who may the rights of residents. I ask the Minister what be suffering from dementia could be prevailed sort of security is envisaged, and are upon to give a scheme operator a power of guidelines for the exercise of the chief attorney is a situation that cannot be tolerated executive's discretion going to be prepared or allowed to arise. and disseminated to applicants? One other reform which I also support is The other point that needs to be the increase in the cooling off period from explained very carefully is the impact of clause seven to 14 days. I can appreciate concerns 230. This clause allows for the release of that some people would have with this, certain existing charges where, for example, especially when one considers that in Western an existing retirement village is not a Australia only five working days is provided for retirement village under this Bill. I would like and in Victoria it is only three working days. the Minister to explain which retirement villages Nevertheless, there could be few decisions will be no longer covered by this Bill, how many that people can make in their lives entailing of these are there and what steps are in place such a large capital investment, ongoing fees to ensure that there is adequate consumer and charges, dramatic change in lifestyle and protection for people residing in these villages. copious and legally difficult documentation, Another point of concern relates to public than going into a retirement village. information documents. It is pointed out in Some people entering into these Legislation Bulletin No. 6 on this Bill at page contracts may need to speak with their 14 that— families, and may need to get special advice, "The proposed Queensland especially on taxation, health and social legislation does not appear to specify how security implications and the like. The long before entering into a resident extension of the cooling off period to 14 days contract a prospective resident should be will cause problems for some retirement village given a copy of a relevant public schemes, but I think that if it results in fewer information document." disputes and fewer unhappy people in villages, The Bulletin also highlights that under the it is a good investment for the industry. Victorian legislation a 21-day period is One matter that has often been the specified. subject of controversy in the past is the I ask the Minister to address this matter, requirement in Part 4 of the existing Act of a as it appears to be a discrepancy that could be statutory charge over the whole of the productive of problems and disputes. As I retirement village land. This charge is designed mentioned, one of the greatest areas of to secure the performance of each contract dispute in the industry relates to the sale of and moneys payable in relation to residence residents' units, particularly as most residence contracts. The existence of a charge is of contracts have a standard provision giving a particular importance to people who only have retirement village operator the exclusive right a licence to occupy, because in the event of a of sale. Problems that have arisen include the village getting into difficulties they would only resale value of the unit and the period of time be in the position of unsecured creditors. it takes to actually sell. 30 Nov 1999 Retirement Villages Bill 5603

Both of these issues are dealt with in the concessions resulting in a Bill full of seeming Bill, and I am pleased that the legislation contradictions and ambiguities. provides that if the unit has not been sold in In that context, the honourable the six months and the resident has not been paid shadow Minister, the member for Noosa, was an exit entitlement, the former resident may absolutely right when he asked the Minister to engage a real estate agent to sell the seriously consider doing something to this Bill premises. My concern relates to feedback I before she puts it up for a final vote in this have had from residents that some real estate place. We all acknowledge that drafting a Bill agents are not interested in becoming involved to govern this critical industry is a very difficult in such sales. task. I appreciate and acknowledge that. For example, I draw the Minister's However, I share the view of the honourable attention to the letter I quoted from the the shadow Minister that the Bill produced by Sunshine Coast Daily where this criticism is the Government is a very poor drafting effort. also raised. Why is there a limitation on only For me, it is quite a disappointment. real estate agents selling the unit? Why are Mr MULHERIN (Mackay—ALP) not ex-residents allowed to sell it themselves or (5.55 p.m.): The retirement village industry in make arrangements suitable to their needs? Queensland is currently governed by the Are there any impediments under the Retirement Villages Act 1988. In the past 10 Auctioneers and Agents Act or Regulations years there has been rapid growth and that would impede such a sale by a real estate expansion in this sector, especially in the Gold agent—or for that matter by an auctioneer? I and Sunshine Coast regions of our State. With will be interested to hear from the Minister. an ever-increasing ageing population, My final comment relates to the formation Queensland is expected to see enormous of residents' committees. This right currently growth in this sector over the coming years as exists and the new Bill continues to allow this the ageing in our community opt for the basic right. However, as the Minister should security of retirement villages. know, one of the main concerns with the In the Mackay, Whitsunday and Bowen current arrangements is that there is no regions there is great potential for this industry obligation on management to deal with, act to develop rapidly from a relatively small base. upon or even respond to matters raised by A study commissioned by the former Mackay residents' committees. Regional Health Authority into ageing found Unfortunately, under this Bill, while a that by the year 2011 the region's population residents' committee is charged with dealing of over 65 year olds will dramatically increase with a scheme operator on complaints or by 90%. If this is the case, no doubt there will proposals or day to day issues, there is be an accelerated expansion of this sector in nothing at all in the Bill requiring management the next few years to provide the ageing in the to respond to complaints raised. The Minister Mackay, Whitsunday and Bowen regions with can correct me if I am wrong, but this appears first-class retirement villages taking advantage to be a serious omission and undercuts the of the natural beauty the region has to offer. worth of residents' committees. If they are not The reason for this Bill is that the current just going to be "talking shops" and can Act has failed to address problems that have actually play a constructive role in helping to arisen for operators and consumers alike in sort out village issues and problems, then their this industry. This Bill hopefully will address interrelationship with management should be these problems. The Minister has outlined spelt out much better than is the case in this various aspects of the legislation. I wish to Bill. speak briefly on restrictions on the grant of In conclusion, I am pleased that this Bill is power of attorney provisions of the Bill which being presented to the Parliament. I will provide consumer protection to resident acknowledge that the Bill contains a number of unit owners. If a retirement village operator has long overdue reforms. I agree with the been granted a power of attorney by a honourable shadow Minister that these are the resident of the village, the operator will be reforms that the coalition highlighted in the prohibited by section 92 from exercising it 1996 and 1997 exposure draft Bills. We except in three narrowly defined cases, should be receiving credit for that action. namely: if the resident is a relative of the However, as the honourable the shadow operator; when the power is granted for a Minister has pointed out, the Bill is still a great purpose under the Body Corporate and disappointment and has all the hallmarks of an Community Management Act 1997; or when initiative produced by a committee at the power is exercised to surrender a lease for loggerheads, with horsetrading and the benefit of the resident. 5604 Tree-clearing Guidelines 30 Nov 1999

The purpose of this provision is to protect "Recognising the threat of mandatory residents who may be in a vulnerable position tree-clearing guidelines and the and who may find it difficult to resist pressure unresolved question of compensation for from an operator to grant the operator a power loss of property values and viability, this of attorney. In some cases, complaints have State Parliament supports: been made on behalf of residents that the (1) protecting Queensland's environment effect of having granted an operator a power and putting an end to 'panic clearing' of attorney has been to put out of their hands by declaring a moratorium on any any continuing ability to control the terms of plans to introduce mandatory tree- their participation in the operation of the clearing guidelines on freehold land; village, including rights to reside there. (2) the introduction of voluntary, The retirement villages working party, scientifically-based tree-clearing comprising representatives of both residents guidelines on a regional basis to be and operators, supported the inclusion of a prepared over the next 6 months; provision to restrict the ability of operators to act upon a power of attorney granted by a (3) the State providing full compensation resident in order to protect the rights of for any loss in property value or residents in retirement villages. It can be viability for the protection of areas of argued that residents are already protected, high conservation value; when granting a power of attorney, by the (4) the State Government and industry legal requirements that a witness must sign groups conducting an education the power of attorney and certify that the campaign to inform producers of the resident was acting freely. However, residents voluntary guidelines and were very much in support of the restrictions, recommended practices; and operators accepted the provision, subject (5) continued satellite monitoring by the to an exception being permitted to facilitate State Government and collaborative the process of having a lease surrendered in scientific studies with industry to the case of a termination of a resident's ensure such guidelines facilitate contract. sustainable vegetation management; Residents will continue to have a number and of options for granting a power of attorney, (6) a commitment by the State including a relative, the Public Trustee, a Government that if such studies solicitor, the retirement village scheme lawyer prove to result in sustainable or any person other than the operator. The vegetation management practices restriction on granting a power of attorney to being adhered to, the voluntary tree- an operator is recognised as a possible clearing guideline program be disadvantage for a few, but is for the purpose maintained." of protecting the majority from the unscrupulous minority. The issue of developing a good agreement for tree-clearing guidelines on I wish to congratulate the Minister and her freehold land in this State was always going to department on their efforts in getting all the be an awkward and tough job for whoever was stakeholders to the negotiating table by the in power. There was always going to be a innovative use of the Alternative Dispute significant natural reluctance from freeholders Resolution Service. I congratulate them on to constraints on their land management reaching an agreement, thus enabling the Bill practices. The fact that pastoral groups to be brought before the Parliament today. As representing freeholders accepted a members know, there have been two previous responsibility to engage the process is a great unsuccessful attempts to introduce similar credit to them. Obviously, the role of legislation since 1996. I believe that this new Government was to respect that and, in return, legislation will address the shortcomings of the to be up front in relation to the clear obligation old Act. for compensation for lost production where Debate, on motion of Mr Laming, clearing was restricted by any negotiated adjourned. outcomes. Obviously, restrictions on clearing mean restrictions on productivity. Restrictions on TREE-CLEARING GUIDELINES productivity mean restrictions on income. The Hon. R. E. BORBIDGE (Surfers biggest and an incredibly obvious short-term Paradise—NPA) (Leader of the Opposition) danger in the negotiation process was always (6 p.m.): I move— going to be that poor signals from Government 30 Nov 1999 Tree-clearing Guidelines 5605 would lead to a self-defeating outbreak of pre- scaremongering by the Government that has emptive clearing. That is precisely the outcome contributed mightily to the problem that we that the immaturity and incompetence of this now confront. I refer to the Premier's credibility. Government has brought about. For the benefit of the House, I table the seven- Their first major mistake was their page overview of the Australian Greenhouse belatedness in picking up issue. The Office's 1997 national greenhouse gas agreement with the Commonwealth on moving inventory, which was published just a few towards a negotiated outcome was signed by weeks ago in September. It accepts the very me on 5 November 1997. The first meeting of latest assessment on greenhouse gas impacts my regulatory framework for vegetation in Australia by the Commonwealth management task force was on 7 November, instrumentality charged with undertaking those within 48 hours of that signing. The target was assessments. The opening page states— to have a report by June 1998. Our emphasis "Land clearing emissions currently was on a commonsensical, achievable, are not included in the national total due negotiated outcome with respect to the rights to continuing uncertainty in the estimates. of freeholders. The election interfered with The current best estimate of land clearing that, but a great deal of the hard work was emissions in 1997 is 65 million tonnes of done. All that was needed from the new carbon dioxide equivalents—down from Government was momentum to maintain 103 million tonnes in 1990." those good-faith negotiations. In fact, the Allowing for a considerable margin for error in situation, let alone common decency, what is obviously a very difficult area of demanded that. However, this Government did science, in that year there was, in fact, a not pick up the ball until March. In all the significant reduction—almost 40%—in the circumstances, that was an inexcusable delay. amount of greenhouse gases emerging from It was a major factor in the increased clearing, tree clearing in this country. In other words, or at least increased applications for clearing, when the coalition was handling this issue, that the State has since experienced. there was no panic clearing, because land- Understandably, the delay shook the holders had confidence that their concerns confidence of industry. Another major factor in were being given proper consideration. promoting those applications and in bringing The fact of a decline in greenhouse about the crisis we now have has been the emissions from tree clearing does not compute ridiculous performance of Imogen Zethoven of with the doom and gloom assessments of the the Queensland Conservation Council, whose members opposite, which has bred doom and outrageous demands, given the assumed and gloom. It does not compute with the real close alliance between the QCC and the propaganda that the member for Brisbane ALP, have helped immeasurably undermine Central and the member for Everton push confidence in the bush in achieving a sensible around the newsrooms that Queensland outcome. Add to her contribution the lack of accounts for 80% of tree clearing and 20% of performance by the Minister for Environment national greenhouse gas emissions. According and the inability of the Premier to resist a to the Commonwealth greenhouse data, forest stunt, and we find that the greatest and grassland conversion right across Australia environmental vandals in the recent history of contributed a gross 19%, net 15%, to this State are not farmers applying for tree- greenhouse gas creation in this country. clearing permits, rabbits or feral pigs, but the Another area in which numbers have member for Brisbane Central and the member been simply fictionalised by the member for for Everton. To the extent that there has been Brisbane Central and the member for Everton panic clearing, they are chiefly responsible. and by Ms Zethoven in their bid to generate In fact—and this is the ridiculous irony— panic clearing in this State concerns the the extent of that clearing may not be and emotive figure of 340,000 hectares of land probably is not anywhere near the level that cleared each year from 1995 to 1997. The has been counterproductively claimed by the SLATS fact sheet from the Department of Government. For example, in one of the most Natural Resources carries this qualification— irresponsible of his many irresponsible and "The proportion of clearing which was inflammatory statements on this issue, the for regrowth control is still being fully Premier has claimed that 20% of the nation's determined. However, preliminary results entire greenhouse emissions have occurred as indicate at least 18 per cent of 1995-97 a result of land clearing in Queensland. That clearing was for regrowth control. Further number is simply not sustainable. It is simply studies of historical satellite imagery may part of the silly, immature, counterproductive confirm that it was much higher than this." 5606 Tree-clearing Guidelines 30 Nov 1999

So for starters, we can at least discount the on his hands that will be totally of his own 340,000 hectares by 61,000 hectares to making. 279,000 hectares. As DNR data for clearing Hon. V. P. LESTER (Keppel—NPA) applications for 1998 shows, upwards of 80% (6.10 p.m.): I have great pleasure in seconding of that 1997 clearing could, in fact, have been this motion, which provides a breaking of the for regrowth. nexus that currently exists in this State as a Obviously, the most disturbing numbers— result of the appalling manner in which the the genuinely disturbing numbers—are in Beattie Labor Government has handled the relation to the current year. Up to August, the issue of vegetation management. One would department had received applications for think that the Premier would recall the mess clearing 225,000 hectares of land not that the Goss Government created when it previously cleared and 164,000 hectares of decided to introduce tree-clearing controls on regrowth. I suggest that, on any sane reading leasehold land. One would think that Mr of the data that is available, if we have a Beattie would remember the protests and the significant problem in relation to clearing, it is street march that took place outside the on the basis of the permits that have been Cabinet meeting at Emerald. One would think issued so far this year, not on the gratuitous that those opposite might have learnt from the distortion by the Government and others of way that the former coalition Government earlier data. I lay the responsibility for that cleaned up the Goss mess and developed a outbreak comprehensively at the feet of the practical vegetation management framework current Government. It has consistently that had the support of industry and that misrepresented data in a manner that could resulted in sustainable levels of clearing of not have been more effective in sowing panic leasehold land. Sadly, the Beattie Government and bringing about a clearly undesirable has not learned those lessons. outcome had it been designed specifically to As my colleague the Leader of the do so. Opposition pointed out, when the Borbidge In summary, the Government started Government left office, the issue of vegetation inexcusably late on this process. It has management on freehold land was being irresponsibly consistently misrepresented the negotiated sensibly, coherently and data in a way that was so biased that it was scientifically in a genuine process of certain to bring about the outcome that we consultation with rural industry, local now confront. It has irresponsibly government and, indeed, other groups. misrepresented the Commonwealth, which is However, since the change of Government, we on record as indicating a preparedness to have witnessed a gradual unravelling of that engage the compensation issue if approached work. That has only been surpassed by the professionally and not in the ridiculous, unravelling of the trust that Queensland land- immature fashion that we saw at the weekend. holders initially may have had in the Beattie The Government has also irresponsibly Government. Instead of seeing genuine misrepresented the rural community, upon negotiation and goodwill, we have witnessed which it must rely for any sensible outcome on one of the most scurrilous campaigns of what looks increasingly like more bush bashing misinformation and scaremongering against to curry electoral favour in the city than a land-holders. The Government has made serious attempt to deal with the very real and those people out to be crooks. It has not cared very important issue at hand. Above all, it has one bit about those people. A campaign was been an immature performance by the waged in the metropolitan media that was Government. designed to victimise land-holders and allow My appeal is simply this: go back to the the Beattie Government to drive its own negotiating table and talk sensibly to the agenda, irrespective of the needs and the representatives of primary producers. If the rights of those land-holders. For goodness' Government is prepared to do so, it will get a sake! Those people produce our food and it is sensible outcome. The Government should about time that members opposite woke up to talk sensibly to Robert Hill. There should be no that fact. more silly faxed demands for $100m by close The trail of misinformation and of business Sunday. That ultimatum reached scaremongering leads right to the office of the his office at 8 p.m. Saturday. That is juvenile member for Everton, the current Minister for stuff. This issue is far more important than Natural Resources. His performance is topped another hubris-driven headline for the member only by the compliance of the Beattie for Brisbane Central. The Premier should stop Government with the uncompromising, doing stunts and start doing the job, or he will unjustified and scientifically baseless demands have an environmental and political disaster of certain elements of the Green movement. 30 Nov 1999 Tree-clearing Guidelines 5607

Added to that are various stunts of the Premier entered into by the Coalition Government such as his weekend ransom demand. It is no in 1997, this Parliament calls for— wonder that so-called panic clearing has (1) the Federal Government to happened. immediately commit $100m to This motion sets about providing a support Queensland's rural and positive and practical alternative to the manner regional agricultural producers in in which the Beattie Government is handling a protecting vegetation, as an essential difficult issue. Indeed, the Government cannot step in sustaining Queensland's handle the issue, even though we have told it farming and grazing lands. how to do so. The motion recognises the rights (2) the urgent implementation of that are attached to freehold land. People pay consistent, common sense and extra money for freehold land and they practical statewide guidelines for deserve some rights. People who own freehold responsible land management land look after it, because they know they practices to prevent land have to. It is the most secure tenure available. degradation, maintain the The motion recognises the fact that freehold productivity and profitability of rural land-holders have paid a premium for their lands and protect our State's land because of the ownership rights and biodiversity; and security of tenure that it confers. It recognises that freehold land-holders have a right to (3) that there be continued satellite manage their land as they see fit. monitoring by the State Government and collaborative scientific studies The motion also recognises that with industry to ensure such everybody has a responsibility to manage their guidelines facilitate sustainable land sustainably. It recognises that, because vegetation management.'." of the Beattie Government's handling of the issue, there has been an increase in so-called In moving this amendment I make it clear panic clearing. It recognises that, given the that tonight we are at a pivotal moment in rights conferred with freehold title, if the Queensland's political history. The amended Government or the community wish to impose motion deserves the unanimous support of all certain conditions or restrictions on the use of members of the House because it provides an that land, the land-holder is entitled to some unambiguous opportunity for all members to form of compensation. Importantly, it declare where they stand on rural and regional recognises that land-holders are focused on Queensland. Any member who votes against managing their land sustainably and, in the the amended motion is demonstrating his or overwhelming majority of cases, are doing so. her complete disregard for rural Queensland, and that will be on the record for all to see. The approach of the Beattie Government to the issue of freehold vegetation This is not just about vegetation management is not working and it will not management and greenhouse. It is about work. If the Beattie Government is serious providing the essential financial support for our about addressing the issue of tree clearing on farmers and graziers to continue their freehold land, it should support this motion magnificent contribution to our State's very strongly. The motion restores goodwill and economy. If members of the National Party commonsense to the vegetation management and the Liberal Party—who have been debate. It provides an opportunity for the State conspicuously quiet as we have attempted to to work with land-holders to achieve a sensible, get the Commonwealth to share this scientifically based practical framework for responsibility—are genuine about supporting vegetation management on freehold land. In rural Queensland and are not just interested in view of what is happening, I call on all delivering empty rhetoric and scaremongering, members to support this motion. they will support the amended motion. They will demonstrate to our farmers and graziers Time expired. that they support them in their call for financial Hon. R. J. WELFORD (Everton—ALP) support to improve their land practices. (Minister for Environment and Heritage and Minister for Natural Resources) (6.15 p.m.): I All of the stakeholders involved in the move the following amendment— process of defining new guidelines for responsible land management practices are "Delete all words after 'Recognising united in this call. They are united in this the' and insert the following— Government's call on the Federal Government 'principles and the mutual obligations of to commit $100m to support our rural and the NHT Partnership Agreement between regional agricultural producers as an essential Queensland and the Commonwealth, step in sustaining our farming and grazing 5608 Tree-clearing Guidelines 30 Nov 1999 lands. However, the only ones who do not these problems in a way that builds in long- seem to be willing to support the bush are the term sustainability and economic security for members of the National Party and the Liberal the backbone of our State, the agricultural Party. Here is their chance. By 7 o'clock industries. Good land-holders expect that the tonight, the people of Queensland will have an Government will provide leadership. They want opportunity to see just how serious the the Government to provide guidance and that Opposition is about rural Queensland or is what we will do. whether it is more interested in empty rhetoric Time expired. and cheap votes. The challenge is there. A vote for the amended motion is a vote in Dr CLARK (Barron River—ALP) support of our farmers and graziers. If they (6.20 p.m.): It gives me great pleasure to rise vote against the motion, we will all know the tonight to second the Minister's amendment. type of support that the Opposition offers to As the Minister has said, this is a unique the bush. opportunity for this Parliament to demonstrate support for rural Queensland, and it is unique When we came to Government, we in many ways. Firstly, it is an opportunity to put moved immediately to consult with rural Queensland's agricultural industry on a industry. I visited rural land-holders. I sustainable footing by introducing responsible conducted a tour throughout western vegetation management principles. Excessive Queensland with the United Graziers and inappropriate land clearing is not a Association. I gave them a commitment to problem that is going to go away and we have consult. For the better part of 12 months we to deal with it now if we are to protect our have consulted them on this issue. I was not State's biodiversity and its food bowl for all going to do what many in the Opposition time. wanted to accuse us of doing, which was to consult in the dead of night. Throughout this Secondly, it is an opportunity to access year we have consulted with rural industry Federal funds, which in two or three years' time leaders. I take this opportunity to thank rural simply will not be there. It is an issue that industry leaders for their genuine commitment Governments, either State or Federal, have to to that consultation process. They made the deal with, and quite properly this best effort to resolve this issue and we are Government—the Beattie Labor going to resolve it very soon. Government—is acting now when the time is right. At the moment the Federal Government Industry leaders and I regret that some does have buckets of money to draw on. One people have abused the privilege of the of those buckets is the $580m set aside for consultation period that we have undertaken greenhouse gas reduction measures. The and have engaged in pre-emptive clearing. Commonwealth also has the Natural Heritage However, that was always going to be the case Trust funds and, of course, the best known in the course of a period when consultation bucket of all is the funds from the sale of was occurring. Telstra. The Beattie Government has taken on We made it clear to land-holders the challenge of introducing sensible land throughout the State that we need a process management guidelines—something the that provides guidelines for good land Opposition failed to do. It is interesting that its management that are consistent across the date for bringing in its guidelines was June of State. Good land-holders want this legislation. 1998. Was that not the same date for the Good land-holders want guidelines that give regional forest agreement? It failed there, too. them principles for sound land management. Now, at a critical time when we need an They recognise that we do not want to go indication from Canberra of their financial down the path of the southern States where support, there is silence. land is being degraded. They want to protect Let me just remind the members of this the productivity of our rural lands so that the House why this issue is so critical, why action is long-term economic security of rural industry needed now. There are three fundamental can be sustained. reasons why the issue of land clearing must be The Leader of the Opposition said that we addressed. Firstly, land clearing is the greatest should go back to the negotiating table. We single threat to biodiversity in Australia, never left the negotiating table. We are still at threatening plant and animal species with the negotiating table and we will get a result. extinction. Land clearing results in change to When in Government, the Opposition failed to the watertable, bringing mineral salts to the get that result. Opposition members proposed surface, creating saline soils and rivers, as is much and delivered nothing. We are going to so evident in the Murray-Darling basin, parts of consult with rural industry and work to resolve which are possibly damaged beyond repair 30 Nov 1999 Tree-clearing Guidelines 5609 with serious impacts for agricultural production What is the critical element that we need affecting the whole of the rural economy. Of now to ensure the success of the current course, land clearing does result in increasing negotiations? The critical element that we greenhouse gas emissions at a time when need now is without doubt the ability to provide Australia must reduce its levels. compensation to landowners if their ability to make money from their land is reduced by Members opposite had some debate and virtue of tree-clearing guidelines, and I fully some squabbling about what the actual figures support their right to compensation. That is are, but I challenge any member on the other why this amendment to the motion calls on the side of this House to challenge those Federal Government to immediately commit fundamental reasons why we need to address $100m to support Queensland's rural and land clearing. I hear no response! regional agricultural producers in protecting I am not going to quibble with those vegetation as an essential step in sustaining figures that we have heard here tonight. I am Queensland farming and grazing lands. If the going to read from a letter written by eminent coalition votes against this amendment, it will scientists—people to whom this community be demonstrating its disregard for rural can look for accuracy and expertise in this Queensland and it will stand condemned as debate. The letter, in the Courier-Mail of 19 yet again putting political point scoring ahead November, states— of the interests of Queensland. "A moratorium on land clearing is the Mr HOBBS (Warrego—NPA) (6.25 p.m.): I best way to arrest declining biodiversity refer to my speech during the Matters of Public and ecosystem health, as well as Interest debate this morning. The Minister providing for sustainable agriculture. A stated that the latest figures showed that wealth of literature points to land clearing 340,000 hectares of land were cleared from as the single greatest threat to 1995 to 1997, and that there was 18% biodiversity. The state of the environment regrowth in that overall area. The interesting report tells us that the deterioration of thing is that 289,000 hectares were cleared critical ecosystem services, especially soil between 1991 and 1995, with regrowth of and water quality, will accelerate if clearing between 60% and 70%. Why has the position continues. changed under the Minister's figures? I think that the Minister has manipulated the figures, Clearly, these trends threaten to just as he did with the RFA process. What deprive future generations of the high happened to the other 47% of regrowth? Why standard of living enjoyed by has the figure suddenly changed? Queenslanders today. I really believe that the Minister has The outcome of the negotiations manipulated the figures and has not told the taking place between stakeholders in this truth in relation to tree clearing, and it is a very debate, including legislative change, will serious matter. There is 159,000 hectares of play a large role in determining timber that should be accounted for which has Queensland's future environmental and not been accounted for. Forty per cent of all economic health and wellbeing. timber cleared reverts to regrowth. If members opposite want to go through the figures, I point In the meantime, we regret the out that of 340,000 hectares, 40% reverts to failure of leadership of the state's primary regrowth. The figures are all there. That leaves producer groups, who have not seen fit to 204,000 hectares. If 65% of that is regrowth, speak out against the unnecessary and or 132,000 hectares, therefore that is 61,400 self-destructive panic clearing taking place that is left cleared. That is 0.0008% of the 72 on a massive scale." million hectares of forest—woodland—in That letter was signed by Professor Roger Queensland. Kitching; Professor Ian Lowe, Griffith Presently, research has identified the University; Dr Dana Bergstrom, University of Queensland grazing industries as a net sink for Queensland; Professor Harry Recher, Edith greenhouse gas and carbon dioxide; it is not a Cowan University, Perth; Dr Richard Hobbs, net source. Research also indicates that President of the Ecological Society of thickening of Queensland vegetation absorbs Australia; and Associate Professor Brendan approximately 140 million megatons of carbon Mackay, Australian National University, dioxide each year, more than double the Canberra. Those are the people who are volume being emitted by the land use and telling members opposite what they want to forestry sectors. Therefore, the previous ignore, hoping that it is all just going to go national greenhouse gas inventory that seems away. However, it is not. to have been quoted today which attributes 5610 Tree-clearing Guidelines 30 Nov 1999

24% of national emissions of carbon dioxide to "This information is yet to be land use and forestry industries is incorrect. I independently received and should be state again: it is incorrect. The Minister was considered preliminary in nature. It is not quoting figures to the effect that Queensland expected that dry land salinity in clears something like 80% of vegetation in Queensland will dominate the landscape Australia and attributing 18% to land clearing within the next 100 years as observed in and greenhouse gas emissions. That is not southern and western Australia." the case. Those figures are incorrect and he Time expired. needs to go back and look at them. Mr PEARCE (Fitzroy—ALP) (6.30 p.m.): The thickening process is there. It is Since this debate started tonight, we have documented. Dr Bill Burrows has done a lot of heard the Opposition trying desperately to work on that. Members must understand that sound like it supports our rural land-holders. in some cases the more trees you have, the Well, the proof is in the voting. Very shortly more degradation you are going to get. That is those opposite will get a chance to show just not always the case, but it is in a lot of cases. how much they care about rural and regional More trees means less grass and more run-off. Queensland. There is no doubt that this issue The trees do not allow the grass to grow. Then of vegetation management is on the minds of the winds come through, creating erosion and our farmers and graziers. The vast majority are the topsoil goes. It is as simple as that. Grass already smart operators who know how to get will bind soil. We need trees and grass in the the best out of their land. They have nothing river system, of course, but in a lot of those to worry about from any new guidelines smaller creeks and gullies grass will actually introduced by this Government. bind them far better than trees ever will. Ever since this Government came to By his amendment, the Minister implies office, it has been open and honest about its that the Federal Minister for the Environment, intentions. Rather than imposing solutions on Senator Robert Hill, claims that we need to land-holders, it began a process that involved carry on with what we started. There was land-holders. An example of the outcomes nothing at all that we did which indicated that achieved through the consultation process is we had to establish guidelines in relation to the agreement that legitimate harvesting of freehold land. The fact is that we were to work private timber grown for commercial harvesting our way through that process. It is a mistruth reasons will be guaranteed. It will be exempted that has been put out by the Minister to the from any regulations on vegetation various industry groups that Robert Hill is management. That agreement has been actually demanding that this occur and that it reached through consultation and occurred under us. It did not occur under us. I understanding. will give that guarantee to anyone. Those Apart from the Vegetation Management opposite are using Senator Hill to push their Advisory Committee, which invited all case. stakeholders around the table, there have Labor's agenda and the conservationists' been meetings all around Queensland—in the agenda is to stop vegetation management. sheds, on properties, in halls—all with the They are using all the arguments relating to purpose of involving land-holders in the tree clearing, salinity and endangered species. process. Stakeholders are involved; they are The reality is that the first increase we have working through the issues. By spending time had was only a spike in the graph, and where in my electorate and speaking with the it has gone up it will come down. The increase Minister, I know that the concerns of land- is simply a direct result of the action of this holders operating beef and grain growing Government's attitude to tree clearing. properties within the Brigalow Belt are being The other argument used in this issue is heard. These primary producers make a salinity, which was mentioned by the member valuable contribution to the State's economy. for Barron River. At the end of the day, the Far from affecting their productivity and Minister said—shock, horror—"What about profitability, we intend to help them do even Nindigully and the 7,000 hectares of salt just better. found?" Guess what? It was 2,000 hectares. It We are all concerned about the few was an old lake. There have never been trees cowboys. We know there are a lot out there. on it. It has been there since time began. There are cowboys out there and there are Landcare people have been working on it for cowboys in here. We all have concerns about the last seven years. It is not a shock, horror those few cowboys who clear the land for the report. The audit report says— sake of clearing land without taking into 30 Nov 1999 Tree-clearing Guidelines 5611 consideration the topography and the likely the show. The Liberals are putting it over impacts. National Party members in Queensland, and Honourable members interjected. they are putting it over National Party members in the Federal Parliament. The Mr PEARCE: These are my own words, Liberals are running the show. The National actually. Party members are nothing in the Federal Indiscriminate clearing of timber leaves Parliament; they have not got the courage to land vulnerable to soil erosion and invasion of stand up to their coalition colleagues. salt, which can ruin fertile agricultural areas. Hon. T. R. COOPER (Crows Nest—NPA) Just a few minutes ago the member for (6.35 p.m.): It is perfectly obvious from Warrego was arguing against that. listening to those opposite how little they know The main issue of concern for me in about tree clearing, the land, the nurturing of central Queensland has been that of regrowth land and the love of the land. They have had areas and what will happen under the new no experience whatsoever and now they are guidelines. I have had discussions with the trying to impose their views on land-holders Minister. I can say to the people in my area of who know better—people who have been on central Queensland that growth areas will the land for generations who have nurtured always be an important factor in the ongoing the land through the love of the land knowing viability of primary production. To put a stop to full well that they have to leave that land better the clearing of regrowth areas would be akin to than when they found it, otherwise they will taking money out of the hip pocket of primary wear the consequences. There is no question producers. Those opposite know that and I about that. know that. I am a case in point. As far as I am The Minister has assured me that land- concerned, I had a green block at Wallumbilla holders who have demonstrated a in the 1960s. I have been there since 1963, commonsense approach to land management for 36 years. I have cleaned that place up. It is through a balanced land clearing strategy park like. There is good timber and grass have nothing to fear. That is what we are coverage. It is certainly going to be left better saying to them, and those opposite are than when I found it. I am doing that scaremongering and trying to change the voluntarily, not because I have been told by whole picture. The Minister is listening. He has people like those opposite who are going to gained a lot of respect for the way in which he send tin Gods out there to tell me how to run goes out into rural Queensland, sits down and my place and what I can do on my place. I listens patiently to what land-holders have to know how it will finish up. Because of the very say. He is respected for that. Because he is actions of those opposite now and later—if doing that, we are going to come up with the they ever get away with this—that love of the decisions and the outcomes that will suit those land will turn to hate. Then there will be people on the land. problems. There is already a problem now with This Government understands the land panic tree clearing going on. It did not start management approach of land-holders in the until those opposite started their interference. Fitzroy electorate and other parts of Those opposite want to do it by Queensland and recognises the important compulsion, by legislation. Those opposite contribution these people make to regional should watch the response they will get. It will Queensland and the Queensland economy. be devastating. There has already been a rush But what we need now to advance this of tree clearing going on now by people who constructive process is support from the would normally not do it. But they know those Commonwealth. It is not Queenslanders opposite are coming. They can see the holding up the process. The Premier has inexperienced people opposite coming and already indicated that the State will make a they believe that Labor is going to make life as meaningful financial contribution. This tough as possible. I want to give a warning Government is providing a fair financial here to the primary producer organisations: if contribution in the interests of rural they are going to be suckered in by those Queenslanders. The coalition should be opposite to double cross their primary producer supporting the Government by pressuring the members, to walk away from them and sell Federal Government into making a fair them short, as they did with native title, then it contribution to this agreement. will again be on their heads. We are going to We have demonstrated a willingness. It is stick up for every land-holder out there. The about time those opposite got out there and vast majority of them are people who want to did the same thing. What those opposite are nurture their land and make sure that they doing are letting the Liberals in Canberra run leave it better than when they found it. They 5612 Tree-clearing Guidelines 30 Nov 1999 are the ones that those opposite want to Government has its way—the regrowth will interfere with. We can take care of the few take over. All the good work that has gone into cowboys mentioned by those opposite. making that a productive place, a place that I Dr Clark: How? Tell us! know I can be proud of, will be wasted. Most other primary producers feel the same. But if Mr COOPER: We can do it by example. we let that country revert to its former We do not have to have legislation. The last condition, the land will be far worse because thing they want is people like you telling them that is the way with regrowth. The land what to do, because you know not what you becomes so unproductive. Stock cannot be do. You do not know what you are doing. You run any more. It cannot be made productive do not know what you are talking about. any more. Producers cannot pay their way any Mr SPEAKER: Order! The member for more. It is all because of people on the Crows Nest will address the Chair. Government side of the House foisting laws upon people such as me— Mr COOPER: The people out there know a darned sight better than the member for Time expired. Barron River. The Greens want it all their own Mr MUSGROVE (Springwood—ALP) way. That is perfectly obvious; we know that. (6.40 p.m.): In moving this motion tonight the They will take a little bit here and place a few Opposition has reached new heights of controls there and, before we know where we hypocrisy. Members opposite need to be well are, just as happened with the RFA, they will aware that Queensland is awake to their have total control. That is the way the RFA is cheap stunts. Our primary producers talk going; that is the way those opposite are going openly about the way the Opposition when in with tree clearing as well. As far as we are Government failed them, how it looked after its concerned, everyone can have faith in the mates and left the average primary producers land-holders out there who know their to fend for themselves. When this motion is business. If we have faith in people and let voted upon on the floor of this House tonight, them know that their judgment is trusted, members opposite have the opportunity to people are more likely to live up to that than if show Queenslanders how they really care we try to force legislation upon them. I know about rural Queensland. The people of that that is the last thing the people out there Queensland will know what they really stand want. for. This Beattie Government has victimised Those opposite had their chance and primary producers. Instead of working with they blew it. They blew it on 5 November 1997, them, primary producers know very well that when they signed the partnership agreement there is a tree-clearing agenda at work. All we with the Commonwealth Government to allow want and all we will support is a voluntary for the release of Natural Heritage Trust funds system and framework as well as a code of to Queensland. That agreement committed practice on vegetation matters. That is the sort the Queensland Government to "reverse the of thing that the people can do themselves. long-term decline in the quality and extent of They are very good at doing that themselves. Australia's native vegetation cover". Tonight If those opposite take that right away from we hear members opposite saying there is no them and force legislation upon them, then problem. We hear them talking about look out for the damage that that will cause to regrowth. They signed up on the basis that the vegetation in this State, and that will be on there was a problem. I will continue to quote the heads of those opposite. from this document. Freehold land is the most secure kind of Mr Lucas: They don't like it. tenure, and producers do pay a premium for Mr MUSGROVE: They do not like it one that. They have their rights. The mishandling little bit. It states that they committed to put of this issue by the Beattie Government— "effective measures in place to retain and because of the threat this Government is manage vegetation, including controls on making to the way freehold land-holders clearing". Opposition members come into this handle their vegetation—has caused panic place tonight and say that it has to be among. Similarly, land values will be forced voluntary, but they signed up. Who signed up? down. Farmers need to be able to rotate the Messrs Borbidge, Hobbs and Littleproud use of their land. They need to be able to signed up to mandatory tree-clearing cultivate. guidelines for the State of Queensland in I have just about reached the point where 1997, yet they have the sheer hypocrisy to I have cleaned up my place. I know that if I come into this place and move this disgraceful leave it and walk away from it—or the motion. 30 Nov 1999 Tree-clearing Guidelines 5613

By signing that agreement they agreed to condemned in this House for the appalling introduce controls on clearing. What did they stand they have taken in relation to this issue. do? They hoped it would go away. This is just No-one on this side of the House believes a like the RFA. When was it due to all come word they have had to say in relation to this good? The deal was done. The work was issue. They are empty vessels looking for done. It was all bubbling up. We were all ready some good ideas. They will be waiting quite to take action. It was due one month after the some time. State election. But rather than make a Mr SPRINGBORG (Warwick—NPA) decision, the then Government called a State (Deputy Leader of the Opposition) (6.45 p.m.): election, because that was an easier decision. I rise to support this motion before the House. And we know what a smart move that was. Listening to the contributions from honourable The facts speak for themselves. It is left members opposite it would be very easy to be up to this Government to take the hard mistaken that land-holders throughout decisions in the interests of all Queenslanders. Queensland go about deliberately degrading Only the Beattie Labor Government and this their land, their asset. In the time I have been Minister will make the decisions the former a member of this Parliament, and even before, Government never had the intestinal fortitude I have not come across one primary producer to make. who has deliberately set out to degrade their I am happy to acknowledge that the asset. Why would they do that? Why would member for Warrego set up a committee with they degrade the thing that makes them a fancy name—the Regulatory Framework viable, that allows them to make a living and Task Force for Vegetation Management—but survive out there in a competitive what did it achieve? Nothing! The honourable environment? member for Surfers Paradise acknowledged The only thing I would say is that the that he set it up 48 hours after signing the consequence of economic downturn, agreement. What did he do for the rest of the economic rationalism and the effects of term? Nothing! commodity prices cause some land-holders Mr BORBIDGE: I am happy to answer the not to be able to put in place as quickly as honourable member's question. they would like remedial action for problems that may have developed over a period of Mr SPEAKER: Order! It is not a question time. That is the only issue I have ever been and answer time. I ask the Leader of the aware of. People out there are very keen to Opposition to resume his seat. take action, but in some cases they do not Mr BORBIDGE: It was a very successful have the resources or the assets to be able to task force. All the work was done. All they had do it. Why would they set out to deliberately to do was follow through. degrade their asset, which they are hoping to Mr SPEAKER: Order! Resume your seat! pass on to their children, grandchildren and even beyond? It just does not happen, Mr MUSGROVE: We on this side of the because these people need to be able to House know what the member intended to make a living. achieve. Nothing! How do we know this? Ever since this Government established the What we are seeing from the Government Vegetation Management Advisory Council the is policy on the run. On the weekend the Opposition criticised the idea from go to whoa. Premier came out and said that no resolution Those on the other side of the House stand would be possible without a Commonwealth and blame this Government for panic clearing. commitment to compensate owners of more Who should we blame for panic clearing? It is than 1.5 million hectares who already held the Deputy Leader of the National Party, who tree-clearing permits. puts out press release after press release Do honourable members know how the trying to scare well-meaning primary producers tree-clearing permit system in this State works? into clearing their trees. He created this crisis, Do they realise that we basically have two not this Government. different types of land tenure and on those two Now is the chance for the Opposition to different types of land tenure we have two make good. It should support this motion and different ways of dealing with vegetation support the call for $100m from the Federal management? On freehold land there are no Government to give us a hand. Those restrictions, with the exception of some issues opposite should not be lap dogs of Canberra. of a riparian nature with regard to clearing on They should stand up for Queensland and for the beds and banks of a watercourse or with the primary producers in this State. They regard to the Nature Conservation Act if there should support this motion or they will stand is an area of high conservation value. That is 5614 Tree-clearing Guidelines 30 Nov 1999 the only restriction. However, we do have very for its actions on this issue, because it does prescribed guidelines when dealing with not understand it. leasehold land. Time expired. Up until Saturday this Government was Mr WILSON (Ferny Grove—ALP) talking about tree-clearing guidelines on (6.51 p.m.): I rise to support the Government's freehold land. The Minister indicated that at amendment. I must say that I am astonished some time in the future he may revisit the that the Liberal Party and the National Party issue of the regional guidelines for leasehold are opposed to the Government's initiative of land. That is his call. That was intended for calling upon the Federal Government to some time in the future. provide $100m to support new tree-clearing On the weekend the Premier came into guidelines in Queensland. I am astonished to this argument and threw a spanner in the hear that members of the Liberal Party and works. I do not know whether it was through the National Party are opposed to the urgent some sort of overt action on his part or just implementation of consistent, commonsense ignorance, but he has now said that all of and practical Statewide guidelines for those people who have jumped through the responsible land management practices. I am hoops, who have been assessed by the astonished that that is where the Liberal Party Department of Natural Resources and the and the National Party stand on this issue. Department of Environment in some If members of the Liberal Party and the circumstances against a very strict set of National Party were right in their assertions criteria—which lay down how many trees or here tonight that voluntary tree-clearing what type of timber can be cleared to a certain guidelines are going to work, they had two and percentage in the region—are at risk of having a half years when the coalition was in power in their tree-clearing permits revoked. How else this State during which they had every do we read that? Not even people who have opportunity to make voluntary tree-clearing done the right thing are safe as a guidelines work; yet unprecedented tree consequence of the way this Government is clearing took place. There was no mention carrying on. We are seeing absolute during that time of mandatory tree-clearing demonisation of primary producers in this guidelines. Members of the coalition certainly State by members opposite, who do not were not saying that there should be understand and do not care about the impact mandatory tree-clearing guidelines. They were this is having on their livelihood. saying that there should be voluntary tree- In my electorate, I am aware of the clearing guidelines. But during that time, when actions of Landcare committees over the past every landowner had the opportunity to adopt 10 or 15 years that have done absolutely a voluntary system, no-one did. In fact, during wonderful work, on a voluntary basis, to bring that time we saw the highest rate of tree about changing attitudes on the part of clearing ever recorded in this State and in this primary producers and graziers with regard to country. looking at sensitive areas. They have taken on The evidence contradicts and defeats the those people, and they have done a really National Party's and Liberal Party's arguments. good job. One of them said to me, "Do you I must say that it is time that things changed. know what? These people have treated us Their attitude—"don't you worry about with contempt. We entered into this in good that"—might have worked years and years ago faith, but we might as well have just continued in the seventies, the eighties and the nineties, to go along and not even consider the but as we come into the new millennium it is operation of Landcare." In effect, Landcare time to make a decision about all has done what we have been seeking to do Queenslanders' interests in this crucial issue. tonight through this motion, that is, to I ask members to look at the history of introduce voluntary tree-clearing guidelines conservation and responsible land that can be assessed after a period. management under the National Party. In This Government is treating those people 1989, when the Goss Government won office with contempt. It is treating them like after 32 years of sorry, sorry Government by schoolchildren. It is not considering them as the National Party in this State, only 2% of the top land managers that they are—out Queensland's biodiversity was protected in there preserving their most valuable asset for national parks—the lowest of any State in future generations. This Government is Australia. Now, just 10 years on—and thanks demonstrating appalling contempt for the to the Labor Governments that we have had in primary producers and the grassroots farmers this State—4% is protected. and graziers in this State. But it will be judged Mr Littleproud interjected. 30 Nov 1999 Retirement Villages Bill 5615

Mr SPEAKER: Order! The member for NOES, 39—Beanland, Black, Borbidge, Connor, Western Downs will cease interjecting. Cooper, E. Cunningham, Davidson, Elliott, Gamin, Goss, Grice, Healy, Hobbs, Horan, Johnson, Mr WILSON: Recently, the State Lands Kingston, Knuth, Laming, Lester, Lingard, and Tree Cover Study—the SLATS data— Littleproud, Malone, Mitchell, Nelson, Paff, Pratt, showed that between 1995 and 1997, tree Prenzler, Quinn, Rowell, Santoro, Seeney, Simpson, clearing in Queensland reached record levels. Slack, Springborg, Stephan, Veivers, Watson. Those facts contradict the blind assertion that Tellers: Baumann, Hegarty members opposite make that a voluntary Resolved in the affirmative. system will work. They are guilty of the fallacy Mr SPEAKER: Order! For any future of wishing it were so. divisions on this motion, the bells will be rung The idea of introducing vegetation for two minutes. management guidelines across all tenures is Question—That the motion as amended not just an issue for our farmers and graziers; it be agreed to—put; and the House divided— is an issue for our urban areas, as well. It AYES, 43—Attwood, Beattie, Bligh, Boyle, Braddy, applies in Mount Nebo, Mount Glorious and Bredhauer, Briskey, Clark, D'Arcy, Edmond, Elder, other places on the D'Aguilar Range, where Fenlon, Foley, Fouras, Gibbs, Hamill, Hayward, recently—in the last three months—1,600 Lavarch, Lucas, Mackenroth, McGrady, Mickel, trees on 440 hectares on Mount O'Reilly were Mulherin, Musgrove, Nelson-Carr, Nuttall, cut down unilaterally by a freehold landowner. Palaszczuk, Pearce, Pitt, Reeves, Reynolds, Roberts, They were cut down many months after a Rose, Schwarten, Spence, Struthers, Turner, development application was lodged with the Welford, Wellington, Wells, Wilson. Tellers: Sullivan, Pine Rivers Shire Council and then withdrawn. Purcell Those trees were cut down—to the NOES, 39—Beanland, Black, Borbidge, Connor, consternation of the entire local community. It Cooper, E. Cunningham, Davidson, Elliott, Gamin, took the Pine Rivers Shire Council—because Goss, Grice, Healy, Hobbs, Horan, Johnson, of the limitations of its local law—six weeks to Kingston, Knuth, Laming, Lester, Lingard, apply a vegetation preservation order. But the Littleproud, Malone, Mitchell, Nelson, Paff, Pratt, Prenzler, Quinn, Rowell, Santoro, Seeney, Simpson, horse had already bolted and 1,600 trees had Slack, Springborg, Stephan, Veivers, Watson. been cut down. Tellers: Baumann, Hegarty The council, quite rightly, had relied upon Resolved in the affirmative. the trust of the landowners. But the problem is that under a voluntary system 95% of Sitting suspended from 7.05 p.m. to landowners do the right thing and 5% do not 8.30 p.m. do the right thing. But who is to say who is going to be part of that 5%? We do not know RETIREMENT VILLAGES BILL until after the event. That is why a mandatory system must be adopted. I call upon the Pine Second Reading Rivers Shire Council to adopt a mandatory Resumed from p. 5604. system through its local law. There must be a Mr LAMING (Mooloolah—LP) (8.30 p.m.): moratorium declared by the Pine Rivers Shire There is probably only a handful of Bills which Council. It should also adopt the Logan City come to the House each year which could be Council's by-law and the Brisbane City described as significant. The Retirement Council's by-law to apply a general Villages Bill is significant from three preservation of trees across the whole shire. perspectives: firstly, the improvements it can This would be an interim step until we reached make to the situation facing many existing Statewide agreement on all these critical residents in retirement villages; secondly, the issues. improvement in the operation of villages in the Time expired. future; and, thirdly, the time it has taken to get to the House. Question—That the amendment be agreed to—put; and the House divided— I do not believe it does the Minister credit to be critical of the former Government for not AYES, 43—Attwood, Beattie, Bligh, Boyle, Braddy, getting a Bill into the House. Firstly, the Bredhauer, Briskey, Clark, D'Arcy, Edmond, Elder, problems and the undertakings go back a lot Fenlon, Foley, Fouras, Gibbs, Hamill, Hayward, Lavarch, Lucas, Mackenroth, McGrady, Mickel, further than that and, secondly, a lot of Mulherin, Musgrove, Nelson-Carr, Nuttall, progress was made during the term of the Palaszczuk, Pearce, Pitt, Reeves, Reynolds, Roberts, coalition Government from which the Minister Rose, Schwarten, Spence, Struthers, Turner, was able to benefit. In fact I requested, and Welford, Wellington, Wells, Wilson. Tellers: Sullivan, was provided with, a briefing by the Minister's Purcell staff after the election at which I apprised them 5616 Retirement Villages Bill 30 Nov 1999 of what I believed were the most significant Perhaps a section can be included which issues. I did this in a spirit of bipartisan recommends strongly that the prospective approach to a problem that should not be resident seek legal advice. This action must be used as a political football. acknowledged prior to the document being Retirement villages are, of course, a enforceable. Also, it would appear that much relatively new concept and are essential for our legal advice tendered in the past was just senior citizens so that they can enjoy their that—legal advice. Surely, with the growth of retirement with others of similar age without this industry, there is an opportunity to enable many of the stresses of running a home which, solicitors to do a training course to equip them in many cases, is larger than they require. This to specialise in this area. It would be lucrative is even more the case these days with fewer for them and provide an enhanced service to seniors living with their adult children because, intending residents. in many cases, both younger adults are in the Members of Parliament, of course, as with work force. any other field of endeavour, mainly hear the There is, of course, a point of view that it failure stories rather than the success stories. It is cheaper for seniors and the community at should be recognised that the vast majority of large to provide a level of assistance to seniors village residents are, in my opinion, very happy in their own homes to allow them to remain with their situation. As with any other situation, longer with their neighbours and familiar some people make a decision which was surroundings. This must be balanced with either unwise at the time or later becomes less another view that suggests that seniors— satisfying to their circumstances. The particularly married couples—adapt to legislation must recognise this and protect their retirement village life better if they make that interests and allow for readjustment. move in their 50s or 60s. I believe that it is Obviously, the issue of the resale of units really a matter of choice, taking into and the ongoing maintenance fees is one of consideration all the relevant factors. This is the most vexing issues, and the two are why it is important that it must remain possible intertwined. However, I do not share the for retirement village operators to provide a Minister's rather sanguine approach that fixing range of options. one will fix the other. The Bill does not go far One of the roles of this legislation must enough in this regard and I foreshadow an therefore be to allow for options—not to be amendment which would provide the minimum over-prescriptive but ensure that all the protection to which outgoing residents should relevant information is easily comparable from be entitled. one prospective village to the next. I suspect Perhaps in her summing-up, the Minister that if as much time and attention was taken might like to advise the House as to why real and good legal advice sought and followed estate agents are reportedly reluctant to be when moving into a village as is the case when involved in the resale of units and whether a couple in their 30s or 40s are buying a consideration had been given to this when the house, we would not hear of so many Bill was framed. As I said earlier in relation to disappointments. solicitors, perhaps there is a role for For a number of reasons this is not the Government to play in training interested real case. That is why I believe that we, as estate agents to become specialists in the sale legislators, must acknowledge the unique and resale of retirement village units. The circumstances that may apply when elderly Minister might like to respond to that. citizens and their families are considering There are a number of issues in the retirement village living. That is why I also resale area which need to be addressed in the believe strongly that the documentation, clauses. I know the Minister has been asked including the public information document, about the problem of residents not being able should be designed for maximum to market units until they vacate them. This compatibility, clarity and caution and be in the seems to me to be an area that could and most reader-friendly format. What is wrong with should be addressed. The Minister might like insisting that a minimum type size be used to to comment on that. assist older citizens? Maintenance within villages has been an While on the subject of legal advice, I ongoing issue in some situations. The have been disappointed to hear that many definition of capital replacement, as opposed prospective residents have not sought legal to maintenance, is an area which could be advice on what, in many cases, would amount improved, perhaps by the provision of a to the second most significant—perhaps the schedule which makes this clear. I suspect that most significant—purchase of their lives. there may be some villages whose residents 30 Nov 1999 Retirement Villages Bill 5617 will find it onerous to get their capital again, I do not believe it is. Similarly, I am maintenance funds up to par even within 10 advised that the New South Wales Act years. This would be particularly the case prohibits monetary penalties imposed on an where a village was run down. Will the Minister operator, or legal costs incurred by an make special provision for villages in this operator, from being charged to the operating situation and direct officers from her costs of the village. What is the case in this department to sit down with operators and Bill? resident representatives from such villages with Some doubt has been expressed to me a view to assisting them through such in relation to the enforceability of decisions of a difficulties? On the other hand, residents, too, dispute resolution tribunal. Could the Minister must accept that the level of maintenance and outline to the House whether or not such service within a village is tied to the level of orders from a tribunal are enforceable on both fees and their efficient expenditure. I hope that parties? the requirement of a special resolution to approve an increase in the general services In conclusion, I must express relief that charge will protect the interests of pensioners this Bill is finally before the House. It is not a and others who are not well off. As retirement perfect Bill; it has some fundamental flaws villages are not just a group of similar houses, which could have been and still can be but represent a community, the rules for addressed. Anything that we can do to make meetings and operator accountability are of the lot of our senior citizens—particularly in this great importance. I believe that the Bill can be special year—less stressful must be pursued. I improved in this area, and I will revisit this have asked a number of questions and I hope during discussion of the clauses. that the Minister can respond to them in her summing-up. There are some issues that I, I refer the Minister to correspondence that together with the shadow Minister, intend to she has received from the Immanuel Gardens address during the Committee stage. Independent Living Unit Residents Group. Let us hope that we can wind up this They asked whether the legislation could parliamentary session for 1999 secure in the require that financial results be made available knowledge that we have done everything to residents not less than 21 days prior to their reasonably possible for our senior citizens' annual general meeting. Is it possible to have retirement living expectations. this provision included in the Bill? They also ask that, where a village includes a hostel and Ms STRUTHERS (Archerfield—ALP) nursing home, representation from each type (8.41 p.m.): I have a number of high-quality of accommodation be included on the board retirement villages in my electorate of of management. I would appreciate the Archerfield: the Cazna Gardens complex at Minister's comments on this request. Sunnybank Hills, which is run by the RSL War Veterans Homes and which is where my Uncle I would now like to refer to some of the Vic and his wife Pat live; and also the Forest questions raised by the management advisory Place Retirement Village in Durack, which board of Buderim Garden Village. These provides a quality, secure lifestyle for residents. issues were raised in a recent letter to the Minister and were based on a study of recent Mr Briskey interjected. New South Wales legislation. I would like to Ms STRUTHERS: No, I have no relatives ask the following question: is it not true that in that retirement village. In each of these the New South Wales legislation applies complexes, I have met with many residents equally to existing contracts and new and, in the main, they are very satisfied with contracts? This appears not to be the case in the standard of accommodation and services this Bill. I am advised that the New South that they are receiving for their money. Wales legislation requires that a retirement A number of residents with that little extra village is reasonably secure. Is there provision drive and initiative have also been able to in the Queensland Bill for that? I do not acquire additional amenities through believe there is. community grants and other means. I want to I am also advised that the New South pay tribute to Zoe Williams at Forest Place. Wales Act requires the operator to supply She deserves credit for her efforts in getting residents with a statement itemising the way in many of her fellow residents surfing the net. which the operator proposes to expend the Zoe was instrumental in securing a Gaming money expected to be received by way of Machine Community Benefit Fund grant to buy recurrent charges during a particular financial computer equipment for her residents year prior to the commencement of the year. computer group. She has organised Internet Is that to be provided for in this Bill? Once training and many other activities. 5618 Retirement Villages Bill 30 Nov 1999

However, not all retirement village money involved in this law would be residents in Queensland can report that, upon almost impossible to pay—especially entering a retirement village, they are living those on single pensions." happily ever after. I know of some seniors in My understanding is that the fund should Brisbane who are very worried about their fees, require no more than a few dollars per week delays in maintenance work and lack of input from residents, so I have been keen to allay into financial decision making within their their fears about that. I certainly do not support village. To maintain quality lifestyles within any slug on seniors on fixed incomes, and I retirement villages at an affordable price and have assured them that the Minister does not to maintain a balance between residents' either. However, I draw this issue to the rights and the viability of the retirement villages Minister's attention for her consideration, industry, it is essential that retirement villages because it seems that that sort of laws are up to date and that they regulate the scaremongering is out there in the sector. I industry effectively. Therefore, I commend the certainly think that it is important that seniors Minister, Judy Spence, for taking action early are not hit hard and that operators seek fair in her term as Minister to put the revised contributions, not unreasonable contributions, legislation out for further consultation and to from residents. finalise the Bill earlier this year. I also commend the residents in my area I am confident that our Government has who took the initiative to have input into this achieved a more equitable balance. I feel Bill. The comprehensive written submissions hopeful that residents, such as Dick prepared by Mr Dick Robertson, a Forest Place Robertson, and operators will be pleased with resident, deserve particular recognition. Having the results. We all want the security of knowing many years of professional managerial roles that when we retire we will have access to a behind him, Mr Robertson is very competently secure, affordable roof over our heads. chairing the Forest Place Village finance Retirement village living will be the option that committee. He is particularly keen to ensure some of us choose. In supporting this Bill, we that the new contractual rights of residents are have the opportunity to get the contract enhanced in the new legislation. He has cited arrangements, dispute resolution, capital the positive example of the Forest Place replacement and service charging processes finance subcommittee that reviews budgets, right. That will continue to build a fair, high- costs, service charge increases and quarterly standard industry now and into the future. I accounts. He fully supports the provision of remind members that this Bill is in our direct quarterly operating statements to residents interest, as our future need for retirement living rather than annual operating statements. I is not so far off. know that this is a common call from the Hon. J. C. SPENCE (Mount Gravatt— residents. They want to see the books ALP) (Minister for Aboriginal and Torres Strait regularly, they want to make sure that Islander Policy and Minister for Women's maintenance funds are being administered Policy and Minister for Fair Trading) properly and they want to have a fair say. (8.46 p.m.), in reply: In summing up this In the main, this Bill has been received debate, I would like to thank all honourable well. However, one matter that has raised the members for their contributions. As many blood pressure of some residents is the honourable members have recognised, tonight maintenance reserve fund to which residents is truly an historic occasion. The retirement will be required to contribute. I understand that village legislation that we in Queensland have our Government's intention in legislating for lived with for the past 11 years has had its this fund is to ensure that routine maintenance problems, and all members would is carried out so that properties do not acknowledge that. That legislation, introduced deteriorate prematurely. Some villages are in 1988, was Queensland's first retirement dragging the chain and are failing to do routine village legislation ever. Let us not forget that it maintenance on capital. Residents risk facing was introduced under a conservative significant loss through the exit fee payable by Government, so the criticisms that we have them if the properties have not been heard tonight, particularly from those opposite maintained well. Recently, several residents about the current laws and the current have spoken to me about their anxiety. They contracts, can certainly be attributed to their believe that they may be required to pay up to actions 11 years ago that gave us very $15 per week to this maintenance fund. In a unsatisfactory legislation. That has been letter to me, two residents stated— acknowledged for a long time. "This retirement village is full of I would like to thank particularly the pensioners and find that any amount of members for Bulimba and Archerfield for their 30 Nov 1999 Retirement Villages Bill 5619 contributions tonight. They have shown a good Tonight Opposition amendments will be understanding of the legislation and, indeed, moved not by the shadow Minister for Fair the kind of life that exists in retirement villages. Trading but by the member for Mooloolah, who at least has shown enough interest in the A Government member: And the legislation to ask for a briefing from the member for Mackay. department. He has proposed some Ms SPENCE: And the member for amendments to the legislation and I Mackay. congratulate him on that. I look forward to discussing those amendments in the All of us acknowledge that retirement Committee stage of the debate. Well done, village lifestyle is a good lifestyle and we want the member for Mooloolah! to encourage the promotion of that kind of lifestyle in Queensland. Certainly, retirement Another interested member is the villages are significant to the Queensland member for Nicklin, who also proposes to economy. move a number of amendments. I also look forward to debating those amendments. The Tonight, I would like to pay tribute member for Noosa's contribution was an particularly to the working party. In his amalgamation of a number of letters that he contribution, the member for Mackay named had received, which had also been sent to me, the members of the working party. We have from people who did not get everything that heard that they worked very hard in framing a they wanted from the legislation. From the very heads of agreement, which contributed to this start of framing this legislation, the legislation that we have today. Government acknowledged that it would be difficult. Certainly the working party knew that it From what we have heard, it is very had a difficult road ahead of it, as there was difficult to discern who is the shadow Minister no way that all parties would be satisfied by for Fair Trading. Each member of the the outcome. However, the working party Opposition who spoke appeared to have a managed to come to an agreement, and I different position and different levels of congratulate it on that. Tonight we are understanding of the Bill. The member for debating the agreement that was reached Clayfield expressed his understanding in earlier this year. producing fair and equitable legislation in this area and commended this Government on I wish to read a number of testimonials addressing a number of matters that were long from people who have congratulated me on overdue. His comments stand in complete the legislation. I will do that now to balance contrast to those of the member for Noosa. some of the unfair and unnecessary Apparently, we heard from the member for comments made by the member for Noosa in Noosa a speech that was not read by the his contribution. Pearl Barton, the secretary of member until he came into the Chamber. It the residents committee of the Rotary Garden was a speech that was full of contradictions Village, said that they are happy residents. and emotive mumbo jumbo. She stated— However, it was very kind of the member "Certainly there needs to be changes for Noosa to acknowledge that, of all the to the Retirement Villages Act and we are members in this House, over the past 10 years happy that Ms Spence has set up this I have been the one member who has group to address this." consistently spoken about the issue of The Association of Independent Retirees retirement villages. It is a very close-felt subject stated— to me, because a number of retirement "It is with relief that I learned from Mr villages are located in my electorate. It was Cliff Grimley of the Association of certainly high on my agenda when the Retirement Village Residents that, in your opportunity came to correct the unsatisfactory capacity as the Minister for Fair Trading, legislation that we have been living with for you have taken action to call retirement some time. village operators and resident group This is the first time that the member for representatives together and have Noosa has bothered to speak in this Chamber indicated that you see a need based on a on retirement villages. He did not even ask the short timetable for the amendment of the department for a briefing on the legislation. current legislation to be undertaken." That was revealed in his contribution to the As we have heard from previous debate, because he certainly showed very little speakers, Mr Cliff Grimley is certainly an understanding of what the legislation is all outstanding Queenslander who has about. contributed a great deal to this debate over 5620 Retirement Villages Bill 30 Nov 1999 the last two decades. I know that he will be Fair Trading, the agreement introduces a very pleased to see the legislation passed new element of goodwill into the tonight. His brother, Don Grimley, who lives in development of good legislation." a retirement village in the electorate of Finally, I hope that the member for Noosa Mansfield, is also a very outstanding is listening because this quote comes from gentleman. I was pleased to visit his retirement Nambour. Diana Wilson is quoted in the village, Tricare, to talk about the legislation. I Sunshine Coast Daily as saying— can inform the House that residents at that village were very pleased with the initiatives "The year of the elderly is coming to undertaken by the Government. a close. Can the Minister, Judy Spence, A resident from the Robina Retirement make every effort to pass the retirement Estate wrote to me on 11 September, village legislation through the Queensland stating— Parliament before the end of this year? Old age comes to everyone. If this Bill "We older folk feel extremely let becomes law soon, it will be the best down by the previous State Government Christmas present that elderly residents in who, after years of discussing the villages can receive." Retirement Villages Act amendments, nothing happened. Please assist people This will be a good Christmas present for in our situation. We are your constituents residents in Queensland retirement villages. and desperately need the Labor Party's Finally they have a Government that is help." prepared to face up to the difficult job. This Government is prepared to face up to the The residents committee of Robertson Park mess that it was left by previous conservative wrote to me, stating— Governments which for too long allowed "Thank you very much for your recent retirement villages to float along without any letter regarding retirement villages and legislation and then finally, when they did your efforts to expedite the review of the introduce legislation, it was ineffective for most Retirement Villages Act, which are very residents. much appreciated." Tonight members have made much of The Domain Legislation Review Committee of the fact that most of the retirement villages in the Domain Retirement Country Club wrote, the State operate very well and that the stating— problems that we see occur and that we hear "Having become frustrated in our so much about happen in only a very small efforts by the previous Government's number of villages. However, we all feel inequities and negative approach to the compassion for the residents who are needs of freehold village residents, we are disappointed by the contracts that they have heartened by your letter." signed. As no doubt we will debate in Committee, it was not possible for the Kim Teudt, the members' services officer legislation to provide such people with of Aged Care Queensland, was quoted in the everything that they desired. In particular, they Gold Coast Bulletin in an article headed, "The wanted a law that would compel the operators new villages Act is welcome" as saying— to buy back their units when they wanted to "The new laws would mean more vacate them. Unfortunately, that would be a security for residents and better commercially impossible arrangement. The investment opportunities for operators." working party, which I remind members was Michael Isaac, the CEO of Aged Care comprised of residents and operators alike, Queensland, is quoted in the Toowoomba spent much time agonising over the issue of Chronicle as saying— buy-back. Ultimately, the working party agreed that buy-back was not an alternative "The Government should be commercial solution to the problems of the applauded for allowing such a process to resale of units. happen." I know that many residents will also be In the Sunday Mail, the same gentleman is disappointed that the amendments to the quoted as saying— legislation do not have retrospective "Representatives of residents and application. That issue was also raised by the operators of Queensland's retirement working party and, after much discussion, it villages reached an historic agreement was rejected. As we will discuss in the this month which will secure the interests Committee stage of the debate, while of residents in all registered retirement retrospectivity would be desirable for some villages ... together with the Minister for residents, ultimately it would be undesirable for 30 Nov 1999 Retirement Villages Bill 5621 the commercial interests of retirement villages. an agreement to enter into the There is a fine line between balancing the ancillary agreement that includes a interests of residents and those of the copy of the ancillary agreement; commercial operators, because we want to and'." create a climate in which retirement villages This amendment is necessary so that the can prosper. cooling-off period defined in the Schedule 2 This is obviously a growth industry for dictionary as being 14 days from the date the Queensland. In framing the legislation, I resident contract is made does not run a believe that we have, to the best of our ability, second or third time from the time an ancillary balanced the interests of both the residents contract is made. The cooling-off period should and the operators. However, I will not stand run from the date the main contract is made, here tonight and say that this is perfect provided the resident receives a copy of any legislation. We will review the legislation in 12 other contract at the time of signing the main months' time. In the future, I would be happy contract. This amendment will ensure that the to come back to the Chamber and make cooling-off period runs from the date of the improvements to the legislation if possible. initial contract. I thank all members for their contributions. Amendment agreed to. I commend the Bill to the House. Clause 10, as amended, agreed to. Motion agreed to. Clauses 11 to 14, as read, agreed to. Clause 15— Committee Ms SPENCE (9.02 p.m.): I move the Hon. J. C. SPENCE (Mount Gravatt— following amendment— ALP) (Minister for Aboriginal and Torres Strait "At page 18, after line 24— Islander Policy and Minister for Women's Policy and Minister for Fair Trading) in charge insert— of the Bill. '(2) The exit fee for a residence contract, Clause 1— other than an existing residence contract, that a resident may be liable to pay to the Mr LUCAS (8.59 p.m.): I did want to make scheme operator is to be calculated as at a contribution to the debate on this Bill. The the day the resident ceases to reside in appropriate place to do it is during the debate the accommodation unit to which the on clause 1. I give credit to the Minister in contract relates.'." relation to this legislation. This amendment is necessary so that, if The TEMPORARY CHAIRMAN (Mr the resale of a unit is delayed for any length of Reeves): Order! The member must talk on the time, the amount of the exit fee payable will be title of the Bill at this particular juncture. calculated as at the date the resident ceases Mr LUCAS: It is my understanding that— to reside in the unit and not the date of resale. Industry members of the working party agreed The TEMPORARY CHAIRMAN: Order! to this course of action, provided that the The member must talk on the title of the Bill in amendment only applied to new contracts and clause 1. did not apply to existing contracts. This is Clause 1, as read, agreed to. because it would be unfair to retrospectively Clauses 2 to 9, as read, agreed to. amend existing contractual arrangements. Clause 10— Amendment agreed to. Ms SPENCE (9.01 p.m.): I move the Clause 15, as amended, agreed to. following amendment— Clauses 16 to 35, as read, agreed to. "At page 17, lines 7 and 8— Clause 36— omit, insert— Mr LAMING (9.03 p.m.): This clause '(c) contain or incorporate— refers to inaccuracy in the public information document. It has been raised by constituents (i) a service agreement or an in relation to an inaccuracy. The clause agreement to enter into a service requires the operator to advise those agreement that includes a copy of concerned regarding the inaccuracy. I would the service agreement; and like to ask the Minister a couple of questions in (ii) if the contract includes an ancillary relation to this clause. If the public information agreement that is not signed document is, indeed, found to be inaccurate contemporaneously with the contract, and the public information document is by 5622 Retirement Villages Bill 30 Nov 1999 definition a part of the contract, could this village, they feel that they have a security of affect the validity of the contract? Secondly, if tenure and a security of the lifestyle that they it does, indeed, mean that there is a lower have anticipated that they would enjoy—and consideration, a lower value within the contract they could have signed up 10, 15 or even 20 because of the mistake or the misleading years earlier. If the village's registration is to be information in the information document, does cancelled, there is some fear as to what the operator indemnify the resident for any happens to the resident. The Bill is a little loss of value in that contract because of the unclear on that and I would like the Minister's inaccuracy in the public information comments on how the rights of the residents document? are protected—the lifestyle that they signed up Ms SPENCE: I am afraid that the for—if a scheme operator decides for whatever Government cannot support this particular reason to cancel the registration of a village. I amendment, basically because I do not think would imagine that that would take away the that the amendment necessarily achieves operator's responsibilities under the contract what the member for Mooloolah sets out to and he could perhaps walk away from the achieve. This amendment, we believe, would village. What position does that leave the invest the chief executive with an residents in with regard to the lifestyle and the inappropriate— financial contract that they have entered into with a scheme operator if the village The TEMPORARY CHAIRMAN: Order! Is registration is cancelled? there an amendment to this clause? Ms SPENCE: I can understand the Mr LAMING: There is not an amendment; concerns of residents about this particular I was merely asking the question whether a aspect of the Bill. We found it necessary to put flaw or inaccuracy that is discovered in a public it in not because we have ever, I understand, information document could legally render that cancelled any retirement village contracts, but contract void. If the public information in fact there may be a need to do so in the document is a part of the contract and it is future. For example, there is a retirement found subsequently to contain misleading village in the electorate of Lytton which is information, could it be that the contract is basically in very dire straits. It has been under voided because of that misleading the control of an administrator for at least a information? The second part of the question decade now and I understand the financial is: could it be that a resident should be able to position of that village is deteriorating by the claim that, if the contract does not have the day. There may come a time when the same value as the contract that was signed residents of that village want to change the because there is less value in the public whole nature of the village because basically information document, the scheme operator they cannot sell any of the vacant units in that should be liable to indemnify the resident for village and it is a very non-commercial any loss of value because of that misleading enterprise at the moment. information? There may come a time when those Ms SPENCE: The answer to the question residents come to us and want us to cancel posed by the member for Mooloolah about the the retirement village contract. That is why the public information documents is that one of provision was needed in the legislation, but the the features of this legislation is that we are statutory charge stays over the land and funds introducing public information documents that until the residents are paid their exit will be standardised in an approved form entitlements. If the stage was ever to be approved by the registrar of retirement villages. reached at which residents came to us and we If, in fact, it was found that there was false or were compelled to take away the licence of a misleading information represented in the retirement village, because of the statutory public information document, that would be an charges over the village then certainly the offence under this Act and we would certainly residents would receive their full exit prosecute. entitlements. So they should not be fearful Clause 36, as read, agreed to. that Government in the future would make that Clauses 37 to 39, as read, agreed to. kind of decision without their consent, nor should they be fearful that they will be left Clause 40— without the entitlements that they are due as Mr LAMING (9.06 p.m.): This clause an exit fee as they would normally be. We can refers to the cancellation of the registration of foresee a stage in the life of some of a retirement village. Some residents who have Queensland's retirement villages where it may seen this clause are a little concerned because be necessary to consider taking that very they believe that, when they enter a retirement extreme action. 30 Nov 1999 Retirement Villages Bill 5623

Mr LAMING: The Minister has answered "In this section— one side of the question in relation to exit 'resident' includes a former resident who entitlements, but what is the situation has not received an exit entitlement to regarding the ongoing running of the village? which the former resident is entitled under Do they still have monthly maintenance fees? the former resident's residence contract." Who would collect the fees? Who would actually conduct the work and run the bus, From the point of view of the operator, if a clean the pool and do all the things that are disgruntled resident goes away and suddenly done by a village operator if it is no longer a decides that there is a problem with the village? The Minister has answered the resident's residence contract, what protection question relating to the exit entitlement and is there if that person then comes back with winding up the affairs but, if people were the same complaints that are encapsulated continuing to live in the village, is there a under this regulation? Is that clear? provision somewhere that somebody would be Ms SPENCE: I am happy to answer that. responsible for actually running the village on a I think it is unlikely that an operator would find day-to-day basis in the meantime? that there were problems with a resident's Ms SPENCE: If we were to take away the contract. The operator is in the employment of retirement village status, it would be more likely the retirement village owner. They are the that the village had asked the Government to ones who presumably do up the contracts and do that and the Government deemed it was encourage residents to sign them. I think it necessary to do that to change the whole would be extraordinary that an operator would complex from a retirement village to some have difficulty with a contract. From my other unit type of complex. It might be the experience, all the difficulties with contracts case that a retirement village went so bad that has been by the other party—that is, the the Government, through the Housing residents, not the operators. Department, decided to buy it for use as Clause 40, as read, agreed to. pensioner units or something of a similar nature. Any of these developments are Clauses 41 to 52, as read, agreed to. foreseeable in the future. Clause 53— Under clause 38, we have given the chief Mr LAMING (9.15 p.m.): I move the executive power to appoint a manager in the following amendment— meantime to ensure that the ongoing day-to- day running of the village continues. But it is "At page 36, line 27— more likely that we would take away the omit, insert— licence from a retirement village to change the 'mentioned in paragraph (a)(i) to (iii) as status to something else completely. acknowledged and endorsed in writing by Mr GRICE: In the interests of some the chief executive.'." balance from the other side of the argument, could the Minister advise the Committee of a Before I speak to the first amendment I have response to this question. Clause 40(4) of the moved, I take issue with the Minister being Bill contains this definition— critical of the member for Noosa in that I am moving some of these amendments. The " 'resident' includes a former resident who member for Noosa recognised my has not received an exit entitlement to longstanding interest in matters pertaining to— which the former resident is entitled under the former resident's residence contract." Mr Nuttall: In other words, you did the work for him. What about the situation where the operator has asked the chief executive to cancel the Mr LAMING: The member for Sandgate is registration scheme but where a former interjecting. resident, who is perhaps a disgruntled The TEMPORARY CHAIRMAN (Mr resident, who has left the complex comes back Reeves): Order! The member for Mooloolah at a later time with the same sort of complaint? will speak through the chair and get on with What mechanism within the legislation allows the amendment. for the correction of that? Mr LAMING: I am very pleased to move Ms SPENCE: I really could not these amendments because I had been understand the question, I am afraid. The working on amendments like this during the member for Broadwater will have to explain it term of the previous Government. The to me again. member for Noosa has been kind enough to Mr GRICE: I am happy to, Minister. allow me to continue the work I had started, Clause 40(4) of the Bill states— and I thank him for that. This amendment is in 5624 Retirement Villages Bill 30 Nov 1999 relation to the termination by a scheme to make a case to the chief executive and operator. Clause 53 states— convince the chief executive, an organ, if you "If the resident's right to reside in the like, of the Government, that this person was retirement village is to be terminated on the threat that they thought that person was. either of the following grounds, the Without that safeguard, I feel we do not have scheme operator must give the resident any control over possible excesses under this 14 days notice— particular clause. I will leave it at that and hear what the Minister has to say regarding my (a) the resident has intentionally or concerns. I think this is a reasonable recklessly— amendment and I ask the Minister to consider (i) injured a person while the it. person is in the retirement Ms SPENCE: I acknowledge the village; or seriousness of the issue about which the (ii) seriously damaged the resident's member for Mooloolah speaks tonight. I have accommodation unit; or heard of situations such as he describes, and they are serious. Obviously the operator has to (iii) seriously damaged property of take responsibility for the protection of all the another person in the retirement residents in the village. village;(b) the resident is likely, Something the legislation does, which intentionally or recklessly, to do probably has not been spoken about enough something mentioned in in this debate, is establish a formalised dispute paragraph (a)(i) to (iii)." resolution process in legislation. If any one My concern with this is: who is to be the thing is the hallmark of this legislation, it is the judge of this behaviour? We are talking about three-step dispute resolution process. Disputes something that may not happen very often, are expected to be discussed, and hopefully but it is in the Bill. It is quite conceivable that it resolved, in a committee of the residents of could happen. Could it be the judgment of a the village. If that fails, we expect the residents neighbour of the resident? Could it be the to use the resources of a dispute resolution residents committee that says that a person is mediator. If that fails, they may then make likely to do something that is reckless? Is it the application to the tribunal. We have never village manager himself or herself who says before had such a process in this State. We that this person might do it? It seems to me have never had a tribunal to which residents that this is rather draconian in its possible can go to have disputes resolved. application. It is of a very serious nature and it I would expect that if something very is a very important clause. urgent occurred, such as the member for In relation to any action against anybody, Mooloolah alluded to, and someone was whether for one of the three examples I gave particularly dangerous in a retirement village, or something else, where it has been claimed the village may be able to bypass the first two that a resident is likely intentionally or steps of the dispute resolution process and recklessly to do something I mentioned earlier make urgent application to have the matter which will seriously damage property or heard in the tribunal. another person in the village, it could be a What the member for Mooloolah is person who is getting older and who may have proposing tonight is vesting the power in a a mental health problem. I have heard of this. chief executive of the Public Service to I know that it does happen. These things have intervene in the process and terminate the to be managed. If we had a situation where a resident's contract. I would say that the chief person in their 80s who had been there for 10 executive is not qualified or in a position to or 15 years could be bounced out of an determine if a resident is likely to damage independent village, on whose judgment may retirement village property. This would be an that person take the action that we are inappropriate delegation of decision making concerned about? power to an administrative official with only I think that is very serious. If the limited right of review. This would infringe Committee and the Minister were prepared to fundamental legislative principles set out in the consider and accept my amendment, it would Legislative Standards Act. It should be pointed mean that the persons making the out that this sort of situation is much better charge—they do that either through the addressed by the dispute resolution process residents committee or through the scheme that is for the first time enshrined in legislation. operator or the manager and say that they For those reasons the Government cannot have a problem with this person—would need support this amendment. 30 Nov 1999 Retirement Villages Bill 5625

Mr LAMING: The Minister's response department, on a weekly basis relating to seems to be well documented from her staff, issues, problems and disputes in retirement and that is understandable. I am not villages. suggesting that the chief executive intervene. Following the success of the Associations The amendment just asks that the person be Incorporation Act, many residents now expect advised and acknowledges the fact that this Governments to solve all of their disputes. clause is being enacted. I think that would Obviously we do not want to find ourselves in have a dampening effect so that this clause is that position, nor do our public servants want not used unwisely. The scheme operator to find themselves in that position. I think little would know that it has to alert and advise the would be gained by incorporating an chief executive that it is about to take this amendment such as this, which would expect rather drastic action. It is, after all, throwing operators to inform CEOs when one of these someone out of their home at 14 days' notice. provisions was to be enacted. I think that is not unreasonable. The member's other concern, which I The Minister referred to the dispute think is quite just, is how we are going to resolution process, and that is fine, but the educate retirement village residents about the legislation does not require the scheme changes to this legislation. Of course, it is operator to use that process. If the person is important to educate them, and particularly to being difficult—the person may have some inform them about the new dispute resolution mental problem or be very anxious—he or she process, the new tribunal and how they can might not have the support of the access that tribunal. We intend to undertake management advisory committee. That person an extensive education process once this may not know that there is a dispute resolution legislation is passed. We will be sending process there. If the person does know about officers from our department, as well as it, he or she might not know how to use it. representatives from the Association of Unless the legislation is specific and says Residents of Queensland Retirement Villages, that the scheme operator must invoke the throughout each retirement village in this State dispute resolution process, with or without to explain this legislation. The member is quite going through as far as the tribunal, I suspect right: it is important that residents understand that the scheme operator will not use it and will their rights in this regard. just use section 53(1), which provides that the Amendment negatived. scheme operator may terminate a resident's Mr LAMING: I move the following right to reside for those reasons. There is no amendment— requirement in that clause for the scheme operator to use the dispute resolution process "At page 37, after line 19— or the tribunal. insert— The Minister has rightly said that that '(7) If a scheme operator terminates a process is there. Perhaps the Minister would resident's right to reside in a retirement consider including something in the clause that village, any exit entitlement payable to the directs the scheme operator to take it to the resident is to be paid immediately the tribunal—call a quick meeting of the tribunal or resident vacates the unit.'." one of those dispute resolution processes that I am disappointed with the Minister's comes before the tribunal—so that there is decision to not accept the previous some process there. I have visions in my mind amendment. If such a situation arises or the of an 80 year old woman who is on her own possibility of such a situation arising is brought and who is mentally upset doing something a to the attention of the Minister or the little reckless and being thrown out, bag and department, I hope that in the future the baggage, into the street on 14 days' notice. I Minister might be prepared to accept an do not think this clause is fair in what it could amendment to overcome that problem. mean to somebody in certain circumstances My second amendment relates to the without some sort of override. same clause, to the situation of a resident Ms SPENCE: It seems to me that all the being asked to leave his or her unit within 14 member wants is for the scheme operator to days. My amendment provides that, if a have to inform the CEO of the department and scheme operator terminates a resident's right I do not think that adds anything to the to reside in a retirement village, any exit process. In fact, I am sure the member's entitlement payable to the resident is paid colleague the former Minister for Fair Trading immediately the resident vacates the unit. could tell him just how many letters come by Unless I am mistaken, other provisions of the the Minister's desk, let alone through the Act would put the person who is asked to 5626 Retirement Villages Bill 30 Nov 1999 leave the village in exactly the same position them their cash entitlements on the spot when as a person who decides to terminate the other people are waiting for their cash exit agreement, to sell out, to move into a hostel, entitlements. I believe that it would be an to move to another retirement village or to unfair and inconsistent provision. move out to live with children. I certainly acknowledge the sincerity with Let us not put too fine a point on this. A which the member moved this amendment. person who is thrown out of a unit and out of a On face value, it looks reasonable. But I village and who has not had the opportunity to suspect that, commercially, it would be fairly make alternative arrangements and, in most non-viable and we would find certain cases, would not even have the funds to go disagreement with other residents who into alternative rental accommodation, would themselves are waiting for their exit probably find it difficult to get into another entitlements. retirement village because of the waiting lists Mr LAMING: Yes, I can follow the that usually apply, and they certainly would not Minister's reasoning in saying that a person get a reference from the one that they were who was thrown out of a unit could be just thrown out of. So I believe that there is a regarded by other residents as being rewarded very strong case for the Minister to support this by getting their exit entitlement. But all that amendment so that that resident gets any exit does is place a spotlight on the fact that the entitlement payable to them immediately they clause to which the Minister referred is also vacate the unit. inconsistent with equity. It is the other clause Ms SPENCE: In a sense, the member for that is also wrong. And to refer to a wrong Mooloolah's amendment suggests that clause as being a reason for regarding this residents who are asked to leave a village get amendment as wrong does not hold up in rewarded with an entitlement to which other logic. After all, it is not their call. One could residents are not entitled. For that reason, we hardly say that a person is being rewarded cannot support the amendment. To enact this when they are being thrown out. They did not amendment would raise an internal decide to leave. So one could hardly call it a inconsistency within the Bill. It would be reward. inconsistent with the provisions already And to say that to accept the amendment contained in clause 63, relating to the would be inconsistent with what the Act is all payment of exit entitlements. about, I might rejoin by saying that I believe In addition, I have proposed an that this whole section is inconsistent. That is amendment to clause 15 with respect to why I moved two amendments, because I setting the time at which the exit entitlement is believe that the whole section has a certain calculated. This amendment would ensure that amount of inconsistency to it. I still believe that the exit entitlement payable to a resident the previous amendment should have been would be calculated as at the date the resident accepted and that this amendment, which ceases to reside in the unit, not the date of relates to the exit fee, should also have been sale of the unit. This would protect residents' accepted. But it would appear that in addition exit entitlements from dissipation over time but to the first amendment the Minister is not would not jeopardise the financial viability of going to accept the second amendment. That the village by forcing an operator to pay out is unfortunate. I certainly hope that more than the resident before funds became available. one situation does not arise whereby I get the opportunity to say, "I told you so." But if The proposed amendment could also something like that does arise in the future, I raise the possibility of a resident availing hope that the Minister will have the good grace themselves of the provisions in clause 53 to to revisit this clause. force the hand of the operator so that the operator would have to terminate the contract Amendment negatived. for the protection of other residents. In this Clause 53, as read, agreed to. case, the operator would be obliged the pay Clauses 54 to 57, as read, agreed to. the resident the exit entitlement. Clause 58— I suggest to the member for Mooloolah that all of those residents in those retirement Mr GRICE (9.36 p.m.): Proposed villages, particularly on the Sunshine Coast, subsection (2) of clause 58 states— who cannot sell their units—and that is the "For an existing residence contract, major issue in the member's part of the the former resident and the scheme world—would be really cranky about an operator are to negotiate in good faith amendment like this, which rewards people and, if possible, agree in writing on any who are forcibly removed from a unit by giving work ('reinstatement work') that is 30 Nov 1999 Retirement Villages Bill 5627

necessary to be done to reinstate the correctly said, in many cases some of the accommodation unit to a marketable owners and operators are at odds with each condition having regard to"— other and the relationships are very strained. certain conditions that follow. Here is the Introducing a third party to evaluate the problem with this clause: getting residents and extent of the work to be carried out may be operators—who can be, and often have been, one way of resolving some of these issues that protagonists—to agree on anything would be can be ongoing for long periods of time, as the similar to getting Peter Costello and Simon Minister will appreciate. Without moving an Crean to agree on something. amendment, I ask that the Minister give Proposed subsection (3) of this clause, consideration to that issue at some time in the when commenting on the situation, places the future. onus on the operator to get itemised quotes Ms SPENCE: The issue of refurbishment on work that the operator thinks is appropriate of units has been contentious in the past. It for the reinstatement work. This direction, I was ignored in the previous legislation. I know would suggest, can only inflame the resident, that the working party spent a lot of time the former resident or, in the case of a thrashing out this particular issue because the deceased resident, their representative. It also members understood that it was one of the ignores practical difficulties with existing hardest issues involved in framing new contracts, where there may be units that have legislation. I suspect that the residents might been vacant and possibly neglected for some think that they have had a win on this one years, particularly when the resident or the because, at the end of the day, the operator is former resident may not be able to inspect the going to be charged for reinstating the unit to unit or obtain other essential information. This its original state. That was something for which is a situation, I would suggest, that invites the residents fought very hard. confrontation. We may have a situation where With regard to disputes over the state of two parties have been in contact—aggressive original occupancy and the amount of work contact perhaps—for some considerable time that needs to be done in refurbishment, if the and there is no obvious reason for settlement. operator is going to bear the cost it seems Mr DAVIDSON: I also rise on this clause, reasonable that the operator would obtain the particularly proposed subsection (3), which quotes. Without wanting to sound patronising, states— I guess many residents are at that stage in "If the former resident and the their lives where they do not want to be the scheme operator can not agree on the ones who have to go out and get quotes from reinstatement work, the scheme operator tradespeople. That is not an easy thing for any is to obtain a statement of the work, and of us to do. I do not think the question of an itemised quote for doing the work, the which party gets the quotes is necessarily a big operator considers to be reinstatement issue. The main issue is the question of who work from a qualified tradesperson pays the costs of the refurbishment and how appropriate for the work within ... 14 much work needs to be done. days." Given that the operator is bearing the cost I believe that I need to expand on what the of refurbishment, I believe that that significant member for Broadwater said. It is very difficult, issue has been sorted out. However, I do not in some of these situations, to get an owner walk away from the fact that disputes will arise and operator to agree on any work that might in relation to these issues. That is why we will be carried out, the extent of the work that have a tribunal. No doubt a number of might be carried out and the price of the work disputes of this nature will go to that tribunal. that might be carried out. This presents an After the tribunal has been operating for a year opportunity for the Minister, in the future, to or so, I think it will be interesting to find out consider—perhaps during the review in 12 what legislative changes the tribunal would like months' time—that maybe a licensed us to make in this regard. We need to give chartered building professional or someone these new laws operating for some time before from the BSA could inspect the unit, have a we judge their workability. look at the extent of the work that, in their Mr DAVIDSON: I appreciate that, but I professional opinion, needs to be done and believe some consideration should be given to then, perhaps accompanied by the the fact that we do not want operators and appropriate tradespeople, act as an residents running off to the tribunal over all adjudicator for the operator and the resident sorts of issues. Some of these issues will relate so that they could bring these things to to minor works, including minor maintenance finalisation. As the member for Broadwater and minor restoration. I do not believe that the 5628 Retirement Villages Bill 30 Nov 1999 parties should be racing off to the tribunal over I agree with what my colleagues have such things as cracked windows or broken been saying: it is going to lead to unnecessary doors. disputes. This legislation is all about trying to I believe that if the Minister was to give take out the myriad disputes that we already consideration to having a licensed chartered have in this area. Although the legislation goes building professional or someone from BSA in a long way to doing that, this sort of situation attendance to mediate or evaluate the quality can still occur. I believe it would be useful to of the work, it could alleviate the situation get some indication that every effort will be where we have conflicts occurring over long made under this legislation to ensure that the periods of time. This action would prevent the committees and the operators are made aware that issues such as this can be taken to tribunal from being clogged with minor issues the Alternative Dispute Resolution section of which should be sorted out on site by the third the Department of Justice. party. We would have to give some consideration to whether the operator is This would be a big step forward in trying required to take only one quote from a to prevent some of the arguments and pitfalls tradesperson. The legislation does not cover which might occur. Could I have some this aspect. The legislation simply refers to indication from the Minister that she might do reinstatement work carried out by a qualified something like this? It will allay some of the tradesperson. We have to decide whether to fears that we have on this side of the House. have two or three tradesmen involved. Ms SPENCE: I suspect that the member Someone from the BSA, or a licensed for Indooroopilly was absent from the Chamber chartered tradesperson, could resolve a lot of a half an hour ago when I was assuring the issues on site. member for Broadwater that we believe that education is an important component of this Ms SPENCE: The member suggested legislation. Officers from the Department of trying to put the BSA into the role of mediator Fair Trading, along with representatives of the in these disputes. I believe the BSA would residents' associations, will travel to every have the member's head because it would not retirement village in Queensland and make see that as part of its core business at all. It sure that residents are fully informed about the would cost a fortune. It is not impossible for changes involved in this legislation. One of the the BSA to undertake such a role, but people most important aspects of the legislation, as would have to be charged for the service. It far as the residents are concerned, is the would not be cheap. It would add extra cost to three-step resolution process. the resale of the unit. Perhaps it is something I can assure the member for Indooroopilly that we can look at down the track. I do not that I agree with him; education will be very believe it is necessary to do it now. important. If this legislation gets through I do not believe that the Government tonight, in the new year we will be on the road would want to take on the cost of the making sure that the 22,000-odd retirement mediating role. Such cost would have to be village residents in Queensland understand borne by the operator and the resident. I do the new legislation. not know whether they would want to pay that Mr BEANLAND: I thank the Minister for kind of fee to have the dispute resolved. It that, but I was particularly interested in getting costs only $50 to use dispute resolution an assurance in relation to this particular mediators who could probably undertake the section. I understand what the Minister is role just as well as a building service inspector. doing in regard to the rest of the legislation, That sort of process is included in the dispute but I do not want people to be under the resolution legislation. It is something that we misapprehension that they cannot take a need to address once we have seen how the particular course of action such as dispute legislation is working. resolution. Mr BEANLAND: I was going to raise that This is one of the few areas that could matter with the Minister. Since we have the end up getting us into unnecessary trouble. I ADR people involved in the process, I presume am simply asking for that assurance. I am not that one of the things that residents and talking about the rest of the legislation. I heard operators will be made aware of is the fact that what the Minister said previously. I just want to they can take this course of action. No doubt clear up this particular section. the committees in each of the villages will be Ms SPENCE: I accept the sentiments of made aware of this. I take it that the Minister the member for Indooroopilly. This is one of will be making the committees aware that this the few retrospective features of the is one of the things that they can do. legislation. Obviously, people moving into 30 Nov 1999 Retirement Villages Bill 5629 retirement villages and signing contracts in the of thought processes has the Minister had with future will be made aware of this via the regard to alienating that fear? Has the Minister contract. We need to inform existing residents thought about introducing a seniors comment, of this new initiative. or advisory group, or panel, or spokesman? Clause 58, as read, agreed to. Very often, these people are alienated by Clause 59— the word "tribunal", very often these people are alienated by the word "advocate", or by Mr GRICE (Broadwater—NPA) the word "agent", or by the word "barrister", or (9.49 p.m.): We have just dealt with by the words "Supreme Court judge" or reinstatement work in clause 58. I presume "District Court judge". At the end of the day, that clause 59(2)(b) is meant to cover that we are dealing with aged people. The ageing contingency: that is, reinstatement work that is process affects not only the body but also it ordered by the tribunal. Given that the tribunal affects the mind. I am not saying that old age is to be formed by a Supreme Court judge or a affects peoples' minds totally: aged people District Court judge, or a representative of the may not have Alzheimer's but may experience residents association and the operators that small problems in communicating their the Governor in Council deems necessary to thoughts. The suggestion is that tribunals do the job, or a lawyer with five years' should be the be-all and end-all. What thought standing, as a final consideration, does the process has the Minister given to Minister believe that such a direction will be accommodating the fears of those aged received satisfactorily by residents? I remind people, because they are very real. They are the Minister that I represent the electorate of not fears that are experienced by the Minister Broadwater, which contains five very large or me, because we know what tribunals and retirement villages. Some of the residents of agents are. What thought process has the those retirement villages have certainly made Minister given to satisfying some of those their sentiments known to me that they regard fears? this Bill as a handbook for developers of future retirement villages. How can the Minister judge Ms SPENCE: I have a number of points the qualifications of the tribunal in relation to to make. Firstly, I think that, although a their ability to equate what is and what is not number of elderly people will be frightened by appropriate reinstatement work? the whole concept of the tribunal, a lot of other people in society are also. I do not think that it Ms SPENCE: I would think that the is unique to elderly people that tribunals and tribunal will be comprised not just of the legal legal words are daunting. There are many person, who will head the tribunal, but also an retirement village residents who are well in industry and a resident representative. So it will charge of their faculties, who are very be a three-person tribunal. I think that they will intelligent and who, I think, would enjoy the be just as competent at judging matters such opportunity of fronting up to a tribunal. as reinstatement as, for example, the However, I acknowledge that there are many Queensland Building Tribunal, which is headed who would not. I think that they are just solely by a legal person but who takes advice reflective of the rest of society. from the industry when advice is needed for For this very reason, we are allowing technical matters. If the member is concerned people to take legal representation to the about a legal person's qualification to judge tribunal. We acknowledge that some people practical matters such as reinstatement, I think may simply be not up to representing that there are many parallels between this themselves at the tribunal. Finally, before the tribunal and a tribunal such as the Queensland establishment of this tribunal, which is going to Building Tribunal. be the cheapest access to justice that these Mr GRICE: I understand that, but I people have ever had, their only recourse to wonder how much consideration has been dispute resolution was to go to the court. So given particularly to the situation that exists in this is a great improvement on anything that retirement villages. I speak with some has existed in the past. experience, because my mother is 94 and Clause 59, as read, agreed to. lives in a retirement village. With the ailments that she has had over the years, I think that Clause 60— the only thing that might get her in the end is Mr BEANLAND (9.55 p.m.): I just want to rust or if the building falls over and hits her on say a few words about clause 60, because it the head. It is a fact that people of that age relates to reselling residents' rights to reside, receive comment from things like tribunals with the resale value, the termination of their a great deal of trepidation and, in some cases, accommodation, the termination dates and fear. This is a very sincere question: what sort matters relating to the valuer. 5630 Retirement Villages Bill 30 Nov 1999

This clause will make an enormous to a couple of real estate agents whom I know, difference to the current situation. I notice that and I think that the problem is mainly that they it has been made retrospective, and I can do not understand the industry. However, a lot understand that. This is a very important of units are sold and resold in the retirement clause because it relates to many of the village industry. arguments that exist. A great deal of dispute As I said in my earlier speech, the arises over the fact that, at the end of the day, Department of Fair Trading could play a role by people find that they are unable to dispose of providing a course to real estate agents, at a their units. An argument starts between the cost, to encourage them to become involved operator and the resident as to who is in the sale of units or the sale of rights to responsible and why the sale of the unit has occupy. That would be a boon to their industry not gone ahead. When the resident thinks that as it would increase their business. Real estate they have found someone to sell the unit people are usually looking to expand their rights to, the operator steps in and then there horizons. Certainly it would be good for the are further arguments about the price and so residents and, in the longer term, it would be on. good for the scheme operators to have So the appointment of a valuer after a another skilled force that understands the period to go through a process to try to settle retirement village industry to be involved in a these issues will resolve many of those more proactive way. I will not move any problems relating to retirement units that are amendment to the clause, but I wonder what currently on the market and which are causing the Minister's thoughts are on involving the a great deal of hardship. Of course, it will also real estate industry in a more proactive mean that the concerns of those people who manner in the future? feel aggrieved by the fact that they have to Ms SPENCE: The member has raised a continue to pay the ongoing service charges good point. In the past the Queensland real will also be picked up under this particular estate industry has never been invited to clause because, six months after the participate in the sale of retirement village termination date, a valuation is given and the units. Certainly, there is some scepticism about real estate agent can effect the sale of the that in some quarters, although I think that unit. I hope that that will mean that we will others are enthusiastic about entering the resolve many of these long outstanding market. Certainly the evidence in New South arguments. Wales, where they have been involved in This clause relates to a section of the selling retirement village units for a number of existing legislation that I well remember toiling years, reveals that it is a growing market for over on more than one occasion. I think that it real estate agents. is largely intact. There may have been a Our department works very closely with couple of changes, but that is by the by. The the REIQ and I expect that it will see this as a concept of the clause in this Bill is designed to profitable market, particularly under the new resolve most of those problems that legislation. Because the operators cannot occur—some of the major problems arising out manipulate the market or frustrate sales, the of this legislation. This Bill is retrospective and REIQ will want to get involved. It will undertake picks up the people who fall under the current to educate its own membership about the arrangements. I think that will resolve many of workings of retirement villages and how to those ongoing disputes. Again, by having enter that market. From my dealings with real qualified valuers step in and then this further estate agents, I know that they are certainly process of dispute resolution if people still enthusiastic and inventive people. If they can cannot settle will mean that an effective see that this is a profitable industry, they will method has been found to ensure that this want to be involved in it. process is undertaken relatively speedily. Clause 60, as read, agreed to. Clause 64, as read, agreed to. Clauses 61 to 63, as read, agreed to. Clauses 65 to 67, as read, agreed to. Clause 64— Clause 68— Mr LAMING (9.59 p.m.): This clause Mr LAMING (10.03 p.m.): I move the relates to the ability to involve a real estate following amendment— agent in the resale of a unit. The Minister "At page 44, line 10, after 'reside'— might recall that, in my speech during the second-reading debate, I said that real estate insert— agents may be reluctant to become involved in 'within 6 months after the termination selling retirement village units. I have spoken date'." 30 Nov 1999 Retirement Villages Bill 5631

This amendment refers to the commission. The scheme operator would get involvement of a real estate agent in selling the benefit of the sale and not have to the right to reside. Clause 68(2) states— contribute anything towards the cost of the real "However, if the former resident estate agent selling it. engages a real estate agent to sell the I am not suggesting that we move to the right to reside, the former resident must extreme end of the scale. At the moment, as pay the real estate agent's costs of the soon as a former resident says, "I think we sale, if any, and commission." should have a real estate agent involved", he However, clause 68(1) states that the costs of or she has to pay all the commission. sale are shared by the former resident and the Members might expect me to say that that scheme operator in the same proportion as should happen from day one, but I am not they are to share in the sale proceeds. saying that. I am saying that we should wait six months for the scheme operator or the Subclause 2 is somewhat discriminatory manager to try to sell or resell the unit by his or against the resident because, in most cases, her own devices. If that does not happen and the resident would be seeking the services of a the resident then says, "I think we should get a real estate agent to facilitate the sale. In real estate agent in to help us", the costs of virtually all cases, the scheme operator would the selling—the commission and so on— hang back and wait for the resident to become should be shared in the same way as outlined impatient and call on the services of a real in clause 68(1). estate agent, knowing full well that this reluctance would result in the resident, or the Ms SPENCE: I thank the honourable former resident, having to pay all the charges. member for Mooloolah for his explanation, I could accept it if that was the case because I can see some validity in his immediately after the unit came onto the comments. We agree on a number of things. market. We agree that the best person to attempt to sell the unit initially is the operator. Frankly, the However, in most cases, the village operator has more to gain from selling the unit operator or the manager will sell or resell than any party other than the resident. If the virtually all units without the involvement of real operator has failed to sell the unit after six estate agents. It takes time to tidy and months, the resident should be entitled to refurbish a unit, find prospective buyers to enlist the support of a real estate agent. We inspect the property and that sort of thing. I agree on that. have just sold a right to reside on behalf of my mother, so I know that these things do take a I understood the member to say that he certain amount of time. It may be unfair if the believes that the operator and the resident resident incurred the extra costs, perhaps should share the costs of commission after unnecessarily, of a real estate agent as soon that six months. That is an interesting point, as the unit was put on the market when the but that is simply not what his amendment operator, and perhaps the resident too, would states. His amendment sets out the rights of a know full well that the unit would resell perhaps resident to engage a real estate agent. Under in two or three weeks' time. I can see that the his amendment, a resident is only entitled to scheme operator would be a bit concerned engage a real estate agent if a unit is sold about having to pay half of a real estate within six months of the termination. Effectively agent's commission just because the former this means that a real estate agent would not resident was impatient to sell. be engaged until after six months has expired. Members will notice that my amendment This amendment will be ineffectual because it refers to inserting "within six months after the is already contained within clause 64. termination date". I selected six months Frankly, we had difficulty working out what because it ties in with clause 64, which also the member meant by this amendment refers to the use of a real estate agent. If six because he is really agreeing with what we months had elapsed, during which time the have already got in the legislation, that is, real scheme operator had had every opportunity to estate agents should be engaged after six sell the unit but nothing had happened, a months. If he was attempting to explain that resident would be taking a reasonable course residents and operators share the cost of of action by saying, "I think we should get a commission, I accept that, but that is simply real estate agent in to help us sell the not what these words are about. We can look property." As the Bill stands at the moment, at that at some future date if we want to the scheme operator would nod and say, amend this legislation further down the track, "That's fine." The former resident would hire but that is not the import of these words here the agent and have to pay 100% of the tonight. 5632 Retirement Villages Bill 30 Nov 1999

Mr LAMING: My explanation might have Mr LAMING: I move the following clouded the issue and confused the Minister amendment— because clause 68(2) would then read— "At page 44, after line 11— "However, if the former resident insert— engages a real estate agent to sell the right to reside within 6 months after the '(3) A scheme operator must not charge a termination date, the former resident must former resident any sales commission on pay the real estate agent's costs of the the sale of a right to reside in any sale, if any, and commission." particular accommodation unit. I have had the Parliamentary Counsel Maximum penalty for subsection (3)—40 specifically draft that for that intent. Since the penalty units.'." Minister has agreed with what I am trying to The reason I am moving this amendment achieve and if she agreed that the words as I is that I believe that it would be anomalous if have just read do in effect put that in we have a provision in place for a scheme place—that, if the former resident engages a operator to charge a commission on sales of real estate agent to sell the right to reside units. I say that because a scheme operator is within six months after the termination date, not registered as a real estate agent. As I then the former resident must pay the real understand the legislation in the real estate estate agent's costs. industry as a whole, a person must be That was not the way I was going to registered to be a real estate agent. It is my frame the amendment originally, but counsel understanding that scheme operators are not, suggested that this was the better way to do it and it would seem to be a primary malfunction and it was clear and it was consistent with the to allow scheme operators to act as real estate way other clauses are written. The more I read agents. it to myself, the more I can see that counsel Another reason that I feel uncomfortable was correct. It does, indeed, mean that, if a with allowing this to happen where it does person engages a real estate agent within that happen is that, for goodness' sake, the sale first six-month period, they pay all the costs. and resale of units within a village is a part of But if it is after the six-month period, then they their responsibility as a scheme operator. That share the costs as in clause 68(1). is one of the things they do. That is wrapped Ms SPENCE: I accept the member's up in the various fees that are charged to explanation there. I should not give him the residents in retirement villages. For them to indication that I necessarily agree with his add another commission on top of that is proposition that residents and operators certainly over the top. should share the cost of commission. I think it The third one which is perhaps the most is something that is worth exploring. However, I telling is that we have a situation in which a do not feel in a position tonight to vote for an scheme operator would be acting as a amendment. principal as well as an agent. I just see that as Mr Johnson: We want to go home to being a conflict of interest because the village bed. operator for all intents and purposes is the Ms SPENCE: This is serious stuff, I am owner of the unit itself. The resident has a afraid. The member opposite may not have permit to occupy. To have a person charging a retirement villages in his electorate, but a lot of commission or a fee to sell their own property us do and we actually care about this situation. on behalf of a person to whom they have given a licence to live in it I think is bordering I am telling the member for Mooloolah on being immoral, if not illegal. Of course, it that I do not feel in a position to agree to the would not be illegal because if it was it would sharing of commission at this point. I am not be in the Bill. However, I do not believe happy to look at it after further consultation that it should be in the Bill. It is something that with all parties. Frankly, I think it would be a should be discouraged. betrayal of the heads of agreement that was reached which discussed these matters to a This amendment is not unreasonable. I great extent to suddenly give to operators an am aware that the Minister circulated an additional burden of commission which they amendment—and I apologise for not getting have not discussed with the residents. While I back to her; I did not realise that the second- am happy to talk about it in the future with all reading debate was going to end so quickly. parties concerned, I am not happy to agree to As a matter of fact, I did not have my pudding. an amendment of this nature on this occasion. Ms Spence: You can go now. Amendment negatived. Mr LAMING: I can go now? 30 Nov 1999 Retirement Villages Bill 5633

I had the opportunity to read the selling the resident's right to reside in the amendment that the Minister circulated and I resident's accommodation unit. think that she must agree with the principle Maximum penalty—40 penalty units. that I am putting forward and perhaps the reasons why I am putting it forward, because '(4) However, subsection (3) does not her amendment was similar. However, she did apply to an operator under an existing reserve it only for the new contracts and not residence contract.'." the existing contracts. I think I am halfway Mr LAMING: All I can say is that I am there in the debate—she agrees with the somewhat disappointed that my amendment principle but she believes it should only attach is not seen as acceptable. I concede that it will to the new contracts. That brings up the not be accepted by the Minister and will not debate which we have visited and will visit get up. I can only say that I would have to again as to whether there should be two support the amendment to my amendment, levels—two classes—of contract in the because at least it is better than what is retirement village industry: those of existing currently in the Bill. I accept that. contracts and those of new contracts. I dare Mr BEANLAND: I understand the say we will revisit that. I believe that the impact amendment I have here which the Minister of and the reason for this amendment is has just circulated. The question I simply ask is strong enough for the Minister to accept the this: is this part of the original agreement? The amendment on all contracts for the three Minister said that the parties agreed to certain reasons—and I will not go through them things. The Minister could not accept the again—that I outlined. I think it is a very member for Mooloolah's amendment before reasonable amendment. because it was not within that agreement. I Ms SPENCE: There is one basic reason presume that this was technically left out in the why we do not want to make an amendment first place, that this particular error has now such as this retrospective. Before I go into been picked up and that the Government is that, I would just like to say that we do agree moving this amendment as it was part of the with the member for Mooloolah that operators original agreement. Is that the case or is this should not act as real estate agents and take something outside the arrangements? commissions for the sale of units unless, of Ms SPENCE: I do not know that this issue course, they are registered real estate agents. was discussed in the original working party or Then they would be able to do that. However, for the regional heads of agreement. Frankly, I there is a good reason why we cannot accept do not know. However, I could not accept the the retrospectivity of the amendment of the last amendment, which dealt with member for Mooloolah tonight, and that is retrospectivity and future laws, because it because many of the existing contracts burdened the operators with a cost which had already contain provisions that allow an not been worked out by the original working operator to charge a commission on the sale party. This amendment does not burden of a unit. operators in the future with an additional cost. I Residents and operators have already believe that, in the past, none of us wanted agreed to these contractual arrangements. It operators to act as real estate agents who would be wrong of us in Parliament tonight to charged commissions, but this no doubt undo that contractual arrangement and say slipped through many of the contracts in the that operators can no longer charge past. I do not think that this would go against commissions on existing contracts. For that the spirit of the working party's agreement. reason, we reject the amendment put forward Therefore, I am prepared to accept it tonight. by the member for Mooloolah. We ask him to Mr BEANLAND: I take it then that this is support the amendment which has been designed to ensure that, in future, as this circulated in my name which we believe applies to future arrangements, unless realises the intent of the amendment from the operators get real estate licences in some member for Mooloolah and which will apply to form, they will not be able to sell as they have all future contracts. I move the following done from time to time in the past and will not amendment— be able to have that particular section in their "At page 44, after line 11— contracts. Will this overcome that particular situation? They certainly will not be able to get insert— commission for sales, anyway. It is quite clear '(3) Except as provided by subsections (1) about that. I presume that they will still be and (2), a scheme operator must not required to be licensed, will they not? Can I charge a former resident a fee, charge or just have that point about the licences commission, however described, for clarified? 5634 Retirement Villages Bill 30 Nov 1999

Ms SPENCE: What we are doing tonight these contracts that people enter into are very is declaring the intent of this Parliament—that detailed. Their contents are not obvious at first is, in future, operators should not charge glance, or even after many glances, in fact. It commission on selling units. If they did have a is very difficult to compare one retirement real estate agents licence, they would have to village to another. The public information declare a beneficial interest in selling that unit. document would, I would hope, be in such a So I think it is a good amendment we are form as to allow residents who are moving and it makes very clear our intention. contemplating purchase and who do in fact The TEMPORARY CHAIRMAN (Dr Clark): proceed to weigh up one village against Before I put the question, I will explain the another village by looking at this document. procedure to members. The Minister's After all, the contents of this document are amendment will omit subsection 3 and insert a designed to simplify and allow clarification of new subsection 3 and 4. The question is that the various contents, aspects and operations the Minister's amendment to Mr Laming's so that one village can be compared to amendment be agreed to. another. There needs to be some way in which to compare one village to another. Amendment (Ms Spence) agreed to. Amendment (Mr Laming), as amended, I accept that it is currently very difficult. agreed to. We know of the fine print of dozens, and sometimes hundreds, of pages that contracts Clause 68, as amended, agreed to. run to. This is one way in which people will Clause 69, as read, agreed to. hopefully be able to focus on a number of Clause 70— important features. That is why this includes things such as the residents' contributions Mr BEANLAND (10.26 p.m.): This clause information, information about the payments deals with the appointment of a valuer. I the scheme operator must make to residents, presume that the chief executive officer who the funds information, facilities information, has the responsibility in this area will have a information about the village land, residents' group of valuers whom he or she will call upon rights and obligations to information, the resale for expressions of interest or something of that process information, dispute resolution nature. How is the chief executive going to information and accommodation information. obtain this list of valuers in the first place? How is this going to operate? I presume that there Having said that, I think it is important that would be expressions of interest called, or these documents do not end up being like something of that nature, and a number of contracts—that they do not become too valuers who would be happy to do this sort of difficult for residents to follow and understand. work would put their names forward. When the I think clarity is all important in this process. time came, if it was in Cairns, for example, Although some people will want to make the then obviously the chief executive would document as long as possible, I think that choose a valuer in Cairns. If it was in would simply destroy the process. I think this Rockhampton, the chief executive would document must contain essential information. choose a valuer from Rockhampton, etc. Is It should not be too short, but at the same that the way the system is going to operate, or time it should not contain too many pages. It is there some other system? I ask for some should also be in a suitable size and format so clarification as to how this is going to operate. that people can easily read and readily Ms SPENCE: I understand that the chief understand it. The reason I say that this is a executive will advertise and will select and core feature of this legislation for the future, keep a panel of valuers from which we will when people are looking at going into choose to undertake those valuations. retirement villages, is that it will provide the information they need when they go to make Clause 70, as read, agreed to. that acquisition. Clauses 71 to 73, as read, agreed to. I looked previously and I must have Clause 74— missed it. I accept that it is here somewhere. I Mr BEANLAND (10.28 p.m.): Clause 74 ask about the size of type that is being looked relates to the form and content of the public at. Is the Minister leaving it to the chief information document. I believe that this is a executive officer because this is in an very essential feature of this legislation and approved form? Size of print is so important, one which will make a tremendous difference as is the length of the document. I know what to people when they are looking at becoming happens and I know how easy it will be to a resident of a retirement village. I say that defeat the system. The size of the print, the because it is quite clear now that many of length of the document, the types of words 30 Nov 1999 Retirement Villages Bill 5635 used and the sort of information contained are clause places no time limit on when this all very important. information must be provided. Under section This is a core, essential, vital feature of 19 of the Victorian Retirement Villages Act this legislation. Sure, we are fixing up some 1986 there is a requirement on the village matters retrospectively, but in the future owner's agent to give all residence documents hopefully many of the problems that are to a prospective resident at least 20 days occurring out there and that the residents face before the resident enters into a contract. when they go into retirement villages will have Prevention is always better than cure, and one been resolved by this particular document in way of minimising problems after contract this first instance. People can tell me that there documentation is signed is to make sure that are contracts at the moment and that people relevant information is given to a potential should get lawyers, but when contracts run to purchaser as soon as possible. some hundreds of pages it is very difficult to Under this clause, a public information compare one retirement village with another. document could be given to a resident 10 This will help with comparisons. This will help minutes before a contract is signed and before with the actual purchase. All around, I hope it a resident has had the chance to understand will resolve many disputes before they get its implications. While there will be a 14-day started, because the exact situation will be cooling-off period, I would have thought that spelt out in this particular document. this legislation should have clearly set out time All of these issues I raise are terribly guidelines for the provision of this key important. I accept that some of this information. Why is this Bill silent on the period information might be somewhere else. I have before which a public information document looked in a couple of places and have not has to be given before contract execution and been able to find it. That is why I raise it at this why was the approach adopted in Victoria not time. I think this is all important in the followed? legislation. Ms SPENCE: The answer is that the 14- Ms SPENCE: The member for day cooling-off period addresses this. Indooroopilly is right in acknowledging that the Mr GRICE: I suppose it is assumed that new public information document is one of the existing residents will be given a current public most important features of this legislation. He information document or any amendments is right in saying that in the past one of the made to their documents subsequent to the problems has been the difficulty of making date of issue. Could the Minister comment on comparisons between one contract and that? Could the Minister also comment on another. In fact, retirement village residents what assurance residents have that any have said to me that in many parts of the amendments have been included? I think it is State it is actually very difficult to find a solicitor also essential that any amendments to the who is skilled enough to read the contracts original document supplied to them which and advise on them. As contracts are getting forms part of an existing contract not be more complicated, solicitors simply do not prejudicial to a resident relying on that necessarily have the expertise to advise on contract. this, which is why the public information Ms SPENCE: Basically, the public document is so important. information document is standardised. It will be We have determined that the public a 20-page document that is designed for information document will be no more than 20 residents to make comparisons between one pages long. We have not determined the size village and another. The contract will obviously of type. This is a matter that will be determined be longer in nature. However, we are trying to by the working party and will be set out in the standardise contracts. Hopefully they, too, in regulations. I agree that this is an important the future will provide easy comparisons for aspect of this legislation. residents. I am advised that, in answer to one of the member's questions at least, there is no Clause 74, as read, agreed to. lowering of any existing contractual provisions. Clauses 75 to 83, as read, agreed to. Clause 84, as read, agreed to. Clause 84— Clauses 85 to 90, as read, agreed to. Mr DAVIDSON (10.36 p.m.): As I Clause 91— mentioned during the second-reading debate, Ms SPENCE (10.39 p.m.): I move the this clause requires a scheme operator to give following amendments— a prospective resident a copy of the public information document before the resident "At page 54, lines 24 to 28— enters into a residence contract. However, the omit, insert— 5636 Retirement Villages Bill 30 Nov 1999

'(b) hold amounts standing to the credit Amendment No. 3 is necessary because of the fund in a separate account— of concerns that have arisen whereby (i) that is established and kept for the contributions to the fund may be subject to purpose; and income tax in the hands of the operator. This amendment will ensure that the fund is not (ii) the name or style of which includes— designated as a trust account but as a fund (A) the operator's name; and held in the name of the operator and the (B) the retirement village scheme the village. Payment of money into the fund will be account is for followed by the words made by the operator and, in effect, there will 'secured capital replacement fund be no receipt of income by the operator. account'; and Amendment No. 4 is necessary to ensure (iii) that requires withdrawals from it, that any income tax that is payable on interest whether by cheque or otherwise, to earned from investment of the fund can be be signed by the scheme operator.'. deducted from the fund. The provision limits the amounts that can be withdrawn from the At page 55, lines 4 to 9— fund to the purposes listed. omit, insert— Amendments agreed to. '(3) No amount standing to the credit of Clause 91, as amended, agreed to. the fund may be applied or used for a Clause 92— purpose other than— Ms SPENCE (10.40 p.m.): I move the (a) replacing the village's capital items; following amendment— or "At page 55, line 19, 'a quantity'— (b) paying the quantity surveyor's reasonable fees for giving a report for omit, insert— section 92; or 'an independent quantity'." (c) paying tax on amounts paid into the This amendment is necessary to ensure fund under section 94(1)(b).'. that the quantity surveyor engaged to '(3A) A person who applies or uses an undertake the reports about the amount amount in contravention of subsection (3) required for capital replacement is an commits an offence. independent quantity surveyor and not an employee or associate of the scheme Maximum penalty—540 penalty units.'. operator. At page 55, line 16— Amendment agreed to. omit, insert— Clause 92, as amended, agreed to. 'Maximum penalty—540 penalty units. Clauses 93 to 96, as read, agreed to. '(5) Immediately the fund is established, a Clause 97— statutory charge is created over it for the Ms SPENCE (10.41 p.m.): I move the benefit of the residents of the village to following amendments— ensure the availability of the balance of the fund for the purposes mentioned in "At page 58, lines 17 and 18— subsection (3). omit, insert— '(6) The charge has priority over any other '(b) hold amounts standing to the credit charge over the fund given by the of the fund on trust solely for the scheme operator, including a charge benefit of residents in a trust account given before the commencement of this that—'. section, other than a charge created and At page 59, after line 2— given priority over other charges under a Commonwealth law or another law of the insert— State. '(c) paying tax on amounts paid into the '(7) Regardless of any change in who fund under section 100(1)(b).'. controls the scheme's operation, the At page 59, line 11— charge is irrevocable and continues until— omit, insert— (a) the village ceases to operate as a 'Maximum penalty—540 penalty units. retirement village scheme; and '(5) Regardless of any change in who (b) all former residents have been paid controls the scheme's operation, the trust their exit entitlement.'." is irrevocable and continues until— 30 Nov 1999 Retirement Villages Bill 5637

(a) the village ceases to operate as a To obviate these concerns, this clause retirement village scheme; and should be amended to state— (b) all former residents have been paid "... that the trustee appointed under their exit entitlement.'." clause 46(1) shall also be the only trustee appointed to manage the maintenance Amendment No. 7 is necessary to ensure reserve fund trust account and endorse that contributions by the residents to the and issue withdrawal cheques available maintenance reserve fund will not be for the dissipation of the funds, available considered to be income of the operator. It will for the purposes specified." ensure that the contributions of the residents will not then be subject to income tax in the Also within these confines, and in connection hands of the operator. with the maintenance reserve fund, the income tax implications of present legislation Amendment No. 8 is necessary to ensure need further consideration. that any income tax that is payable on interest Under income tax ruling 94/24, retirement earned from investment of the fund can be village operators are given most generous deducted from the fund. The provision limits income tax concessions. Basically, the the amounts that can be withdrawn from the following provisions apply. A deduction is fund to the purposes listed. allowed for all development costs incurred, Amendment No. 9 is necessary so that including landscaping, roads and footpaths, as the trust remains in place for the benefit of the well as holding costs during development and residents to maintain the village. The trust will normal operating costs. The operator is be irrevocable and will continue until a village assessed on the sale price of units—original or ceases to operate as a retirement village and resale—exit fees, service fees and other until all former residents have been paid their extraneous income. A deduction is also exit entitlements. The trust will also continue allowed for exit entitlement paid to a former regardless of whether the village is sold and resident. another operator takes over the responsibility It will be observed that these provisions of the fund. are most generous. However, with the Mr DAVIDSON: This clause provides for maintenance reserve fund being paid to and the operator to establish a maintenance under the direct control of the operator, the reserve fund to be held in a trust account upon amounts paid into that fund by residents for which an operator is to sign withdrawal the reserve against the future long-term cheques. The security envisaged by the use of maintenance costs will, under paragraph 10 of a trust account under this provision is illusory. that ruling, become assessable income of the The account will hold, on behalf of residents, operator subject to tax in his hands. Thus the their joint contributions, formerly paid into a residents' reserve fund contributions can be sinking fund, to finance repairs, renovations, eaten away by income tax payable by the replacements and maintenance of a operator. To obviate this, the funds must substantial but infrequent or irregular nature. remain trust funds held on behalf of residents This is the generally accepted purpose of such by an independent trustee. In this way, it will a fund. The purpose of payment into a trust only be the interest earned on the reserve account is self-evident, and funds should only which will be assessable. To ensure taxation at be available with the approval and a reasonable income tax rate, residents in authorisation of an independent trustee. It is actual residence from time to time should be inappropriate that the operator act in this presently entitled to have both the income and capacity. capital of the reserve applied for the purposes intended. Clause 46(1) provides for the appointment Again, to obviate these concerns, this of a trustee for ingoing contributions under a clause should be amended in the following residency contract. This person should also act manner— as trustee for funds held on behalf of residents, available only for the purposes "... funds must remain trust funds held on specified, and should not be available to a behalf of residents and managed only by receiver or liquidator in the case of insolvency the appointed trustee. Only interest of a manager or operator—conditions which earned on the reserve fund will be allowed are presently in existing contracts. Residents to be assessable and be paid from this are responsible for the replenishment of this reserve." reserve and should not see it dissipated by a Ms SPENCE: The intent of the receiver or liquidator preparatory to the sale of amendments that I have just moved is about the village to another person. ensuring that residents of retirement villages 5638 Retirement Villages Bill 30 Nov 1999 do not have to pay tax on their trust accounts. working party certainly discussed this at great That is all we are doing in this amendment length, and the operators were involved in that tonight. I do not know where the rest of what discussion. They believe that 10 years is a the member for Noosa said came from. reasonable time within which to expect In the original legislation, we were calling it retirement villages with inadequate sinking a trust account. We got advice from the funds to maintain appropriate capital taxation department that if we changed the replacement funds. This is not just for the wording and the intent of this legislation from benefit of the operator; this is for the benefit of calling it a trust account to moneys held on residents of retirement villages so that they trust, not only would that more clearly establish maintain adequate capital replacement funds. that this is the residents' money, but it would It is for the benefit of future residents of those mean that it would not be taxable. That is all villages. It is very difficult for a smart purchaser we are doing in these particular amendments. to be talked into buying into a village which has an inadequate sinking fund. It is to the Amendments agreed to. advantage of all residents that these funds be Clause 97, as amended, agreed to. properly maintained. I am afraid that 10 years Clause 98— is the length of time that we expect them to take to maintain and establish these adequate Ms SPENCE (10.46 p.m.): I move the funds. We have not discussed alternatives to following amendment— the 10-year rule. "At page 59, line 14, 'a quantity'— Clause 98, as amended, agreed to. omit, insert— Clauses 99 to 102, as read, agreed to. 'an independent quantity'." Clause 103— This amendment is necessary to ensure Mr DAVIDSON (10.51 p.m.): Under clause that the quantity surveyor engaged to 103, the operator should be prevented and undertake the reports about the amount prohibited from paying, out of residents' required for the maintenance reserve fund is service charges, his holding costs such as an independent quantity surveyor and not an rates, etc., on undeveloped land held for employee or an associate of the scheme future development. He is allowed an income operator. tax deduction for these costs under income tax Amendment agreed to. ruling 94/24, as I previously indicated. As with Mr LAMING: Proposed subsection (3)(a) any other developer, these costs form part of states that— the establishment costs. Therefore, this section should be replaced by an amendment "... if the first resident in the village worded as follows— occupied an accommodation unit 5 or more years before the commencement— "An operator is expressly prohibited 10 years." from paying from a resident's service This refers to the time that is allowed for the charges his holding costs (e.g. rates etc) fund to be built up. I did mention this in my on undeveloped land held for future speech on the second reading of the Bill. I development." know of a village—and there are probably I am not moving an amendment here; I am others—that is in a run-down condition. I am simply bringing this to the Minister's attention. somewhat concerned that these villages, Clause 103 (3) specifically prohibits an starting from less than a zero base, might find operator from including in a general services some difficulty in reaching the stage that the charge an amount for replacing village capital fund is required to be at under the provisions items, and further provides that this does not of the Bill. I am just wondering whether there is apply to an existing residence contract. a mechanism for the department to assist or Presumably the other provisions contained in make particular allowances for a village that is Part 5 do apply to existing contracts. Clause obviously having difficulty getting its 113 provides benefits additional to those maintenance fund into the situation that is specified in the Bill—that is, in relation to the required under the legislation within 10 years. PID. This is permitted under clause 74(6), but Ms SPENCE: The member for Mooloolah clause 37(4) provides that the Act shall prevail raises a legitimate issue. I agree with him. to the extent of any inconsistency with the PID; There are many, many villages in Queensland thus the additional provisions in the PID may that have inadequate sinking funds. That is be an inconsistency and, therefore, are of no why we have addressed this in the legislation effect. Will this allow the operator to be that members are debating tonight. The permitted to amend the PID to provide lesser 30 Nov 1999 Retirement Villages Bill 5639 benefits than previously contractually This amendment refers to subclause (3), which permitted? reads— This will affect every contract in existence "However, subsections (1)(a) and (b) and should be remedied by more precise and (2) do not apply to a former resident rulings. For the Minister's benefit, an under an existing residence contract." amendment to indemnify existing contract I guess this is the great disappointment in this holders may be necessary to prevent such Bill. It was predictable that it would invoke changes to existing contracts since they are some debate. This is the clause that sees a specifically excluded from clause 103(3). probable continuation of the erosion of an Ms SPENCE: I move the following elderly person's assets. This is a situation that amendment— has been very well canvassed. A number of people in my electorate are affected by the "At page 62, line 19— fact that this provision is not in the existing Act. omit, insert— I am trying to amend this clause tonight to do away with the anguish that many former 'period the resident resides in the elderly residents and their families suffer. resident's accommodation unit. This situation is continuing. Former '(6) Subsection (1) or (2) does not prevent residents, who have left their units, find that the resident from being required to pay, they have to continue paying maintenance as part of the charge for a general service funds. These people have sometimes moved under a residence contract, an amount on to another village, a nursing home or a directly or indirectly attributable to GST hostel where they are also paying payable for the supply by, or to, the maintenance fees. They have to keep paying scheme operator for the service. maintenance fees on an unsold independent- '(7) In this section— living unit. This is financially and mentally crippling for these people and their families. "GST" has the meaning given by A New Tax System (Goods and Services Tax) Act I have heard the arguments against 1999 (Cwlth). including existing contracts in the 90-day period. I do not believe that there is an "supply" has the meaning given by A New argument that has been put over the past two Tax System (Goods and Services Tax) Act years which I have not heard. Frankly, I am 1999 (Cwlth).'." completely unmoved. I do not accept those This amendment is necessary so that general arguments. service charges can include the amount of The provision contained in the goods and services tax that an operator may amendment I have moved was accepted in be required to pay for those services. It is not the first draft produced by the previous unreasonable that operators should be entitled Government. It was accepted by the to pass on their costs with regard to increases operators. It was also accepted by the in taxes, including the GST. However, because representatives of the villages. However, for of section 6 of the Acts Interpretation Act some reason it got off the track. I believe it 1954, a reference to an Act in Queensland had something to do with the village legislation is a reference only to a Queensland representatives who wanted to make sure that Act and will not include a Commonwealth Act. they covered every aspect of the Bill before Therefore, the section needs to specifically they would agree to this particular aspect refer to the Commonwealth GST legislation for being attended to. It has been accepted by a this charge to be passed on by operators. working party in the past. Clause 103, as amended, agreed to. The amendment I have moved doubles Clause 104— the 90-day period in recognition of the fact that it would be fairer on the scheme operators to Mr LAMING (10.54 p.m.): I move the allow them a more reasonable time. The same following amendment— situation applied to the earlier amendment I "At page 63, lines 6 and 7— moved which shared the costs of a real estate agent involved in the resale of a unit. I have omit, insert— doubled the 90-day period to a six-month '(3) However, subsections (1)(a) and (b) period. If my amendment is accepted, this will and (2) do not apply to a former resident bring the clause into line with the provisions of under an existing residence contract for 6 clause 64 and clause 67. If it is good enough months after the resident vacates the for new contracts to contain this provision, it unit.'." would be inequitable not to extend the 5640 Retirement Villages Bill 30 Nov 1999 provision to the long-suffering people who Mr LAMING: No, I am not given to tears. have to move out of their independent units, It is a most important amendment and, to use but who still have existing contracts. the Minister's own words, it is not something It has proved to be, perhaps, the major that we should be joking about. A lot of other flaw in the 1988 legislation. This matter has people in this State, along with their families, been dealt with in New South Wales. I are in tears about this issue. I think that this is understand that provisions similar to the the opportunity to fix it. Let us bite the bullet, amendment I have moved apply to existing be a bit white knuckled about it, and do it. contracts in New South Wales. The whole Ms SPENCE: I am happy to respond to world has not come tumbling down in New the member for Mooloolah. In terms of the South Wales. general fees, I would like to explain clearly I believe it would be very remiss of this what the Government is proposing and what Minister and this Government to allow this the member for Mooloolah is proposing, clause to proceed in its present form. I have because I suspect that very few people in this not moved to delete the clause even though Chamber actually understand what each side that action was available to me. It would have is putting forward. The Government is meant that the people with existing contracts proposing that, once a resident leaves a would have had the same provisions as retirement village, that person will continue people with new contracts. I believe I have paying their general fees for three months and been reasonable in this approach. then after that, both the resident and the operator will share the cost equally of the If village operators cannot sell a property general fees. We believe that this is a fair in a six-month period, one must wonder why. system because, after three months, there will People have told me that it is sometimes in then be a great incentive for the operator to their best interests not to sell a property sell that unit to avoid paying part of the because they still gain the benefit of the general fees. maintenance fees that are rolling in. In many cases these people do not have to provide the The member for Mooloolah is proposing services because the residents are not that, when a resident leaves a village, they will occupying the units. not pay any general fees for six months and If it were not for this aspect of the then, after that, they will go back and pay full legislation, I would be surprised if it had been fees for the rest of the time that unit is not pushed onto the agenda—and, I might add, sold. Where is the incentive for operators to maybe pushed off the agenda so often for so sell that unit? More likely, the operator will hold many years. I find it quite iniquitous and I find out for six months. They will have no incentive it very disappointing that this most important in the world to sell that unit, because they are provision is not allowed to be addressed. getting full general fees after the six-month period. I am not moving to delete this clause, which would put the old contracts and the new This issue occupied an enormous amount contracts on the same footing. My of time and debate of the members of the amendment moves the period in this clause to working party. It was agreed that general fees be the same as that contained in clauses 64 should be capped. Tonight, the system that and 67, which is a six-month period. If the we are putting forward was agreed by all sc hem e op era tor s an d t he members of the working party to be fair. The managers—together with the help of real one thing that they did want, but which the estate agents, who are now allowed under the member is not proposing, is retrospectivity. provisions of this Bill—cannot sell the property, Many residents would like this provision to be then the price is too high. They have to accept made retrospective. However, they agreed that the price that the market will give them for it. they would be unable to agree to the When operators will not accept the price that a retrospectivity of these provisions. unit is worth on the open market, sometimes I We believe that what we are putting really wonder about their motives. forward tonight in our legislation offers a real I could not speak strongly enough in solution to this problem of general fees—a support of this amendment without perhaps solution that is fair to residents, is fair to breaching the bounds of what I should say in operators and, more importantly, gives this place. I feel very strongly that this operators a great incentive to get rid of that Parliament should support this amendment, unit. After three months, they will be kicking in because I believe that it is reasonable and it for the general fees. is— Under the member's scheme, after six Ms Spence interjected. months the operators will have no incentive at 30 Nov 1999 Retirement Villages Bill 5641 all to sell the unit, because the resident will be all people who have contracts with retirement picking up the fee. The member should not villages. Until this legislation is passed, they will forget that, in many cases, these units are eventually fall into the trap that so many deceased estates. The people involved will be people are in now. At the end of the day, to picking up the entire cost of those general bring legislation relating to retirement villages fees. So for those reasons, we cannot support to this Chamber and not fix the main problem this amendment. is a waste of flaming time. I can only ask the Mr LAMING: Once again, the Minister has Chamber to support this amendment. not understood the content and the Ms SPENCE: I acknowledge that this intention— legislation does not address all the wrongs that Ms Spence: You don't understand what are in place in existing contracts in we're doing here. Queensland. It would be wrong to expect that, through this legislation, this Government can Mr LAMING: No, I have had this fix up 10 years of past poor retirement village amendment prepared carefully by legislation in this State. Nor can we, as Parliamentary Counsel. Once again, the responsible members of Parliament, start Minister has to understand what the unravelling every aspect of existing contracts. amendment says. It states that sections (1)(a) This deal was agreed to by operators and and (b) and (2) state that the general service residents alike. Frankly, the member is asking charges do not apply until after the right to us to support something that the operators reside in the unit is sold and after the 90-day would be horrified at, because they have an period. We are saying that those provisions do important contractual relationship with their not apply to a former resident under existing existing residents. By this amendment, the contracts for the first six months. The Minister member is adding an enormous financial is saying the reverse. It does not mean that at impost to those operators. I am afraid that, as all. It means, effectively, that the maintenance a responsible Government, we cannot allow fees continue for the first six months and then the member to do that. after that, the provisions apply to an existing Question—That Mr Laming's amendment contract in exactly the same way as they do to be agreed to—put; and the Committee a new contract. divided— This issue has received a lot of attention AYES, 39—Beanland, Black, Borbidge, Connor, from Parliamentary Counsel. The Minister has Cooper, E. Cunningham, Davidson, Gamin, Goss, actually reversed what it means. That is not Grice, Healy, Hobbs, Horan, Johnson, Kingston, what it means. I can perhaps excuse the Knuth, Laming, Lester, Lingard, Littleproud, Malone, Minister for being confused on this issue. Mitchell, Nelson, Paff, Pratt, Prenzler, Quinn, Rowell, However, I cannot excuse myself for not Seeney, Sheldon, Simpson, Slack, Springborg, pointing out the Minister's error in misreading Stephan, Turner, Veivers, Wellington. Tellers: the amendment. Baumann, Hegarty NOES, 40—Attwood, Bligh, Boyle, Braddy, The Minister said also that the residents Bredhauer, Briskey, Clark, J. Cunningham, D'Arcy, would not agree when the residents got Edmond, Fenlon, Foley, Fouras, Gibbs, Hamill, together with the operators to talk about these Hayward, Hollis, Lavarch, Lucas, Mackenroth, provisions. Sometimes, I really wonder who McGrady, Mulherin, Musgrove, Nelson-Carr, Nuttall, speaks for residents. I speak to residents and I Palaszczuk, Pearce, Pitt, Reeves, Reynolds, Roberts, listen to residents. None of them are telling me Robertson, Rose, Schwarten, Spence, Struthers, what the Minister is saying—that the residents Welford, Wells. Tellers: Sullivan, Purcell are the representatives. I have talked to some Resolved in the negative. of the people who have talked to the Minister. Clause 104, as read, agreed to. I have expressed my displeasure at some of the things that they have been saying, Clauses 105 to 125, as read, agreed to. because I believe that what they have said Insertion of new clause— has not been in the best interests of the Ms SPENCE (11.15 p.m.): I move the residents—certainly not the ones whom I following amendment— represent; the ones who are still paying their "At page 74, after line 11— maintenance fees. insert— As I said earlier, I feel that this is the major point of this whole legislation, yet it has 'Division 5—Exemption from stamp duty not been addressed. It certainly has not been and charges addressed for existing contracts. This issue 'Exemption from stamp duty and charges does not relate just to the people who are '125A. A notice by the chief executive experiencing problems now, it affects virtually under section 116(2), 117(4) or 125(2) 5642 Retirement Villages Bill 30 Nov 1999

and any other instrument given to the Insertion of new clause— registrar of titles to give effect to the Mr WELLINGTON (11.18 p.m.): I move recording of a charge or the release of a the following amendment— charge mentioned in those sections by the registrar, is exempt from the payment "At page 92, after line 18— of— insert— (a) stamp duty under the Stamp Act 'Resident may apply for unjust provision to 1894; and be set aside (b) registration or other fees under the '169A.(1) This section applies if a resident Land Title Act 1994." of an existing retirement village believes a This amendment is necessary because provision of the resident's existing the exemption from stamp duty and other residence contract is harsh, oppressive or registration fees as the result of the creation of unconscionable. a charge by statute that previously existed '(2) The resident may apply to the chief under the Retirement Villages Act 1988 should executive for an order by a tribunal to be continued in the new legislation. have the provision set aside.'." New clause 125A, as read, agreed to. The intent of the amendment is to enable Clauses 126 to 155, as read, agreed to. current residents of retirement villages to apply Clause 156— to the tribunal for a review of the appropriateness of clauses contained in their Ms SPENCE (11.16 p.m.): I move the existing contracts. One thing we must all following amendment— clearly understand is that, by and large, this Bill "At page 88, line 20, 'of the does not apply to existing contracts and the termination'— problems associated with them. For example, omit, insert— some village agreements have clauses that require the residents to vacate their units 'after the payment of the former resident's before the village management advertises the exit entitlement'." units for sale. I believe that this type of clause The amendment is necessary because is inserted for the sole benefit of the village disputes may arise in relation to the operator and should be subject to review by a revaluation of units that may occur six months tribunal. Let us face it: the normal situation is after the termination of the contract. It also that a house is listed for sale whilst it is still addresses difficulties for executives trying to occupied because most people, and this sell units as part of the estate of a deceased applies particularly to elderly people who live in resident. The amendment will ensure that the retirement villages, need the proceeds from dispute notice must be lodged within four the sale of their residence in order to move months of the payment of the exit entitlement, somewhere else. which is effectively the end of the relationship I believe that it is harsh and oppressive to between the resident and the operator. require the resident of a village to vacate his or Amendment agreed to. her unit before the management advertises it Clause 156, as amended, agreed to. for sale simply because this requirement is contained in the fine print in the retirement Clauses 157 to 168, as read, agreed to. village contract in existence between the Clause 169— resident and the village management. I Ms SPENCE (11.17 p.m.): I move the believe that some residents in some retirement following amendment— villages are being discriminated against because of the application of these types of At page 92, line 14— clauses. Residents who are concerned about omit, insert— how the village management operators attend 'section 86;1 and'. to the advertising of their units should be able to apply to the tribunal for a review of the 1 Section 86 (False or misleading appropriateness of clauses contained in their documents)." contracts. If there is a clause contained in a The amendment is necessary to correct retirement village contract that appears to be an incorrect cross-reference in the Bill. harsh or oppressive, I believe that it should be capable of being reviewed by the tribunal to Amendment agreed to. either rebut the claim that the clause is harsh Clause 169, as amended, agreed to. and oppressive or, if it is found to be harsh 30 Nov 1999 Retirement Villages Bill 5643 and oppressive, it should be capable of Normally applicants must satisfy a amendment. threshold test as to whether an action can be I note that the Bill does contain some maintained. Generally where legislative retrospective aspects. In particular, I refer to provisions are made for opening contracts, a where the Bill prohibits village operators from basic requirement is that the applicant must exercising powers of attorney for residents show that the contract was harsh, oppressive even if that is permitted under current and unconscionable or unjust at the time the contracts. contract was entered into. This clause makes I urge members to support my no requirement for an applicant to be able to amendment, which simply enables residents to prove this and opens the gate for residents to apply for unjust provisions to be set aside. merely change their mind as to their residence What I propose is that if a resident of an contract at a later date. In some cases this existing retirement village believes a provision could be years afterwards. of their contract is harsh or oppressive, under At the time that residents entered into my proposal the resident may apply to the their contracts there was no legislative tribunal to have the provision in dispute set requirement setting time limits on the payment aside. Under my proposal, for the tribunal to of general service charges, for example, even be able to set aside a provision of an existing though we have seen the Opposition try to contract, the tribunal must be satisfied that the undo that tonight. It was up to negotiations provision of the resident's contract in question between operators and prospective residents is harsh and oppressive. There are thousands to bargain for a suitable term. It would now be of elderly people who have been waiting inequitable to retrospectively allow residents to anxiously for years to receive some relief from have their residence contract rewritten by the these circumstances. They have suffered tribunal to the detriment of the retirement enough and I urge members to show some village and the operator in question. Such a compassion towards these people and support provision could jeopardise the financial viability my amendment. of some villages where cash flows have been Ms SPENCE: The honourable member calculated on the basis of existing contracts. for Nicklin proposes in new clause 169A that Operators have agreed to alter the position an existing resident living in a retirement village with respect to future contracts, and this is under an existing contract at the time the Act reflected in the Bill. commences will have a right to apply for an As I have already pointed out, if at the order to the Retirement Villages Tribunal. time a resident entered a residence contract There are a number of objections that I wish to that person had been overborne by duress or make to this proposal. However, before undue influence on the part of the operator, a dealing with them, I point out that the remedy is already available to the resident, proposed relief in the event of a resident's that is, to take that issue up in a court of law. contract being harsh, oppressive or Question—That Mr Wellington's unconscionable would be available only for amendment be agreed to—put; and the existing residents and not for those in the Committee divided— community who may enter residence contracts AYES, 39—Beanland, Black, Borbidge, Connor, after the new legislation comes into force. Cooper, E. Cunningham, Davidson, Gamin, Goss, The proposal put forward by the Grice, Healy, Hobbs, Horan, Johnson, Kingston, honourable member would create two classes Knuth, Laming, Lester, Lingard, Littleproud, Malone, of retirement village residents in Queensland. Mitchell, Nelson, Paff, Pratt, Prenzler, Quinn, Rowell, There is no basis on which such discrimination Seeney, Sheldon, Simpson, Slack, Springborg, or artificial lines of distinction within a seniors Stephan, Turner, Veivers, Wellington. Tellers: Baumann, Hegarty community should be encouraged. The provision would be unworkable because it has NOES, 39—Attwood, Bligh, Boyle, Braddy, the potential to destabilise the retirement Bredhauer, Briskey, Clark, J. Cunningham, D'Arcy, Edmond, Fenlon, Foley, Fouras, Gibbs, Hamill, village industry in Queensland. In addition, I Hayward, Hollis, Lavarch, Lucas, Mackenroth, am concerned that the provision suggests that McGrady, Mulherin, Musgrove, Nelson-Carr, Nuttall, an applicant will have an entitlement to be Palaszczuk, Pearce, Pitt, Reeves, Reynolds, Roberts, heard based solely on that person's belief as Rose, Schwarten, Spence, Struthers, Welford, Wells. to whether an existing contract is harsh, Tellers: Sullivan, Purcell oppressive or unconscionable. Once a resident The numbers being equal, the Chairman had formed this opinion, the resident would be cast his vote with the Noes. able to apply to the chief executive for an order by the tribunal to have the provision set Resolved in the negative. aside. Clause 170, as read, agreed to. 5644 Forestry Amendment Bill 30 Nov 1999

Clause 171— We have heard a lot of rhetoric from the Mr WELLINGTON (11.32 p.m.): This Government ever since this so-called deal was amendment is consequential on the previous announced as being the saviour of the timber amendment that I moved, so I seek leave to industry, which is something that it is not. It is withdraw it. far from it. A lot of people were conned into thinking that this would in fact be the answer to Leave granted. our prayers as far as a regional forest Clause 171, as read, agreed to. agreement was concerned. As I have said, it is Clauses 172 to 192, as read, agreed to. not an agreement. The main peak players have been left out. It was just a set of so- Mr WELLINGTON (11.33 p.m.): The called principles with no detail and no amendment that I was going to move is consultation. As such, we are now finding that consequential on the previous ones. I seek the people who were conned in what was just leave to withdraw it. a cruel hoax are now realising that they have Leave granted. been conned. Clauses 193 to 238, as read, agreed to. At a meeting yesterday in Gympie there were some 20 mayors and local authorities Schedule 1, as read, agreed to. represented. I have resolutions from that Schedule 2— meeting which I will read into the Hansard Ms SPENCE (11.34 p.m.): I move the which demonstrate very clearly that this is not following amendment— a legitimate agreement at all. In fact, it is full of holes. It will not hold water. It will not stand up. "At page 122, line 3 '12(2)'— As far as we are concerned, it certainly has not omit, insert— yet received support from the Federal '12(3)'." Government, so it can hardly be billed as a genuine regional forest agreement. This amendment is necessary to correct an incorrect cross-reference in the Bill. Where was the workers' endorsement of this deal? I will read into the Hansard some Amendment agreed to. press releases that indicate clearly where they Schedule 2, as amended, agreed to. stand. What happens to the 80 workers who Bill reported, with amendments. are to lose their jobs at Nandroya? Where was their endorsement? Obviously, there was none. Where were the shire councils' Third Reading endorsements of this deal? Where was the Forest Protection Society's endorsement of Bill, on motion of Ms Spence, by leave, this deal? The Forest Protection Society was read a third time. one group that actually stood up for its members. I cannot say the same for the FORESTRY AMENDMENT BILL Timber Board or the one representative who supposedly was going to represent them. But Second Reading the Forest Protection Society has played its Resumed from 12 November (see part and will continue to play its part, because p. 5054). this issue is not dead yet. In fact, it is just Hon. T. R. COOPER (Crows Nest—NPA) beginning to spring to life once more now that (11.35 p.m.): I noted in the Minister's second- the confidence trick has been exposed. reading speech that one of the objectives of I say from the outset that we will not be the Forestry Amendment Bill is to implement opposing the Bill, but it is certainly very difficult part of the Queensland Government plan for to support it as it stands. We do so because of the south-east Queensland regional forestry the so-called 25-year guarantee. I will speak agreement. The Forestry Amendment Bill more about that later, as well as the 10-year 1999 is misleading on two fronts. Firstly, this is extension under the Trade Practices Act. not a plan. This is in fact just a deal between Therefore, in order to give as much support as the Beattie Labor Government, the Australian we can to the industry, we will not oppose it, Rainforest Conservation Society, the but I will certainly be moving amendments in Queensland Conservation Council, the the Committee. We will divide on at least three Wilderness Society and one representative of occasions to demonstrate clearly that we are the Queensland Timber Board. Secondly, it is not happy and that the 25 years is in fact not a legitimate agreement either, because another con. The period needs to be not just most of the actual stakeholders were ignored at least 35 years, but 35 years where the and left out when the deal was cut. industry has access to timber that has some 30 Nov 1999 Forestry Amendment Bill 5645 sustainability and some life. Quite obviously, Government. It can buy time with these sorts what it has been left with for 25 years will not of deals and after that it will not have to worry, last 25 years at all. Those in the industry know because all the mills will be closed down it and we know it. Again, it is just one of those anyway. We all know very well that that is the dreadful, cruel tricks that has been played on aim. them. Mr Palaszczuk: What did you do in two I would also like to know where the rural and a half years? and regional communities' endorsement of this Mr COOPER: One thing is for certain: we deal is. There is none. I would like to know were not going to ram this sort of rubbish down where the contractors' endorsement of this the then Opposition's neck. We were not going deal is. There is none. The graziers, who are to do sleazy deals behind closed doors with certainly affected by it, and the leaseholders in the Greens just for the sake of a few lousy the forestry areas, again, were not involved in preferences. That is all Labor has done. That any consultation. The beekeepers, trail riders, is all it has ever done. This has not been four-wheel-drivers and campers have not been based on science; this has not been based on included, in spite of endless promises that they proper data; it has been based purely on a would be. They are aware of it. They are not sleazy deal. We know it, the Government stupid. If anyone thinks this thing has been put knows it and the Greens know it. That is all to bed, they have another think coming. they care about. All they want to do is close None of those people I mentioned have the industry down. They have said so. They endorsed this so-called plan because they have said that their bottom line is to close it were not privy to the wheeling and dealing that down. That is all they want. They will creep up was conducted behind closed doors. All of on it bit by bit. these groups of the community have more When the Government is finished with the stake in the forest industries than those three South-East Regional Forest Agreement, it will conservation organisations will ever have, yet move to the west—out into western they were not included. These people depend Queensland. Any of those native forests out on forest industries for their livelihoods, their there will be next on the list. We know the way of life and their futures. In the Beattie agenda. We have seen it time and time again. Government's haste to strike a deal, it I know that the mayors and those people out maintained its commitment to the Greens in there in the rural communities that we met with exchange for their preferences. They did not the other day will not be conned any longer. bother consulting the community. One thing They are not going to take this any more and one thing only came first. because they know it is their livelihoods that We have seen it before. We saw it in are at stake. It is about the livelihoods of their north Queensland in relation to the rainforests timber towns, their workers and all of those at Ravenshoe. In spite all of the promises of people who depend on the spin-off effects of jobs—people catching butterflies, three- the timber industry. fingered waiters and all of that sort of They have had that for 150 years, yet this thing—none of that ever came true. There Labor Government is going to close them were no jobs for them. That industry was down. They know that they are fighting for their closed completely. All we have left is silence. livelihoods. I sincerely believe that they will The second was the Hervey fight, because they know that if they do not Bay/Maryborough/Fraser Island farce, when all they are finished. We will certainly revisit this of that was virtually closed, too. Very little when we get back to office so that these continues in that area. Again, all there is is timber towns will have a chance to actually live silence. Even Labor mayors in that region say again and also to maintain a decent livelihood. that not one job was created. Here we have All of those workers in that area will have a life promises of more jobs. It is absolute rot. This is ahead of them again. What is ahead under the third time people will be burnt. No science this sort of deal is nothing but hopelessness. is used in formulating this. It is purely a political The Minister and his colleagues have deal. It is a case of the devil take the made much of the timber industry's apparent hindmost. support for this regional forest deal. The The communities of the timber towns will feedback we are receiving is that sawmill suffer. If anyone thinks the timber they have operators are far from comfortable with this left will last for 25 years, they are kidding deal. As I usually do, to ensure that the views themselves. If it lasts five years they will be of primary producers in this State are being lucky. That is when the industry will collapse. represented in this Parliament I wrote to a That is good enough for this Labor number of sawmill operators and others with a 5646 Forestry Amendment Bill 30 Nov 1999 stake in the forest industry throughout the concerns. It is important that I quote that south-east Queensland RFA region seeking resolution for the benefit of the House. It their comment and views regarding this Bill. states— The range of responses I received was "That representations be made to interesting, to say the least. Far from echoing the state government outlining the the glowing endorsements of the Beattie following issues which relate to the Government regarding its regional forest deal, development and implementation of the many of those mill owners expressed real Regional Forest Agreement: concern and a fear for their futures—for the future of their work force and for the future of (a) Lack of consultation"— their communities—under this shabby deal. I How often do we hear that? It goes on— will quote a couple of those responses. "Whilst there was some Mrs Lavarch interjected. acknowledgment of limited direct Opposition members interjected. consultation in local communities some years ago, there was an Mrs Lavarch: I am just asking for absence of consultation at the local somebody to be honest here. level particularly prior to the signing of Mr COOPER: We are being honest with the agreement. the people who are being affected. The first (b) 25 years is too short a period—there response states— was concern expressed that 25 years "We confirm that as members of the is too short a period for a hardwood Queensland Timber Board we reluctantly tree to be grown to a millable size." supported the 'In Principal Heads Of Agreement' that was negotiated. We do Any idiot would know that 25 years is not long have some ongoing concerns that we enough. It continues— have been assured will be progressively "It was suggested that the 25 years addressed and seek your support in for the closure of logging on State ensuring that commitments made and forestry should begin after substantial assurances given will be actually put in and successful planting of seedlings. place." (c) Including people with practical We will do all we can to see that the detail that experience—the meeting is gradually worked out is favourable. Of acknowledged that many people with course, we know that we do not have the substantial useful experience in the numbers in this place. Another response timber industry that would provide states— useful practical expertise and these "We are very concerned about the should be accessed to allow a more RFA as we do not feel it is the best balanced perspective. outcome for Queensland. We could have (d) Social Impact Assessment at the had an income from forestry and tourism Local Level—there was some if controlled properly. We do not feel the acknowledgment of work undertaken government can supply the timber regarding social impact assessment, needed to fulfil their obligations to however the extent and scale of the sawmillers for the next 25 years, now that work was inappropriate. The focus they intend to lock up many hectares of should be at the local level previously logged forest." particularly looking at the social They are far from glowing endorsements. If the impact in communities and sawmills and the members of the Queensland associated local businesses including Timber Board are concerned, the shire transport and other subcontractors. councils, the contractors and the communities (e) Loss of Rate Income—concern was are arguably even more concerned. While this expressed that the local government Bill provides 25-year wood supply agreements rate base might be undermined as for sawmill operators, it gives these other changes occur in the forestry industry stakeholders very little in the way of resulting the reduction of grazing guarantees to allay their concerns. leases over Crown land. The State Such is the concern mounting in regional government should consult with local and rural south-east Queensland with this government directly on these issues. regional forest deal that 21 shire mayors met (f) Future Forestry Agreements in on 22 November and unanimously carried a Western Areas Need More public lengthy resolution conveying the following consultation—it was understood that 30 Nov 1999 Forestry Amendment Bill 5647

a forestry agreement in the western A total of 47,700 hectares were identified areas will be developed in due which could generate plantation values that course and local government in exceed 95% of estimated agricultural land those areas were anxious to see a values. That is great. The Opposition supports more consultative process particularly plantation development. But despite those looking at social and economic findings, the Beattie Government has no issues at the local level. strategy on how it will convince farmers to (g) Support for Tree Planting in Dry sacrifice up to 25% of their earning potential Areas—It was acknowledged that the and convert from their current farming activities major portion of tree planting was to to invest in a long-term venture where there is occur in the higher rainfall areas and no guarantee that they have an iron-clad right this was clearly planned to ensure a to harvest that investment. high growth rate. Whilst this was And while it may be achievable to develop acknowledged it was argued that plantation resources in some areas in 25 there should be greater direct years, those plantings must start immediately support for tree planting in the dry and there must be certainty to encourage that areas which would provide future development. With little land available for resources for local mills in the area. immediate conversion to plantations, little incentives on offer for private landholders to do (h) The impact of vegetation so, and many doubts about the commercial management issues and security of viability of doing so, this is a gamble that rivals resources for private plantations— Labor's net bet. Commonsense would dictate members expressed the view that that it would be far wiser to defer the there is considerable anxiety and conversion of at least some of the 425,000 confusion among private landholders hectares of forest to be set aside as reserve who are grappling with not only the until those plantation developments come on impacts of the Regional Forestry line. Again, that is one of those commonsense Agreement, but the potential impact things. These are the sorts of deals that are of the Vegetation Management nutted out by people who do not have the legislation. Of particular concern is faintest idea of what they are trying to do. the need for some form of resource security for private landholders Mr Rowell: How long does it take to get a wishing to retain timber for future return on a 25-year forest? How much money harvesting." does it cost you to go and plant a forest and wait for 25 years? Those sentiments were reaffirmed Mr COOPER: The figure would be unanimously in another meeting of 16 shires, endless. I could not give the member a figure called at very short notice—shires which are off hand. It would be massive. impacted on by this regional forest deal and the imminent introduction by the Beattie Mr Palaszczuk: Invest in farm forestry. Government of tree-clearing restrictions on Mr COOPER: But there has to be right-to- private freehold land—which a number of my harvest legislation. They would have to be coalition parliamentary colleagues and I convinced that, at the end of that 25 attended at Gympie on Monday. years—and they need more than 25 years; 35 The regions are starting to boil. They years would be more applicable—and even if it know that this so-called regional forest was sensible and 35 years, then at the end of agreement is little more than policy on the run. that time, or even during it, they would not This Bill represents the first plank of the Beattie know whether they were going to be allowed to Government's regional forest deal, and yet harvest it. So there must be guarantees that there is little or no detail as to how this plan will they will be allowed to harvest it. That must be work. There are grave doubts about plantation part and parcel of it. Also, what do they do for developments. In reply to my recent question an income in the meantime while they are on notice, the Minister conceded that no trees waiting for those 35 years to go by? There have yet been planted in the apparently must be arrangements whereby there are planned plantations. payments along the way. Mr Palaszczuk: Diversification. A report released last week by the Bureau of Resource Sciences and ABARE found 1.4 Mr COOPER: What of? I see, grow a bit million hectares of agricultural land suitable for of timber, a bit of wheat and a bit of barley? hardwood plantation development, but only Mr Palaszczuk: Come with me to 200,000 hectares of that land exceeded just Boonah and Beaudesert and just see what 75% of the estimated agricultural land values. has happened out there. 5648 Forestry Amendment Bill 30 Nov 1999

Mr COOPER: Been there, done that! rethink on this plan and the premature closure Commonsense would also allow for some of all Crown native forest ahead of the 25-year margin of error and err on the side of caution deadline will be a fact. in forecasting the development of plantations There are also concerns about the varying in only 25 years—a largely unproven claim for impact on different sawmills and different many areas. Commonsense would dictate that communities throughout the RFA area. if the Beattie Government remained intent on Some mills have done well out of the Beattie phasing out this viable and renewable Crown Government's plan, and there is no denying resource, it would do so over 35 years rather that. Others have done very badly, like the than 25 years, and that Nandroya mill, which has been made the would be the sensible thing to do. According to sacrificial lamb and where 80 workers will lose the people with whom we have spoken, that their jobs. Still others will suffer a more was to be the arrangement. But again, prolonged but nevertheless heavy impact. because of the Greens, that was negotiated Under the interim forest management down to 25 years. It is just so pointless and agreement, those mills are receiving stupid. assistance to offset the added cost to their This Bill provides for 25-year wood supply operations of hauling timber, processing agreements, and yet there are concerns about different timber types and so on pending the the ability of the remaining loggable area to outcome of the RFA. meet those needs, let alone on a sustainable Some of those mills have informed me basis. The Beattie Government claimed that that they may not survive under the Beattie no clear felling would be allowed under its Government's regional forest deal unless they plan, but the harvesting practices to be continue to receive assistance. This Bill alone employed in the remaining area of Crown and 25-year wood supply agreements will not forest able to be logged where the minimum guarantee their continued operation. They will girth size of millable logs is to be reduced so need assistance for additional log haulage that every tree 40 centimetres or greater in costs, structural adjustment assistance to cope diameter will be harvested is virtually clear with a change in species mix and an industry felling. It is cutting down the size of the girth, development package to assist in improving so that they can go for the smaller trees and sawing technology, downstream processing knock them down within five to 10 years at the and value adding. But there has been no most. But then there will not be any timber left commitment from the Beattie Government to to cut. Then, of course, in will go the cameras maintain that assistance, and there is no and in will go the Greens saying, "Isn't this provision in this Bill to do either, let alone for terrible!" 25 years. Mr Palaszczuk interjected. What I am saying there is that we had Mr COOPER: The Minister will not be here assistance under the interim arrangements to then. We are trying to look ahead to ensure assist with transportation. But by taking more that people are looked after for the next 25 or and more timber out of the equation, those 30 years. People are saying, "That should shut mills will have to transport their product even people up. It is 25 years. Who cares?" We are further, the transportation costs will be even saying that the timber will not be there greater, and they will not be able to afford because most of the good timber areas have them. The powers that be know that. been put into reserve where people cannot get Therefore, the mills will close and people will at them; so what is the point? say, "That was not our fault. It was the fault of the mill. They could not keep going." They can Mr Palaszczuk: Twenty-five years will be see that coming just as well as we can. manageable. Even if it had the detail, the Beattie Mr COOPER: It is easy for the Minister to Government has no money to implement its say that, but he does not know. Generations regional forest deal. That is why we have of people who have been involved in the witnessed yet another in a long list of ambit industry for 150 years know that, by taking out claims on the Federal Government by the that timber and putting it into reserve, they do Premier for $36m. We ask why should the not have a hope. Federal Government—in reality the I can imagine the howls of outrage from taxpayer—fund this plan to put people out of the environmental groups. They will be calling work, to close down an industry and hurt other for this dreadful practice to be stopped. And if rural industries. I ask the Minister to address Queensland is so unfortunate as to have a how this legislation will now provide long-term Labor Government, the so-called forced security of wood supply to sawmillers after his 30 Nov 1999 Forestry Amendment Bill 5649

Federal ALP colleagues backed the Australian The Forest Protection Society issued a media Democrats' amendment to give the Senate release entitled "Labour abandons timber the power of veto over RFAs between State communities." Once again I quote from the and Federal Governments. media release. In doing so, the ALP showed that it was Mr Palaszczuk: What date was that? more interested in playing politics than in Mr COOPER: This was 24 November— delivering certainty for the timber industry and only six days ago. The media release reads— the workers it purports to represent. The industry knows it, the community knows it and "Timber communities around the workers know it. The National Association Australia have been betrayed and of Forest Industries issued a media release on abandoned by the ALP and its Leader— 24 November—not so very long ago—headed as the party voted to amend the "Labour denies timber resource certainty." This Government's RFA Bill in today's Senate is a statement from the NAFI acting executive debate. director. The statement reads— At his insistence Mr Beazley has driven Labor to ignore the plight of timber "The ALP's decision to vote down the communities and workers despite pleas Regional Forest Agreement Bill has left from within the ALP and the union the timber industry high and dry. movement. It is hard to believe that the ALP any In fact support for this Bill has come longer supports the National Forest Policy from communities, industry and unions Statement. which begs the question—who is the ALP, No specific faults have been found and Mr Beazley responding to by not with any RFA. Yet the ALP wants the right supporting this Bill? to expose all RFAs to possible Senate Clearly Labor has some higher disallowance. priorities above the security, investment Amendments to the Bill proposed by opportunities and jobs in regional the ALP do not withstand close scrutiny. Australia because their role in the They are a retrograde step, and are Senate's amendment of this Bill clearly difficult to explain on any basis other than says to timber communities, workers and as part of a continuing quest for green industries—'we are prepared to trade your second preference votes. future.' That the ALP should bid for so small It is a sad day for workers, a prize—at such a potentially high cost to communities and firms involved in forestry regional communities, timber industry as it would appear that the ALP is willing workers and value adding investment— to reopen the politics of forestry despite does not reflect confidence in the Party's the bitter and divisive lessons of electoral standing or in the policy 1994/95—as once again all pro-forestry achievements of the previous Labor groups oppose the party's position. government. Labor initiated the National Forest The industry has embraced extensive Policy Statement in 1992 as a direct result restructuring, and resource reductions of the poisonous impact forest politics was based on thorough scientific research, but having on timber communities, workers the goal of long-term resource security— and industries. Since 1992 forest policy which should have been the end product has enjoyed bipartisan support—until of the RFAs—has been snatched away by today! the ALP's decision. If the Government's Bill somehow did The industry is at a loss to know what not provide security in line with the the ALP wants. expectations of timber communities—we could understand the ALP's position. It set up the RFA process to put However, Labor has rejected the complex forest management issues Government's legislation because it wants beyond the reach of political horse- RFAs to be subject to parliamentary trading. Now that the RFA process has disallowance. been shown to work, the ALP wants to In other words despite the science of draw the RFAs back into the political the RFA process which Labor established, arena. Mr Beazley now wants to reinstate This does not look like a principled Federal politics, emotion and backroom policy. It looks like political manoeuvring." deals as the primary drivers of forest 5650 Forestry Amendment Bill 30 Nov 1999

policy. State Premiers with signed RFAs Let no one in the Parliament think must be looking on in disbelief. that this issue will go away. Every regional Mr Beazley's position is now clear. community reliant on the forest and forest Under Labor, workers, communities and products industry is going to be informed forest-based industries in towns like of this betrayal and the Union will urge the Morwell, Traralgon (Victoria) and Smithton Government to reintroduce the Bill as and Scottsdale (Tasmania) could have soon as possible.' their region's RFA disallowed by the The union will also approach Labor politics of the ALP in Federal Parliament. MPs in regional seats seeking their support for the RFA Bill. So much for relying on science to guide the RFA process and supporting It will be up to Labor members in legislation to provide security to timber regional seats to educate the ALP communities and industrial development leadership on this issue. It is obvious that in forestry. the ALP Parliamentary Party has lost touch with regional Australia,' Mr Smith Clearly, the lessons of 1995 have said." been forgotten, as have the results of the recent Victorian election, as Labor seems That just about says it all. As I have said, this determined to rob regional timber is not over yet; in fact, it is just starting. More communities of a secure future within and more is going to be exposed when this investment growth and development Government brings its Bill before the opportunities." Parliament. This Government will be brought to account. Mr Palaszczuk: Not one mention of Queensland. After reading those press releases— particularly the one from the union—I want to Mr COOPER: They have got their RFAs. know where the Beattie Government has been This is supposedly starting here. This is the in relation to this issue. As far as the coalition Federal legislation which now allows political can see, the Government has gone to ground. deals to be done by way of disallowance in the It has ducked for cover. The Beattie Senate. No RFA is now safe. We are heading Government is always willing to blame in this direction in Queensland. It is not an someone else for its own failings; it is always agreement; it is a sleazy deal. the Opposition's fault or the Federal The cracker of them all was from the Government's fault. ALP's very own Construction, Forestry, Mining That Act was crucial to making RFAs work, and Energy Union, whose media release was giving the long-term security that the timber entitled "Forest union lashes Labor". I quote industry needs. The Act was crucial to giving from that media release for the benefit of the the Bill we are debating some legislative teeth. House— But when it was time for action on the part of "The Construction, Forestry, Mining the Beattie Government—when it was time for and Energy Union today slammed the those opposite to influence their Federal ALP ALP Federal Opposition for failing to colleagues for the benefit of the industry, they support jobs in the Forest and Forest were nowhere to be found. Products Industry and turning its back on By the Government's silence, it has regional communities. condoned the acts of its Federal ALP colleagues. That is why I cannot see how this Mr Trevor Smith, the National Bill will give the industry, the workers and the Secretary of the CFMEU's Forestry community any security. Until the Labor Party Division, condemned the Federal ALP for stops playing politics with the timber industry its position on the Regional Forest and supports the Federal Government's RFA Agreement Bill. The Union has accused Act, this Bill is of little or no value. the ALP of breaking commitments made to the Union during the last Federal The Bill provides for 25-year wood supply Election. agreements which, according to the Minister, have been agreed by those groups privy to the 'The Leader of the Opposition made negotiation of the Government's regional public commitments to the Union and he forest deal. I have highlighted already the has failed to deliver' Mr Smith said. Opposition's concerns about the phasing out The Union will consider its response of the Crown hardwood forests from use for to the ALP's actions in the Senate within logging and our misgivings about the forecast the next week. replacement of that resource with plantations 30 Nov 1999 Forestry Amendment Bill 5651 that have yet to be developed. They have not something that they cannot understand and been even planted. that is something that we cannot understand. The coalition does not support the closing It seems to me as though the Government will down of the Crown native forests to logging, or have them over a barrel. They will not have indeed, to other uses such as grazing, anywhere else to go. The Government gets beekeeping and leisure activities. Many people first crack. It can name its own price. If that in the community share those concerns and price is not acceptable, the mill closes. That is have highlighted the need for, at the very something that the Minister can explain not least, greater flexibility and, at best, the just to us but to those mill owners who are continued sustainable use of the Crown extremely concerned. resource. In acknowledging the Government's This amendment stifles competitive policy to close down the Crown forest, I would market activity. As the Bill reads, the mill owner still like the Minister to address just how the wishing to sell his agreement or business figure of 25 years was reached. As I have said, would have to somehow identify a buyer who initially 35 years was sought by the timber would ordinarily be expected to spend industry. The coalition remains to be convinced considerable time and money investigating the that this was not a more desirable objective viability of the purchase. However, against a than the 25 years provided for in this Bill. I also backdrop of inevitable acquisition of that noted that there is provision in the Bill for agreement or business by the Government, compensation to be paid in certain stated what possible incentive is there for that circumstances. The Minister made fleeting prospective buyer to even consider the reference to that in his second-reading purchase of the agreement or business? The speech. I would like the Minister to explain short answer is that there will be no incentive what those "stated circumstances" are. During to do so and the seller will be left at the mercy the Committee stage, I will be asking for those of the Government in the price received. things to be addressed. On two or three occasions, the Bill says "stated We are not talking about pocket money, circumstances". We would like to have what either. Mill owners and contractors have that means spelt out. Again, in the invested millions of dollars in their businesses correspondence that I am getting from the with the intention of realising a gain on that industry the question is asked, "What are investment. However, under this amendment these 'stated circumstances'?" So all I can do legislation, if they wish to exit the industry, they is ask the Minister. Nowhere in the Minister's will have no hope of realising any recoupment second-reading speech, the Bill or the of their investment. As one mill owner put it to Explanatory Notes is there any detailed me— explanation of what constitutes a stated "The statement that states first right circumstance. of refusal to an assignment or transfer of It has been put to the Opposition that the permit is very scary for a sawmiller." compensation should be paid in all Another issue that relates to this amendment circumstances to permit holders if the agreed and which is of vital concern to the wood supply is not met. I would like the communities is that the assurances given by Minister to address why this has not been the Government that existing mills have 25 reflected in the Bill. The Forestry Amendment years security and that jobs will be retained Bill also provides that where a mill seeks to sell cannot possibly stack up. If a mill owner its wood supply agreement or its business, the decides to get out of the industry within the 25- Queensland Government will have the first year period and is inevitably forced to sell his right of refusal over purchasing the agreement allocation and/or business to the Government, and business at a fair and reasonable market the mill closes down, the jobs go, and the price. This amendment is extremely community suffers. concerning. It appears short-sighted, impractical and unworkable. How will a fair and Mr Rowell: Who would want to buy a reasonable market price be determined in a mill? climate where mill owners and other potential Mr COOPER: Who would want to buy a purchasers know that the Government will, in mill? That is exactly what this Government is exercising its intention to close down the looking for—to be able to close them down in Crown resource, inevitably purchase a wood that sneaky way and achieve its end. That is supply agreement or sawmill business? Again, the sneaky part about this legislation. In many that is another crucial part of this Bill. Why of these rural towns, the timber industry is the does the mill owner have to go to the economic backbone of the community. This Government for a first right of refusal? That is amendment legislation exposes the cruel hoax 5652 Forestry Amendment Bill 30 Nov 1999 of this regional forest deal. It undermines the see that their workers are not going to have supposed 25-year security. jobs and that their industries are going to The Opposition has no problem with the die—and they will over time. That is why they second objective of the Bill, namely the are going to fight. I hope that they do extension of the legislative exemption from the because, as I say, they are the ones who are provisions of the Commonwealth's Trade going to be best placed to save their industry. Practice Act 1974. In his second-reading I was also worried and I asked questions speech, the Minister stated that he expected in this place about the number of forest wholehearted support for the Bill. He certainly grazing leases that were involved in this will not get wholehearted support from the 425,000 hectares of Crown native forest. The coalition. Although we begrudgingly accept the answer that I received to a question on notice need to pass this Bill to provide the TPA stated that there are 570 current grazing exemptions, that is by no means an indication leases and stock grazing permits over forestry of our support for the Beattie Government's reserves within the SEQRFA region and there grubby regional forest deal to close down the are approximately 250 current grazing leases native hardwood industry. and stock grazing permits covering about half I refer to some of the comments of the 425,000 hectares of the RFA identified contained in the submission by the Local secure conservation reserve areas. We are Government Association of Queensland in concerned whether they, too, will be able to response to this South East Queensland continue to operate or whether they are going Regional Forest Agreement directions report. to be tossed out of their leases. Firstly, I want to let the Minister know of some From time to time, certainly in Crows Nest, of the councils that attended the Gympie people have been told that they cannot meeting yesterday. continue running trail rides, trail bike rides and Mr Palaszczuk: Could you table the list the like in the State forests, despite the after you have read them out? assurances that we heard from the Premier himself that that would not happen. I put that Mr COOPER: The only problem I have on the record and I want it followed through, with that is that I know how the members because those activities are used to raise opposite will persecute them. I will not read out funds for the P & C associations. If it is the names. I will read out the councils: happening at Crows Nest, it is happening Cooloola Shire Council; Mundubbera Shire elsewhere. It must be happening elsewhere, Council; Hervey Bay City Council; Maroochy but it was never supposed to. Of course, words Shire Council; Eidsvold Shire Council; are often not followed through with actions. Gayndah Shire Council; Noosa Shire Council; Again, that leads to people feeling Cooloola Shire Council, again; Burnett Shire undermined. Council; Perry Shire Council; Kilcoy Shire Council; Monto Shire Council; Kolan Shire The Dennings sawmill in the Brisbane Council; Gatton Shire Council, which was well Valley is one of the oldest sawmills around. It represented; Tiaro Shire Council; Woocoo has been around a mighty long time. I hope Shire Council; Burnett Shire Council—over and that the owners of that sawmill will not be over; and Gympie, which was represented by persecuted, although they are the sort of various timber industry people. people who are prepared to stand up and fight for their industry. Thank heavens a lot of their Obviously, those people showed their timber comes from private sources, because grave concern by voting for the resolution. more and more they are being isolated from Those are some of the organisations that the State forests, as all the other mills are. The attended. I can tell the Minister that they owners of Dennings sawmill have raised a expressed a very, very real concern. They number of questions that I want to refer to the fought it in the first place when these so-called Minister. They are so concerned, agitated and negotiations were taking place. With the filled with anxiety that they do not know where grandstanding, the media hype and publicity to turn. When they ask the Government about that came out with the first announcement, the future of their livelihoods they get no they then thought that all would be well. Ever satisfaction, so often they turn to us and since then, they have realised more and more others. that they are now faced with a total lack of detail and a total lack of assurances. They In a letter dated 25 November 1999, Mrs know that, although we might live on, their Denning stated— livelihoods are very much at stake. That is "With regard to my telephone call to what is going to drive them, because they can you 23/11/99, and your request to outline see that they have been conned. They can my concerns with the Forestry 30 Nov 1999 Forestry Amendment Bill 5653

Amendment Bill, the issues which concern relation to open spaces and recreation; the me and my family are the amendments impact on grazing leases and other non-timber as follows: forest uses and councils' rate bases; and (1) the Amendment of s. 58 (Power to sawlog timber allocations and sustainable cancel, suspend, permit, licence etc); forest management which largely negates the need for locking up resources, that is, Clause 5 section 58 transferring reserves to national parks. The Under the RFA all sawmillers who cut from association said that consideration must be Gov. State forests have to have a sawmill given to other wood products, that is, non-mill licence plus a contract with the State Gov. locally sourced products. It stated that If one does not have a contract with the recognition of differences in community and compensation clause included then the local circumstances in specific areas will dictate miller can be closed down any time alternative RFA outcomes, reflecting those without payment of compensation. differences. It recognised that there needs to Under clause 6 section 69C(2) the State be a strong commitment from both Gov. can refuse to allow the mill licence to Commonwealth and State Governments be transferred to anyone else ie son, wife, towards the development of hardwood family, etc, without it first being offered to plantations on both State and freehold land. the State Government. The Opposition is particularly concerned These clauses can be open for that if, in addition to what has already been interpretation and would need to be taken out, an additional 425,000 hectares is clarified." taken out of the State forests, the total will be very close to one million hectares of forest. I will be raising that issue with the Minister in Obviously that limits the resources available to the debate on the clauses. The letter timber mills. If one is going to replace those continues— trees in 25 years, which we know cannot be "My concern with the whole business done, or even in 35 years, one million trees will is that the land holder, the person who is cover about 10,000 hectares. We want to growing the timber, has not been know where those plantations will be and how consulted, nor has the miller who buys the accessible they will be to the mills. Each mill timber from a private property owner. will have its own individual problems and each mill is entitled to receive due and proper Why is it that the big mill owners and attention. We believe that quite a number of their managers who have large timber mills will then become isolated. Obviously, if allocations (forestry) are making most of they do not receive assistance in getting the the decisions? mill product to the mill, they will have no No consultation has taken place with alternative but to close down. As I said, that is we the people who own Dennings Sawmill exactly what the Government wants and or the land holders in the Brisbane Valley certainly it is exactly what the Green who we get our timber from." movement wants. Those are some of the queries that In its submission in response to the south- people who have the courage of their east Queensland forest agreement, the LGAQ convictions have raised in writing, as many also stated that it wanted a return to best have done. Those questions have to be practice management techniques in all answered, because they bring to the fore the hardwood forests, based on the optimum concerns of those people. If their questions utilisation of available resources. It outlined the cannot be answered, that is proof positive that need for local government and community this has been a con job from the start—and we compensation. While the compensation issue know that it has. The Minister will get his continually raises its head, one thing is for chance to respond to those queries and more, certain: compensation is not everything. Those as I will be raising more questions in the people want to continue their businesses. As debate on the clauses of the Bill. far as they are concerned that must be the first At a conference held in Toowoomba consideration, because otherwise the whole earlier this year, the Local Government industry falls to the ground. Association expressed its concerns about the The LGAQ wants certainty of harvest on lack of consultation. The association also private land, which is a big issue. I have often raised concerns about the rural economic heard it said that this issue is covered in the downturn; the impact on the timber industry, Integrated Planning Act, but a lot of people local communities and the loss of jobs; the would disagree with that. I believe that legal impact on council planning, particularly in advice needs to be taken on the point. As I 5654 Forestry Amendment Bill 30 Nov 1999 have always said ,that is a good idea if one is tenures in stock grazing permits in State going to invest in a plantation. A lot of people forests. Councillors recommended the would probably like to be involved in such an development of an RFA provide a basis on investment and receive the income that would which consideration should be given to the flow from it, as I believe has been done in introduction of 20-year tenures for stock other States. However, at the end of the day it grazing permits in State forests, an eminently all depends on who is in Government and how sensible suggestion providing again strong the Greens are. After this Minister's time reasonable long-term security—not tenure on and mine, someone could easily come along an annual basis. Graziers, farmers and and say, "That plantation is too nice. It is cattlemen need to know for a little bit longer pristine. You can't have that." They could then than a year into the future whether they are make sure that it could not be harvested. In going to be able to hold that lease or not. that case, the investment obviously falls to the Stock grazing is good for State forests. For a ground. There has to be certainty in that start they keep fuel down, but also they make situation. use of an available resource. The LGAQ pointed to insufficient research The Local Government Association also and development and called for the wanted expanded opportunities to be provided encouragement of private grower participation for joint venture arrangements for lessees and in R and D and its associated gains by way of the State Government with natural tax incentives. Again, that idea would be well regeneration of State forests. The worth pursuing. The association called for the development of these expanded opportunities assurance of supply and quality of sawlogs should be progressed to develop harvestable and forestry quotas for existing sawmills. timber from existing stands. It also asked that Councils have stated that to achieve this, consideration be given to the regional forest legally enforceable 20-year contracts are development plan being used as a primary needed. Appropriate compensation provisions reference document. Councils have stated that must accompany those contracts should a the regional forest development plan includes change occur which removes any rights information regarding another scenario that associated with the contract. should be considered throughout any further discussions involving the RFA. I think all of The association pointed to insufficient those suggestions coming from the Local consideration of the social assessments of Government Association are well worthy of local communities. It stated that councils have consideration. They should have been expressed concern that valuable time and considered. Quite obviously that is another resources that were dedicated towards group that was not involved in this clique—the reviewing the social implications of the RFA on so-called discussions that occurred in the first certain communities have not been place. It, too, has been left out of the adequately incorporated in the directions equation. It is no wonder that the association report. This has meant that the information is angry. included in each scenario has not presented a comprehensive picture to ensure that all Again the Minister can see that we have stakeholders are advised of their full only just proceeded a little way down the track implications. towards the so-called RFA. He cannot expect the Feds to tick off on and agree to something The Local Government Association is one like this. He has seen that he has been body that without any doubt must be taken dudded by his own party in the Senate. That notice of. These are councillors who represent has upset even more unions and that again is hundreds of thousands of people. They going to cause even more trouble. It is the sort certainly represent people in the timber towns of thing that we predicted in the first place. It is and all that that means. If they are expressing the usual thing: the real stakeholders have not these sorts of concerns and need for been consulted. The Government consulted consideration, then any Government should sit only those to whom it wanted to talk. As far as up and take notice. The fact that this I am concerned the Green movement has the Government can just ignore them and proceed Government by the short hair; there is no with this faulty and fake so-called regional doubt about that. forest agreement which, in fact, is just a political deal, I think is a massive slap in the The end result when we look ahead is face to local governments right throughout the that we are going to see the demise of the State. timber industry, and for what? A political deal! That is what is so sad and so cruel about this The association goes on to say that whole thing, because the development and consideration should be given to 20-year management that the timber industry has 30 Nov 1999 Forestry Amendment Bill 5655 employed since the time that it started has I think I have made my point. I will leave been exemplary. It has been an example for the rest to other speakers on this side of the the rest of the world. Its management Parliament. Quite obviously the people techniques are second to none. It has a opposite are not interested; there is only one sustainable product that can continue for Government member on the speakers' list for hundreds of years. That is all being knocked this Bill. on the head, and for what? That is what is so A Government member interjected. sad and so wrong and that is why we on this side of the Parliament intend to stick up for Mr COOPER: I have seen the speakers' those workers, defend them and fight for them list and there is only one Government member every inch of the way. We will carry their case on it. for them as long and as hard as we possibly Time expired. can. Mr SEENEY (Callide—NPA) (12.36 a.m.): When we return to Government, this I rise to participate in the consideration of this coalition will most certainly revisit this so-called legislation which, as the Minister said, is the deal, this so-called agreement, and ensure first step in implementing the Government's that the timber industry in this State has a so-called plan for south-east Queensland's sustainable, long-term future based on the forestry industry. In his second-reading management, science and data that we have speech, the Minister claimed that the used and which should have been adhered to. agreement was the outcome of two years of I know that once the South-East Queensland analysis and negotiation to determine the RFA is in place, the Government's next step is future of the forest and timber industry in to move on to western Queensland and those south-east Queensland. That statement at State forests, which other speakers will best is grossly misleading. address. They, too, will suffer the same This legislation is based on an agreement fate—there is not the slightest doubt in my that was signed by four groups: the Australian mind—and I do not know why. Rainforest Conservation Society, the I cannot understand it when the people Queensland Conservation Council, the opposite purport to support unions, Wilderness Society and the Queensland timberworkers and people of that ilk. So do we, Timber Board. That was consultation with three but we believe that they are entitled to a conservation groups and one representative of future. Those opposite are making sure that the Queensland Timber Board—hardly a group they have no future, and that is what again is inclusive of all stakeholders. There was nobody so sad. Some of them are their own people. from local government, nobody from the How can they do it? The families and everyone grazing industry, nobody from the recreation else involved in keeping a town and district industry and nobody representing all those going are the social fabric, the glue that keeps other stakeholders who have a legitimate those towns together. The Government is stake in the future use of south-east doing everything in its power to make sure that Queensland's forests. they come unstuck. That is what I think is so This legislation bears no relation and very sad. little relevance to the scientific analysis that This legislation provides for a 25-year has gone on over a long period of time to agreement. We will try to ensure that we can establish a sustainable yield of commercial provide a 35-year agreement. There is a 10- timber from south-east Queensland's forestry year exemption from the Trade Practices Act. reserves. That was part of the regional forestry We have to support that. I think I have gone a assessment process agreed to with the long way towards exposing the Government's Commonwealth Government. I said at the time intent for what it is: a very shabby, political, when this agreement was signed with much underhanded deal that is going to impact very fanfare and backslapping—and I take this adversely on many of the people of this State, opportunity to repeat it again—that I believe the sort of people who have worked so hard that the agreement that was signed was a and who have done so much to build up political con job. It was all about smoke and country towns and rural communities and mirrors. It was sold by a battalion of clever create jobs. They have also ensured that they public relations people as a regional forestry have a product that actually brings in income agreement, yet it bore very little relevance to to the State, be it export income or domestic the regional forestry agreement process as income. They have gone a long way towards was originally entered into by the State and making this State great, and this Government Federal Governments. is presiding over their destruction. That is what The Queensland Government plan that I find to be so sad about this. the Minister referred to so extensively in his 5656 Forestry Amendment Bill 30 Nov 1999 second-reading speech is really the and those areas are somehow removed from continuation of an agenda that is being driven the forestry reserve once they are logged. We by the Left Wing of the Labor Party and its have seen that stupid emotive notion cohorts in the conservation movement. It is an supported in interjections in the House tonight. agenda to achieve one aim: a strategy to Shutting down the native forest timber achieve the complete end of logging in native industry is like shutting down a productive forests and the destruction of the native forest factory. It is like shutting down a factory that industry in south-east Queensland as we know can go on producing forever. Our native it. There is no scientific reason why that forestry reserves can be a non-polluting, logging should end and there is no scientific regenerating factory that will be still producing reason why that industry, which has to date quality timber products for many generations been sustainable, should be destroyed. There to come if it is correctly managed. Indeed, that is no scientific reason identified in all the is the very reason they were designated as studies that were conducted as part of the forestry reserves in the first place. That is their RFA process that even begins to justify a very reason for existing. They were set aside to complete end to logging in native produce timber forever on a sustainable yield forests—none at all! That is the key issue that basis. has to be considered as part of this whole forestry debate. There is no scientific reason Selective logging does not destroy why sustainable logging cannot continue in our forests. Selective logging allows forests to State forests, and that is the point that makes regenerate. Queensland forests have never a mockery of the much trumpeted agreement been clear felled. Queensland forests have on which this legislation is based. never been destroyed by logging, and no-one has ever suggested that they should be. This particular legislation provides for 25- Generations of practical forestry management, year supply agreements to mills that are backed up by scientific study, would indicate currently operating. For many of those mill that the forests of south-east Queensland can operators, it will be welcomed. As such, it will be selectively logged on a rotational basis that receive some support. However, it is would vary between 10 and 20 years, impossible to avoid the conclusion that it is depending on the species involved. That based entirely on a false premise. This means that every 10 or 20 years the legislation is not based on science, which was commercial sized logs can be removed from supposed to be the basis of the regional those forests to produce quality timber forestry agreement. Let us not forget that the products. The trees that are left will continue to regional forestry agreement set out to grow to maturity and in their turn produce establish what the sustainable yield was from quality timber. That does not mean that a tree south-east Queensland's forestry reserves. It will grow from a seedling to a mature tree in set out to establish for all time, to put beyond that 10-year to 20-year cycle. It means that by doubt, what the sustainable yield of sawlogs removing the commercial sized logs it gives an was. opportunity for younger immature trees to grow Out of that whole process, a process that to maturity, and that is an opportunity that they reportedly cost $11m, we never got the would not have in an unlogged forest simply proposed regional forestry agreement which because of the dominance of the mature was its very purpose. Instead, we have a trees. shallow agreement signed by three Once that concept is understood, once conservation groups and a representative of that reality is accepted, it is not hard then to the Queensland Timber Board that has understand how hardwood forests can determined that logging will end completely in continue to produce quality sawlogs in all State forests after 25 years—not for any perpetuity, as they have done successfully for scientific reason but to satisfy an agenda, to the past 100 years. The only question is at satisfy a philosophy, that has been driven to what level they can be logged. What is the the exclusion of all scientific evidence by the sustainable level of sawlogs that can be Left Wing of the Labor Party. It is an agenda produced from a particular forest region? That that is being supported and promoted by the is what the regional forestry agreement set out so-called conservation movement to bring to determine. That is what the $11m was about what for them has been a long-term spent for. The regional forestry agreement strategy. It is an erroneous strategy that is process was well on the way to establishing based on a complete misunderstanding of that sustainable yield by scientific analysis. what logging does to native forests. It is a Then it was derailed and disrupted by the strategy that is based on the assumption that election of this State Labor Government and logging somehow destroys forest areas forever the whole process was hijacked by the 30 Nov 1999 Forestry Amendment Bill 5657 extreme conservation movements, who make the existing Act to allow for sales permits for no attempt and no effort to understand the the getting of forest products or quarry timber industry. They are driven by a short- material. It allows those permits to be granted sighted, philosophical commitment to the for a period of not more than 25 years. complete ending of native forest logging and However, the sting is in the tail. Clause 4(c) the complete destruction of the native timber requires the permitee, the person who is industry as such. granted the permit, to give the State the first Instead of a regional forestry agreement right of refusal to an assignment or to the that has integrity, one that is based on transfer of the permit. This is the Government's science, one that guarantees the future of the escape, and is the only way the Government Queensland hardwood timber industry and has any chance of even partially achieving the also ensures that adequate areas will be aims of this legislation. reserved, we have a political deal that Some mills will get 25 years' supply as the achieves none of the original aims of the RFA Government exercises that first right of refusal process, but seeks to appease the extremists and buys out the mills that find the going too in both the Left Wing of the Labor Party and tough. It is not hard at all to envisage the the conservation movement. It is a deal that is situation where a particular mill is given access impossible to deliver in reality. It is widely to an inferior standard of timber and asked to accepted in the timber industry by many process not only young and immature logs but practical timber managers that it will be also an increased number of logs of poor impossible to deliver 25 years of continued quality that would not normally be processed. supply of quality sawlogs from the areas that In so doing, they will find themselves in an are left outside the reserve system. unviable situation because of the economics of processing such timber. The conditions that There is absolutely no detail from the are attached to their permit then mean that Government or the promoters of this legislation the State has the first right of refusal of the where that timber is to come from. We should assignment that is included with that permit. never forget that the agreement calls for nearly The Government will then obviously purchase a million acres, 400,000 hectares, to be locked those mills and make the timber available to up now and excluded from logging. The other mills to try to help them meet their 25- remaining State forest reserve has to, under year guarantees. the terms of this legislation, provide sufficient timber to give the existing mills security of It is important to realise that the supply for the next 25 years. That is Government, according to the Minister's increasingly being seen as totally and second-reading speech, would purchase not completely impossible by the forestry people in only the timber allocation but the business as the field. well. It is difficult to escape the conclusion that this escape clause in this legislation is in effect Already moves are being made to harvest a backdoor means to shut down some of the more intensively in those areas that are still mills that rely on the hardwood native timber in available to the forest industry. Already timber south-east Queensland's State forests, and to cutters are being told to cut more immature shut them down sooner rather than later. The trees down to what the industry knows as a only way 25 years' supply of sawlogs can be GBH of 40 centimetres, which is a tree of very delivered to any of the existing mills under this small diameter, a diameter of 40 centimetres legislation is for some of those existing mills to at breast height. That is undesirable from a be closed. The mechanism to do that is the timber production point of view, but it is a escape clause which has been built into this response to this much trumpeted agreement. legislation. It is an attempt to produce as much timber as possible from the remaining areas that are left To have any chance of operating in the outside the reserve system. long term, the current mill operations have to continue to operate economically until timber In an attempt to achieve the objectives of becomes available from the proposed this legislation, it is becoming increasingly likely plantations. The time frame for that has been that mills are going to be asked to cut more set at 25 years to match the time frame for the and more a greater proportion of immature permits. That, too, is widely considered within trees and a greater proportion of poor quality the industry as being an impossible target to timber. This will have quite an obvious impact meet. There are no successfully growing on the viability of their operations and lead to hardwood plantations in Queensland of any what I believe is the classic escape clause that size or maturity—none. There is no scientific the Government has built into this legislation. basis upon which the prediction of a 25-year The legislation adds clause 4 to section 46 of production cycle for a hardwood plantation is 5658 Forestry Amendment Bill 30 Nov 1999 being made. There are any number of things of south-east Queensland's forests when that can go wrong between the planting of a commonsense, logic, experience and science hardwood plantation for the first time and its would suggest that they can be successfully subsequent harvest, given that the regenerated and can successfully supply technologies involved are unproven in the quality sawlogs in perpetuity. south-east Queensland environment. They are An actively growing forest—a constantly totally unproven and untried in this regenerating forest—is much more likely to environment. fulfil the role of the lungs of the earth that the There is an almost total and unanimous conservation movement quite rightly suggests belief within the timber industry that the 25- is an important role for our State forestry year target will prove impossible to reach, even reserves. South-east Queensland forests can under the most optimum growing conditions. fulfil that role and they can also produce a For the mills involved, it will be a hard slog constant ongoing supply of high-quality trying to continue to operate economically sawlogs, which was their original purpose. Our while being given access to poor quality and forests can fulfil both roles if they are managed immature timber while they wait for the timber according to science rather than to meet supply to become available from plantations narrow philosophical agendas. The potential that have not yet been planted. The land for for this win/win solution has been totally lost in these plantations has not even been identified the Queensland Government plan which is the yet. There is no scientific proof that they can basis for this Forestry Amendment Bill before even be grown successfully in this the House tonight. environment. All the while, the Government has its escape clause ready and available, an This legislation must be seen for what it is. escape clause which requires the permitee to It must be seen to be the result of an agenda give the State the right of refusal to an which seeks to completely destroy at any cost assignment or transfer of that permit should the hardwood native forestry industry in south- the mill wish to sell it for any reason or should east Queensland—not only in the forestry they find that their operation has become reserves but also ultimately on private land. It unviable because of the limited or poor quality has been mooted that in the future more timber they are being given access to or legislation will be introduced into this House because of the transport distances that are which will seek to restrict a landowner's right to involved or because of any number of other manage vegetation of all types on his freehold reasons the Government may impose upon and leasehold land. them. I call upon the State Government today to There is a woeful lack of detail in this completely exempt commercial timber from legislation about what the timber assignment any such controls. Commercial timber of all that each particular mill will have access to will types, whether it is planted in farm forestry entail. There is a woeful lack of detail from the plots or in native stands, should be exempt Government about the whole forestry from future legislation to restrict land clearing. agreement. There is no detail about which Its management is very distinct and very areas are going to be assigned to which mills. different from the management of vegetation There is nothing to suggest that there will be for pastoral or farming activities. At least if that enough timber to provide the supply timber is exempt from those controls then the agreements that this legislation provides for, hard-pressed timber mills will have one secure given the unnecessary lock-up of 430,000 source of supply. additional hectares. There is no detail about Commercial timber should be available for minimum quality standards or minimum size the land-holder to sell at his own discretion. It standards that will be included in those permits should be completely exempt from any and there is no detail about how the 25-year controls that are placed on freehold land by supply guarantees that are promised by this any future legislation that is introduced by this legislation will be met. Government. Land-holders need that Meanwhile, there are large areas of assurance. They need to know that they can valuable timber that could quite readily be continue the responsible timber management harvested on a sustainable basis that are practices that they have engaged in for being locked up for purely philosophical generations. They need to know that they can reasons. It is a philosophy that is quite simply continue to harvest this timber—a resource wrong to anyone who understands the bush which is part of the land that they own. Timber and anyone who understands the business of mills need to know that they have access to forestry. It is senseless to lock up such a that resource. Land-holders need to know that resource. It is senseless to lock up vast areas they can continue to manage that resource 30 Nov 1999 Forestry Amendment Bill 5659 and to harvest that timber in a sustainable, Mr STEPHAN (Gympie—NPA) responsible way. Unless they get that (12.56 a.m.): It gives me great pleasure to join assurance, they can hardly be blamed for the in this debate on the Forestry Amendment Bill, rapid harvesting of timber to get a maximum although it is very sad that we have to debate return in the shortest possible time before this subject under these circumstances. some future legislation is introduced and their Anybody who knows anything at all about right to harvest their timber is taken away timber would know that it is slow growing. We forever. cannot just put it in the ground one day and This legislation is being promoted as come back in two or three years and think we giving security to the current timber industry. I are going to get a tree. It just does not happen do not believe it can achieve that goal for all of that way. As with all other living things, trees the currently operating mills. I do not believe it go through the cycle of growth, death and provides the industry with any security at all. decay. Each of those stages is a very The mills will be pitted against each other in a important aspect of the growing program and survival of the fittest contest over the very of the use of the timber. limited remaining resource, with the I can mention a number of the stands Government using the built-in escape clause that we had over a period of time. I remind the to rationalise the number of mills over a very House of the amount of timber that was taken short time frame. out of Fraser Island, for example. People who If this Government wants to provide the go there now would not know where that timber industry with the security that it needs, it timber was taken from. It is the same in should revisit the agreement upon which the Cooloola. The growth in the trees there was legislation is based. It should accept that the phenomenal. It was handicapped only by the commercial harvest of sawlogs from our State fact that the process which the Government forest reserves can continue in perpetuity, so put in place was not a natural phenomenon long as that harvest is conducted at a but one that we have to work around. In those scientifically sustainable rate. The Government areas, the only thing stopping harvesting is the should acknowledge that the commercial will of the Parliament to put in place a process production of timber from freehold land is a to get something out of those stands. sustainable and responsible practice that land- Other speakers have commented on the holders have been engaging in for generations hardwood and plantation timbers. The and it should guarantee the right of those messmate at Pomona has now been land-holders to continue the responsible and harvested. Those trees were nowhere near full sustainable management of their timber on growth. They could have been there for their land. another 30 or 40 years. Those trees were This legislation is seen by some in the planted back in 1948. So under those sorts of timber industry as offering more security than conditions, and realising that those trees have they had in the past. That is probably so for a been there for 40-odd years, that is something proportion of operators, given that they were that we can be proud of and learn from. I do starting from a very low base. It is impossible not think that there are any stands of that to avoid the conclusion that the degree of particular type of timber around Brisbane. But security it offers is questionable indeed. If the it is no good our turning a blind eye and not proposition it contains is examined in detail in going down that path. the full context of the agreement signed, it is I remember using messmate timber on difficult to avoid the conclusion that it will be the family farm. One of our houses, which was impossible for the aims of this legislation to be built in the mid forties, was built with messmate delivered. It is undoubtedly based on a from our property. The timber stands were so completely false premise. It is based on an substantial that the millers themselves had to agenda to completely end native forest come down and have a look at the wood to logging, both in State forest reserves and, I see for themselves what they were able to do believe eventually, on private land. That with it. We can all be proud of that—not agenda must be seen for the nonsense that it because that messmate was ours but because is. That agenda must be subject to scientific it was utilised and will continue to be utilised for scrutiny and exposed as the fraud that it is. many generations to come. I would like to That agenda must be abandoned, and the think that the amount of timber being timber industry in south-east Queensland must harvested from that area will be sustained for a be guaranteed a future. This legislation very long time. certainly does not guarantee that future. If one wants to find out what is happening Time expired. in the timber industry in other countries, one 5660 Adjournment 30 Nov 1999 need look no further than South Africa, which owned plantations in Australia is 300,000 is learning from us very well just as, indeed, we hectares, which is similar to the figure in South can learn from it. There appears to be scope in Africa. So the situation in the two countries is Australia for the development of a new much the same, and I am sure that we can plantation forestry strategy to increase learn from that. commercial timber plantations, especially In relation to environmental management, eucalypt plantations, but we need direction I congratulate the Department of Primary and a goal to work towards. Industries, Forestry, which is Queensland's In considering this possibility, it is principal forest grower. It is regarded as a interesting to compare Australian plantation leader in forest management. It certainly does resources with those in South Africa. The two a fantastic job. Its record on environmental countries have similar graphical and climatic protection is substantial, and it is an expert on conditions. Both countries produce commercial forests, plantations and farm forests. softwood—pine—and hardwood timbers, and A lot of work has been going on in farm they do that very well indeed. An evaluation of forestry, but it has been going on very slowly. I the plantation industries in both countries would not like to give any indication that farm shows that South Africa has a commercial forestry is paying many bills. There is a long timber industry which is considerably more way to go. Some people prefer to put their advanced than Australia's. We should learn dollars and cents into it and look to the future from South Africa—to our advantage as well for their sons and daughters. These people as South Africa's. This is especially so given have been working in the forests for a long that the entire South African land mass would time. We must ensure that we have fit comfortably within the State of Queensland, sustainable timber production. That will go a and considering that South Africa's timber long way towards developing other industries. resource industries, like those in Australia, are predominantly centred on European countries. I will leave it at that. As I pointed out, we There is a clear need to increase plantation have a long way to go. It will not be an easy forestry in Australia, especially hardwoods, if row to hoe. With a lot of support and a lot of the environmental concerns of an increasing hard work I believe that we will be able to number of voters are to be considered continue with the forestry plantations and with seriously and overcome. the forests themselves. We have to put our heads down, and away we go. Plantation forestry in South Africa dates back over 100 years, but it developed rapidly Debate, on motion of Mr Hobbs, during the last 30 years. That should give adjourned. members an idea of which way that country is heading. Both countries will continue to ADJOURNMENT develop along the same lines. South Africa was once ranked the 12th-largest pulp Hon. T. M. MACKENROTH (Chatsworth— producer in the world and the 22nd-largest ALP) (Leader of the House) (1.11 a.m.): I paper and paper board producer. By the mid move— 1990s, South Africa was expected to be "That the House do now adjourn." among the top 10 pulp and top 15 paper and paper board producers in the world. It is a major exporter of timber products, including Ammonium Nitrate Export Markets woodchips, pulp, paper, paper board and Mrs LIZ CUNNINGHAM (Gladstone—IND) processed timbers. It is also using other types (1.11 a.m.): I rise tonight to speak on behalf of of timbers, including wattle. Wattle has not a company that is established in my region. previously been considered as a timber of any Orica, originally established as ICI, has great consequence. However, it does grow identified export markets worth $30m a year to prolifically, and it does make an impact. It can maintain AN production and employment at its look after itself for quite some time without Yarwun plant near Gladstone. The $180m needing any attention or anybody to look after Yarwun AN plant employs 55 people directly it. and an estimated 150 people indirectly. The I turn now to some comparative statistics plant has operated since 1993. Yarwun also between Australia and South Africa in order to supports the jobs of 200 people at the Incitec see just how alike the two countries are. For ammonia plant in Brisbane. Ammonia is the example, the total area of commercial key raw material in AN manufacture. plantations in Australia is nearly one million To compete successfully in extremely hectares. In South Africa, the figure is 1.1 competitive export markets, Orica must ship million hectares. The total area of privately through the port of Gladstone. The cost of 30 Nov 1999 Adjournment 5661 shipping the same amount of material through out, including one by a company called SHE Port Alma is $25 a tonne extra in handling and Pacific. Its findings approved the risk transportation costs. To enable those savings assessment as acceptable. However, because to occur, and to facilitate Orica's securing the SHE Pacific is a wholly owned subsidiary of export sales, the Gladstone Port Authority Orica, the company has indicated to me that it must be able to increase the amount of AN is more than happy to obtain independent loaded onto a single ship from the present limit assessments of the risk involved, as well as of 400 tonnes to a new limit of between 3,000 any other comments that an independent and 5,000 tonnes per shipment. The person might make. Gladstone Port Authority supports this I am not recommending that any increase. department makes a decision which puts my Port limits on ammonium nitrate exist only community at risk—far from it. I would, in a small number of countries, namely however, ask that part of the decision-making Australia, New Zealand and Singapore. The process to date include advice from other current limit is set in Queensland by the independent experts. One recommended Transport Operations (Marine Safety) Act and expert is Professor Mark Tweedale, who is Regulations. The reasons behind the limits regarded by some as "the father of risk appear to be historical and not based on any assessments". He would be a person who may particular standard. Other major trading be able to review the SHE Pacific risk nations in ammonium nitrate, such as South assessment which has been carried out. Africa, France, the UK, Canada, the USA, China, Chile and so on have no such limits. The company has indicated to me that it The limits in Australia apply only to port is prepared to take all necessary precautions limits—that is shipment size—and not on to ensure the safety of the residents and the storage size or any other transport modes port of Gladstone. However, at the moment such as rail. the export potential for this company is stymied because of a decision that was made Brisbane has a limit of between 400 and in the past, based on past experience—I 1,800 tonnes and an accumulated tonnage of believe the last incident was in 1972—and 3,000; Darwin has 5,000 tonnes; Fremantle, based on past handling experiences. I urge 1,000 tonnes; Newcastle, 3,000 tonnes; the Government to review that decision in the Townsville, 400 to 2,000 tonnes; Kwinana, best interests of all involved. 3,000 to 4,000 tonnes; Port Alma, 15,000 tonnes; Wyndham, 5,000 tonnes; Broome, 2,000 to 3,000 tonnes; and Dampier, 10,000 Mr J. Moore tonnes. The Maritime Division of Queensland Ms BOYLE (Cairns—ALP) (1.15 a.m.): At Transport has rejected the GPA's application the recent annual general meeting of Cairns to increase the port limit on the advice of the District Rugby League, President John Moore Chief Inspector of Explosives in the gave his last annual report to members. After Department of Mines and Energy. The chief 12 years John declined to stand again for inspector has an advisory role only, but he president. says that his refusal to support the port limit While those of us close to Cairns District increase is based on societal risk. Rugby League had been given some In declining to support an application to indications that this might happen, it was increase to 5,000 tonnes the amount of nonetheless big news—news both important ammonium nitrate that may be loaded onto a and sad to all the Rugby League members, ship at the port of Gladstone, the Department players and fans in the far north. of Mines and Energy is concerned with the Honourable members should know that remote risk of 5,000 tonnes of ammonium John Moore has done pretty much everything nitrate in a ship at the No. 4 berth. It has not that there is to do in promoting the game of given any weight to the safeguards that would Rugby League in Cairns. He played Aussie be in place to prevent that happening. Rules and Rugby Union as a schoolboy and a Over a number of years AN has been young man. He played in the commercial recognised as dangerous goods; however, league in Brisbane for BP. He won BP player handling regimes, guidelines and constraints of the year in 1959 and was captain of the both in the ship and on shore have increased premiership team. He represented Central exponentially. There must also be safeguards West in 1962. He played A Grade for Brothers as far as safety is concerned. The company Rockhampton for three years, though they has had a number of risk assessments carried missed the premiership in 1963. 5662 Adjournment 30 Nov 1999

He returned to Brisbane and rejoined BP thanking John Moore on his excellent service and captained the team in the final in 1968. in the far north and wish him well in his new He was transferred by BP to Cairns in 1968. position. This was to the good fortune of Cairns and Cairns District Rugby League. He coached Cairns Junior Rugby League for two years. He River Noise refereed juniors for three years and seniors for Mr BEANLAND (Indooroopilly—LP) six years in the 1970s. He was (1.21 a.m.): I rise to make some brief secretary/treasurer of the CDRL Referees comments about the growing problem of noise Association for three years. emanating predominantly from speed boats In promotion, he has also done an on the Brisbane River. I do so because, in excellent job. He was a member of Radio recent times, the situation seems to be getting 4CA's Rugby League panel show for six years worse. It is quite obvious that, with the and also did the ABC Radio show with Dick cessation of dredging, which occurred some Chant for 14 years. He was a committee time ago now and which was brought about by member of Cairns Brothers Club and was the coalition Government, the next issue that president of the club for six years. He was a really needs to be addressed is that of noise. Cairns Foley Shield selector for two years. The problem of noise affects people who not only live along the banks of the river but also He was executive officer of the Cairns those who live some distance away. Quite Cyclones for four years and is still a board often, one finds that the speed boats, which member of the Cairns Cyclones. He was a are predominantly the culprits, create such a foundation board member of the North noise that they can be heard for some Queensland Cowboys and president of CDRL considerable distance. for 12 years. It is worth while noting that, in this day This is an amazing record—a tremendous and age—and, in fact, for some time now—we contribution given to Rugby League in the far have had noise controls for such things as north, a contribution underlined by John stereos and musical instruments. The police Moore's continuing no-matter-the-trouble love can actually confiscate that type of musical of the game. Nonetheless, we accepted gear and, from time to time, have done so John's decision that it was time to move on. when their use become a nuisance to So we welcome Nigel Tillett, an experienced neighbours. I am sure that we have all executive committee member, as the new experienced or witnessed that occurring within president of CDRL. This week, we were our electorates. However, the noise problem extremely pleased to hear that John Moore as it relates to the river is vastly different from has been named Chairman of QRL Northern other noise problems. Although issues such as Division. This is the first time that a Cairns noise from motor vehicles has been delegate has held the position. Quite rightly, addressed, noise from river traffic has not tributes have been flowing to Ben Wall for his been addressed. In fact, over time very little 14 years in the position as division chairman. has been done about noise emanating from Already John Moore has made it clear that source. There are probably a number of that it is the future that will occupy him. These reasons for that. Nevertheless, I believe that it events and John's history in various is time for a close, hard look to be taken at this administrative positions are themselves much particular problem. like a good game of football—ups and downs, In the past—and it still does—the sudden changes, excitement right up to the Department of Transport's Maritime Services final whistle. However, the final whistle has not and Harbours has had a lot of control over the been blown for John Moore. His service to the vessels that use the river and the noise that game of Rugby League is not yet over. As emanates from those vessels. Nevertheless, patron of the CDRL, I for one am pleased the issue of noise emanating from those about that. I have worked well with John vessels is rarely addressed. Consequently, it is Moore and learned much from him. I have not only people living near the river who have proudly supported Rugby League in Cairns to put up with this problem but also the and expect to continue to do so and hope that University of Queensland, where students are I will do so as well with the new president, Nigel studying, particularly during exam times and Tillett. over weekends when a lot of this noise occurs. To all others in Cairns who have worked Therefore, this situation certainly needs to be hard for Rugby League—to all the players, all addressed. the coaches, all the referees—I am sure that I understand that the Government has they are with me tonight in congratulating and been looking at imposing a 75-decibel cut-off 30 Nov 1999 Adjournment 5663 level. Of course, 75 decibels is simply far too widows received a widows B pension, which noisy. Those of us who know what that noise gave them the same amount of money as level is like would know that, in those those people who are in receipt of the aged conditions, it is very difficult to carry on a pension. Those widows also received a conversation within a home nearby, have concession card which gave them a discount visitors over and carry on a normal lifestyle. on their rates, electricity, car registration and Certainly, a person could not study or watch train and bus fares. However, since July 1987 television with that level of noise. I believe that the allowance paid to widows has fallen to the 55 decibels is much closer to the noise level same rate as that received by the target that we ought to be aiming for. unemployed, $162.85 per week. That is That level of noise will still allow for boats $17.85 less than a pensioner receives. The and vessels to go up and down the river, widows do not get the $2.70 pharmaceutical including speedboats. Some people believe allowance. So, effectively, they are cash in that the more noise the speedboat makes, the hand $20.55 cents worse off. In addition, faster the speedboat is going to travel or the widows have lost the concessions that they better it is. We do not need that type of used to receive for electricity and car unmuffled noise emanating from speedboats. registration, although a health care card The problem emanates not only from entitles them to free glasses, dental work and speedboats but also from jet skis, which are a a cut on prescriptions. more recent arrival that cause a great deal of Widows should be treated no differently noise on the river. The noise of jet skis or water from any other person on a pension, and they scooters—whatever we want to call them—is deserve respect. They must be valued and causing a great deal of community distress. respected for the contribution that they have It is quite obvious that, with the 55-decibel made to the community as mothers and as noise level, those people who want to waterski wives or partners to men who have contributed can still do so and those who want to travel up to the building of this great nation. As decision and down the river can still do so. It just means makers, we should be moving as one to that, with that noise level limitation, there will eliminate confusion, inequity, uncertainty and be more passive uses of the river rather than concern about concessions and support other uses that create rowdy noises measuring policies that allow widows to receive at least up to something like 75 decibels. I believe that the same income and benefits as a person on that level is totally excessive. a pension. Widows have a right to live in the homes they have shared with their partners That level of noise also creates a hearing and families with some sort of dignity and problem for people. I know that many of us in quality of life. Being entitled to the same this Chamber suffer from some hearing income and benefits as a pensioner will not impairment. Anywhere near 75 decibels is take them from living below the poverty line to quite noisy indeed. Quite frankly, over time being well off. However, it would bring some that level of noise will certainly impair people's equity into the income of dependants. hearing capacity. I think that it is time that further action was In Queensland, the Labor Government is taken against the noise level of boats on the now looking at what can be done to assist river, not only to put a limit on it but also to these women. The vast majority of them are fit enforce that noise limit, as occurs with motor and well. Many of them would like to work, but cars, stereos or whatever. We have limitations they lack the skills or they are disadvantaged on the noise level of all of those things and by age. As a Government, we cannot increase noise limits on activities carried out in the allowance that is paid by the Federal commercial areas, but when it comes to the Government, but we can make available those river, little is done about the noise level. I concessions that are accessible to holders of a believe that we must focus on that. Seniors Card. The Seniors Card was an important initiative of the former Labor Government in Queensland. It provides Widow's Allowance Queensland residents aged 65 and over who Mr PEARCE (Fitzroy—ALP) (1.26 a.m.): are not in full-time employment with a range of Today, I draw the attention of the House to a services. situation that fails the equity test, and that is A Labor Government, compassionate the Commonwealth Government's widow's about those in need, must look closely at the allowance. The allowance recognises the plight of widows. We must put people first. difficulties faced by women who lose a partner Widows deserve no less consideration than and who have little or no recent work force others who are dependent on the Government experience. I am told that prior to July 1987, for their survival. We must be understanding. 5664 Adjournment 30 Nov 1999

We must be considerate and implement examples of the technology that was initiatives to offset the pain and heartache necessary to make this an effective search, as caused by the Howard Government's stingy was the use of helicopters and 15 SES anti-family policies that take from the poor and vehicles. There were many examples of the give to the rich. Those decent Australian community giving additional support to the women should not burdened with the worry of search effort. For example, the Maroochy finding money to pay full rates and other costs Shire RSL donated a satellite telephone worth like car registration and electricity. One in five over $4,500. Queenslanders now live below the poverty line. Although the search itself attracted a I ask: what percentage of those people are great deal of public attention, many aspects of widows who are struggling to stay in their the personal and community effort went family homes, meet mortgage payments or unnoticed. I would like to use the time pay rent, and pay rates, medical, power and available to me today to highlight the excellent telephone bills, as well as maintain a healthy work being done by members of SES groups diet? throughout the State and to stress the Members in this place must support me in problems that we are likely to face in the future my efforts to gain improvements for this small if Governments of all persuasions do not face but disadvantaged group of people. Widows up to their responsibilities in this area. are not asking for a special deal; they are The search I referred to earlier was a very asking only for a fair go and equal access to expensive exercise, but the State bore very the concessions provided to other persons little of the cost. Had the SES volunteers been who are dependent on pensions. They paid, this Government would have been up for deserve to be treated better than they are at a bill of around $250,000 in wages alone. present. Only as a united force can we ensure However, there was no wages bill for the SES that these changes are implemented. members. There was no invoice for the 1,500 man-days spent on the job in an area noted Sunshine Coast SES Function for its very rugged terrain. Those 1,500 days were given freely by community-minded Mr MALONE (Mirani—NPA) (1.30 p.m.): citizens. On Saturday afternoon I attended a barbecue at Booroomba Dam in the Sunshine Coast I am extremely concerned that, as time hinterland for those people who were involved goes by, the number of volunteers available to in the recent massive search for three missing local organisations such as the SES will women in the area. The search started out as decline to an alarming level. In recent years we being one for a missing schoolgirl, but was have regularly heard how organisations such expanded because of circumstances at the as service clubs, P & Cs and other similar time. The bulk of those involved in the function bodies have struggled for membership. We were members of 31 SES groups throughout have seen sporting bodies fold or come close 13 south-east Queensland shires. They were to folding, mainly because their volunteer joined by their families. The function was pools are drying up. It is often said that part of regarded as a wind down to what was the the reason for that is the threat of litigation that biggest search of its kind ever held in volunteers are exposed to. I do not know the Queensland. accuracy of the research to back up that Few people would realise what a massive statement, but I would not be at all surprised if undertaking the search was. It involved 1,500 it was the case. man-days and between 60 and 140 people on I do know that SES groups give of their any one day. About half of the man-hours time for weekly training exercises and call-outs were put in by members of four SES groups for no other reason than to help their from the Maroochy Shire. The search lasted communities. They get a great deal of 26 days and involved almost 400 people from personal satisfaction out of that, but they all parts of the community, including the SES, receive no monetary gain. I wish to stress that the Salvation Army, the St John Ambulance it actually costs them quite a deal more than and many others. The coordination of the time and effort. For many, it also means search required a great deal of effort and skill. money. Many are self-employed but they are While there were some unavoidable prepared to sacrifice part of their income to hiccoughs, the whole exercise highlighted the help where it is necessary. competence of hundreds of SES personnel If we reach the stage where the number and other service providers. of volunteers decreases, we simply could not The use of a communications bus, hand- afford to replace them. It would not be that held GPSs and a mobile repeater are simple. We could not afford to have a paid 30 Nov 1999 Adjournment 5665 reserve of people to take up what is now a social outcomes in that community, particularly volunteer role. In recent years, successive in relation to reducing crime in that community. Governments have poured additional funds The undergrounding exercise at Inala is into the SES in this State. I was disappointed also extremely valuable because it is a trial when the Minister ruled out any additional project which is basically finding the way in service assistance to local authorities in this Queensland in terms of the undergrounding of year's budget to help this arm of Government power. It is establishing various parameters for provide SES services. The burden is being operating the various technical aspects of the placed more and more on local government, capital equipment and the undergrounding of but nowhere near enough support has been cables, etc. Also it is establishing the given from the State level. I was very pleased economics of this particular project. I am very to see the Government flag its intention of pleased that the officers from Energex were obtaining an additional $1m for SES cadets, able to brief me very closely again on this which was an initiative of the Borbidge project. I particularly thank Pat Pearl and Mike Government. However, nothing was allocated Griffin, the officers from Energex who have to local government and nowhere near been most helpful in assisting me in enough was provided to assist volunteers in understanding exactly what is going on out avenues such as the provision of clothing and there in this undergrounding project at Inala. equipment. A number of outcomes are already I know that SES volunteers like to hear starting to emerge in terms of the analysis that their work being recognised and praised. It is has been provided. The general cost estimate easy for us to stand up and heap awards and was originally estimated at about $4,000 a praise on them. house and seems to be a realistic target for Time expired. future phases of this project. Indeed, there were some indications that that cost figure could even become lower as the project Inala Urban Renewal Project progresses. That project takes the undergrounding all the way along the streets Mr FENLON (Greenslopes—ALP) and to the house itself. It is a very valuable (1.35 a.m.): I rise in relation to a visit that I outcome for the community in terms of undertook on Monday of this week to the Inala beautifying it and removing overhead cables urban renewal project. That is the third time I entirely from the street. have visited that project in recent times. The first time was upon the opening of the There is a scenario analysis being underground project associated with the urban conducted at present under which emphasis is renewal project by the Honourable Minister for suggested to be placed on optimising low Mines and Energy, Mr McGrady. The second voltage losses and also in terms of time I visited the project was actually after it transformers being located near gas had got under way and drilling of the infrastructure to permit replacement by fuel underground pipeline areas had already cells in the future, which may be an important commenced. That was a very interesting element in future planning. There are various exercise in that I was able to compare that with other savings which are being estimated. In a similar exercise that I was able to inspect in total, those savings appear to come to about Perth, which was a very important 15% of the estimated total cost of the development. It is a city in Australia which has undergrounding itself. That is in terms of such progressed further than any other city in that it matters as savings of energy, savings on pole is undertaking to underground approximately inspection and replacement, savings on tree one half of the City of Perth by the year 2010. trimming, etc. So there are great savings directly as well as the obvious aesthetic The Inala urban renewal project has improvements and the general safety for the certainly been of merit in its own right in terms community in terms of outages that occur of the general beautification in that area and because of falling wires during storms and also the many aspects of the urban environment motor vehicle accidents. I will continue to urge that are being improved currently in the Honourable the Minister to continue to conjunction with the Department of Works and investigate the viability of this very important Housing. It is also doing some very important project. and valuable work to basically reconstruct that suburb. As we know from the earlier trials of Motion agreed to. these urban renewal projects, it is in fact going The House adjourned at 1.40 a.m. to have very real consequences in terms of the (Wednesday).