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Hansard 4 December 1990 Legislative Assembly 5707 4 December 1990 NOTE: There could be differences between this document and the official printed Hansard, Vol. 317 TUESDAY, 4 DECEMBER 1990 ———— Mr SPEAKER (Hon. J. Fouras, Ashgrove) read prayers and took the chair at 10 a.m. AUDITOR-GENERAL'S REPORT First Report Mr SPEAKER: I have to inform the House that I have received the first report of the Auditor- General on audits performed for the financial year ended 30 June 1990. Ordered to be printed. PETITIONS The Clerk announced the receipt of the following petitions— Imposition of Death Penalty for Commission of Brutal Crimes From Mr Coomber (59 signatories) praying for the introduction of the death penalty for brutal premeditated crimes. Declaration of Parts of Fraser Island as National Park From Mr Welford (63 signatories) praying that all forestry and vacant Crown land on Fraser Island be declared a national park. Sand-mining Products Loading Facility, North Stradbroke Island From Mr Briskey (40 signatories) praying that the Parliament will not allow the construction of the proposed sand-mining loading facility on North Stradbroke Island. Milk-vendors From Mr Burns (200 signatories) praying that milk-vendors be allowed to continue to operate and that price-widening be not increased. Jericho-Yaraka Railway Line From Mr Hobbs (404 signatories) praying for the maintenance and upgrading of the Jericho to Yaraka rail line. Adoption Law Amendment From Mr Gibbs (83 signatories) praying for significant changes to the Adoption of Children Act Amendment Act 1990. Similar petitions were received from Mrs Sheldon (49 signatories) and Mr Welford (211 signatories). PAPERS The following papers were laid on the table— Reports for the year ended 30 June 1990— Central Queensland Producers' Cooperative Association Limited Mackay Sugar Cooperative Association Limited Legislative Assembly 5708 4 December 1990 Sugar Board Report and Financial Statements of the National Companies and Securities Commission for the year ended 30 June 1990 Orders in Council under— Dairy Industry Act 1989 Primary Producers' Organisation and Marketing Act 1926-1989 National Parks and Wildlife Act 1975-1989 Regulations under— Poultry Industry Act 1988 Primary Producers' Organisation and Marketing Act 1926-1989. MINISTERIAL STATEMENT Committee of Direction of Fruit Marketing Hon. E. D. CASEY (Mackay—Minister for Primary Industries) (10.04 a.m.), by leave: In a report tabled in the House this morning, the Auditor-General has made public his concerns about the trading performance of COD, which, members will note, has not been profitable for the past eight years. It is quite apparent that that deteriorating financial performance was well known to the previous State Government for many years and, obviously, it chose to do nothing about it. Although the Auditor-General advised the previous Minister of his concerns of the then seven years of unprofitable trading and accumulated losses in the vicinity of $11.6m, nothing decisive was done. Management actions that were offered to correct the situation simply have not done the job. As can be seen from results, no turn-around is apparent as yet, and losses continue to mount alarmingly. Members will be aware that, of recent times, the COD has been the subject of criticism by this Parliament and by myself. I have not been satisfied that that organisation is serving properly the fruit and vegetable industry. There are clear indications that COD is not appropriately structured, directed and/or managed to allow it to respond satisfactorily to changes in the present-day fruit and vegetable marketing environment. It is now essential that it be properly positioned to best service the needs of the industry for this new decade and beyond. In addition, the organisation has not enjoyed an adequate level of industry support for its trading functions. Members would be aware that this Government, unlike its predecessor, is committed to a process of legislative review and reform, which will include focus on bodies that show signs that they either may not be necessary to serve the community interest or may not be appropriately structured to serve the community interest in a particular area. I believe that the COD has the potential to provide valuable leadership in the development of horticultural industry in this State. That industry is showing strong growth, and the enhancement of domestic market access, product quality and throughput, together with the establishment and expansion of reliable export markets, are areas in which COD should be able to make a significant contribution. However, if that is not supported in fact by the industry, the Government will have to examine closely the need for the continuation, in its present form, of the Fruit Marketing Organisation Act. Notwithstanding the above, since taking office, my department and I have been following closely the performance of the organisation and have been kept informed regularly of developments. Opposition members interjected. Mr CASEY: I notice that honourable members opposite are showing concern now. Over the past eight years, they certainly showed no concern whatsoever. One of my major objectives is to encourage the development of a strong commercial focus for trading activities by COD, which seems to have assumed only a secondary importance Legislative Assembly 5709 4 December 1990 in an organisation that is more attuned to growers' considerations. Although growers' needs must be considered, there is no doubt that the industry as a whole would benefit from successful commercial performance from Sunshine Produce. In addition, I believe that there is a demonstrated need for a separate commercial board, run by directors with specialist skills and sound commercial experience, to conduct the commercial operations. Accordingly I initiated a series of meetings between myself, departmental officers, the chairman, board and management of COD. Subsequently, in September the board unanimously agreed that it would appoint a restructuring committee and engage a team of expert consultants headed by Price Waterhouse to advise on the feasibility of separating the grower representative and trading functions. The committee is addressing such issues as restoration of viability to the trading arm by implementing a program of cost reductions, management reorganisation, asset rationalisation and establishment of a commercial board for commercial operations. I am advised that this extensive review will be completed in January 1991, when recommendations will be adopted and put to the fruit and vegetable industry to determine support for the concept of separate entities. I would emphasise that from this restructuring process I expect significant structural changes to the organisation. The major outcome sought is the establishment of two separate entities: a grower representative entity operated by a grower board and a trading entity operated by a commercial board of directors with appropriate commercial qualifications and skills, which may or may not include some grower representation. Alternative business structures are presently being evaluated for the trading entity with the issue of ownership, including direct grower equity, being considered. Members will appreciate that a sufficient level of broad-based industry confidence, support and capital are prerequisites to the success of the new entity. I believe that these changes are essential and should provide an excellent opportunity for the new industry bodies to become independently successful and thereby provide better services to fruit and vegetable growers in Queensland. However, any potential success of the restructured organisation will stand or fall on industry and community support. MINISTERIAL STATEMENT Rural Health Unit Hon. K. V. McELLIGOTT (Thuringowa—Minister for Health) (10.09 a.m.), by leave: I am pleased to inform the House of a major new initiative to better serve the health needs of rural Queenslanders. After careful consideration of issues relating to the delivery of health services in rural Queensland, I have decided to establish a Rural Health Policy Unit within the Department of Health. This decision has been taken after an exhaustive study of Queensland's rural health services by a review team of my department. With the review completed, work is now underway to translate the internal findings of the review team into a meaningful and practical policy document, one that is able to serve the health needs of rural and remote Queenslanders into the next century. Honorable members will recall that it was a pre-election policy commitment of the Goss Labor Government to establish a rural health policy and advisory unit within the Department of Health. Having regard to the extensive work undertaken by the rural health review team, there has been established a clear and demonstrated need to develop a structure within my department capable of responding to the health needs of residents of rural Queensland. To ensure the Rural Health Policy Unit is able to develop and regularly review policies which relate to the delivery of health services in rural Queensland, I have set the following statement of objectives— "To foster optimum health for residents of rural Queensland by the promotion of good health and effective intervention in and treatment of disease and disability. To achieve this it will be necessary to ensure access of all residents of rural Queensland to the full range of health services of adequate quality." Legislative Assembly 5710 4 December 1990 This
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