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Absence ofMinisters 23 April 1986 ASSEMBLY 1447 Wednesday, 23 April 1986 The SPEAKER (the Hon. C. T. Edmunds) took the chair at 11.7 a.m. and read the prayer. ABSENCE OF MINISTERS The SPEAKER-I advise the House that the Premier will be absent during question time today as he is attending the funeral service of the late Police Constable Angela Taylor; and that the Minister for the Arts will also be absent from the House today. QUESTIONS WITHOUT NOTICE METROPOLITAN TRANSIT AUTHORITY BORROWINGS Mr BROWN (Gippsland West)-I refer the Minister for Transport to his allegations in this House last week that the Auditor-General was in error in criticizing the escalating use of Metropolitan Transit Authority borrowings to cover operating costs. Is the Minister aware of a statement by the authority's board expressing serious concern that it is being forced to finance all capital works as well as significant operating costs from borrowings and leasings; and is it not a fact that the authority and the Auditor-General are right, and that it is the Minister who is wrong? Mr ROPER (Minister for Transport)-This matter was answered quite extensively last week by the Premier, the Treasurer and me. There is nothing further to add. As I stated last week, discussions are occurring between the Ministry of Transport and the Auditor­ General, and they are continuing. FLOATING OF THE AUSTRALIAN DOLLAR lVIr HANN (Rodney)-In his joint capacity as spokesman in this place on agricultural matters, I ask the Treasurer whether he is aware that the decision of the Federal Government to prop up the Australian dollar, rather than allow a free float of the dollar, is causing the extremely high interest rates that are placing enormous pressure on the rural community in Victoria. If so, will the honourable gentleman make representations to the Federal Government to bring about a change of that policy whereby there will be a free float of the Australian dollar so that interest rates can drop significantly? Mr JOLLY (Treasurer)-As all honourable members will be aware, since the Federal Government made the decision to float the Australian dollar, there has been a significant devaluation of the dollar in relation to both the United States dollar and other important foreign exchanges. Information I received today indicated that, although the Australian dollar is relatively strong against the United States dollar, there was a continuing depreciation against other exchange currencies. When one assesses the impact of the Australian dollar on the international competitive position of Australian firms and the agricultural sector, it is necessary to take into account not only the United States dollar but also other international currencies. Since the Federal Government took that decision and since this Government introduced reforms to workers compensation, a marked improvement has occurred in the competitive position of business organizations, including farms. Obviously the farming sector has been adversely affected not only by the international market but also, as was pointed out during the debate last week on the Mallee crisis, the climatic conditions. I have had discussions with the Federal Treasurer with respect to interest rates, and the policy of the Federal Government is not only to achieve high economic growth rates but 1448 ASSEMBLY 23 April 1986 Questions without Notice also to create the conditions under which interest rates can fall. If one examines the financial market position over the past two or three weeks, one will see hopeful signs in the area of interest rates; both semi-Government bond interest rates and Treasury bond interest rates are on the way down. I am hopeful that that impact will begin to flow to other sectors of the economy and achieve a reduction in interest rates. The Government supports policies that generate increased economic growth, increased jobs, low unemployment and create conditions to achieve reductions in interest rates. VICTORIAN WOMEN'S TRUST LTD Miss CALLISTER (Morwell)-Will the Minister for Industry, Technology and Resources, representing the Premier, inform the House what progress has been made towards establishing the Victorian Women's Trust Ltd and whether grants are now to be made available? Mr FORDHAM (Minister for Industry, Technology and Resources)-The Victorian Government donated $1 million to establish the Victorian Women's Trust Ltd as part of Victoria's 150th anniversary celebrations. The Government received enormous support from the community for what was seen as an extremely important initiative. The trust will provide a perpetual source of funds for projects aimed at improving the status of Victorian women. I am pleased to inform the House that at 12.30 today the Premier will officially launch the trust at the State Bank. The first round of grants has already been advertised, and, not surprisingly, more than 60 applications have been received. That is an indication of the significant interest that the development of the trust has attracted within the community. In May this year the first round of allocations will be made, and some $50 000 has been set aside for this group of projects to be assisted. In addition to the funds provided by the Government, there has been significant interest by a number of other groups willing to contribute to a trust of this sort and with its aims. I am pleased to inform the House that the Australian and New Zealand Banking Group Ltd trust has agreed to provide $20 000 to fund projects. A number of other bodies are being contacted and I believe further assistance will occur. The trust is able to accept bequests and donations from the community which it will use to invest and fund projects within the ambit of the trust activity. The Government believes eventually the annual interest from the capital sum itself will total more than $1 million which can be provided for projects within the State. The women's trust is the first of its sort within the country and one of the few throughout the world. It will be seen as a pacemaker for trusts of this sort, both in this country and elsewhere. The Government believes it is an important initiative and it will help to redress the imbalance, which it inherited when it came to office, that was so clearly weighted against women in Victoria. The Government is proud of its record in this area and, while the National Party and Liberal Party scoffat developments of this sort, they will continue to remain in opposition where they should remain for the foreseeable future. CAPITAL EXPENDITURE IN MINISTRY OF TRANSPORT Mr STOCKDALE (Brighton)-I refer my question to the Minister for Transport. Moving on from the Minister's embarrassment at borrowings being used to cover operating costs in the transport area, I refer the Minister to inaccuracies in public estimates and I ask the Minister whether total capital expenditure in the transport portfolio will increase this year by 2·9 per cent, as indicated in the Budget Papers, or whether it will increase by a massive 11·1 per cent as stated by the Ministry. Questions without Notice 23 April 1986 ASSEMBLY 1449 Mr ROPER (Minister for Transport)-The final picture for the outturn on capital works will depend on the various projects that are under way being satisfactorily completed by the end of the year, as the honourable member would be aware. The Metropolitan Transit Authority and the State Transport Authority are both running slightly under their estimated capital expenditure for the year, but naturally they are seeking to ensure that those jobs are carried out that the Government believes are necessary to improve the system. The Road Traffic Authority fell behind in the Fairway area and it has put those resources into its road safety capital program to ensure that its capital expenditure is spent on roads. Mr STOCKDALE (Brighton)-On a point of order, Mr Speaker, not only is the Minister debating the issue, but he is debating an issue that is not the one in question. The question is which of two estimates is correct. The SPEAKER-Order! There is no point of order. The Minister, in my view, was not debating the issue, although if I am allowed to make a comment, he did seem to be wide of the mark in respect of the subject, but it has been the practice of the House, since I have been in it, that Ministers may answer questions without notice in any manner they choose. Mr ROPER (Minister for Transport)-I was pointing out that in terms of capital expenditure programs it is expected that the Road Construction Authority will meet its commitments. There was a concern that local government would not be able to spend its contribution, particularly of Australian Bicentennial Road Development Fund moneys. Considerable work has been done by the Road Construction Authority and local government, particularly local government engineers, to ensure that works do progress. Apart from a shortfall of small proportions in the capital budgets of the State Transport Authority and the Metropolitan Transit Authority, the announcements made in the Budget Papers will be met. OIL PLATFORM CLOSURES IN BASS STRAIT Mr WALLACE (Gippsland South)-Can the Treasurer explain to the House the effects on the Victorian Budget of the closure of two more oil platforms in Bass Strait as a result of the downturn in the petroleum industry? Mr JOLLY (Treasurer)-I understand that the honourable member is referring to the recent decision by Esso-BHP to close down some platforms because of the import parity pricing and excise policies of the Federal Government. As I understand the position, the impact on the Budget this year and next year of that decision will be minimal because of the nature of the platforms that are being closed down.
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