COMMONWEALTH OF

PARLIAMENTARY DEBATES

HOUSE OF REPRESENTATIVES Official Hansard MONDAY, 4 JUNE 2001

THIRTY-NINTH PARLIAMENT FIRST SESSION—NINTH PERIOD

BY AUTHORITY OF THE HOUSE OF REPRESENTATIVES

CONTENTS

CHAMBER HANSARD Delegation Reports— Commonwealth of Australia Branch Delegation to the 46th Common- wealth Parliamentary Conference, United Kingdom...... 27107 Committees— Foreign Affairs, Defence and Trade Committee—Report...... 27110 Treaties Committee—Report...... 27114 Communications, Transport and the Arts Committee—Report...... 27116 Defence Act Amendment ( Cross) Bill 2001— First Reading ...... 27120 Statements By Members— Vietnam: Campaign for Religious Freedom...... 27123 Australian Defence Force: Cadets ...... 27124 Greenway Electorate: Wyndham College...... 27124 Community Legal Services, Victoria...... 27124 Veterans: Prisoner of War...... 27125 Cook Electorate: Sharks Leagues Club Redevelopment ...... 27125 Lowe Electorate: Homebush Boys High School ...... 27126 Regional Airlines: Services...... 27126 Middle East: Israeli-Palestinian Conflict...... 27126 Murray-Darling Basin: Water Quality...... 27127 Division of Aston: By-Election ...... 27127 Ministerial Arrangements ...... 27127 Questions Without Notice— One.Tel: Employee Entitlements...... 27127 Middle East...... 27128 Employee Entitlements Support Scheme...... 27129 Economy: Current Account Deficit...... 27130 Employee Entitlements Support Scheme...... 27131 Taxation: Services and Programs...... 27132 Economy: Foreign Debt ...... 27133 Taxation: Small Business...... 27134 Taxation: Anti-Avoidance Provisions...... 27135 Rural and Regional Australia: Health Initiatives...... 27136 Wide Bay Electorate: Regional Solutions Program...... 27137 Pharmaceutical Benefits Scheme...... 27138 Nursing Homes: Yagoona...... 27139 Education: Funding for Government Schools ...... 27140 Nursing Homes: Yagoona...... 27141 Dissent from Ruling...... 27142 Divisions: Conduct ...... 27152 Personal Explanations...... 27153 Petitions— Asylum Seekers: Work Rights...... 27155 Asylum Seekers: Work Rights...... 27155 Asylum Seekers: Work Rights...... 27155 Asylum Seekers: Work Rights...... 27155 Australian Broadcasting Corporation: Independence and Funding...... 27156 Fuel Prices ...... 27156 Fuel Prices ...... 27156 Goods and Services Tax: Pensioners ...... 27157 i CONTENTS—continued

Health: Bulk-Billing...... 27157 Fuel Prices ...... 27157 Goods and Services Tax: Caravan Parks ...... 27157 Australian Broadcasting Corporation: Independence and Funding...... 27157 Australian Broadcasting Corporation: Independence and Funding...... 27158 Kirkpatrick, Private John Simpson...... 27158 Medicare: Belmont Office...... 27158 Food Labelling ...... 27158 Centrelink: Job Cuts ...... 27158 Goods and Services Tax: Caravan Parks ...... 27159 Telstra: Privatisation...... 27159 Goods and Services Tax: Sanitary Products ...... 27159 Goods and Services Tax: Receipts...... 27159 Compact Disc Prices...... 27159 Wallsend After-Hours Medical Service...... 27160 Health: Diabetes Diagnostic Products ...... 27160 Economy: Standard of Living...... 27160 : Proposed Expansion...... 27160 Bankstown Airport: Proposed Expansion...... 27161 Roads: F3 Freeway...... 27161 Banking: Branch Closures...... 27161 Telecommunications: Mobile Phone Numbers...... 27161 Australia Post: Kingaroy ...... 27161 Australia Post: Winston Glades...... 27162 Administrative Appeals Tribunal: Abolition ...... 27162 Leave Of Absence...... 27162 Private Members Business— Economy: Performance ...... 27162 Private Members Business— : 100th Anniversary ...... 27169 Assent To Bills...... 27175 Grievance Debate— Health: HIV-AIDS...... 27175 Politics and Politicians ...... 27177 : Australian Antarctic Base...... 27179 Herbert Electorate: Infrastructure Projects ...... 27181 Rural and Regional Australia: Infrastructure Spending...... 27183 Youth: Government Policy ...... 27185 Internet Chat Rooms...... 27187 Inland Marketing Corporation...... 27189 Committees— Corporations and Securities Committee—Report ...... 27191 Great Barrier Reef Marine Park Amendment Bill 2001— First Reading ...... 27192 Appropriation Bill (No. 1) 2001-2002— Second Reading...... 27192 Adjournment— Answers to Questions on Notice: Carbon Dioxide Emissions ...... 27218 La Trobe Electorate: History ...... 27219 Retirees: Computer Training ...... 27220 Tourism: Bibles in Hotels...... 27221 ii CONTENTS—continued

Centenary of Federation: Women’s Petition...... 27222 Small Business: Budget 2001-02...... 27223 Retirees: Budget 2001-02...... 27223 Request for Detailed Information— Parliament House: Television Services ...... 27225 Notices ...... 27225 Questions On Notice— Goods and Services Tax: Company Tax—(Question No. 2016) ...... 27226 Second Airport: Sydney West—(Question No. 2305)...... 27227 Pensioners: Driving Assessments—(Question No. 2372)...... 27229 Sydney (Kingsford Smith) Airport: Sale—(Question No. 2374) ...... 27230 Australian Government Actuary: Parliamentary Contributory Super- annuation Scheme—(Question No. 2425)...... 27231 Sydney Basin Airports: Sale—(Question No. 2436)...... 27231 National Youth Roundtable: Applications—(Question No. 2496) ...... 27232 Environment: Carbon Dioxide Emissions—(Question No. 2524) ...... 27233

Monday, 4 June 2001 REPRESENTATIVES 27107

Monday, 4 June 2001 tries to move closer towards both economic ————— and social equality. Mr SPEAKER (Mr Neil Andrew) took In addition to facilitating discussion about the chair at 12.30 p.m., and read prayers. such important issues as poverty reduction, the prevention of environmental degradation, DELEGATION REPORTS programs to combat the HIV-AIDS epidemic Commonwealth of Australia Branch at an economic, social and political level and Delegation to the 46th Commonwealth the International Criminal Court, the key Parliamentary Conference, United theme of the 46th CPA conference was ‘Har- Kingdom nessing global communications to enhance Mr SCIACCA (Bowman) (12.30 p.m.)—I democracy’. Discussion in this pertinent de- present the report of the Commonwealth of bate was framed by the keynote address of Australia Branch Delegation to the 46th the Rt Hon. Robin Cook MP, UK Secretary Commonwealth Parliamentary Conference of State for Foreign and Commonwealth Af- held in the United Kingdom, from 20 to 29 fairs. Mr Cook called upon delegates to seize September 2000. The conference gave dele- the opportunities presented in the areas of gates the opportunity to visit the home of our trade, diplomacy and economic and social system of parliamentary democracy, in growth as the world becomes seemingly Westminster, and the parliaments of Scotland smaller every day as technology develops and Wales that were established under the faster, more reliable and more cost-effective policy of devolution in 1999. methods of communication. In particular, On the delegation, I was accompanied by delegates were called upon to pursue, within the President of the Senate, the Hon. Marga- their own countries and collectively, oppor- ret Reid; Senator Paul Calvert; Senator tunities to build a Commonwealth of Nations George Campbell, my parliamentary party united in prosperity, sustainable develop- colleague; the Hon. Ian Causley; and Mr ment, opportunity and human rights. Gary Hardgrave. On behalf of all delegates, I The challenges posed for democracy in extend my thanks to Senator Reid, the dele- the global age were further explored in the gation leader, and the delegation secretary, panel sessions. Several aspects of the rela- Mr Brendhan Egan, for their contribution tionship between parliament and the media towards the success of the conference. were debated by delegates, including free- The annual conferences organised by the dom of information legislation and human Commonwealth Parliamentary Association rights, making parliament newsworthy and aim to bring together parliamentarians repre- the freedom of the press versus the invasion senting the many and varying components of of privacy. From a personal perspective, I the Commonwealth of Nations in a forum in found very valuable the discussion on the which common issues confronting all states important question of self-regulation versus that strive to maintain the rule of law and government regulation of the media, which respect for human rights can be explored. was chaired by our parliamentary colleague from New South Wales, the Hon. George In officially opening the conference at Souris MP. The challenge of finding a bal- Westminster Hall, Her Majesty Queen Eliza- ance between upholding the role of the me- beth II praised the tradition of debate en- dia as a tool of enforcing the accountability couraged by the association and acknowl- of parliament and parliamentarians to the edged the opportunities created by the annual community and ensuring that the media is meetings in enabling delegates to learn about itself accountable for its actions is a pressing the endeavours undertaken by governments concern in a modern democracy. This ques- around the world in the pursuit of the princi- tion is particularly pressing in a country as ples of parliamentary democracy and to as- vast as Australia where parliamentary busi- sess and, where appropriate, remodel pro- ness keeps so many of us away from our grams for implementation in our own coun- electorates for substantial periods during the 27108 REPRESENTATIVES Monday, 4 June 2001 year and our constituents have no choice but Commonwealth Parliamentary Association is to rely on the media for news of the issues not as well understood in this country as it being addressed and activities being under- might be in a lot of other nations that rely taken by their elected representatives. very heavily on the Commonwealth Parlia- As in all these delegations, when you are mentary Association for support for their fortunate enough to travel with members and fragile democracy. I have been honoured to colleagues from the opposite side, I know serve as the Australian regional representa- that you always get a better understanding tive on the international executive over the and a lot of friendships are forged. I did not past year and I have found great friendships have to make friends with my parliamentary with people, many of them Speakers from colleagues on the opposite side of this par- their respective parliaments, from places as liament, but I had a fantastic relationship diverse as St Lucia in the Caribbean, Tanza- with the Leader of the National Party in New nia in Africa and various parts of the Indian South Wales, George Souris. He is a terrific subcontinent. fellow. I do not particularly agree with his One of the things that really stands out in politics, but he is a great bloke. He is one of my mind is just how valuable the support the best shoppers I have ever seen in my life. offered by nations such as ours to fragile He is just a terrific bloke. I enjoyed his com- democracies really has become. The Com- pany very much, as I did the company of the monwealth Parliamentary Association can honourable member for Page, the honourable claim some real credit, not at the minister to member for Moreton, who is in the House minister level but at the parliamentary mem- now, and Senator Campbell. ber to parliamentary member level, for reig- I would like to thank all of the Australian niting democracy in the massive nation of delegates to the 46th Commonwealth Par- Nigeria, for instance, where there are about liamentary Conference, and I commend the 20 state branches of the Commonwealth report to the House. Parliamentary Association now in existence again, after years of non-democracy in that Mr HARDGRAVE (Moreton) (12.35 country and where 100 million-plus African p.m.)—Firstly, I thank the member for Bow- citizens hold onto democracy, perhaps with man for giving an excellent critique for the the most slender of threads. Whilst many in record in this place of the activities of the this country criticise members in this place Commonwealth of Australia Branch Delega- for travelling overseas, I do not know what tion to the 46th Commonwealth Parliamen- other level of parliament should in fact be tary Association Conference. The penalty of travelling and representing its country other departing Australia to attend that conference than the federal parliamentary level. It is was that we were not here in Australia for very sobering to think about the real work the time of the Olympics. But the uniqueness that we do and the personal relationships that of the experience allowed us to view at first- we build, and the follow-up correspondence hand how well our country was portrayed on and assistance, and even the sending of BBC TV, for instance: at breaks in the con- electorate newsletters to people in other parts ference I was able to see excellent coverage of the world to show them how our democ- of Australia. I can report to you, Mr Speaker, racy is practised with such great flourish here that Australia was of course very well repre- in Australia. sented overseas on that particular aspect in the media. There is fragile democracy in our own midst, in the Solomons: how close it came The member for Bowman has outlined the not so long ago to falling over, as Fiji has course of the conference, a very successful again. The Commonwealth Parliamentary event and a precursor to what I believe will EHÃWKHÃPRVWÃVXFFHVVIXOÃFRQIHUHQFHÃHYHU WKH Association has put a great deal of store on the restoration of democracy in Fiji, and I one that is being staged in this place later this know that we are hoping that we can readmit year, in September. Of course, the role of the our Pacific island neighbour of Fiji back into Monday, 4 June 2001 REPRESENTATIVES 27109 the Commonwealth Parliamentary Associa- small populations of their own, had in those tion. days around the world. Later this year at the conference to take As the honourable member for Moreton place in and in Canberra, retrac- has said, some of the countries that were ing the steps of Federation and the parlia- there do rather cling to the old Common- mentary progress of this country, we will in wealth countries, such as Australia and Eng- fact be debating the need to readmit Northern land in particular, because we are seen to be Ireland’s parliament to the Commonwealth very democratic countries. Some of those Parliamentary Association. If I can speak countries have laboured to get the democracy from the Commonwealth Parliamentary As- that they are looking for in some areas and sociation executive level point of view, we they do look to us for a lead in many areas. I are recommending that Northern Ireland be had the privilege of serving on a panel which readmitted, and also several new states looked at the involvement of governments in within that massive democracy of India and a the area of environment. To sit there with couple more states within this new and, some of the African countries, in particular, thankfully, redemocratised Nigeria. and to listen to some of problems that they One of the things that comes out of meet- have, makes us think that we have some ing people who have the rule of law, human problems in Australia but nothing like the rights and democratic values at their heart is problems that they have in their countries. finding differing standards and the way they They really do have enormous challenges, are practised, and discovering new ways of with very few resources, and they certainly in fact exciting greater standards and better need the support of countries such as ours, levels of accountability and ensuring that the whereby we can not so much be big brother legacy of our Mother Parliament in West- but certainly give some of the advice and minster is well practised right around the knowledge that we have to help them in Commonwealth—an organisation which rep- those areas. resents over one-third of the world’s popula- One of the areas that really did stun me, I tion in some of the most fragile parts of the suppose, was the power that was put into the world. I commend the report to the House. debate by some of the African women. There Mr CAUSLEY (Page) (12.40 p.m.)—It is were quite a number of African women poli- a pleasure to support the honourable mem- ticians there, and the urgency that they ex- bers for Bowman and Moreton this afternoon pressed at that conference on the problem on the presentation of the report of the that they have in Africa with AIDS struck Commonwealth of Australia Branch Delega- me considerably. I did not realise at the time tion to the 46th Commonwealth Parliamen- that the AIDS problem was so large in Af- tary Association Conference. From the out- rica. They were quoting something like 20 set, I was a little astonished, I suppose, when million people—and since then it has grown we met in the Great Hall at Westminster, to an estimate of something like 30 million especially by the fact that the hall is nearly people—in Africa with AIDS. That is an 1,000 years old. With some of the history extraordinary problem for their societies. We that had gone on in that particular building, it tried to discuss with them some of the plans was a little awe-inspiring to sit there, and and policies that we had put in place in Aus- also to sit with some 50 Commonwealth tralia to overcome the AIDS problem. They countries that used to belong to the old Brit- say that they have had education programs in ish Empire. One thing that struck me was their countries, but there seems to be a suspi- that a country which in those days had cion that some of these things are a Western probably only some five million people conspiracy, as the women put it to us, and could have such influence around the world. that their countries are unwilling or unable to It is quite extraordinary the influence that accept some of the education that is needed. some of the European countries, with very 27110 REPRESENTATIVES Monday, 4 June 2001

Another shocking statistic that I was given port are as follows. Firstly, the committee did by these women is that it is considered that not find that there was a culture of violence 70 per cent of females in Africa will be raped in 3RAR or the Army. There was no evi- at some time or other. They feel as if they dence put forward to show that a system of have no control over the situation. The AIDS illegal punishments was widespread in epidemic that is racing through Africa is 3RAR or in the wider Australian Defence such a worry to them that I dare say that Force. Secondly, the committee found that anything that countries like Australia can do there was a system of extrajudicial punish- will be very helpful. ment taking place in A Company of 3RAR Mr SPEAKER—Order! The time allotted over the period 1996-98. That punishment for the debate has expired. took the form of illegal bashings of individu- als who were not performing adequately or COMMITTEES who were perceived to be guilty of offences Foreign Affairs, Defence and Trade by their peers. The committee is obviously Committee concerned that this was allowed to occur Report over that period without being identified and Mr HAWKER (Wannon) (12.45 p.m.)— stopped by those in authority. On behalf of the Joint Standing Committee The committee also comments on the per- on Foreign Affairs, Defence and Trade, I pres- formance of the military police and defence ent the committee’s report, incorporating a legal services. In essence, the investigations dissenting report, on an investigation into and charges should not have taken the time allegations of brutality in the Army’s para- they did. The committee acknowledges the chute battalion, entitled Rough justice? An considerable positive change both the mili- investigation into allegations of brutality in tary police and the Defence Legal Office the Army’s parachute battalion, together with have undertaken in procedures and structure evidence received by the committee and a since the start of this investigation, and urges further submission received after the com- this to continue. pletion of the inquiry. I must also say that the committee has Ordered that the report be printed. been heartened with the Department of De- Mr HAWKER—This report came about fence response to this investigation. Since as a result of public allegations regarding the committee started the inquiry, Defence brutality and ‘rough justice’ within the has taken the following initiatives: the ADF Army’s parachute battalion, the 3rd Battal- stand-down day and the address by the Chief ion, Royal Australian Regiment—3RAR. In of the Defence Force and the service chiefs the report, the committee took the strong to the Defence Force, the establishment of view that it would be entirely inappropriate the Burchett Military Justice Audit, the pro- to make comment on specific individuals or posed establishment of an ADF Inspector legal proceedings. The committee’s focus in , an investigation into the command this report was on identifying and improving responsibility surrounding the events at the processes of military justice. In conduct- 3RAR, the laying of charges against a num- ing this inquiry, the committee received a ber of senior individuals involved in the total of 50 submissions, 29 from individuals 3RAR investigation, the reorganisation of the with grievances. Two of these were from Army Military Police, the introduction of an individuals in 3RAR relating to the initial ADF prosecution team and an internal re- allegations that sparked the inquiry. These view of the Defence Legal Office. These are submissions ranged across a variety of issues significant activities, and the ADF should be and time frames and are discussed in a ge- commended for their actions. neric way in chapter 5. I would like to make a comment on one In relation to the specific allegations sur- specific area of the evidence received by the rounding 3RAR, the main points of the re- committee. At the final hearing in this in- Monday, 4 June 2001 REPRESENTATIVES 27111 quiry, on 9 March this year, the committee of the Joint Standing Committee on Foreign heard criticism regarding individuals within Affairs, Defence and Trade. I was one of the the Defence Legal Office. As this informa- signatories to a dissenting part of the report, tion came to the inquiry so late in the com- Rough Justice? An investigation into allega- mittee’s proceedings, the committee wrote to tions of brutality in the Army’s parachute the individuals named to offer them a right of battalion, but that dissenting section dealt reply to the allegations made during that with only one aspect and, indeed, there was hearing. Four officers took up that right and unanimous agreement on the rest of the re- forwarded to the committee on 10 May this port. year their rebuttal of the views expressed The terms of reference for this investiga- about them at that hearing. The committee tion were fairly narrow. It is fair to say that has authorised these responses as a supple- in many respects our work was taken over— mentary submission to the inquiry. indeed, taken over on the first day—by the The committee is now relatively comfort- Burchett inquiry. This is becoming some- able that, because of the pressure by this thing of a habit with this government. On a committee and subsequent action by the couple of committees I have been on, the Chief of the Defence Force and the Chief of committees have been doing their work and Army, processes are now firmly in place to the government appoints another committee. correct the situation. Those specifically re- I will give a couple of examples. One was an sponsible for the incidents have been identi- inquiry we were doing into the military, and fied and legal processes instituted where ap- the government appointed a three- or four- propriate. Additionally, the ADF is looking person committee to go around and do the at how this type of incident was allowed to work we were doing. Also, on a report I have happen. The Burchett audit and the investi- been involved in on the United Nations, as gation into the issue of command responsi- we were doing it the government set up a bility should allow lessons to be learned and secret inquiry within the department. identify if there are further issues to be ad- This inquiry that we are dealing with was dressed. Investigative and justice processes not an inquiry into the brutality or alleged have already been amended as a result of brutality in the defence forces but an investi- lessons learned. gation into allegations of brutality in the In the opinion of the committee, the Army’s parachute regiment 3RAR. I do be- events at 3RAR were unacceptable and lieve that Australia is well served by our De- should have been identified and stamped out fence men and women. Many of the recom- earlier than occurred. However, the commit- mendations that we were talking about, and tee does not think that they were widespread which the chair has highlighted, have already and does not consider that there was, or cur- been put into place. rently exists, a culture of violence in 3RAR It is true to say that the senior levels of our or in the wider Army. The action taken by defence forces—indeed all levels—are con- the committee and senior leadership of De- cerned to stamp out any forms of brutality. I fence to raise the profile of the issues of jus- think it is true from events such as the stand- tice and harassment will go a long way to down day that all Defence personnel are ensuring this type of incident does not occur aware of their rights and indeed of their re- again. sponsibilities. It is generally accepted that I thank all members of the committee for brutality in any form will not be tolerated. their input, the committee secretary, Marga- Although the committee was not given evi- ret Swieringa, Lieutenant Colonel Mike Mil- dence of illegal justice being used outside ford and Lieutenant Colonel Leo Hogan. I A Company 3RAR, we did not seek that evi- commend the report to the House. dence because that was not within the terms Mr HOLLIS (Throsby) (12.50 p.m.)—I of reference. Committee members will await agree with the comments made by the chair with interest the report of Mr Burchett. 27112 REPRESENTATIVES Monday, 4 June 2001

One aspect that did cause some concern is ADF bring these issues to the attention of the that many of the committee members felt committee? As the report highlights, these that the Department of Defence, and indeed issues were being investigated within 3RAR the minister, should have informed the com- while the committee’s inquiry in 1999 into mittee of the 3RAR investigation at the time military justice was proceeding. that the previous military justice inquiry was By examining the 3RAR allegations in being carried out. Had the committee been depth, the committee has provided a case aware of the serious allegations of rough study to evaluate the implementation and justice within 3RAR, this may have altered reporting of justice and equity procedures the committee’s consideration and recom- within the defence department. By examin- mendations made in the report tabled in June ing the issue, the committee can take some 1999. I would not go so far as to say that the credit for the response from the ADF, which committee had been deliberately misled, but includes an audit team under Mr Burchett I must say that evidence that should have QC to examine whether 3RAR allegations been put before that committee was not. are a one-off or more widespread, an in- It is always difficult when a dissenting re- spector general to expedite complaints, a port comes forward. I support the recom- specific investigation into events at 3RAR mendations made in the dissenting section of and the ADF stand-down day in February the report, but I stress that that was only one 2001 to brief all members of the ADF on aspect that the committee debated. On our their rights and responsibilities in military side, we felt very strongly in this measure, so justice. This is the correct role of the com- we signed that dissenting report; other mem- mittee. I believe the role of the committee is bers of the committee thought that we should to prod Defence and to keep Defence ac- wait until Mr Burchett brought down his re- countable but not to act as some sort of kan- port before deciding whether it was neces- garoo court, sitting in judgment on others. sary to take the measures that we recom- 3RAR is the Army’s parachute battalion. mended. The battalion has a proud record stretching We are keen to improve the whole process back to the Battle of Kapyong in Korea in of military justice. I think anyone interested 1951 and distinguished service in Vietnam in the defence forces would want to see an and East Timor. The benefit of undertaking a improvement in military justice, and we hope detailed inquiry into 3RAR and the allega- that our report will go some way towards tions is that it has allowed the committee to ensuring this. There have been significant understand the organisational culture which improvements and we welcome those. Like was operating in one isolated company of the chair, I thank those who assisted us in 3RAR. Cultures are informal but in this this report, especially the secretariat staff, led situation appear to have been reinforced by by Margaret Swieringa. key NCOs. Dr SOUTHCOTT (Boothby) (12.55 The committee is in no doubt that extraju- p.m.)—This inquiry was precipitated by me- dicial punishments were being carried out in dia reports into rough justice occurring in A Company 3RAR from 1996 to 1998. 3RAR, and it subsequently generated great These punishments took the form of illegal media interest during the hearings. It contin- bashings. While the committee was con- ues an interest that the Defence Subcommit- cerned about intimidation as part of the cul- tee of the Joint Standing Committee on For- ture, we were also concerned that the victims eign Affairs, Defence and Trade has shown did not use available avenues of complaint. in the issue of military justice, culminating in We do not believe that the culture which op- a report on military justice and procedures, erated in A Company 3RAR from 1996 was which was tabled in June 1999. The question widespread throughout 3RAR or widespread which was never really answered was: why throughout the ADF. In addition, there was didn’t the Department of Defence or the some suggestion in the media that 3RAR Monday, 4 June 2001 REPRESENTATIVES 27113 might be disbanded. I do not think there was get up to support this report, Rough justice? any support for this within the committee. An investigation into allegations of brutality This issue in fact was not even addressed in the Army’s parachute battalion, of the De- within the committee. fence Subcommittee of the Joint Standing I also want to address the role that the op- Committee on Foreign Affairs, Defence and position has played on this committee. As Trade, and all of its recommendations, and I the deputy chairman has said, dissenting re- thank the chair, the honourable member for ports are unusual. I think that the dissenting Wannon, for what I think has been a quite report is actually quite measured. What I difficult task. I have described the report as a want to talk about is the process of these snapshot of 3RAR. Others, including the hearings and so on over the last year. Parlia- Prime Minister, have sought to portray the mentary committees play an important role report as a clean bill of health on bastardisa- in providing scrutiny in their respective ar- tion in the rest of the ADF. I do not agree. eas. The opposition raised these issues and The committee heard only from a very lim- pursued them with zeal. However, in their ited number of soldiers from 3RAR. We did zeal, they lost sight not only of our obliga- not call all those who came forward who had tions as a parliamentary committee but of our served in 3RAR. We did not call anyone who responsibilities to, in the words of the physi- had been bashed by 3RAR members. We did cian’s dictum, first do no harm. Opposition not call anyone from any other army unit or members fail to realise that this inquiry has any other service. The committee spent in not been operating in a vacuum. There was total 1½ days on hearings, the majority of always the danger that our investigations, which was behind closed doors. One can which were not governed by rules of evi- debate the reliance on in camera hearings. dence or established procedures, had the po- For the record, I wish to state that the truth is tential to prejudice ongoing military investi- not, and nor should it be, a privilege ex- gations within military justice channels. As a tended by the ADF to the committee only parliamentary committee, we are not judge behind closed doors. From the evidence, the and jury. Our role is to prod and to scrutinise committee is in no doubt that bastardisation the Australian Defence Force and Defence, did occur in 3RAR. Drawing conclusions not to sit in judgment on individuals. As about the rest of the Army or the other two MPs, we should remember we are dealing services is a risky business and the parlia- with the reputations of service personnel and ment will have to await the findings of the their units. This calls for care in dealing with Burchett audit, and there is now far more allegations. The dissenting report, as I have responsibility on him and his team. said, was actually more careful than some of What is most amazing to me about this the deliberations we have had over the last sordid affair is the utter lack of any ministe- year. The committee also had an unfortunate rial leadership and indeed the extent of min- habit of leaking in camera evidence; this will isterial inertia and cover-up. The first record be the subject of a Privileges Committee of a complaint was directly to the minister hearing later. The committee examined what concerned. In March 1998, Mrs Nishimura we believe was an isolated culture operating complained on at least two occasions to the within a company, A Company 3RAR. There then junior minister, the Minister for Defence was no evidence it was widespread. The Industry, Science and Personnel, Mrs Bron- changes announced by the Chief of Army wyn Bishop, about the bashings in 3RAR. will assist in highlighting this issue and in- Army took fully 12 months before it treated creasing awareness within ADF ranks. The the matter formally. In May 1999, in an ex- committee plans to revisit this issue in 12 ercise of great deception, Minister Scott, the months to determine whether the new Minister Assisting the Minister for Defence, changes and awareness are working well. did not disclose the identity of 3RAR, which Mr PRICE (Chifley) (1.00 p.m.)—It is was the subject of a military police investi- with pleasure as an opposition member that I gation, and the excuse he offered was that it 27114 REPRESENTATIVES Monday, 4 June 2001 was ‘inappropriate, as it may have prejudiced Mr DEPUTY SPEAKER—In accor- the investigation or legal proceedings’. Thus dance with standing order 102B, the debate the committee, at the very time it was con- is adjourned and the resumption of the de- cluding its first report into military justice, bate will be made an order of the day for the was left ignorant of the bastardisation that next sitting. The member will have leave to two ministers were made fully aware of. In continue speaking when the debate is re- that three-year period what action did either sumed. minister take? Absolutely nothing. They Treaties Committee claim to have been briefed, but they took zero—nil, no—action, issued no directions Report and no instructions. In those three years Mr ANDREW THOMSON (Wentworth) these impotent ministers have been moved to (1.05 p.m.)—On behalf of the Joint Standing do absolutely nothing. For three years there Committee on Treaties, I present the com- has been no ministerial statement about bas- mittee’s report entitled Report 39—Privi- tardisation in general or in 3RAR in particu- leges and Immunities of the International lar. There has not even been a dorothy dixer. Tribunal on the Law of the Sea and the trea- ties tabled on 27 February and 6 March How can the public and the mums and 2001, together with the minutes of proceed- dads of serving men and women believe that ings and evidence received by the commit- the government is serious about bastardisa- tee. tion when its ministers are constantly miss- ing in action and bereft of a skerrick of lead- Ordered that the report be printed. ership? Because of the abortive investiga- Mr ANDREW THOMSON—The report tions and charging of those involved in bas- I have just presented contains the results of a tardisation in 3RAR, consideration of com- review by the Joint Standing Committee on mand responsibility has been deferred to the Treaties of 13 proposed treaty actions. They end of the process. Let me say that, from the include: Agreement on Privileges and Im- evidence presented to the committee, Com- munities of the International Tribunal for the mand has much to answer. The committee is Law of the Sea, a series of air services continuing to follow this issue closely and agreements with Denmark, Norway, Sweden, will again be briefed on Tuesday, 19 June by Pakistan and Samoa, amendments to the General Leahy, whose frankness I for one agreements establishing the Asia-Pacific very much appreciate. I understand that Postal Union, a mutual recognition agree- charges have been laid against a lieutenant- ment with Singapore, an amendment to the colonel, but there has been no official con- constitution of the International Labour Or- firmation of this. If this is true, silence can ganisation, agreements with Denmark and serve only to undermine public confidence. I South Africa for the reciprocal protection of call on the minister to confirm whether or classified information on defence, an agree- not such charges have been laid. ment establishing the Pacific Islands Forum Mr DEPUTY SPEAKER (Mr Nehl)— Secretariat, and a series of amendments to Order! The time allotted for statements on the Treaty on Fisheries between the Gov- this report has expired. Does the member for ernments of Certain Pacific Island States and Wannon wish to move a motion in connec- the United States of America. In this report tion with the report to enable it to be debated we express support for each of these treaty on a future occasion? actions. Mr HAWKER (Wannon)—Yes, I do, Mr I would like to talk briefly about two of Deputy Speaker. I move: them: the Agreement on Privileges and Im- munities of the International Tribunal for the That the House take note of the report. Law of the Sea and, briefly, the mutual rec- I seek leave to continue my remarks later. ognition agreement with Singapore. The Leave granted. privileges and immunities agreement seeks to provide a more comprehensive regime of Monday, 4 June 2001 REPRESENTATIVES 27115 diplomatic privileges and immunities from think it is a sensible and measured extension prosecution for the International Tribunal for of the government’s reformed treaty making the Law of the Sea, known by the acronym process. Both the Attorney-General and the ITLOS, and its members, officials, counsel Minister for Foreign Affairs have indicated and witnesses. ITLOS has been established that they see merit in this idea. There are as a means of settling disputes arising be- some issues of sensitivity with certain draft tween parties to the United Nations Conven- legislation, but I am sure that these can be tion on the Law of the Sea. overcome. We look forward indeed to the We on the committee accept that there are government formally amending the treaty reasons to grant privileges and immunities to making process to allow the committee to some international bodies exercising man- examine related legislation at the same time. dates of economic and political sensitivity. Before closing, I would like to commend Parties to these disputes may see very large to the House the mutual recognition agree- issues involved, maybe even of a domestic ment with Singapore. In our view, it is political nature, and hence it is a wise thing clearly in the national interest to establish to grant diplomatic immunity to the persons mutual recognition agreements with major involved in trying to settle the disputes. We trading partners where it is possible to do so accept also that these privileges and immu- without jeopardising the quality of our do- nities will facilitate the effective functioning mestic assessment processes and the health of this tribunal and that they will, in a sense, and safety of Australian consumers. I con- give the tribunal some extra credibility gratulate members of the committee on the among its peers. hard work that they have put in in compiling However, we consider that there is an un- this report, and I commend it to the House. fortunate degree of uncertainty in the way in (Time expired) which the treaty text describes the persons Mr WILKIE (Swan) (1.10 p.m.)—I rise upon whom such privileges and immunities to speak in support of report 39 from the are to be conferred. We recommend that, in Joint Standing Committee on Treaties. As future, agreements of this type ensure that has already been stated, the report relates to terms such as ‘experts’, ‘agents’, ‘persons the consideration by the parliament’s Joint performing missions’ and ‘counsel and advo- Standing Committee on Treaties of 13 pro- cates’ are defined much more explicitly and posed treaty actions. While these treaty ac- precisely. tions are fairly routine in nature, they repre- This review also highlighted what we re- sent an ongoing and important function of gard as a deficiency in the reformed treaty the treaties committee. The committee al- making process. Since 1996 it has been the lows scrutiny of proposed treaties by the government’s practice to ensure that any parliament and provides members of the necessary legislation that is required to give public with the opportunity to have input into domestic effect to a treaty action is put in the merits and possible consequences of pro- place before, or at least at the same time as, posed treaties. the proposed treaty action is presented to It is important to take this opportunity to parliament. In our view, the integrity of the place on the public record the strongest re- reformed treaty making process would be pudiation of those who believe the treaties enhanced if the government presented its that Australia ratifies in some way compro- legislative proposals to the treaties commit- mise this nation’s sovereignty. Last week, in tee for consideration at the same time as we the Western Australian Legislative Council, consider the treaty. Surely this is only logi- the newly elected member for the Mining cal, because that would allow the treaties and Pastoral Region, the Hon. John Fischer committee to make a fuller assessment of the MLC, used his maiden speech to be critical impact on Australia’s domestic law of the of Australia entering into international trea- potential implementation of the treaty. We ties. But treaties do not compromise this na- 27116 REPRESENTATIVES Monday, 4 June 2001 tion’s sovereignty. They reinforce Australia In relation to the Treaty on Fisheries be- as a responsible international citizen, one tween the Governments of Certain Pacific which takes its role seriously by recognising Island States and the United States of Amer- the importance of entering into international ica, the committee has had an ongoing inter- agreements. Contrary to what Mr Fischer est in fisheries and environmental treaties, said, the report now before the parliament is and our reports have supported treaty actions the result of public hearings and various in- that provide sensible and effective measures quiries, resulting in all of these treaty actions to ensure management of fisheries. This being subject to detailed scrutiny. agreement allows the US fleet long-line ac- Returning to the specific treaty actions cess to the treaty area, to which other nations contained in the report, a number of the 13 with less environmentally responsible fishing treaty actions demonstrate the tangible bene- records already have access, and allows two fits to be gained by Australia from entering small Pacific island nations, Papua New into international treaties. For example, the Guinea and the Solomon Islands, an oppor- mutual recognition agreement with Singa- tunity to enhance the capacity of their do- pore will simplify compliance requirements mestic fishing operations. While the treaty on Australian exporters seeking to sell their expands the opportunities for long-line fish- products in that market, in certain industry ing in the central and western Pacific Ocean, sectors. Western Australian companies will we consider that it should do so in a reason- particularly benefit from this measure. Two- able and measured fashion. way trade between Australia and Singapore Mr DEPUTY SPEAKER (Mr Nehl)— totalled $A9.2 billion in 1999-2000. Western Order! The time allotted for statements on Australia accounted for nearly $A3 billion of this report has expired. Does the member for this trade, including nearly $A2 billion worth Wentworth wish to move a motion in con- of exports. The existing trade relationship nection with the report to enable it to be de- can only strengthen due to this agreement. bated on a future occasion? The committee has proposed that the De- Mr ANDREW THOMSON (Went- partment of Foreign Affairs and Trade con- worth)—I move: duct a formal evaluation of the benefits of That the House take note of the report. such agreements for Australian exporters and I seek leave to continue my remarks later. consumers, at some time in the future. The parliament could then use this when consid- Leave granted. ering the establishment of further mutual Mr DEPUTY SPEAKER—In accor- recognition agreements or the extension of dance with standing order 102B, the debate the existing agreements. Such a measure is is adjourned. The resumption of the debate worthy of the support of the parliament. will be made an order of the day for the next The amendment to the constitution of the sitting and the member will have leave to International Labour Organisation was con- continue speaking when the debate is re- sidered by the committee to be a simple, sen- sumed. sible and no-cost treaty action. The treaty Communications, Transport and the Arts will enable the annual International Labour Committee Conference to abrogate international labour Report conventions that have lost their purpose or Mr NEVILLE (Hinkler) (1.15 p.m.)—On no longer make a useful contribution to at- behalf of the Standing Committee on Com- taining the objectives of the ILO. This is a munications, Transport and the Arts, I pres- process that is not presently available, as out- ent the committee’s report entitled Back on of-date conventions can only lie dormant or track: progress in rail reform, together with be denounced to avoid their application. It is the minutes of proceedings and evidence a worthwhile and practical measure. received by the committee. Ordered that the report be printed. Monday, 4 June 2001 REPRESENTATIVES 27117

Mr NEVILLE—I formally table this re- Declaration of the national track is the port today, Back on track, having presented it cornerstone of this package. It could parallel to the Speaker out of session in Melbourne the national highway declaration and its un- on 11 May during the Centenary of Federa- doubted benefits to the road transport indus- tion celebrations. My colleagues and I on the try. Specifically in rail, it would allow inte- House’s transport committee felt that this grated and efficient management of track to a was appropriate, as it was probably 74 years much greater level than at present; provide a since the last such report was presented harmonised operating environment for pri- there. We wanted to make the point that the vate sector rail operators; provide a stable, one area in which Commonwealth and state consistent regulatory environment for private cooperation has been clearly lacking is that sector investors; and, importantly, define of rail. government funding responsibilities with a In April last year the government issued clarity that they lack at present, thereby pro- its response to Tracking Australia, the com- viding both rationale and opportunity for mittee’s earlier report on the same subject. targeted government intervention and in- The government acknowledged that consid- vestment at a rate which reflects rail’s poten- erable economic and social advantage would tial contribution to the national transport flow from an efficient interstate rail network. task. It also noted that the present interstate rail There is also a desperate need for the network is not managed efficiently and that Commonwealth to fund major below track further reforms are needed. To encourage infrastructure development. What my com- these reforms, the government proposed a mittee asks for is not pie-in-the sky stuff. As series of benchmarks aimed at facilitating my electorate and that of my colleague the access to the interstate rail tracks for rail op- member for Capricornia straddle the north erators based on mutual recognition of ac- coast railway line from Brisbane to Rock- creditation and the harmonising of safety hampton, I have experienced the benefit of standards. Moreover, the government com- superior below track infrastructure. In com- mitted itself to considering legislative inter- bination with ’s tilt rail, this has vention to achieve these aims if the states nearly halved this sector’s passenger rail and industry were not able to achieve them time over the past decade and upgraded by mid-2001. freight movements to a more efficient level. It is now mid-2001, and the reform It can happen elsewhere in Australia. It is a benchmarks have not been achieved. We great opportunity. The community and in- conclude in Back on track that further reform dustry want better rail services. Back on will not be achieved without direct and track has mapped out the regulatory and forceful Commonwealth government inter- management reforms that are needed, and the vention. Four actions are imperative. First, ARTC has revealed a coherent set of national the government must declare the existing investment priorities. standard gauge rail line from Brisbane to We are deeply concerned that the rail in- Perth to be a national track. Second, the gov- dustry attracts a relatively small proportion ernment must establish a national rail net- of government funding for transport infra- work manager to ensure a consistent access structure. We do not quibble with the need regime for operators. Third, the government for continuing high levels of road funding. must establish a national rail transport com- Indeed, the committee supports such a move mission to ensure coherent cross-border in its 1997 report, Planning Not Patching. planning for the future of the industry. Fi- But we do believe that a better balance needs nally, the government must fund a significant to be achieved in funding the development of infrastructure redevelopment program to our national transport infrastructure. I am overcome chronic deficiencies in rail infra- pleased to note that the recent national infra- structure. structure audit of the Australian Rail Track Corporation has provided a blueprint of in- 27118 REPRESENTATIVES Monday, 4 June 2001 frastructure investment options along with matched by government. As the chairman the assessments of scope feasibility and the pointed out in his foreword to the Back on cost of such works. All that is needed now is track report: the political will to confront the challenge of While responsibility for ensuring the continuing reform—the will to cut through the parochial development of the industry lies with many play- concerns, vested interest and red tape that ers, we believe that the cornerstone of the reform bind the industry to its past. I am hopeful effort is political will. that the government will accept this chal- The need for leadership at a Commonwealth lenge and deliver the reforms that have been level and a strategic national approach to rail foreshadowed in Back on track. I commend infrastructure and the rail industry was a this report to the House. constant theme throughout the discussions at Ms LIVERMORE (Capricornia) (1.20 last year’s seminar and is reflected in the p.m.)—I am pleased to be given the opportu- committee’s recommendations to the Minis- nity to comment on the latest report of the ter for Transport and Regional Services. As I Standing Committee on Communications, mentioned before, I am relatively new to this Transport and the Arts, Back on track, which committee, but it comes as no surprise to me reflects the major issues raised by partici- that what has been identified as missing in pants at a seminar convened by the commit- the transport portfolio, particularly in rela- tee late last year. The aim of last year’s tion to the rail sector, is leadership, an inte- seminar—which I am sure honourable mem- grated strategic approach and, last but not bers have heard from the chairman, the least, some action. As a representative of a member for Hinkler, already—was to bring regional electorate, I have made the same back the key people and organisations in- lament in relation to this government’s lazy volved in the 1998 inquiry that resulted in and slapdash efforts in regional develop- the committee’s Tracking Australia report so ment. At least the minister, John Anderson, that we could assess the progress made to- is being consistent across his portfolio re- wards the recommendations listed in that sponsibilities, even if not being constructive. report and its companion reports, the Smor- It was clear from the seminar that the in- gon report and the Productivity Commis- dustry is crying out for support and leader- sion’s report, and the benchmarks set out by ship from the minister. A particular problem the Commonwealth government in its re- area is in the planning of our rail transport sponse delivered in April 2000. I was not on needs and capacity and the development of the committee for that major report of 1998, infrastructure. So far, the minister’s response Tracking Australia. I naturally have a great has been at odds with the industry’s wishes. interest in rail, however, because it is an im- In 1999 at the Ausrail conference the minis- portant part of the local economy in Rock- ter said that the government does not support hampton, providing many hundreds of jobs, a centrally planned approach which might be and it plays a vital role in the coal industry in seen to be dictating national transport devel- my electorate. opment. It seems that the minister’s views Having not been on the initial inquiry, I criticising central planning for rail have be- did not go into the seminar last November come obsolete in any event, following the with a detailed knowledge of the specific release of the Australian Rail Track Corpo- aspects of the rail industry reforms can- ration’s audit of the national network based vassed in the earlier report. It was interest- on the corridor analysis methodology to ing, though, that you did not need that de- widespread support from the industry. In the tailed knowledge to pick up the overall im- absence of any vision coming from the min- pression of the industry players around the ister, the committee has recommended that table—that their commitment to a dynamic, the results of the ARTC’s national infra- efficient industry, with a big future and a structure and performance audit be used as a significant role to play in Australia’s devel- guide to future investment in rail infrastruc- opment and economic success, was not being ture. Monday, 4 June 2001 REPRESENTATIVES 27119

What the minister derides as central plan- line, which has 74 per cent of the freight traf- ning in danger of dictating national transport fic. That is the highest percentage figure in development, the Labor Party sees as respon- the world for rail freight traffic compared sible management of an important facet of with road. That particular railway runs national infrastructure. The Labor Party will through the heartlands of Corangamite and not take the same reactive ad hoc approach we can see, day by day, the effectiveness of to national transport infrastructure as this that rail line—where the private sector has government. Our policy is very clear about operated and where there are good, improved our intention to be much more proactive in rail structures. Privatisation has been identi- bringing together state governments, industry fied, with Freight Victoria now injecting players and private investors to develop a capital into the Victorian system and opening coherent integrated land transport system. up new railways that cart logs from Bairns- For example, our policy platform includes a dale to Geelong. We can see SCT, again a commitment to an integrated national rail private operation, operating out of Laverton. network and tracks of national significance The three reports, Tracking Australia, the to the operation of the economy, including Smorgon report and the Productivity Com- efficient intermodal connections, particularly mission report, identified much the same airports. We promise to designate the inter- problems in Australian railways. I would just state rail mainline network from Perth to like to quote the sorts of things they identi- Brisbane as the national rail system and fied: maintain it in public ownership. • land transport planning; Furthermore, there is a promise to develop • increased investment in the interstate track; a national transport planning strategy and • better management of and access to the inter- processes that provide for fair competition state track; between modes, transparent and objective • competitive neutrality between private and criteria for investment, equality of modal government owned operators; treatment in regulatory and financial issues, • competitive neutrality between road and rail; and policy integration with environmental, • fragmentation of schemes providing access energy and land use objectives—just some to rail infrastructure; and examples of our approach to national infra- • inconsistent operational and safety regimes. structure planning. In contrast the minister, The setting up of the Australian Rail Track John Anderson, has had three major reports Corporation to provide access is a step in the in the last four or five years, plus this sup- right direction, although there are obviously plementary one, and so far has made no concerns about the price and the ability of moves to address these issues. (Time expired) that particular corporation to operate effec- Mr McARTHUR (Corangamite) (1.25 tively as it is fairly new. As the chairman, the p.m.)—As an active member of the Standing member for Hinkler, has said to the parlia- Committee on Communications, Transport ment, we are recommending that $250 mil- and the Arts, I commend the Back on track lion be invested in rail infrastructure over report to the parliament. I also actively par- four years—a minuscule amount compared ticipated in the Tracking Australia report of to the vast amounts of money that are put 1998, which was a landmark report in rail- into roadworks. The committee are very way reform for Australia. That report par- happy with the government’s proposition to ticularly identified rail freight, the above and sell National Rail so that those operators who below line structures and the inadequacies of purchase National Rail will be in the private a number of rail lines throughout Australia. sector. It noted the good operations of the east-west The report identifies a very important rail from Melbourne to Perth and the poor feature—that railways have long not been operations of the Melbourne to Brisbane able to prepare in advance, having had their north-south line. In particular, the Tracking ‘plans in the drawer’, so to speak. We saw Australia report noted the Perth-Melbourne 27120 REPRESENTATIVES Monday, 4 June 2001 situations where, when the track was stan- be they recipients of military honours or dardised, old life-expired rail was put back those who sat in adjudication of these; nor is on old sleepers. So we want to overcome that it intended to reopen old wounds surround- sort of problem. We need to have harmonised ing the awarding, non-awarding or even un- relationships between historically run state der-awarding of military honours. operations, where radio and signalling are It is intended to fully and formally recog- standardised in a Commonwealth way. By nise three Australian servicemen who per- way of comparison, if the states controlled formed outstanding feats of courage in the the airspace, where Ansett and Qantas were name of their country and for their fellow using state-by-state regulations, we could see servicemen. I have, along with other politi- the chaos that would emerge from that. We cians through the years, been accused by need to make sure that access to the rail sys- some of politicising the honours system by tems is known and that accreditation is at a questioning what did and did not happen in federal level. We draw a comparison be- terms of recognising the valour and courage tween the national highway system, where of various service men and women. If by that trucks can drive from Cairns to Perth having people mean that I and others have sought to one type of situation. have decisions made to honour such acts, Mr DEPUTY SPEAKER (Mr Nehl)— then so be it. If they mean I and others have Order! The time allotted for statements on sought to use the political process to do this, this report has expired. Does the member for then so be it. Hinkler wish to move a motion in connection Political lobbying, legislation and regula- with the report to enable it to be debated on a tion are the means to bring about such an future occasion? end. They are also the means that people and Mr NEVILLE (Hinkler)—I move: groups use to achieve change. It is the demo- That the House take note of the report. cratic way of influencing decision making I seek leave to continue my remarks later. and taking things forward. It is the legitimate way of correcting anomalies. Indeed, how Leave granted. else does it happen, unless it is through more Mr DEPUTY SPEAKER—In accor- extreme means? The three men proposed in dance with standing order 102B, the debate this bill are worthy of the award of the Victo- is adjourned. The resumption of the debate ria Cross in recognition of their most con- will be made an order of the day for the next spicuous bravery and valour. The actions of sitting, and the member will have leave to Gunner Albert Cleary of the 2/15 Field continue speaking when the debate is re- Regiment, Royal Australian Artillery, Private sumed. John Simpson Kirkpatrick, 3rd Field Ambu- DEFENCE ACT AMENDMENT lance, AIF, and Ordinary Seaman Edward () BILL 2001 Sheean of HMAS Armidale were clearly: First Reading ... pre-eminent acts of valour ... or self-sacrifice or extreme devotion to duty in the presence of the Bill presented by Mr Sidebottom. enemy. Mr SIDEBOTTOM (Braddon) (1.30 There are numerous testimonies—contempo- p.m.)—I present the Defence Act Amend- rary and continuous—that each of these men ment (Victoria Cross) Bill 2001. I do so on fulfilled the requirement for a Victoria Cross. behalf of many people. It is my attempt, That their actions were conspicuously brave, along with colleagues in this House and in pre-eminently acts of valour, acts of self- the Senate, from both sides of politics, to sacrifice and acts of extreme devotion have tackle what many believe are some glaring been argued for years. Each of them died anomalies in the military honours system of because of these actions, and none of them this country. It is in no way intended to be a had these deeds formally recognised, beyond slight on or to cast aspersions on any mem- ber of our armed forces throughout the years, Monday, 4 June 2001 REPRESENTATIVES 27121

Teddy Sheean being awarded a posthumous that a VC could be given only for acts of generic mention in dispatches. conspicuous gallantry which were materially Over the years, family, veteran associa- conducive to the gaining of a victory. What- tions, community lobby groups and parlia- ever the case, Simpson’s deeds were not mentarians of all political persuasions have formally recognised with a military honour sought to have the extraordinary deeds done but came to symbolise the Anzac tradition. by these ordinary servicemen properly rec- Albert Neil Cleary was imprisoned by the ognised with the award of the Victoria Cross. Japanese after the fall of Singapore, and was Members of this House and the Senate have murdered while a prisoner of war in Borneo been part of the campaign. The members for on 20 March 1945. Gunner Cleary, along Shortland and Franklin recently raised the with thousands of his fellow Australian and case of Simpson Kirkpatrick; Senator Chris British prisoners of war, was forced to march Schacht and the member for Corio have on the infamous death marches through the promoted the case of Albert Cleary; and I, jungles of Borneo. Having survived the first along with the members for Cowan, New of these marches from Sandakan to Ranua, England and Indi, promoted the case of Cleary escaped but was captured four days Teddy Sheean. I also particularly commend later. Handed back to the Japanese, Cleary the past and present efforts of people such as was subjected to a sustained and brutal re- Frank Walker and the National Corvettes gime of unimaginable torture and mistreat- Association, Gary Ivory, Max Sheean, Rex ment. He endured this pain for 11 days until Pullen, Senator Don Devitt, a former federal dumped by his captors in a gutter. His fellow member for Batman, Captain Sam Benson POWs sought to comfort him in his last RAN, John Bradford, Michael Carlton, Mr hours. He too died at the age of 22 years. Fred White and David Richards, amongst The enormous courage and fortitude dis- many, on behalf of Teddy Sheean. played by Gunner Cleary in his attempt to The remarkable story of Private John escape and throughout the subsequent ordeal Simpson Kirkpatrick and his donkey named was an inspiration to those with whom he ‘Murphy’ is well known to every Australian. was incarcerated. Contemporary evidence His deeds of valour at Gallipoli are legen- would suggest that little was done at the ad- dary. For 24 days, Simpson tended and fer- ministrative level to formally recognise the ried the wounded and dying through the in- ordeal and actions of POWs, particularly famous ‘shrapnel valley’, while exposed to those who lost their lives in trying to escape. enemy fire, grenades and artillery bombard- Unfortunately, Gunner Cleary’s courage was ment. It is recorded that in this time Simpson one such example. However, just as Simp- rescued as many as 300 soldiers. The story of son’s and Sheean’s actions grew to become Simpson’s rescue missions was common symbols of courage for their respective knowledge among Anzac diggers, including services, so too the awarding of the VC to the highest ranked officers. The commanding Albert Cleary would add honour to the officer of his unit, Captain Lyle Buchanan, memory of the 1,700 POWs who died in remarked that Simpson had earned the Victo- Borneo at the hands of the Japanese. ria Cross 50 times over, and he was said by I have spoken in this House a number of General Sir John Monash to have been worth times about the extraordinary valour of Or- more than 100 men. Simpson was on one dinary Seaman Edward ‘Teddy’ Sheean. such mission into no-man’s-land when he Teddy was a junior sailor on HMAS Armi- was shot and killed in the afternoon of 19 dale when it was attacked and sunk by Japa- May 1915. He was 22 years of age. nese aircraft off the coast of Timor on 1 De- There is confusion surrounding the reason cember 1942. Whilst his ship was quickly that Simpson was not awarded military hon- sinking and in the midst of the chaos of ours, including the Victoria Cross. Some evacuation, Teddy strapped himself to his historians argue it may have been the case Oerlikon gun to repel the oncoming aircraft 27122 REPRESENTATIVES Monday, 4 June 2001 strafing his fellow crewmen in the water dations to the Admiralty in London, where about him. Sheean was hit twice but kept the awards and honours committee made the firing his gun, even as HMAS Armidale dis- decision. Furthermore, Walker points out that appeared beneath the surface. He was 18 commanding officers of Royal Navy ships years old. were entitled to recommend sailors for cer- Almost the same type of incident occurred tain awards but the captains of Royal Aus- off the south coast of England in July 1940. tralian Navy ships were instructed that ‘the Just as in the Sheean example, the courage nature of the award is not to be suggested’. and valour of Leading Seaman Jack Mantle Clearly, for a variety of reasons, there was aboard HMS Foylebank at Portland helped little enthusiasm to seriously advance the save many of his colleagues battling to sur- case of Teddy Sheean by the ACNB or other vive in the sea around him. Fittingly, Jack authorities in Australia upon receipt of the Mantle RN was posthumously awarded the final report of proceedings for HMAS Armi- VC. Teddy Sheean RAN on the other hand dale. According to historian John Bradford, posthumously received a mention in dis- the Australian government of the day did not patches. There has been a campaign ever appear to be well informed about the se- since to right what many have regarded as a quence of events which drove Sheean to dis- bureaucratic oversight. Mr John Bradford of play such heroism, nor did it avail itself of its Adelaide, author of In the Highest Traditions newly established powers, issued as a royal (RAN Heroism, Darwin 19 February 1942) warrant on 31 December 1942, to recom- in correspondence with me on this issue mend the Victoria Cross. Surprisingly, there pointed out that much of the confusion sur- is nothing to suggest the Australian govern- rounding Sheean’s case stemmed from the ment ever exercised these powers throughout fact that mention in dispatches was the low- the rest of the war. est grade of award for gallantry that could be To this day, no member of the Royal Aus- awarded posthumously. The only other tralian Navy has been awarded the Victoria award was the Victoria Cross—there was no Cross. Why is this? This is the reason so in between. many people have campaigned for Teddy Sheean’s case relied heavily on the report Sheean to be posthumously awarded the of proceedings provided by his commanding Victoria Cross. It is a VC not just for the ex- officer to the board of inquiry following traordinary valour and courage of Teddy HMAS Armidale’s loss. Unfortunately, Sheean but for every act of courage per- Sheean’s conspicuous gallantry was only formed by members of the Royal Australian briefly recorded by his CO. The process of Navy since its inception at the beginning of recommending awards for gallantry in the the 20th century. The failure or refusal to act , as opposed to the on behalf of the calls for proper recognition Royal Navy, was a story of comparative dis- of the valour and gallantry of the three serv- crimination—discrimination, it should be icemen mentioned in this bill is best summed pointed out, which did not exist for the AIF up in the following chronicle related to or the RAAF. Teddy Sheean. In his search for justice for Teddy Sheean, In a letter full of bureaucratic speak dated Frank Walker, author of HMAS Armidale— 25 October 1999, a senior defence adviser to the Ship That Had To Die, has pointed to the the Minister for Veterans’ Affairs pointed out inadequacy of the awards system as related that the End of War List for World War II has to the RAN. Unlike the AIF and the RAAF, been completed, and because Teddy Sheean where awards were recommended and de- was not recommended prior to this, he there- cided by Australians in Australia, RAN fore stands ineligible. The adviser wrote: awards were not. The Australian Common- It is not practical for better judgements about wealth Naval Board, headed by a seconded individual actions or merit to be made at this time Royal Navy officer, had to send recommen- than were made by contemporary authorities who Monday, 4 June 2001 REPRESENTATIVES 27123 had direct access to eye witness reports and could time. What changed in all these cases? Were test evidence when it was fresh. they wrong then and gradually became right? The adviser recognises in the correspondence No, they were right then and nothing has the fact that Sheean should have been changed except the political will to do awarded ‘a gallantry award of a higher stat- something about them. It is the political will ure’, but not now in hindsight. The danger: that determines what happens, and we are ... creating a precedent for unwanted and perhaps calling for this to happen in this case. If the divisive comparisons between these ‘hindsight fear of precedent is the danger, then that awards’ and those recommended and granted at danger is being dealt with all the time. the time. Albert Cleary, John Simpson Kirkpatrick In a condescending paragraph, the adviser— and Teddy Sheean died in the service of their again stressing the great courage of country. Each performed extraordinary acts Sheean—writes: of valour and served as a great example for ... the reality of military life under operational their fellow servicemen at the time and sub- conditions is that men and women enter life sequently. Each is remembered and honoured threatening situations as an integral part of their in a variety of ways by family, friends and duty. That some of those individuals are singled supporters. Indeed, the nation honours them, out for gallantry awards is fitting; but again, the but none is honoured with our highest award reality is that many who do perform acts of great for gallantry—the Victoria Cross. In this year courage are never recognised. of the Centenary of Federation, we have the The point is that where glaring omissions occasion, the way and the means to make occur or the evidence clearly indicates that this happen. What we need is the political recognition should take place, it should. The will. whole point of the honours system is to hon- I commend to the House the valour and our the deed, not to avoid it. I find the ques- deeds of these remarkable young men who tion of retrospectivity an interesting one died defending their country, and the spirit when dealing with government’s willingness and intention of this bill to formally recog- or unwillingness to act on issues. Generally nise their self-sacrifice. Lest we forget. I it is frowned upon and every argument is seek leave to table a paper. thrown up to avoid it—until, that is, it is po- litically expedient to justify it. One only Leave granted. needs to investigate numerous areas related Bill read a first time. to veterans’ affairs to see this at work. Take, Mr SPEAKER—In accordance with ses- for example, issues related to Vietnam vets, sional order 104A, the second reading will the Malay campaign, Korea and POWs—all be made an order of the day for the next sit- causes which hit the proverbial bureaucratic ting. brick wall, only to be dealt with retrospec- STATEMENTS BY MEMBERS tively when politically necessary or expedi- ent. Vietnam: Campaign for Religious Freedom I have read the correspondence, for exam- ple, related to attempts by the National Mr RIPOLL (Oxley) (1.45 p.m.)—The Servicemen’s Association to get formal rec- recent arrest of Father Ly, a Catholic priest, ognition of their service. ‘Impossible,’ in Vietnam is a sad turn of events that has warned various ministers’ letters; ‘In no way considerably set back progress in that coun- different from normal peacetime duties,’ it try. Father Thaddeus Nguyan van Ly, who was claimed; ‘A divisive comparison of rec- has been campaigning for religious freedom ognition,’ said others. So, after years of lob- in Vietnam, was arrested on 18 May at about bying and with an election in the air, there is 5 a.m. at the An Truyan Parish Church in the an announcement that a special medal would Hue Archdiocese, Central Vietnam. It is be struck for the thousands of men who were claimed that around 600 security agents sur- conscripted as national servicemen in peace- rounded and broke into the church to arrest 27124 REPRESENTATIVES Monday, 4 June 2001

Father Ly. This news was confirmed by guns and Bren guns at Canungra in my final Dang Cong Dieu, who is the chairman of the year in cadets. To this day, I have a healthy people’s committee in Phy An village where and abiding respect for firearms. I still get a the church is located. chill if I see anyone pointing a muzzle into The Catholic priest has been arrested and the air. This is a positive step in the right detained because allegedly he has ‘defied the direction for young cadets. I congratulate Dr order and continued to slander the party and Nelson and the government for their vision. government policies on religious freedom’. Greenway Electorate: Wyndham College Father Ly is not new to being arrested or held Mr MOSSFIELD (Greenway) (1.48 in detention for his campaign for religious p.m.)—Last week, I had the honour of pre- freedom. Father Ly spent 10 years in jail senting the Edmund Barton biography to between the years 1970 and 1990 and since Wyndham College at Quakers Hill in my 1992 has been kept under strict police super- electorate of Greenway. Wyndham College is vision. These events are very sad because a comprehensive senior high school operat- religious freedom is one of the most sacred ing within the Nirimba collegiate group of of human rights. It is paramount to freedom schools. The college draws students from of speech and freedom of faith. years 7 to 10 schools within Greenway— I know that the Vietnamese community in Quakers Hill High, Riverstone High and Australia are very deeply disturbed and sad- Seven Hills High. The college is situated in dened by the arrest of Father Ly and see this the Nirimba education precinct, co-located move as a huge setback for freedom of re- with the University of Western Sydney, ligion, speech and media in Vietnam. If the Blacktown, Western Sydney Institute of Vietnamese authorities and the Vietnamese TAFE and Terra Sancta Catholic High people are to grow and prosper economically School. The book presentation was made and spiritually, then, before any other prog- during a special assembly which included a ress is made, the most essential growth of the presentation of the recent year 12 Great nation must first take place—that is, the Barrier Reef excursion, sports presentation freedom to express one’s personal faith. I and musical and dance items. I thank the pray this happens soon. school community and the principal, Ian Australian Defence Force: Cadets Wing, for the hospitality shown to Jan and me on the day. Mr NEVILLE (Hinkler) (1.47 p.m.)— I rise to congratulate the Parliamentary Secre- Wyndham College opened in 1999 with tary to the Minister for Defence, the Hon. state-of-the-art facilities and offers unique , who has worked through advantages for students, including opportu- the wide-ranging recommendations of the nities for student leadership through the stu- report Cadets: the future and has presented a dent representative council, Duke of Edin- three-year implementation plan to the gov- burgh Awards and public speaking engage- ernment, which it has adopted. I wholeheart- ments. One of Wyndham’s senior students, edly support the government’s vision for the Ehsan Fallahi, recently attended the Prime ADF cadets to provide opportunities for all Minister’s National Youth Roundtable here young Australians to experience comprehen- in Parliament House. Wyndham College also sive personal challenges. It should enhance offers an extended timetable structure which self-esteem, nurture self-discipline and pro- allows for greater flexibility in subject vide adventurous enjoyment, as well as giv- choices: 52 courses are currently being de- ing young people a taste of a possible mili- livered to year 12 students. The school motto tary career. As a former cadet myself, I sup- says it all: Working together to widen hori- port enhancing cadets’ participation in mili- zons. tary like activities, including the use of Community Legal Services, Victoria closely supervised firearms for cadet units Mr BILLSON (Dunkley) (1.50 p.m.)— I who want them. I shot .22s, .303s, Owen rise today to commend the insightful and informed assessment by our Attorney- Monday, 4 June 2001 REPRESENTATIVES 27125

General of the implementation advisory from Veterans’ Affairs; she had responded to group report on the review of community their advertisement— legal services in Victoria. I have spoken in which advised her that she may not be entitled to this place before about the fantastic service the full amount, depending on her income. provided by the Peninsula Community Legal I would like to know why the government was Service. They service a catchment of some not able to say—at the very beginning—that there 720,000 people, providing a range of serv- was this catch. It looks like the $1000 debacle all ices centred in my electorate of Dunkley at over again. Frankston but offering outreach services in The Minister for Veterans’ Affairs has writ- other offices in the south-eastern and growth ten to the Australian responding to this, this corridors of Melbourne. They do a fantastic morning. He says: job. They attract not only federal money but In response to the concerns raised by Kevin also resources from local councils and even Smith, I can assure your readers that the $25,000 from some of the student union organisations payment announced in the federal Budget ... will in the local universities. They offer extension be paid in full to all eligible recipients. work into the more difficult areas. They offer The ex gratia payment is not subject to any consumer advice, advocacy and family law means test. It will not affect any veteran disability support. It is a model service, but the Bracks pension or war widow’s pension. It is not taxable. government has proposed to withdraw fund- It will not be counted as income or an asset for ing from them and to change their area. income support pensions paid by the Department The report which the Attorney-General re- of Veterans’ Affairs or Centrelink. fers to shows that the Commonwealth pro- However, the budget papers say: vides $4.2 million a year to Victorian com- The measure will cost $247.8 million. The pay- munity legal services, double what the Victo- ment itself will be non-taxable, exempt under the rian government provides. If the Victorian lump sum income testing rules and will be classi- government wants to provide more funding fied as an exempt asset under the assets test. of services in outer metropolitan and re- But the budget papers say: gional areas, it should simply lift its game. It The deeming rules will apply to the payment. should up its contribution. It should even aspire to match what the Commonwealth Therefore, with the payment sitting in the provides, not strip money from perfectly pensioner’s account, the pensioner will have functioning excellent services that are al- their pension reduced. (Time expired) ready established, to paper over the fact that Cook Electorate: Sharks Leagues Club the Bracks state Labor government in Victo- Redevelopment ria provides only three per cent of the fund- Mr BAIRD (Cook) (1.53 p.m.)—Tonight ing for community legal services in rural and there is a very important meeting at Suther- regional Victoria. land Shire Council chambers on the future of Veterans: Prisoner of War the proposal for the redevelopment of Sharks Mr COX (Kingston) (1.51 p.m.)— I draw Leagues Club. I rise to condemn the gagging the House’s attention to a letter which ap- of meaningful public debate by Sutherland peared in the Australian on 30 May from Shire Council in the lead-up to this meeting. Kevin Smith of Shenton Park in Western The Cronulla Sharks have made a huge con- Australia. He wrote regarding the $25,000 ex tribution to the Sutherland Shire, not only in gratia payment to Australian prisoners of war rugby league but also in giving support to of the Japanese or their surviving spouses local charities, and they have boosted the and says: local economy through financial support of various community projects. My mother 87, and the widow of a POW who died in a Japanese camp, did so. She received a It has been six months since the Sharks return phone call— submitted their redevelopment plan to coun- cil, and it still has not gone on display. The proposal is aesthetically pleasing and places 27126 REPRESENTATIVES Monday, 4 June 2001 environmental concerns right at the top of a wonderful environmental initiative by the the priorities. The project also promises fur- school to mark Australia’s Centenary of Fed- ther benefits to our economy, including the eration. As the garden grows into something provision of conference and convention fa- even more beautiful, it will provide a perma- cilities as well as hotel rooms to attract more nent place for historical and personal reflec- of Sydney’s lucrative tourism dollars. A fur- tion for the students. It will also stand as a ther advantage to our community is the in- poignant environmental symbol, reminding clusion of aged care housing, of which there the students to take care of our mother earth. is a desperate shortage in the southern region Well done, Homebush Boys High School. of Sydney. The actions of Sutherland Shire Regional Airlines: New South Wales Council represent a petty and cynical attempt Services to win approval from a vocal minority re- sisting this excellent proposal, solely because Mr St CLAIR (New England) (1.56 it is another development—not on its merits. p.m.)—On Friday last I represented the In fact, the vast majority of local people I Commonwealth at a meeting of regional air- have spoken to are supportive of the Sharks’ lines in Sydney. I certainly welcome the plan. I simply say this to the councillors: formation of a working group to examine make sure that you support the Sharks’ pro- ways of improving the viability of small re- posal and do not give in to this vocal minor- gional airline services in New South Wales. ity but put the priorities of the shire and the The working group will prepare a submis- Sharks first at tonight’s meeting. sion to federal and state transport ministers by 27 July 2001. It will examine issues such Lowe Electorate: Homebush Boys High as the cost pressures on regional airlines and School the role of the New South Wales government Mr MURPHY (Lowe) (1.54 p.m.)— in regulating regional air services. New Homebush Boys High School in my South Wales is the only state that continues electorate of Lowe is a shining example of to regulate its regional airlines and is the our public education system. At the only state where the loss of regional airline invitation of the school’s very respected services is a major issue. For example, both principal, Mr Ian Patterson, I was delighted Western Australia and Queensland have been on Friday, 4 May 2001 to speak to the highly successful in maintaining air services student assembly about Federation and to on very remote routes. In contrast, the fed- present to the school the biography of eral government has made an enormous Australia’s first Prime Minister, Edmund contribution to the viability of New South Barton, written by the noted historian Wales regional airlines. Amendments to the Geoffrey Bolton. In addition to his notable slot management scheme will political achievements, I was delighted to let protect regional airlines, and we have im- the young students know that Edmund posed price controls on the airport to ensure Barton was born in nearby Glebe on 18 that they cannot be forced out by punitive January 1848 and that in the early 1840s the increases in charges. Those two measures Barton family lived not far from Homebush alone will not be affected by the privatisation on the family’s 104-acre estate in Five Dock, of the airport and guarantee that regional which is in my electorate of Lowe. airlines cannot be forced to relocate to an- Following the school assembly, I was in- other airport, such as Bankstown. As a result vited to open the school’s Centenary Garden of those decisions, regional airline travellers in the presence of Year 7A geography class will always be able to fly into Sydney air- and Mr Neil Francis, student representative port. (Time expired) council members and deputy principals Mr Middle East: Israeli-Palestinian Conflict Bill Hilliard and Mr Tim Jurd. The garden Mr DANBY (Melbourne Ports) (1.57 comprises six bottlebrush trees and grevillea p.m.)—On Friday night in Tel Aviv outside a trees representing Australia’s six states and nightclub 20 young people, mainly young two territories. The creation of this garden is Monday, 4 June 2001 REPRESENTATIVES 27127 women, were blown to pieces by a suicide DIVISION OF ASTON: BY-ELECTION bomber. This took place at a time when the Mr SPEAKER—I inform the House that government there had abided by a unilateral on Friday, 1 June 2001 I issued the writ in cease-fire. In the view of many people connection with the by-election for the divi- around the world, it could not have come at a sion of Aston, and the dates fixed were worse time, given the fact that there is inter- those announced to the House on 24 May national support for the recommendations of 2001. the Mitchell committee supporting a cease- fire, to be followed by the resumption of ne- MINISTERIAL ARRANGEMENTS gotiations. I note with approval the liaison of Mr HOWARD (Bennelong—Prime Min- the German Foreign Minister, Joscka ister) (2.00 p.m.)—I inform the House that Fischer, with Palestinian Authority Chairman the Minister for Trade will be absent from Yasser Arafat in announcing Palestinian question time this week. He is visiting Japan compliance with an immediate cessation of and China for bilateral discussions and for violence. I hope the government of Israel the APEC trade ministers meeting in Shang- continues its forbearance in sticking to the hai. The Minister for Foreign Affairs will cease-fire, and equally I call on the Palestin- answer questions on his behalf. ian Authority to commit to the cease-fire in QUESTIONS WITHOUT NOTICE word and deed. The death of 20 young One.Tel: Employee Entitlements women can advance no-one’s cause. Mr BEAZLEY (2.01 p.m.)—My question Murray-Darling Basin: Water Quality is to the Prime Minister. Prime Minister, ha- Mr PYNE (Sturt) (1.59 p.m.)—I rise to- ven’t you been forced to act on One.Tel, day to raise in 90-second statements a matter overruling your minister in a knee-jerk reac- that will be close to your heart, Mr Speaker, tion to save your own political skin? And and that is the Murray River and the quality didn’t you intervene last year, in the case of of the water that Adelaide residents have to National Textiles, again in a knee-jerk panic, tolerate as a consequence of the states being to provide a one-off payment to that com- unable to agree to coordinate their approach pany? Prime Minister, instead of these ad to the Murray-Darling river system. The state hoc knee-jerk reactions, isn’t it time for you that bears the most odium for its lack of co- to adopt Labor’s national employee entitle- operation with the Commonwealth govern- ment scheme? That will provide a permanent ment is the state of Queensland. The states of solution guaranteeing 100 per cent of all Victoria, New South Wales and South Aus- workers’ entitlements— tralia and the Commonwealth have moved Mr SPEAKER—The Leader of the Op- eons in cooperation over the last 10 years, position cannot advance an argument, as he particularly under the environmental minis- is aware. try of Robert Hill. But Queensland continues to hold out against the Commonwealth and Mr BEAZLEY—in Australia, including the other states, and continues to clear thou- the forgotten people at Braybrook Textiles, sands of hectares of land a year. I have pro- Scone meatworks— posed in recent times, as you would have Mr SPEAKER—The Leader of the Op- seen in the Advertiser, Mr Speaker, that the position will come to his question. Commonwealth conduct a referendum to Mr BEAZLEY—and Grenadier Coating. delete section 100 from the Constitution and Mr HOWARD—You were going to do give itself a head of power under section 51 something about it in the 14th year. The re- to control the Murray-Darling River system. ality is that you had 13 years to do something Mr SPEAKER—Order! It being 2 p.m., about this. The simple reality is that the peo- in accordance with standing order 106A, the ple who should be funding the entitlements time for members’ statements is concluded. of the One.Tel employees, if there is a re- ceivership or a liquidation and there are not 27128 REPRESENTATIVES Monday, 4 June 2001 assets in the company to do it, are Messrs while you were a senior minister in the Rich and Keeling, through a refund of the Hawke and Keating governments. Year after bonuses. They are the people who should be year, people lost their entitlements, and for making the payment. If that does not happen, 13 years you sat on your tail and did abso- our position is this: our scheme will be trig- lutely nothing. You now come along with a gered, and if the New South Wales govern- plan that would slug honest, decent, caring ment will match its rhetoric with a bit of ac- employers. In the end, if these entitlements tion those One.Tel employees can be paid ought to be picked up, it is a community re- their entitlements. I would hazard to suggest sponsibility. It is not the responsibility dis- that, in the absence of precise details of the proportionately of small business; it is a employment arrangements of each of the community responsibility. The New South employees—because they are not avail- Wales government is rolling in money as a able—given that the company has only been result of the GST. The Victorian government in operation for a period of two or three is rolling in money as a result of the GST. years, most of these employees would not The Queensland government is absolutely have been working for the company for a filled to overflowing with money as a result long time. of the GST. The least they can do is dip into The Leader of the Opposition mentioned their pockets, show a bit of decency to Aus- National Textiles. In the case of National tralian workers and match the Common- Textiles, the New South Wales government wealth’s generous scheme. chipped in the same as the Commonwealth. The other thing I might do while I am on If the New South Wales government were my feet and the Leader of the Opposition prepared to do that, I would be able to confi- gives me an opportunity to do so is to inform dently assert in the parliament right now that the House, as I have already the Australian the great bulk of all of the entitlements of public, that the Commonwealth intends to those One.Tel workers would in fact be met. amend the law so that in future, where bo- I would remind the opposition that, since nuses are paid in the circumstances where early last year, the federal government has those bonuses were paid to the bosses of paid just over $2 million to New South One.Tel, that money will be refundable and Wales employees who have lost entitlements. can be used to meet the lawful and legitimate Nearly 1,000 New South Wales workers entitlements of the workers and also the would have received more under the scheme other creditors of the company. Once again, if the Carr government had met its share. The this is an example of the determination of Australian public is entitled to look to the this government, whilst being a great sup- performance of Labor governments. The porter of the capitalist system, to prevent a most senior Labor figure in Australia is the recurrence of this type of thing in the future. Premier of New South Wales. That Premier Mr Reith—And now you are telling the stands condemned right now for not being states not to put in. willing to match what the Commonwealth has been willing to put in. The Premier of Mr Crean—You look after your son; he New South Wales is apparently going to ad- looks after his brother. dress the One.Tel workers. Instead of making Mr SPEAKER—The Leader of the fine speeches to the One.Tel workers, he House and the Deputy Leader of the Opposi- ought to promise them a cheque. Instead of tion are both defying the chair and will both rhetoric and words, what about a little un- be dealt with. derwriting of their entitlements? Middle East We do not believe that the scheme put Mr PYNE (2.07 p.m.)—My question is forward by the opposition is equitable. We addressed to the Minister for Foreign Affairs. remember that for 13 years you did nothing. Would the Minister for Foreign Affairs ad- There are thousands upon thousands of Aus- vise the House of the implications for the tralian employees who lost their entitlements Monday, 4 June 2001 REPRESENTATIVES 27129

Middle East peace process of the horrendous ment in the Middle East, and we can only suicide bombing in Tel Aviv last Friday? hope and, indeed, pray that out of this trag- Mr DOWNER—I thank the member for edy comes some good and that a cease-fire Sturt for his question and, indeed, for the fact and negotiations will commence. that he does take these problems, which are Employee Entitlements Support Scheme very severe and tragic problems in the Mid- Mr BEAZLEY (2.10 p.m.)—With your dle East, seriously. All Australians, I am indulgence, Mr Speaker, may I add my total sure, were shocked and horrified at the agreement with the expressions that were bombing on Friday in Tel Aviv that killed 20 given by the Minister for Foreign Affairs on people and injured more than 100. In direct that occasion. My question, however, is to answer to the honourable member’s question, the Prime Minister. It follows the answer that that did represent a very serious escalation of he gave to my previous question. Isn’t it true, the cycle of violence that we have already Prime Minister, that not one state govern- been seeing for quite some time now in the ment, including the present Liberal govern- Middle East. If left unchecked, there is a real ment of South Australia and the former Lib- danger that this violence could spiral totally eral government of WA, signed up to your out of control, with a devastating effect on flawed Employee Entitlements Support hopes for an early peace in the Middle East. Scheme? Isn’t it also true that, even if they With that danger firmly in mind, the Austra- did, workers would not be guaranteed 100 lian government condemns the terrorist at- per cent of their entitlements? Isn’t it also tack, in the strongest of terms. Moreover, we true that your scheme forces taxpayers to urge both sides to step back from the brink in pick up the tab, while the big end of town get the aftermath of this terrible tragedy and to away scot-free? Isn’t it time for you to adopt accept that, for the sake of both peoples, Labor’s national employees entitlements there must be an immediate cease-fire and a scheme that will ensure that the big end of return to the negotiating table. town pay their fair share? I note that following a statement of con- Mr SPEAKER—The Leader of the Op- demnation of the attack issued by the Presi- position cannot advance an argument in his dent of the Palestinian Authority, Mr Yasser question. Arafat, on 2 June—and we welcome his statement—the Israeli government has held Mr Ross Cameron—Mr Speaker, I rise off retaliation and that, over the last two on a point of order. days, the level of violence in the Palestinian Mrs Crosio—Tell us about flood mitiga- territories has at least diminished somewhat; tion in Parramatta, Ross. and that is a welcome development. Mr SPEAKER—The member for Pros- At a meeting in Pretoria on 2 May, I em- pect! The member for Prospect might care, phasised to Mr Arafat the futility of the cycle as an occupier of this seat, to consult the of violence that has gone on since September standing orders and read standing order 55. last year. This latest example underlines the Mr Ross Cameron—Under standing or- point and demonstrates how critically im- der 144, the first question likewise offended portant it is for a genuine cease-fire to be numerous provisions of the standing orders. solidified. Only then can the negotiators This question, throughout, advanced argu- again sit down and work out peaceful solu- ment and made imputations. In particular, Mr tions to the problems between both sides. It Speaker, I ask you to ask the Leader of the is the Australian government’s view that they Opposition to withdraw the last clause, should use the recommendations of the which was not a question but just a rambling Mitchell committee report as a very sound statement of Labor policy. basis for their work. As I said at the begin- Mr SPEAKER—The member for Par- ning of my answer to the honourable mem- ramatta will resume his seat. The Leader of ber’s question, this is a shocking develop- the Opposition is aware of the fact that I in- 27130 REPRESENTATIVES Monday, 4 June 2001 tervened on the latter part of his question, will dig into the ample coffers of the state of which I felt was simply advancing an argu- New South Wales and match the money that ment. has been put on the table by the Common- Mr HOWARD—The Leader of the Op- wealth. I would think the One.Tel employees position can work himself up into a frenzy who live in New South Wales would say, and shout about the big end of town as fre- ‘The Commonwealth is doing its bit. What quently as he likes, but that will not alter the about you, Mr Carr?’ And I think the One.Tel fact that, for 13 years, he was pretty close to employees are entitled say to Mr Carr, ‘Bob, the big end of town. In that 13 years, I did your words are fine, but what about an assur- not notice a big gap between the big end of ance of support?’ town and the Hawke, Keating and Beazley Mr Beazley interjecting— governments. In fact, they were very close: Mr SPEAKER—The Leader of the Op- there was a lot of leakage between the gov- position! ernments of Hawke and Keating, of which the Leader of the Opposition was a very Mr HOWARD—The Leader of the Op- senior member. position: yak, yak, yak, interjecting the whole time. You had 13 years and you did What the Leader of the Opposition wants nothing. For 13 years you allowed people to to do is to introduce a new tax. That is what lose their entitlements with no reimburse- he wants to do. This addition to the superan- ment. It has taken the coalition government nuation guarantee charge is just another tax. to bring in a safety net scheme. The least the When the Labor Party want to do something, Labor governments of Australia and, indeed, they always resort to a new tax. It is true, of the Liberal government of South Australia course, that none of the state governments can do in the name of fairness and decency is have agreed to make a contribution. That is to match the Commonwealth scheme. If that absolutely true. State governments are al- happens in relation to One.Tel, there is no ways willing to let the Commonwealth gov- reason why the employees of that company ernment make the running, pick up the tab should not get the overwhelming bulk, if not and do their heavy lifting—whatever the every last dollar, of their entitlements. case may be. That has always been the case and it always will be the case. Of course, if Economy: Current Account Deficit you can shift the responsibility for these Mr SCHULTZ (2.16 p.m.)—My question things onto the decent section of the corpo- is addressed to the Treasurer. Would the rate sector, which still comprises the great Treasurer advise the House of the March bulk of men and women in business in the quarter current account balance released to- Australian community, all the better. day by the Australian Bureau of Statistics? I go back to basics. For 13 years, Labor Mr COSTELLO—I thank the honour- did nothing. For 13 years, men and women able member for Hume for his question. I lost their jobs, lost their entitlements and did can inform the House that the March quarter not get a farthing from the Hawke or Keating balance of payments were released today and governments. It has taken my government to they show that the current account deficit for bring in a scheme that provides a safety net. March was $4.7 billion, or 2.8 per cent of That scheme should be matched by those GDP. Excluding the June quarter of 1997, state governments that are rolling with which included the gold sales of the Reserve money—absolutely rolling with money. Bank of Australia, this is the lowest current After all the concern that Mr Carr has ex- account deficit as a share of GDP since the pressed about the One.Tel workers, the pas- March quarter of 1981. It is the best quar- sionate pleas he has made on radio to Mr terly outcome since March 1981. As we Rich and Mr Keeling to disgorge the bo- know, the current account deficit blew out, nuses, and the eloquent addresses he had starting in 1983, under 13 years of Labor made to the workers at the rally, I am sure he government. Monday, 4 June 2001 REPRESENTATIVES 27131

The fall in the current account deficit re- exporting Australia into a trade surplus and flected a $1.1 billion turnaround in the bal- the lowest current account since 1981—a ance on goods and services to a surplus of good result for Australia. $212 million for the quarter. That is, Austra- Employee Entitlements Support Scheme lia’s trade with the rest of the world in the March quarter was in surplus. The whole of Mr BEVIS (2.20 p.m.)—My question the current account deficit consists of the net without notice is to the Minister for Em- income deficit, which is payment on past ployment, Workplace Relations and Small accrued foreign debt, in particular the build- Business. I refer to your and the Prime Min- up of foreign debt under 13 years of Labor ister’s statements about the availability of the government from 1983 to 1996. The March government’s Employee Entitlements Sup- quarter showed a 0.5 per cent rise in export port Scheme to assist employees to receive volumes driven by goods exports and a 3.3 just some of their lost entitlements. Will you per cent decrease in import volumes. Two of confirm that in this year’s budget there were the factors which have contributed to the no additional funds provided for the scheme growth in Australia’s exports to a quarterly and that, as a result, funding for it ceases surplus in our trade and to our lowest current altogether at the end of the next financial account deficit since 1981 are, first, that we year? Minister, isn’t your flawed employee took tax off exports. There is now, under the entitlements scheme just a tricky little device new tax system, no tax on Australian ex- to get you past the next election? ports. That is a $3½ billion tax break to Mr ABBOTT—Let me point out to the Australian exporters, and it took a new tax shadow minister that the Howard govern- system to do it. The only member of the op- ment’s Employee Entitlements Support position that I have ever seen acknowledge Scheme is probably the most significant and that was the now shadow minister for Abo- substantial addition to Australia’s social riginal affairs—and he nods. He is the only safety net in many years. This government is member of the Labor Party that has ever ac- the first government in 100 years to actually knowledged the benefits to exporters from put in place real protection for workers’ enti- the new tax system. The Labor Party did not tlements. In 13 years, members opposite did have the wit to put in place a tax system nothing. In none of the five Labor states is which would help Australia’s exporters. there any protection for workers’ entitle- In addition to the help to exporters that ments. When Premier Beattie last week said has come from the new tax system, the ex- that there was protection under state awards, change rate, which is supercompetitive, has he was fibbing—there is none whatsoever. no doubt been of advantage to Australian And when Premier Carr waxes rhetorical exporters. At a time when the world econ- about workers’ entitlements he is not backing omy is slowing, that is of enormous and di- up his fine words with cold, hard cash. This rect advantage to Australian exporters. For government is absolutely determined to pro- example, the volume of elaborately trans- tect One.Tel workers and we are absolutely formed manufactured exports increased 2½ determined to pursue One.Tel bosses. per cent in the quarter, with elaborately Mr Bevis—Mr Speaker, I rise on a point transformed manufactured exports up of order that goes to relevance. My question through the year by 9.3 per cent. The sharp related to the budget provisions and the con- decline in the current account is expected to tinuation of the scheme. The minister has not be maintained through the year at around yet commenced to answer that question. three per cent. These are some of the lowest Mr SPEAKER—I was listening closely rates in proportion to GDP since the 1990s. to the minister’s reply and I was not aware The outcome for the March quarter is con- that he had concluded his answer. The min- sistent with the budget outlook. I congratu- ister’s answer is entirely relevant to the late those Australian exporters who, helped question. by exchange rate and tax factors, are now 27132 REPRESENTATIVES Monday, 4 June 2001

Mr ABBOTT—Let me conclude my an- Ever since Senator Conroy issued those swer by saying that the scheme is fully words, the Labor Party has been trying to run funded and provisioned in the budget. away from the hard decisions. That is what Taxation: Services and Programs he said: ‘I don’t think we can run away from the hard decisions’. If you want to be an al- Mr GEORGIOU (2.23 p.m.)—My ques- ternative government, you cannot run away tion is addressed to the Treasurer. Would the from the hard decisions. Are you going to cut Treasurer inform the House of the relation- programs or increase taxes? ship between Australia’s tax base and the government’s ability to provide services and The Leader of the Opposition, when he programs for the community? has no answers, turns around and engages in conversation. We used to use this as a tactic Mr COSTELLO—I thank the honour- when we were in opposition: turn around and able member for Kooyong for his question. I pretend you are not interested when you are can inform the House that one of the reasons being asked a question. Which is it going to why this government reformed the Austra- be? Is it going to be cutting services or in- lian taxation system is not just to help Aus- creasing taxes? tralian exporters and to cut income taxes for families but also to ensure that there is a de- Government member—Or both. cent tax base which is funding the services Mr COSTELLO—Or both? Turning his rendered by the states, because every last back, he is engaged in deep conversation at dollar of goods and services tax is paid to the moment with the shadow minister for state governments to deliver goods and education. We might have expected that he services for the people in their various states. would answer the question when he gave his Today goods and services tax funds the sal- post budget interview to Laurie Oakes on the ary of every single schoolteacher in every Nine Network. single classroom in every state education Mr Downer—That was a classic. system in this country. After it has funded that, it actually funds police salaries so we Mr COSTELLO—It was an absolute have law and order and other necessary state classic. Laurie Oakes asked him this ques- services. One of the reasons why this gov- tion: ernment put in place a new tax system was to Why, when I say will you guarantee no increase ensure there was a decent base to keep those the Medicare levy, why can’t you say, of course I social services going. will? BEAZLEY: Because I’ve already picked that up Needless to say, if there were a political on what I’ve had to say. party elected in the future that wanted to roll back that base but keep the same services, it OAKES: Okay, well I’ll take that as a guarantee of no increase in the Medicare levy. What about would have to put up some other kind of tax. company tax? It is an obvious point, and when we left the House two Thursdays ago the 14-year-old BEAZLEY: Laurie, Laurie— schoolboy from Kambah High School had they always begin their answers with ‘Lau- made that point. He had asked the Labor rie, Laurie’— Party how they could keep services and roll Mr Howard—Daryl taught them that! back the GST, and we had the immortal Mr COSTELLO—Daryl, Daryl, taught words of Senator Stephen Conroy. He said: them that— I don’t think we can run away from the fact BEAZLEY: Laurie, Laurie, the point I’m making that there will be hard decisions, and we have to here is that it’s silly for an Opposition leader, or prioritise how we are going to fund our spending anyone else, to sit down in front of somebody like initiatives. And we’re going to have to make yourself, and it’s also undignified, and I won’t be choices between: ‘Are we going to cut programs? involved in that. Are we going to increase taxes in this area?’ Here is the question: What about company tax? Monday, 4 June 2001 REPRESENTATIVES 27133

BEAZLEY: Laurie, Laurie, the point I’m making Mr Beazley interjecting— here is that it’s silly for an Opposition leader, or Mr SPEAKER—The Leader of the Op- anyone else, to sit down in front of somebody like yourself, and it’s also undignified, and I won’t be position! involved in that. Mr COSTELLO—condemn him. Now ‘Undignified’ for an alternative Prime Min- the conversation with the shadow minister ister to go through tax by tax under scrutiny for education has concluded. like that. Undignified! He is asked the ques- Mr Beazley interjecting— tion, ‘Will you guarantee no increases in Mr SPEAKER—The Leader of the Op- company tax?’ and he says that it is undigni- position is defying the chair. fied to give the answer. We know why it is undignified to give the answer, because you Mr COSTELLO—We have finally got do intend to put up company tax. He is asked his attention, Mr Speaker, because they show about indexation on petrol and it is undigni- over the forward estimates that revenue will fied to give an answer. We know why it is fall. Here is what he said: undignified to give an answer: because you ... logically that government will raise revenue want the option to raise petrol taxes. somewhere down the line. We remember what you did in the 1993 ‘Somewhere down the line’—condemned election. In the 1993 election you gave al- out of your own mouth. When you were most precisely the same commitment. It was asked about company taxes and indexation the Paul Keating commitment: ‘What I am on petrol and income taxes and in relation to promising is not to put up tax.’ That was the indirect taxes, it is no answer to say it is ‘un- promise. The way it worked out was an in- dignified’ to answer the question. It is un- crease in every wholesale sales tax, an in- dignified not to answer the question. Come crease in petrol excise, the abolition of in- clean with the Australian people and be hon- come tax cuts and an increase in the com- est with them. pany tax. The Leader of the Opposition was Honourable members interjecting— playing this game back in September 1993, Mr SPEAKER—It should not be neces- and I ask everybody in the House to go back sary for me to intervene or to rise to get si- and read the speech. He justified putting lence between questions being asked, as all taxes up after the 1993 election because he members in the chamber are well aware. was not pinned beforehand. These are the Economy: Foreign Debt words that he used. Mr CREAN (2.31 p.m.)—My question is ... The fact that the opposition does not rub the electorate’s nose in what we say are our election to the Treasurer. Do you recall telling the promises does not mean that we are breaking our parliament in 1995, ‘Australia today is stag- election promises. The opposition was incapable gering under the load of foreign debt,’ which of getting through the flack of its GST and pre- threatened to break the country? Do you re- senting in the public mind the fact that if a gov- call promising to ‘break the shackles of for- ernment says it will maintain the current level of eign debt’? Treasurer, isn’t it true that since taxation as a percentage of GDP, yet its forward then, as today’s figures show, foreign debt estimates on revenue suggest that the revenue will has risen from $190 billion to $317 billion fall, then logically that government will raise and is now almost half the nation’s income? revenue somewhere down the line. Treasurer, where is your debt truck now? The current forward estimates show revenue Mr COSTELLO—The debt to GDP ratio will decline over the forward estimates. So if today is 48.3 per cent. As I said in my earlier he is making the same promise— answer, in the March quarter we were actu- Mr Beazley interjecting— ally trading in goods and services at a sur- Mr SPEAKER—The Leader of the Op- plus. The whole of the current account defi- position! cit is in servicing foreign debt. Mr COSTELLO—then his words— Mr Tanner interjecting— 27134 REPRESENTATIVES Monday, 4 June 2001

Mr SPEAKER—The Member for Mel- Mr SPEAKER—The member for Mel- bourne! bourne is warned. Mr COSTELLO—In 1996 the debt to Mr COSTELLO—Can you imagine if GDP ratio was 38 per cent— this government had followed the example of Mr Crean—So it’s gone up its predecessors and borrowed over the last five years $80 billion. The foreign debt Mr COSTELLO—So it has gone up would be $80 billion higher today than it is. from 38 per cent to 48 per cent. In 1983, In fact, not only would it be $80 billion when the Labor Party was elected to gov- higher; it would be higher again by the net ernment, the debt to GDP ratio—remember it amount that we have reduced debt by. So the finished at 38 per cent of GDP—was 14 per government has not only not borrowed but cent. It went from 14 per cent to 38 per retired foreign debt. It has attuned the finan- cent—it tripled. cial profligacy of the : Mr McMullan interjecting— we are now trading in a surplus. I am not Mr SPEAKER—The Manager of Oppo- saying that all of our economic problems are sition Business! solved. Plainly, they are not. It will take a lot Mr COSTELLO—I love these questions, to service that build-up of foreign debt over because in nominal terms it increased 667 the last— per cent under Labor—667 per cent. Mr Crean interjecting— Mr McMullan interjecting— Mr COSTELLO—I take that interjec- Mr SPEAKER—The Manager of Oppo- tion. The one thing that would not solve any sition Business has asked his question. of Australia’s economic problems would be a trade union dominated Labor government. Mr COSTELLO—I make two points. The evidence is on the board: they took debt One is the premise of the question was again from 14 per cent to 38 per cent over 13 wrong, because he was asked whether it was years. They ran up $80 billion of Common- half the nation’s income. In fact, the servic- wealth debt and added to it. They fought ing of foreign debt as a proportion of the every step of the way to put the budget back nation’s income—that is, its export earn- into balance. They are threatening to engage ings—is today 9.4 per cent and it peaked at in unfunded promises with new tax rises. 20 per cent in September 1990. It took 20 per The one thing you can say about the Labor cent of the nation’s earnings to service our Party is they never understood and they have foreign debt. The last point I would make in not learnt a thing. relation to foreign debt is this: since this government was elected, in net terms it has Taxation: Small Business not— Mrs GASH (2.35 p.m.)—My question is Mr Crean interjecting— addressed to the Minister for Small Business. Would the minister advise the House of the Mr SPEAKER—The Deputy Leader of impact of proposed changes to Australia’s the Opposition! tax system on small business and taxpayers? Mr COSTELLO—Since this government Mr IAN MACFARLANE—I thank the was elected, in net terms it has not borrowed member for Gilmore for her question. I have a dollar. travelled to the electorate of Gilmore and Mr Crean—But was that the foreign spoken to small businesses there, and they debt? are certainly very complimentary in their Mr COSTELLO—It has not borrowed a praise of the member for Gilmore. Small dollar. In other words, the Commonwealth, business in Gilmore should, as should small far from increasing foreign debt, has been business everywhere, be congratulated for retiring foreign debt for the last five years. bedding down this new tax. What I am Mr Tanner interjecting— hearing in Gilmore and in other electorates is Monday, 4 June 2001 REPRESENTATIVES 27135 that the GST and the BAS are starting to be- leadership to abandon a policy that is bad for come less and less of an issue. government, bad for taxpayers and bad for That is not good news for the Labor Party, Australia. because they are trying to beat up a little Taxation: Anti-Avoidance Provisions storm on this. What I hear from small busi- Mr CREAN (2.39 p.m.)—My question is ness is that they want certainty. They want to to the Treasurer again, and I ask: isn’t it a know where they are going to be in 12 fact that, despite your 1999 promise to months time. What I hear from small busi- tighten the part IVA anti-avoidance provi- ness is that they are concerned about roll- sions of the tax act, you have yet to release back and about the conflicting statements any draft legislation and have done no con- they hear on roll-back. I would be concerned sultation? Isn’t your go-slow on this impor- as well if I were in small business. First of tant crackdown on big-money tax avoidance all, we had the shadow minister for small because you have one rule for the top end of business, the member for Hunter, talking on town and another for struggling families and roll-back earlier this year, on 23 March. small businesses? When asked, ‘What will roll-back specifi- cally mean for small business?’ he re- Mr COSTELLO—No. I think it was a sponded: coalition government that introduced part IVA— Well, roll-back can come with a cost and without a cost. Not all roll-back is necessarily expensive Mr Howard—Yes, that is right. but we think still some changes can be made ... Mr COSTELLO—I was not here at the When he was pulled into order on this, he time, but as I recall—and the Prime Minister then was asked by Chris Lewis, who is a is nodding—it was a coalition that intro- very agreeable bloke, on the Valley Life pro- duced part IVA. As I recall it, the Labor gram on 2 April: Party never introduced anything. I take the Roll-back can come at a cost or without a cost— silence from the opposition as a confirma- is this true? tion. The member for Hunter said: This government has probably been much tougher than any of its predecessor govern- Roll-back for small business can come at a cost or without a cost for government. I was making a ments in clamping down on obvious tax point that we’ve a few ideas up our sleeve, some avoidances—particularly the R&D syndi- of which will come at a cost to government. cates, which were probably the largest way The member for Hunter even repeated that of avoiding paying tax. They were closely claim in this House: followed by infrastructure borrowings. Not only did we get no help from the Labor Party ... roll-back may come at a cost to government, in closing them down but the Labor Party which, of course, is obvious ... had actually opened them up. It is obvious: roll-back will come at a cost to Mr Crean—Oh, come on. government. Then last week he tried to ex- cuse himself from these comments by say- Mr COSTELLO—The infrastructure ing—this time in Rockhampton; he certainly borrowings, as I recall, were marketed by gets around on radio—this: merchant banks— The government likes to imply that roll-back Mr Crean—Answer the question. means a further cost to government; that is not the Mr COSTELLO—and you could not case. even get into the infrastructure borrowing But he said it in this House. The only ele- scheme until you had $500,000 to invest. ment of truth in what the member for Hunter Mr Crean—Where’s the draft legislation? keeps saying is that roll-back will come at a cost to small business and it will come at a Mr SPEAKER—The Deputy Leader of cost to taxpayers. It is time the member for the Opposition is warned. Hunter, in his fits of candour, convinced his 27136 REPRESENTATIVES Monday, 4 June 2001

Mr COSTELLO—And all of the tables situation where we are 500 GPs and 700 to worked off a $500,000 amount. The Labor 800 specialists short in regional Australia. Party introduced it; we closed it down. We Indeed, an illustration of this is my own did it on R&D syndicates. We have an envi- home town, Gunnedah, with a population in able record. the town and district of 13,000 or 14,000 and Mr Crean—Mr Speaker, I rise on a point a waiting list of two to three months to see a of order. GP for a non-urgent matter. Australians would not normally accept that. It is not as if Mr SPEAKER—Has the Treasurer con- it is new: that has been the situation for two cluded his answer? or three years. Mr COSTELLO—Yes. In response in large part to an excellent Mr SPEAKER—The Treasurer has con- package put forward by the Minister for cluded his answer. Health and Aged Care after he had visited Mr Crean—Without an answer. many rural areas with me, we put together Mr SPEAKER—I remind the Deputy the More Doctors, Better Services package Leader of the Opposition of his status. last year—a $562 million commitment, a real commitment, involving such things as the Rural and Regional Australia: Health John Flynn scholarships, the Rural Retention Initiatives Program for GPs, the rural women’s GP Mrs DE-ANNE KELLY (2.42 p.m.)—My service and the medical rural bonded schol- question is addressed to the Deputy Prime arships. But this year we have added a very Minister and Minister for Transport and Re- important element which takes it to virtually gional Services. Would the Deputy Prime $700 million as a package, and that is nurses Minister advise the House of how federal for rural and regional areas. In this year’s government initiatives will help to provide budget there is around $104 million going people living in rural, regional and remote towards enabling general practices in rural communities, such as those in Dawson, with Australia to employ additional practice access to improved health services? nurses and another $13 million for 100 new Mr ANDERSON—I thank the honour- rural nursing scholarships worth around $10 able member for her question. I know that million. That will see us supporting students she has a real interest in this matter and has of nursing in much the same way as we now been particularly delighted with the recently do doctors. We will also be investing around announced $1½ million funding for a new $43 million in programs using nurses to re- Aboriginal and Torres Strait Islander medical duce the workload on rural GPs, which will centre in Mackay. of course assist us in not only recruiting but Nothing is more important than access to retaining more rural GPs. health services for all Australians. Wherever We have heard nothing from the ALP in you work, wherever you live, wherever you this area—about the most appalling policy seek to be productive in this country, you failure on their part when they were in gov- need to know that you can have fair and rea- ernment. We have heard nothing from them sonable access to medical services. Of at all. The best we can hope for—given that course, we have had a real problem in Aus- we heard nothing from the member for Dick- tralia. After many, many years of neglect and son on regional policies when she was re- poor planning, we reached a chronic shortage sponsible for that area and, when the mem- of GPs and specialists in regional Australia, ber for Batman appeared, he found there was essentially because we had not been training nothing ready; and we have seen nothing enough rural and regional students to prac- from him either—is that they will go and tise medical services in rural areas. Medical have a yarn to their expert on rural and re- students from the country are about nine gional policy, Bill Kelty. Remember Bill? He times more likely to practise in the country was the bloke who travelled around the bush than are urban students. We now have the Monday, 4 June 2001 REPRESENTATIVES 27137 and recommended what they ought to do for lined and that in fact you intervened person- rural and regional policy. ally to ensure the proposal got up? Minister, After 13 years of real decline in rural why did you give special treatment to your health, as doctors were not trained up for ministerial colleague when people right rural and regional Australia, we have seen no across the country have to follow your offi- commitment—none—from the ALP to a re- cial processes? gional health policy. All we have heard about Honourable members interjecting— are last week some health initiatives worth Mr SPEAKER—The Deputy Prime around $148 million. What we have done for Minister has the call. rural and regional Australia is worth many, many times that alone. No wonder we have Mr Beazley interjecting— had the National Rural Health Alliance ap- Mr SPEAKER—The Leader of the Op- plauding the government, saying that these position chooses to ignore the chair, no mat- commitments build on the major boost to ter what comment the chair has made. rural general practice in the 2000 budget. We Mr ANDERSON—I thank the Leader of have had Dr Julie Thompson, the Chair of the Opposition for his question. I say at the the Australian Divisions of General Practice, outset that the government does not apolo- saying that in the short term the funding set gise for creating a new structural adjustment aside for upskilling nurses who are willing to program which, in the first instance, will be take on additional roles and responsibilities applied to the Wide Bay-Burnett region. If will have a positive effect but in the longer the citycentric members of the party opposite term the scholarships will help. But, in a ever got out of the cities, they would know way, it is all said by the mother of a second that this particular area is suffering from very year student at the University of Sydney who high levels of unemployment and has one of said: the lowest per capita income levels in this The Australian rural Australia medical under- country. When Labor left— graduate scholarship has really helped. Our son is Opposition members interjecting— enjoying the city but looking forward to returning to the country, and can’t wait to be a country Mr ANDERSON—Mr Speaker, this is doctor. the bit they do not want to hear. When Labor Wide Bay Electorate: Regional Solutions left the Wide Bay-Burnett area in 1996 with Program an unemployment rate of nearly 19 per cent they had done nothing but make the problem Mr BEAZLEY (2.47 p.m.)—My question worse—that is all they had done. The fact is is also to the Deputy Prime Minister in his that we have made some progress—a very capacity as minister for regional affairs. I ask good local member helps a great deal. Un- whether you recall telling parliament last employment is down to 14 per cent, which is month that the process for considering appli- a vast improvement on what it was when cations for Regional Solutions funding is as Labor were in power. But that is still too follows: high, and local council and community or- They go to what could only be described as a ganisations have been very active in trying to panel of highly reputable people, headed by Pro- move the region forward. They have come to fessor John Chudleigh. They are all assessed on government as a group seeking structural their merits before they go to the ministerial assistance and have been very active in council. The process accords with best practices pulling together ideas and potential. and was checked off in consultation with the Auditor-General. Mr Zahra interjecting— Minister, isn’t it true that nearly one-third of Mr SPEAKER—The member for the $12.6 million Regional Solutions pro- McMillan! gram will be allocated to just one region— Mr ANDERSON—They have put to- Wide Bay? Isn’t it also true that this proposal gether individual projects for the Regional did not follow the official process you out- Solutions program, some 20 of them, and 27138 REPRESENTATIVES Monday, 4 June 2001 they have been working hard in their local why we have been able to keep the scheme communities. But this is a region that clearly up-to-date by regular reviewing it. needs some specific help, and it is for this I am aware, though, of alternate com- reason that the government found a way of ments, both in a press release of last week providing $4 million in funding— and on Sunday Sunrise. In a press release last Mr Zahra interjecting— week the member for Jagajaga said that there Mr SPEAKER—The member for had been a huge blow-out in pharmaceutical McMillan is warned! spending. She should know. In the last five years, between 1996 and 2001, the PBS has Mr ANDERSON—provided through a increased on average 13 per cent a year. current year budgetary underspend on the Regional Solutions program for a structural Ms Macklin—Last year it was 22. adjustment program in this very needy area. Dr WOOLDRIDGE—It is true there was So let me just pose these questions: does a big increase last year, but the United States the Labor Party deny that the Wide Bay- had a similar increase, of around 19 per cent. Burnett area has high unemployment? Does The Labor Party was 4½ per cent higher than the Labor Party deny that the region is suf- us over four years, because of one disastrous fering very great disadvantage? Does Labor year of spending under Labor. support this initiative? No, they do not, be- Mr Sidebottom—I think you had better cause they do not understand the problem. get down to , Minister. They’re They do not go out to understand it; they do waiting for you. not go out to find solutions. All they do is Mr SPEAKER—The member for Brad- come into this place and seek to object to don is warned! every positive intiative we try to put into place to make a difference to battling Aus- Dr WOOLDRIDGE—This was 1992-93, tralians left behind after 13 years of Labor. when in fact the member for Jagajaga was advising Brian Howe. The increase in the Pharmaceutical Benefits Scheme PBS was a record 23.32 per cent. So the Dr WASHER (2.52 p.m.)—My question member for Jagajaga on her watch managed is addressed to the Minister for Health and to get a 23.32 per cent increase one year and Aged Care. Would the minister update the a 17.5 per cent increase for Labor over four House on how the is years, compared to a 13 per cent increase for continuing to ensure that all Australians have the coalition. On Sunday Sunrise the member access to the pharmaceuticals that they need? for Jagajaga made five factually inaccurate Is the minister aware of recent comments statements relating to the PBS, and that is the concerning this important part of Australia’s only one that I am attempting to look at. public health care system? Firstly, she claimed the government did not Mr Sidebottom—Are you going to take the advice of the PBAC on Celebrex. apologise to Tasmanians, Minister? She is simply wrong: the PBAC has no legal right or authority to advise on anything other Mr SPEAKER—The member for Brad- than listing, and we took their advice on don! listing. Secondly, she claimed there was no Dr WOOLDRIDGE—I thank the mem- price-volume arrangement for Celebrex. If ber for Moore for his question and his inter- she had bothered to look through the nearly est in this area. The Howard government is one metre of documents we gave the Senate absolutely committed to providing pharma- on the return to order on the relation of Cele- ceuticals to Australians and making sure that brex and Vioxx, she would see several refer- they are as up-to-date, clinically relevant and ences to the existence of a price-volume cost effective as possible. That is why we agreement. have been able to find the extra resources for Thirdly, she claimed that Labor will make the Pharmaceutical Benefits Scheme and sure the PBAC is an independent body. I Monday, 4 June 2001 REPRESENTATIVES 27139 must say, given recent media attention to the monwealth Seniors Health Card’, there is in fact that there was an undeclared relationship fact detailed allowance of it, under both the between a previous PBAC member and the Department of Health and Aged Care and the pharmaceutical industry, perhaps our new Department of Family and Community committee is even more independent. It is Services. I am happy to table the appropriate very interesting that we hear her talking part out of the budget measures. I am also about independence of the PBAC when I happy to throw in a tutorial on budget pa- have a letter on file from 2 July 1998 from pers, if the honourable member would like it. the member for Jagajaga asking that I not Nursing Homes: Yagoona observe normal process and have Aricept on the PBS on the basis of a Herald Sun article. Ms MACKLIN (2.57 p.m.)—Have a look As much as I respect that newspaper, I do not in the portfolio budget statement— think an article in the Herald Sun is adequate Mr SPEAKER—The member for Jaga- reason to put a drug on the PBS. I table that jaga will come to her question or resume her letter for the advice of honourable members. seat. Further, talking about Naltrexone, she Ms MACKLIN—My question is to the says we should ask the advice of the PBAC Minister for Aged Care. Minister, why did as to whether Naltrexone should be on or off. you overturn the recommendation of the In fact, we have done that and they rejected Aged Care Standards and Accreditation it. Secondly, we had the Leader of the Oppo- Agency’s assessment team to revoke the ac- sition on 3AW on 10 July last year saying: creditation of the Yagoona nursing home in ... I also support Naltrexone on the PBS ... Sydney? Doesn’t the agency’s report find the nursing homes failed all four care standards, So much for an independent PBS! He is go- with two standards rated critical? Haven’t ing to whack it on because there is a bit of you breached your own accreditation guide- political pressure! lines, which say that nursing homes must Mr Beazley interjecting— lose accreditation if they have a critical rat- Dr WOOLDRIDGE—You are a hypo- ing on one or more standards? Didn’t your crite when you talk. You are an absolute standards agency find that residents suffered hypocrite when you want to talk about an temperatures of 48 degrees in summer, cold independent PBAC. showers in winter, inadequate clinical care Mr SPEAKER—The minister will with- and high rates of falls and that they risk po- draw that reference to the Leader of the Op- tential disaster in the event of a fire? Why position. didn’t you enforce proper standards of care in the Yagoona nursing home? Dr WOOLDRIDGE—Withdraw which reference? Mrs BRONWYN BISHOP—I thank the member for Jagajaga for her question, be- Mr SPEAKER—You will withdraw the cause it does give me the opportunity to ex- reference you made to the Leader of the Op- plain to her how the independent system of position in your answer. the Aged Care Standards and Accreditation Dr WOOLDRIDGE—I withdraw the Agency works. If she likes, I could perhaps reference. I just add that people can draw give her a briefing, or arrange for the de- their own inference about someone who says partment to do so, so she understands. Basi- one thing and does another thing. cally, the home concerned was in fact ac- Finally, she claimed that the budget credited as part of the support visits which documents did not contain any allowance for continue to take place after accreditation—so extended eligibility of the seniors health that you may not reach accreditation stan- card. This came as news to me, because on dard and think you will not be visited again page 109 of Budget Paper No. 2, down the for another three years. The fact of the matter bottom, under ‘Acknowledging Older Aus- is there is a continuing number of support tralians—Extended Eligibility for the Com- visits and spot checks, both of which oc- 27140 REPRESENTATIVES Monday, 4 June 2001 curred in this home. The agency then con- opportunity for young Australians. In the ducted as a result of that support visit a re- recent budget, government schools get the view audit. The review audit found that there lion’s share of the new measures for schools were unsatisfactory ratings on a number of from the Howard government’s most recent the standards. It has required that that home budget. The government schools will get an be brought up to acceptable standard. All of estimated $238 million extra, or 87 per cent the residents and their families have been of the funding for specific schools measures written to, and indeed the department is now contained in this year’s budget. considering what sanctions will be applied to Government schools have consistently that home. But the important thing is that it been the beneficiaries of the coalition’s continues to be monitored by both the de- sound economic management. The Leader of partment and the agency. the Opposition may like to listen to this, be- Whether or not accreditation is down- cause he seems to think that the $105 million graded has nothing to do with a ministerial he is going to rip off his arbitrary hit list of judgment. It is written into the legislation schools is somehow or other going to be of that the agency must remain independent enormous help to government schools. Let us when it makes its decision. The agency takes have a look at the record of this government. into consideration the recommendation of the Funding for government schools over the assessor’s report. It also takes into account five years of this government since 1996 has other items that it considers relevant, such as increased by 42 per cent. In the coming year undertakings of the home to remedy the we will deliver to public education in this problems in that home. It makes a decision in country $669 million more than you did the interests of the residents as a whole. It is when you were in office. very important that the agency makes that This is the sixth federal budget in a row judgment. I might add that the finding was when funding for schools has increased. Of that there was no serious risk. However, both course, it is not merely the funding commit- the department and the agency will continue ment of this government but it is the fact that to monitor this home. I report that there were we have put in place national literacy and two spot checks over the weekend. numeracy standards—which the Leader of Ms Macklin—Mr Speaker, I seek leave to the Opposition will doubtless dismantle un- table a page from the government’s accredi- der union pressure. It is the fact that we have tation guidelines, which clearly indicate that put into practice school to work programs a critical rating in one or more standards which are raising retention rates in many rules out accreditation. government schools, that show the sincerity Leave not granted. and depth of our commitment to public edu- cation. Education: Funding for Government Schools But there is a Labor record on this, be- cause we now have budgets coming down Mr BILLSON (3.01 p.m.)—My question for next year from the state Labor govern- is addressed to the Minister for Education, ments. Let us have a look at what those Training and Youth Affairs. Would the min- budgets have delivered. The New South ister advise of assistance to government Wales state budget—which they tried to schools flowing from the Commonwealth claim as an education budget—delivered an budget? Would he also advise how this sup- increase in funding to public education in port complements funding to government New South Wales of 2.5 per cent over this schools from other sources? year’s estimated outcome. The Howard gov- Dr KEMP—I thank the member for ernment will deliver to public schools in Dunkley for his question. I know his great New South Wales next year an increase of interest in delivering a quality education to 5.3 per cent—more than double the increase every young person in his electorate. The from the Labor Party in New South Wales. coalition is committed to equal educational Monday, 4 June 2001 REPRESENTATIVES 27141

And it is not just the New South Wales Labor tion Business, I indicate that I believe it is Party. We now have the Victorian budget, entirely proper for question time to be an which I have to note was described by the opportunity for members to ask questions of President of the Victorian Branch of the ministers, but what I cannot allow to stand is AEU, Mary Bluett, as the ‘cruellest budget in a question that contains a specific imputation a decade’ for public education. This budget or inference. Had the member for Grayndler managed an increase of 1.8 per cent in so framed his question that he had suggested funding for government schools, while the that the minister’s decision may have been Howard government will be increasing its influenced by some other external factor, I funding for state schools in Victoria next would, I would have thought, consistent with year by 5.4 per cent—well over double the what previous Speakers have ruled, allowed increase in the funding for public education. the question to stand. Let us have no more of this empty rhetoric Mr Beazley—Mr Speaker, I raise a point from the Leader of the Opposition. He deliv- of order going to the question of whether or ers nothing but rhetoric. He delivers nothing not it is within standing orders. It is very dif- but cuts to some schools, while this govern- ficult to see what is wrong with this: ment is going about its business of making Minister, can you confirm that the owner of Ya- sure that there is improved educational op- goona Nursing Home ... has contributed $14,000 portunity for every young Australian. to the Liberal Party in the last five years? Nursing Homes: Yagoona What is wrong with that? Mr ALBANESE (3.05 p.m.)—My ques- Is that why you have exempted the Yagoona tion is addressed to the Minister for Aged Nursing Home ... from ... standards? Care. Minister, can you confirm that the It is a perfectly— owner of the Yagoona Nursing Home, Mrs Mr SPEAKER—The Leader of the Op- Millie Phillips, has contributed $14,000 to position cannot repeat the question. He will the Liberal Party? Is that why you have ex- resume his seat. empted the Yagoona Nursing Home, owned by Mrs Phillips, from the government’s own Mr Albanese—On a point of order, Mr accreditation standards? Why has this pro- Speaker: I was not given the opportunity to vider— complete my question. Had I been, the final part of the question is: why has this provider Mr SPEAKER—The member for been given special— Grayndler will resume his seat. I have inter- rupted the member for Grayndler’s question Mr SPEAKER—The member for because, as the member for Grayndler is Grayndler will resume his seat. The imputa- aware, questions cannot contain inferences tion in the question was, as anyone could and imputations, and the inference and im- tell, that the person responsible for the Ya- putation in the member’s question have ruled goona Nursing Home had in some way pur- it out of order. chased accreditation. Mr McMullan—Mr Speaker, I rise in re- Mr McMullan—Mr Speaker, the key sponse to that ruling. Are you saying that it paragraph, which is the one to which I as- is not possible to question a minister as to (a) sume you are referring, is the one which whether they are aware of a donation to the says, ‘Is that why you have exempted ...’ political party of which they are a member, That is questioning the— and (b) whether that donation affected their Government members interjecting— performance? Are you saying that that fun- Mr SPEAKER—The Manager of Oppo- damental question of accountability—that is sition Business has the call. The question he exactly what it was—cannot be asked in this has put thus far is entirely in order and he place? deserves to be heard. Mr SPEAKER—In response to the comment made by the Manager of Opposi- 27142 REPRESENTATIVES Monday, 4 June 2001

Mr McMullan—That is quite clearly more often an opportunity used by the gov- questioning whether the minister has be- ernment to have itself asked dorothy dixers haved properly. It does not suggest that the to abuse the opposition, but every now and person concerned has behaved improperly. then suspicious circumstances occur and They are entitled to donate or not as they questions start to be asked. When we were in choose. What ministers are not entitled to do government, we had to put up with repeated is to be influenced by those donations. That accusations, be they about piggeries or all is our allegation, and that is what— sorts of matters related to business interests Mr SPEAKER—The Manager of Oppo- and political donations associated allegedly sition Business will resume his seat. with subsequent policies, and not once did the then Speaker rule those out of order. Mr Reith—Mr Speaker, I put it to you They were asked repeatedly, yet the govern- that your response to the question is entirely ment of the day did not take umbrage, be- in accordance with the standing orders, in cause they assumed it was part of the normal particular standing order 153, which states: accountability processes. Let us go through Questions shall not be asked which reflect on or this question. Apparently, under this ruling, are critical of the character or conduct of those it is now not possible to ask a question like persons whose conduct may only be challenged this: on a substantive motion, and notice must be given of questions critical of the character or conduct of Can you confirm that the owner of the Yagoona other persons. nursing home, Mrs Millie Phillips, has contrib- uted $14,000 to the Liberal Party? For the benefit of members on the other side, your advice to the honourable member, Mr It has been known from time to time for Speaker, is also supported by House of Rep- Speakers to rule out parts of questions and to resentatives Practice, on page 515, which accept others. But, if you rule that out, there simply amplifies. It was quite clear what the cannot ever be one question asked in this imputation was in the question. On that ba- House about a political donation to any min- sis, I believe it would be appropriate to invite ister of state—not ever. How on earth is ac- a question from this side of the House. countability going to function in this cham- ber if, on a question which requires constant Mr Beazley—On the point of order, Mr vigilance and on which there are always high Speaker: it will become virtually impossible levels of public suspicion about the relation- to ask questions of any seriousness in order ship between political donations and deci- to get accountability in this place if you rule sions of government, you cannot in this place out this question. Even if you ruled other stand up and ask a simple question like that sections of the question out of order, which for verification? How can a government ever you should not, what on earth is wrong with be held accountable in this place? a question which says: Then the question goes on. Remember Minister, can you confirm that the owner of the Yagoona nursing home— that in answer to the previous question the minister conceded that exemptions were Mr SPEAKER—The Leader of the Op- given in relation to this nursing home. She position cannot repeat the question. I have said they had nothing to do with her and had ruled the question out of order and you will everything to do with the accreditation resume your seat. authority. That is what she said. Neverthe- DISSENT FROM RULING less, she conceded that exemptions were Mr BEAZLEY (Brand—Leader of the given. She did not deny the fact that on her Opposition) (3.12 p.m.)—I move: own— That the Speaker’s ruling be dissented from. Mr Reith—Mr Speaker, I raise a point of Question time is the one time when the peo- order. ple of Australia have an opportunity to hold Mr Martin Ferguson interjecting— accountable the government of the day. It is Monday, 4 June 2001 REPRESENTATIVES 27143

Mr SPEAKER—The member for Bat- of the Opposition out of order. The Leader of man is warned! the Opposition has the call. He obviously has Mr Reith—The Leader of the Opposition an obligation to abide by the standing orders, wants to broaden his remarks beyond the and I will indicate to him if he does not. motion which is before the chamber. It has Mr BEAZLEY—I will get back to the long been required of those moving a motion point that I was making from the previous of dissent to confine their remarks to the question: the previous question had, of matter immediately before the chair, namely, course, gone to whether the standards of the whether this question offends the standing accreditation authority have been breached. orders. I appreciate that, given that the What we got from the minister on that occa- precedents on this are absolutely black and sion was, effectively, the answer, ‘Yes, but white, he finds himself looking beyond the not by me’—they were breached by a de- issue to fill in his time. Mr Speaker, I put it partmental agency to assist, she alleges, the to you that there is a very strict require- nursing home to meet its particular criteria. ment—there always has been—that he has to In order to establish why this is a relevant stick specifically to the motion which he has question to ask and why it is legitimate under moved, and he should therefore be ruled out standing orders, it is necessary for us to es- of order when he strays beyond that motion. tablish why this should be pursued as a le- Mr BEAZLEY—On the point of order, gitimate matter of concern in this place. Un- Mr Speaker, whether your ruling is correct der those guidelines, those rules that we depends upon the context in which a par- sought to table, one thing is made amply ticular question is asked—always. This hap- clear: if you breach one of those rules in a pens to follow a line of questioning, which is critical way, you lose your accreditation. why we proceed from an argument about This particular nursing home breached four, how one particular question was answered two of which were critical—and therefore into the asking of the next question. It is en- we seek an explanation. tirely within order that I should be able to Mr Reith—Mr Speaker, I raise a point of draw a connection between the two questions order. The question of the application of asked in establishing the fact that this par- rules within the minister’s department is ticular question was legitimate within the simply not within the purview of the motion framework of our standing orders. which has been moved by the Leader of the Mr Reith—Mr Speaker— Opposition. It is plainly obvious that the only arguments he can put are why the question Opposition members interjecting— should be allowed under the standing orders. Mr SPEAKER—The member for Pros- That is the only matter he can address him- pect is warned! self to and I ask, on a point of order, that he Mr Reith—On the point of order, Mr be required to stick to the motion, as has Speaker, I put it to you that it is not open to previously always been the case, in accor- the Leader of the Opposition to canvass the dance with practice and convention in the allegations he wants to make against the chamber. minister within the confines of this particular Mr SPEAKER—The Leader of the Op- motion. As I put to you earlier, there is no position understands the constraints of the fancy language to get him out of the difficul- debate. He must indicate where in some way ties he is now in, namely, the fact that he has my ruling has made it difficult for a question moved a motion of dissent, and he should to be asked. stick to the motion of dissent in the argu- Mr BEAZLEY—Exactly. What we es- ments that he puts. tablished in the previous question was that Mr SPEAKER—The Leader of the there had been clearly a breach of the gov- House raised a point of order. I have not as ernment standards one way or another, who- yet ruled any comments made by the Leader ever was responsible for it. I do not think 27144 REPRESENTATIVES Monday, 4 June 2001 there is any doubt about that. In this case, few days ago and one that was evidently not there was an excuse offered as to why that today. The reason why we ask these ques- should occur. We proceeded with a question tions and why it is necessary for us to be able then subsequent to that. The first part of the to draw linkages between the two is that question was a purely factual request for in- some of the most vulnerable people in this formation on whether or not the minister community are residents of that nursing knew that the person concerned was a home. Were you to sit down and read prominent contributor to the Liberal Party. If through— you rule that sort of question out, we can all Mr Reith—I raise a point of order, Mr go home and not go with the bother of ques- Speaker. No-one disputes the importance of tion time. having proper standards in nursing homes. Having established that something hap- The issue before the chair is a quite specific pened to allow a nursing home which had issue. In this particular case, Mr Speaker, a been in breach of two guidelines critically person was named in the question; you acted and two substantially, when only one breach in accordance with the standing orders, in is permitted, when only one breach is enough conformity with longstanding practice—a to see you out—a pretty unusual set of cir- difference that the Leader of the Opposition cumstances, you would concede, Mr has failed to note with previous questions in Speaker—we went on to ask a question as to regard to HIH. On that basis, the fact is— whether or not this unusual set of circum- Mr SPEAKER—The Leader of the stances, that exemption, was a product of the House will come to his point of order. decision by this particular individual to make contributions to the Liberal Party, and to ask Mr Reith—My point of order is that he is whether or not that was the reason for the required by the standing orders to stick to the minister’s decision. I should point out to you, issue; he is clearly, in the face of a lack of Mr Speaker, that only a few days ago, on 24 substantive points, moving beyond the mo- May, you permitted, quite rightly, a question tion. along these lines. It was this question: Mr BEAZLEY—Mr Speaker, I am My question is also to the Minister for Financial sticking to the point here. If those sorts of Services and Regulation. Minister, why have you personal allegations in that way were out of not asked the general insurance industry to make order, the endless epithets that you throw at any contribution to the HIH bailout from their me and members of our frontbench on in- $10.9 billion asset reserves, instead of leaving all dustrial relations policy, on budget policy of the burden of the collapse to fall on taxpayers and on our relationship with the union and HIH policyholders? Is your reluctance to seek movement would be out automatically. an industry contribution related to the insurance industry’s generous political donations to the Lib- Mr SPEAKER—The Leader of the Op- eral Party, which include $682,000 from HIH position understands the obligation to come itself? to the matter before the chair. The chair has What is the difference in principle between not recently intervened on industrial relations that question, which sought to establish a matters. The Leader of the Opposition has linkage between lackadaisical standards in the call. relation to the supervision of the insurance Mr BEAZLEY—Mr Speaker, I would industry and a massive political contribution submit to you that, invariably, when you are to the Liberal Party, and one about a quite discussing a matter of a dissent from the extraordinary set of breaches of the govern- Speaker’s ruling on the question of whether ment’s own guidelines in relation to nursing or not a particular question was within homes and a contribution to the Liberal Party standing orders, you will draw examples from the nursing home’s owner? What is the from past practice. There is no other way to difference in principle between those two— argue. You argue from precedent. one a matter that was accepted by you only a Monday, 4 June 2001 REPRESENTATIVES 27145

Mr SPEAKER—I would remind the between the $682,000 given by HIH, the Leader of the Opposition that at no stage corporate entity, to the Liberal Party, referred have I intervened in any speech. I invite him to in a question that you permitted, and a now to come back to the matter before the question about a person who is the owner of chair. a nursing home and the donation by them to Mr BEAZLEY—I am not blaming you, the Liberal Party. The argument, as appar- Mr Speaker; I am blaming the fellow who ently we shall hear from the Leader of the keeps interjecting. The reason why it is rea- House, is that there is a distinction between sonable for a question in this place to be the two. There is no distinction between the asked to establish a linkage between the al- two when the question at heart involves not ready conceded unusual treatment of this the person concerned but the actions of the particular nursing home and the donation particular minister. That is what draws a dis- goes to why we have accountability in this tinction between the two. We are attempting place and why you in the past have rightly to get at the basis of what the minister has permitted these sorts of questions. In this been doing in administering—or maladmin- place, apart from all our other duties, one of istering— her portfolio and the motives and our duties is to protect the most vulnerable concerns that influenced her in the decisions people in our community. A 96-page report that she took or chose not to take. has gone into this nursing home. There has to That is the very essence of accountability be an explanation as to why it is still open. It in this place. We have a serious situation in is rated as unacceptable in 20 of the 44 care relation to this nursing home, a serious outcomes—insufficient continence aids, no situation—hot water routinely runs out, resi- airconditioning, hot water routinely runs dents not getting enough food, high injury out— rates among residents. We want to get an Mr SPEAKER—The Leader of the Op- answer to that. Why is that occurring? It is position must come to the point at which— perfectly open to the minister to answer that question and I saw that she was up there Mr BEAZLEY—The point is this, Mr begging the Prime Minister to be allowed to Speaker— answer it. The Prime Minister was shutting Mr SPEAKER—The Leader of the Op- her up and saying, ‘No, don’t you get up on position must, as he knows, come to the your scrapers and answer it. Don’t you get point of the matter before the chair, which is up and help the Speaker out of his difficulty. dissent from the Speaker’s ruling. It seems to Don’t you stand up and give an answer to have very little to do with incontinence aids, these things.’ if I may so observe. Mr SPEAKER—The Leader of the Op- Mr BEAZLEY—It is to do with dissent position knows— from the Speaker’s ruling, because this is a Mr Reith—I raise a point of order, Mr question that it is competent to ask within the Speaker. As I recall the event, you acted of framework of standing orders. That is the your own accord. It is inappropriate and ir- point. Part of establishing that competence to relevant for the Leader of the Opposition to ask that question goes to the character of be making baseless claims such as that. It is what has preceded it. This is not a question quite unreasonable, and he should again be that came to you cold. This is not a question required to stick to the question. that came to you without precedent in terms of a relationship between political donations Mr SPEAKER—The Leader of the Op- and a responsive action by the minister. This position will come back to the matter before question did not go to the behaviour of any the chair, which is the dissent from the person outside this chamber. It went to the Speaker’s ruling. behaviour of the minister and what influ- Mr BEAZLEY—The final part of the enced the minister. That is what it went to. question that you were asked, Mr Speaker, You are trying to draw a bogus distinction was: why has this provider been given spe- 27146 REPRESENTATIVES Monday, 4 June 2001 cial treatment and her residents forced to order, and I will refer you to the respected suffer substandard care? There is no argu- authorities on the issue of which questions ment about her residents being forced to suf- are in order and which are not. From the fer substandard care. That has been conceded government’s point of view, the opposition by the minister. It has been conceded by the are entitled to ask absolutely any question on minister in the answer to the question previ- any subject matter that they want to, pro- ously asked. She has an argument about it, an vided it is within the standing orders. It is as explanation— simple as that. Mr SPEAKER—The Leader of the Op- On this particular occasion we have had position will come to the point that is before question time effectively brought to a halt the chair, which is the dissent from the because the opposition asked a question and Speaker’s ruling. you, Mr Speaker—not the government— Mr BEAZLEY—The point is this, Mr raised a point of order. I did not rise on a Speaker: you ruled this out of order, and that point of order, and there were no points of is why I am going to the substance of the order from the member for Parramatta or the question and asking why, in any common- member for Hughes or the member for sense terms, that should be regarded as out of Curtin—all of whom, I must say, know the order within the meaning of standing orders. standing orders a lot better than anybody on Why has this provider been given special the other side does. No-one on this side of treatment? There is no argument that there the House raised a point of order, because it has been special treatment given to this par- was as plain as the nose on your face that the ticular nursing home: it has been conceded, question was out of order. Whatever might effectively, by the minister herself that there be said, the fact of the matter is that you, Mr has been special treatment. She has conceded Speaker, know a question which is out of that it is massively in breach of the guide- order when you hear it, and you heard one lines—massively in breach—and that resi- which was an open and shut case. The ques- dents have been forced to suffer substandard tion was clearly out of order, and so what did care. It has been conceded by the minister. you do? You did exactly what any other What we are attempting to do here is to es- Speaker would have done and has done when tablish why. We ask the sort of questions that sitting in that chair—whether Liberal, Labor oppositions since time immemorial have or Callithumpian. If you go back, you will asked in the parliaments of the Common- find that on each and every occasion when wealth, the parliaments in the Westminster there has been a black-and-white case where system: is there a linkage between the dona- the question was out of order, the Speaker tion and the action? If you cannot ask a would say so. Mr Speaker, we would expect question in a place like this chamber— nothing less from you. where, I might say, the government flings Mr Speaker, you do know the standing or- such accusations around repeatedly, ders. You obviously know the standing or- unctuously, massively, at this side of the ders a lot more than does a former Leader of House—then there is no accountability here. the House, the now Leader of the Opposi- That is why your ruling must be dissented tion, who clearly has not for a long time from, Mr Speaker. bothered to read the standing orders, let Mr McMullan—I second the motion and alone House of Representatives Practice. He reserve my right to speak. gave the game away: when the Leader of the Opposition rose to speak to his motion, he Mr REITH (Flinders—Leader of the said, ‘When we were the government, the House) (3.32 p.m.)—Mr Speaker, the gov- opposition asked us shocking questions ernment completely rejects this motion and about Paul’s pigs and you name it: all these will certainly not be supporting it. The rea- rotten questions you used to ask us.’ Well, son we do so is that the question that was the fact of the matter is that an opposition asked by the opposition was clearly out of that knows its standing orders is entitled to Monday, 4 June 2001 REPRESENTATIVES 27147 ask any question. All you have to do is be Mrs Crosio—You didn’t take a point of smart enough to know the standing orders order. and to ask questions in accordance with the Mr REITH—I did not need to take a standing orders. point of order because I have every confi- There is only one issue here today which dence that the Speaker could see a question has been brought up by the Leader of the which was clearly out of order. It is incredi- Opposition and that is whether or not this ble that the brains trust on the other side particular question falls within the standing could not see a question that was obviously orders. It plainly does. The Leader of the out of order. That is why we on this side say Opposition then said, ‘We asked a question that this is the weakest opposition since Ar- about HIH the other day. How come that one thur Calwell, and we have just had a demon- was in order and today’s question was not?’ stration of that today on standing orders. Again it is as plain as plain could be: in the Standing orders are very clear, and they are question that was asked today, a particular amplified by House of Representatives individual was named by the questioner. It is Practice. I refer honourable members to the no wonder that that brought the matter im- particular reference, which starts on page mediately to your attention, because anybody 514 and continues on page 515 as follows: who knows anything about the standing or- Questions critical of the character or conduct ders will immediately have their interest of other persons cannot be asked without notice. stimulated when a question contains a spe- Although this rule is generally applied to named cific, named individual with a particular al- persons, it has also been applied to unnamed, but legation attached to it. Mr Speaker, I refer readily identifiable, persons. Such questions may, you to the standing orders. however, be placed on the Notice Paper— Opposition members interjecting— That means, of course, that you can ask questions on those matters, which com- Mr REITH—I do not need points of or- pletely denies the claim that there is some- der to interrupt my time, to lengthen it, as the how a lack of accountability. I thought I Leader of the Opposition does, so that he has heard the Leader of the Opposition virtually time to fill in. I want to comprehensively say that this was the end of democracy as we knock this over and then I will be pleased to know it. He ought to then go on and read: advise the House that enough will be enough. The purpose of the rule is to protect a person against criticism which could be unwarranted. Ms Macklin—You’re just blathering on. What wise words those are from the editor of Mr REITH—Blathering on? Reading the House of Representatives Practice, as it has standing orders? That is the Labor Party for been common practice for the Labor Party to you: when you reach for the standing orders, make unsubstantiated allegations against they say, ‘You’re just blathering on.’ I have people who are not in this chamber, unable got news for the member for Jagajaga: we try to protect themselves. Furthermore, it goes to operate the place on the basis of the on to say: standing orders—something you obviously A question on notice does not receive the same have failed to understand. Standing order publicity and prominence as a question without 153 says: notice and the reply can be more considered. Questions shall not be asked which reflect on Mr Speaker, you could not get a clearer or are critical of the character or conduct of those statement of that. But furthermore—just to persons whose conduct may only be challenged on a substantive motion, and notice must be given put this to the Leader of the Opposition and of questions critical of the character or conduct of his ‘brains trust’—you yourself last Decem- other persons. ber made a statement to the House and re- I heard the question. The first thing I took minded members of the parliament what out of it was that there was an attempted their obligations were under the standing bribe, effectively. That was the first thing. orders. Mr Speaker, not only were you quick 27148 REPRESENTATIVES Monday, 4 June 2001 off the mark today to knock off a question gard. The only thing that has changed on this that was clearly out of order, but you also particular occasion is that the tactics com- had the foresight to realise that the Labor mittee on the opposition side failed to under- Party, in their usual tricks, would be likely to stand the standing orders and then asked a find themselves in breach of the standing question outside the standing orders. orders, so you let fly a shot across their I do not need 20 minutes to knock this off. bows, shall we say—I am sure you would This attack on your ruling, Mr Speaker, is not put it that way. one of the most flimsy and one of the poorest Mr SPEAKER—I interrupt the Leader of motions I have seen. It does not surprise me. the House only to remind him that the shot The Labor Party had obviously run out of was let fly across everybody’s bows. questions during question time and they Mr REITH—Of course it was, Mr thought they would run this as a bit of a dis- Speaker. I felt that interjection coming. What traction. It does not deserve the support of you said on Thursday, 7 December last year, any members. Those on the other side will of just before Christmas, was: course, in keeping with their long tradition, do what they are told. But the fact is that this Standing order 153 provides that questions shall not be asked which reflect on or are critical of the is a very flimsy and weak motion put up by character or conduct of those persons whose con- the Leader of the Opposition, it does not de- duct may only be challenged on a substantive serve any support and the government will motion. certainly reject it. Mr Speaker, as I say again, it is an open and Mr McMULLAN (Fraser—Manager of shut case. You acted on your own initiative. Opposition Business) (3.42 p.m.)—Mr Of course the government supports your Speaker, question time is very important in ruling, because it is plainly within the terms of accountability of ministers. We standing orders. The Leader of the Opposi- need, in dealing with motions for dissent tion then had the gall to say that the govern- from your ruling, to look at what is the pur- ment was not prepared to answer questions pose of question time, what it is that we are on this particular matter. That is a particu- pursuing, why this particular question was larly offensive claim. important— Mr McMullan—I raise a point of order, Motion (by Mr Reith) proposed: Mr Speaker. I take it that the standing orders That the question be now put. as applied to the Leader of the Opposition Mr SPEAKER—The question is that the will apply to the Leader of the House and he question be put. All of those of that opinion will have to stick to the motion as well—not say aye, the contrary no. I think the ayes that distraction and diversion which he is just have it. Is a division required? A division is pursuing. required. Ring the bells for four minutes. Mr SPEAKER—I will listen closely to The bells being rung— what the Leader of the House is saying. Mr Tuckey interjecting— Mr REITH—Mr Speaker, I answer the point of order by making a point which is Mr McMullan interjecting— very relevant to the issues raised and also to Mr SPEAKER—The Minister for For- the comments made by the Leader of the estry and Conservation! The Manager of Opposition. That is to say, and I refer par- Opposition Business! ticularly to the motion, that the standing or- Mr Tuckey interjecting— ders do allow governments to be held to ac- Mr SPEAKER—Minister! count, and for 100 years governments have been held to account and ministers have been Mr McMullan interjecting— asked searching questions about their portfo- Mr SPEAKER—Manager of Opposition lios. We have all seen it in this chamber. The Business! standing orders have not changed in this re- Monday, 4 June 2001 REPRESENTATIVES 27149

Mr McMullan—You abuse your privi- Vale, D.S. Wakelin, B.H. lege to beat people up. Washer, M.J. Williams, D.R. Mr SPEAKER—I will take the necessary Wooldridge, M.R.L. Worth, P.M. action under the standing orders for both the NOES minister and the Manager of Opposition Adams, D.G.H. Albanese, A.N. Business if they provoke me any further. Beazley, K.C. Bevis, A.R. The bells having been rung— Brereton, L.J. Burke, A.E. Mr SPEAKER—Lock the doors. The Byrne, A.M. Corcoran, A.K. Cox, D.A. Crean, S.F. question is that the Manager of Opposition Crosio, J.A. Danby, M. Business be no longer heard. Edwards, G.J. Ellis, A.L. The House divided. [3.47 p.m.] Emerson, C.A. Evans, M.J. (Mr Speaker—Mr Neil Andrew) Ferguson, L.D.T. Ferguson, M.J. Fitzgibbon, J.A. Gibbons, S.W. Ayes………… 74 Gillard, J.E. Griffin, A.P. Noes………… 66 Hall, J.G. Hatton, M.J. Majority……… 8 Hoare, K.J. Hollis, C. Horne, R. Irwin, J. AYES Jenkins, H.A. Kernot, C. Abbott, A.J. Anderson, J.D. Kerr, D.J.C. Latham, M.W. Andrews, K.J. Anthony, L.J. Lawrence, C.M. Lee, M.J. Bailey, F.E. Baird, B.G. Livermore, K.F. Macklin, J.L. Barresi, P.A. Bartlett, K.J. Martin, S.P. McClelland, R.B. Billson, B.F. Bishop, B.K. McFarlane, J.S. McLeay, L.B. Bishop, J.I. Brough, M.T. McMullan, R.F. Melham, D. Cadman, A.G. Cameron, R.A. Morris, A.A. Mossfield, F.W. Causley, I.R. Charles, R.E. Murphy, J. P. O’Byrne, M.A. Costello, P.H. Downer, A.J.G. O’Connor, G.M. O’Keefe, N.P. Elson, K.S. Entsch, W.G. Plibersek, T. Price, L.R.S. Fahey, J.J. Fischer, T.A. Quick, H.V. Ripoll, B.F. Forrest, J.A * Gallus, C.A. Roxon, N.L. Rudd, K.M. Gambaro, T. Gash, J. Sawford, R.W * Sciacca, C.A. Georgiou, P. Haase, B.W. Sercombe, R.C.G * Short, L.M. Hardgrave, G.D. Hawker, D.P.M. Sidebottom, P.S. Smith, S.F. Hockey, J.B. Howard, J.W. Snowdon, W.E. Swan, W.M. Hull, K.E. Jull, D.F. Tanner, L. Thomson, K.J. Kelly, D.M. Kelly, J.M. Wilkie, K. Zahra, C.J. Kemp, D.A. Lawler, A.J. PAIRS Lieberman, L.S. Lindsay, P.J. Vaile, M.A.J. Gerick, J.F. Lloyd, J.E. Macfarlane, I.E. * denotes teller May, M.A. McArthur, S * McGauran, P.J. Moylan, J. E. Question so resolved in the affirmative. Nairn, G. R. Nehl, G. B. Ms Macklin—Mr Speaker, I rise on a Nelson, B.J. Neville, P.C. point of order. The division was not on the Prosser, G.D. Pyne, C. question that you just said. Reith, P.K. Ronaldson, M.J.C. Mr SPEAKER—The member for Jaga- Ruddock, P.M. Schultz, A. jaga will resume her seat. I was about to Scott, B.C. Secker, P.D. clarify that point. Slipper, P.N. Somlyay, A.M. Southcott, A.J. St Clair, S.R. Ms Macklin—We are trying to find out Stone, S.N. Sullivan, K.J.M. whether this Liberal minister— Thompson, C.P. Thomson, A.P. Mr SPEAKER—The member for Jaga- Truss, W.E. Tuckey, C.W. jaga will resume her seat. The member for 27150 REPRESENTATIVES Monday, 4 June 2001

Jagajaga is in fact perfectly right. The Leader Mr McMullan—On a point of order, Mr of the House indicated that the question was Speaker— that the question be now put. I in fact, in Honourable members interjecting— calling for the division, indicated that the question was that the Manager of Opposition Mr SPEAKER—When the House has Business be no longer heard. It was therefore come to order, including the Treasurer. my proposal to now put the question that the Mr Price interjecting— question be now put. All those of that opin- Mr SPEAKER—The Manager of Oppo- ion say aye, the contrary no. sition Business was seeking the call, and any Mr McMullan—Mr Speaker, on a point interjection from the member for Chifley is of order: how can you put that? All the out of order. members of the House have voted on the Mr McMullan—Mr Speaker, under what basis of your advice on what the question standing order can a motion be put to the was. How can you put that added question on chair subsequent to a vote without any inter- which we are not to vote on? The next mo- vening business and without a member tion cannot be voted on until somebody moving the motion which you are now pur- moves it, which means that, as the member porting to put? for Jagajaga proposes, she should have the Mr SPEAKER—Let me indicate to the call and a subsequent motion needs to be put Manager of Opposition Business that in fact to the House. the motion that we are currently debating had Mr Lee—On a point of order, Mr been moved by the Leader of the House. But Speaker: would you clarify for the House if when I called the motion—because in fact, the vote which has just been completed was as the Manager of Opposition Business as you put it to the House or as moved by the knows, he was resuming his seat at the Leader of the House? What was the vote that time—I, not surprisingly but in error, put to has just been completed? the assembled House that the question was Mr SPEAKER—In order to minimise that the Manager of Opposition Business be any confusion, I should indicate to the House no longer heard. There is no attempt here in that the motion on which they have just any way to thwart the democratic process; voted was that the Manager of Opposition quite the contrary. I am endeavouring to give Business be no longer heard, because that members the maximum opportunity to par- was the question as I put it when everyone ticipate in the debate. Lock the doors! For was seated in the House. It is therefore ap- that reason, we are currently about to divide propriate to now move to a motion that had on the question as to whether or not the already been put by the Leader of the House, question should be put. which was that the question be now put. The The doors having been locked— Leader of the House had moved that the Mr McMullan—Mr Speaker, on a point question be now put. of order: had you not ruled that way the Mr McMullan—But he has not; nothing member for Jagajaga would have had the call has been. prior to that motion. She would have had the Mr SPEAKER—The Leader of the chance to make her contribution until the House has moved that the question be now Leader of the House got the standing orders put, and I have already put the question and right and moved his motion. called for those in favour and heard yes, and Mr SPEAKER—I would remind the those against it and heard no. Is a division Manager of Opposition Business that, far required? A division is required. Ring the from acting in any unconstitutional way, I bells for one minute. have in fact put the motion already moved by The bells being rung— the Leader of the House. The question is that the motion be agreed to. Monday, 4 June 2001 REPRESENTATIVES 27151

Mr Price—Mr Speaker, on a point of or- Reith, P.K. Ronaldson, M.J.C. der: how is it possible that you put a question Ruddock, P.M. Schultz, A. about which a motion has not been moved? Scott, B.C. Secker, P.D. Mr SPEAKER—I would remind the Slipper, P.N. Somlyay, A.M. member for Chifley that the matter has al- Southcott, A.J. St Clair, S.R. ready been moved by the Leader of the Stone, S.N. Sullivan, K.J.M. Thompson, C.P. Thomson, A.P. House. Truss, W.E. Tuckey, C.W. Mr Price—I am talking about the first Vale, D.S. Wakelin, B.H. question, not the second. Washer, M.J. Williams, D.R. Mr SPEAKER—The member for Chifley Wooldridge, M.R.L. Worth, P.M. is warned. NOES Mr Price—I am entitled to courtesy like Adams, D.G.H. Albanese, A.N. every other member. Beazley, K.C. Bevis, A.R. Mr SPEAKER—The member for Chifley Brereton, L.J. Burke, A.E. will be dealt with at the conclusion of the Byrne, A.M. Corcoran, A.K. division. The question before the chair is that Cox, D.A. Crean, S.F. Crosio, J.A. Danby, M. the question be now put. Edwards, G.J. Ellis, A.L. The House divided. [3.56 p.m.] Emerson, C.A. Evans, M.J. (Mr Speaker—Mr Neil Andrew) Ferguson, L.D.T. Ferguson, M.J. Fitzgibbon, J.A. Gibbons, S.W. Ayes………… 74 Gillard, J.E. Griffin, A.P. Noes………… 66 Hall, J.G. Hatton, M.J. Majority……… 8 Hoare, K.J. Hollis, C. Horne, R. Irwin, J. AYES Jenkins, H.A. Kernot, C. Abbott, A.J. Anderson, J.D. Kerr, D.J.C. Latham, M.W. Andrews, K.J. Anthony, L.J. Lawrence, C.M. Lee, M.J. Bailey, F.E. Baird, B.G. Livermore, K.F. Macklin, J.L. Barresi, P.A. Bartlett, K.J. Martin, S.P. McClelland, R.B. Billson, B.F. Bishop, B.K. McFarlane, J.S. McLeay, L.B. Bishop, J.I. Brough, M.T. McMullan, R.F. Melham, D. Cadman, A.G. Cameron, R.A. Morris, A.A. Mossfield, F.W. Causley, I.R. Charles, R.E. Murphy, J. P. O’Byrne, M.A. Costello, P.H. Downer, A.J.G. O’Connor, G.M. O’Keefe, N.P. Elson, K.S. Entsch, W.G. Plibersek, T. Price, L.R.S. Fahey, J.J. Fischer, T.A. Quick, H.V. Ripoll, B.F. Forrest, J.A * Gallus, C.A. Roxon, N.L. Rudd, K.M. Gambaro, T. Gash, J. Sawford, R.W * Sciacca, C.A. Georgiou, P. Haase, B.W. Sercombe, R.C.G * Short, L.M. Hardgrave, G.D. Hawker, D.P.M. Sidebottom, P.S. Smith, S.F. Hockey, J.B. Howard, J.W. Snowdon, W.E. Swan, W.M. Hull, K.E. Jull, D.F. Tanner, L. Thomson, K.J. Kelly, D.M. Kelly, J.M. Wilkie, K. Zahra, C.J. Kemp, D.A. Lawler, A.J. PAIRS Lieberman, L.S. Lindsay, P.J. Vaile, M.A.J. Gerick, J.F. Lloyd, J.E. Macfarlane, I.E. * denotes teller May, M.A. McArthur, S * McGauran, P.J. Moylan, J. E. Question so resolved in the affirmative. Nairn, G. R. Nehl, G. B. Original question put: Nelson, B.J. Neville, P.C. That the Speaker’s ruling be dissented from. Prosser, G.D. Pyne, C. 27152 REPRESENTATIVES Monday, 4 June 2001

The House divided. [4.00 p.m.] Forrest, J.A * Gallus, C.A. (Mr Speaker—Mr Neil Andrew) Gambaro, T. Gash, J. Georgiou, P. Haase, B.W. Ayes………… 66 Hardgrave, G.D. Hawker, D.P.M. Noes………… 74 Hockey, J.B. Howard, J.W. Majority……… 8 Hull, K.E. Jull, D.F. Kelly, D.M. Kelly, J.M. AYES Kemp, D.A. Lawler, A.J. Adams, D.G.H. Albanese, A.N. Lieberman, L.S. Lindsay, P.J. Beazley, K.C. Bevis, A.R. Lloyd, J.E. Macfarlane, I.E. Brereton, L.J. Burke, A.E. May, M.A. McArthur, S * Byrne, A.M. Corcoran, A.K. McGauran, P.J. Moylan, J. E. Cox, D.A. Crean, S.F. Nairn, G. R. Nehl, G. B. Crosio, J.A. Danby, M. Nelson, B.J. Neville, P.C. Edwards, G.J. Ellis, A.L. Prosser, G.D. Pyne, C. Emerson, C.A. Evans, M.J. Reith, P.K. Ronaldson, M.J.C. Ferguson, L.D.T. Ferguson, M.J. Ruddock, P.M. Schultz, A. Fitzgibbon, J.A. Gibbons, S.W. Scott, B.C. Secker, P.D. Gillard, J.E. Griffin, A.P. Slipper, P.N. Somlyay, A.M. Hall, J.G. Hatton, M.J. Southcott, A.J. St Clair, S.R. Hoare, K.J. Hollis, C. Stone, S.N. Sullivan, K.J.M. Horne, R. Irwin, J. Thompson, C.P. Thomson, A.P. Jenkins, H.A. Kernot, C. Truss, W.E. Tuckey, C.W. Kerr, D.J.C. Latham, M.W. Vale, D.S. Wakelin, B.H. Lawrence, C.M. Lee, M.J. Washer, M.J. Williams, D.R. Livermore, K.F. Macklin, J.L. Wooldridge, M.R.L. Worth, P.M. Martin, S.P. McClelland, R.B. PAIRS McFarlane, J.S. McLeay, L.B. Gerick, J.F. Vaile, M.A.J. McMullan, R.F. Melham, D. Question so resolved in the negative. Morris, A.A. Mossfield, F.W. Murphy, J. P. O’Byrne, M.A. Mr Howard—Mr Speaker, I ask that O’Connor, G.M. O’Keefe, N.P. further questions be placed on the Notice Plibersek, T. Price, L.R.S. Paper. Quick, H.V. Ripoll, B.F. DIVISIONS: CONDUCT Roxon, N.L. Rudd, K.M. Mr SPEAKER (4.06 p.m.)—The mem- Sawford, R.W * Sciacca, C.A. ber for Chifley raised with me the matter of Sercombe, R.C.G * Short, L.M. the way in which those divisions were dealt Sidebottom, P.S. Smith, S.F. Snowdon, W.E. Swan, W.M. with. I remind the House that the Leader of Tanner, L. Thomson, K.J. the House rose and moved ‘That the question Wilkie, K. Zahra, C.J. be now put’ while the Manager of Opposi- tion Business was addressing the House, NOES which is of course an entirely acceptable Abbott, A.J. Anderson, J.D. procedure under the standing orders. The Andrews, K.J. Anthony, L.J. bells were then rung, and people came into Bailey, F.E. Baird, B.G. the chamber assuming that they were voting Barresi, P.A. Bartlett, K.J. on the question ‘That the question be now Billson, B.F. Bishop, B.K. put’. In error, I indicated to the House, when Bishop, J.I. Brough, M.T. the entire chamber was assembled, that we Cadman, A.G. Cameron, R.A. were voting on the question as to whether or Causley, I.R. Charles, R.E. not the Manager of Opposition Business Costello, P.H. Downer, A.J.G. Elson, K.S. Entsch, W.G. should be further heard. That vote took Fahey, J.J. Fischer, T.A. place. Unresolved, in my view, was still the Monday, 4 June 2001 REPRESENTATIVES 27153 question as to whether or not the question Mrs BRONWYN BISHOP—I claim to should be put. So, in order to ensure that no- have been misrepresented by two members one could in any way be disadvantaged—and of the opposition: firstly, the member for I reinforce the fact that this question had al- Jagajaga and, secondly, the member for ready been put by the Leader of the House— Grayndler. The misrepresentation was as I subsequently put that question. That was an follows: it was that (a) I had power to make unusual course of action, I would freely con- any decision with regard to accreditation. I cur, but it seemed to me the one way to en- do not have such a power and I did not at- sure that no-one could claim that they were tempt to intervene— disadvantaged in any way at all. Mr Beazley—Mr Speaker, on a point of I am sure that, had the member for Chifley order: this is not claiming to be misrepre- been entirely aware of that, he may not have sented. interrupted me as he did. He must, nonethe- Mr SPEAKER—If I were to hear the less, be aware of the fact that, no matter who minister do other than make a personal ex- the occupier of the chair is, there is no ex- planation, I would require her to resume her cuse for interjection while the chair is mak- seat. ing a point of order of any form. For that reason, I require him to excuse himself from Mrs BRONWYN BISHOP—As I said, I the chamber under the provisions of 304A. had no such power and I did not make any such decision concerning accreditation. Sec- The member for Chifley then left the ondly, there was an implication that I would chamber. respond to a donation in making such a— PERSONAL EXPLANATIONS Opposition members interjecting— Mrs BRONWYN BISHOP (Mackellar— Mrs BRONWYN BISHOP—Oh, it is Minister for Aged Care) (4.08 p.m.)—Mr amazing, isn’t it? Such false indignation! Speaker, I would like to make a personal explanation. I claim to have been misrepre- Mr McMullan—Mr Speaker, I want to sented. raise two points of order with regard to this. One is that the minister is purporting to re- Opposition members interjecting— spond to the member for Grayndler. Mrs BRONWYN BISHOP—I am seek- Government members interjecting— ing leave to do so, Mr Speaker. Mr SPEAKER—The Manager of Oppo- Mr SPEAKER—The Minister for Aged sition Business has the call. Care does not as yet have the call. It would strike me that there are a number of members Mr McMullan—The minister said she who are already abusing the forms of the was responding to the member for Grayndler. House. The Prime Minister quite clearly You cannot allow a procedure whereby a moved that further questions be put on the minister can reply to a question which you Notice Paper. have ruled out of order and not allowed to be concluded. Secondly, if I understood your Mrs Crosio interjecting— ruling with regard to the question, it was that Mr SPEAKER—If I were to deal with you implied in some way that it was an im- the member for Prospect in the same even- plication with regard to a person outside the handed way as I have dealt with the member House. Had it been referring to the minister, for Chifley, she would no longer be in the it would have been in order. Therefore, you chamber. Does the Minister for Aged Care cannot both allow her to have a personal ex- claim to have been misrepresented? planation about the question and rule the Mrs BRONWYN BISHOP—Yes, I do, question out of order. Mr Speaker. Mr SPEAKER—I indicate to the Man- Mr SPEAKER—The Minister for Aged ager of Opposition Business that I have lis- Care may proceed. tened closely to what the minister was say- ing. Her response to the first misrepresenta- 27154 REPRESENTATIVES Monday, 4 June 2001 tion was entirely in order, because in fact she Mrs BRONWYN BISHOP—Didn’t you was indicating that there had been a sugges- listen? tion that she had power that she does not Mr SPEAKER—The minister is ad- have. She cannot respond to the question dressing her remarks through the chair. which has been ruled out of order. Mrs BRONWYN BISHOP—I am refer- Mrs BRONWYN BISHOP—Mr ring to the misrepresentation by the Leader Speaker, I was also misrepresented by the of the Opposition during his dissertation. The Leader of the Opposition in his speech when fact of the matter was that he implied that he alleged that I had responded to a donation there was a connection— being made to a political party, and I did not. He drew together the misrepresentation— Mr Beazley interjecting— Mr Beazley—Mr Speaker, I take a point Mr SPEAKER—Leader of the Opposi- of order: as you well know, because you lis- tion, I am listening very closely to the min- tened to my speech extremely carefully, my ister. To date, she has not indicated what the complaint was about not being able to ask implication was or what it was related to, and questions on that matter, not an allegation. In it would be quite improper for me to rule in those circumstances, she is not responding any way at all. on a personal explanation where she has Mrs BRONWYN BISHOP—He made been misrepresented. an implication that there was a connection Mr Lee—Mr Speaker, on two occasions between a donation and me making a deci- the minister has accused the Leader of the sion. I neither had the power nor did I make Opposition of being a grub—I do not know any such decision. whether you heard that—and I would ask Mr Beazley—Mr Speaker, I constantly you to consider whether that is parliamentary argued about not whether or not there was language. but whether it was legitimate to ask that Mr SPEAKER—If the minister has any question. Right through that speech— further personal explanation, I will hear her, Mr SPEAKER—The Leader of the Op- but she cannot refer to the question which I position will resume his seat. I have indi- have ruled out of order. cated that in fact it is not proper for the min- Mrs BRONWYN BISHOP—I am not re- ister to claim to have been misrepresented on ferring to the question; I am referring to the an issue on which I had ruled a question out remarks by the Leader of the Opposition in of order. I would, however, point out to the his dissertation. House, as I hope they are all well aware, that it is perfectly in order, as has been mentioned Mr Lee interjecting— during the debate, for the member for Mr SPEAKER—I beg your pardon. The Grayndler to put his question on notice and member for Dobell raised the question of the minister to respond to it in that form unparliamentary language. Mrs Bronwyn Bishop—I simply want to Mr Lee—Do you intend to rule on that say with regard to the second misrepresenta- point of order, Mr Speaker? tion— Mr SPEAKER—I would ask the minister Mr SPEAKER—The minister does not to withdraw any inference she made about have the call. the Leader of the Opposition. PETITIONS Mrs BRONWYN BISHOP—I withdraw The Clerk—Petitions have been lodged that, Mr Speaker. I would like to return to the for presentation as follows and copies will be point I was making of having been misrepre- referred to the appropriate ministers: sented. Opposition members interjecting— Monday, 4 June 2001 REPRESENTATIVES 27155

Asylum Seekers: Work Rights Asylum Seekers: Work Rights To the Honourable the Speaker and Members of To the Honourable the Speaker and Members of the House of Representatives in Parliament as- the House of Representatives in Parliament as- sembled: sembled: Whereas the 1998 Synod of the Anglican Diocese Whereas the 1998 Synod of the Anglican Diocese of Melbourne carried without dissent the follow- of Melbourne carried without dissent the follow- ing Motion: ing Motion: That this Synod regrets the Government’s adop- That this Synod regrets the Government’s adop- tion of procedures for certain people seeking po- tion of procedures for certain people seeking po- litical asylum in Australia which exclude them litical asylum in Australia which exclude them from all public income support while withholding from all public income support while withholding permission to work, thereby creating a group of permission to work, thereby creating a group of beggars dependent on the Churches and charities beggars dependent on the Churches and charities for food and the necessities of life; for food and the necessities of life; and calls upon the Federal government to review and calls upon the Federal government to review such procedures immediately and remove all such procedures immediately and remove all practices which are manifestly inhumane and in practices which are manifestly inhumane and in some cases in contravention of our national obli- some cases in contravention of our national obli- gations as a signatory of the UN Covenant on gations as a signatory of the UN Covenant on Civil and Political Rights. Civil and Political Rights. We, therefore, the individual, undersigned Mem- We, therefore, the individual, undersigned Mem- bers of the St Theodore’s Anglican Church, Wat- bers of the St Michael and All Angels’ Anglican tle Park, Victoria 3128, petition the House of Church, Beaumaris, Victoria 3193, petition the Representatives in support of the abovementioned House of Representatives in support of the abo- Motion. vementioned Motion. by Ms Burke (from 22 citizens). by Dr Kemp (from 16 citizens). Asylum Seekers: Work Rights Asylum Seekers: Work Rights To the Honourable the Speaker and Members of To the Honourable the Speaker and Members of the House of Representatives in Parliament as- the House of Representatives in Parliament as- sembled: sembled: Whereas the 1998 Synod of the Anglican Diocese Whereas the 1998 Synod of the Anglican Diocese of Melbourne carried without dissent the follow- of Melbourne carried without dissent the follow- ing Motion: ing Motion: That this Synod regrets the Government’s adop- That this Synod regrets the Government’s adop- tion of procedures for certain people seeking po- tion of procedures for certain people seeking po- litical asylum in Australia which exclude them litical asylum in Australia which exclude them from all public income support while withholding from all public income support while withholding permission to work, thereby creating a group of permission to work, thereby creating a group of beggars dependent on the Churches and charities beggars dependent on the Churches and charities for food and the necessities of life; for food and the necessities of life; and calls upon the Federal government to review and calls upon the Federal government to review such procedures immediately and remove all such procedures immediately and remove all practices which are manifestly inhumane and in practices which are manifestly inhumane and in some cases in contravention of our national obli- some cases in contravention of our national obli- gations as a signatory of the UN Covenant on gations as a signatory of the UN Covenant on Civil and Political Rights. Civil and Political Rights. We, therefore, the individual, undersigned Mem- We, therefore, the individual, undersigned Mem- bers of the St Faith’s Anglican Church, Glen Iris, bers of the St Johns Chrysostom’s Anglican Victoria 3146, petition the House of Representa- Church, Brunswick West, Victoria 30551, petition tives in support of the abovementioned Motion. the House of Representatives in support of the And we, as in duty bound will every pray. abovementioned Motion. by Mr Costello (from 34 citizens). And we, as in duty bound will every pray. 27156 REPRESENTATIVES Monday, 4 June 2001

by Mr Kelvin Thomson (from 19 citi- (b) address the crisis in confidence felt by both zens). staff and the general community; and Australian Broadcasting Corporation: (c)not approve any commercial activities incon- Independence and Funding sistent with the ABC Act and Charter. To the Honourable the Speaker and the Members by Mr Martin Ferguson (from 81 citi- of the House of Representatives assembled in the zens), Parliament: by Ms Hall (from 7 citizens) and The petition of certain citizens of Australia draws by Mr Allan Morris (from 18 citizens). the attention of the House to: Fuel Prices (1) our strong support for our independent na- tional public broadcaster, the Australian Broad- To the Honourable the Speaker and Members of casting Corporation; the House of Representatives assembled in Par- liament. (2) the sustained political and financial pres- sures that the Howard Government has placed on The petition of certain citizens of Australia draws the Australian Broadcasting Corporation (ABC), to the attention of the House the extremely high including: price of petrol and other fuels and the increase in the amount of tax on fuel due to: (a)the 1996 and 1997 Budget cuts which reduced funding to the ABC by $66 million per year; and The Government’s failure to keep its promise that the price of petrol and other fuels would not rise (b) its failure to fund the ABC’s transition to as a result of the new tax system, by reducing the digital broadcasting; excise by the full amount of the GST; (3) our concern about recent decisions made by The fuel indexation increases on 1 August 2000 the ABC Board and senior management, includ- and 1 February 2001, which will be significantly ing the Managing Director Jonathan Shier, which higher than usual because of the inflationary im- we believe may undermine the independence and pact of the GST; and high standards of the ABC including: The charging of the GST on the fuel excise, (a)the cut to funding for News and Current Af- making it a tax-on-a-tax. fairs; Your petitioners therefore request the House to: (b) the reduction of the ABC’s in-house pro- duction capacity; Hold the Government to its promise that its poli- cies would not increase the price of petrol and (c)the closure of the ABC TV Science Unit; other fuel; (d) the circumstances in which the decision was Support a full Senate inquiry into the taxation and made not to renew the contract of Media Watch pricing of petrol; presenter Mr Paul Barry; and Consider the best way to return the fuel tax wind- (e)consideration of the Bales Report, which rec- fall to Australian motorists. ommended the extension of the ABC’s commer- cial activities in ways that may be inconsistent by Mr Martin Ferguson (from 17 citi- with the ABC Act and the Charter; zens) and Your petitioners ask the House to: by Ms Hall (from 174 citizens). (1) protect the independence of the ABC; Fuel Prices (2) ensure that the ABC receives adequate To the Honourable the Speaker and Members of funding; the House of Representatives assembled in the (3) call upon the Government to rule out its . support for the privatisation of any part of the The petition of certain citizens of Australia draws ABC, particularly JJJ, ABC On-line and the ABC to the attention of the House the extremely high Shops; and price of petrol and other fuels and the increase in (4) call upon the ABC Board and senior man- the amount of tax on fuel due to: agement to: The Government’s failure to keep its promise that (a)fully consult with the people of Australia about the price of petrol and other fuels would not rise the future of our ABC; as a result of the new tax system, by reducing the excise by the full amount of the GST; Monday, 4 June 2001 REPRESENTATIVES 27157

The charging of the GST on the fuel excise, The cessation of bulkbilling by many general making it a tax on a tax. practitioners as a direct result of government Your petitioners therefore ask the House to: policy has caused great hardship to many local residents on low incomes particularly the elderly Rescind the indexed rise in the price of fuel, and those with young children. which took effect on February 2001; Your petitioners request that the House of Repre- Hold the Government to its promise that its poli- sentatives introduce legislation to ensure that cies would not increase the price of petrol and bulkbilling is preserved and that our Medicare other fuel; system is strengthened. Support a full Senate inquiry into the taxation and by Mr Fitzgibbon (from 62 citizens) and pricing of petrol; Consider the best way to return the fuel tax wind- by Ms Hall (from 932 citizens). fall to Australian motorists. Fuel Prices by Mr Fitzgibbon (from 15 citizens). To the Honourable the Speaker and Members of Goods and Services Tax: Pensioners the House of Representatives assembled in Par- liament. To the Honourable Speaker and Members of the The citizens of Australia draw to the attention of House of Representatives assembled in Parlia- the House that the high cost of fuel is causing ment. hardship and great concern to the general public. The petition of certain electors of Australia draws Your petitioners therefore request the House that the attention of the House to the unfairness and the fuel levy imposed on fuel be reviewed and inadequacy of the GST compensation for elderly reduced in the wake of rising fuel prices and the Australians, in particular: introduction of the Goods and Services Tax. the unfair rules of the Aged Persons Savings Bo- by Mr Adams (from 699 citizens). nus scheme which has failed to deliver on the Government’s election promise of $1,000 for Goods and Services Tax: Caravan Parks each aged person over 60; To the Honourable the Speaker and Members of the misleading claim of a four per cent pension the House of Representatives assembled in Par- increase when in fact it is only a two per cent liament. increase after taking into account Mr Howard’s The petition of certain electors of the Division of two per cent clawback; Aston draws to the attention of the House their the complete inadequacy of both the bonuses and concern about the affect the Goods and Services pension increase to compensate for the double Tax is having on site fees paid by residents of taxation of Australia’s retirees. mobile homes and caravan parks. Most residents of such parks are pensioners on fixed incomes Your petitioners condemn the Government’s whose limited resources are strained by the impo- contempt for older Australians and request the sition of this tax. Parliament explore ways in which the GST can be Your petitioners therefore ask the House to give made fairer and simpler and compensation im- proved to protect the living standards of elderly consideration to exempting site fees from the GST or to making concessions that will alleviate Australians. the impact of any increases. by Mr Martin Ferguson (from 37 citi- by Mr Albanese (from 63 citizens). zens) and Australian Broadcasting Corporation: by Ms Hall (from 17 citizens). Independence and Funding Health: Bulk-Billing To the Honourable the Speaker and Members of To the Honourable Speaker and Members of Par- the House of Representatives assembled in Par- liament of the House of Representatives assem- liament: bled in Parliament. This petition of the undersigned Orange commu- We the undersigned request that the Government nity draws to the attention of the House its con- take action to preserve bulkbilling and to cern over the long-term decline in funding of the strengthen the Medicare system. ABC and asks the House to call upon the Federal Government to support: (i) the independence of the ABC Board; 27158 REPRESENTATIVES Monday, 4 June 2001

(ii) the establishment of a joint parliamentary Your petitioners request that the House of Repre- committee to oversee ABC Board appointments sentatives do everything in their power to honour so that it is constructed as a multi-partisan Board, the integrity and wishes of these fine Australians independent of the government of the day; and overturn the original decision not to award (iii) an immediate increase in funding allowing the VC to Simpson. Simpson is symbol of the the ABC to operate independently of commercial self-sacrifice, mateship and all those values that pressures including advertising and sponsorship; Anzacs now stand for and Australians treasure. and By honouring him, we honour them all. (iv) the maintenance of its role as an independ- by Ms Hall (from 24 citizens). ent regional broadcaster. Medicare: Belmont Office by Mr Andren (from 217 citizens). To the Honourable Speaker and Members of Par- Australian Broadcasting Corporation: liament of the House of Representatives assem- Independence and Funding bled in Parliament. To the Honourable the Speaker and Members of We the undersigned request that the government the House of Representatives assembled in Par- reopen Belmont Medicare Office as there is no liament: Medicare office between Charlestown and Lake Haven and there has been a drastic decline in the This petition of the undersigned community numbers of general practitioners bulkbilling. members of the Central West Region of NSW draws to the attention of the House its concern The closure of Belmont Medicare Office has over the long-term decline in funding of the ABC caused great hardship to many local residents and asks the House to call upon the Federal Gov- particularly the elderly and those with young ernment to support: children. (i) the immediate restoration of funding and Your petitioners request that the House of Repre- staffing to 1996 levels; sentatives do everything in their power to ensure that Belmont Medicare Office is reopened as a (ii) the independent long-term funding of the matter of urgency. ABC; by Ms Hall (from 174 citizens). (iii) an ABC Board appointed by a Joint Parlia- mentary Committee independent of the govern- Food Labelling ment of the day; and To the Honourable the Speaker and Members of (iv) the development and expansion of the ABC the House of Representatives assembled in Par- as an independent regional broadcaster. liament. by Mr Andren (from 997 citizens). The undersigned citizens and residents of Austra- lia call on you to: Kirkpatrick, Private John Simpson Label all Genetically Engineered foods that may To the Honourable Speaker and Members of the be approved for sale; House of Representatives assembled in Parlia- ment. Ensure pies contain meat and jam contains fruit; We the undersigned request that John Simpson Make food labels reflect the true nature of the Kirkpatrick, of Simpson and the donkey fame, be contents; awarded a Victoria Cross of Australia. Ensure that the Australia New Zealand Food Under the Imperial Award system, the Victoria Authority (ANZFA)—the food safety watch- Cross was denied to Simpson as a result of some dog—is adequately resourced to protect our food. confusion in the original application. In 1915 And your petitioners, as in duty bound, will ever John Monash (later General) recommended pray. Simpson for the VC. In 1967 Lieutenant Casey by Ms Hall (from 10 citizens). who also witnessed Simpson’s work (later Gover- nor General, Lord Casey) together with Prime Centrelink: Job Cuts Minister Holt and the Chief of the General Staff, To the Honourable Speaker and Members of the Major General Brand (also a witness) recom- House of Representatives assembled in Parlia- mended him for the VC. This was also denied. ment. The British Government claimed that a dangerous The Petition of the undersigned shows we are precedent would be set. opposed to the Government's funding cuts to Monday, 4 June 2001 REPRESENTATIVES 27159

Centrelink, which will mean the loss of 5,000 annual profits from Telstra be used for the benefit Centrelink jobs. of all Australians. This staff cut will mean increased waiting times, by Ms Hall (from 12 citizens). reduced access and reduced service levels for Goods and Services Tax: Sanitary clients. Products It will place more stress on an already under- staffed and underfunded service. To the Honourable Speaker and Members of the House of Representatives assembled in Parlia- It is an attack on our right to an efficient and ac- ment. cessible social security system. The petition of certain electors of Australia draws Your petitioners request that the House of Repre- the attention of the House to the discriminatory sentatives should stop the Centrelink staff cuts. nature of imposing a GST on women’s sanitary by Ms Hall (from 15 citizens). products, particularly taxing tampons. Goods and Services Tax: Caravan Parks Tampons are currently exempt from tax and should continue to be exempt once the GST is To the Honourable Speaker and Members of Par- implemented; liament of the House of Representatives assem- bled in Parliament. The use of tampons is not solely a hygiene issue but a health issue; We the undersigned request that the Government make all residential rentals GST free including Taxing sanitary products discriminates against rental on sites paid by residents of relocatable and women, by limiting choice and making them pay mobile home villages or parks. for a necessary health product; The GST on site fees unfairly discriminates This demonstrates the discriminative nature of the against residents living in relocatable and mobile GST which imposes a tax on necessities and home villages or parks. The Government prom- places an unfair burden on people from lower ised that no-one would pay GST on rent and this socioeconomic backgrounds. is an anomaly which allows village/park owners Your petitioners therefore request the House to to charge GST on site fees. amend the GST legislation to exempt all sanitary Your petitioners request that the House of Repre- products particularly tampons from the GST net. sentatives do everything in their power to make by Ms Hall (from 10 citizens). rental on sites GST free. Goods and Services Tax: Receipts by Ms Hall (from 4 citizens). To the Honourable Speaker and Members of Par- Telstra: Privatisation liament of the House of Representatives assem- To the Honourable Speaker and Members of the bled in Parliament. House of Representatives assembled in Parlia- We the undersigned believe that the GST should ment. be legally required to be shown as a separate item These petitioners of the Division of Shortland and on all receipts. adjoining areas are deeply concerned at any plans We do not believe the GST should be allowed to to further privatise Telstra. become a hidden tax. Australian people have a Further privatisation of Telstra will result in the right to know exactly what GST they are paying. loss of thousands more Telstra jobs, worsening Your petitioners request that the House of Repre- services to regional and rural Australia, and the sentatives do everything in their power to ensure loss of up to $1 billion a year for all Australians the GST is shown on receipts. earned from Telstra profits. by Ms Hall (from 17 citizens). We believe these profits, both now and in the future, should be set aside to secure improved Compact Disc Prices educational opportunities for our children, in- To the Honourable Speaker and Members of the creased research and development funds for our House of Representatives assembled in Parlia- scientists and doctors, and more money for rural ment. and regional Australia. This petition of certain citizens of Australia draws Your petitioners therefore respectfully request to the attention of the House the statement by the that the House reject any further sale of the Prime Minister that prices of CD’s under his par- Commonwealth’s shares in Telstra and that the allel importation policy would fall by at least $7. 27160 REPRESENTATIVES Monday, 4 June 2001

We further draw the attention of the House to the Economy: Standard of Living fact that the Australian Competition and Con- To the Honourable Speaker and Members of the sumer Commission has stated some consumers House of Representatives assembled in Parlia- may now be paying about $28 for CD’s that prior ment. to the Government’s changes were about $29—a difference of about $1. The petition of certain citizens of Australia draws to the attention of the House: We believe as well that Australian record compa- nies and artists are now threatened by cheap im- That the Australian community recognises that ports, with little or no benefit to the consumer. the right to an adequate standard of living is a Your petitioners therefore respectfully request basic human right of all people that Governments that the House condemn the government for fail- have a duty to promote, protect, respect and fulfil ing to deliver its promise on CD prices. and not remove this right from anyone as a puni- tive measure. The right to an adequate standard of by Ms Hall (from 14 citizens). living includes food, clothing, housing, health Wallsend After-Hours Medical Service care and education. To the honourable the Speaker and Members of The community notes that it has been over 256 the House of Representatives assembled in Par- years since the Henderson Commission of Inquiry liament. into Poverty. The citizens of Australia are still The petition of certain electors of the Division of waiting for the Government to act upon some of Charlton draws to the attention of the House that the recommendations of that inquiry, including Wallsend Primary Care, the after hours bulk- the establishment of an official Poverty Line billing service at Wallsend Hospital Campus will measurement. close in September 2000, because of lack of sup- Your petitioners therefore ask the House to: port from other general practitioners to assist and 1. As an immediate step all pensions and benefits relieve at the practice. be brought up to at least 25 per cent of male total Closure will place a large burden on emergency average weekly earnings as is the case for the services at John Hunter and Mater Hospitals. single pension. Your petitioners therefore ask the House to estab- 2. Establish a Royal Commission into poverty in lish a Commonwealth sponsored after-hours Australia with the aim of developing measures to medical service for the Wallsend community. determine an adequate standard of living for all And your petitioners, as in duty bound, will ever people and to make recommendations as to how pray. poverty in Australia can be eradicated. by Ms Hoare (from 17 citizens). by Mrs Hull (from 15 citizens). Health: Diabetes Diagnostic Products Bankstown Airport: Proposed Expansion To the Honourable the Speaker and Members of To the Honourable the Speaker and Members of the House of Representatives assembled in Par- the House of Representatives of Australia. liament. The petition of the residents of Bank- This petition of certain citizens of Australia draws stown/Liverpool and its environs brings to the to the attention of the House the plan by the attention of the House our desperate concern re- Howard Government to raise $10 million by in- garding the proposed expansion of Bankstown creasing the amount paid by diabetes patients for Airport. blood glucose test strips, syringes, insulin pen The noise, traffic and pollution generated by such needles and urine strips. an expansion will not only be catastrophic to the The undersigned believe that this move would residents, it will devastate the quality of our lives unfairly punish people, who as well as managing as well as the value of our properties. this disease, would be faced with higher prices for The residents of Bankstown/Liverpool consider it essential diagnostic items. vital that an Environmental Impact Study (EIS) be Your petitioners therefore respectfully request the undertaken regarding any proposal to upgrade House recognise the significant financial burden Bankstown Airport. this heartless budget measure would place on The undersigned petitioners request therefore that people with diabetes and reject the proposal. the House not proceed with the proposal to ex- by Mr Hollis (from 598 citizens). pand Bankstown Airport to permit regional air- Monday, 4 June 2001 REPRESENTATIVES 27161 craft and/or 737 jet aircraft from operating in and We therefore pray that the House will immedi- out of that facility. ately implement a ‘social charter’ to ensure that Your petitioners humbly pray that your Honour- banks properly recognise the needs of the com- able House take action to stop the expansion of munity. Bankstown Airport. by Mr Sciacca (from 634 citizens). by Mrs Irwin (from 3,170 citizens). Telecommunications: Mobile Phone Bankstown Airport: Proposed Expansion Numbers To the Honourable the Speaker and Members of To the Honourable the Speaker and Members of the House of Representatives of Australia. the House of Representatives assembled in Par- liament: The undersigned petitioners request therefore that the House not proceed with the proposal to ex- The petition of a certain citizen of Australia pand Bankstown Airport to permit regional air- draws to the attention of the House: craft and/or 737 jet aircraft from operating in and 1 Cable & Wireless Optus Limited issued the out of that facility. mobile phone numbers 0411-111-112, 0411-111- Your petitioners humbly pray that your Honour- 113, 0411-111-114, 0411-111-115, 0411-111-116 able House take action to stop the expansion of and 0411-111-119 to me on 15 December 1993. Bankstown Airport. 2. Cable and Wireless Optus Limited subse- by Mrs Irwin (from 306 citizens). quently allocated, issued, transferred or used these numbers in a way inconsistent with the Roads: F3 Freeway Telecommunications Numbering Plan 1997 that To the Honourable the Speaker and Members of has caused me to be deprived of the continued use the House of Representatives assembled in Par- of these numbers. liament: 3. The Australian Communications Authority has The petition of certain citizens of Australia draws refused my request that they enforce the relevant to the attention of the House: laws that would restore my rights as a customer. The continuing traffic congestion, extensive de- Your petitioner therefore prays that the House lays and accidents which occur regularly on the instruct the Australian Communications Authority F3 Freeway, particularly between the Hawkes- to enforce the relevant laws that would restore my bury River and the Gosford interchange, resulting rights as a customer. in excessive transport costs, loss of productivity by Mr Sciacca (from 1 citizen). and driver frustration. Australia Post: Kingaroy Your petitioners therefore request the House to demand both the Commonwealth and NSW State To the Honourable the Speaker and Members of Government take immediate action to widen the the House of Representatives assembled in Par- F3 Freeway. liament: by Mr Lloyd (from 328 citizens). The petition of certain electors of the Division of Wide Bay, draws to the attention of the House Banking: Branch Closures that: To the Honourable the Speaker and Members of 1. The Australia Post outlet in the Kingaroy the House of Representatives assembled in the Shoppingworld Complex has been moved from Parliament: near the main entrance to the extreme rear of the The petition of certain citizens of Australia draws complex. to the attention of the House: 2. This action appears to have been motivated by The closure of the Alexandra Hills Branch of the a desire to augment passing traffic for the neigh- Commonwealth Bank of Australia at 5.00 p.m. on bouring Franklins supermarket. Friday, 20 April 2001; 3. The result has been great inconvenience to the That since 1996, over 1,500 bank branches have general public and especially handicapped people closed throughout Australia, reducing communi- who now have to traverse the whole depth of the ties’ access to financial services. complex to perform the most menial transaction, Your petitioners believe that by closing bank such as purchasing a single stamp. branches, banks are not meeting their social obli- Your petitioners therefore request the House to: gations to the community. 27162 REPRESENTATIVES Monday, 4 June 2001

1. Take all steps to have the Australia Post outlet by Mr Kelvin Thomson (from 68 citi- in the Kingaroy Shoppingworld Complex relo- zens). cated to a more convenient location for the elec- tors of the Division of Wide Bay. Petitions received. 2. Instruct the Minister to have all products and LEAVE OF ABSENCE services available at the Kingaroy Shoppingworld Mr BEAZLEY (Brand—Leader of the outlet available also at the Australia Post Delivery Opposition) (4.18 p.m.)—I move: Centre in Kingaroy St, Kingaroy. That leave of absence for the remainder of the 3. Have dispensing machines for stamps and current period of sittings be given to Ms Gerick other minor items installed close to the entrance on the ground of ill health. to the Kingaroy Shoppingworld Complex. I am pleased to be able to say to the House by Mr Cameron Thompson (from 678 very briefly that Jane is out of hospital. She citizens). is in chemo, but it is not a particularly severe Australia Post: Winston Glades version of it now. She is very confident that To the Honourable Speaker and Members of the she will be able to return to her duties in House of Representatives assembled in Parlia- August, and she is very grateful for the good ment: wishes that have been sent to her from both The petition of residents of the State of Queen- sides of the House. sland draws to the attention of the House the Mr HOWARD (Bennelong—Prime Min- public need for an Australia Post Office to be ister) (4.19 a.m.)— I support the motion by located within the Winston Glades Shopping the Leader of the Opposition. I am very Centre. pleased to hear that the member is recovering Your petitioners therefore request the House to and responding well to the treatment. We all recognise the inadequate postal services within on this side of the House join the members of the suburbs of Flinders View, Churchill, Yamanto, the Labor Party in wising her well and hope the township of Ripley and its surrounds and ad- dress this matter with the issuing of a licence to to have her back soon. operate an Australia Post, Post Office at Winston Mr SPEAKER—I briefly endorse those Glades Shopping Centre, the central focal point of sentiments. our rapidly expanding region. Question resolved in the affirmative. by Mr Cameron Thompson (from 141 PRIVATE MEMBERS BUSINESS citizens). Economy: Performance Administrative Appeals Tribunal: Abolition Dr SOUTHCOTT (Boothby) (4.20 p.m.)—I move: To the Honourable Speaker and Members of the House of Representatives and Parliament assem- That this House: bled: (1) notes that amongst the OECD, Australia is The petition of residents of the State of Victoria ranked: draws attention to the House concerns over the (a) 3rd in information and communications proposal to abolish the Administrative Appeals technology expenditure as a percentage Tribunal to be replaced by the Administrative of GDP; Review Tribunal. (b) 3rd in secure servers for e-commerce This proposed legislation will disadvantage many (c) 3rd in internet multimedia content workers and their families and is legislation solely designed to protect and look after the em- (d) 6th in personal computer ownership; and ployer. (e) 8th in total online population; Your petitioners therefore request that the powers (2) notes Canberra has more adults accessing the of the Administrative Appeals Tribunal as en- internet than Washington; Darwin and Perth shrined in the Safety Rehabilitation & Compen- have more than Atlanta; Sydney, Melbourne sation Act 1988 be preserved and that the pro- and Hobart more than Los Angeles; and Bris- posed changes to this Act be rejected. bane and Adelaide are equal with New York; Monday, 4 June 2001 REPRESENTATIVES 27163

(3) notes our take up rates of cellular phones are lian economic performance in the 1990s has amongst the highest in the world; been strong by comparison around the world (4) notes Australia’s growth and increase in pro- and by comparison with Australia histori- ductivity during the 1990s exceeded that of the cally. US; Michael Porter of the Harvard Business (5) notes the financial services sector is greater in School recently said: size than the mining and agriculture sectors combined, as a percentage of GDP; and We need to move away from the rhetoric about ‘Internet industries’, ‘e-business strategies’ and a (6) rejects the view Australia represents an old ‘new economy’ and see the Internet for what it is: economy. an enabling technology—a powerful set of tools Ms Julie Bishop—I second the motion that can be used, wisely or unwisely, in almost and reserve my right to speak later. any industry and as part of almost any strategy. Dr SOUTHCOTT—This motion is an The Internet will be an important source of attempt to highlight where Australia already competitive advantage for firms who use it is in terms of technology and our adoption of within their overall strategy. We do not rec- it and also to look at where we are as we ognise enough in Australia how well we consider the government’s innovation state- measure up against other countries in a lot of ment and the opposition’s knowledge nation. key measures. It is also an apt time to have a realistic de- Thomas Friedman in his widely read book bate on issues relating to technology and the on globalisation, The Lexus and the Olive benefits it provides the Australian economy. Tree, puts Australia together with the USA, Over the last couple of years the debate has Britain, Canada and parts of Israel, Italy, been a bit unrealistic and the enthusiasm for Singapore and India as countries in the pre- tech stocks had all the elements of a classic mier league when measuring bandwidth or bubble. The lesson of the dot.com hoax is connectivity. A 1997 OECD survey showed that attention to return on equity, return of that Australia was ranked third in terms of IT investment, is crucial. It does not sell news- and communications expenditure as a per- papers, it sends editors to sleep, but now that centage of GDP. Only New Zealand and the bubble has burst it is evident that there Sweden were higher. This included expen- are a couple of things we can say about the diture on IT hardware, IT services and soft- benefits technology provides the economy. ware and telecommunications. A 2000 Only a year ago there was much debate OECD survey showed that Australia is third about whether Australia was a new or old in secure web servers for electronic com- economy and how the Australian dollar was merce per million inhabitants. Only Iceland being sold due to a perception that Australia and the United States were higher. In an es- was an old economy. It was always an artifi- timate of business to business activity via the cial distinction. The Prime Minister’s insis- Internet, Australia is the largest outside the tence that it was not the production of tech- G7 in total dollars. The same OECD survey nology but the use of it has actually been showed that Australia is third in the OECD proven right by the turn of events. One year in Internet multimedia content per million on, the NASDAQ crash, widespread tech inhabitants—only the US and Sweden are wrecks, downsizing at Cisco and even do- higher. The latest OECD figures show that in mestic events like the collapse of One.Tel all 2000 49.9 per cent of Australian households demonstrate that the rules of gravity apply to owned a personal computer—only the Neth- all firms and, (1) that the underlying business erlands and Norway have registered higher case must still be made for technology com- rates. panies, (2) that it is not the production of IT The National Office of the Information but the adoption of it which is important as a Economy report in November 2000 showed driver in the economy, (3) that Australia per- that Australia is eighth in the OECD in total forms very well on most international online population, with 41 per cent of the benchmarks of IT usage and, (4) that Austra- 27164 REPRESENTATIVES Monday, 4 June 2001 total population accessing the Internet. omy—this is compared with the United Looking at student Internet access at school, States, where it has largely been concen- we are seventh in the OECD, with 60 per trated in the production of computers and has cent online at school. While those figures largely occurred in the late 1990s. So our show that non-metropolitan Australians older performance is good compared with Austra- than 55, Australians with low income or lia’s historical performance and it is also Australians who are unemployed have lower good in international comparisons. rates, those rates are still quite impressive for Point (5) of this motion should be re- personal computer ownership and connec- phrased. The financial services sector has tivity. Also by looking at Nielsen ratings— grown from $21 billion in 1991 to $36 bil- comparing them with ABS data—we see that lion in 1999. By comparison, mining growth many Australian cities have higher levels of is smaller—between $18 billion and $26 bil- connectivity compared with comparable cit- lion over the same period—and agriculture, ies in the United States. Digital mobile phone forestry and fisheries have grown between connections were expected to exceed 50 per $11 billion and $18 billion over the same cent of the population by the end of 2000. period. So point (5) should actually say that That shows that Australia by most bench- financial services is separately bigger than marks performs very well compared with mining and bigger than agriculture, forestry other countries around the world. We are and fisheries. While it is certain that last year really in the front rank on most of these indi- the financial markets were influenced by the cations. false dichotomy of the old and new econ- It is also well recognised by the OECD omy, only 3.9 per cent of the United States and by other economies that Australia in the work force is employed in the ICT sector. 1990s has performed well in terms of labour The comparable figure for Australia is 2.6 productivity, total productivity and economic per cent. So it does not make much sense to growth. In fact, Australian growth and pro- judge the US dollar on 3.9 per cent, just as it ductivity during the 1990s has exceeded that does not make sense to judge the Australian of the United States. David Gruen and Glenn dollar on 2.6 per cent of the Australian econ- Stevens of the RBA have published a paper omy. on Australia’s macroeconomic performance The OECD report Science, Technology in the 1990s which shows that from 1991 to and Industry Outlook 2000 maintains the 2000 GDP in the United States increased by importance of the knowledge based economy 35 per cent compared with 40.5 per cent in and notes that it continues to grow within the Australia. Labour productivity in Australia in OECD. This year’s innovation statement the nineties has increased by 2.9 per cent from the government is an important step in compared with 1.4 per cent in the 1980s. guiding investment in science, and the adop- This is due to the productivity sapping effect tion of the recommendations of the 1999 of the accord in the 1980s and economic re- Wills review will assist biotechnology in forms, especially labour market reform and Australia. The recent changes allowing 175 adoption of new technology, in the nineties. per cent deductions for new R&D, as well as In fact, when we look at the last 35 years, the capital gains tax changes and the encour- labour productivity in Australia has usually agement of venture capital, are important been higher than the United States. That is elements of the framework for the knowl- due in part to the fact that the United States edge based economy. The government’s in- is a technology leader, whereas Australia can novation statement contains all the elements grow faster due to catch-up growth. that are needed to successfully foster these Analysis of the increase in productivity industries. Australian openness to new tech- shows that our increase in productivity in the nologies has always been an important factor 1990s has been during the entire expansion in our increasing productivity and our per- of the nineties and is more broadly based formance in economic growth. across all sectors of the Australian econ- Monday, 4 June 2001 REPRESENTATIVES 27165

In conclusion, new technologies will pro- year dealing with e-business. That report vide an important source of competitive ad- concluded that employment in the informa- vantage within a firm’s overall strategy. tion and communications technology sector, Rather than turning the rules of commerce on the ICT sector, in Australia is, at 2.9 per cent their head, the Internet should be seen as a of the labour force, amongst the lowest in the business enabler. Again to quote Michael OECD. One has to wonder, as the House sits Porter: this week, how low that figure will go in Internet technology provides better opportunities view of the recent spectacular failure of for companies to establish distinctive strategic One.Tel. The BCA also concludes that the positions than did previous generations of infor- value which ICT adds to total business, at 4.1 mation technology. Gaining such a competition per cent, is the lowest of the 18 countries advantage does not require a radically new ap- where data is available. Also, it concludes proach to business. It requires building on the that Australia’s ICT exports are a tiny 4.4 per proven principles of effective strategy. The Inter- cent of total exports, with Australia being net per se will rarely be a competitive advantage. ahead of only New Zealand and Norway. Australia performs extremely well in many Perhaps more disturbing than coming sec- international benchmarks on the use of ICT. ond to New Zealand is the fact that these The private sector have adopted this technol- exports have shrunk by one-third in the last ogy, taken it up and run with it. The per- six years, leading to an increasingly negative formance of the Australian economy during technology trade balance. The report con- the 1990s has been in the front rank of the cludes that Australia is lagging in broadband OECD pack. infrastructure, with only one per cent of Ms GILLARD (Lalor) (4.30 p.m.)—In Australian households having purchased speaking to the motion moved by the mem- broadband Internet access, because it is too ber for Boothby, it is important that the expensive. It says that the business expendi- House notes that the motion tells part but by ture on ICT research and development is no means all of the story about the Austra- only 4.9 per cent of the ICT value add, that lian economy. In fact, the motion misses out growth in Australian patents is among the three of the most important parts of the story: slowest in the world and that there is a the real story about the role of information chronic shortage of ICT skills, with half of and communications technology in the Aus- Australia’s ICT businesses forced to search tralian economy; the truth about productiv- for candidates overseas. This is the real pic- ity; and the way in which the GST has ture—a picture of stagnation. mugged the Australian economy. In ad- It is interesting indeed that the member for dressing this motion, I intend to deal with Boothby has chosen to refer to the penetra- each of these matters. tion of cellular phones into the Australian In relation to information and communi- community, because it is the clearest exam- cations technology, the member for Boothby ple of the problem Australia faces with ICT. has relied on statistics collated in an OECD We are among the world’s highest users of report entitled OECD Information Technol- mobile phones but we do not make them. We ogy Outlook, and members heard him refer are not home to the prestige brands of Nokia, to that report during his contribution. Despite Ericcson and Motorola. This is the problem its being dated 2000, it should be noted that in stark relief: we are good users of technol- most of the statistics in that report are in fact ogy but we are not innovators or manufac- from 1997. However, it is not the age of the turers. statistics that is the key question. The real In its report, the BCA also concluded that, issue is the failure of the member for unlike the US, Australian productivity im- Boothby to detail the statistics which give provements are not driven by technology. the rest of the story. These statistics were Australian small enterprises, which represent helpfully collated by the Business Council of half the nation’s output, are dangerously be- Australia in its report from February this 27166 REPRESENTATIVES Monday, 4 June 2001 hind in ICT. This brings me to the second look at those things, we find that the budget important issue dealt with in this motion, did nothing for skills development and which requires a clear answer in this training and we are unlikely to see a bounce- House—that is, the truth about productivity. back in capital investment, given the average The member for Boothby asserts that Aus- annual growth in real private new capital tralia’s growth and increase in productivity expenditure in the last three years has been during the 1990s exceeded that of the US. In minus 5.1 per cent. a moment I will turn to a proper analysis of In relation to innovation, the member for that phenomenon, but first let us look at the Boothby referred to the much vaunted current Australian productivity story, and for Backing Australia’s Ability statement which that story let us look at what I am sure the the government made earlier this year. We member for Boothby would concede is a should note that, of the promised $2.9 bil- very good source—this government’s budget lion, only $159.4 million will be spent in the papers. coming financial year. All the rest is to be In relation to forecasts for the Australian spent in the out years. So there is to be no economy, in the budget we find a forecast for big spike in investment in innovation in the this financial year for growth in gross do- coming 12 months and no reason to assume mestic product of two per cent and growth in that we shall see a growth in capital expen- employment of two per cent. You do not diture or in skills and development, given need a doctorate in economics to conclude that the budget does not address those ques- quickly that, if there is going to be an extra tions. That is the productivity story of the two per cent of GDP achieved with an extra Howard government—productivity growth at two per cent in employment, then productiv- a big fat zero. ity growth for this financial year equals a big Before leaving productivity, I would like fat zero. Endearingly, we find in the budget to refer to the same Reserve Bank paper that papers a statement headed ‘A More Produc- the member for Boothby referred to, pro- tive Australia—Policy and Technology’. You duced by David Gruen and Glen Stevens. I would think that this government would be think we have to accurately ensure that their embarrassed by a zero productivity result, conclusions are before the House because but apparently not. But when we look at the they do compare the productivity growth of details of this statement, we find that perhaps the United States with that of Australia, and they are a little embarrassed because they they say: certainly are nowhere near frank about the There are two things that are strikingly differ- zero figure. Cutely, the statement says, ‘La- ent about the 1990s productivity pick-up in Aus- bour productivity growth has slowed some- tralia compared to that in the US. The first is that what in recent quarters.’ Indeed, it has the Australian pick-up occurs over the whole of slowed—it has slowed to zero. One would the 1990s expansion rather than the past four have thought you would not use the word years as in the US. The second is that the produc- ‘slowed’ for a reduction to zero; you would tivity pick-up appears much more broadly based use the word ‘stopped’. across the sectors of the Australian economy than Against this backdrop, we are asked to it is in the United States. believe that productivity growth in the next Then they go on: financial year will move from zero to 2¼ per The productivity accelerations in Australia and cent, that figure being derived from a budget the US in the 1990s are therefore very different in forecast of GDP growth of 3¼ per cent off kind. Australia produces very few computers, employment growth of one per cent, neces- computer peripherals or telecommunications sarily implying productivity growth of 2¼ equipment. In contrast to the US therefore, pro- ductivity growth in Australia has been affected per cent. Why should we believe that? We all hardly at all by the very rapid productivity growth know that productivity growth is founded on in the production of these goods. skills and development investment, on inno- vation and on capital investment. When we Monday, 4 June 2001 REPRESENTATIVES 27167

We are in a very different circumstance from years. They pointed to the exchange rate as the US when it comes to being technology evidence of our old economy status—or leaders. Unlike the members opposite, I am more particularly, the world equity market’s not content for Australia to be just a technol- view of Australia as an old economy—be- ogy user and a technology follower. cause, as the argument went, we did not have Finally, let us turn to the way in which we sufficient exposure to the new growth areas know the GST has mugged the economy and in the information and communications tech- its effect on ICT and the productivity story. nology sector, we had a trade deficit in IT The day the budget came out—the budget hardware and our proportion of IT stocks in that told us about zero productivity growth— our national share market capitalisation was another very important document came out low. It is about time we debunked some of that tells us about the strength of the econ- these myths. omy. That document is the Dun and Brad- There was much gnashing of teeth that we street review of small business bankruptcy did not have a new economy. We were wait- and debt claims. It was reported in the Aus- ing, much like the tramps in Waiting for Go- tralian Financial Review. That report says: dot. As the Economist observed recently, the The Dun and Bradstreet survey shows a 22.2 per two tramps Estrogon and Vladimir hang cent rise in bankruptcies for the first quarter of around waiting for a mysterious character the year compared with the previous three months who never turns up. We just swap Godot for ... the new economy and swap the tramps for a So we have seen a huge increase in bank- bunch of pseudo new economy cheerleaders, ruptcies. Then we see that the spokesperson and we have everyone standing around for Dun and Bradstreet predicts: waiting to see whether the new economy is We haven’t seen the end of the bankruptcy in- going to turn up. crease, at least for the next few months. What exactly was meant by the new econ- There we have it. At a time when small busi- omy? It seems that there are a number of ness could have been gearing up to make definitions. It certainly involved the acquisi- better use of ICT, they have instead been tion, processing, transformation and distri- struggling with the disaster which is the bution of information, bringing an accelera- GST. tion of technical change. The new part is the synergy between computers, software and In conclusion, the member for Boothby’s communications. But it is the measure of our motion concludes that Australia is not an old use of information technology, drawing the economy. I do not think that the old economy correlation to increased productivity, that new economy divide is a useful tool, but we allows us to ascertain if an economy is new can say that we are lagging in ICT, produc- or old. The passage of time has certainly de- tivity is in crisis and the GST has mugged bunked some of the myths about the new the economy. (Time expired) economy—certainly the myth that Australia Ms JULIE BISHOP (Curtin) (4.40 is an old economy has unravelled. p.m.)—I do appreciate the opportunity to The OECD statistics as set out in the support the motion moved by the member for terms of this motion were said to be old sta- Boothby for it enables us to consider this tistics by the member for Lalor, but she has question of old economy versus new econ- not done her homework. The OECD figures omy, which admittedly received more air in a later report, The knowledge based econ- time in previous years, particularly during omy: a set of facts and figures, OECD, Paris, the dot.com boom of 1999. Then, proponents 2000, reiterated these statistics: they are in of the so-called new economy were quick to fact current. They indicate the willingness in criticise the Australian economy as being old this country to adopt and use new technolo- compared with, say, the United States, which gies, and that has been the key to improving was undoubtedly considered the world’s productivity. It is not just the direct impact of leading new economy in the past five or so 27168 REPRESENTATIVES Monday, 4 June 2001 computers and the Internet on productivity 3.25 per cent, we have passed the enduring that matters but, as we have seen in this test of what constitutes a new economy—the country, it is also the ability of firms to or- way that IT is used to improve the efficiency ganise their businesses more efficiently as a of all parts of the economy, including the old result. economy sectors. As the Treasurer noted last As the Treasurer said in an address late year, historically the biggest economic gains last year to the Australian Business Econo- from a new technology have come not from mists’ annual forecasting conference: its invention and production but from its ex- ploitation. The value of ICT is to the extent that it reduces costs and increases output—to the extent that it Mr HORNE (Paterson) (4.45 p.m.)—I increases productivity ... thank the member for Boothby for bringing Given our open competitive economy, an this topic forward for debate in the House. environment fostered by this government’s Before I raise a few points on this matter, I strong fiscal policies, one that has captured would like to share with the member and this and used new technologies, new improve- House an old saying of my grandmother: ‘If ments, new capacities and new productivity you want to blow your own trumpet, make developments, we are a new economy, no sure you have the right sheet of music in matter how it is defined. front of you.’ In the USA, the underlying source of the I have no doubt as to why the member for American economic miracle in the 1990s— Boothby raised these matters in the House, post 1995—was widely believed to be not and I hope he will not mind if I do not share only the use of IT but also the production of his enthusiasm. It is not that I do not support computers and semiconductors. That was technology changes, technology advances. certainly the hypothesis of the member for But I do represent a regional seat. I represent Lalor. But analysts have suggested that, a region where the whole point is that tech- while the use of technology across industry nology is not reaching us all. I notice in the sectors had accelerated productivity growth, member’s motion he talks about Canberra, virtually all the progress had been concen- Darwin, Perth, Sydney, Melbourne, Hobart, trated in the durable manufacturing sector Brisbane and Adelaide—hardly the whole of with very little spillover to the rest of the US Australia. I would just like to point out to the economy. In other words, outside the manu- member for Boothby that all of Australia facture of computers, there had been no in- want to be included, all of Australia want to crease in labour productivity growth after be involved. It is certainly not happening. I adjusting for the effects of the economic cy- have no doubt why the National Party mem- cle. That is the difference with the Australian bers opposite did not put up their hands to economy. Thus, while the impact of the ac- participate in this debate. celeration of technological change contrib- This debate highlights the inequality of uted to the outstanding performance of the services to the people of Australia. That is US economy in the late 1990s, there were one of the big debates that is going to occur other significant factors that came into play. in the coming election. We do not have The adjustments in the stock market in recent services out there. I represent one of the times have caused at least a portion of the electorates where whole communities do not American economic miracle to unravel. May have a cellular phone simply because they do 2001 figures show that productivity in the not have a service. There is no point in US declined in the first quarter of 2001 at an owning a cellular phone, because you do not annual rate of 0.1 per cent compared with have access to a service. They have been told growth of more than five per cent during the by Telstra and by the government that, if year to June 2000. they want to put in an application, that com- With the forecast strengthening of the munity has to come up with $10,000 to con- Australian economy, with growth at around tribute before they get the service. The peo- Monday, 4 June 2001 REPRESENTATIVES 27169 ple who reside in the areas that have been construction. They were the three factors that identified by the member for Boothby have produced abnormally high growth. Are they the choice of two, three or even more serv- sustainable? I think not. (Time expired) ices, whereas many people in rural and re- Mr DEPUTY SPEAKER (Mr Jen- gional Australia do not even have one. kins)—Order! The time allotted for this de- We talk about competition policy. People bate has expired. The debate is adjourned in many of the areas I represent cannot be and the resumption of the debate will be competitive because they do not have access made an order of the day for the next sitting. to the service. You can talk about the Inter- PRIVATE MEMBERS BUSINESS net, but many people do not have access to th that either, because the server is so slow and Australian Army: 100 Anniversary costly. They cannot be competitive. What we Mrs GASH (Gilmore) (4.50 p.m.)—I are finding is that businesses in rural areas move: are simply not being competitive with their That this House: city cousins. It is one thing to talk about the (1)recognises the 100th anniversary of the Aus- old economy and the new economy. Why tralian Army; don’t we talk about the responsible econ- (2)celebrates not just the peaks of each wave of omy? That is what it should be. You can take activity as the Australian Army entered into the pride that Australia has evolved into the various frays, but also the times in between new economy. If you want to talk about the when our personnel were ever at the ready; last three months, if that is representative of (3)applauds not only those who joined the regular what a new economy is going to deliver to Army, but also those who volunteered or were Australia, I would suggest that the new conscripted at other times and who were pre- economy is going to deliver a number of pared to do their duty for our great nation; and headaches—with HIH, One.Tel and so on. (4)remembers the efforts of the thousands or mil- We may talk about the losses that One.Tel lions of spouses, partners, girlfriends, boy- produces for the big players. This is a gov- friends and families of those who served with ernment that prides itself on the new econ- the Australian Army because they were the omy and the fact that so many people out people who paid the most through the years so there in the new economy in Australia are that we might retain our quality of life. investors in shares. How often do we hear On 1 March 1901, just two months after the Minister for Financial Services and Federation, the states transferred 1,700 Regulation get up here and remind this regular and over 27,000 part-time and re- House and the people of Australia that we serve troops to the Commonwealth. And so have the biggest percentage of shareholders began the Army. Already, some of its troops of any economy in the world? I would sug- who had left the country under state flags gest that the HIH fiasco and the One.Tel fi- prior to Federation being declared were asco are not good news to small investors. It fighting in the Boer War. So Australia’s tra- may simply be monopoly money to the dition of assisting other countries far from Packer and Murdoch empires but to the peo- home in battles that revolved around princi- ple out there who have invested $5,000 and ples of freedom and democracy began with $10,000 because they thought that would be the formation of the Army. Much of the time good for their retirement it is a disaster. They following the creation of the Commonwealth wanted to be independent retirees, but it puts forces was spent in structuring the force for them much further behind. That is quite the long term. This included establishing the tragic. Royal Military College to ensure a continu- I would also like to mention growth. The ing supply of well-trained officers; estab- honourable member quoted from Gruen and lishing the Citizen Military Forces to ensure Stevens. The point is this. The growth in our a continuing supply of Australian civilians economy in the nineties was mainly due to who could be called upon in an emergency; growth in wholesale trade, retail trade and establishing the Australian Flying Corps to 27170 REPRESENTATIVES Monday, 4 June 2001 ensure that aviation support grew in a con- trained personnel. They went about, banging trolled fashion; and establishing a cadet drums and talking up the effort. Many in the scheme for young people to ensure a con- forces raised their hopes and expectations, tinuing supply of residents interested in while others who had seen it before got more joining the services. cynical. It seemed as though every attempt to Very soon after these steps were put in raise the standard of funding and support for place, war was declared by our allies and our defence forces was immediately fol- Australia offered to help. After the Great lowed by some kind of financial struggle for War, Australia’s identity and global reputa- the country. This kept meaning that our de- tion had been established. The men and fence forces missed out: their budgets, only women who came back from the war were recently concocted and agreed, were severely heroes, applauded by their community and trimmed or slashed. welcomed home. They also carried terrible Men and women who joined the Amy and sadness with them, great friendships and a signed long-term contracts to give the best horror of the carnage of war. They returned years of their lives to the service of our na- to their families utterly changed. Of course, tion had their conditions eaten away. Rather many did not return. like the building industry, we would see cy- We came out of this war with a modern, cles of boom and bust, where one minister well-equipped army, a very promising air would order up big on equipment but leave flying corps and the basis for a great navy. nothing for maintenance or gradual upgrade Unfortunately, as seems to have happened to and replacement. It was very frustrating be- our defence forces all too regularly, financial ing in any of the forces; yet this is where I constraints on the then government led to believe the Anzac spirit really showed enormous cutbacks in defence. And so began through. Our Amy, in between conflicts and the tradition of our Army personnel making in spite of community indifference at best, or do with less by working harder and being opposition at worst, and in spite of severe smarter. While our forces do have a reputa- shortages of staff and resources, kept the tion for innovation and enterprise, often fires burning. Each time when we needed to gained through ‘making do’, this is not the take them from the cupboard, so to speak, best way to routinely run a defence force. and dust them off and send them out to rep- resent us—in all our instant national pride— In spite of the frustrations and disap- they did the job and did it well. Each time pointments, they carried on. Over the ensu- they would be given great welcomes home ing years and many governments later, the and then be promptly forgotten, like yester- Australian Army has performed with great day’s news, until the next anniversary— credit in different arenas of conflict in the when celebrations demanded that they turn world. With each crisis or request for assis- out again. And, of course, those returning tance, Australian men and women heeded the from Vietnam did not even get that call and volunteered or agreed to do their recognition; they got abuse. And their duty. It was rare that they were fully funded, families bore the pain. prepared and supplied when emergencies did arise, and the Australian Army, because of its The Amy represented us well, because its excellent reputation and networks, could people kept on keeping on, regardless of the work with our community and other coun- odds and regardless of the lack of recogni- tries’ forces to fill the gaps. Our troops made tion or support. Mr Deputy Speaker, you can light of it in the field, using their renowned imagine that when you train your whole life humour to cope with the lack of resources. for something and a real opportunity to put that training into practice does not eventuate Several governments tried to make sure for several years—and thank God it does that our defence forces were well provi- not—it must be difficult to maintain the fo- sioned in terms of well-structured lines of cus. The men and women of our Australian supply for modern equipment and well- Amy have done this, year in and year out. Monday, 4 June 2001 REPRESENTATIVES 27171

Aside from our regular troops, the reservists This group is the friends, partners and fami- and other volunteers have also kept the faith lies of our service men and women. During and kept training. Many, doing what they each conflict where we send our troops off to saw as the right thing for their country, either represent us, they alone sit and wait to hear volunteered or agreed when conscripted to of their loved ones’ continued health. They assist the Army in its work. With whirlwind alone wait and worry, and carry the weight of training and induction, these men and the normal lives of our service personnel women too served us proudly, to great effect. while they are away. They do without mum With the community consultations sur- or dad at birthdays and school speech nights. rounding our recent Defence white paper, the They carry out the role of both parents be- degree of public support is significant. Much cause the other is not there. They wait to of this has been brought about by the efforts hear that their son or daughter is alive and of our army in peacemaking or peacekeeping well and coming home. They carry a differ- missions to neighbouring countries and to ent, and sometimes tougher, load. During others further away. Especially with East times of peace, they are the sounding boards Timor there has been an opportunity for or- for the frustration of service life. They are dinary Australians to view the work of our not paid as services personnel but they are Army, Navy and Air Force personnel and be part of the service community. mightily proud of them. Even any people As part of our plan to reinvigorate our de- who previously saw our defence forces as fence forces and put their standing back ‘boys with toys’ now agree they have an im- where it belongs, we are encouraging more portant role to play in our region and in other of our best to try the services as cadets. In developing or troubled countries of the one of the last Labor squeezes, Gough world. Whitlam abolished school cadets and with- As a result of this widespread community drew ADF support for them outside of support, and the good economic management school. An announcement yesterday by my of this government, we have developed a colleague the member for Bradfield and Par- plan. This plan is to make sure that our de- liamentary Secretary to the Minister for De- fence forces get what they need, as they need fence re-established funding for the Austra- it—with all the training and support that is lian Service Cadet Scheme to the tune of $30 appropriate. A major part of this plan is to million per year, commencing in four weeks ensure that it works financially, no matter time, and will ensure high-level training, what. No longer can we afford to continually uniforms, proper equipment, and access to disappoint our service men and women. If military personnel. our youngest, strongest and brightest are In Gilmore we have a large Navy defence going to sign up to serve their country for base, HMAS Albatross, but we are also very several years, they need to know that their proud of our Army parachute training school. conditions include the best training and sup- They are wonderful, fit, motivated, intelli- port that we can give them. They need to gent, positive people who make a real con- know that there will be secure positions for tribution to the Shoalhaven community. In so them and that they will be properly prepared many ways we are working to ensure that the to meet the challenges along the way. We Army will be there in another 100 years and need to build on our nation’s pride in its that we Australians will still be very proud of Army and we want people to aspire to join- them. ing the Army as a career. I will not be here to Mr Cameron Thompson—I second the see it but I expect the Australian Army will motion and reserve my right to speak. still be at the forefront of our nation’s inter- (5.00 p.m.)—I national contributions in another 100 years. Mr EDWARDS (Cowan) am happy to speak to this motion on the There is a group of people whom the pub- 100th anniversary of the Australian Army lic and government often forget in all of this. 27172 REPRESENTATIVES Monday, 4 June 2001 and I would like to put it into context by I guess it would be remiss of me, in talk- quoting a poem entitled ‘A Soldier’: ing to this motion, if I did not mention my I was that which others did not want to be. own unit, the 7th Battalion, which was I went where others feared to go. formed in Puckapunyal, Victoria, on 1 De- cember 1965. This battalion subsequently And did what others failed to do. served twice in Phuouc Tuy Province in I asked nothing from those who gave nothing. South Vietnam. The first tour was in 1967 And, reluctantly, accepted the thought of eternal and the second in 1970. Both tours lasted loneliness—should I fail. approximately 12 months and, during that I have seen the face of terror, felt the stinging time, the 7th Battalion, Royal Australian cold of fear, and enjoyed the sweet taste of a mo- Regiment, was deployed on 48 operations. ment’s love. This battalion has very proudly as its mascot I have cried, pained and hoped. a pig—and a great pig it is! But, most of all, I have lived times others would As I am talking about 5/7 Battalion I will say were best forgotten. also say that the current RSM of the Army, At least some day I will be able to say that I was Brian Boughton, is a former 7RAR man. I proud of what I was—a soldier. served in Vietnam at the same time as he did. That is a poem written by a fellow by the I know that every member of the 7th Battal- name of George Skypeck. I picked it up on ion is very proud of the RSM the Army has the web page put together by Ern Marshall at the moment, because he is indeed a good from Sunraysia. He put this web site together digger and a man who holds some very high because, he said, of the lack of information standards about heritage, courage, humour, about the Australian involvement in Vietnam fitness and professionalism. These are the and for the benefit of all veterans, and maybe qualities that the Australian Army has had in for the education of some of the younger times of war and peace over 100 years, and generation. It is interesting, talking about the these are standards that must be maintained. younger generation, to recall another quote, What is good about the Australian Army is from a very famous person, George Wash- the character of the men and the women who ington. He said this: serve in the Australian Army. The decisions The willingness with which our young people are that we make here are merely decisions in likely to serve in any war, no matter how justi- support of that character. fied, shall be directly proportional as to how they I only want to speak for five minutes be- perceive the veterans of earlier wars were treated cause my colleague wants to say a bit more and appreciated by their nation. than I do. I think we should look with pride That is a quote that features on the web page over the 100 years of our Army—not just at of the TPI veterans—a very good web page the men and women who went away, but, as with a lot of very interesting information. the mover of the motion has said, at the In speaking to this motion, I want to bring strengths, the succour, the support and the it down to what it is about—our Army. We encouragement that they got from their loved talk about our Army and we talk about the ones at home. When a soldier is away, the men and the women who serve, and who person who feels it most is the mother, the have served over 100 years, in our Army. father, the husband or the wife, and they are The Australian Army is, in relative terms, a the people who have been an immense young army, just as we are a young nation. strength to our soldiers over 100 years. I And as we are a young nation with a great support this motion. love for freedom we should always remem- Mr CAMERON THOMPSON (Blair) ber the price that so many soldiers, so many (5.06 p.m.)—Listening to the member for men and women, have paid for the freedom Cowan and to the member for Gilmore, I am that we enjoy in this nation. reminded that I am one of the great benefici- aries of all the efforts that have been put in Monday, 4 June 2001 REPRESENTATIVES 27173 by the Army and other members of the Aus- ates uncertainty for the troops and some need tralian defence forces over the years. This is of reassurance. I am very pleased with the a good opportunity for me to say thank you way that the government has responded. By for that and to thank you also on behalf of being there and by giving some clear direc- my whole electorate of Blair. There have tions, we have been able to provide some been great achievements of the Army in its certainty for those people. 100-year history. I am one who has benefited We look with confidence to the future de- and I feel very humbled by being able to fence of our nation. As a result of the gov- speak on this motion and give credit to the ernment’s white paper we have seen a Army for its achievements. change: there will be six battalion groups, During the East Timor deployment, I went each of around 1,000 personnel, which will to the RAAF base at Amberley where people be held at no more than 90 days notice to were receiving news at Christmas time of move and at most 30 days. The 3rd Brigade, their loved ones in East Timor. The point that based in Townsville, will continue to provide the member for Cowan was just making was light air-mobile forces available for immedi- well and truly etched on the faces of the la- ate deployment; the 1st Brigade, based in dies and the children who were there—there Darwin, will provide light mechanised and was no doubt it was a very demanding time light armoured forces; and the 7th Brigade, for them. When they were being reminded based in Brisbane, will provide a motorised like that of their loved ones at Christmas formation comprising both full-time and re- time, you could see just how deeply they serve units. Task forces for particular contin- were concerned and were hoping for all the gencies would accordingly be assembled best for their loved ones abroad. I am re- from these ready forces to meet the specific minded, by an article in the Australian on 9 needs of each operation. Under the new plan, March, that: the operations of the Army will also include The Australian Army, 100 years old last week, a Special Operations Group, which will in- fought in six wars in its first seven decades, but in clude the current SAS Regiment, a high the next three fought in none at all. Instead of readiness commando battalion and a reserve wars, the army has increasingly been called to or part-time commando battalion. That plan- take part in peacekeeping and peace enforcement ning has been received well by, and has pro- operations, still dangerous, but with a much less vided something of a boost to, the troops that intensive tempo. I run across in my duties. That is the kind of critique that a newspaper The 100th anniversary of the Australian writer might make about the position facing Army is a great opportunity to reflect on its the Army today, but no doubt the difficulty achievements. Whether you are looking back that the Army faces today is in planning for at World War II, the Kokoda Trail, Gallipoli the future in a world that is far less certain and the forming of the Australian spirit at than it was. Going back through the history Anzac Cove and those sorts of issues or of it all, one of the other items I found said: whether you are looking into the future, I am sure that the Australian Army is going to For the Australian Army, the withdrawal from continue to do this country proud. Its mem- Vietnam represented the end of 33 years of con- bers are tremendously well accomplished tinuous operational duties, which had commenced and have great resources and great capacity. with World War II, continued through the occu- (Time expired) pation of Japan, the Korean War, the Malayan Emergency and the Indonesian Confrontation to Mr PRICE (Chifley) (5.11 p.m.)—Mr the Second Indo-China War in Vietnam. Deputy Speaker Adams, I think you may understand why I have not contributed to this So pretty much for 33 years there was a full- debate a little earlier, but I must say that I am on direction right before the Army that it had very pleased to. I would like to congratulate to confront. Now it is in a difficult position the honourable member for Gilmore in put- where it is changing direction, and that cre- 27174 REPRESENTATIVES Monday, 4 June 2001 ting forward this motion. It is a fact that she in Somalia. The Americans are great nine to takes a great deal of interest not only in the five soldiers. They are very reliant on the defence facility located in her electorate but equipment that they have. Australians, on the in defence matters generally. other hand, probably do not have equipment I wish I could bring to this debate the ex- as good as the Americans but they are 24- perience of my friend and colleague the hon- hour-a-day soldiers. They do their soldiering ourable member for Cowan, but I cannot. and they take command of the area in which But what I can say is that I am a great fan of they serve. the Australian Army. I think I am the only As we have cut back our Defence Force member of this parliament to have seen the numbers, so it is that we have become in- Army in operations in Somalia, Rwanda, creasingly dependent on the community. As Bougainville and also East Timor. It is a other speakers have said, and I agree with matter of deep regret to me that I missed out this, our army enjoys widespread community on an opportunity to see them in Cambodia. support. That support is rooted in what vet- Whilst this motion reflects well on every erans have done over the years, whether it member of the Army, others too from the has been in the Boer War, which strictly ADF serve this country exceedingly well. speaking is not recognised in this motion, or I will always remember that in Somalia, in World War I, World War II or the emer- everywhere we went, the elders pleaded with gencies in Malaysia, Vietnam and some of us for the Australians to stay longer than was the other countries that I have mentioned. their scheduled period of service. They were The Army is dependent on the support of all spoken of so highly not only for the things Australians. I feel very sorry for the veterans that they were trained to do but indeed for of Vietnam, who were given no choice about the things that they were not trained to do— whether they should or should not go, be- that is for setting up a justice system and for cause that is the nature of service, and were getting the police area of operations func- not recognised. (Extension of time granted) I tioning. Rwanda was no different. I am thank the House, in particular the Minister pleased to say that I shared a bed there with for Veterans’ Affairs, who is at the table. former Speaker Halverson, and it was an Those veterans were not given the home- experience quite different from Somalia that coming that they deserved. As soldiers they I will never forget. Bougainville had its performed exceptionally well in Vietnam, challenges, and of course East Timor, our and I think it reflects on all of us that that most recent deployment, was something recognition took so long in coming, but I am again very different. They do us proud. pleased to say that it did come. When we talk about our Australian de- I think the minister at the table would be mocracy, people who volunteer to serve ei- the first to concede that I rarely flatter him, ther in the full-time Army or the reserves are but I do want to pass on my sincere appre- the pillars of this democracy. They do not get ciation for the access that I have had to the a vote as to whether or not they should be current TV series on the ABC about 100 deployed. There is no committee system. years of Australians at war. I would com- They are people who are pledged to uphold mend it to every honourable member: it is an the will of this parliament without question. excellent series. I appreciated very much the Over the years they have done it, and they series on the American Civil War. This of have done it in a distinctive way, in a very course is more current and I think is even Australian way. In fact, if we want to talk better than the American series, although I about the Australian character, we cannot must confess I have not seen the last episode. really do that without talking about Gallipoli So we really do need to rejoice in the service and without talking about the Anzac spirit. that has been provided by so many over 100 They make exceptional soldiers. Again, there years. As other speakers have said, there are was a stark comparison with the Americans always spouses or girlfriends or boyfriends involved—there are always families in- Monday, 4 June 2001 REPRESENTATIVES 27175 volved—and those Defence people could not aside, this is a strongly supported bipartisan do the job that we ask of them without their motion. I know that many Labor members on families’ support. the Defence Subcommittee of the Joint In the remaining time available to me I Standing Committee on Foreign Affairs, De- want to mention a passion of mine, the cur- fence and Trade would have wished to par- rent situation of our Australian reserves. In ticipate in the debate and associate them- that 100 years we have a greater history of selves with this motion. I congratulate the citizen military forces than of regular army honourable member for Gilmore for bringing personnel. The white paper made a very sig- this very worthwhile motion before the nificant change in the role of the reserves: House. I am sure that, if everyone had the that they would no longer be an expansion opportunity to speak, it would be unani- force for the regular Army. Everyone con- mously adopted. cedes that in East Timor they were used as Mr DEPUTY SPEAKER (Hon. D.G.H. slots to fill places in the regular Army. I Adams)—Order! The time allocated for this think it is a great pity that the minister at the debate has now expired. The debate is ad- table cannot stand up in this parliament and journed and the resumption of the debate will tell us what the role of the reserves will be. be made an order of the day for the next sit- Having spoken to a number of reserve units ting. and a number of state branches of the Aus- ASSENT TO BILLS tralian Defence Force Reserves Association, I can say that their bottom line is that they Messages from the Governor-General re- want to be deployed in formed units. That ported informing the House of assent to the means that they have to have the equipment, following bills: the manpower and the investment to be able Compensation (Japanese Internment) Bill 2001 to meet the requirements to be sent in formed Family and Community Services and Veterans’ units. Affairs Legislation Amendment (Further Assis- tance for Older Australians) Bill 2001 The problem with slot theory is that, un- less they are prepared to take a reduction in Family and Community Services Legislation rank, the only people that are being utilised Amendment (One-off Payment to the Aged) Bill are the privates; NCOs and officers are not 2001 being utilised. I can say that the reserves as- Taxation Laws Amendment (Changes for sociation and the reserves are prepared to Senior Australians) Bill 2001 contemplate quite radical change, and radical GRIEVANCE DEBATE change is required because, after all, there is Question proposed: an establishment of something like 27,000 That grievances be noted. and only 16,000 fronting up and we will have to go beyond those numbers. But it is Health: HIV-AIDS pointless having a reserve unless we can Ms MACKLIN (Jagajaga) (5.22 p.m.)— have formed units. I know that in exercise Last Friday Nkosi Johnson died peacefully in Tandem Thrust a new role has been tested for his sleep aged only 12 years. Nkosi was born part of the Townsville reserve unit, but it is a with HIV, and in the words of Nelson Man- lesser role than that of the regulars; it is one dela: of protection—a higher readiness required ... his life and example spur us on to be strong, and more training but no extra money. If that resilient and vigorous in our fight against this is going to be the role of the Army reserve, dreaded infection. ... He has earned the right to be we cannot have all the reservists in a protec- accorded all honour, dignity and respect. tion role. I think it is important that the min- Nkosi Johnson ignited compassion within us ister at the table stand up and give, as soon as all when last July, at the opening of the 13th possible, a clear and definite explanation— international AIDS conference in Durban, he an outline—of exactly what the role of the drew attention to the impact of the disease on Australian Army reservists is to be. That children. In his speech, he urged the South 27176 REPRESENTATIVES Monday, 4 June 2001

African government to begin providing HIV- it would have been impossible to fund the positive pregnant women with drugs to re- network of needle and syringe exchange duce the risk of transmission of the virus programs that have led the world and that during childbirth. More than 70,000 babies have, to a substantial extent, kept AIDS out will be born HIV positive this year in South of the drug using population. Today, antiviral Africa, babies like Nkosi was. He was a drugs supplied through the Pharmaceutical powerful force in the struggle against AIDS, Benefits Scheme have also slashed the death and we mourn his death—especially as to- rate to a fraction of what it was. morrow marks 20 years since HIV-AIDS Twenty years after the epidemic was first was first identified in a two-page article documented, and 17 years after our own first published in a little-known US medical jour- AIDS death, it is easy to get the notion that nal. in Australia this is a battle won, that our The 20th anniversary is an appropriate policy has worked once and for all and that time to consider Australia’s response and to AIDS is all but over. But it is not. Just as we identify the challenges that still confront us. must acknowledge our achievements, we In 1981, the world had no notion of the dis- must be forthright about those areas where ease that had been growing unknown and our response has fallen short. Rates of un- unchecked for decades. It is an indictment of protected sex are on the rise. One of our the world’s medical system that, despite the most eminent HIV social researchers, Profes- millions already infected in Africa, nobody sor Sue Kippax, estimates that the rate of realised the disease existed until it was dis- unprotected sex has doubled in the last five covered in Los Angeles and New York. years. This should worry us all. There is, as When the public reaction finally came, it yet, no clear evidence that this rise is trans- came with a vengeance. The world went at lating on a national basis into new infections. once from ignorance to panic—two states The researchers explain that people appear to which, in the case of infectious disease, tend be adopting various strategies which may, or to be closely related. From the extreme right may not, minimise the risk of transmission. came calls for gay-free zones, for antidis- But if this trend continues it is inevitable that crimination legislation to be repealed, for the infection rate will begin to rise again. homosexuality to be made once more a The challenge facing the prevention effort crime. today is greater than it has ever been. Many But there was another response—one feel that, after more than a decade and a half, which was much quieter, more considered the safe-sex message is showing signs of and far more reasonable. To Australia’s wear, that the target audience is no longer credit, both sides of parliament rejected the listening quite so hard. HIV educators in temptation to pursue, in the tragedy of the Australia’s community based organisations AIDS crisis, partisan political conflict and know that not only do they have to continu- advantage. With very few exceptions, Aus- ally reinvent their message to keep it fresh tralia chose the civilised course. Australia’s and relevant to their communities but also Labor health minister throughout most of the they have to deal with a sense within gov- 1980s, Neal Blewett, deserves the credit for ernments that the threat is now over and that Australia’s success. As Minister for Health, the kind of courageous honesty which could Neal Blewett put in place the enlightened be supported in the early 1980s is a bit too and continuing partnership between govern- challenging now. Labor will continue to sup- ments, doctors, scientists and the affected port responsible community based education, communities that underpins Australia’s ap- because we know that the principles which proach. Through his leadership and with underpinned Australia’s success were exactly cross-party support, the Australian govern- those. We also know the horrendous impli- ment was able to fund safe-sex programs cations of seeing that unravel. which talked explicitly, as they had to, about homosexuality. Without this united approach, Monday, 4 June 2001 REPRESENTATIVES 27177

As we mark what has become the de facto ternational pharmaceutical companies were birthday of the AIDS epidemic, let us dwell taking legal action to defeat the Medicines on some of the figures and reflect for a mo- and Related Substances Control Act passed ment on the appalling hurt and loss that these by the South African parliament in 1997. figures represent. In Australia by the end of That act provides a framework for South September last year 5,946 deaths from AIDS Africa to legally import or manufacture vital had been reported. By now, that figure will AIDS drugs at prices far below those which almost certainly be over 6,000. Another the pharmaceutical companies were prepared 12,000 are estimated to be living with HIV to sell them for. Countries like South Africa infection. By the end of 1999, there were 1.3 and Papua need medicines to million people living with HIV in Central fight HIV-AIDS, and they are simply unable and South America, 5½ million in South and to pay the $10,000 per person per year cost South-East Asia, 24½ million in Sub- that is charged in the developed world. The Saharan Africa; and, worldwide, 34 million Australian Labor Party certainly believes that people. By the end of 1999, almost 19 mil- developed countries should not be preventing lion people had already died—5½ million of the importation or production of these drugs them in that year alone. by developing countries because of an argu- Against the terrible calamity of global ment over intellectual property rights. AIDS, Australia’s epidemic may appear, by With tens of thousands of people facing comparison, a small affair—though, of death, another approach must be found. We course, it has not seemed that way to those believe Australia should support the intended who have died or those who live with it. But, flexible interpretation of the World Trade if that contrast reminds us that Australia is a Organisation agreement on trade related as- pretty good place to live, it also should serve pects of intellectual property rights—TRIPS. as a trumpet call that we must not, in all hu- The TRIPS agreement specifically allows for man decency, forget those other inhabitants countries to take action in the case of a na- of our world who cannot possibly fight such tional emergency, and few would argue that a dreadful battle on their own. In particular, the HIV-AIDS crisis does not fit into that Australia has a responsibility to assist our category. nearest neighbour, Papua New Guinea, to All over the world, the response to AIDS respond to this epidemic. Over seven per has to continue. The story of the ongoing cent of people attending the Port Moresby battle between the impulses of fear, repres- Hospital’s STD clinic are HIV positive, and sion and neglect against care, compassion for some years AIDS has been the leading and action will also continue. Tomorrow cause of death in that hospital’s medical when we mark the 20th anniversary of the ward. Twenty per cent of sex workers have AIDS virus, let us remember the spirit of the virus. The Fly River region immediately Nkosi Johnson and the millions of other vic- to the north of the Torres Strait has been hard tims of the AIDS virus and let us renew hit. Nobody who has stood, as I have, on the Australia’s commitment to care, compassion northern beach of Saibai Island and looked and action. across the narrow stretch of sea to the Pap- uan coast can fail to recognise the extraordi- Politics and Politicians nary risk to Australia’s Aboriginal and Torres Mr CHARLES (La Trobe) (5.32 p.m.)—I Strait Islander people. We have a legitimate rise in this grievance debate to say that I de- self-interest in helping our closest neighbour. plore the national negativity towards politi- Just this year the Labor opposition urged cians and politics that is discouraging our pharmaceutical companies to drop litigation youth from studying and participating in po- against South Africa and to allow developing litical activity—action which has crept into countries to produce or import affordable our national psyche. It is clear that ‘kick the medicines to fight serious diseases such as polly’ has become a national sport. Some 32 HIV-AIDS. We were concerned that 39 in- years ago when I came to Australia perma- 27178 REPRESENTATIVES Monday, 4 June 2001 nently, I think—and I have no data to abso- people. Those who were welded on are lutely prove it—the political paradigm went flaking off—and rapidly. something like this: 40 per cent of the popu- Tribalism is dying, and I suspect that as lation supported the Liberal Party, the Coun- time goes on it will further erode. The politi- try Party or a combination thereof, 40 per cal and ideological divide between, on the cent of the people supported the Australian one hand, Liberal conservatives and, on the Labor Party and about 20 per cent of the other hand, Labor progressives, the right of people made up their minds during an elec- centre versus the left of centre, has been and tion campaign or before an election cam- continues to be narrowed. If you just look paign and decided the outcome of elections. generally—and I am not talking about the People were wedded to a party and to a po- day to day argy bargy of this policy, that litical philosophy. I admit that that was a policy or another policy but generally world which was a bit slower than our world speaking—there are very few irrational today. economists in this House of Representatives. One of the things that really excited me In industrial relations, even, the Australian about moving to Australia and becoming, of Labor Party is dominated to an extent by the choice, an Australian was the fact that the trade unions and the trade union movement. family was the centre of the world, the centre It is not so dominating of the Liberal Party. of our Australian universe. It was everything. Nonetheless, none of us wants to go back to The family worked together or participated the centrally controlled system where some- in work activities together, participated in one decides what everyone in the country is sport together and went to school and par- paid every few months. Remember the old ticipated in the school environment together. national wage cases. Can you imagine how All the entertainment and playtime was or- many national wage cases we would have ganised around the family and groups of today? I cannot. We talk about catch-up families. As I said, it was a quieter, nicer wages for those who are low paid who do not time. But we have gone through, as have the have as much opportunity to go out and ne- rest of the world, some very substantial gotiate with their employers as do others, changes. In a sense, those times seemed and that is highly appropriate, but I cannot more to be times of certainty than times of imagine us talking about another national question and change. We seemed to have a wage case. So the divide is narrowing. better idea of what life was going to be like At the same time we seem to have reached tomorrow and the day after than we do today. a point where the public is disengaging with So that political paradigm, unfortunately, has us, and we wind up not as victims but as a disappeared into the sunset, like some class of people who no longer seem to be as American western movie star at the end of a respected as we were 100 years ago, when film. our Constitution came into effect. I remind Today—and again I have no absolute data you that people went to the polls and voted to prove my contentions but it seems like it for that Constitution, and they were pretty to me, anecdotally at least in my electorate excited about Federation. It dominated that and electorates surrounding me—you could time in our past. In 1901 it dominated the say that probably 30 per cent of the popula- public and private debate. tion is wedded to the Liberal Party or the Politicians are no longer as valued as they National Party and 30 per cent of the popu- were in those times. That is not all our fault lation is wedded to the Australian Labor but partially our fault. There have been, as Party. That leaves 40 per cent who are not we all know, issues of politicians with snouts wedded to anyone and therefore able to make in the trough, and none of us here supports up their minds prior to or during an election that. In fact, I would say that every single campaign about exactly what it is they sup- person who comes into this place does so not port—what they want to see come out of this for personal gain but to try to do some place where we are representatives of the Monday, 4 June 2001 REPRESENTATIVES 27179 good—some good for the community that actively participate in the political debate they represent and for the nation of which and in the political process, because they are they are so very much a part. But along the our future and without them we will be way a few have made mistakes. We are hav- nothing. (Time expired) ing a debate at the moment about the super- Hobart: Australian Antarctic Base annuation that parliamentarians have. That debate should and will continue, and I hope Mr SIDEBOTTOM (Braddon) (5.42 that we can reach a resolution that will make p.m.)—I commend the comments of the people think more, rather than less, of their member for La Trobe. I would like to take political representatives. this opportunity—and I am sure you, Mr Deputy Speaker Adams, as the very active One of the challenges for us is to try to member for Lyons, will join with me and reinvent a sense of community. If we could with my other Tasmanian colleagues in reinvent a sense of community, perhaps we this—to reinforce and advance the case by would find that people had more faith in the the Tasmanian government, presented to the political class, in their representatives in both Australian Antarctic Division, to secure the House and the Senate. One of the things Hobart as the Australian base for regular that make it very difficult for communities is flights to the Antarctic. The Antarctic indus- regional shopping centres. I have spoken try is worth around $93 million a year to before on this and said that there is no Tasmania. Tasmanians have invested a great greater deterrent to sense of community and deal in infrastructure, expertise, experience community activity than the impersonalisa- and support for research into and of the Ant- tion of regional shopping centres—conven- arctic and of course the Southern Ocean. ient they might be, but community oriented they are not. Hobart is the current focus of Australia’s Antarctic program. There has been a con- The community—at least my commu- scious effort and considerable investment by nity—is saying: ‘Perhaps we have had too successive federal governments, including much change. We would like to slow down a this government—and I would like to ac- bit. We are frightened of constant change. knowledge the work of the member for We want a rest.’ The problem is, with the Denison, Duncan Kerr, in particular in the world moving as fast as it is and communi- last government—to locate important and cations expanding at the rate that they are, if allied research organisations in Hobart. This we slow down and we stop changing as the has created a synergy of Antarctic and rest of the world changes, we are going to Southern Ocean science education and get run over in the rush. We will lose our training. Hobart has the infrastructure to standard of living, we will lose our place in support Australia’s Antarctic program. This the world, we will lose the advantages that infrastructure includes cooperating scientific we have as one of the world’s great democ- institutions, and I believe there are some- racies. The rich-poor divide is hurting the thing like 12 significant Antarctic and community’s perception of politicians. In a Southern Ocean organisations and their ex- sense too we are producing a ‘gimme’ soci- pertise located in Hobart and Tasmania. ety. The personnel and facilities for logistics It behoves all of us in this place and the support and the capacity to quickly and pro- journalists who report on what we do to be- fessionally assist medical evacuation is come more positive in our attitudes, more greatly enhanced because of their positioning positive in our outlooks and for the journal- in Hobart. Demand from Antarctic research ists to just once, for a change, report some of organisations in Hobart for supplies has re- the positives and the cooperation that occurs sulted in the development of commercial in this national parliament, so that we can expertise and supporting infrastructure encourage our young people to go and study throughout Tasmania capable of meeting the history, to become part of it themselves, to needs of the Australian and international 27180 REPRESENTATIVES Monday, 4 June 2001

Antarctic communities. The business of Ant- closer to Casey station than Albany, which is arctic resupply in the state exceeds, as I also vying for the tender for the air link to mentioned, $93 million per annum and Antarctica. makes a significant contribution to Tasma- Recent Bureau of Meteorology studies in- nia’s economy and Tasmanian employment. dicate that the flying distance to Casey is Recognising this, Tasmania acts as a part- similar for Hobart and Albany as departure ner in the promotion of Australia’s role in points. However—and this is very signifi- Antarctica. The Tasmanian government pro- cant—meteorological modelling indicates motes Hobart as a gateway to Antarctica, that Hobart would be some 28 minutes faster contributes to the establishment and opera- on the return leg than Albany. The compara- tional costs of Antarctic secretariats, assists tive proximity of Hobart to Christchurch— in meeting the cost of Antarctic related around three hours—creates opportunities seminars, contributes to scientific develop- for emergency aircraft sharing with the ment and hosts international visitors. Hobart Antarctic programs operated from that city. is proximate to the eastern seaboard and the The Australian Antarctic territory of George majority of Australia’s population. In excess V Land could be opened up for research of 95 per cent of Australia’s scientific com- purposes with an air link emanating from munity with specialist skills in Antarctica Hobart. related fields are located on Australia’s east- Hobart has a history of supporting Ant- ern seaboard. In fact, over 65 per cent are arctic expeditions, and the Tasmanian popu- based in Tasmania. lation is positively aligned to the close asso- It is generally agreed that a more flexible ciation with Antarctica. Hobart, it is argued, transport system is needed to service Austra- is the logical choice for the Australian em- lia’s Antarctic program. The transport system barkation and arrival point. It is the logical suggested by ASAC’s foresight report Aus- choice because the federal government is tralia’s Antarctic program beyond 2000 is a committed to enhancing Tasmania’s role as mixture of air and sea. The federal govern- Australia’s Antarctic capital. That is where ment’s response to the report stated: the infrastructure is, that is where the exper- In cooperation with the Tasmanian government, tise is and that is where the experience is. the Howard government will pursue efforts to Hobart already contains, as I mentioned, the further develop the role of Hobart as a gateway to most significant Antarctic infrastructure. Antarctica. This will be an important factor when Major additional costs would be associated examining international cooperative arrangements with duplicating this infrastructure or trans- for scientific research and logistic support as porting goods, services and personnel to an agreed in other recommendations. alternative location. The Tasmanian govern- This statement affirms that the federal gov- ment is committed to promoting Antarctic ernment supports Hobart as the Australian issues. This promotion benefits Australia’s Antarctic base. reputation, as Hobart is the nearest Austra- The Hobart International Airport is a 24- lian city to Antarctica. Flying the great circle hour operation with full international facili- route means that Hobart is closer to the Aus- ties. currently has the infra- tralian bases than alternative locations, such structure and landing capacity to support the as Albany, and the Hobart airport has the proposed Antarctic program, as well as hav- facilities and the ability to handle the inter- ing both customs and quarantine facilities continental air links. and staff based in Hobart. The Bureau of I mentioned before that Hobart has very Meteorology’s Antarctic weather forecasting strong links with Antarctic and Southern unit is based in Hobart. Hobart is the closest Ocean organisations. I think it is enlighten- Australian port to Antarctica. The distance ing to review some of these. There is, of between Hobart and Casey is less than that course, the very important Australian Ant- between Christchurch and McMurdo, a route arctic Division, the Australian Antarctic Data already in operation. It is some 48 kilometres Centre, the Commission for the Conservation Monday, 4 June 2001 REPRESENTATIVES 27181 of Antarctic Marine Living Resources, the south-east of the state is being looked after Australian Bureau of Meteorology’s Antarc- and the north is being forgotten that it could tic Branch, CSIRO’s Division of Marine Re- well be time to actively consider the possi- search, the Institute of Antarctic and South- bility of a new state for North Queensland. ern Ocean Studies, the Antarctic Cooperative That is a big ask, but the frustration that we Research Centre, the Council of Managers of have as North Queenslanders in relation to National Antarctic Programs, the Tasmanian the non-delivery of essential services and Polar Network, the Antarctic Adventure, the projects to the north may bring on the fight French Polar Institute and the International which might lie ahead. In my own region, as Association for Cold Regions Development an example, there are always major projects Studies—all very important and significant that are needed—standout projects. On each organisations who have the infrastructure, one of the four major projects in the region, experience and expertise in Hobart. the state government has said no to North I also understand that the Antarctic tour- Queensland. That is not acceptable. The state ism group is about to announce the commis- government lets the north down continually. sioning of a consultant to develop a market- Let me outline the projects and you will see ing and promotion plan to further highlight the importance to the north and you will see to the people of Tasmania and tourists the why our area of the state is angry that the state’s unique Antarctic position. Tasmania, state government is not supporting North and particularly Hobart, has a long associa- Queensland. tion with Antarctica. The state government’s Let us look at the port access road. The submission to the Australian Antarctic Divi- proposed port access road for the port of sion to secure Hobart as the Australian base Townsville has been on the agenda for some for regular flights to the Antarctic not only time now. It was principally the foresight of has the historic relationship but also the in- the former chairman of the Townsville Port frastructure, the expertise and the experien- Authority, David Carmichael, who saw that tial relationship required for it to do the job developing a new port access road on the and to do the job into the future. The Ant- eastern bank of Ross River would open up arctic region is very important for a variety the port and bring new business and new of reasons and Tasmania has already played industry to the Stuart area. It was a case of its part in developing this remarkable area— what came first, the industry or the port ac- this remarkable resource—for our future. cess road. It was David Carmichael’s vision The question of safety, both for the people that you were proactive, you looked ahead who work there and the people who supply and built something, and that brought pros- the people who carry out the research and perity to the region. Everybody agreed with work in Antarctica, is very important. Hobart David Carmichael, except the state govern- as a base for flights into Antarctica makes ment, which put in an environmental impact sense. The infrastructure is there and the study on the project. That was highly suc- argument is there. cessful—it slowed everything down by four Herbert Electorate: Infrastructure years. It took four years to do an environ- Projects mental impact assessment. It was ridiculous. Everybody knew what was happening: the Mr LINDSAY (Herbert) (5.52 p.m.)— state government did not want this project to This is the grievance debate and boy, have I go ahead. Now they have put another three- got a grievance! I have a grievance along year delay on the project. Meanwhile, the with some 500,000 other Queenslanders, Townsville port, the people of Townsville principally in North Queensland. My griev- and the residents of Railway Estate, South ance relates to the shabby treatment we are Townsville and Oonoonba all wait. The city receiving from the state government of does not progress in the manner that it could Queensland. North Queenslanders are so with the new access road. It is a crying concerned at this point about the way that the shame. That port access road should proceed 27182 REPRESENTATIVES Monday, 4 June 2001 immediately. It should be a road of national Townsville and Thuringowa, but the state importance. The Commonwealth govern- government says no. It is extraordinarily ment stands ready, if the state government frustrating when we have one of the most declares it tomorrow as a road of national important road projects in the north stalled importance, to contribute 50 per cent to the by the state government. capital cost of the project. We stand ready Another major project is baseload power now, but the state government sits on its for the north. This does not directly touch the hands and says, ‘No, we will continue to de- electors of Herbert, Leichhardt, Dawson or lay.’ Kennedy, but on the other hand it does. The Look at the major tourism project in the government promised us baseload power in Cromaty wetlands. That has been a vision of the north by the year 2003. They have now a person you would know, Madam Deputy put it out to the year 2005, and that is not Speaker Kelly—Mark Stoneman. That proj- acceptable. We need cheap, reliable, on the ect would develop a tourism attraction of ground power in North Queensland now. The international significance, another Kakadu list goes on. At the ocean terminal for the National Park, in Queensland. The Com- port of Townsville, we are having American monwealth stands ready to provide $1.7 mil- ships which bring $1 million a day to the city lion as its share from the Natural Heritage turned away from the port because we do not Trust, which has been expanded and ex- have the wharfage facilities. We are having tended in the recent Commonwealth budget. tourist ships turned away from the port. And But what is the state government’s position? of course the state government contributed to They are required to contribute $800,000 and that by last year taking all of the cash out of the answer is no. The answer is no to the the Townsville Port Authority. They are cash most significant new tourism development strapped. They cannot provide the facilities that the north has seen. in their own port. Where did the state gov- In relation to the Douglas arterial road, ernment take it? They took it to Brisbane, many people in Townsville and Thuringowa and the north once again misses out. will know of the importance of this particular There were no guarantees for our rail road. It is a future national highway. It will workers. That is something we are very con- not be a national highway for 10 years, but cerned about. And where is the promised tilt the Commonwealth has the vision that, if we train to North Queensland? There was a big can build that road now, it would help many fanfare on that, but it did not happen. In people in the city. By putting a bridge across health, where is the support for the acute Ross River, it will cut off seven kilometres spinal care and the back pain clinic at the for people from the upper Ross in access to new general hospital? Nothing. In education, the new general hospital being built at James where is the Douglas state school that was Cook University. It will fix the traffic snarls promised? Where is the Oonoonba state at the Nathan Street intersection which are school that was promised in the last election developing as that intersection becomes campaign? On the backburner. overloaded. It will have a cost-benefit ratio It is the towns and cities of the state that of—listen to this—13. That is unheard of. produce the wealth of Queensland. It is not Governments build roads when they have a the metropolis that now extends from per- cost-benefit ratio of one; this has a cost- haps Noosa to the border. It is the towns and benefit ratio of 13. The Commonwealth cities out in the regions that produce the stands ready, firstly, to contribute half of the wealth, and we deserve our fair share to capital cost immediately—some $20.3 mil- come back to the regions. But, no, if the state lion—and then to pay back to the state an- government wants $9 million urgently to other $13 million when that road becomes further a blow-out in the costs of a pedestrian part of the national highway. It is a terrific bridge across the Brisbane River, it comes deal for the state of Queensland, the gov- immediately. If they want $280 million for a ernment of Queensland and the people of Monday, 4 June 2001 REPRESENTATIVES 27183 football stadium at Lang Park, where it served,’ or ‘That’s a nice project; you can do should not be built, it comes immediately. well with that. We would encourage you to But, when the north wants major develop- do that. Go off to the private sector and see if ment projects that would further enhance the you can get that funded.’ But when it comes wealth of the state, the answer is no. The to the Commonwealth government actually Premier plays politics and he is certainly not putting in the dough, where have they been? meeting his responsibilities to North Queen- Where have they taken the initiative with sland. regard to those projects? They have not been In my region we now have four state doing it and they will not do it. members and we are worse off for it. I be- One project that Sydney has had for a long lieve that the solution to that is coming to an period of time—40 or 50 years—and on inevitable conclusion. I believe that people in which the Commonwealth government has the north will say, ‘If we can’t get our fair spent more than $20 million is Sydney’s sec- share from Brisbane, let’s have our own ond airport. I want to come to the impact on state.’ I conclude where I began: I believe it general aviation at Bankstown in relation to is now time for North Queenslanders to ac- that a little later. But first, I want to advise tively consider the new state movement so the House of a recent visit that I had in con- that we can get our rightful share for the junction with a number of other members of projects that we need. our Labor Party committee to the City of Rural and Regional Australia: Kalgoorlie-Boulder. I also went to the coast Infrastructure Spending to Esperance, to look at the developments of the port authority, the general developments Mr HATTON (Blaxland) (6.02 p.m.)—It in Esperance and the connection between is interesting to hear the member for Herbert Esperance and Kalgoorlie, and to look spe- speak about the infrastructure needs of North cifically at some critical problems that the Queensland. I have been to North Queen- local people had with the federal govern- sland with the committee that I chair for the ment, the one that we have had since March Labor Party, the Industry, Infrastructure, Ru- 1996, not coming to terms with key practical ral and Regional Development Committee. problems that affect the people in the largest We have noted that there are a large number electorate in Australia. of potential infrastructure projects in that state. We have also noted that the Common- We drove for more than an hour south wealth government has not been quick in from Kalgoorlie-Boulder to a town called terms of initiating any of those infrastructure Widgiemooltha. It is a petrol station essen- projects. The member rolled out a big wish tially, with some associated activity. The lady list of projects that he thought could be sup- who runs that petrol station is the only one of ported by the state government, and argued 50 people who are currently running off that the Commonwealth was standing abso- grid—off the electricity grid—petrol stations lutely ready to do something about it. My around Australia providing services to the experience of this government over the last motoring public who could in fact link up to five years is that they actually stated their the national grid. That would cost her busi- baseline with regard to infrastructure projects ness about $340,000 a year. She is actually in the National Commission of Audit, where thinking of doing that. She can get part of they said that the Commonwealth govern- that funded from a state government grant, ment should not be responsible for a single most of the money, about two-thirds, from direct service to any individual in Australia, her putting the money up-front and linking that all the Commonwealth government up to that national grid. We were joined by should do is benchmark and audit—they Bob Bongiorno, who has a business on the should stand by as the referee watching the Eyre Highway. I checked out Esperance. It ping-pong match between the local govern- was 103.9c for petrol in Esperance. In Kal- ment and the states, saying, ‘Well done; well goorlie it was 106.9c. At Widgiemooltha it was 117.9c. I thought Norseman was high at 27184 REPRESENTATIVES Monday, 4 June 2001

113.9c, but when Bob Bongiorno came along between $1 million and $1½ million a year. to see us he told us that on the Eyre Highway Not a lot of money, one would think. the cost of a litre of unleaded petrol was There is a different way to work out how $1.34 to $1.38. much it would cost the federal government. I think we can take it that, for anywhere in It is actually 30 to 45 minutes of the federal Australia, that is pretty high. One of the key government advertising budget in one single drivers of the costs for Mr Bongiorno—and day. All they would have to do is forgo half also for all of the other people who run petrol an hour to three-quarters of an hour of ad- stations and provide services to travellers vertising. You will note that the opposition Australia-wide who have to run off diesel— has indicated that we will knock off at least is that this federal government regards them $60 million worth of federal government as a separate category. It says that the people advertising as soon as we come to power. providing those services cannot get any re- One of the simple things that the federal bate whatsoever for running their plant, ma- government could do is just take half an hour chinery and business, because they are a out of the day and give the diesel fuel rebate commercial activity. to these 50 important commercial entities You could grant that they are a commer- who provide not just fuel but also phone cial activity. However, who gets a 100 per services, emergency services and rescue cent full diesel rebate? Basically every services to those people who travel Austra- farmer in Australia. I think that most people lia-wide, including people who are aged. in the country would generally think that In the last year and a half or so, these peo- they run commercial activities. And it is not ple have dramatically decreased in numbers. only all the farmers in Australia who are able The information we have is that there are to get that. The mining companies get it too. two key drivers to that. One is the impact of They are exploratory. We understand that. the GST; the second is the high cost of fuel. We went to the superpit at Kalgoorlie. We In terms of Australia’s regional tourism and understand that a 100 per cent diesel fuel encouraging people to continue to tour Aus- rebate is available to the people who run the tralia in larger numbers, it would be a sensi- superpit, Normandy Mining and others. It is ble initiative to say, ‘Okay, we will forgo that available to every other mining company 30 minutes and we will put $1 million to within Australia, but as far as I know they $1½ million a year into a 100 per cent diesel not only are share market entities but also fuel rebate for all of those operators.’ We will run commercial operations. be recommending that to our shadow Treas- Yet 50 people Australia-wide who run urer, Simon Crean, and we will also be service stations have been told they are in an bringing it to the attention of the leader. And entirely different category. Their costs are we indicated to them that we would bring it dramatically affected by the fact that they to the attention of this parliament. This is my cannot pull it back. Mr Bongiorno indicated first opportunity to do that. It is a reasonable, something in the order of $30,000 to $40,000 sensible, rational, practical thing that could a year at least for his business and others in a be done, but its real indication is of the atti- similar situation. That makes a pretty big tude taken by the federal government to en- change to what your bottom line is. It makes tities in remote Australia under enormous a pretty big change to what you have to stress that should be supported and helped to charge people for petrol in remote Australia. help people travelling Australia rather than This is a simple proposition. This is one that being punished as they are now. does not entail leading on to any other group The federal government does not believe of people. You can just look at remote Aus- in infrastructure spending; it does not believe tralia and petrol stations that are so af- in spending money on building a second air- fected—about 50. The cost of actually giving port. It does not believe that it should be them the 100 per cent diesel fuel rebate is done now. It thinks that maybe after 2005, Monday, 4 June 2001 REPRESENTATIVES 27185

2010 or 2015 it may be able to do something. and positive feeling remains throughout their The environmental impact statement in rela- lives. I say to them that where we have come tion to Sydney’s second airport said basically as a nation in the last 100 years is very much that the federal government should be doing due to the hard work and perseverance of something—that it should not do what it fi- people such as their parents, grandparents nally did and adopt the do-nothing approach. and all who have gone before them. But The do-nothing approach entails two critical where we go in the next 50 years—how we things. First, there would be an expansion of sound, how we feel, how we look as a nation Bankstown Airport beyond its current limits, and how we relate to each other as a na- an expansion so that Bankstown Airport had tion—really does depend upon them, on to take regular passenger services, both re- what they get out of school and how they gional services and—as this government has interact with the community. nominated—jet services up to 737s. The There is a sense of optimism at that stage government said it should happen without in their lives, and one wonders whether that one single cent of federal government money sense of optimism will continue. If we look being spent on the associated infrastructure at some of the recent figures and statistics needs—without a single word from the that I will go into shortly, we can sense that Prime Minister or the minister for transport there are a growing number of young kids about the massive dislocation to general out there who have a high sense of hopeless- aviation in Sydney and to jobs within Bank- ness and pessimism about their future. In 30 stown and about how that should be ad- years time, when the names of the majority dressed. of the current members of this House will be The member for Herbert gave a long list merely entries in history, my children—in- of what a state government in Queensland deed, the thousands of young people in should do. The situation can be simply ad- Deakin under the age of 20—will be the dressed in terms of these facts: in the nearly leaders of our community, employers, em- six years the government has been in ployees and parents. But to look at the future power—it is over five now and by the end of I also want to look at the past in terms of the year it will be close to that—it has not how we are and how we should be respond- addressed the infrastructure needs of Austra- ing as a government. lia and does not intend to do so. (Time ex- It is rare for me to quote from the past—I pired) try to avoid it—but I want to mention a very Youth: Government Policy important quote in the context of this speech. Mr BARRESI (Deakin) (6.12 p.m.)—I In 1944, former Liberal Party Prime Minister rise to address an important issue relevant to Sir Robert Menzies said: all members of parliament, and indeed all What we must look for ... is a true revival of lib- Australians: the welfare of our youth—the eral thought which will work for social justice sense of hope or, conversely, the sense of and security ... hopelessness evident in a growing number of True liberals have great and imperative obliga- young people. As we know, young people tions to the weak, the sick and unfortunate ... are the future of our nation. They quite liter- To every good citizen the State owes not only a ally hold the keys to the future across all ar- chance in life, but a self respecting life ... eas of human endeavour. That was supported in 1967 by Sir John Car- In this the year of the Centenary of Fed- rick, a former Liberal Party founder, senator eration, many of us have attended schools for New South Wales and Minister for Edu- and helped in the presentation of medallions cation, who said: and certificates. One of the things that strike We should regard free enterprise ... as one of our me as I go around the schools is the sense of major instruments but not as an absolute weapon exuberance in some of the kids at primary or as an absolute end itself. Liberalism and lais- school level. I trust that level of exuberance sez-faire can never co-exist. The true Liberal is 27186 REPRESENTATIVES Monday, 4 June 2001 always concerned for the welfare of the individ- we were presented with some disturbing ual, for the creation of opportunities, for the pres- facts. Seven per cent of young people be- ervation of human dignity and the development of tween 14 and 24 years of age have at some human personality. stage attempted suicide. Three per cent of The coalition has a proud record of achieve- young people up to the age of 18 will have ment in social policy areas over many years; suffered from some form of serious, depres- yet you would be hard pressed to have any sion related illness; and, by the time they are form of acknowledgement or acceptance of 18 years of age, 23 per cent will have suf- that by the critics. There are those who ped- fered from severe depression. But the most dle the myth that this government has no startling fact is the 300 per cent increase in social conscience, a myth perpetuated by the suicide rates for young Australian men. those whose own agenda is not met or who Every day at least one person takes his or her find that they no longer have that privileged own life and another 50 attempt to take their and disproportionate voice in the corridors of life. With suicide being a very common parliament that once they may have had. cause of death for young people—even more This government does have a heart and is common than death due to motor acci- concerned about the social wellbeing of dents—governments, and indeed the whole Australians. In recent years, during the time community, must act responsibly. of the Howard government, Australia has Living is for Life, or the LIFE program, is undergone a great deal of change, and some a framework for prevention of suicide and of it is now being reflected in policy initia- self-harm. Launched last year, it is funded to tives addressing the plight of our young peo- the tune of $48 million under the National ple. Suicide Prevention Strategy. It is one pro- While there has been a lot of focus on gram which helps to reduce the rates of sui- economics and budgets, there is much more, cide and suicidal behaviour across our na- of course, that we can do. In terms of citizens tion. The framework has been developed for and governments, rights and responsibilities, use by the Australian community to help the coalition in government has sought to plan and conduct suicide prevention pro- restore the balance, to restore it towards re- grams. Active in its formation were the very sponsibilities. Many would say that the pen- people who deal with these problems on a dulum has perhaps swung too far; some day-to-day basis. Australians, even in the recent past, have In the Deakin electorate in Melbourne’s been too firmly focused on their rights rather eastern suburbs, we have some good exam- than their responsibilities. The recent re- ples of programs which the government have sponse by some in the community to the put into place to help youth, to give them budget demonstrates this shift from respon- that sense of hope and optimism in their sibility to rights—a far cry, Madam Deputy lives, rather than their going down the bleak Speaker Kelly, from what perhaps your and ugly path of depression and futility that grandparents and others who helped to form may characterise their lives. I have spoken in and forge this nation in the past 100 years the past about a number of these programs, would have known as being indicative of the but I have great pleasure in being able to Australia that they lived in. As many have speak about them again. The programs are said before, we all live in a society, not an successful; they make a difference in peo- economy. Governments must be concerned ple’s lives. Whilst as a government we will with both aspects and must develop and im- never be able to completely stop the inci- plement policy ideas across all areas of hu- dents of suicide and self-harm, mental ill- man endeavour and activity. ness, child abuse, criminal behaviour, family More than 2,500 Australians of all ages, dislocation and youth homelessness, we can from all walks of life, die by suicide each at least as a government direct our attention year. In a landmark report, Aspects of youth to minimising them as much as possible. Not suicide, brought down four or five years ago, only can we but we have an obligation as a Monday, 4 June 2001 REPRESENTATIVES 27187 government to the nation—and an obliga- Internet Chat Rooms tion, more importantly, as legislators and Mr JENKINS (Scullin) (6.22 p.m.)—To- decision makers to the young people of this night I grieve on behalf of a constituent of country. mine who, for the sake of this debate, I will One program is Checkpoint, which was refer to as Mr Y. I refer to him in this manner three years in the planning and to which we in an attempt to not further the anguish that contributed $379,000. I was pleased to be at the circumstances of the story I am about to the second graduation last week, where 24 share with the House have caused him, even students who were considered to be kids at though those circumstances have been the risk had gone through an eight-week pre- subject of at least three articles in the Sunday apprenticeship training program. The great Age. thing about that graduation—I was not able Some 14 months ago Mr Y came to my to go to the first one—was the parents who office to outline the fact that his daughter came up to me and said, ‘You have given my had, by misusing her mother’s credit card, son’—or my daughter—‘a real sense of bought a fare through Qantas to take her to hope. The anger that was within them has Denpasar. Mr Y attended my electorate of- subsided. They have gone through three or fice because he had suspicions that his four different employers and have not been daughter had gone to Indonesia to then go on able to hold down a job. There is a real sense to East Timor to join up with a man in his of hope now present. Thank you very much, mid-30s—for the sake of it this debate I will Mr Barresi.’ I actually say thank you very call him Mr L E—whom the daughter had much to the Checkpoint organisers, for they met through an Internet chat room. It appears are the ones who fought for this program to that soon after her 15th birthday Ms Y be- be introduced into Melbourne’s eastern sub- came very friendly with this gentleman urbs, and they are the ones who are creating whom she had met over the Internet, that positive outcomes for these young kids. So I from time to time this friendship had caused congratulate Pastor Mark Bateman and his a host of problems within the family home team at Maroondah Community Care. and that as early as August 1999 the daugh- The other program is one under Regional ter had gone to the residence in Melbourne Extended Family Services. A lot of people of Mr L E. may not know, but REFS actually pioneered Envisage here that we have a daughter, 15 the Reconnect model, which is now used years old, in a relationship of some sort with around Australia. I am pleased to see that a gentleman in his mid-30s. What were the this year we have also allocated somewhere parents to think? You would be excused for around $600,000 for wilderness expeditions thinking that they might think the worst, that and training programs, taking kids away for there was some deep relationship develop- 10 days to help them rebuild their lives and ing. This led to their involvement with the look at behavioural change, self-assessment, state Department of Community Services. accepting self-responsibility for decision Over a lengthy amount of time there was an making and reorienting their life’s direction. attempt to resolve the complex issues that Well done to Bruce Argyle and his team for arose out of the tensions that this was caus- once again providing another worthwhile ing to the family. But at the time that Mr Y program in Melbourne’s east. Finally, we came to my office the circumstances were have a great program called Australians that he literally was unsure where his Against Child Abuse, in Mitcham, with daughter was. All he knew was that in the $150,000 of Commonwealth funding to help mail on the day that the daughter fled to In- in early intervention parenting projects. donesia there was a receipt in the name of These are all programs that the government the mother for an e-ticket on Qantas to go to has introduced for the benefit of my commu- Indonesia. Subsequently they found that the nity. (Time expired) credit card had been misused. This was re- 27188 REPRESENTATIVES Monday, 4 June 2001 ported to the Victoria Police, who took ac- mother and older sister, when they did not tion to contact Qantas. An attempt was made actually know where she was but had suspi- to have the daughter taken from the flight, cions, given that the friend, Mr L E, had left but this got into a complex web of legalities for Dili to set up a business. over whether this was able to occur. Further, The saga has continued. The daughter the Indonesian authorities were notified of held out until she attained the age of 16, the circumstances of the daughter leaving which gave her a different legal status. She Australia and they undertook to interview was obviously fully aware of this because her when she arrived in Denpasar. Again, I she was able to use this in discussions when, stress that at the time the daughter was 15 finally, the parents were able to track her years old—she was about six to eight weeks down. Both Mr Y and his wife have visited short of her 16th birthday. Subsequently the East Timor. They visited the daughter, but Indonesian authorities allowed the daughter the daughter would not have very much to do into Indonesia. with them. When the daughter’s visa expired When Mr Y was trying to ascertain ex- in East Timor she returned home to Austra- actly where his daughter was, he questioned lia. There were attempts at reconciliation as a the Department of Foreign Affairs and Trade family unit; these failed. In the end, Mr Y to see what assistance they could provide. I gave his permission for the daughter to re- wish to stress that, in raising these circum- turn to East Timor. Presently, as was outlined stances with the House tonight, I do so in an a couple of weeks ago in the Sunday Age, the attempt to have members of the House try to whereabouts of the daughter is unknown. learn any lessons that we can from the cir- The friend, Mr L E, does not even know cumstances. At no stage am I overly critical where the daughter is. of the actions of people in various depart- Part of the investigations that have gone ments, both at federal and state level. In fact, on have been into the relationship between at the end of the day, there was strict adher- the 30-plus Mr L E and the daughter. The ence to legalities and policies. I merely raise Victorian Ombudsman has been critical of this to see if in some way we, as a legisla- the way in which the department overlooked ture, can look at the way that this problem in part some of the claims that were on the was administered to see if that can be im- file—that they were not fully investigated. proved. Foreign Affairs told Mr Y that, Through my colleague the honourable mem- whilst they had been able to ascertain the ber for Batman, who has also had dealings whereabouts of the daughter, because of the with Mr Y, the then Minister for Justice and Privacy Act they were unable to inform him Customs, Senator Vanstone, was helpful in of where she actually was. having the circumstances investigated. I un- Over the last 14 months, Mr Y has been to derstand that the Australian Federal Police the Commonwealth Ombudsman and the interviewed Ms Y in the presence her Victorian Ombudsman; he has been referred mother, but she denied that she had been in to the police complaints unit and a whole any way pressured to have a sexual relation- host of other investigatory agencies. The ship with the alleged suspect. That was the Commonwealth Ombudsman has outlined end of the investigations. that what the Department of Foreign Affairs Mr Y is now in ill health. His marriage and Trade did was within what they were has broken down. He simply asks whether able to do. They could only have released the there were people listening to him, whether information if they were sure that the there were things that should have been done daughter’s life or health was under serious or that could have been done. So I suppose it is imminent threat. In their letters to Mr Y, the for this House to have a look at the circum- department have been very understanding of stances to understand if there is anything that the anguish that he is going through. But, at we can do. I go back to the initial point at that point in time, we have to put ourselves which the saga started. The time when Mr Y in his shoes and the shoes of the daughter’s Monday, 4 June 2001 REPRESENTATIVES 27189 came to visit me in my electorate office was The scheme aims to efficiently market about the time that Police Commissioner new high value produce to pre-identified Ryan in New South Wales had indicated that buyers abroad and nationally, with particular an incident had occurred with his daughter focus on the South-East Asian markets. The and the material that she had obtained IMC’s motto largely mirrors the advice given through a chat room. In some of the com- to the wool farm belt for years: diversify to mentary about that incident it was said that lucrative products; value add and pre-sell, or when a reasonably sophisticated father like forward sell, that produce where possible; the commissioner did not understand the expand markets nationally and internation- ramifications of the daughter’s access to the ally and, in doing so, look to Asia. Moreover, chat room what hope is there for others? The the project is locally driven and has won Sunday Age in their commentary about considerable grassroots support. The Deputy things to do with Mr Y’s family have indi- Prime Minister and Leader of the National cated that in, for instance, the United States Party of Australia, John Anderson, opened there have been state laws instituted that pre- the IMC airfast storage arm of the facility vent people, as a result of Internet chat last Friday. IMC Chief Executive Officer, rooms, entering into sexual relationships, Alex Ferguson, said on that occasion that it especially with minors. These are the things is in many ways his—the Deputy Prime that perhaps we have to learn. Minister’s—project due to the support that In this very short overview of the circum- Mr Anderson has given. stances of this case, I have not been able to The IMC does, however, seem to have re- go into the complexities. I think that Mr Y, cently slipped the memory of the state gov- when he is able to put his anxiety away, ernment, who were once great supporters, would understand that there is a shared re- pledging to meet federal funding. As time sponsibility between family and government marches by, one would be forgiven for departments in the way in which these things thinking that the state government had hoped should be dealt with. I hope that we learn that the federal government would not bring from the circumstances of Mr Y. (Time ex- forward their part of the money and, there- pired) fore, the state would not be asked to bring Sitting suspended from 6.32 p.m. to 8.00 theirs. That once vocal support dimmed to p.m. barely a whisper following the federal gov- ernment’s commitment of $4½ million last Inland Marketing Corporation year. In fact, the IMC CEO, Alex Ferguson, Mr LAWLER (Parkes) (8.00 p.m.)—I said of the state government in his address to wish to bring to the attention of the House those assembled on Friday, 1 June: this evening a tale of an extremely worth- They seem to be able to build everything else, while enterprise that has huge and far- but they won’t help the IMC. reaching benefits for western New South Wales. The project is well known to the peo- In an article in the Parkes Champion Post ple of western New South Wales, especially newspaper covering the facility’s opening, to primary industries but also to many local Mr Ferguson saw fit to expand on this theme government bodies in the region, along with and laid the wreath of neglect squarely on the New South Wales and federal govern- the neck of the New South Wales govern- ments—although you would be forgiven for ment. On page 1 of today’s edition he said: thinking that the New South Wales govern- We did a deal with the State Government that ment did not know about it. I refer to the if the Federal Government put up $4.5 million Inland Marketing Corporation in Parkes, then the State Government would put up which is a groundbreaking initiative to re- $4.5 million. work the local agricultural industry and The state was to mirror the Federal funding. therefore the economic base of the towns and What the State Government has now said is villages in the region. ‘sorry, we won’t play your game’. 27190 REPRESENTATIVES Monday, 4 June 2001

Mr Ferguson went on to say: At the end of last year, the federal gov- They seem capable of building everything else, ernment met its part of the bargain to the such as sports arenas, but they aren’t prepared to tune of $4.5 million, but the absence of re- help build things like the IMC. sponse from the state government has been I do not wish the House to view Mr disgraceful and negligent. Its so-called Ferguson’s comments as perhaps material- Country Labor members are long on rhetoric ising out of an atmosphere of political pref- about the importance of country New South erence or allegiance. Before the federal gov- Wales but seem only to shirk the task when a ernment’s contribution last year, Mr financial commitment is required. With the Ferguson was publicly no more sympathetic handing down of the recent federal budget, a to either tier of government—state or Com- number of Country Labor critics took no monwealth—and, in my opinion, his most time to outline what the ALP head office told recent statements are also apolitical. Instead, them to say and pointed out what they saw as they reflect Mr Ferguson’s and many of the flaws in the package. Within days, a state local governments’ views in the area. They budget was handed down completely devoid reflect their frustration and outrage that the of any financial support for the IMC and the New South Wales government—the same response of these same critics was com- government from which so-called Country pletely nonexistent. Labor has emerged in New South Wales— One of the things that the state govern- has shunned the project ever since the IMC ment championed and trumpeted about in its seemed likely to go ahead. The current ad- own budget was how fair and reasonable it ministration did offer support in the early was to regional New South Wales. One of feasibility stages of the project but, short of the centrepieces of its announcement for generous verbal commitment, has failed to west of the mountains was $35 million to be make good on its pledge of substantial spent over 12 years on the Dubbo Western backing. I certainly share Mr Ferguson’s Plains Zoo. That is no small amount of frustration, given that the IMC approach is money in anybody’s language, until you re- the culmination of what the agricultural sec- alise that it is $35 million out of a total of tor has been told to do by successive state $225 million that is to be spread between and federal administrations in recent years. Taronga Zoo and Western Plains Zoo. So The project’s ramifications are enormous here we have yet another case of the regional in terms of creating jobs and prosperity in area being very much the poor cousin of the country New South Wales via a rejuvenated city. To play petty politics with a project of agricultural industry. The economic impetus magnitude is to betray a contempt for people would be spread to secondary industries in of country Australia that had previously only our country towns and could conceivably been hinted at in citycentric spending before reverse the economic forces currently at and after the Olympics. work in rural communities. The difficulties The core councils involved in the IMC— facing regional areas like western New South that is, the Lachlan, Parkes, Forbes and Wales are complex, but in many ways they Cabonne shires—have been promoting the begin with the stagnation of traditional pro- cause of the IMC for years. I am under no duce, such as wheat and wool-sheep farming, illusion that it took a lot of work and a lot of across the countryside. The IMC is the cir- sacrifice by these people, traipsing up and cuit-breaker that could stop the juggernaut of down the corridors of parliament, both in regional decline and eventually be the long Canberra and Sydney, trumpeting the bene- sought after tonic for dwindling populations fits that the IMC would bring to our regions. and employment. Yet the government of the The commitment that they were given at IMC’s home state has apparently seen fit to both federal and state levels, after a lot of shun the fledging project, just when the IMC toing-and-froing, was that each government needed its supporter’s words translated into would put in their share of the contributions. deeds. Clearly they have been let down. The IMC Monday, 4 June 2001 REPRESENTATIVES 27191 have put out a prospectus so that the other 50 bring their area of expertise to this fantastic councils that have supported them through marketing program. I am proud that, in my this period have the opportunity to get in on time as the member for Parkes, the IMC has the ground floor of the IMC. They and I are been one of the electorate’s most successful confident that the IMC will eventually be a programs, and I have no doubt that it will profit making venture and that the profits continue to be so and will deliver to western will be reinvested into regional New South New South Wales. (Time expired) Wales, going to the councils that have had Question resolved in the affirmative. the foresight and the vision to invest in the IMC. I quote various members—such as the COMMITTEES Mayor of Parkes, Robert Wilson, and Alex Corporations and Securities Committee Ferguson, the CEO of IMC—in talking about Report what the IMC can do and what the core Mr SERCOMBE (Maribyrnong) (8.10 councils have done. The mayor was referring p.m.)—On behalf of the parliamentary Joint to the core councils when he said: Committee on Corporations and Securities, I But you stuck with it and have helped create a present the committee’s report, incorporating credible opportunity for the people of inland New a dissenting report, from Senator Andrew South Wales. Murray, the Democrat senator, into the pro- Many people are afraid of change or wait for visions of: (a) the Corporations (Common- someone else to lead the way. wealth Powers) Act 2001 (NSW), and (b) the But if you follow someone else you always come Corporations Bill 2001 and the Australian second. Securities and Investments Commission Bill We want to be out in front. 2001, together with evidence received by the We are presently offering every Council an op- committee. portunity to have an equal share in the IMC. Ordered that the report be printed. He went on to say: Mr SERCOMBE—by leave—Being en- The time has come to add as much value to our couraged by my colleague the member for products as we can, and that can be achieved Holt, I make a couple of very brief remarks. through the IMC. These particular items come to the parlia- The IMC is long overdue. ment with the support of both government The next stage is to develop the delivery system, and opposition members of the committee. and that is an international freight airport at They relate to the urgent need for the Com- Parkes. monwealth to remedy some deficiencies in That will come one day, but in the meantime corporations regulation in Australia that arise the hope offered to rural communities by the from two High Court decisions: firstly, the IMC is not confined to the central west of Wakim decision of 1999 and, secondly, the New South Wales. As we attended the case of the Queen v. Hughes, in 2000, which launch, already packed in the coolroom of have in fact raised significant problems in the facility in Parkes was a load of oranges relation to the constitutional basis on which which had come in from Bourke and was corporations are regulated in Australia. waiting to join an international flight out of We in the parliament are all aware of the Sydney to its place of destination. The IMC fundamental importance of this area for our has developed a logistics system by which economy’s performance, so this matter has the farmers will know exactly where their been quite urgent. The reports that have produce is from the time it leaves the farm come to the House endorse the approach that gate until it is delivered to the supermarket has been taken on a bipartisan basis to rem- shelf. It has an uninterruptable cold chain, edy the perceived deficiencies of corpora- computer facilitated operations and experts tions regulation that arise from the High working on the ground in Parkes who have Court’s decisions. The Democrat senator on been gathered from all over Australia to the committee has provided a supplementary 27192 REPRESENTATIVES Monday, 4 June 2001 report—and that is a more accurate descrip- infrastructure, welfare payments, health, tion of his comments—rather than a dis- education, industry support or whatever. senting report. He has taken the opportunity It is important, though, for all Australians presented by the inquiry to make a number to understand what a precarious position of observations about the way in which cor- Australia was in when the Howard govern- porations regulation should now proceed. On ment came to office a little over five years that basis, while indicating the bipartisan ago. It can never be said too often: there has nature of the need to pursue these matters never been a Labor government, state or fed- promptly in the national interest, I table the eral, that eventually did not go broke. Before report. the 1996 election, the present Leader of the GREAT BARRIER REEF MARINE Opposition, the then Minister for Finance, PARK AMENDMENT BILL 2001 told the Australian people that the Labor First Reading budget was in surplus. On the morning after the election, Treasury officers told Peter Bill received from the Senate, and read a Costello, the new Treasurer, that the Labor first time. budget was actually $10.3 billion in deficit. Ordered that the second reading be made If a government spends more money than an order of the day for the next sitting. it collects, it has no option but to go into debt APPROPRIATION BILL (No. 1) 2001- or to sell something. Labor, of course, did 2002 both in their last five years in office. Labor Second Reading had a privatisation spree: they sold Qantas, Debate resumed from 24 May, on motion the Commonwealth Bank and a host of other by Mr Costello: government business enterprises. What has Australia got to show from the proceeds of That the bill be now read a second time. those sales? The answer is nothing—a big, Mr SOMLYAY (Fairfax) (8.14 p.m.)— fat zero. What was the outcome? In five This is the sixth Howard government budget years to 1996, accumulated deficits, less the brought down by the Treasurer, Peter Cos- proceeds from selling off assets, left us with tello. I congratulate the Treasurer on this a government debt of $80 billion. Eventually, budget, which continues to rebuild Australia the day of reckoning must come, and had to after the devastating Labor debt and deceit come. That debt has had to be paid off. rampage of the early 1990s by successive In successive budgets, the Howard gov- Hawke and Keating governments. The ernment has done just that. When you spend Treasurer has produced in this budget his more than you receive, the result is debt— fifth consecutive surplus. I want to make it that is the Labor way. It was the Whitlam clear that a surplus equals savings. way and it was the Keating way. Should he A surplus budget in itself does not mean ever get the opportunity, it would be the too much; it is necessary to examine the rea- Beazley way. In 1996 Labor left us in debt, sons for producing budget surpluses. It is with an annual interest bill of between $9 understandable that different sectors of the billion and $10 billion. At the time, the community looking for additional help Howard government made a conscious deci- through tax cuts or further expenditure sion to pay that debt off. The government would argue that the government should use had to cut expenditure for us to live within the budget surplus. In my electorate that our means and to produce surpluses—that is, certainly is the case. The average person savings to pay off Labor’s debt. Cutting ex- cannot comprehend the necessity of produc- penditure is never popular, but even the op- ing successive budget surpluses. The per- position in their heart of hearts believe—and ception may be that the government is taking they believed this at the time—and admit too much in taxes and not returning it to the privately that it had to be done. As the electorate in the form of expenditure, be it on Treasurer said in his budget speech, we are Monday, 4 June 2001 REPRESENTATIVES 27193 saving $4 billion now in interest payments movement started in the early 1990s. Self- because we have paid back $50 billion of funded retirees were a section of the elector- Labor’s $80 billion government debt. The ate that was ignored by Labor. Labor’s atti- Howard government has not borrowed one tude to self-funded retirees was described by cent in net terms since coming to office, and one Labor minister some years ago in this we can spend $4 billion each year either in chamber. They were seen as ‘a bunch of old tax relief or on programs, and that would wealthy people driving around in Mercedes produce hospitals, schools, extra police and Benzes’. Nothing could be further from the whatever. That is responsible governance. truth. Self-funded retirees are people who The current surplus represents further sav- saved for their retirement and had the capac- ings which can be used for further debt re- ity to save for their retirement. That is not a duction and savings on our interest bills. criticism of pensioners: not everyone has the As the Treasurer said, Australia’s net debt capacity to save. level is one of the lowest in the world— Labor’s tax system did not give self- lower than the OECD average, lower than funded retirees fair treatment compared with the USA’s. The Howard government have pro- pensioners. They deserve better, and this duced an economy with high growth rates, budget builds on their tax concessions under low inflation and low interest rates—the the previous budgets of the Howard govern- lowest interest rates in 30 years. This could ment. What did the Association of Independ- not have been possible without the commit- ent Retirees seek from government? They ment to meeting head-on Labor’s legacy of sought treatment equal to pensioners. Five debt. This has been achieved together with years ago, a person on an age pension re- the greatest reforms in our taxation system ceived over $11,000, with no tax payable. A and in industrial relations since Federation. self-funded retiree who received $11,000 In their six budgets, the Treasurer and the from their savings or investments—that is, government have introduced new measures the same income—paid tax on every dollar in the areas of employment, health and edu- over the tax-free threshold of $5,400. As the cation, and introduced many initiatives in Treasurer said, they paid more tax than pen- regional Australia. In fact, every portfolio sioners even when they had the same in- interest has been advanced from the days of come. The government thought that was un- the Labor government. Commonwealth-state fair. relations have been totally reformed. In each So one of the first things the government budget, some of the surplus has been set did in 1996 was to put self-funded retirees on aside for new initiatives. As the Treasurer an equal footing with pensioners. It raised said, this is nation building to strengthen our the tax-free threshold for older Australians to economy. $11,185. A qualifying self-funded retiree did I now turn to specific measures in this not pay income tax on his or her income be- budget, and I repeat that the capacity to do low that amount. With the introduction of the these things is a result of good management new tax system, these thresholds were in- through debt reduction and government sav- creased. But in this budget the government ings. I have a very large aged population in will go much further. We are lifting the low my electorate. Fairfax—which includes the income aged persons rebate with effect from Queensland Sunshine Coast centres of Nam- this current financial year—that is, it is being bour, Coolum, Noosa and Gympie—is Aus- backdated to 1 July 2000. The increase an- tralia’s premier retirement destination. In the nounced by the Treasurer will mean that, in 11 years that I have been in the parliament, the current financial year, qualifying self- my electorate has experienced an enormous funded retirees and age pensioners will have growth rate, with 1,000 people being added an effective tax-free threshold of $20,000— to the electorate roll each month—and most that is, they will pay no income tax unless of these are retirees. It is the area in my their income, including the pension, exceeds electorate where the independent retirees that amount. The effective tax-free threshold 27194 REPRESENTATIVES Monday, 4 June 2001 for a couple on equal income will be lifted to has been made by governments in Britain, $32,612. Qualifying couples will pay no in- Canada and New Zealand to their prisoners come tax until their combined income ex- of war. No amount of compensation will ever ceeds that amount. Further, older Australians make up for the pain and loss these diggers who hold a Commonwealth seniors health suffered, but our nation should make a card will have extended to them the same statement of recognition and thanks. This concessions on telephone costs as pension- POW payment will be made before 30 June. ers. They will be entitled to a telephone al- Yesterday morning I attended a meeting of lowance of $17.20 per quarter as from Sep- the Sunshine Coast Ex POWs Association, tember. The Commonwealth will also open and some concern was expressed by former negotiations with the states with a view to POWs from other theatres of war that they extending other pensioner concessions to received treatment no less cruel than that health card holders over time. received by prisoners of war at the hands of For the first time, the government will the Japanese. They asked me to express their also introduce twice a year indexation for concerns to the parliament and to the gov- those on Commonwealth superannuation ernment, and I stand here and do that now. pensions in line with the CPI from 1 January The Treasurer announced a benefit for all 2002. This will assist those on such pensions those on the full or part age pension. The to keep up with the cost of living. As the government has previously legislated to fix Treasurer said on budget night, assistance the age pension at 25 per cent of male total will be provided to Australians seeking to average weekly earnings. On 1 July last year maintain their superannuation savings in the it was increased by four per cent and the years immediately prior to retirement. Ac- government is maintaining it at two per cent cordingly, superannuation assets are to be higher in real terms. There will be an addi- exempted from means tests for people aged tional payment for all those who receive in- between 55 years and the age pension age. come support and are over pension age, in- This means they can receive income support cluding service pensioners. The government without expending part of their superannua- will pay each person who receives the pen- tion. sion or part pension a non-taxable lump sum There has been some confusion in the of $300. electorate about the definition of a self- On 1 January 1999 the government dra- funded retiree. In my electorate, I took many matically widened the eligibility for the calls from self-funded retirees who are males Commonwealth seniors health card. The card under 65 or females under 61½. They of enables holders to purchase pharmaceuticals course do not qualify for the concessional tax on the Pharmaceuticals Benefits Scheme for treatment until they reach pension age. I re- $3.50 instead of at the general rate of $21.90. mind people that these concessions, as I said After 52 prescriptions, all scripts in a calen- before, were introduced to ensure that self- dar year are free. From 1 January 1999, the funded retirees had tax treatment that was income limit for eligibility for the card was equal to that of pensioners and must there- raised from $21,000 to $40,000. On 1 July fore apply only to self-funded retirees over 2001, this eligibility will be lifted further retirement age—that is, pension age. with an income test of $50,000 for singles In recognition of the unique circumstances and $80,000 for couples. This is expected to of their captivity, the government will make extend the card to an additional 50,000 older a one-off payment of $25,000 to former Australians. Australian prisoners of war of the Japanese I now turn to other budget initiatives and to civilian internees and detainees of the which have not so much been the focus of Japanese. For those who are no longer alive, public attention as the initiatives for older payments will be made to their surviving Australians have been. There are over 120 spouses. Compensation in similar amounts dairy farms in my electorate, mostly in the Monday, 4 June 2001 REPRESENTATIVES 27195

Mary Valley from Kenilworth to Gympie. health system, safeguarding Australia’s natu- Many of the farmers are facing a major up- ral environment, protecting our agriculture, heaval in their lifetimes. The deregulation of strengthening measures against exotic dis- the dairy industry by the states—I repeat: the eases, plus defence measures totalling $27.6 states, not the Commonwealth—has had a billion. major effect on the future and the incomes of There is one other matter I wish to raise in farmers. The hypocrisy of the Labor Party on this debate on the budget. Budget debates are this issue is breathtaking. Peter Beattie wide ranging, so I will take the opportunity blamed the Commonwealth for the deregula- to raise this issue. The subject is the expense tion of the dairy industry. Imagine my associated with by-elections. We have re- amazement when I read in my local paper cently seen by-elections in the Victorian seat that Peter Beattie had challenged the Com- of Isaacs and in the Queensland electorate of monwealth to reregulate the dairy industry Ryan. We now have a by-election in Aston. and has guaranteed the full support of the The circumstances of each by-election are Queensland government. What blatant hy- quite different, but they have one thing in pocrisy! Beattie knows that the Common- common: by-elections are very expensive. wealth had no role in the decision to de- With respect to the Ryan by-election, the regulate the dairy industry. voters were clearly angry at having to return In fact, the Commonwealth responded to to the polls when John Moore decided to the dairy industry with an adjustment pack- retire suddenly less than a year from the gen- age worth $1.8 billion, financed by a con- eral election. sumer levy of 11c per litre. That was subject I suggest to the House that we abolish by- to every state deregulating. That includes elections and adopt a similar system of fill- Queensland. When Beattie deregulated in ing casual vacancies as we do in the Senate. Queensland, he offered no compensation to If we did that, the John Moore scenario could farmers for their loss of quota. That was their not be repeated, at enormous cost to the tax- production equity. Quota was the basis of payer. Casual vacancies could be filled by borrowings by farmers for carry-on finance. party nominations and ratified by parliament. With one stroke of his pen Peter Beattie de- In the case of voluntary or involuntary re- stroyed their equity, with no compensation— tirement through death or illness of an Inde- there was no fulfilment of Beattie’s moral pendent, for instance, a formula could be obligation to compensate farmers for loss of found to replace such a member. By- quota. New South Wales and Western Aus- elections seldom affect a government’s man- tralia, the other quota states—they are also date or its numbers on the floor of the House. Labor states—were in a similar position. Such arrangements would have strong elec- This budget provides an additional $140 toral support and save taxpayers considerable million in adjustment for the dairy industry money. I commend the budget to the House. to help those farmers the states have aban- doned. I commend the government for this Mr TANNER (Melbourne) (8.34 p.m.)—I important initiative and show of compassion rise to speak on the Appropriation Bill (No. to pay for a state responsibility, something 1) 2001-2002. The budget that is before the that is the moral responsibility of each state. House tonight is a panic-stricken cry for help from a government that is in terminal decay, Any federal budget is a massive task. The a government that has been squandering the ramifications are widespread, touching eve- nation’s money as if it has no tomorrows and ryone’s life in one way or another. By far the that clearly understands that the pain it has greater part of the budget refers to ongoing generated in the community is now coming programs. The highlights of the budget are home to roost. This is a government that has usually new initiatives, and this budget is no gradually eroded the fiscal position of the exception. As well as help for older Austra- Commonwealth over the past three years to a lians, this budget contains major reforms in point where the position is now extremely welfare and work, strengthening Australia’s 27196 REPRESENTATIVES Monday, 4 June 2001 parlous, coming from an original position in It has been very interesting to hear the ex 1996 when the government made great play post facto justifications made by the new of the fact that it cut a very substantial Secretary to the Treasury, Mr Henry, in re- amount of money from Commonwealth out- cent times—in particular, his plea that most lays over the subsequent four years in that private commentators and economists got it first Costello budget in 1996. Those cuts wrong as well. Of course, we would hope— were in total roughly $24 billion, and of and I certainly hope, should I be fortunate course they came from things like education, enough to be finance minister in an incoming universities, child care, labour market pro- Labor government—that the Treasury will be grams, health and a variety of other very im- a little better than private forecasters when it portant programs, most of which were re- comes to projecting economic growth and lated to the fundamental economic substruc- changes in other parameters as a basis for ture of the nation, particularly in areas of determining Australia’s fiscal position. If it is knowledge generation like universities, re- no better than private forecasters then we are search and development and things of that in deep trouble, and we are already in sig- nature. nificant fiscal trouble as it is. It is interesting to note that the outcomes We have had one quarter of negative for the four years that followed actually re- growth and within that one quarter we saw flected a net increase in expenditure by the the overall fiscal position of the Common- government of $38 billion. In other words, wealth crumble before our eyes. It took one they cut $24 billion off Labor’s estimate for quarter alone to raise the possibility that the the four years starting in 1996-97 but in out- budget would move into deficit to put the comes, in actual events, the government government in a position where significant spent $38 billion more than they projected at measures would be required—and ultimately that time. We have seen since that time an significant fiddles would be required—in even more substantial erosion of the overall order to ensure that the budget did not auto- fiscal position of the Commonwealth. matically fall into deficit as a result of a Between the budget last year and the re- relatively limited modest downturn, as it then lease of the midyear economic and fiscal was. None of us knows to what extent the outlook papers in November of last year, downturn will be entrenched and to what approximately $600 million worth of new extent we will enter very serious economic spending was added to the overall fiscal po- decline. None of us yet knows where these sition of the Commonwealth. The period things will head. But the fact that a very lim- between the midyear economic and fiscal ited downturn was enough to put the budget outlook and the budget this year saw an ad- on the brink of deficit is testament itself to ditional $2.3 billion added to the total the inadequate fiscal management of the spending for the financial year that is about government. to conclude and another $2.1 billion added to In the period immediately prior to the the financial year that is about to start—in budget, we have seen a massive additional other words, the 2000-01 financial year and spend by the Howard government on the 2001-02 financial year, respectively. At backflips, on backdowns and on disasters— the same time that this was occurring, the backflips such as on petrol, the business ac- government upgraded the growth forecast for tivity statement and beer excise; backdowns the financial year from 3.75 per cent to four on things like the taxation of trusts as com- per cent. This upgrading occurred right in the panies; and disasters such as the two tranches middle of the first quarter of negative growth of spectrum sales associated with the 3G that Australia has experienced for approxi- spectrum and datacasting. But none of us mately a decade. The Treasury, the Treasurer, could have been prepared by recent history the Prime Minister and the government col- for the extent of the bonanza of spending that lectively got it very wrong indeed. we have seen in the budget itself for the Monday, 4 June 2001 REPRESENTATIVES 27197

2001-02 year, and which is also reflected in 2000-01 year were held back to the next fi- the out years presented in that budget. nancial year and Defence property sales There are three years in common over the worth about $200 million that were due to four years in each of the two budgets for occur in forthcoming financial years beyond 2000 and 2001. Each budget projects an 2001-02 were brought forward. So $560 amount of revenue and spending for the million worth of Defence property sales that forthcoming financial year as its primary were not scheduled to occur in the forth- task and it also entails projections for the coming financial year have been put in that ensuing three years. That means that when year to prop up the surplus. you are comparing one budget with the fol- There are various other windfalls that lowing year’s budget, you have three years have helped the government cobble together which can be directly compared. It is a very a very dubious surplus, such as an unex- interesting exercise to compare those three plained drop of $700 million in Public Serv- relevant years in the current budget with the ice superannuation payouts and a stark leap three years that are the same years that were in dividends paid by the Reserve Bank and projected in the previous budget. The three other GBEs to the tune of $2.1 billion, the out years in the budget last year of course are vast bulk of which is attributable to the Re- the same years as the first year and the first serve Bank and to profits made on trading in two out years in the budget this year. The the Australian dollar. In other words, had it projected surpluses in those three years in the not been for the collapse in the Australian budget last year were $3.2 billion, $8.8 bil- dollar in recent times, the budget clearly lion and $14.4 billion. The surpluses pro- would have been very substantially in deficit. jected for the forthcoming financial year and There are other smaller amounts that are all the subsequent two years are $1.5 billion, fortuitously in the budget, such as $97 mil- $1.1 billion and $4.1 billion. The net differ- lion that has been gained as a result of the ence is roughly $20 billion. In other words, deferral of the sale of Telstra. within the space of one fiscal cycle, one The tragedy for the nation is that the budget, the government has shaved almost spending that has been going on is, by and $20 billion off the projected surpluses over large, of limited value, relatively unproduc- three years. tive, focused on consumption, not invest- The extraordinary thing is that roughly 80 ment, and invariably driven by political im- per cent of this change has come from peratives at the expense of the broader inter- spending. It cannot be attributed to the ests of the nation. When we left office, the downturn in the economy or to the inevitable government was the ninth largest advertiser changes in parameters that that produces— in Australia. The only number one perform- the increase in welfare payments or the reduc- ance that the Howard government has man- tion in taxation receipts that usually follows aged to deliver in its five years in office is to from such changes. Eighty per cent of that become the nation’s largest advertiser. Simi- $20 billion comes from direct policy deci- larly, consultancies are now $220 million a sions by this government. The surplus that is year more expensive than in the last full fi- projected for the forthcoming financial nancial year of Labor being in power. In year—the 2001-02 year—is based essentially 1999-2000, $119 million more was spent on on sand. It is based on one or two outrageous consultancies than in the previous financial fiddles—for example, the bringing forward year. and holding back of Defence property sales. On substantive programs such as the In the past, we have seen some pretty crea- Natural Heritage Trust, the Regional Tele- tive accounting in budgets but this is, I think, communications Infrastructure Fund, the the first time ever that we have seen a com- Centenary of Federation Fund and various bined bring forward and hold back in one smaller programs such as the families pack- measure. Defence property sales worth about age we have seen a consistent pattern: unfo- $360 million that were due to occur in the 27198 REPRESENTATIVES Monday, 4 June 2001 cused, fragmented spending, often on very Some of the key giveaways in this budget, small items that are not of economic, pro- in which the government obviously places ductive value. We have seen town halls being great political faith, are not quite what they refurbished, consultants writing reports about seem. The $300 paid to pensioners is seen the future telecommunications needs of par- universally as being in lieu of the $1,000 that ticular parts of Australia and very small, lo- they were promised and, in a sleight of hand calised environmental programs, which may exercise, was slipped in for the financial year be worthy in a narrow isolated sense but which is about to end, again in order to help which form no part of a broader environ- the Treasurer prop up a very dubious surplus. mental strategy to remediate the Murray- Self-funded retirees are looking at the fine Darling system or to tackle the salinity print, as you always have to with John How- problems in our rivers or any of the other ard, and are discovering that what has been fundamental issues that face our nation. Un- delivered is significantly inadequate com- fortunately, this stands in stark contrast to the pared with what was portrayed as being de- great needs which Australia has in terms of livered. investment by government in economic ca- The full GST input relief on motor vehi- pacity and in improving the quality of our cles purchased by small businesses is a natural and physical assets and our human bring-forward by one year of something that capital, which stand as great challenges to was always going to happen. The welfare governments of either side of this House. and jobs package, which has been much Nowhere near enough has been done to touted by the government, relies very heavily ensure that all Australians will soon get ac- on unspecified savings, which essentially is cess to the Internet. Nowhere near enough code for more and more arbitrary breaches has been done to ensure that the Murray- where people in many cases find it very dif- Darling system and our great agricultural ficult to comply with particular regulations heartland will become sustainable and that and who should be given some degree of the overuse of water, which is gradually surety that they can function with appropri- crippling the system, will be reversed. No- ate government assistance and not have it where near enough has been done to ensure arbitrarily removed or reduced in this way that our interstate freight rail system, which purely to produce budget savings. is seriously dilapidated and has been ne- There has also been no change in the glected for a long time, will be remediated. quality of information that we are getting in It is interesting to note that a number of the budget. This government has seriously Labor initiatives have been picked up in the diminished the capacity for public scrutiny budget. Certainly we applaud them. In some of the budget so that, under the guise of the cases they are things which the government introduction of accrual accounting, we have introduced and then reversed. For example, seen the removal of detailed forward esti- the work credit idea, which Labor put in mates on programs, we have seen the re- place and the government abolished in 1997, moval of the ability to scrutinise particular from memory, has now been put back. The officers or particular bodies such as the Of- government also sought to include superan- fice of the Status of Women—we can no nuation in the assets and income test for longer track the specific budget for that par- people applying for unemployment benefits, ticular entity and numerous other equivalent which was an extremely cruel policy deci- important entities—and we have also seen sion. That has now been reversed. They have the ludicrous use of outcomes that are so finally worked out that training has a very broad and so vague as to effectively be important role to play in labour market pro- meaningless as a basis for financial ac- grams, and so there is a significant change on counting. We have also seen the shifting of that front. And they have realised the desper- Telstra and the impact of the Telstra sale in ate need for more places in regional univer- the budget without disclosure of the full es- sities. timates by the government, again claiming Monday, 4 June 2001 REPRESENTATIVES 27199 the commercial-in-confidence excuse as a trate that we have to be cautious about the reason for not disclosing extremely impor- threat of inflation and that further pressure tant information. on the Australian dollar and on interest rates On the economic front, we are in a trou- from an even bigger fiscal splurge would be bled period, there is no doubt. We have me- most unwelcome in the community gener- dium-term problems which arise from the ally. government’s failure to invest in research It is interesting to note the broader politi- and development, in knowledge, in universi- cal context of this budget. I am amused by ties and in public education. We face a sig- the commentary of some business organisa- nificant external risk, and that is acknowl- tions that it is a fiscally responsible budget edged in the budget—it has not yet arrived which will boost productivity. It would ap- and already we are facing some difficulties. pear that some peak business councils in The 3.25 per cent growth forecast is I think Australia demand fiscal responsibility of fairly hopeful. The IMF recently estimated Labor governments and re-election of Lib- for the calendar year that Australia’s growth eral governments. I am also amused by the would be 1.9 per cent. Unemployment is claims that in some ways this is a very smart estimated to head to seven per cent, from a budget politically because it has boxed in the government and a Treasurer who only re- Labor Party. Even leaving aside the rather cently were boasting that pretty soon we obvious point that the management of the would see an unemployment figure with a nation’s finances in the interest of the nation five in front of it. really has to take precedence over smart po- The GST’s impact on the economy is very litical gains, there are some fundamentally obvious when you read the budget papers. It flawed assumptions in this argument. has dampened economic activity. Where this The first is the assumption that, had the is particularly obvious—this has not been surpluses projected in last year’s budget been widely reported—is that, although we had available, Labor would have gone on some only one negative growth quarter in the De- sort of spending spree. That simply would cember quarter, we actually had two quar- not have occurred. What we recognise is that ters, the September and December quarters, it is quality of spending that counts far more where domestic final demand diminished— than quantity. Voters are very cynical about went backwards, was negative. They are the big promises, about big spending govern- GST quarters. So in those two quarters we ments, and the one lesson that has been ab- saw a reduction in final domestic demand. solutely paramount for the Labor Party over Some have said that pump priming is ap- the past two decades in this country, be it at propriate in the current economic circum- state or federal level, is that, without fiscal stances. I would disagree quite strongly with responsibility and sound economic manage- those suggestions. The government’s fiscal ment, our aspirations to improve the nation’s splurge is, in effect, already pump priming, public education system and the nation’s although it is extremely badly targeted and of public health system, our aspirations to en- very limited overall economic value. Our sure that people have better living standards growth outlook is uncertain. We do not yet and that government services are delivered to know whether we will end up in recession. the people in a more effective way, all ulti- There are some positive signs; there are mately end up as nought. Without sound fis- some negative signs. So it is still unclear. cal management, we cannot seek to achieve those objectives, to make them sustainable There is a significant inflation risk. Petrol and to entrench them. Therefore, the notion prices have had a significant inflationary that Labor are boxed in is really a bit ludi- effect. The value of the dollar falling so crous. The government has been congratu- quickly, the GST, cuts in interest rates, which lated by some commentators for denying us stimulate further activity, and the March an opportunity to do something that we were quarter inflation figure of 1.1 per cent illus- not going to do anyway. 27200 REPRESENTATIVES Monday, 4 June 2001

This budget is really the death rattle of a (14) failure to deliver its guarantee that no Aus- dying and discredited government. Australia tralian will be worse off as a result of the needs a Labor government to invest in na- GST package”. tional economic capacity, such as research Mr DEPUTY SPEAKER (Mr and development and the knowledge nation, Hawker)—Is the amendment seconded? to ensure that we have a fiscally robust posi- Ms Ellis—I second the amendment and tion which is a sound basis for Australia’s reserve my right to speak. future and to guarantee proper transparency and public scrutiny of these processes. I Mr ENTSCH (Leichhardt—Parliamen- move: tary Secretary to the Minister for Industry, Science and Resources) (8.54 p.m.)—I stand That all words after “That” be omitted with a here this evening to applaud the Appropria- view to substituting the following words: tion Bill (No. 1) 2001-2002 and to recognise “whilst not declining to give the bill a second the magnificent efforts of this government in reading, the House condemns this Government dealing with some very difficult economic for its: challenges that we have had. I noticed the (1) reduction in the projected Budget cash sur- member for Melbourne expressing concerns plus from $14.6 billion when the 2001-02 about the accuracy of the figures in this Budget year first appeared in the 1998-99 budget. I would suggest that Labor have no Budget Papers to a surplus of $1.5 billion and an accrual deficit of $0.8 billion in this credibility at all, given their record. I re- Budget; member that, back in 1996, we came in ex- pecting a surplus but we found a $10 billion (2) failure to address the significant investment needs in the areas of education and health deficit. That really blows away any credibil- provision; ity that the Labor Party have with regard to having accuracy of budget figures. He talks (3) string of policy backflips and wasteful, panic driven spending across almost all program about surpluses—again something which I areas; suggest the Labor Party know very little about. You just have to ask his leader about (4) commitment to sell the rest of Telstra if re- elected; the continual run of deficits he had in the time up until 1996. As for the windfalls that (5) failure to provide relief for Australian fami- he talks about, I would suggest that these lies under financial pressure; have come about through the very responsi- (6) failure to address the hardship, and red tape ble economic policy of this government. nightmare faced by small business arising from the introduction of the GST; What we see here today, again, is the gov- (7) deception of self-funded retirees and pen- ernment delivering another surplus—$1.5 sioners through misleading taxation claims; billion. All of this money goes to continue to pay back the excesses of our predecessors. It (8) failure to provide a comprehensive retire- ment incomes policy which addresses the is important that we continue to focus on the needs of the new century; fact that since 1996 we have paid back some $60,000 million of the Labor Party’s (9) lax approach to corporate governance issues which has contributed to the recent spate of multibillion dollar debt that we inherited. corporate failures; That means we are paying $4,000 million a year less in interest bills. And it is that (10) lack of an ongoing commitment to the pro- tection of employee entitlements; $4,000 million of savings on interest that we are able to invest in a range of initiatives that (11) misuse of taxpayers’ money on its politically benefit a very broad range of Australians. partisan GST advertising campaign; (12) provision of complex, confusing and unin- One of the highlights of our budget was formative budget documents; the acknowledgment that we were able to give to the contribution of those individuals (13) failure to identify in the Budget papers the true cost of GST collection and implemen- who have taken it upon themselves to make tation; and sure that they are looking after themselves in Monday, 4 June 2001 REPRESENTATIVES 27201 retirement. I refer back again to 1996 spe- ing that will assist GPs in being able to diag- cifically because I recall that at that stage the nose asthma much earlier, to develop a care threshold for paying tax was something like plan and to review the plan with the patient, $5,400 or $5,600. We now have that thresh- thereby minimising the risk of hospitalisa- old for a single individual at $20,000—they tion, particularly with our children. We are can earn that much without having to pay seeing an apparent increase in asthma. tax. For couples it is $32,612. I know that in The additional resourcing that we are put- my electorate that has been very warmly ting into diabetes is also something that I welcomed by my independent retiree con- particularly applaud. This goes a long way to stituency, as has the increase in the threshold building on what we already have been able for eligibility for the Medicare levy from to achieve. I refer specifically to my elector- $13,550 to $20,000. Also, the backdating to ate. We have had funding to put dialysis ma- 1 July 2000 of the benefit with regard to the chines into places like Weipa and Bamaga. I increase in threshold is something that has am hoping that in the near future we will be certainly been applauded. able to put one into Cooktown. There is a The extension of the Commonwealth diabetes specialist, Dr Ashim Sinha, in the seniors health card to some of my self- Torres Strait; he has made a profound differ- funded retirees is another thing that has been ence to the health of Torres Strait constitu- greatly applauded. In many cases, Mr Dep- ents, who in the past have suffered a very uty Speaker, as I am sure you would be high incidence of diabetes, which, sadly, in aware, these people have, through their own many cases, has led to very premature thriftiness over time, been able to provide for deaths. To see a focus on diabetes is also themselves in their later years. In doing so very good. they have really not drawn any more than the There has also been additional funding for average pension, but they have found them- cervical cancer and for mental health. Mental selves to be severely disadvantaged in that health is an area that I have spoken on in this they have not been able to access things, for House on a number of occasions. It is great example, like concessions for the telephone, to see that we are giving mental health rec- which they can now do, as well as the health ognition by additional resourcing, but it is an card and other entitlements that are available area that we need to continue to focus on, to your broader pensioners. It is also ac- because there is still a lot we can do with knowledged that many of these people have regard to funding. There is a profound need additional costs. Many of them own their for funding for mental health in our commu- own homes, and have to pay their own rates nity. and upkeep, so it is usually a real cost to them. To be able to pass on some of these There is funding for improving after-hours benefits—not so much benefits as entitle- medical care—some $43 million over four ments—shows that we do acknowledge and years. Another thing I see in the budget that recognise those who are able to provide for will certainly help us up our way is the addi- themselves. tional resourcing for health education and for nursing places. One of the things we were Health was another major beneficiary in very fortunate to get recently—again an ini- this budget. There was an additional $900 tiative of this government—was the medical million to strengthen Medicare and the facility at James Cook University at the health system through providing better ac- Cairns and Townsville campuses. Remote cess to primary care service and boosting tropical medicine, and in particular the ini- targeted funding for quality primary care to tiative that will put more nurses through, will ensure safer use of medicine. We have also have a very positive effect in our region. put forward a three-stage program for GPs. This is something that is very good. We are Another area is education. We often hear recognising the high incidence of asthma in the debate with regard to public versus pri- our community, and we are providing fund- vate from the other side and from their union 27202 REPRESENTATIVES Monday, 4 June 2001 colleagues. We have another $238 million these groups. It is some 55 years later, and over four years going into government we are the first government that has actually schools. This represents a 42 per cent in- acknowledged their contribution by giving crease in spending on education since 1996. I them a payment, albeit relatively small for can assure you that there is not one of the the amount of suffering that they had; nev- states that could claim to have anywhere near ertheless a payment in recognition of very that percentage of increase over that period. special people. It is important that the states start to have a Another area that I would like to touch on close look at that, particularly in Queensland, in the time that I have is road funding. The where the unions have been running a cam- federal budget allocated $62.5 million to paign for quite some time. I thought it was local councils throughout Queensland as part rather disappointing. During the recent state of the Roads to Recovery program. This is in election, I was astounded by just how silent addition to moneys allocated to councils they were. It is the state government that through financial assistance grants identified owns the buildings and in effect owns the for roads. In effect, it almost doubles the public system in Queensland; yet there was Commonwealth’s commitment to local not a single murmur from the teachers union authorities. It is important that we fund those in an effort to encourage the state govern- directly through the local councils. In that ment to improve their very poor performance way we can be assured that the money that is in commitments to funding education in being spent is not siphoned off into the state Queensland. coffers but goes directly into the local The continuation of the National Literacy authorities. It would be great if we could and Numeracy Plan is an excellent initiative. encourage the state government to allow us Another initiative that I was very heartened to put the money straight into the state gov- to see in this budget was the Jobs Pathway ernment schools, too, rather than have it fil- program. That has been an outstanding suc- tered, I guess, through the state government. cess. It has been taken up by many of the I am sure that would be one way of ensuring schools in my electorate and has certainly that the state government schools were also made a great difference in focusing young able to receive a greater share of the money people and assisting in getting them job that is being allocated through the Com- ready. There was some speculation—some monwealth. mischief—suggesting that it was a program Again, there has been huge neglect, I that was likely to not be continued, but I would suggest, over many years of our infra- have to say to you that there should have structure such as roads, to a point where it been absolutely no reason for any concern has to be acknowledged that the local for a program that is as successful as the Jobs authorities are flat out maintaining many of Pathway program is. It is something that I the roads to existing standards, let alone am sure will continue to deliver excellent building new ones. The Roads to Recovery outcomes for the students in my electorate. program is certainly something that will see Another initiative—and this again is an a turnaround in that. I would also suggest acknowledgment of the fine contribution that that, as we start to see the benefits of paying they made—was the one-off payment of less and less interest on an ever-reducing $25,000 for former prisoners of war of the government debt, the savings on the interest Japanese, and also the extension of that payments there could be invested in infra- payment to civilian internees and detainees, structure such as roads. A good example of or to their spouses, should they themselves that is the Peninsula Road development in have passed on. That was a great initiative. It my electorate, which I am very keen to see at is things like that that come out of responsi- some stage in the near future being acknowl- ble management, in that by managing and edged as a road of national importance and, budgeting as we did we had money available in doing so, having the opportunity of seeing that we could start to pass on to some of some of the Commonwealth funds go to- Monday, 4 June 2001 REPRESENTATIVES 27203 wards the $165 million needed to upgrade bor. There may not be an allocation for eve- that road to an all-weather road. At the mo- rybody in this particular budget, but we cut ment, the road is closed for something like up the Bankcard in 1996, and everything we five or six months of the year, and it is a have paid for is money in the tin. As money major problem with regard to health and comes through the savings that we make, we economic impacts on the Cape York com- will continue to pass those benefits on to a munity. After five years of pushing the local greater range of Australians. (Time expired) state member and current Minister for Trans- Mr KELVIN THOMSON (Wills) (9.14 port, Mr Bredhauer, a couple of days before p.m.)—The centrepiece of this budget was a Christmas he managed to put an application half-baked attempt by the government to say in for roads of national importance—unfor- sorry to those older Australians, the pension- tunately, not soon enough to be considered in ers and self-funded retirees, who have been this budget. If I were a cynic, I would have so cruelly affected by the government’s GST, to believe that maybe it was done deliber- that tax under which nobody—repeat, no- ately so that he could have a shot about not body—was going to be worse off. The gov- being successful. However, it is something ernment now acknowledges that tens of where we need to put politics aside and con- thousands of retired Australians have been tinue to pursue that endeavour, because it is made worse off as a result of the GST, and it vital not only to the Cape York community has endeavoured in this budget to say sorry but also to the northern community as a to them. Regrettably, the compensation lasts whole to see that all-weather road in the not for one year but the GST goes on forever. too distant future. Compensation would have been a little Another great allocation we were able to more substantial if the government had not announce was the additional $15.3 million, I had to engage in a $500 million bailout over think it was, for the extension of the Torres the course of the next 10 years to cover poli- Strait infrastructure program. The $30 mil- cyholders who have been left stranded as a lion that had been allocated over the past result of the collapse of the insurer HIH—the three years has made possible absolutely out- largest corporate collapse in Australian his- standing achievements in getting good qual- tory. Since I spoke on this matter on the ity water in all the communities in the Torres matter of public importance debate when Strait, plus sewerage systems, and certainly a parliament was last sitting, last Thursday major catch-up on housing and other infra- week, there have been a couple of significant structure. It is an absolute credit to Terry new developments. The first of those is that Waia of the Torres Strait Regional Authority we have had the provisional liquidator’s re- for the outstanding work that they have done. port, which is truly alarming. It estimates the I was pleased to see that our half of the con- losses at between $2.7 billion and $4 billion. tribution for the next three years has been It further states that reliable estimates of committed, and I certainly call on the creditor payment outcomes will not be pos- Queensland state government to match that sible for at least a year and there will be a $15 million, so that they can get on with the delay of two years before the first general work that they are doing for those 17 com- dividend payment and a delay of up to 13 munities throughout the Torres Strait. years before the final payment to creditors. Another area that I would like to touch on That $2.7 billion to $4 billion makes this the is small business. I would say to you that largest financial collapse in Australian his- small business has come out as a winner in tory. And it is clear that neither the federal this budget. Certainly, with the reduction of nor the state bailout packages will ade- company tax from 34 per cent to 30 per cent quately cover the losses now being faced by and the fact that the financial institutions innocent HIH policyholders. The other thing duty is going to be dropped, they are paying that was very significant about the provi- record low interest rates. I can recall running sional liquidator’s report was the statement a business and paying 23 per cent under La- that: 27204 REPRESENTATIVES Monday, 4 June 2001

The very substantial losses are not restricted to science, directors and senior managers the last nine months of the operation. should now withdraw these claims. What- HIH did not sink suddenly. It was sinking for ever legal entitlement they may have, surely a long time. And those whose job it is to no- they have no moral or ethical entitlement to tice these things—the auditors, Arthur An- further HIH money. dersen; the regulator, APRA; the Minister for When APRA was first established, Treas- Financial Services and Regulation—have a urer Costello said it would give Australia a great deal of public explaining to do. stronger regulatory regime designed to better The second thing that has occurred since I respond to developments in the finance sec- last addressed the House on this topic is the tor. Indeed, this boasting continued for quite collapse of One.Tel and some further focus some time after the establishment of APRA on corporate governance issues. Indeed, to- and ASIC. But we can now see, with the re- day the Prime Minister said that the One.Tel lease of the provisional liquidator’s report, directors Jodee Rich and Brad Keeling had a how the great financial managers of the moral obligation to pay their million-dollar Howard government will leave a legacy of a bonuses back to the company. But he could 10-year, taxpayer funded bailout to meet the have, and indeed should have, made the worst insurance company collapse in Aus- same observation about the HIH directors tralia since Federation. who drove that company into the ground. Labor also wishes to place on record some According to the HIH 1999-2000 annual re- concerns about the bailout arrangements, port, chief executive Ray Williams was paid however reluctantly entered into by this gov- a cool $1.147 million in 1999-2000 for his ernment. As things stand, we have a private great work in building up the company. Mr company effectively being given a blank George Sturesteps was paid over $770,000 in cheque from Commonwealth taxpayers to 1999-2000, Mr Dominic Fodera was paid pay various unquantified amounts to an un- over $677,000, Mr Terence Cassidy was paid specified group of people under unknown over $671,000 and Mr Randolph Wein was criteria. There are questions about the ac- paid a more miserly $648,000. Mr Fodera, countability of this body to the parliament, Mr Wein and Mr Cassidy are now reported to the Senate estimates process, the Common- be claiming severance packages of up to $1 wealth Auditor-General and the departments million each. These failed HIH directors of Finance and Administration and Treasury. should withdraw their severance claims im- Nor has the minister made clear to the public mediately. In all good conscience, they just how this private company will be ac- should not have accepted salaries of in ex- countable to the financial system regulators, cess of $500,000 when their mismanagement such as APRA and ASIC. Clearly, we need of HIH will cost Australian taxpayers $500 to have appropriate accountability in relation million and policyholders untold misery. In- to this body. Not only should the bailout pro- deed, they should hand back this undeserved cesses of this private sector rescue vehicle be money. completely transparent but also the adminis- The severance claims have the same status trative and personnel costs must be scruti- as other claims from unsecured creditors, nised by parliament and the Auditor-General. including policyholders. As a result, if these In any HIH rescue, the taxpayer cannot af- severance claims were honoured, it could ford a double whammy by having to pay ex- only be at the expense of HIH policyholders orbitant private sector level fees to managers who have been innocent victims of the HIH or consultants. It is still the case that the collapse. Even before the royal commission, bailout is being worked on without the in- it is abundantly clear that the directors and volvement of the states, without the in- senior managers of HIH and associated com- volvement of the opposition and without the panies have managed to turn it into a billion involvement of representatives of the policy- dollar disaster, leaving taxpayers holding a holders who are the victims of the collapse. $500 million baby. So, in all good con- As a result, victims still have no idea who Monday, 4 June 2001 REPRESENTATIVES 27205 will be covered and still no prospect of a given to them by APRA and ASIC, the gov- decent night’s sleep. Indeed, I have talked ernment’s handling of insurance industry with people who have filed for bankruptcy regulation issues, including a review of the based on legal advice because they simply Insurance Act since 1998, and any role could not wait any longer for the govern- played by political donations in the HIH de- ment. bacle. I regret that the government has not been The sort of thing that the royal commis- interested in any bipartisan way of handling sion ought to be looking at is the fact that the this matter. Back on 12 April, the day before New South Wales Motor Accident Authority Easter, I wrote to Mr Hockey, the Minister expressly raised with APRA the idea of ap- for Financial Services and Regulation, urging pointing an inspector as early as October last him to convene a roundtable of all the rele- year. The New South Wales Motor Accident vant parties to try to come up with a national Authority became very concerned about the solution to what was clearly an emerging state of HIH insurances. Its chairman con- national crisis. I said to him in my letter: tacted a senior APRA officer to raise with The Opposition would also wish to be invited to him the option of appointing an inspector, such a round table, and would be interested in and APRA advised the New South Wales working constructively in a bi-partisan way to- Motor Accident Authority that it would pre- ward addressing the outstanding problems faced fer that the Motor Accident Authority not by victims of the HIH collapse. send an investigator into HIH because APRA I regret that the minister has never seen fit to was working with the company and did not respond to that letter and has not seen fit to wish to have any ‘pre-emptive activity’ that involve either the opposition or the states, might cause a loss of market confidence. which clearly have an interest in this matter, Instead of the minister backing up APRA in in endeavouring to work out a comprehen- relation to these things, he ought to be mak- sive national solution. As a result, there are ing sure that APRA is publicly accountable many cases—and many members of this for what it did, rather than complacently ac- House would be aware of cases in their own cepting APRA’s explanation that it did not electorates—such as the family company wish to damage market confidence in HIH. Fresha Foods being served with a bill for APRA’s responsibility is to protect consum- $600,000 from the Hilton Hotel in Cairns in ers and policyholders rather than the share relation to a claim against them which their market. insurers, HIH, saw fit to settle just prior to I also indicate that we want close scrutiny going into liquidation, and there are many of the issue of political donations. HIH’s other examples of hardship as a result of the $696,000 of donations to the Liberal Party, way in which the government has handled including a $100,000 donation to the Free this matter. Enterprise Foundation, have become a matter The other thing that we remain concerned of notoriety in recent days and weeks. The about is the terms of reference of the royal opposition also notes that support for the commission. We have had an announcement Free Enterprise Foundation was recorded in by the government, under duress, of a royal the award citation when Mr Ray Williams commission. They said, ‘We could not have received an Order of Australia. Given that a royal commission because that would poli- the Free Enterprise Foundation is an associ- ticise matters; that would get in the way of ated entity of the Liberal Party, we need an ASIC.’ Then Labor said, ‘A Beazley Labor assurance that Mr Williams’s support for the government would hold a royal commis- Free Enterprise Foundation was not a factor sion.’ And, hey presto, we get a royal com- in the award of this Australian honour, and mission. But we still do not have the terms of such an assurance is indeed vital to the integ- reference, and we insist that these terms of rity of the Australian honours system. reference go to things such as the action of Howard government ministers and the advice 27206 REPRESENTATIVES Monday, 4 June 2001

Another thing that the royal commission ent commentary on the status and standing of needs to be examining is the conduct of the HIH in fact are not offering much of value at auditors. In a matter of public importance all. debate a week or so ago I had a few things to Another area that the royal commission say about the conduct of Arthur Andersen, needs to examine is the transactions involv- the auditors; about how they were able to ing HIH and Home Security International, charge and receive $1.7 million for signing the Sydney burglar alarm company that Mr off on books that said that HIH was Rodney Adler and Mr Brad Cooper built up $930 million in the black—that is to say from a small operation. What we saw hap- $1 billion in the black—when it turns out pening during last year was that, on the one that HIH was a cool $1 billion in the red. hand, HIH decided to write down its holding I also raise the issue about the conduct of in HSI from $50 million to zero as at 30 June others who get paid good money and who 2000 and, on the other hand, it released that provide nothing of value in exchange for it. information on 14 September 2000. Notwith- There is the question of the insurance bro- standing that very pessimistic assessment of kers. They have been criticised for placing HSI’s prospects, what HIH managed to do clients’ business with HIH in recent years, over a six-month period from April was to despite what appears to be widespread con- pump something like $40 million into this cern about the company’s financial position. company, which is now delisted. On 11 April The brokers say that they rely heavily on the 2000, the day that Mr Adler joined Home opinion of independent agencies like Stan- Security International as chairman, Home dard and Poor’s. Mr John Richardson, the Security International announced that they chairman of insurance broker Marsh said, had received an infusion of cash from HIH, ‘We are reliant on external agencies to a sub- which was buying a half-share in FAI Fi- stantial degree because the external agencies nance Corporation from Home Security In- are in a privileged position in that they have ternational. On the one hand the HSI ac- access to confidential financial information.’ counts say that HIH paid $13.4 million for So you wonder just what it is that the insur- the stake and lent another $5 million but on ance broker Marsh are doing, what kind of the other hand, according to the Financial value they are adding and what it is that they Review, if you look at the HIH June 2000 are getting paid for, because they say, ‘Well, accounts, you will see that they say HIH paid actually, we have to rely on the ratings agen- $25½ million. So HSI accounts say one thing cies.’ and HIH accounts say another. Further to The ratings agency Standard and Poor’s that, we found HIH agreeing on 29 Septem- representative, Mr Ian Thomson, said that ber to buy half of the subsidiary company, the ratings agencies do not represent them- Ness Security Products, from HSI for $17.5 selves to the auditors and go through all the million and also agreeing to lend a further contracts. He said that his organisation ulti- $2.5 million later that financial year. It is a mately relied on information provided by pretty extraordinary transaction to be putting management, along with actuarial reports that kind of money into a company which and audited accounts, and that the challenge HIH had already written down as being of no they have is that they rely on information value. That is precisely the sort of thing the from the company. Once again, you really royal commission ought to be investigating. have to ask yourself what it is that these peo- The other issue that Labor wish to return ple are getting paid for. Similarly, APRA to is the question of an insurance industry have said that the ratings agencies’ views and contribution. I set out in the House last reports are part of a general mishmash of Thursday week five reasons why we believe information that is out in the market ‘that we that an insurance industry contribution is certainly keep ourselves aware of’. So it appropriate. One of the things that the insur- turns out that all these organisations which ance industry says is that it is not appropriate are supposed to be offering some independ- to make the good companies pay for the bad Monday, 4 June 2001 REPRESENTATIVES 27207 ones and that that is not the way things work. However, some members of the opposition But indeed in a number of areas where peo- are trying to make out that this is a budget ple are required to put out money well in only for older people. I see it differently. advance of a service being provided, you see This budget benefits all Australians in a vari- precisely these sorts of operations and ar- ety of ways. As a small business operator in rangements in place. For example, you see my electorate said to me, it is a budget full of them in the area of superannuation, where hope and encouragement. Personally, I think there is a capacity to levy the funds where that this is a very important budget because it theft and fraud have occurred in order that helps secure our future and the future of our fund members not be disadvantaged. You see children. them in the area of travel agents—funds to This is the government’s fifth consecutive protect all consumers if some travel agencies budget surplus. As the Treasurer pointed out, go broke. You also see them in the area of as we pay off the debts—as we get the debt bookmakers. For example, in New South monkey off our back—we save on interest Wales country bookmakers are required to payments. Today the government’s interest acquire outstanding betting debts on behalf bill is $4 billion per annum less than it was of others if one of their own goes belly up. under Labor. That $4 billion of savings can The New South Wales Bookmakers Coop- be invested in better things, like health and erative Ltd schedule illustrates precisely this education. Back in 1995, the Commonwealth point—that bookies all across the state are spent the same on interest payments as it did required to cover each other, so that concept on schools and hospitals. It spent nearly as of industry contributions is not unprece- much on interest payments as on defence. If dented. the government are re-elected, we can con- We do not suggest for a moment that this tinue with the sound management that will should be a means by which directors or allow the government debt to be repaid by auditors are allowed off the hook. We are 2003. That would be the first time our coun- adamant that any government or insurance try would have been free of debt since industry payments to HIH policyholders are Gough Whitlam was elected Prime Minister. accompanied by an assignment of the legal I am pleased that this budget provides re- rights against directors and auditors and that cord funding for government schools with an those rights are pursued to the letter. These estimated additional $238 million being pro- are things which the government ought to be vided over five years. Contrary to union and acting on and, once again tonight, I urge the Labor Party rhetoric, the Howard govern- government to act on those outstanding is- ment has no agenda to expand the non- sues in relation to the HIH collapse and to government sector at the expense of gov- belatedly display some of the national lead- ernment schools. The government is leading ership which has been so conspicuously ab- the way in financial support for government sent from their handling of this matter to schools. Commonwealth spending on gov- date. ernment schools is at the highest level ever. Ms WORTH (Adelaide—Parliamentary For the sixth budget in a row, school Secretary to the Minister for Education, funding has increased. Every state and terri- Training and Youth Affairs) (9.34 p.m.)—In tory has received increased funding every addressing Appropriation Bill (No. 1) 2001- year from the Howard government for their 2002 I note that some have seen the 2001-02 government schools. Commonwealth fund- budget as a budget for older Australians. I ing for Australian schools in 2001-02 has am pleased that those who have contributed risen by six per cent over the last financial so much to our country have been recognised year. Over the next four years, the Com- and have benefited from a social bonus. This monwealth will spend $25 billion on Austra- has only been made possible because of the lian schools. Funding of government schools Howard government’s careful management increased by 42 per cent between 1996 and of the economy over the past few years. 27208 REPRESENTATIVES Monday, 4 June 2001

2002, yet student enrolments in government building project. It will provide the school schools have increased by only 1.4 per cent. with greater scope to meet students’ needs in This government recognises the impor- the 21st century. These school building proj- tance of literacy and numeracy. The federal ects are just two examples of the hundreds of government provides funding of $36.9 mil- capital projects in Australian schools sup- lion for literacy and numeracy over the next ported by the Commonwealth government two years, with further provision of $99.5 each year, with funding of over $300 million million up to 2005. It is good to see the per annum. For 2001-02 the Commonwealth commitment continue, as there has already government is committed to providing $5.9 been a 13 per cent improvement in the read- billion for schooling—an increase of $348 ing abilities of year 3 students across the million, or six per cent, over the previous country. I am delighted that the government year. and non-government primary schools in the The principal of the Rosary School in Adelaide electorate will receive nearly Prospect has asked me to convey his thanks $160,000 over four years to purchase books to the Prime Minister for the $1 million the written by Australian authors or published in school receives each year from the Com- Australia. This federal government grant monwealth government. I recently had occa- recognises and supports the Australian lit- sion to visit the Rosary School to present the erature industry. Twenty-four million dollars school with a certificate marking the Centen- has been committed to fund literacy and nu- ary of Federation and with a new flag. It was meracy training and career counselling serv- an assembly on a Friday morning, and it was ices for people on income support. a great start to my day. I congratulate Mr Two recent examples of federal govern- West’s year 4 class on the pupils’ wonderful ment support for schools within the Adelaide re-enactment of the story of the Australian electorate are the North Adelaide Primary flag and how it all began with Federation. Sir School and St Margaret Mary School at Edmund Barton, Cathy Freeman, Sir Donald Croydon Park. I congratulate the community Bradman, Gallipoli veterans and many other of the North Adelaide Primary School on the notable Australian characters were brought successful outcome of their redevelopment to life by the girls and boys of Rosary pri- proposal, for which the federal government mary school. The students of this school and provided $800,000—nearly one-quarter of of the numerous other primary and secon- the total cost. This joint venture between the dary schools in my electorate are very fortu- federal and state governments and the North nate in the quality of education they receive. Adelaide Primary School community will I am pleased that this budget adopts a pre- create a learning environment which will ventative approach to chronic health condi- meet the needs of today’s students as well as tions such as diabetes, asthma and mental those of future generations. The tender call illness, all of which have received significant will close at the end of this week, and com- attention and funding in this budget. Asthma mencement of work is anticipated soon af- is an inflammatory disorder of the airways terwards. It gives me great pleasure to have that affects up to two million Australians, been personally involved in the efforts to including one in four primary students and achieve the restoration and development of one in seven secondary students. This budget this historic landmark and important learning provides funding of $48.4 million over four centre. years to establish a three-stage program for It was also my pleasure recently to offi- GPs for early intervention and diagnosis of cially launch the redevelopment of St Marga- asthma. It will include developing a care ret Mary School in my electorate. The plan and reviewing that plan with individual Commonwealth government contributed a patients over at least three visits. This initia- grant of $601,000, which was the total cost tive will build on the Asthma Friendly of the third stage of the school’s master Schools Project, a major health and educa- tion initiative which is funded by the Com- Monday, 4 June 2001 REPRESENTATIVES 27209 monwealth government and which I recently and their families to get in touch with agen- launched in South Australia at the Black cies providing community care or residential Forest Primary School. aged care services in their local area. The The federal government has provided $1.2 federal government is spending $32.8 mil- million for the project over two years as part lion over three years to implement the Com- of the National Asthma Action Plan, for monwealth Carelink Program, with $2.9 which $8 million over three years has been million for South Australia. More than 60 earmarked. A school or college will be des- Commonwealth Carelink centres have been ignated as ‘asthma friendly’ if strategies are established in 54 regions around Australia, adopted that work towards actively support- including four in South Australia. ing the whole school community in the man- The Commonwealth Carelink program as- agement of asthma. I congratulate the Black sists older Australians to easily find the in- Forest Primary School community for formation they need about community and working towards becoming one of the first other aged care services in their local area asthma friendly schools in South Australia. from a central source, where they can get We aim to reach 25 per cent of the 10,000 useful information without having to navi- primary and secondary schools in Australia gate a maze of service providers. The Com- within the first two years, and all schools in monwealth Carelink program 1800 number metropolitan, rural and remote areas of Aus- will be a vital link between older Australians tralia within three to five years. This pro- and the wide range of services that are avail- gram will help save the lives of children by able to them to live at home and remain in- providing teachers with the basic knowledge dependent. Sometimes timely information to assist students and to manage an asthma and assistance can make all the difference for attack at school. As the mother and sister of older Australians when it comes to preserv- asthma sufferers, I know first-hand the im- ing their independence. portance of this project. Parents and students alike will feel more secure in the knowledge I congratulate the Seniors Information that proper care and understanding for Service and the Wesley Uniting Mission in asthma sufferers will be provided at school Adelaide on their selection to provide the and that appropriate action can be taken in Commonwealth Carelink centre in the north- the event of an emergency. west metropolitan region of Adelaide. As a former member of the House of Representa- This budget also provides $49.8 million tives Standing Committee on Community over four years for a national diabetes pro- Affairs, which inquired into our home and gram for the prevention, diagnosis and man- community care programs, I am delighted to agement of diabetes. Improving the quality see this come to fruition, because it helps of care for those suffering a mental illness is people find and access the services that they also an important feature of this budget, need. given that studies have shown that approxi- mately 18 per cent of men and women suffer I am pleased to see that this budget con- from some kind of mental disorder. Over tinues the government’s commitment to aged four years $120.4 million will be provided to care. During the 13 years of Labor govern- educate and train GPs on mental health is- ment, the quality of nursing homes was al- sues and to support GPs in delivering quality lowed to deteriorate. The industry was in mental health care, thus helping sufferers desperate need of capital for upgrading ex- who so often feel isolated and alienated by isting homes and building new ones. Since their illness. coming to government, total funding for I recently launched the Commonwealth aged and community care has grown from $3 Carelink centre in the north-western metro- billion to a budgeted $5.4 billion next year— politan Adelaide region. In the past, there 2001-02. That is an increase of 77 per cent. was no easy way for many older Australians 27210 REPRESENTATIVES Monday, 4 June 2001

The Howard government continues, on a ployment in the IT industry and four partici- number of fronts, to tackle the problem it pants have started their own consultancy. inherited. Funding for residential aged care Recently, I helped to commemorate a spe- will increase substantially. Nursing home cial milestone in the proud history of the standards will continue to improve. Ten mil- South Australian film, video and multimedia lion dollars will be spent on monitoring industry, with the opening of new state-of- nursing homes and conducting spot checks. the-art production facilities in Kent Town in The Community Visitors Scheme will ex- my electorate. The Kojo group are a real pand to enable more volunteers to provide South Australian success story, beginning companionship and social support. Enabling with traditional film and television produc- frail older people to continue to live in their tion. They now have some of the best facili- own homes also continues to be a priority. ties and technical staff in Australia. The new The challenge of meeting the needs of an facilities represent an investment of $3 mil- ageing Australia is enormous. The delay lion, and I am pleased to say that the federal between funding and approvals for new government’s Rail Reform Transition Pro- homes and beds being available can be very gram provided $100,000 of this investment distressing. However, I believe that signifi- to assist the Kojo group to purchase new cant inroads have been made since coming to equipment and employ an additional 20 full- government, and I am confident that this time equivalent staff over a four-year period. government will continue to invest in the The Rail Reform Transition Program was needs of older Australians. established to compensate for job losses that The sum of $1.7 billion has been provided occurred as a result of the sale of Australian in this 2001 budget for a new strategy which National. To date, over $7 million has been extends the Work for the Dole program to approved for 26 projects in Adelaide, creat- help those of working age move from wel- ing approximately 700 full-time and part- fare to work. Recently, I presented a Work time jobs, which is more than the jobs lost in for the Dole 2001 achievement award to the that particular area at the time of the sale of ComNet project, which was sponsored by Australian National. The program has as- Workskil Inc. in Adelaide. This project is an sisted the development of new industries, excellent example of Work for the Dole in which has created sustainable employment action, with wonderful results. The partici- and attracted investment in the affected ar- pants in the project completed a training pro- eas. Important new industries that the Rail gram incorporating webpage design, net- Reform Transition Program has fostered in- working, and software and hardware trouble- clude information technology, biotechnology, shooting. They also gained skills in admini- food processing, engineering and recycling. stration, marketing, customer service and All of this is good news for the individuals communication. Following this training the and the companies concerned and certainly participants provided IT support to commu- good news for South Australia. nity groups including schools, sporting clubs The Commonwealth seniors health card and environmental groups. Speaking to the has been extended to all pension age Austra- participants after the presentation, I could not lians with an annual income of up to $50,000 help but notice their genuine enthusiasm for for singles and $80,000 for couples. This the program and the obvious personal bene- means that another 50,000 Australians will fits and skills that they felt they had gained. be eligible to pay only $3.50 per prescription The Work for the Dole program gives job for their first 52 prescriptions. The telephone seekers real work experience, which can allowance has been extended to all Austra- have only a positive impact on their lives. As lians who qualify for the Commonwealth a result of the training and experience re- seniors health card, saving all Common- ceived under the program, I am pleased to wealth senior health card holders $17.20 a say that three participants have gained em- quarter, or $68 a year. For too long Austra- Monday, 4 June 2001 REPRESENTATIVES 27211 lia’s self-funded retirees were penalised for years. This means that groups such as the being self-reliant and saving for their retire- Conservation Council of South Australia, ment. Under Labor, self-funded retirees based in my electorate of Adelaide, which earning the same income as pensioners paid recently received a further grant of more than more tax than pensioners. $90,000 to continue its work, can carry out In 1996, the Howard government intro- localised, community based, vitally impor- duced the low income aged person’s rebate tant environmental projects that improve our to put low income self-funded retirees on a standard of living and ensure that our pre- level footing with pensioners. The low in- cious surroundings will be preserved for fu- come aged person’s rebate has now been ture generations. increased. There has been an increase in the I conclude by taking this opportunity to tax-free threshold to $20,000 for single per- acknowledge some sporting achievements of sons and $32,612 for couples on the same my constituents. I congratulate the Broad- income. This could mean a saving of $75 a view Tigers for snatching the Trish Worth week for some couples. Nor will they have to Cup from traditional rivals the Kilburn pay a Medicare levy up to those levels of Knights in an exciting pre-season amateur income. league football match and offer my very spe- Superannuation assets are now to be ex- cial congratulations to the Prospect Cricket empted from means tests for people aged Club, which this year won the district pre- between 55 years and pensioner age. This is miership after 30 years of trying. It was a just one measure that counteracts the furphy wonderful achievement that I know will be of the detractors who say that there is noth- celebrated by its members for some time to ing in this budget for those nearing, but who come. are not yet at, age pension age—besides Mr MARTIN FERGUSON (Batman) which we are not about to take away the (9.54 p.m.)—I rise to speak on the Appro- benefits that we have just introduced before priation Bill (No. 1) 2001-2002. I think it is self-funded retirees now in their fifties are fair to say that once a year the budget pres- able to reach pension age. The only way that ents the Commonwealth government with a these benefits can be withdrawn is if the La- chance to take stock, establish aspirations bor Party is elected and takes them away. and outline a plan to achieve those aspira- The government’s environment initiatives tions. It is also a time when the government are good for Australia and very good for should set out a statement of values in asso- South Australia. We are delivering record ciation with a time to be honest with Austra- levels of funding towards the environment, lians about how those values will be re- with $1.62 billion being allocated in this flected in policies. On this occasion I simply budget alone. Of particular importance to say that the budget falls well short of the South Australia is the commitment of $700 mark. For that reason, I very much support million over seven years towards tackling the second reading amendment moved by the salinity and water quality issues, to be shadow minister for finance and seconded by matched by state governments. The River the member for Canberra. Murray is vital to Adelaide. We must prevent If you actually go to that second reading the Murray waters from becoming so saline amendment, you will clearly see that the is- they are undrinkable. The funds committed sues I raise this evening in criticising the in this budget will ensure that we have a Howard government’s budget are clearly chance to do that. reflected in the second reading amendment Local communities across the country will before the House. In essence, that goes to benefit from our investment of a further $1 suggestions that, rather than being about the billion in the Natural Heritage Trust, ena- forward agenda—such as our requirement as bling Australia’s largest ever environmental a nation to significantly invest in our needs rescue effort to continue for another five of education and health or, alternatively, do 27212 REPRESENTATIVES Monday, 4 June 2001 something for struggling Australian fami- they will never trust the Howard-Costello- lies—this budget is about one thing and one Anderson leadership again. It is for that very thing alone, and that is about trying to clean reason that we see also embodied in this up the mess of the Howard government’s budget an endeavour, in a very deliberate and GST. For those reasons, I commence with a dishonest way, by the leadership of the coa- discussion of the fiscal position that the lition government, in an underhanded and, I member for Leichhardt finds so funny and suppose, short-sighted manner, to try to buy the economic climate in which the budget back the votes of older Australians. But in has been delivered. doing so they are in essence saying, ‘We As many Australians appreciate, our na- treat you with contempt, because we have tional economy has been robbed by the come to the conclusion that if we offer you, Howard government and their GST. The for example, $300 rather than the $1,000 we budget papers establish this beyond any promised you as compensation before the doubt. The GST has clearly been bad for the last election then you will come flocking economy, bad for business and bad for jobs. back to us.’ It has managed to send investment and em- In a recent shopping centre stall I con- ployment into reverse and contribute to ducted in my electorate of Batman, these higher inflation; therefore leaving many very senior citizens, who have done so much Australians feeling worse than they had pre- to contribute to the building of Australia as a viously felt. If I were a member of the coali- great nation, simply said to me: ‘Mr tion government, I would not be proud of Ferguson, we can’t be conned. We can’t be such achievements. I know that might be the tricked. Our votes cannot be purchased by approach adopted by the leadership of the the short-sighted endeavours and the dishon- Howard government, but when you actually esty of the Howard government’s recent talk to members of the coalition backbench budget.’ In many ways those sentiments are they appreciate that many of the issues raised being articulated across many electorates, by this side of the House in the debate con- both coalition and non-government elector- cerning the budget and in support of the sec- ates, around Australia at the moment. That is ond reading amendment moved by the the reaction of the electorate at large, be- shadow minister for finance are issues that cause they have seen that the budget really are of grave concern in the Australian com- reveals all that is wrong with the Howard munity. government. Let us to take, for example, the impact of But just think about it. This is the last the Howard government and the GST on one budget before the next federal election, and part of the economy, the small business sec- what do we have? We have Australia enter- tor. As we all accept, our small business ing a new century with a new tax, a tax that sector is the driver of jobs in our economy. has sent our economy into reverse and a tax But their problem is that they have been that has increased the gap between the haves crippled by a tax that has, firstly, robbed and the have-nots—and we know whose side them of precious time better spent growing the Howard government is on: the haves at their business and, secondly, taken away pre- the top end of town. Australia has entered the cious time that they would like to spend with new century with a government that is out of their families. touch and out of vision and soon will hope- Low income earners—the real battlers, as fully be out of time. Mr Howard, the Prime Minister, used to de- Liberal-National Party members come to scribe them—have been clearly left high and this House on a regular basis and have the dry. They are saying to me as I frequently indecency, I suggest, to claim that this new travel around our regional communities and tax is more important than investing in our rural and remote Australia that they have had people and their ideas, which is suggested to a gutful of the Howard government and that be our number one requirement by the sec- Monday, 4 June 2001 REPRESENTATIVES 27213 ond reading amendment moved by the Irrespective of the backflips we have had shadow minister for finance this evening. in the endeavours by the Howard govern- This is the new tax that the Prime Minister, ment to buy a few votes as a result of this the Deputy Prime Minister and the Treasurer budget, people have seen through those very decided was more important than strength- backflips. Be it on petrol prices, the prices of ening our regional economies and creating beer or the business activity statement, peo- jobs in our regions. Worst of all, this tax has ple out there on the street understand a con battered the confidence of those very people when they see a con, and they also under- in the community who try to get things done: stand con men when they see con men. They small businesses, community groups, chari- see the budget as a con, delivered by con ties and the like—the little people who actu- men and women who do not have an under- ally desire to stand up and do something for standing of the needs and aspirations of ordi- the have-nots in the Australian community, nary people in the Australian community. It the people who really know what struggle is for that very reason that people are saying town is about rather than the people the that they expect the Australian government Prime Minister, the Deputy Prime Minister to be fiscally responsible but to also have an and the Treasurer rub shoulders with on a eye for the main game and our requirement regular basis at the top end of town. As a as a nation to actually invest in our future. country, we have never been afraid to play For that reason they have also said—and it is above our weight. We have a proud history reflected in the polls—that, yes, there is a of getting on with the job. But as I travel requirement from time to time to review the around Australia people tell me that this system of taxation that exists in Australia. government has robbed them of their ambi- But they have also said that we as a commu- tion and robbed Australia of its ambition. I nity must understand that in facing up to our simply say that that is tragic for individuals, responsibilities on the fiscal front our last their families and their community at large responsibility must be to not deliver to the and, more importantly, for Australia as a na- top end of town, as the Howard government tion. did, but to make sure that the biggest benefits While this budget is about cleaning up the for the purposes of offsetting the impact of mess of a GST that nobody wanted, I also the GST do not go to the rich instead of to suggest to the House that the Prime Minister the battlers. I suggest that the tax cuts for the and the Deputy Prime Minister have failed to corporate sector do not offset the challenge do their job. I say that because I do not con- that has been forced on the charities. sider that the budget is about investing in the The Howard government, as well as short- future. In essence, the budget is about pork- sightedly ripping off the Australian commu- barrelling with an eye to the next election, nity by failing to invest in our intellectual without any vision or long-term commitment infrastructure, our education and training to actually invest in Australia’s future as a system and our health system, has confirmed nation. It is also not about standing up for the in this budget that our largest national com- have-nots in the community, the most vul- pany, Telstra, is to be sold. Once again, what nerable in our society who require leadership is that about? It is about putting profits be- and a willingness by the Commonwealth fore people. I am not surprised, because I government to actually invest in bread-and- remind the House this evening that not that butter issues, such as health, education, long ago the current Minister for Defence, in training and jobs. They are the very battlers a debate about workplace relations, stated in for whom in 1996 the Prime Minister said very black-and-white terms where the coali- that he was going to deliver, but when you tion government stood in the debate about actually go through the detail of the budget fairness and equity in the Australian com- they are the very people who have been dud- munity. I remind the House that he said this: ded and short-changed in the discussion be- fore the House this evening. 27214 REPRESENTATIVES Monday, 4 June 2001

Never forget the history of politics and never simply because of where they live. The forget which side we are on. We are on the side of Howard government are currently running making profits. around the country trying to convince people People will not forget the lessons that are that they have rediscovered regional devel- being learnt by putting trust in the Prime opment, having abolished the Office of Re- Minister, the Deputy Prime Minister, the gional Development after their election in Treasurer, the Liberal Party and the National March 1996. They then started talking about Party. Australians, contrary to what those I programs going to regional information, best mentioned believe, actually believe in a fair practice, regional leadership development go. They see a need for decent values and and support for development projects—the they believe that all Australians—irrespec- types of issues spoken about at the regional tive of where one lives, irrespective of summit in late 1999. The problem is, when whether one is employed or unemployed, you go to the budget and all the associated irrespective of which school one went to— announcements across the Transport and Re- should get a fair crack at life. But time and gional Services portfolio, you do not really time again this budget reminds those in the find any leadership or vision with respect to Australian community that, if you went to those issues and these changes in govern- one of the elite private schools represented ment policy that can make a change for the on the coalition government front bench, you better on the ground in regional Australia. I will do all right under the Howard govern- will tell you what you do find: no vision and ment, but, if you came from struggle town, no statement for the future, but when you go do not expect any assistance through invest- into the detail of the Senate estimates proc- ment in health and education in an endeavour esses that are available to senators, you find to create jobs from the Howard govern- the real trick in the budget processes. As ment’s processes. usual, it is hidden in what is not said rather I also remind the House that one of the than in what is said. real tragedies of the Australian political sys- I draw the attention of the House to a tem is that we have a Deputy Prime Minister question posed by the Leader of the Opposi- who likes to go around Australia claiming tion in the House of Representatives question his political mission is to meet the ordinary time this afternoon about the Regional Solu- expectations of country people. I suggest that tions Program. In the last couple of years, the rural, remote and regional Australians have government has been running around Aus- finally come to the conclusion that, yes, the tralia telling country people that it has a Country Party once had a desire to stand up wonderful Regional Solutions Program and to struggle to better represent people in which is not about pork-barrelling but is rural, remote and regional communities, but about helping all Australians, especially this budget proves yet again that the National those in difficulty in rural, remote and re- Party is merely a tail on the coalition dog, gional Australia. In this budget, we find an that it is unable to stand up for the country amount of $12.6 million allocated to regional and that its days of struggling for those who solutions projects across this country. But live in rural, remote and regional Australia surprise, surprise! Despite the fact that a few have long gone. That is clearly reflected in months ago the Prime Minister stood in this the government’s announcements on regional House, morally outraged at the suggestion development, regional services, transport, that the Regional Solutions Program would health, education and job programs, to name not be used for pork-barrelling, the moral just a few areas of Commonwealth govern- outrage has gone. It was confirmed in ques- ment responsibility. tion time today. We have discovered that, of Let us take the issue of regional develop- that $12.6 million allocated to the program in ment as an example. I believe the truth is that this year, one seat and one seat alone—the many regions of Australia are missing out at seat in which the Minister for Agriculture, the moment and that people are missing out Fisheries and Forestry finds himself in diffi- Monday, 4 June 2001 REPRESENTATIVES 27215 culties at the moment because of the ongoing how it provides opportunities for all of us. onslaught of One Nation—is to get $4 mil- The question to be answered by the govern- lion of the $12.6 million which is available ment in response is: how does this budget for regional solutions activities. Fair is fair: improve the quality and the ability of our there are a lot of other seats in rural, remote economy, how does it improve the quality and regional Australia which also require a and ability of our people and how does it helping hand. There is one thing which this improve our capacity as a nation to adapt to government proves time and time again. As change? This budget fails on those counts. It the former Deputy Prime Minister Mr does not offer the Australian community any Fischer said in his recent book, ‘We’re about vision or hope for the future; it does not offer pork-barrelling and we are excellent at it.’ those who are doing it tough skills for their Question time clearly confirmed that with future and it fails to deliver capacity to our respect to the use of the Regional Solutions regions. (Time expired) Program money in the seat of Wide Bay. Mr BAIRD (Cook) (10.14 p.m.)—It is my There is a range of issues that I could pleasure to rise tonight in support of the Ap- touch on going to regional services and asso- propriation Bill (No. 1) 2001-2002 and also ciated unwillingness by the Howard govern- to commend the Treasurer for the outstand- ment to look after regional Australia. What ing job that was done in relation to this that detail says is: we know where we are year’s budget. I listened to the member for going as a coalition government. We will Batman and his claims that his party are continue to knock around, as the Deputy about looking after the battler, not the top Leader of the Liberal Party, Mr Costello, and end of town. Of course, we well remember the Prime Minister do in places like Kirribilli the close relationship between the Labor and Kooyong, but we are not actually con- Party and the Alan Bonds and the Christo- cerned about cleaning up the GST mess in pher Skases of this world—they seemed to seats beyond those more salubrious suburbs. be very firmly attached to that group of peo- That is why, Mr Deputy Speaker Nehl, you ple when they were in government. I heard and I know—I understand you are departing him say that they are about providing a this House at the next election—that people fair—mixing his metaphors somewhat— in rural, remote and regional Australia have crack at life for the average battler. This in had a gutful of the deceitfulness and dishon- fact is what this budget is about—a fair crack esty which is embodied in the budget papers of the whip or a fair crack at life, to use the before the House this evening. As to tricki- member for Batman’s terms. ness, there was another prime example of Through this budget the government has this. achieved a continuation of the whole reform In passing, I go to black spots funding. It program undertaken by the Treasurer and the has been suggested in this budget that government, the continuation of $12 billion $48.846 million is available for the black of personal tax cuts. That is what it is about spots program in the next financial year. in terms of helping the average battler—re- What is not spelt out is that $6.7 million of ducing his tax bill. It is also about reducing that money is money not spent in the last interest payments. We can look at what the financial year. I believe that the program is interest rate was under Labor and what it is of great value to the Australian community now: the home mortgage interest rate is now and that it ought to be reconfirmed for four 6.8 per cent; under Labor it was 10.5 per years rather than for 12 months. In essence, I cent—it in fact went to 17 per cent under simply say that I do support very much the Labor. That is what it is about—helping the second reading amendment moved by the average battler. Inflation is now 2.1 per cent shadow minister for finance, Mr Tanner, who per annum; under Labor it was 5.2 per cent clearly says, in essence, that the real test of on average and it went up to 11 per cent. In this budget is how it makes life easier for terms of unemployment, the forecast average those Australians who are doing it tough and is seven per cent under this government; un- 27216 REPRESENTATIVES Monday, 4 June 2001 der Labor it was 11.2 per cent in December health card, the provisions have been 1992. There have been 100,000 new jobs changed to $50,000 for single individuals created. The member for Batman mentioned and $80,000 for couples. Assistance with himself that we should be about creating new telephones has been provided. Negotiations jobs. Compare the record of this government have begun with state governments, which of with the record of their 13 years in govern- course are going to open up a range of spe- ment and it is very clear that this government cial incentives for older people—self-funded creates the jobs, this government reduces the retirees—in relation to issues such as RTA interest rates, this government reduces the licences, electricity charges and interstate rail level of government debt overall, this gov- trips, et cetera. I was proud to be part of a ernment allows the average battler to meet government that introduced low fares on the their home payments, and this government suburban network in New South Wales, and assists them more equitably. that is what we are seeing continued under Of course, it is this budget that assists the this government. older members of our community who have Of course, it is important to recognise that made this country strong. Since the time of this government has also been a great plus Federation we have had a group of individu- for the business community. The fact that it als in this country who have worked hard reduced the taxation level last financial year and who have made this country more afflu- from 36c in the dollar to 34c in the dollar— ent. Now that many of them have gone into and, as of 1 July, that rate reduces to 30c in retirement, this government is recognising the dollar—is a great boost for the business the contribution they have made and is re- sector and the corporate sector. It provides ducing the tax burden on them. In my elec- real incentives. That is in addition to the torate I have over 20,000 people in the over- other incentives they have received—the 55 category and I certainly know that they halving of the capital gains tax and, of are very grateful for the changes that this course, the special initiative of this govern- government has made. The $300 means a lot ment in allowing input tax credits for new to the average pensioner and it has been well vehicles that are purchased. That has been received. warmly received by small businesses in my Mr Fitzgibbon—Ha, ha! electorate. They see the government as pro- viding real incentives. In my electorate, I Mr BAIRD—The member for Hunter have a number of companies that are pro- might have his own interjection but, in going ducing for the international market. Those around the electorate of Cook, it has been people who are exporting have no taxes on well received. For the self-funded retirees, them now. In the past they had the wholesale the threshold of $5,400 before tax cuts in has sales tax, which put their prices that much now been increased to $20,000. For couples above other countries when they were com- it is $32,000 going up on a tapered basis to peting overseas. Now that has been taken off. $38,000. Certainly, in my electorate, this The GST does not apply when they are com- assistance to independent retirees is well peting overseas, and that has been warmly recognised. The Labor government, when received and welcomed. they were in office, ignored this particular group of people, as can be seen by the tax I welcome the incentives that are in this threshold of $5,400. budget in terms of two key areas in my electorate. The first is small business, which This government is recognising the chal- makes up a significant sector of the business lenges that face independent retirees and, community in this country, makes the econ- regardless of where they sit in the economic omy strong and shows the entrepreneurial spectrum, it is this government that is giving drive and the talent in this country. Small them considerable assistance, not only in businesses are being provided with real in- terms of changing the threshold but also in centives in terms of the tax rates that have terms of a range of other measures. For the been so significantly reduced in this budget Monday, 4 June 2001 REPRESENTATIVES 27217 and that are being warmly welcomed and amount is a huge plus, and we can see that in received. Secondly, I welcome the incentives the way it has been received. for self-funded retirees and pensioners. The benefits are not only in what we have This budget is also about the macroeco- in extra spending. Mr Egan and Mr Carr, nomic parameters on which the budget has when they brought down their budget, were been based and from which it has been de- able to remove the BAD tax. Why was this? veloped. This is the sixth consecutive budget Because of the increase in funding they had that we have seen the Treasurer bring down, from the GST. As they plan and forecast and all of them have been surplus budgets. their receipts, their cash flow, it is this There is $1.5 billion surplus in this budget. growth tax through the GST that allows all Let us compare the track record of the Labor these benefits to be achieved—the new hos- government when it was in office with the pitals, schools, roads and police stations that record of this government. The Labor gov- are being built throughout this country. The ernment racked up some $86 billion in debt beneficiaries of the government’s GST are when it was in power. By the time 1 July the state governments. This is often over- comes around, this government will have looked. It is a great achievement that we can repaid $60 billion of that debt. That is a fact develop these programs and assist business that resonates very much with the people in by the reduction in the corporate tax rate, and my electorate. I have been getting around on at the same time can increase the amount Saturday mornings, having community con- going to the state governments. And, of sultation. People repeat to me how much the course, the fact that we can look after our Labor Party set up the level of debt in this self-funded retirees and our pensioners at the country. What do the repayments amount to same time is most important. each year? The sum works out at some $8 Mr Beazley and his colleagues talk about billion per year that we are using to just re- roll-back without specifying what they are pay the debt that the Labor Party incurred. going to roll back at any point. I thought the Imagine what the situation would have been shadow Treasurer’s performance on the 7.30 if the Labor Party had continued in office for Report in the wake of the budget was par- the past five years. There would have been a ticularly interesting. The exchange ran as further escalation in the debt. That additional follows. Mr Crean said: $8 billion to service the debt every year has ... on the question of the pensioners and the $300, gone into hospital construction, into school Kerry, why couldn’t the Government have gone construction, into supporting state govern- the full distance in its broken promise and given ments and into our own programs. It has the $1000? Clearly, they could have afforded it been used for assistance to pensioners, for this year because they’ve got a surplus of $2.3 assistance to welfare recipients, in estab- billion and to instead of just give $300, give the lishing Work for the Dole schemes. full $1000 that they were promised. They could They are the initiatives that we are able to have afforded it. undertake because of the way in which this Kerry O’Brien said: government has run surplus budgets. We … it’s easy for you to say that from Opposition, have not run the country into debt. The pre- but of course you’re also saying at the same time vious government used to spend in an indis- as they’re spending all their money to leave criminate way, without any regard to the fu- nothing in the bank for you. You can’t have it ture, as if there was no tomorrow. It was just both ways. a whole manana complex—just spend and Simon Crean said, ‘Well, no.’ Of course, that somebody will pick up the debt in the future. is the whole key to the matter. Those oppo- It was this government that picked up that site go around the countryside saying, ‘We’ll debt—that repaid $60 billion of it. We are spend this. We’ll give you back that.’ I can the beneficiaries of the fact that we can save see one of the shadow ministers at the table. some $8 billion of interest each year. That They say to the restaurant and catering peo- ple, ‘We’ll take off the FBT for you. We’ll 27218 REPRESENTATIVES Monday, 4 June 2001 do this. We’ll do that.’ He was not quite so which does much for the economic devel- sure when he was confronted with the facts opment in this country. I am very proud to on that. support it and to commend the government Mr Fitzgibbon—You’ve been talking to for the excellent job they have done in for- Teresa Gambaro. mulating it. Mr BAIRD—We have our sources. Those Debate interrupted. opposite have been going around and saying, ADJOURNMENT ‘We’ll take off the FBT. We’ll do this. We’ll Mr SPEAKER—Order! It being 10.30 increase the surplus for you.’ But in fact the p.m., I propose the question: reality is that there is very little that you plan That the House do now adjourn. to roll back. In terms of taxation— Answers to Questions on Notice: Carbon Mr DEPUTY SPEAKER (Mr Nehl)— Dioxide Emissions The chair does not plan to roll anything back. Mr MURPHY (Lowe) (10.30 p.m.)—I Mr BAIRD—Thank you, Mr Deputy have recently received a response from the Speaker. Of course, the member for Hunter Minister for the Environment and Heritage in knows exactly what I am talking about in regard to certain questions contained in terms of the plans. It is very easy for those question No. 2524, which I asked on notice opposite to go around, as they listen to every on 5 April 2001 about the government’s interest group, and say, ‘We’ll certainly fix policies concerning carbon dioxide emis- your problem for you. We’ll reduce the tax sions, the greenhouse problem and the Kyoto for you. We’ll give you $1,000—let’s make protocol. Given that the government’s posi- it $2,000—for every pensioner. Why not tion threatens to place Australia on the out- make it $5,000? And we’ll have a bigger side of any organised international regime of surplus. We’ll be much more responsible.’ energy restructuring, consumption and con- Just look at your track record. Look at your servation, my questions sought from the track record in terms of small business. Look minister the unilateral measures this gov- at your track record in terms of independent ernment would contemplate and undertake in retirees. Look at your track record in terms relation to Australian energy restructuring, of pensioners. You will clearly see that your consumption and conservation. Given the credibility is somewhat lacking. Of course, gravity of these issues, I have to say that the the taxation cuts that you promised, which answers I received on 5 April 2001 were far became l-a-w, did not eventuate at all. The from adequate. In fact, the answers were ei- whole myth of roll-back and what you are ther superficial or at odds with international going to achieve through this whole magic expert advice, or both. They were not an- pudding exercise is not borne out in reality. swers to inspire confidence in either the The Treasurer, the government and the minister or this government. Prime Minister should be proud of this I also have to report that answers to two budget. It is a balanced budget that provides other questions I asked on the same day, 5 a $1.5 billion surplus, provides significant April 2001, of the Minister for Transport and benefits for small business right throughout Regional Services, on issues related to the Australia and provides significant incentives restructuring, consumption and conservation for independent retirees and pensioners. It of Australia’s energy demands and resources, has resonated well with all of the groups— have only been received by me tonight. I am small business, independent retirees and pen- not pleased with the responses and they will sioners—in my electorate. They are very be the subject of further questions by me to pleased. They recognise that the government the minister in the near future. I have previ- is looking after the older people in the com- ously reported that the transport minister’s munity. Small businesses see that we are answer to my question No. 913 of 20 Sep- providing the right incentives to make the tember 1999 about World Health Organisa- economy strong and vibrant. This is a budget Monday, 4 June 2001 REPRESENTATIVES 27219 tion warnings concerning diesel exhaust tors with solar-electric generators. The an- pollution was completely dismissive of this swer I received said the cost would be in the important issue. The minister said: order of $1,000 billion for solar-photovoltaic I am not prepared to authorise the time and re- technology and $200 billion for solar- sources required to prepare responses to this thermal systems. Using Dr Blakers’s figures question. of a fully installed cost of $2 per watt, I es- More recently, on 6 February this year, I timate that replacing the generators in New asked the transport minister question No. South Wales with an installed capacity of 2306, asking whether he could say that the 12,000 megawatts peak output would cost introduction of high-speed trains in Europe $24 billion—indicating a much lower total had reduced the volume of domestic airline outlay than the minister’s obviously inflated services that operate on the same routes. His estimate. answer to this question was a solitary word: The government’s present policy require- no. He could not say. Further, my question ment for two per cent of electricity genera- was designed to establish whether the intro- tion to be replaced by sources of renewable duction of high-speed trains would reduce energy by 2010 has to be followed by further carbon dioxide emissions from vehicles trav- measures, such as a 10 per cent replacement elling between Sydney and Canberra. His by 2020. If the government continues to use answer? The high-speed rail analysis would grossly exaggerated estimates like those sup- not be made public. plied in the answer to question No. 2554, The restructuring of energy consumption these essential measures will not be adopted and conservation has occupied the best because of their alleged prohibitive cost. minds on the planet and been the subject of Given the appallingly superficial answers I numerous fora of discussion, debate and ne- have received from the Minister for the Envi- gotiation for at least the last decade. Many ronment and Heritage, I have placed further Australians have followed, been informed by questions for the minister on these issues on and participated in these events in various tomorrow’s Notice Paper. ways. It is clear from the minister’s answers The main reason that support for research that either the issues are beyond his capabili- and development in renewable energy is in ties or he is failing in his responsibilities serious trouble is that there is no direct fed- through calculated evasion of these impor- eral government funding of renewable en- tant questions. ergy R&D from any source. There are no To return to the answers to questions that I funds being made available for research and placed on the Notice Paper on 5 April 2001, development from the hundreds of millions I asked the Minister for the Environment and of dollars that are flowing through the Aus- Heritage for information about the capacity tralian Greenhouse Office. Without vibrant of solar energy to replace the coal-fired energy sciences, Australia’s only role in the power stations now emitting nearly half of global information technology highway will Australia’s carbon dioxide pollution. Ac- be to import the wisdom and applied knowl- cording to Dr Andrew Blakers from the edge of others without any effective contri- Centre for Sustainable Energy Systems at the bution by us, either domestically or interna- Australian National University, wind power, tionally. While it may suit the bottom line solar-thermal and solar-photovoltaic genera- meanness and trickiness of this government, tors are the only fully sustainable technolo- the minister must properly answer my ques- gies able to completely replace fossil and tions on the Notice Paper. (Time expired) nuclear electricity generation during this La Trobe Electorate: History century. Mr CHARLES (La Trobe) (10.35 p.m.)— I also asked the Minister for the Environ- I wish to bring to the attention of the House ment and Heritage for an estimate of the cost an article which appeared in the most recent of replacing the existing fossil fuel genera- edition of the Knox Historian, the newsletter 27220 REPRESENTATIVES Monday, 4 June 2001 of the Knox Historical Society, which is an he fought back and regained the seat of Flinders organisation of volunteers in my electorate of in 1931. La Trobe. The article is by Glen Turnbull, In 1949, the electorate of La Trobe was created the president, entitled ‘Short History of Lo- and Richard Casey was elected. In 1984 part of cal Federal Electorates’—most appropriate La Trobe became the Electorate of Aston. The for the year of the centenary of Federation. It Knox City municipality is still split between the reads: two electorates. The first Australian Federal Election was held on The La Trobe Electorate has closely followed the 29 March 1901. The Ferntree Gully Shire at that Government of the day over most of its existence. time was located within the Electorate of Mernda. Up until 1980, the area was very conservative. This electorate was very widely scattered and Early representatives were nationalists with poli- included areas such as Alexandra, Yea, Whittle- cies based on primary production. The Depres- sea, Bulla, Broadmeadows, Healesville, Marys- sion period of 1929-1931 resulted in the conser- ville, Warburton, Gembrook as well as Ferntree vatives losing to Labor. The La Trobe electorate Gully. The Electoral office was in Seymour. In was right behind Menzies in the 1950s, but be- 1901, the only polling booths in the Ferntree came labour again under the ‘Time to Change’ Gully Shire were located at the Ferntree Gully campaign of the Whitlam Government. It re- Shire Hall, at Bayswater as well as at Maccles- turned to the conservatives again after Governor- field, Monbulk, and South Sassafras (Kallista). General Kerr intervened. La Trobe again became strongly Labor in the 1980s. The Aston Electorate The first representative of Mernda was Robert was also labour in the 1980s. In 1990, the current Harper, who was a protectionist. The Mernda representatives, (Aston) and Bob electorate was abolished upon a redistribution of Charles (La Trobe) were elected. The two elector- seats in 1912, but at the 1906 Federal Election, ates are considered swinging seats, La Trobe re- the Ferntree Gully Shire district was included in quiring a swing in the order of 1% to change the Flinders Electorate. again and Aston just over 3%. Mernda is also a locality, about 26 kilometres There are two tables, showing the first sena- north of Melbourne on Plenty Road (north of tors and a list of federal members represent- Epping and South Morang). The name ‘Mernda’ is apparently derived from an Aboriginal word ing the district. meaning ‘earth’. Oddly, the locality of Mernda On 27 May, I had the honour to unveil for was named in 1913 about 12 months after the the historical society a heritage sign outside abolishment of the Electorate of Mernda. Prior to the Ferntree Gully Shire Hall. It was one of 1913, the locality was considered to be part of 26 heritage signs in a heritage trail which is Morang. part of the Centenary of Federation celebra- From 1906 to 1949, the Ferntree Gully Shire was tions and is funded by the Commonwealth included in the Flinders Electorate. In 1906 Wil- government. Unfortunately, Peter Nugent, liam Irvine (an anti-socialist) was elected. Irvine my former colleague and the former member continued to represent the Electorate through the for Aston, was unable to be with me on that dark days of World War One. In 1918, Stanley Melbourne Bruce was elected to the seat of day because of his untimely death, but his Flinders. Bruce, who was later to become Prime widow, Carol, was able to join me, for which Minister, is considered a ‘local’ to historians of we all thank her. (Time expired) the Ferntree Gully Shire. Retirees: Computer Training Stanley Melbourne Bruce lived at ‘Fern Glen’, Mr MOSSFIELD (Greenway) (10.40 which was near ‘Doongalla’ (north of The Basin) p.m.)—I have in my electorate a very ener- until the age of 8. In 1891, ‘Fern Glen’ was de- getic senior citizens organisation known as stroyed by a flood. Until then, the property was owned by his father and uncle. Bruce later offi- the Millennium Seniors, who run, among cially opened the Boronia Post Office in 1920 and other projects, a computer training program received the first letter. Bruce became Prime for senior people. Clearly, there is an urgent Minister of Australia in 1923 and opened the first need for this type of training, with all types Parliament House at Canberra in 1927. He lost of commercial transactions such as electric- office in 1929, mainly due to the depression, but ity, gas, water, municipal rates and motor registration now being transacted online. Monday, 4 June 2001 REPRESENTATIVES 27221

My attention was drawn to the need for a older people. In my constituent’s view, TAFE national program to coordinate such training and other workplace oriented organisations by an interstate e-constituent. This constitu- have shown themselves to be providing a ent has raised with me a number of facts re- poor environment for training older people. lating to senior Australians. There are five Young, quick thinking, quick talking, com- million Australians over 50. This is 25 per puter experienced people, even when trying cent of the total Australian population. This to be helpful, can seriously inhibit seniors group of seniors controls 75 per cent of the learning these new skills in the home, work- nation’s wealth and will in the future have an place and training establishment. Older citi- increasing voice in Australian politics. Many zens may incur increased costs if they cannot older people understand the fears that others participate online since many service provid- of their age have in facing the computer and ers are increasingly moving to charge higher the Internet. Lack of computer skills is forc- fees for accounts paid over the counter or by ing older people into a situation where they post. I am aware that there have been many will have to become computer confident or successful programs to train older Austra- become increasingly marginalised. lians in the use of the computer. Equally, a The e-constituent referred to a report enti- large majority of older people would not tled Accessibility of electronic commerce and have the confidence to use a computer for new service information technologies for commercial purposes. older Australians and people with disabili- The training now offered by seniors ties. This report referred to Australian Bu- groups needs to be coordinated to expand reau of Statistics figures which show a lower rapidly so that many computer-shy older proportion of older people using electronic people, particularly those in remote areas, technology. For example: the Internet was will be able to access this technology. Many used in Australia by 73 per cent of 18- to 24- seniors groups have a natural network of year-olds, or 1.3 million—up from 62 per branches throughout Australia. These groups cent in the previous year; some 56 per cent have newsletters, web pages and emails, so of 25- to 39-year-olds, up 40 per cent; 44 per the organisational structure to reach people is cent of 40- to 54-year-olds, up 29 per cent; already in existence. There are thousands of but only 16 per cent of people aged 55 and taxpayer funded computers in our society, over, up by only seven per cent on the previ- such as in schools, TAFE colleges and gov- ous year. Similar figures apply to older Aus- ernment and council offices, that could be tralians using EFTPOS, ATMs and telephone used to train seniors during the times they banking for bill payments. are not being used for their principal pur- The question arises: are people being ex- pose. There are many hundreds of computer cluded from services and information be- confident older people who would be willing cause of avoidable barriers such as lack of to pass on their knowledge to other older knowledge and appropriate training? This people. The Minister for Communications, report refers to the Electronic Transactions Information Technology and the Arts needs Act 1999. This will apply to all laws of the to call together a representative group of Commonwealth and is intended, in a staged older people and industry to discuss this im- process, to allow all government agencies to portant issue. put in place information systems to commu- Tourism: Bibles in Hotels nicate electronically with their clients. This Mr BAIRD (Cook) (10.45 p.m.)—There is implies that clients will be ‘encouraged’, as no doubt that the tourism industry is one of they are by Telstra, to receive federal gov- the most successful sectors in Australia to- ernment services, pensions, et cetera, via the day. It is growing strongly: some five million Internet. international visitors came to Australia last My e-constituent has some criticism to year; an expected 5.2 million, perhaps more, make about current computer training for will come this year; and, according to some 27222 REPRESENTATIVES Monday, 4 June 2001 estimates, 10 million international visitors up being sent to the homes of these people will come by 2010. The number of jobs cre- through lists supplied. By saying that we are ated by this industry is outstanding: at least a multicultural, multifaith environment that 600,000 direct jobs and a further 400,000 needs to be all things to all people and that indirect jobs. The hotel industry is one of the we do not want to offend people from vari- best recipients of the growth in tourism in ous countries could lead us into a position Australia. It has created jobs, and the extent where we negate our own heritage, negate and variety of hotels in Australia is noted by our own situation. all. It was particularly interesting that, on a It is therefore disappointing that a leading mission to Japan a couple of years ago when hotel chain last week took a decision which I was involved in the tourism industry, I met was out of keeping in terms of the Australian the marketing manager of Japan Airlines. He environment. This particular hotel chain took actually said that one of the things that he did the decision to remove all Gideon Bibles not like about his visit to Surfers Paradise from their hotels because they felt that they was the extent of Japanese signs that were were offensive to many of their clientele. there. He said, ‘When I go to Australia, I Their claim was that we now live in an inter- want to have an Australian experience with faith community where we must recognise Australian language in a Western culture. If I and be sensitive to the backgrounds of those want a Japanese experience, I will stay at people who are visiting us from other coun- home.’ I thought that was particularly inter- tries. By all means, we are a tolerant country, esting. When we create our own tourism ex- we are tolerant of other people’s beliefs and perience, it is important that we retain the we certainly view highly the freedom to wor- best of our culture and our heritage. ship one’s God in one’s own way. But it If we continue to class ourselves as a tol- seems to me that to remove Bibles from ho- erant and accepting society, all religions and tels as part of this is political correctness belief systems should be treated with respect. gone too far. Certainly, this decision ignores It seems that, in our efforts to accommodate the fact that the last census showed that 70.3 the wide variety of other religions that have a per cent of Australians classified themselves strong presence in Australia, it has become as Christians. It is for Australian Christians okay to be disrespectful of the beliefs and in the main, or those from overseas, that sensitivities of Christians. I agree that there these Bibles are available. In times of need, is an important role for political correctness, particularly in times of stress when people but this is not one of them. I am very glad to are living away from home, people may take see that this hotel chain has reversed its pre- the opportunity to read passages in the Bible vious decision and that the Gideon Bibles are and be inspired by reading psalms. This ar- back in the hotel rooms. bitrary decision by a hotel chain that may be based overseas is simply out of keeping with Centenary of Federation: Women’s this tradition. It is a long tradition in Austra- Petition lia and one which is quite voluntary: if peo- Ms GILLARD (Lalor) (10.50 p.m.)—I ple do not wish to take advantage of this fa- rise tonight to tell the House about a student cility, that is perfectly acceptable. in my electorate, Leeanne Grima, and her There have been a number of recent ex- contribution to the Centenary of Federation amples of similar decisions. I recall that, celebrations, which we recently enjoyed in during the Olympics, SOCOG put restric- Melbourne. Leeanne is a 16-year-old student tions on where Christians could distribute who lives in West Sunshine. She is the their literature within the city. They also for- daughter of Maltese immigrants who mi- bade the Bible Society from distributing to grated here in 1980 and she studies at Marian IOC members and members of the Olympic College. Leeanne addressed the Women family special memento Bibles which cele- Shaping the Nation event, which was held in brated the Olympics. Of course they ended the Victorian state parliament on 7 May as Monday, 4 June 2001 REPRESENTATIVES 27223 part of the Centenary of Federation celebra- to be a Cinderella. This all signifies that popular tions. sentiment regarding the female body image has yet to progress to reality. In the community, The House might wonder: how did a 16- within the media and advertising sector, we seek year-old schoolgirl come to be there ad- the parliaments support that women be portrayed dressing that event? She came to be there authentically as real women, towards the aim that because part of that event was the receiving body image does not remain an integral criteria of of the women’s petition. This women’s peti- a woman’s self and social worth. tion was to replicate and in some ways to That was Leeanne’s contribution on the enact the 1891 women’s petition, which was question of body image. She also made the signed by women calling for the vote. This following contribution on the question of the was a modern version—a Centenary of Fed- environment: eration version—where women across Victo- ria gathered in workshops to work out what Another critical issue included in the petition— issues women at this stage of Australian the women’s petition— history should be calling for. is the sustenance of the environment as the core Leeanne in her English class actually par- constituent in living securely and safely. As the mothers of tomorrow, it is our desire that our ticipated in shaping the women’s petition. children may be raised within the safety of a Her English class sat down and worked out clean environment and experience security in the what issues they thought should be addressed sustainability of our air, land, and water. Such in the petition. When Leeanne spoke to the sustainability is advocated at a community level, event in Melbourne, she talked about some through widespread recycling programs and the of these issues—issues of importance to her support of suburban creeks and walkways. and to young women in Australia. I would Schools incorporate environmental studies into now like to use Leeanne’s words to inform their curriculum, and at Marian we are encour- the House about how she saw those issues. aged to be aware of environmental issues and First she dealt with the issue of the presenta- participate in action where possible; particularly important considering our school and my home’s tion of women in advertising and the media proximity to expanding industrial factories. and asked that it be non-exploitative. She said: She goes on to talk about the nature of our local community. She then states: The portrayal of women in the media and adver- tising is a key contributor to the preoccupation We seek the support of the government to main- with body image amongst young women. Schools tain our integrity in our commitment to global implement programs to ensure that girls will de- agreements, which will benefit the children of velop positive notions of their identity and that tomorrow, everywhere. their appraisal of themselves and others is not I am here today because I have been given this constrained by what is perceived to be ideal. At opportunity to speak to you because of our school Marian— leaders initiating our involvement, and I am grate- the school that Leeanne attends— ful. There remains however, a chasm in the op- portunities for other young people to express their the subject of health focuses on a wholistic ap- personal views in open forums. As your future, proach to health and body issues. The impact of we urge our leaders to be receptive to the voice of school policies however, is limited within a cul- youth. ture where the presentation of women in the me- dia and advertising continues to be exploitative I commend Leeanne’s words to the House. I and archetypal. That the media is projected into believe it is very important that this House homes daily and that it is the most basic source of hear Leeanne’s sentiments in her own words. information, social values and entertainment sig- (Time expired) nifies its relevance. Articles in girls magazines Small Business: Budget 2001-02 advocate individuality but appear alongside ad- vertisements featuring girls who are non- Retirees: Budget 2001-02 representative of a true teenage demographic. Mr FITZGIBBON (Hunter) (10.55 Women in advertising are largely domesticated or p.m.)—Speaking on the appropriations bill sexually exploited. The heroine of film continues earlier tonight, I noticed that the member for 27224 REPRESENTATIVES Monday, 4 June 2001

Cook was speaking a lot about the benefits part of the GST deal and that was a benefit contained within the budget for older Aus- the small business community was indeed tralians. He told the House that seniors in his expecting. I point out to the House that less electorate of Cook were delighted by the than 50 per cent of small firms in Australia outcome of the budget, indeed overwhelmed are incorporated, so that excludes more than by the generosity of the budget towards older 50 per cent of small firms from accruing any Australians. The experience in my own benefit whatsoever from that initiative. electorate has been much different. Firstly, I Mr Brough interjecting— turn to those who are on the age pension, who were absolutely aghast that the best the Mr FITZGIBBON—The Minister for government could do for them, in terms of Employment Services, who is at the table, compensation for the GST, was a one-off keeps interjecting. He wants me to mention $300 grant. More surprised were those on the fact that small business people will now disability pensions and those on carers pen- be able to claim a full input tax credit on the sion, who learned the next day that they purchase of motor vehicles. That was an ini- would be receiving no money whatsoever. tiative that was brought forward and of Just as surprised were all those self-funded course the big end of town, the motor vehicle retirees not of pensionable age—65 years for industry and its retailers, are pretty happy men and I think it is 61½ years for women— about that. But my response to the minister at who are of course excluded from any benefit the table is: that is if you can afford the pet- under the initiatives taken in respect of self- rol to put in the car. I doubt there were too funded retirees. Surprised also were those of many small business people in a cash flow pensionable age but who had incomes of position, particularly given the impact re- around $32,000 or more and therefore were cently of the GST, to find themselves able to also excluded from the benefits flowing from run out there and suddenly buy a motor vehi- the initiatives contained within this year’s cle. So I suggest there was very little benefit budget. So the reaction in my electorate has in that initiative for most small business peo- been somewhat different from the reaction in ple. the member for Cook’s electorate, or at least One thing that really surprised me was the what he would have us believe has been the government’s decision not to extend the im- reaction in his own electorate. mediate write-off provisions for GST related But what amazed me more than anything purchases. You recall, Mr Speaker, that the about the government’s budget this year was government decided that, to assist small its total unpreparedness to attempt to at least firms to ready themselves for the GST, it win back the support of the small business would allow them to write off in the first constituency, its total unwillingness to ac- year GST start-up related purchases. Many knowledge the pain the GST has brought to small firms, for a variety of reasons, were small business and therefore to attempt to not able to take the benefit of that initiative redress the situation. This is a constituency before 30 June 2000 and the sector was which has been hit for six by the GST and calling upon the government to extend that at yet, despite having all the resources of gov- least another year. The program cost only ernment, this government is unprepared to $170 million in the first year. I expect that put forward one initiative designed to ad- most people would have already made that dress that pain. We heard the Treasurer tell- investment by 30 June and therefore I sus- ing us that there were some initiatives con- pect that the cost of such a proposal would tained within the budget for small business. I have been very little. In contrast, with its fail to recognise them. There was the reduc- limited resources the opposition is putting tion in the company tax rate from 34c to 30c forward proposals to make the GST simpler in the dollar, but of course there would have and less complex for small business. The been outrage if that initiative had not been member for Hotham, Simon Crean, an- contained within the budget because that was nounced one of them just last week: a good Monday, 4 June 2001 REPRESENTATIVES 27225 scheme which stands in stark contrast to the That this House: scheme proposed by the government. (Time (1) acknowledges that almost one third of all expired) Australian workers are now working more Mr SPEAKER—Order! It being 11 p.m., than 50 hours per week; the debate is interrupted. (2) notes that the French Government has re- House adjourned at 11.00 p.m. cently legislated for a 35 hour week; (3) conduct a review of the operation of the REQUEST FOR DETAILED French legislation, and its success or other- INFORMATION wise; and Parliament House: Television Services (4) consult widely with the community, the busi- Mr Martin Ferguson asked Mr Speaker, ness sector and trade unions, to explore the upon notice, on 10 May 2001: appropriateness or otherwise of applying similar values to an Australian context. In approving the offer of Foxtel services to parliament House for no charge, did he establish criteria to provide the basis on which further of- fers of services to Parliament House would be considered?’ Mr Speaker—The answer to the honour- able member’s question is as follows: Since Parliament House opened in 1988 and prior to the Foxtel offer, the number of television news and information channels provided on the House Monitoring Service had increased from three (ABC, SBS, Capital 7) to ten - two addi- tional free-to-air channels (Prime and WIN) and five subscription services had been added. In the case of the free-to-air services, no charges are incurred. In the case of the subscription services (CNN, BBC WORLD, Sky News Australia, CNBC and Bloomberg Information Television) the arrange- ments vary. The Department of the Parliamentary Reporting Staff pays subscription fees to CNN ($6000 per annum) and CNBC ($1800 per an- num). BBC WORLD, Sky News Australia and Bloomberg are provided free of charge to the Parliament. In relation to criteria against which offers of future services might be judged, the Foxtel offer was assessed by DPRS against three: • HMS channel availability • cost of accepting the (FOXTEL) offer; and • the appropriateness of the content for HMS. These criteria would continue to be the benchmarks against which future offers would be judged by DPRS. The President of the Senate and I would then consider any advice provided to us by the Secretary, DPRS. NOTICES The following notice was given: Ms Hoare to move: 27226 REPRESENTATIVES Monday, 4 June 2001

QUESTIONS ON NOTICE The following answers to questions were circulated: Goods and Services Tax: Company Tax (Question No. 2016) Mr Kelvin Thomson asked the Treasurer, upon notice, on 4 October 2000: (1) Is he aware that the ATO deducted company tax payments from GST refunds around 1 September 2000. (2) Is he also aware that this caused some companies to make a “double payment” of company tax as some companies had already paid their company tax when it was due. (3) How many companies had their company tax payment taken from their GST refunds. (4) How many companies has the ATO had to make refunds to as a result of the double payments. (5) What is the total of the extra tax collected by the ATO as a result of the double payments. (6) How long did it take the ATO to refund this money to small businesses. (7) Was interest paid to the affected companies; if so, how much. (8) Did the ATO notify affected companies that it would deduct company tax due from GST refunds; if not, why not. (9) What measures have been taken to prevent this occurring again. Mr Costello—The Assistant Treasurer has provided the following answer to the honour- able member’s question: (1) Since 1 July 1999, the Commissioner has been required by section 8AAZL of the Taxation Ad- ministration Act 1953, to apply any payment, credit or surplus on an account against any taxation debt. Similar legislative provisions existed prior to 1 July 1999. Accordingly, the Commissioner was required by the law to apply the business activity statement (BAS) refund to the company income tax instalment liability that was due on 1 September 2000. (2) The Commissioner is aware that some companies had paid the company income tax instalments after their BAS refund was applied to those debts. This overpayment was refunded in cases where there were no other outstanding debts. (3) to (5) Between 16 August 2000 and 4 October 2000, BAS refunds were applied to the income tax instalments of 1,946 companies. Of the 1,946 clients, 610 have had refunds repaid and the re- mainder have taken advantage of the ATO offsetting their GST credit to cover their company in- stalment. No extra tax has been collected. (6) Any overpayment was refunded, or offset against other liabilities as soon as possible. The average time taken for all 610 refunds, between the date of the original offset and the repayment, was 28 days. (7) Under the Taxation (Interest on Overpayments and Early Payments) Act 1983, no interest would be payable as a result of the offsetting of the BAS refunds against the company instalment. (8) As this legislation has been in force since 1 July 1999, specific advice to the companies concerned was not considered necessary. (9) This legislation was enacted to enable the more efficient collection of taxation debts, and to pre- vent taxpayers receiving a refund on one day and having a tax debt payable shortly thereafter. The legislation has now been amended to give the Commissioner a discretion not to offset amounts against a tax debt where the debt is due but not yet payable. Monday, 4 June 2001 REPRESENTATIVES 27227

Second Sydney Airport: Sydney West (Question No. 2305) Mr Murphy asked the Minister for Transport and Regional Services, upon notice, on 6 February 2001: (1) Has his attention been drawn to statements made in the Australian newspaper that Federal Cabinet has ruled out building a second airport in Western Sydney. (2) Does section 11 of the Airports Act state that the airport-lessee companies of Sydney (Kingsford- Smith) Airport (KSA) and Sydney West Airport must be wholly-owned subsidiaries of the same holding company; if so, (a) what is the rationale behind this provision and (b) will the provision be repealed. (3) Does paragraph 14(5)(f) of the Airports Act state that an airport lease complies with the subsec- tion if, in the case of Sydney West Airport, the lease provides for the development of the site as an airport or the use of the site as an airport, or both whether or not the lease also provides for other developments or other uses; if so, (a) what is the rationale behind this provision and (b) will the provision be repealed. (4) Will he make provisions in granting a lease for Sydney Airport that the lease provides for the de- velopment of the site for Sydney West Airport. (5) Will he recommend a site other than Badgerys Creek as the site for Sydney West Airport; if so, when; if not, why not. (6) Can an operator-lease for Sydney Airport be drafted without reference to provisions in that lease for the development of the site for Sydney West Airport. (7) For the purposes of section 16 of the Airports Act, who are (a) the airport-lessee companies and (b) the airport management-companies for (i) those airports listed in subsection 7(1) of the Act and (ii) any other airport in Australia. (8) Will he repeal or amend section 16 of the Act. (9) Does section 18 of the Act state that the Commonwealth must not grant an airport lease under section 13 of the Act, or section 22 of the Airports (Transitional) Act, for KSA or Sydney West Airport unless each of the airport-lessee companies is a subsidiary of the same company; if so, (a), when will tenders be advertised for the airport-lessee company for KSA and Sydney West Airport and (b) will the Commonwealth ultimately dispose of its shares in the airport-lessee companies and airport-management companies for the airports; if so, when; if not, why not. (10) Will he repeal or amend section 18 of the Act. (11) What would the financial impact be on the purchase price of KSA if there were no requirement for the operator of Sydney airport to build a second airport in Western Sydney. (12) In light of the Environment Protection (Impact of Proposals) Act and the Environment Protection and Biodiversity Conservation Act, why were alternative sites such as Darkes Forest and Wilton not included in the Environmental Impact Statement on Bankstown Airport. Mr Anderson—The answer to the honourable member’s question is as follows: (1) I am fully aware of the Government’s decision in December 2000 on Sydney’s future airport needs including the conclusion reached that it would be premature to build a second major airport for the city. (2) Yes. (a) This provision reflects the envisaged complementary roles of the two airports. (b) There is no intention to repeal this provision at this time. (3) Yes. (a) This provision reflects the intention that the lessee of Sydney West Airport be responsible for developing and/or operating the airport. (b) There is no intention to repeal this provision at this time. 27228 REPRESENTATIVES Monday, 4 June 2001

(4) The lease for Sydney (Kingsford Smith) Airport has been granted under section 21 of the Airports (Transitional) Act 1996. It does not contain provisions relating to the development of the site for Sydney West Airport. It is proposed that a sale agreement for Sydney Airport will provide for the new owner to be given a first right of refusal by the Commonwealth to build and operate any second major airport within 100 kilometres of the Sydney Central Business District. (5) The Government has decided to retain ownership of the Badgerys Creek site and to legislate to protect the site from incompatible development in surrounding areas which may prejudice its fu- ture use as an airport. The Government will further review Sydney’s airport needs in 2005. No site other than Badgerys Creek is currently being considered for a second major airport. (6) Yes. (7) The airport-lessee companies and the airport management companies for all the airports leased under the provisions of the Airports Act 1996 are listed at Attachment A. (8) There is no intention to repeal Section 16 of the Act at this time. (9) Yes. (a) Section 18 of the Airports Act does not require tenders to be advertised or called for the airport lessee company for KSA or Sydney West Airport. (b) The Government announced its in- tention, on 29 March 2001, to sell its shares in the airport lessee company for KSA by way of a 100% trade sale in the second half of 2001. There is no airport lessee or airport management com- pany for Sydney West Airport. (10) There is no intention to repeal or amend Section 18 of the Act at this time. (11) There is no requirement for the operator of Sydney Airport to build a second airport in western Sydney; rather it is proposed that the operator of Sydney Airport will be given a first right of re- fusal to build and operate any such airport. (12) There has been no Environmental Impact Statement (EIS) undertaken on Bankstown Airport. The EIS for the second Sydney airport proposal, which was completed in 1999, was specifically for the Badgerys Creek site. Environment Australia’s Guidelines for this EIS clearly acknowledged that alternative site locations would not be addressed in detail having been the subject of a separate ‘site selection’ EIS in 1985 and subsequent Government decisions (except for the Holsworthy site which had been the subject of more recent study). ATTACHMENT A AIRPORT-LESSEE AND AIRPORT-MANAGEMENT COMPANIES Airport Airport-Lessee Company Airport-Management Com- pany

Sydney (Kingsford Smith) Sydney Airports Corporation N/a Ltd Melbourne (Tullamarine) Australia Pacific Airports (Mel- N/a bourne) Pty Ltd Brisbane Corporation N/a Ltd Perth Westralia Airports Corporation N/a Pty Ltd Adelaide Ltd Adelaide Airport Management Ltd Coolangatta Ltd Queensland Airports Man- agement Ltd Hobart Hobart International Airport Pty N/a Monday, 4 June 2001 REPRESENTATIVES 27229

Airport Airport-Lessee Company Airport-Management Com- pany

Ltd Launceston Australia Pacific Airports N/a (Launceston) Pty Ltd Alice Springs Pty Ltd N/a Canberra Canberra International Airport Capital Airport Group Pty Ltd Pty Ltd Darwin Darwin International Airport N/a Pty Ltd Townsville Australian Airports N/a (Townsville) Pty Ltd Archerfield Archerfield Airport Corporation N/a Pty Ltd Bankstown Bankstown Airport Ltd N/a Camden Camden Airport Ltd N/a Hoxton Park Hoxton Park Airport Ltd N/a Essendon Ltd N/a Jandakot Holdings Pty N/a Ltd Moorabbin Corporation N/a Pty Ltd Parafield Parafield Airport Ltd Adelaide Airport Management Ltd Tennant Creek Pty Ltd N/a Mt Isa Australian Airports (Mount Isa) N/a Pty Ltd

Pensioners: Driving Assessments (Question No. 2372) Mr Kerr asked the Minister for Veterans’ Affairs, upon notice, on 26 February 2001: (1) Must Tasmanian recipients of Department of Veterans’ Affairs (DVA) pensions pay to undergo a driving assessment by Rehabilitation Tasmania, while recipients of Centrelink pensions are pro- vided the service free of charge. (2) How many Tasmanian recipients of DVA pensions have had to pay $400 to undergo a driving as- sessment in the last three years. (3) On what basis does his Department consider this service to be a non-medical service. (4) Based on current figures, what would be the anticipated cost to the Commonwealth per annum to reimburse DVA pensioners in Tasmania for this cost. (5) Does the Commonwealth propose to take action to address this problem. Mr Bruce Scott—The answer to the honourable member’s question is as follows: 27230 REPRESENTATIVES Monday, 4 June 2001

(1) and (3) Under the Veterans’ Entitlements Act 1986 (VEA), the Repatriation Commission is re- quired to provide treatment services and rehabilitation services in accordance with the Act. The Repatriation Commission is assisted in the administration of the VEA by officers from the De- partment of Veterans’ Affairs (DVA). The treatment services provided under Part V of the VEA can include driving skills assessments. However, the VEA provides that DVA is only able to pay for driving skills assessments if the beneficiary is suffering from a medical condition that is war- caused and the medical condition gives rise to the need for the driving skills assessment. In addi- tion, under Part VIA of the VEA, DVA is also required to provide rehabilitation services to assist specified classes of veterans to find employment and to continue in employment. Part of an ap- propriate rehabilitation program can include a driving skills assessment. If the above circum- stances exist, then DVA is able to meet the costs of the driving skills assessments. However, unless the above legislative criteria are met, then there is currently no legal authority enabling DVA to meet the costs of driving skills assessments provided by “Rehabilitation Tasmania” to pensioners and beneficiaries in receipt of pensions, benefits or allowances under the VEA. (2) DVA records do not disclose the number of DVA pensioners that have paid for driving skills as- sessments in Tasmania. Due to the fact that DVA can only fund driving assessments for pensioners with a war-caused medical need, DVA does not record the number of DVA pensioners with non- war caused medical needs who may have been required to pay for their driving skills assessments. (3) There are no records of the number of DVA pensioners with a need for a modified vehicle which in turn would require, as a pre-requisite, a driving skills assessment. (4) There is currently no proposal to alter the VEA to widen the range of DVA pensioners who would be eligible for a funded driving skills assessment. Sydney (Kingsford Smith) Airport: Sale (Question No. 2374) Mr Murphy asked the Minister for Finance and Administration, upon notice, on 26 Febru- ary 2001: (1) Has the Government announced that it intends to sell Sydney (Kingsford-Smith) Airport sepa- rately from the other Sydney basin airports; if so, has he obtained advice that the sale is entirely consistent with the Airports Act 1996. (2) Is the intention of Division 3 of the Airports Act 1996 to provide that a second airport called Syd- ney West Airport will be commercially leased to the purchaser or lessee of Sydney (Kingsford- Smith) Airport thus ensuring that Sydney West Airport is purchased and built. (3) Further to his media statement ‘Appointment of advisers to conduct the Sydney airports scoping study’ released on 18 January 2001, has the Office of Asset Sales and Information Technology Outsourcing, in providing their initial advice on the sale of Sydney (Kingsford-Smith) Airport, sought advice from the appointed advisers, Salmon Smith Barney and Freehills, on whether the lease of Sydney (Kingsford-Smith) Airport must include provisions to lease Sydney West Airport to the same corporate entity or subsidiary. Mr Fahey—The answer to the honourable member’s question is as follows: (1) Yes, the Government has obtained advice from its advisers, Salomon Smith Barney and Freehills, confirming that the proposed sale is consistent with the Airports Act 1996. (2) I am advised that the intention of Part 2 Division 3 of the Airports Act 1996 is that, if an airport lease is granted for Sydney West Airport, the airport lessee companies for Sydney (Kingsford Smith) Airport and Sydney West Airport be wholly owned subsidiaries of the same holding com- pany. (3) Yes. Monday, 4 June 2001 REPRESENTATIVES 27231

Australian Government Actuary: Parliamentary Contributory Superannuation Scheme (Question No. 2425) Mr Andren asked the Minister for Finance and Administration, upon notice, on 5 March 2001: (1) Does the Australian Government Actuary, in accordance with common practice for superannua- tion arrangements in the private sector, provide details of the cost to the Commonwealth of the Parliamentary Contributory Superannuation Scheme (PCSS) every three years; if not how often does the Actuary report. (2) Is it a fact that (a) the Actuary reported, in February 1997, that based on 30 June 1996 data, the notional employer contribution rate, that is, the effective cost of the PCSS as a percentage of total salaries of scheme members was 69.1 per cent and (b) based on data as at 30 June 1999, the Actu- ary again reported to his Department in, or around, February 2000. (3) Is he aware that his Department has refused to provide my office with details of the Actuary’s last report, on the basis that such information is confidential. (4) Will he make the Actuary’s 2000 report on the long term cost of the PCSS scheme publicly avail- able; if not, (a) why not and (b) will he reveal what rate of notional employer contribution the Actuary included in his 2000 report. Mr Fahey—The answer to the honourable member’s question is as follows: (1) The most recent full actuarial reviews of the PCSS were undertaken in 1995, 1997 and 2000. (2) (a) Yes. (b) Yes. (3) I am advised that the relevant area of my Department received no request from the Honourable Member’s office to provide details of the Actuary’s last report. (4) No. (a) Previous reports have not been made publicly available and there is no requirement to do so. (b) All Senators and Members were provided with this information on 15 December 2000 through the PCSS Annual Report. Sydney Basin Airports: Sale (Question No. 2436) Mr Murphy asked the Minister for Finance and Administration, upon notice, on 6 March 2001: (1) During his second reading speech for the Airports Legislation Amendment Bill 1997 (Hansard, 1 October 1997, page 8958) did he say that the sale of the Sydney basin airports, which are Kings- ford Smith, Hoxton Park, Bankstown and Camden airports, will take place only after completion of an environmental assessment of options for the site for the second Sydney airport and when the Government has effectively addressed noise issues relating to Sydney airport. (2) If so, (a) has an environmental assessment of options for the site for the second Sydney airport been undertaken; if so, what (i) is the name of that assessment and (ii) are the assessments compo- nents and (b) has the issue of noise relating to Sydney airport be addressed. (3) Have the two preconditions been satisfied. (4) Does the scoping study for the proposed sale of Sydney, Bankstown, Hoxton Park and Camden airports include these two preconditions; if not, why not. Mr Fahey—The answer to the honourable member’s question is as follows: (1) Yes. 27232 REPRESENTATIVES Monday, 4 June 2001

(2) (a) An environmental assessment of options for the site for the second Sydney airport has been undertaken. (i) The report is called ‘Environmental Impact Statement for the Proposed Second Sydney Airport at Badgerys Creek’. (ii) A proposal to consider the building of a domestic and international airport at Badgerys Creek in western Sydney underwent an environmental assessment conducted in accor- dance with the Administrative Procedures of the Environment Protection (Impact of Proposals) Act 1974. (2) (b) Aircraft noise issues relating to Sydney airport have been effectively addressed through the introduction of a maximum movement cap at KSA and the Long Term Operating Plan (LTOP) and the substantial completion of the noise insulation program. (3) Yes. (4) The Government sought advice from its scoping study advisers, Salomon Smith Barney and Free- hills, on a range of issues, however, it did not seek advice on these two preconditions because they had been satisfied by: - the actions outlined in the answers to question 2 above; and - the Government’s policy announcement on 13 December 2000 that after lengthy and careful consideration of Sydney’s future airport needs that it would be premature to build a second major airport in the city. National Youth Roundtable: Applications (Question No. 2496) Ms Ellis asked the Minister for Education, Training and Youth Affairs, upon notice, on 2 April 2001: (1) How many applications were made to the 2001 Youth Roundtable from residents in the electoral division of Canberra. (2) What was the gender breakdown of these applicants. (3) What selection criteria were applied in determining eligibility for the Youth Roundtable. (4) Will he provide a copy of the selection criteria and the selection process guidelines. (5) Is there a provision for ministerial discretion in the selection procedure for Youth Roundtable delegates. Dr Kemp—The answer to the honourable member’s question is as follows: (1) There were seven applications from the electoral division of Canberra for the Youth Roundtable 2001. (2) 3 male, 4 female. (3) Applicants for the National Youth Roundtable 2001 were assessed against the selection criteria by their responses to the general questions on the application form and the references provided with their applications. Broadly, the selection criteria required applicants to demonstrate: (a) a commitment to youth issues; (b) the capacity to consult with other young people; (c) membership of, or participation in, community groups or activities and youth programmes; and (d) knowledge of and interest in youth issues. (4) Yes, the following is the process undertaken to select Roundtable members: Monday, 4 June 2001 REPRESENTATIVES 27233

Stage 1 Voices of Youth staff members selected 151 applicants from the 673 received. This was achieved by rating the applicants according to the selection criteria identified on the application form, refe- ree reports and speaking with referees. Stage 2 151 applicants were selected and then subjected to closer scrutiny by the Assistant Secretary, Youth Bureau and the Director, Voices of Youth to decrease the listing further. Consideration was given to selecting applicants who have a variety of education, employment and life experiences; a diversity of experience in relation to community activity and involvement; reside in varied loca- tions across Australia (urban, rural, remote); and disparate profiles from similar geographical lo- cations. This process culled the applications to 125. Stage 3 An independent national advisory committee, comprised of community and business representa- tives, met in Canberra on 13 December 2000. The committee identified a group of 60 applicants for further consideration. (5) The Minister endorses the advisory committee’s list of applicants. Environment: Carbon Dioxide Emissions (Question No. 2524) Mr Murphy asked the Minister representing the Minister for the Environment and Heri- tage, upon notice, on 5 April 2001: (1) Is the Minister aware of a report in The Sydney Morning Herald of 3 April 2001 that Cabinet is said to have decided to support the stand taken by the US against the Kyoto Protocol while the Minister is reported as saying that he is in favour of supporting the protocol; if so, will the Gov- ernment support the Kyoto protocol; if not, why not. (2) In terms of the Kyoto protocol what is the estimated cost per kilogram of carbon dioxide reduction from the electric power industry when measures such as increased energy efficiency of domestic, commercial and industrial equipment are taken into consideration. (3) What effect would a program of supporting the installation of domestic solar hot water heaters nationwide have on carbon dioxide emissions if the level of use of such solar hot water heaters reached that (approximately 50%) found in the Northern Territory. (4) Considering that electricity generators are responsible for nearly 50% of Australia’s carbon diox- ide emissions, what measures does the Government have in place to reduce the consumption of electricity. (5) What measures does the Government have in place to increase the energy efficiency of Australia’s coal fired power stations. (6) What area of solar photo-voltaic or solar thermal collectors would be required to replace all of Australia’s existing fossil fuelled electric power stations. (7) What would be the cost of such a conversion. (8) Is the Minister able to provide a comprehensive list of economic sectors, ranging from agriculture, transport, energy supply, housing, food production, mining and all other sectors that each contrib- ute more than five percent of Australia’s carbon dioxide emissions together with a breakdown of the costs and potential savings that would result if measures were taken to reduce Australia’s car- bon dioxide emissions below the levels of 1990. (9) Have reputable economic analysts shown that significant savings are possible if measures to re- duce carbon dioxide emissions are taken on a case by case basis rather than taking the worst case and claiming that case to represent the whole economy. 27234 REPRESENTATIVES Monday, 4 June 2001

Mr Truss—The Minister for the Environment and Heritage has provided the following an- swer to the honourable member’s question: (1) The Prime Minister wrote to the President of the United States on this matter on 11 April 2001. He stated that Australia remains committed to dealing effectively with climate change and that the Government would continue to implement its program of domestic policies to reduce greenhouse gas emissions. The Government indicated when signing the Protocol in April 1998 that possible future ratifica- tion of the Protocol was dependent upon satisfactory outcomes on four key outstanding issues: sinks, compliance, the flexibility mechanisms and the involvement of developing countries. Aus- tralia has consistently argued that an effective international framework to address climate change needs to be economically manageable and include the participation of developing countries. Any international framework to address climate change will, if it is to be effective, need to incorporate the participation of all major emitters, including the United States. (2) There are a range of costs for abating greenhouse gas emissions from electricity supply and con- sumption, depending upon the measures adopted and the context in which they are used. Experi- ence through programs such as the Greenhouse Challenge shows that there are a variety of cost- effective measures available. For example, analysis carried out by the Australian Greenhouse Office on the National Appliance and Equipment Energy Efficiency Program indicates that labelling and energy efficiency standards for some appliances and equipment can deliver savings of greenhouse gas emissions at a net community benefit of up to $31 a tonne. (3) The Australian Bureau of Statistics estimated that in 1999 there were 7.2 million hot water sys- tems installed in dwellings in Australia. If solar hot water systems were installed in 50% of the houses across Australia, around 6.5 million additional tonnes of carbon dioxide would be abated each year. (4) The Australian government has developed a range of measures to improve energy efficiency and hence reduce consumption of electricity. These include: • Agreement for the development of standards for the energy efficiency of buildings, • Joint government and industry initiatives that encourage benchmarking and best practice within the building industry, • The National Appliance and Equipment Energy Efficiency Program, • The Greenhouse Challenge program, and • The Energy Efficiency Best Practice program. (5) In order to improve the efficiency of Australia’s power stations the Government introduced new standards for power generators on 1 July 2000. Generator Efficiency Standards work to increase the efficiency of energy production from fossil fuels. (6) Australia's annual generation of electricity from fossil fuel sources in 1999 was estimated as 170,000 gigawatt hours (GWh). To generate 170,000 GWh per year from solar photovoltaic pan- els would require an area in the order of 850 square kilometers (not including the energy storage systems). To generate the same amount of energy from solar thermal collectors, an area in the or- der of 300 square kilometres of solar thermal collectors would be required (in addition to the area taken up by the generation equipment). (7) With current solar photovoltaic technology the costs would be in the order of $1,000 billion, not including the energy storage systems required to deliver useable power to consumers. Using solar thermal systems, which are not yet fully commercial, the cost would be in the order of $200 bil- lion excluding the generating equipment and storage systems. These estimates do not include the cost of the land that would be required for either system. Monday, 4 June 2001 REPRESENTATIVES 27235

(8) According to the 1999 National Greenhouse Gas Inventory, Energy Industries (41.2%), Transport (16.1%), Livestock (13.7%) and Manufacturing Industries and Construction (11.3%) each contrib- uted more than 5% of Australia’s carbon dioxide equivalent emissions. ABARE have published analysis of the potential economic impacts of the Kyoto Protocol, based on a greenhouse gas emissions target of 108% of 1990 levels. The ABARE analysis estimates that real GNP will grow by around 1% less than the 40% growth otherwise expected between now and 2010. Corresponding impacts have been reported for a range of industries. However, there is no current analysis of the industry costs or benefits of taking action to reduce Australia’s carbon dioxide emissions below 1990 levels. (9) Studies based on ‘bottom up’ style partial analyses often identify potential emissions measures with net savings, based in many instances on the adoption of new technologies. Reflecting the ex- istence of these opportunities, a range of measures with net savings already has been implemented by the Commonwealth, such as the Greenhouse Challenge Program and Minimum Energy Per- formance Standards. The Commonwealth also provides funding for large-scale cost-effective emission abatement projects through the Greenhouse Gas Abatement Program. Bottom up models can tend to understate the economy-wide impacts resulting from the diversion of investment required to implement new technologies in an accelerated timeframe. ‘Top down’ economic models can provide additional information helping to inform the economy-wide costs of taking greenhouse action. Both modelling approaches are valuable in evaluating optimal green- house policy responses.