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PETITION Railway Aossing Gates PETITION Wednesday. 14 December 1994 COUNCll.. 1441 Wednesday, 14 DeCember 1994 relationships existed between the parties to the transaction and therefore whether any financial or other inceritives were offered to those involved in the transaction; The PRESIDENT (Hon. B. A. Ownberlain) took any significant investments should be .made only the chair at 10.03 a.m. and read the pray-er. in accordance with an established investment strategy and in accordance with approved cash PETITION flow forecasts; Railway aossing gates: Yarraville tmless there are compelling reasons to the contrary, financial advisers should not be Hon. Jean McLEAN (Melbourne West) presented preferred to direct advice from the city's bankers petition from cerWn citizens of Victoria PRying or its appointed investment managers; and that works to be undertaken by the Public Transport COrpGRtion to replace the historic if funds are invested with the city's bankers, those railway crossing gates at Anderson Street,. funds should not normally be invested outside Yarraville, be abandoned ud that uy works to be the 'state. carried out will preserve and enhance the historic nature, vilUge c:haracter and amenity of the area. On 30 August 1994 the Auditor~ also advised (204 signatures) me that during the course of his investigation it was revealed that the City of Sunshine had also made a lAid on table. similar investment of around $10 million. M\ investigation was then undertaken on both matters AUDITOR-GENERAL by an inspector of municipal administration from the Office of Local Government. City of Sunshine and former City of Bendigo 'The investigation found that the investments by the two councils with various banks did not bream the Hon. It. M. HALLAM (Minister for Local Local Government Act 1989. However, the Government) presented report of investigation transactions undertaken were highly irregular and into investments by City of Sunshine and former on two occasions attempts were made by third , City of Bendigo, December 1994. parties - they almost succeeded - to access the councils' funds. The exposure arose through the use lAid on table. of an intermediary who, it appears, had little experience in the investment industry, particularly Ordered to be printed. in the field of local government investments. Few, if any, prudential mecks were done on the various MINISTERIAL STATEMENT parties involved in managing the councils' fwlds. City of Sunshine and This is a frightening tale of two chief executive former City of Bendigo officers ignoring tried and traditional ways of investment and thereby exposing the councils to Hon. It. M. HALLAM (Minister for Local extremely high risks. Both chief executive officers Government) - I wish to make a brief ministerial mandated a company, Fiduciary Securities Pty Ltd, statement on the report. In mid-1994 the to manage their councils' investment funds. It Auditor-General undertook a due diligence audit of appears that few, if any, checlcs were done on the matters in the five former mtmicipalities whim company, and if they had been done properly the constitute the City of Greater Bendigo. One matter Australian Securities, Commission checlc would have which was reported on by the Auditor-General was rev~ed that Fiduciary was a $2 shelf company. an irregular investment with the Commonwealth Bank in Brisbane. The officers of Barelays and the Melbourne treasury of the Commonwealth Bank told the chief executive The Auditor~ recommended that officers that the proposed arrangements did not meet the requirements of either bank. The tw9 chief the commissionets should further investigate this executive officers then travelled to Brisbane to transaction to determine whether any PAPERS 1442 COUNCll.. Wednesday, 14 December 1994 deposit the funds in the Brisbane branch of the Minister for Natural Resources' report of Commonwealth Bank, where they believed no such 12 December 1994 on failure of the Authority to restrictions would be placed on them. submit 1993-94 annual report to him within the presaibed period and the reasons therefor. An attempt was then made to obtain a letter of credit Report. 1993-94. against the money by Fiduciary Securities through anOther company, Noble Promotions Pty Lld. This Parliamentary Committees Act 1968 - Minister's was effectively stopped by the actions of the response to recommendations in Law Reform respective mayors and other officers from the Committee's Final Report upon Restitution for Victims councils on Christmas Eve 1993. Rather than of Crime. withdraw the mandate, the chief executive officers left the money for a further four months in Brisbane west Moorabool Water Board- earning 4.85 per cent, a comparable, but not Minister for Natural Resources' report of extraordinary, rate of interest to that which was 12 December 1994 on failure of the Board to submit available locally. 1993-94 annual report to him within the presaibed period and the reasons therefor. Subsequently, a second attempt to gain letters of credit over the councils' funds was made in April Report, 1993-94. 1994 through a Sydney branch of the bank by yet DISSENT FROM PRESIDENT'S RULING another company, Moorlife International. I am pleased to say the mandates were then cancelled and Bon. D. R. WHITE (Doutta Galla) - I move: action was taken to return the funds to SWlShine and Bendigo respectively. That this house disagrees with the ruling of Mc President on Tuesday 6 December 1994, in which he Investigations have revealed that an officer of the ruled out of order a notice of motion from the Brisbane branch of the Commonwealth Bank and the Honourable D. R. White calling for a judicial inquiry directors of Noble Promotions have been charged by into the decision to award the permanent and the Queensland fraud squad with misappropriation temporary casinos to Crown consortium. of money. Mr Peter Windsor, of Fiduciary Securities, is assisting police with their inquiries. Mr President, last week you ruled my notice of motion out of order on the following grounds -- I am concerned that although no money was lost by ratepayers in Bendigo, it was more by good luck Bon. B. E. DAVIDSON (Chelsea) - On a point than good management. There were losses at of order, Mr President, there is before the house a Sunshine. These losses related to the fact that the motion of dissent. There are no standing orders of money invested in Brisbane included funds obtained any association I know of that rule that the ~ on overdraft at an interest ra~ in excess of should not vacate the chair while a dissent mobon 15 13 per cent, which was only returning 4.85 per cent, being debated. as well as penalties from retrieving the funds from Brisbane before the fixed term expired. Hon. M. A. Birrell - You call a point of order on your own speaker - real smart act! Neither chief executive officer is still employed by the respective councils. The current chief executive Hon. D. A. Nardella - Smarter than you! officer and commissioners of the City of Greater Bendigo and the acting chief executive officer and Bon. B. E. DAVIDSON - I understand there is councillors of the City of Sunshine have cooperated some precedent for not vacating the chair, but it fully with the investigation and have ensured that seems we are in the extraordinary position where systems are in place to prevent such an occurrence you, Mr President, may well be asked to rule on again. matters of procedure while you are facing a motion PAPERS of dissent. It further seems to me that if there is going to be any Laid on Qble by Oerle degree of impartiality in the ruling you should ~e it upon yourself to remove yourself from the chair Hopkins Region Water AuthOrity - for the proceedings of this motion. Otherwise, how DISSENT FROM PRESIDENT'S RULING Wednesday. 14 December 1994 COUNCll.. 1443 on earth can we say the matter was dealt with any Hon. B. Eo DAVIDSON - It is in your own degree of impartiality? interests and the interests of this place that you are not placed in that position,. Mr President There Hon. M. A. Birre11 inteIjected. ought to be somebody else in the chair who can examine the issue impartially and call people to Hon. D. R. White in~ order if necessary. How can you be called on to do this, Mr President, when you yourself are the subject Hon. B. E. DAVIDSON - Where a President of a ctissent motion? It does not really matter what finds himself in the situation of having a dissent the precedent is: it is a matter between you and your motion moved on a decision he has made, that own conscience. President would stand down. Mr President, it is absolutely unconscionable for you to stay in the I do not know what happened with President. chair and preside over debate on this motion. You Mackenzie because I was not here at the time. will be put in the position of having to judge matters Whether you step down and allow somebody else to of procedure during this debate, and you will not be preside over these proceedings during debate on the able to look at the matter with any degree of dissent motion is a matter for you and your impartiality. After all, it is your own ruling that is conscience, Mr President being called into question. Hon. M. A. BIRItELL (Minister for Conservation Hon. R. L KNOWLES (Minister for Housing) - and Environment) -On the point of order, On the point of order, Mr President, the precedent is Mr President, while the honourable member said it very clear, both in this place and in the Legislative does not really matter what the precedent is, that Assembly: where there is a motion of dissent the underlies the fact that he has no point of order ~d is Presiding Officer continues to preside.
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