25 Mar 1997 Papers 757 TUESDAY, 25 MARCH 1997 Education (General Provisions) Act 1989— Education (General Provisions) Amendment Regulation (No. 1) 1997, No. 59 Mr SPEAKER (Hon. N. J. Turner, Nicklin) Health Act 1937— read prayers and took the chair at 9.30 a.m. Health (Drugs and Poisons) Amendment Regulation (No. 1) 1997, No. 64 AUDITOR-GENERAL'S REPORTS Hospitals Foundations Act 1982— Mr SPEAKER: I have to advise the Hospitals Foundations Amendment House that today I received from the Auditor- Regulation (No. 1) 1997, No. 57 General the following reports: the Second Local Government Act 1993— Report on Audits Performed for 1995-96 Local Government Legislation Amendment (including Local Governments) and Audits of Regulation (No. 1) 1997, No. 63 Aboriginal Councils and Island Councils Mental Health Act 1974— Performed for 1995-96. Mental Health Amendment Regulation (No. 2) 1997, No. 58 PETITIONS Primary Producers' Organisation and Marketing The Clerk announced the receipt of the Act 1926— following petitions— Primary Producers' Organisation and Marketing (Queensland Pork Producers' Organisation) Amendment Regulation Quaid Road (No. 1) 1997, No. 60 From Mr Gilmore (1,177 petitioners) Stock Act 1915— requesting the House to take steps to open Stock Amendment Regulation (No. 1) the highway between the Peninsula Road, Mt 1997, No. 61. Molloy and the Captain Cook Highway, commonly known as Quaid Road to the public, thereby giving greater access from Cairns to OFFICE OF THE MINISTER the north. Mr BORBIDGE: In accordance with the guidelines for the financial management of the Office of the Minister, I now table a statement Surgeon, Dalby of expenses of the Ministers of the Crown for From Mr Littleproud (1,184 petitioners) the 1995-96 financial year broken down into requesting the House to take action regarding the following categories: domestic travel, a resident surgeon in the town at Dalby. overseas travel, motor vehicle operating expenditure, charter costs, domestic official functions, overseas official functions and Lollipop Person, Albany Creek other. Ministerial expenses that have been From Mr Welford (124 petitioners) unsigned by previous Ministers are also requesting the House to re-employ the included for information purposes. In addition, services of the lollipop person for the crossing details of overall ministerial office expenses on the corner of Old Northern Road and are included in the Treasurer's Annual Keong Road, Albany Creek. Statement. Petitions received. PAPERS STATUTORY INSTRUMENTS The following papers were laid on the table— In accordance with the schedule circulated by the Clerk to members in the (a) Premier (Mr Borbidge)— Chamber, the following documents were Expenses of Ministers of the Crown 1 tabled— July 1995 to 30 June 1996 Chemical Usage (Agricultural and Veterinary) (b) Attorney-General and Minister for Justice Control Act 1988— (Mr Beanland)— Chemical Usage (Agricultural and Minors' Civil Law Capacity—Report Veterinary Control) Amendment No. 50 of the Queensland Law Reform Regulation (No. 1) 1997, No. 62 Commission. 758 Ministerial Statement 25 Mar 1997 MINISTERIAL STATEMENT cooperative federalism in the past. However, it Ethnic Affairs is in line with what the Federal Governments have been doing to the States for 10 years. Hon. R. E. BORBIDGE (Surfers Paradise—Premier) (9.34 a.m.), by leave: As members would be aware, the 1997 Honourable members would be aware of the financial Premiers Conference on 21 March recent initiative of the Queensland Ethnic concluded without a resolution of the level and Affairs Ministerial Advisory Committee to distribution of Commonwealth funding to the overhaul Queensland's ethnic affairs policy. States and Territories. This is the first time that This process began last July when I approved this has happened in the history of the terms of reference for the study which was Premiers Conference and represents a conducted by the committee under the significant deterioration in chairmanship of Professor Mary Kalantzis. Its Commonwealth/State financial relations arising purpose is to ensure that the programs and directly as a result of the intransigence of the services of the State Government are Commonwealth Government. adequate, remain cost effective and are The particular point at issue for the States appropriate for Queensland's cultural diversity. and Territories and the substantive cause An early initiative of the State leading to the adjournment of the conference Government was to move the Bureau of was confusion. Ethnic Affairs into the central portfolio of my Mr Elder interjected. department in recognition of the role played by Mrs SHELDON: No, the reason there is the bureau and the importance of our ethnic very little money in the State coffers is communities as part of Queensland's social because of the Opposition's economic fabric. mismanagement. Does the member opposite Mr Fouras: Did you know that today is remember the $75m hole in the Health Greek national day? budget? I do not know how he can sit there Mr BORBIDGE: That is very relevant. I and smile. thank the honourable member for reminding The particular point at issue for the States me. I table a copy of the committee's report and the Territories and the substantive cause and encourage all interested members of the leading to the adjournment of the conference community to read it and to consider its was confusion on the part of the recommendations. The document will remain Commonwealth as to the level of specific open for public comment for eight weeks. purpose payment reductions it was going to Persons wishing to obtain copies of the report impose in 1997-98. The Commonwealth had or make a written submission should contact indicated in its offer document to the States the Department of Premier and Cabinet. and Territories that specific purpose funding to the States would be reduced from $10,937.8 billion to $10,692.1 billion, a reduction of MINISTERIAL STATEMENT $245.7m. Commonwealth Cuts to Queensland For Queensland, the offer document Hon. J. M. SHELDON (Caloundra— showed a reduction of $110.8m in specific Deputy Premier, Treasurer and Minister for purpose funding to the State. That is The Arts) (9.36 a.m.), by leave: It seems that excluding payments to local government and following the collapse of last week's financial to universities, with funding being reduced Premiers Conference the days of consultation from $2,067.1m in 1996-97 to $1,956.3m in over Commonwealth/State finances may well 1997-98. Around $50m of this reduction was be over. For 10 years, most of which was due to a reduction in our debt redemption under a Labor Prime Minister Paul Keating, assistance payment on account of the early the funds to the States have been consistently retirement of our financial agreement debt to cut. That is 10 years, for most of which a the Commonwealth last year. This means that Labor Government was in power in Canberra. the residual shortfall in Queensland's specific Opposition members: Your Liberal purpose funding indicated in the offer mates. document was around $61m. However, not all Mrs SHELDON: I am talking about the specific funding cuts proposed by the Opposition's mates. The Commonwealth has Commonwealth for 1997-98 were revealed in adopted the stance that what it says goes and the offer document. that there will be no consultation. This is not After lunch at the conference, the what we expected of the Federal Government, Commonwealth disclosed that it proposed particularly when it spoke so often of further cuts of around 1.3%, or about $139m, 25 Mar 1997 Ministerial Statement 759 to specific funding to the States and Territories Mrs SHELDON: If the Leader of the of which Queensland's share is approximately Opposition does not find it amusing, why $25m. This exposed a blatant ambush on the indeed is he laughing and guffawing the way part of the Commonwealth the likes of which he usually does in this House? we have never previously seen. This fiscal sleight of hand sets new and thoroughly As I said, that is a cut by the undesirable standards for the conduct of Commonwealth of $336m to Queensland's negotiations on Commonwealth/State Budget for 1997-98. Moreover, the reductions finances. It should be borne in mind that the in State funding from the Commonwealth over foreshadowed $86m reduction to the last two years are simply the culmination of Queensland's funding comprising the an extended period over which the disclosed cuts of $61m and the undisclosed Commonwealth consistently has cut back cuts of $25m comes on top of the $250m in funding to the States while continuing to ongoing funding cuts as a result of last year's increase outlays for its own purposes and blow Premiers Conference. These ongoing cuts out its own net debt. comprise the following elements— Nevertheless, despite these cuts, States a fiscal contribution amounting to $119m and Territories have collectively managed to in 1997-98; reform their finances and reduce their net debt. Over the period 1991-92 to 1996-97, ongoing specific purpose funding cuts of Commonwealth own-purpose outlays around $60m; increased by over 17% in real terms compared the abolition of the Building Better Cities with a real increase of only 7% in States' own- program of $40m; purpose outlays. Running costs or administrative costs of Commonwealth an impact of the Commonwealth's agencies alone have increased by an decision to remove the wholesale sales astounding 27% in real terms over that period. tax exemption from a portion of the State In other words, the Commonwealth has failed Government vehicle fleet of $10m; to exercise the same fiscal discipline and a reduction in the base for the financial responsibility as it has expected, and which assistance grants as a result of a lower has been delivered, by the States.