WESTERN AUSTRALIA Parliamentary Debates (HANSARD) THIRTY-FOURTH PARLIAMENT FOURTH SESSION 1996 LEGISLATIVE COUNCIL Thursday, 31 October 1996 7585 Legislative Council Thursday, 31 October 1996 THE PRESIDENT (Hon Clive Griffiths) took the Chair at 2.30 pm, and read prayers. STATEMENT - LEADER OF THE HOUSE Commission on Government Reports, Government Response HON N.F. MOORE (Mining and Pastoral - Leader of the House) [2.32 pm] - by leave: The Government established the Commission on Government in response to a recommendation of the Royal Commission into Commercial Activities of Government and Other Matters. The Commission on Government has conducted the broadest public inquiry into government and the public sector that this State has ever seen, with extensive public consultation through discussion papers, seminars and hearings. COG made 263 recommendations, with over 100 having multiple parts. The Government has already taken steps in a number of areas where COG has made recommendations and is preparing legislation in others. I will inform the House of the Government's position on some of the more significant recommendations. I will also table the Government's response to reports Nos 1 to 5 of the Commission on Government. COG's fifth and final report presented the commission's recommendations for the prevention of corrupt, illegal or improper conduct through increasing access to information about government and fundamental changes to Western Australia's Constitution. There has been some debate about whether the events of the WA Inc era can be blamed on the people or the system. It remains this Government's view that no system can withstand those who are determined to abuse it. This view was recently supported by Professor Brian Galligan of the University of Melbourne, who is reported to have warned that the constitutional reforms recommended by COG are no guarantee against political corruption. However, the Government's view is and always has been that all Governments require checks and balances. The Government has already undertaken significant structural reforms to improve the conduct and accountability of the public sector: For example, the establishment of COG; the implementation of the Freedom of Information Act; the Public Sector Management Act; a code of conduct for media secretaries; and strengthening the Anti-Corruption Commission. The Government endorses in principle most of COG's recommendations in report No 5, although a number of practical and legal issues require detailed consideration. The Government agrees that the state Constitution should be contained in one document. Further, any changes to the Constitution should be considered by a people's convention which, ideally, should be convened after any changes to the commonwealth Constitution stemming from the proposed commonwealth people's convention. A number of COG's proposals relate to the Parliament. The Government considers that it is not appropriate for the Executive to decide these matters and therefore proposes that each House establish procedures to consider the recommendations and implement reform as soon as the new Parliament commences in 1997. A number of the recommendations made by the Commission on Government concern the system for the election of members to the Legislative Assembly and Legislative Council as well as matters pertaining to political donations, disclosure of electoral expenditure and other matters relating to political finance and the disclosure of interests by members of Parliament. In report No 1, COG makes 21 recommendations in relation to the Legislative Assembly and the Legislative Council. Some of the recommendations are straightforward; others are less so. Generally, the Government supports the approach taken by the majority of the parliamentary committee. In particular, the Government agrees with the parliamentary committee that there is no need to increase the number of members in either House. COG calls for provisions for the disclosure of political donations and electoral expenditure. Since these recommendations were made, Parliament has passed the Electoral Legislation Amendment Act, which addresses these issues by amending the Electoral Amendment (Political Finance) Act and the Electoral Act. Altogether, the amendments to the Electoral Amendment (Political Finance) Act put into effect the great majority of the 25 separate recommendations dealing with political finance. The Government has at the same time standardised disclosure requirements with the corresponding provisions of the commonwealth Electoral Act. COG calls for the disclosure of pecuniary and other interests by members of Parliament, Ministers, elected members and senior officials of local government, senior public officials, and members and senior officials of statutory authorities and government business enterprises. In general terms, the recommendations support the status quo provided by the Members of Parliament (Financial Interests) Act and the Local Government Act. The Government 7586 [COUNCIL] endorses the principle of disclosure of pecuniary and other interests. In particular, the Government supports the retention of the Register of Members' Financial Interests, established by the Members of Parliament (Financial Interests) Act. The Government also agrees with COG that members should disclose any conflict of interest that arises during debate in the House. The Government supports amendments to the Members of Parliament (Financial Interests) Act to bring the disclosure provisions into line with commonwealth practice, which includes savings and investment accounts, bonds, and debentures and assets over $5 000. This removes an improper distinction between shares and other forms of investment. In the area of family interests, the Government agrees that disclosure should take place insofar as they are part of the financial arrangements of the member. The issue of a standing committee of privilege monitoring and enforcing the provisions of the Members of Parliament (Financial Interests) Act is a matter for the House to determine. In summary, the Government has already introduced significant reforms in the area of political finance and further electoral reforms will be introduced in the new Parliament. In conclusion, COG proposes reforms to take us to the year 2001 and beyond. As COG chairman, Jack Gregor, said in The West Australian on 8 August 1996 at page 14 - Many of the things we suggest are very complicated and do require further discussion. Ultimately we don't expect things to change overnight. What we have done is crystallise the debate which should make further consideration of these issues easier and quicker. This Government has started the reform process and expects to continue that in 1997 on, it is hoped, a bipartisan basis. I seek leave to table the Government's response to reports Nos 1 to 5 of the Commission on Government. Leave granted. [See paper No 807.] Consideration of the statement made an order of the day for the next sitting. MOTION - URGENCY Exmouth Marina Construction Contract; Transfer to Thiess Construction THE PRESIDENT (Hon Clive Griffiths): I have received the following letter - Dear Mr President At today's sitting, it is my intention to move under SO 72 that the House at its rising adjourn until 9.00 am on December 25, 1996 for the purpose of discussing the circumstances leading up to the granting of the "Exmouth Marina Construction Contract to Thiess Construction on October 2, 1996". Yours sincerely Hon Tom Stephens MLC Member for Mining and Pastoral Region In order to discuss this matter, it will be necessary for at least four members to indicate their support by rising in their places. [At least four members rose in their places.] HON TOM STEPHENS (Mining and Pastoral) [2.40 pm]: I move - That the House at its rising adjourn until 25 December. On a number of occasions I have asked the Minister for Transport questions about the Exmouth marina construction contract and the transfer of that contract to Thiess Construction. Last week when I asked the Minister a question he indicated he would answer. I reminded him yesterday that I had not received that answer, and he said that he would attend to it. Today the question still has not been answered. I have been very concerned about the Minister's administration of his portfolio and the impact of that administration on this project at Exmouth. In this House we have become very accustomed to evidence of the Minister for Transport's incompetence and his mismanagement of his portfolio areas. However, this matter is more serious. Where is the Minister for Transport? Hon Max Evans: He hopes to be back; in the meantime I will take notes. Hon TOM STEPHENS: I regret that is the case. [Thursday, 31 October 1996] 7587 Hon Max Evans: He is at an important function, but he hopes to be able to return in time. Hon TOM STEPHENS: That is awkward, but that is the circumstance in which we are placed. It compounds the problem: We put questions to the Minister and he refuses to answer, and now he is not here to deal with this urgency motion. Hon A.J.G. MacTiernan: This is open and accountable Government. Hon TOM STEPHENS: He assures us of answers that never arrive, and that he will attend to matters, but he never does. Hon P.H. Lockyer: He is out of the House on parliamentary business. Hon TOM STEPHENS: I will bear that in mind. Nonetheless, I would appreciate hearing from the Minister if there is any way to explain or justify this litany of catastrophes with his administration of the contract associated with the project at Exmouth. Hon A.J.G. MacTiernan: And his persistent failure to answer questions! Hon TOM STEPHENS: We all agree that this project is important for the community at Exmouth. When the Government announced its intention to proceed with the project, it received the support of the Opposition, with the qualification that it was a pity that the Exmouth development trust fund moneys were being utilised on the project. Those funds had been set aside under an agreement that we put in place for projects that were not properly the responsibility of government departments or agencies.